After a first quarter in which its systemwide business transient revenue per available room increased 2 percent year over year, Marriott International on Tuesday maintained its full-year 2025 forecast for the segment even as it reduced its overall projection due to “an uncertain macroeconomic environment.”
Marriott CFO Leeny Oberg forecast full-year business transient RevPAR could be “up low single digits” from 2024 levels, matching the projection she issued one quarter earlier.
Marriott lowered its systemwide 2025 RevPAR projection to an increase of 1.5 percent to 3.5 percent year over year, compared with its prior forecast of an increase of 2 percent to 4 percent. Oberg noted the projection does not assume a recession and “reflects our current booking trends and assumes that broadly speaking, they continue.”
Marriott CEO Anthony Capuano characterized the results as “solid” and noted that the “heightened macroeconomic uncertainty, especially here in the U.S.,” affected primarily domestic leisure demand.
Overall RevPAR softened in March, after strong demand in January and February, largely due to a 10 percent decline year over year in U.S. government travel RevPAR, Oberg said, adding that forecast continued softness in that segment drove Marriott’s decision to lower its overall full-year RevPAR projection.
As for international inbound U.S. demand, Capuano said that segment accounted for about 6 percent of first-quarter U.S. room nights, higher than the full-year 2024 figure with each month of Q1 higher than its counterpart in 2024. Inbound U.S. demand from Canada, however, was down 5 percent, he said.
Marriott Q1 Metrics
Marriott’s systemwide first-quarter RevPAR increased 4.1 percent year over year to $119.38, while average daily rate increased 2.9 percent to $181.73 and occupancy increased 0.7 percentage points to 65.7 percent. The RevPAR increase slightly exceeded Marriott’s projection of one quarter prior.
In the United States and Canada, first-quarter RevPAR increased 5.1 percent year over year to $181.75, while ADR increased 3.2 percent to $270.49 and occupancy rose 1.2 percentage points to 67.2 percent.
Marriott projected systemwide second-quarter RevPAR to increase 1.5 percent to 2.5 percent year over year.
Total first-quarter revenue increased nearly 5 percent to nearly $6.3 billion. Net income was $665 million, compared with $564 million one year prior.
At the end of Q1, Marriott had about 9,500 properties in its system globally. It added 12,200 net rooms during the quarter. Marriott’s pipeline at the end of the first quarter totaled about 3,800 properties with more than 587,000 rooms.
Marriott’s Q4 performance
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