Business

Marriott CEO Highlights Luxury Spend Offset By Economic Uncertainty, Reduced Government And Business Travel

August 5, 2025

International Marriott (Nasdak:MarchI mentioned it The second quarter of financial 2025 The profits on Tuesday.

The company’s sales in the second quarter amounted to 6.74 billion dollars, which represents an increase of 4.7 % on an annual basis and exceeded the estimate of the consensus of the analyst of 6.64 billion dollars.

Marriott’s continuous revenues for the continuous dollar for each room available (Revpar) grew by 1.5 % on an annual basis, while the RevPar’s actual dollar increased by 1.7 %.

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The performance in the United States and Canada was fixed, as Revpar decreased by 0.1 % in actual dollars, while international markets witnessed an increase of 5.3 % (6.1 % in actual dollars).

The company added approximately 17,300 net rooms during the quarter, an increase of 4.7 % over the end of the second quarter of 2024.

The total expenditures decreased by 5 % to 5.51 billion dollars, which contributed to the profits before interest, taxes, depreciation and modified consumption of $ 1.42 billion, up from $ 1.32 billion in the past year.

Although 3.4 % in operating income increased to $ 1.24 billion, the company’s operating margin decreased by 100 basis points to 18 %.

Amending the $ 2.65 EPS (EPS) profits outperformed Estimating a consensus of $ 2.62.

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At the end of the quarter, the total global Marriott system reached about 9,600 properties, about 1736,000 rooms. As of June 30, Marriott received $ 700 million in cash and its equivalent.

In a quarter, Marriott returned 2.8 million shares of regular shares for $ 700 million. Until July 30, the company returned to more than $ 2.1 billion to shareholders through stock profits and sharing re -purchase.

CEO Anthony Capuano I mentioned that Marriott has achieved the strong second quarter, spreading strong financial results and the growth of the net rooms despite the uncertainty in the continuous macroeconomic economy, while compensating the luxury power by weak demand for service due to the decrease in government travel and business.

Capuano pointed out that the development activity remained strong, as approximately 32,000 rooms, more than 70 % were signed in the international markets, and a standard pipeline of more than 590,000 rooms at the end of the quarter. Transfers constituted about 30 % of signatures and openings in the first half of the year, and Marriott is still expected to approach the growth of clear rooms for a year 5 %.

It sheds light on the launch of Series by Marriott, a new regional brand targeting medium and upscale parts, and the establishment of the foundation with the sacrifice portfolio in India. Capuano also referred to the acquisition of the Citizenm brand as a major expansion, as it was placed in a better Marriott position to serve guests, Bonvoy members and their owners worldwide.