Marriott Lowers 2025 Revenue Growth Forecast Amid Economic Uncertainty

Marriott International has lowered its full-year revenue growth forecast to 1.5% to 2.5%, down from a prior range of 1.5% to 3.5%, due to economic uncertainties impacting U.S. travel demand, including reduced government and corporate travel amid ongoing trade policy adjustments under President Donald Trump. Despite this, the company reported stronger-than-expected second-quarter earnings of $2.65 per share, surpassing analyst estimates, with revenue rising 5% to $6.74 billion. Global revenue per available room (RevPAR) increased 1.5%, driven by leisure travel, while U.S. and Canada RevPAR remained flat overall, offsetting luxury segment strength with declines in select services. Marriott continues to expand its global brand portfolio, launching the Series by Marriott™ brand and acquiring lifestyle brand citizenM, with a robust development pipeline of over 590,000 rooms and expected net room growth of about 5% for the year. The company also repurchased $0.7 billion in stock during the second quarter, reflecting confidence despite macroeconomic challenges. Marriott's strong financial health is indicated by its operating margin of 15.4%, but it faces some liquidity concerns with a current ratio of 0.45 and high leverage.