Marriott Stock Spikes After Hospitality Giant Tops Forecasts, Returns $1.2B To Shareholders

Marriott International Inc (NASDAQ:MAR) shares are trading higher on Tuesday after the first-quarter FY25 earnings.

The company reported first-quarter 2025 sales growth of 4.7% year-on-year to $6.26 billion. It beat the analyst consensus estimate of $6.17 billion.

Comparable systemwide constant dollar RevPAR increased (compared to the first quarter of FY24):

• 4.1% worldwide
• 3.3% in the U.S. and Canada, and
• 5.9% in international markets.

The company added roughly 12,200 net rooms during the quarter, a 4.6% increase from the end of Q1 2024.

Total expenses increased 4.2% Y/Y to $5.3 billion. Adjusted EBITDA for the quarter was $1.22 billion versus $1.14 billion a year ago.

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Operating margin for the quarter expanded 50 basis points to 15.1%, with operating income increasing 8% to $948 million.

Adjusted EPS of $2.32 beat the consensus estimate of $2.25.

At the end of the quarter, Marriott’s global system totaled nearly 9,500 properties, with approximately 1,719,000 rooms. Marriott held $500 million in cash and equivalents as of March 31.

In the first quarter of 2025, Marriott repurchased 2.8 million shares of common stock for $800 million. Year to date, through April 29, the company has returned over $1.2 billion to shareholders through dividends and share repurchases.

“The combination of continued travel demand, the strength of our brands and our fee driven business model drove strong financial results in the first quarter,” said President and CEO Anthony Capuano.

Outlook: Marriott reaffirmed 2025 adjusted EPS outlook of $9.82 – $10.19 versus the $10.11 estimate and Gross fee revenue of $5.365 billion – $5.475 billion..

The company expects second-quarter adjusted EPS of $2.57-$2.62 against an estimate of $2.68 and gross fee revenue of $1.38 billion – $1.39 billion.

Price Action: Marriott shares traded higher by 2.1% at $252.47 at last check Tuesday.

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