Marriott Q1 Earnings Surpass Estimates, Revenues Lag, RevPAR Rises Y/Y

Core Insights - Marriott International, Inc. reported first-quarter 2025 results with adjusted earnings exceeding estimates while revenues fell short, indicating a mixed performance despite year-over-year growth [1][3]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were $2.32, surpassing the Zacks Consensus Estimate of$2.27, and up from $2.13 in the prior-year quarter [3]. - Quarterly revenues reached$6,263 million, slightly below the consensus mark of $6,275 million, but represented a 5$325 million and $746 million, respectively, reflecting year-over-year increases of 4$204 million compared to $209 million in the prior-year quarter [4]. Operational Metrics - RevPAR for worldwide comparable system-wide properties increased by 5.2$5.31 billion, attributed to a decline in reimbursed expenses [6]. Development and Growth - The company achieved a record of over 34,000 room signings in Q1 2025, with nearly two-thirds in international markets, and conversions accounted for about one-third of new signings and openings [2]. - As of the end of Q1, Marriott's development pipeline included 3,808 hotels, with 1,447 properties and over 244,000 rooms under construction [9]. Future Outlook - For Q2 2025, management anticipates gross fee revenues between $1.38 billion and$1.39 billion, with adjusted EBITDA expected to range from $1.37 billion to$1.39 billion [10]. - The company projects worldwide system-wide RevPAR growth of 1.5-3.5% year-over-year for 2025, a revision from the previous estimate of 2-4% [10]. - For the full year 2025, gross fee revenues are expected to be between $5.37 billion and$5.48 billion, with adjusted EBITDA projected between $5.3 billion and$5.4 billion [11].