Marriott International (NASDAQ:MAR) shares rose Tuesday after a third-quarter beat, stronger fee income, and robust room additions.
The company reported third-quarter adjusted earnings per share of $2.47, beating the analyst consensus estimate of $2.39.
Quarterly sales reached $6.489 billion, slightly ahead of the $6.46 billion Street consensus.
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Base management and franchise fees totaled $1.190 billion in the quarter.
That figure was nearly 6% higher than the $1.124 billion recorded a year earlier.
Key Metrics
The company said room growth and higher co-branded credit card fees primarily drove the increase.
Marriott International reported that third-quarter 2025 revenue per available room increased 0.5% worldwide.
“Globally, our luxury hotels continued to outperform, driven by robust demand and strong rate performance, with luxury RevPAR rising 4% in the quarter,” said CEO Anthony Capuano.
International markets rose 2.6%, while the U.S. and Canada declined 0.4%.
Adjusted operating income in the third quarter totaled $1.119 billion, compared to the 2024 third quarter adjusted operating income of $1.017 billion.
In the quarter under review, adjusted EBITDA totaled $1.349 billion in the 2025 third quarter, a 10% increase year over year from the 2024 adjusted EBITDA of $1.229 billion.
The company added roughly 17,900 net rooms during the quarter, including nearly 13,900 net rooms in international markets.
At the end of the quarter, Marriott’s global system totaled over 9,700 properties, with approximately 1,754,000 rooms.
The firm’s worldwide development pipeline reached a new record and totaled approximately 3,900 properties and over 596,000 rooms.
At the end of the quarter, Marriott’s total debt stood at $16.0 billion, up from $14.4 billion at year-end 2024.
Cash and equivalents totaled 700 million, compared with 400 million at the end of 2024.
Outlook
“We continue to expect to return approximately $4.0 billion to our shareholders in 2025,” the CEO added.
Marriott International narrowed its 2025 adjusted EPS outlook to a range of $9.98 to $10.06 from the prior $9.85 to $10.08.
The midpoint of the revised guidance sits just below the $10.03 analyst estimate.
The firm expects fourth-quarter adjusted EPS of $2.54 to $2.62.
The guidance comes in below the $2.65 analyst consensus.
Price Action: MAR shares were trading higher by 3.22% to $272.39 at last check Tuesday.
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