Marriott Lowers Full-Year Outlook Amid Shift in Travel Demand

Marriott has trimmed its full-year outlook as demand for travel into the US remains weak, despite increasing appetite for outbound travel. However, the company's global portfolio is driving earnings. TD Cowen Research Analyst Kevin Kopelman notes that while US demand is sluggish, global demand is fueling Marriott's performance.

Marriott International, the world's largest hotel company, has revised its full-year financial projections downward, citing weak travel demand in the US and heightened macro-economic uncertainty. The company reported a flat second quarter in total room revenue in the US and Canada, with a 1% increase compared to a year ago [1]. This slowdown is particularly evident in its lower-cost hotel brands, such as Marriott Courtyard, Fairfield Inn, and SpringHill Suites, which were significantly impacted by a 17% decline in bookings from government workers [1].

Marriott has now forecasted 2025 revenue growth of 1.5% to 2.5%, down from its previous guidance of 1.5% to 3.5% [1]. The company also lowered its profit guidance to $9.82 to $10.08 per share, from $9.85 to $10.08 [1]. The CEO, Anthony Capuano, attributed the slowdown to "heightened macro-economic uncertainty" due to trade policy changes [1].

In contrast, Marriott's luxury hotel brands, including the Ritz-Carlton, St. Regis, and JW Marriott, saw a 4.1% increase in room revenue in the US and Canada in the second quarter [1]. The average room rate for luxury properties was $417 compared to $161 for budget properties [1].

Despite the slowdown in US travel, Marriott's global portfolio is driving earnings. The company's international business saw a 5.3% growth in RevPAR (revenue per available room) in the second quarter, with strong growth in APEC and EMEA regions [2]. The company's development pipeline reached a new record during the second quarter, with 3,900 properties in development worldwide [3].

Marriott's CEO, Anthony Capuano, highlighted the company's resilience in the face of economic uncertainty. He noted that the company's strategy of being "everywhere our guests want us to be" is paying off, with strong performance in international markets and the addition of new brands like Series by Marriott and the acquisition of citizenM [3].

While US demand remains sluggish, global demand is fueling Marriott's performance. TD Cowen Research Analyst Kevin Kopelman noted that while US demand is weak, global demand is driving the company's financial results [4]. Marriott's ability to adapt and grow in international markets may provide a buffer against the slowdown in US travel.

References:

[1] https://nypost.com/2025/08/05/business/marriott-trims-full-year-forecast-for-revenue-profit-as-travel-demand-to-us-falters/
[2] https://www.travelpulse.com/news/hotels-and-resorts/marriott-lowers-financial-outlook-as-travel-in-us-canada-cools
[3] https://marriott.gcs-web.com/news-releases/news-release-details/marriott-international-reports-second-quarter-2025-results