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Marriott International has reduced its full-year RevPar outlook from an increase of 2%-4% to 1.5%-3.5% as it braces for slower travel demand throughout the remainder of the year.
The news comes as part of its first quarter trading update in which it saw RevPar rise 4.1% on base management and franchise fees totalling $1.07bn (£801m). This also marks a 7% increase YOY, up from fees of $1.0bn (£748m).
It also confirmed incentive management fees of $204m (£152.7m) in the 2025 first quarter, compared with $209m (£156.4m) in the 2024 first quarter. Managed hotels in international markets contributed nearly two-thirds of the incentive fees earned in the quarter.
In addition, it revealed General, administrative, and other expenses for the 2025 first quarter was $245m (£183m), down from $261m (£195.4m) in the year-ago quarter. The year-over-year decline largely reflects lower compensation costs primarily resulting from its “enterprise-wide initiative to enhance effectiveness and efficiency across the company”.
Marriott’s reported operating income also totalled $948m (£709.8m) in the 2025 first quarter, compared with 2024 first quarter reported operating income of $876m (£655.9m).
As such , it has confirmed reported diluted earnings per share (EPS) of $2.39 (£1.79) in the quarter, compared with reported diluted EPS of $1.93 (£1.45) the year prior.
Commenting on the results, Anthony Capuano, president and CEO, said: “The combination of continued travel demand, the strength of our brands and our fee driven business model drove strong financial results in the first quarter. Despite heightened macro-economic uncertainty, global RevPAR rose over 4%, primarily driven by higher ADR, and our development momentum remained positive.
“Our international markets experienced particularly robust growth, with RevPAR increasing nearly 6%, led by double-digit gains in APEC. RevPAR in the U.S. and Canada rose over 3% in the first quarter, although we did see slower growth in March.The strong momentum in our development activity continued, with record first quarter signings of over 34,000 rooms, of which two-thirds were in international markets. Conversions remained a key driver of growth, representing around a third of our room signings and openings.”
He added: “…We remain focused on expanding our industry-leading Marriott Bonvoy travel platform and loyalty program membership and on deepening engagement through numerous unique experiences and collaborations. By the end of March, our loyalty program membership base had grown to nearly 237 million members worldwide.
“Despite uncertainty about the macro-economic outlook, we are confident that the power of our industry-leading global portfolio, the strength of our Marriott Bonvoy travel platform and loyalty program, our dedicated associates, and resilient asset-light business model, position us very well for sustainable, long-term growth.”
