Marriott International (NasdaqGS:MAR) Q3 2025 Earnings Call November 04, 2025 08:30 AM ET Company ParticipantsLeeny Oberg - CFO and EVP of DevelopmentJackie McConagha - SVP of Investor RelationsSmedes Rose - DirectorStephen Grambling - Mnaging DirectorRichard Clarke - Managing DirectorMichael Bellisario - Managing DirectorAri Klein - Director of Equity ResearchDuane Pfennigwerth - Senior Managing Director of Equity ResearchPatrick Scholes - Managing Director of Lodging and Leisure Equity ResearchTony Capuan ...

Marriott International (NasdaqGS:MAR) Q3 2025 Earnings Call November 04, 2025 08:30 AM ET Company ParticipantsLeeny Oberg - CFO and EVP of DevelopmentJackie McConagha - SVP of Investor RelationsSmedes Rose - DirectorStephen Grambling - Mnaging DirectorRichard Clarke - Managing DirectorMichael Bellisario - Managing DirectorAri Klein - Director of Equity ResearchDuane Pfennigwerth - Senior Managing Director of Equity ResearchPatrick Scholes - Managing Director of Lodging and Leisure Equity ResearchTony Capuan ...

Marriott International (NasdaqGS:MAR) Q3 2025 Earnings Call November 04, 2025 08:30 AM ET Speaker4Good day, everyone, and welcome to the Marriott International Q3 2025 earnings. At this time, all participants are in a listen-only mode. Later, there will be a question-and-answer session. You may queue for a question at any time by pressing the star key followed by the number one on your telephone keypad. You may remove yourself from the queue by pressing star two. Please be advised that today's call is being ...

Financial Data and Key Metrics Changes - Third quarter adjusted EBITDA rose 10% to $1,350 million, exceeding expectations [17] - Adjusted EPS grew 9% year over year [17] - Global RevPAR increased by 0.5%, driven by nearly 1% ADR growth, offsetting a 30 basis point decline in occupancy [17] - Total gross fee revenues increased 4% year over year to $1,340 million, primarily due to rooms growth and strong co-branded credit card fee growth [17][18] Business Line Data and Key Metrics Changes - RevPAR growth was strongest in the luxury segment, which rose 4%, while select service brands in the U.S. and Canada saw declines [8][9] - Incentive management fees (IMFs) totaled $148 million, down 7% year over year, primarily due to declines in the U.S. and Canada [18] - Owned, leased, and other revenue, net of expenses, rose 16% compared to the prior year, driven by contributions from the Sheraton Grand Chicago and improved performance at other hotels [18] Market Data and Key Metrics Changes - International RevPAR grew 2.6%, outperforming the U.S. and Canada, where RevPAR was down 0.4% [5] - RevPAR in the Asia-Pacific (APAC) region increased nearly 5%, driven by robust ADR growth and higher demand from international travelers [6] - The operating environment in Greater China remains challenged, with RevPAR flat year over year, impacted by multiple typhoons [7] Company Strategy and Development Direction - The company aims to drive growth by expanding its global portfolio, which grew by 4.7% year over year to over 1.75 million rooms [4] - The launch of new brands, such as Outdoor Collection by Marriott Bonvoy and Series by Marriott, reflects the company's strategy to diversify offerings [12][13] - The company continues to focus on technology transformation to enhance customer experience and operational efficiency [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future RevPAR growth, expecting an increase of 1% to 2% in Q4 and 1.5% to 2.5% for the full year 2025 [20][22] - The impact of the upcoming World Cup is anticipated to contribute around 30 to 35 basis points to full year global RevPAR growth [21] - Management acknowledged ongoing macroeconomic uncertainties but highlighted strong demand in the luxury segment and resilience among high-end consumers [8][9] Other Important Information - Membership in the Marriott Bonvoy loyalty program grew to nearly 260 million, up 18% year over year [13] - The company expects full year capital returns to shareholders to be roughly $4 billion while maintaining leverage in the lower part of the net debt to EBITDA range [26] Q&A Session Summary Question: Credit card program and renewal conversation - Management discussed ongoing negotiations with credit card partners, emphasizing the growth of the Bonvoy program and its attractiveness to financial services partners [32][33] Question: Health of franchisee and RevPAR trends - Management noted record signings globally, indicating strong franchisee interest despite RevPAR slowing [41][42] Question: Investment spending trends - Management clarified that increased investment spending is related to non-development expenditures and tech transformation investments [45][47] Question: Business transient trends - Management reported flat global business transient RevPAR, with government transient down 15% year over year, but larger corporate clients showed strength [76][78] Question: Development environment in APAC and China - Management highlighted strong rooms growth and signings in APAC, particularly in India and Indonesia, while noting challenges in Greater China [70][73] Question: Changes in underlying seasonality - Management observed an extension of peak seasonality in Europe, with no significant shifts in U.S. customer demand [90][94]