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Marriott Narrows Earnings Outlook Amid Economic Uncertainty
5 Aug
Summary
- Marriott's Q2 earnings topped estimates despite economic challenges
- Luxury travel demand remained strong, offsetting weaker business travel
- Marriott narrowed its full-year earnings guidance due to ongoing headwinds
On August 5th, 2025, Marriott International reported its second-quarter financial results, which topped expectations despite ongoing economic challenges. The hotel operator narrowed its full-year earnings outlook, citing continued headwinds from federal government spending cuts and weaker business travel.
Marriott's revenue per available room (RevPAR), a key industry metric, was flat in the U.S. and Canada compared to the same period last year. However, globally, RevPAR increased by 1.5% during the quarter, driven by resilient leisure travel demand, particularly in the Asia-Pacific and Europe, Middle East, and Africa regions.
The company's CEO, Anthony Capuano, stated that Marriott's quarterly results were "strong" despite "heightened macro-economic uncertainty." Adjusted earnings per share for the period came in at $2.65, up from $2.50 a year earlier and above analysts' estimates of $2.61. Revenue grew by 4.7% to $6.74 billion, also exceeding expectations.
For the full year, Marriott now expects adjusted earnings before interest, taxes, depreciation, and amortization to be between $5.31 billion and $5.40 billion, slightly narrowing its previous guidance range. The company's performance reflects the ongoing challenges facing the hospitality industry, as well as the resilience of the luxury travel segment.
