Marriott 2025 Q1 Earnings Strong Performance as Net Income Grows 18%
Daily EarningsWednesday, May 7, 2025 3:52 am ET

Marriott (MAR), ranking 196th by market capitalization reported its fiscal 2025 Q1 earnings on May 06th, 2025. Marriott's Q1 2025 earnings surpassed market expectations, driven by a notable 17.9% increase in net income. The company adjusted its guidance, reducing full-year RevPAR growth by 50 basis points due to a cautious outlook in the US and Canada. Despite challenges, remains optimistic about its international markets, particularly in the APEC region, and continues to invest in digital technologies to enhance operational efficiency and customer experience.
Revenue
Marriott's total revenue rose by 4.8% to $6.26 billion in Q1 2025, compared to $5.98 billion in the same quarter of 2024. Base management fees contributed $325 million, while franchise fees accounted for $746 million. Incentive management fees added $204 million to the total, whereas contract investment amortization decreased revenue by $28 million. Owned, leased, and other revenue amounted to $361 million, and cost reimbursement revenue significantly contributed with $4.66 billion, culminating in an overall revenue of $6.26 billion.
Earnings/Net Income
Marriott's EPS increased by 23.7% to $2.40 in Q1 2025, compared to $1.94 in Q1 2024. The company's net income grew to $665 million, marking a 17.9% rise from $564 million in the previous year's first quarter. The EPS figures indicate robust earnings performance and continued growth.
Post Earnings Price Action Review
Over the past five years, investing in Marriott shares after a quarter-over-quarter revenue drop and holding for 30 days has resulted in poor returns. This strategy has underperformed significantly, yielding a return of -2.51% compared to a benchmark return of 83.12%. The strategy's excess return stood at -85.63%, with a compound annual growth rate (CAGR) of -0.51%. The Sharpe ratio was -0.04, reflecting unsatisfactory risk-adjusted returns. Additionally, the maximum drawdown reached -21.44%, and volatility was 13.57%. These statistics reveal that the strategy was unable to leverage broader market trends and subjected investors to high volatility and risk.
CEO Commentary
Anthony Capuano, CEO, highlighted the strong first quarter performance driven by a 4.1% increase in global RevPAR, surpassing the upper limit of guidance. The record signings of new rooms reflect robust owner confidence, despite challenges such as a 10% decline in the US government segment and a 2% decline in RevPAR in Greater China. Capuano noted that while January and February were strong, March experienced some softness attributed to Easter effects and government layoffs. However, April showed signs of recovery, indicating stable demand. He expressed optimism regarding digital transformation efforts, which are expected to improve operational efficiencies and customer experiences.
Guidance
Marriott International anticipates adjusted full-year RevPAR growth to be reduced by 50 basis points, reflecting a more cautious outlook in the US and Canada. The company reported first quarter EPS of $2.40 and revenue of $6.263 billion, with a net income of $665 million. Additionally, Capuano emphasized a commitment to ongoing investments in digital technologies and maintaining robust growth in international markets, particularly in the APEC region.
Additional News
Marriott International has announced an agreement to acquire the lifestyle brand citizenM, enhancing its offerings in the select-service and innovative lifestyle segment. The acquisition aligns with Marriott's strategy to diversify its portfolio and accelerate growth in select-service and lifestyle accommodations worldwide. Additionally, Marriott Bonvoy has entered into a multi-year partnership with award-winning Mexican chef Pati Jinich, aiming to enrich culinary experiences for its members. Furthermore, Marriott International has surpassed its 15 million hour volunteerism goal one year early, showcasing its commitment to social responsibility and community engagement.
Revenue
Marriott's total revenue rose by 4.8% to $6.26 billion in Q1 2025, compared to $5.98 billion in the same quarter of 2024. Base management fees contributed $325 million, while franchise fees accounted for $746 million. Incentive management fees added $204 million to the total, whereas contract investment amortization decreased revenue by $28 million. Owned, leased, and other revenue amounted to $361 million, and cost reimbursement revenue significantly contributed with $4.66 billion, culminating in an overall revenue of $6.26 billion.
Earnings/Net Income
Marriott's EPS increased by 23.7% to $2.40 in Q1 2025, compared to $1.94 in Q1 2024. The company's net income grew to $665 million, marking a 17.9% rise from $564 million in the previous year's first quarter. The EPS figures indicate robust earnings performance and continued growth.
Post Earnings Price Action Review
Over the past five years, investing in Marriott shares after a quarter-over-quarter revenue drop and holding for 30 days has resulted in poor returns. This strategy has underperformed significantly, yielding a return of -2.51% compared to a benchmark return of 83.12%. The strategy's excess return stood at -85.63%, with a compound annual growth rate (CAGR) of -0.51%. The Sharpe ratio was -0.04, reflecting unsatisfactory risk-adjusted returns. Additionally, the maximum drawdown reached -21.44%, and volatility was 13.57%. These statistics reveal that the strategy was unable to leverage broader market trends and subjected investors to high volatility and risk.
CEO Commentary
Anthony Capuano, CEO, highlighted the strong first quarter performance driven by a 4.1% increase in global RevPAR, surpassing the upper limit of guidance. The record signings of new rooms reflect robust owner confidence, despite challenges such as a 10% decline in the US government segment and a 2% decline in RevPAR in Greater China. Capuano noted that while January and February were strong, March experienced some softness attributed to Easter effects and government layoffs. However, April showed signs of recovery, indicating stable demand. He expressed optimism regarding digital transformation efforts, which are expected to improve operational efficiencies and customer experiences.
Guidance
Marriott International anticipates adjusted full-year RevPAR growth to be reduced by 50 basis points, reflecting a more cautious outlook in the US and Canada. The company reported first quarter EPS of $2.40 and revenue of $6.263 billion, with a net income of $665 million. Additionally, Capuano emphasized a commitment to ongoing investments in digital technologies and maintaining robust growth in international markets, particularly in the APEC region.
Additional News
Marriott International has announced an agreement to acquire the lifestyle brand citizenM, enhancing its offerings in the select-service and innovative lifestyle segment. The acquisition aligns with Marriott's strategy to diversify its portfolio and accelerate growth in select-service and lifestyle accommodations worldwide. Additionally, Marriott Bonvoy has entered into a multi-year partnership with award-winning Mexican chef Pati Jinich, aiming to enrich culinary experiences for its members. Furthermore, Marriott International has surpassed its 15 million hour volunteerism goal one year early, showcasing its commitment to social responsibility and community engagement.

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