Marriott Vacations Beats Q2 Estimates, Raises 2025 Outlook Amid Industry Challenges

Marriott International has lowered its full-year 2025 revenue growth forecast to 1.5% to 2.5%, reflecting softer U.S. travel demand amid economic uncertainties despite completing the acquisition of citizenM. Meanwhile, Marriott Vacations Worldwide reported strong second-quarter earnings, with revenue up 9.6% and adjusted earnings per share surpassing expectations, driven by a 29% surge in adjusted EBITDA. The timeshare company has raised its 2025 guidance, projecting contract sales between $1.74 billion and $1.83 billion and adjusted EBITDA up to $780 million, supported by a growing base of new buyers despite a slight dip in overall contract sales and spending per guest. However, Marriott Vacations' Interval International division faces challenges with declines in revenue and adjusted earnings, reflecting shifts in consumer preferences toward more flexible travel options. Investor confidence in Marriott Vacations remains robust, with most analysts rating the stock a buy and price targets averaging about 20% above current levels, signaling optimism about the company’s adaptability and growth prospects. Overall, while Marriott International faces headwinds in travel demand, Marriott Vacations is capitalizing on evolving vacation ownership trends to sustain growth.