Amid the current economic uncertainty brought on by Trump’s trade war cooling the travel industry in both the U.S. and Canada, Marriott International has lowered its full-year 2025 financial projections in its second-quarter report, expecting current conditions to continue throughout the remainder of the year.
The second quarter of the year saw the hotel giant’s RevPAR, or revenue per available room, increase 1.5 percent overall, with 5.3 percent growth internationally.
Yet closer to home, the Maryland-based company saw flat growth in the U.S. and Canada.
“Marriott delivered another solid quarter, highlighted by strong financial results and robust net rooms growth despite heightened macro-economic uncertainty,” said Anthony Capuano, Marriott’s President and Chief Executive Officer. “Global RevPAR increased 1.5 percent in the second quarter primarily driven by the leisure segment.”
“International RevPAR rose over 5 percent, with strong growth in APEC and EMEA. In the U.S. & Canada, RevPAR was flat year over year with continued strength in the luxury segment offset by a decline in select service demand, largely reflecting reduced government travel and weaker business transient demand. Adjusting for the Easter holiday shift, U.S. & Canada RevPAR increased by nearly 1 percent.”
Shareholders took home a diluted earnings per share (EPS) of $2.78 this past quarter. Marriott reported a net income of $763 million and an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $1.4 billion.
Marriott’s development pipeline reached a new record during the second quarter of the year, totaling 3,900 properties in development worldwide, representing over 590,000 rooms. Marriott also finalized its acquisition of hotel brand citizenM during the second quarter.
For the rest of the year, Marriott has downgraded its growth prediction. It expects worldwide RevPAR to grow 1.5 percent to 2.5 percent, with a full-year Adjusted EBITDA ranging between $5.31 and $5.39 billion. According to Reuters, RevPAR is a full percentage point lower than Marriott’s earlier forecast.
Marriott expects to provide a full-year diluted EPS ranging between $9.85 to $10.08, just a few cents below its earlier projection.
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