Kicking off the company’s first-quarter 2025 earnings call with investors, Marriott International President and CEO Anthony Capuano acknowledged the elephant in the room. “We operate a cyclical business, and there's no doubt that today we are in a period of heightened macroeconomic uncertainty,” he said, noting that slowing economic activity and lower consumer confidence can be causes for concern.
While revenue per available room in Marriott’s U.S. and Canada hotels rose more than 3 percent in the quarter, Capuano announced that the company would be lowering its guidance for full-year RevPAR growth by 50 basis points “due to a more cautious outlook” in the region. “We still expect strong revenue growth for the year, and the future,” he added.
CFO Leeny Oberg noted "continued reduced government nights" as a factor in lowering the guidance. Demand in the U.S. softened in March, she said, “primarily due to a 10 percent year-over-year decline in U.S. government RevPAR.” Last year, the U.S. government segment contributed around 4 percent of the region’s room nights.
Oberg emphasized that the company has “limited visibility” into the back half of the year. “The updated view that we're sharing today does not incorporate a recession,” she said. “It reflects our current booking trend and assumes that, broadly speaking, they continue.”
To that end, Oberg also emphasized that the company’s average booking window is approximately three weeks out for transient customers, who make up three quarters of the company’s room nights. “So demand could, of course, change quickly.”
Revenue and Income
Revenue per available room in the first quarter increased 4.1 percent worldwide, with 3.3 percent growth in the U.S. & Canada and 5.9 percent growth in international markets
Marriott’s reported operating income totaled $948 million in the 2025 first quarter, compared to 2024 first quarter reported operating income of $876 million. Reported net income totaled $665 million in the 2025 first quarter, an 18 percent increase compared to 2024 first quarter reported net income of $564 million.
Adjusted operating income in the 2025 first quarter totaled $1,016 million, compared to 2024 first quarter adjusted operating income of $952 million. First quarter 2025 adjusted net income totaled $645 million, compared to 2024 first quarter adjusted net income of $620 million.
Adjusted earnings before interest, taxes, depreciation and amortization totaled $1,217 million in the 2025 first quarter, a 7 percent increase compared to first quarter 2024 adjusted EBITDA of $1,142 million. See the press release schedules for the adjusted EBITDA calculation.
Unit Growth
The company added roughly 12,200 net rooms during the quarter, including more than 7,300 net rooms in international markets. At the end of the quarter, Marriott’s global system totaled nearly 9,500 properties, with approximately 1,719,000 rooms. Oberg noted that conversions increased 30 percent from Q1 2024.
“The most encouraging metric on growth that we share was we signed more rooms in Q1 than in any Q1 in our history,” Capuano said.
At the end of the quarter, the company’s worldwide development pipeline totaled 3,808 properties with more than 587,000 rooms, including 171 properties with over 27,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,447 properties with nearly 244,000 rooms under construction, including hotels that are in the process of converting to Marriott’s system. Over half of the rooms in the quarter-end pipeline are in international markets.
The company also expects additional properties to join its system upon closing of the planned acquisition of the citizenM brand. The citizenM portfolio currently includes 36 open hotels with 8,544 rooms and 3 pipeline hotels with over 600 rooms.
In the 2025 first quarter, worldwide RevPAR increased 4.1 percent (a 2.7 percent increase using actual dollars) compared to the 2024 first quarter. RevPAR in the U.S. & Canada increased 3.3 percent (a 3 percent increase using actual dollars), and RevPAR in international markets increased 5.9 percent (a 2.2 percent increase using actual dollars).
Looking Ahead
