Marriott’s second quarter results were driven by international market strength and steady contributions from its luxury portfolio, even as U.S. and Canada growth moderated. Management pointed to robust demand in Asia-Pacific and EMEA regions, with CEO Anthony Capuano highlighting, “RevPAR in APAC rose 9%, driven by strong ADR growth and higher demand from international guests.” While the select service segment in the U.S. and Canada saw declines, luxury properties continued to outperform, offsetting some of the regional softness. The overall market response to the quarter was neutral, reflecting results that largely aligned with expectations.
Is now the time to buy MAR? Find out in our full research report (it’s free).
Marriott (MAR) Q2 CY2025 Highlights:
- Revenue: $6.74 billion vs analyst estimates of $6.66 billion (4.7% year-on-year growth, 1.2% beat)
- Adjusted EPS: $2.65 vs analyst estimates of $2.62 (1% beat)
- Adjusted EBITDA: $1.42 billion vs analyst estimates of $1.38 billion (21% margin, 2.4% beat)
- Management reiterated its full-year Adjusted EPS guidance of $9.97 at the midpoint
- EBITDA guidance for the full year is $5.35 billion at the midpoint, in line with analyst expectations
- Operating Margin: 18.3%, in line with the same quarter last year
- RevPAR: $136 at quarter end, in line with the same quarter last year
- Market Capitalization: $71.94 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Marriott’s Q2 Earnings Call
- Stephen Grambling (Morgan Stanley) asked about the timing and impact of Marriott’s technology transformation. CEO Anthony Capuano explained deployments would begin later this year and highlighted benefits for guests and owners, while CFO Kathleen Oberg detailed that tech spending would be elevated through 2026.
- Shaun Kelley (Bank of America) inquired about the effects of recent legislation on owner investment and development activity. Capuano emphasized greater certainty benefits long-term investors, though factors like tariffs still weigh on new construction.
- Dan Politzer (JPMorgan) focused on the group business outlook, questioning the sustainability of improved 2026 pace. Capuano noted an 8% pace increase for 2026 with stable customer mix, while Oberg cited that recent softness was due to both higher attrition and fewer near-term bookings.
- Conor Cunningham (Melius Research) asked about the Marriott Media Network’s potential. Capuano described strong early advertiser interest and the opportunity to leverage loyalty data, but said it was too early to estimate financial impact.
- Brandt Montour (Barclays) pressed for details on business transient trends excluding government demand. Capuano said most large corporate clients have normalized travel, but economic volatility remains the main headwind; Oberg added that non-government business transient RevPAR declined 1%.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team is watching (1) whether international RevPAR and net rooms growth continue to outpace U.S. trends, (2) the impact of new brand launches and conversions on portfolio diversity and loyalty member engagement, and (3) evidence of technology transformation translating into improved margins or guest satisfaction. The progress of the Marriott Media Network and group business booking pace will also be important markers.
Marriott currently trades at $265.06, up from $259.39 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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