Marriott Stock Up as Q3 Earnings Beat Estimates, RevPAR Rises Y/Y

Marriott International, Inc. MAR reported third-quarter 2025 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Its earnings beat the estimate for the fourth straight quarter. Both metrics increased on a year-over-year basis.

Following the results, the stock surged 0.5% in today’s pre-market trading session.

The company delivered strong performance in the quarter, supported by solid rooms growth, profit gains and continued development momentum. Global revenue per available room improved slightly, led by strength in international markets. The Asia Pacific region performed well, driven by healthy travel demand in Japan, Australia and Vietnam. The luxury segment continued to outperform, supported by strong rates and sustained demand. The company’s broad portfolio, spanning from midscale to luxury brands and including extended stay and unique lodging offerings, continued to attract strong owner preference.

Development activity remained robust, with record year-to-date signings and steady progress in conversions. Conversions accounted for a meaningful portion of new additions, highlighting continued interest from owners and franchise partners. With consistent execution and growing global demand, the company remains on track to achieve healthy net rooms growth of 5% for 2025 and maintain mid-single-digit expansion over the next few years.

MAR’s Q3 Earnings & Revenue Discussion

Marriott’s adjusted earnings per share (EPS) of $2.47 beat the Zacks Consensus Estimate of $2.41. It reported adjusted earnings of $2.26 per share in the prior-year quarter.

Quarterly revenues of $6,489 million beat the consensus mark of $6,454 million. The top line moved up 4% on a year-over-year basis.

Marriott International, Inc. Price, Consensus and EPS Surprise

Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. Quote

Revenues from Base management and Franchise fees were $314 million and $876 million, respectively, up 1% and 8% year over year. We estimated the metrics to be $314.9 million and $865.3 million, respectively.

However, Incentive management fees decreased of 7% year over year to $148 million. We expected the metric to be $144.2 million.

MAR’s RevPAR & Margins

RevPAR for worldwide comparable system-wide properties rose 0.5% (in constant dollars) year over year. This upside was backed by a 0.9% increase in average daily rate (“ADR”), offset by a 0.3% fall in occupancy year over year.

Comparable system-wide RevPAR in the Asia Pacific (excluding China) increased 4.7% (in constant dollars) year over year. Occupancy moved up 1.2% year over year, while ADR rose 3%. Comparable system-wide RevPAR in Greater China remained flat year over year.

On a constant-dollar basis, international comparable system-wide RevPAR increased 2.6% year over year. Occupancy and ADR gained 0.8% and 1.4%, respectively, year over year. Comparable system-wide RevPAR in Europe gained 0.8% year over year. RevPAR in the Caribbean & Latin America and the Middle East & Africa rose 2.8% and 8.7%, respectively, year over year.

Total expenses remained almost flat year over year at $5.31 billion. Our estimate was pegged at $5.41 billion.

Adjusted EBITDA amounted to $1.35 billion compared with $1.23 billion reported in the prior-year quarter. We predicted the metric to be $1.32 billion.

Balance Sheet of MAR

At the third-quarter end, Marriott's total debt was $16 billion compared with $15.7 billion reported in the prior quarter. Cash and cash equivalents, as of Sept. 30, 2025, were $0.7 billion compared with $0.4 billion as of 2024-end.

Year to date (through Sept. 30, 2025), the company repurchased 9.7 million shares worth $2.6 billion.

MAR’s Unit Developments

At the end of the third quarter, Marriott's worldwide development pipeline totaled 3,923 hotels. As of the quarter's end, about 1,536 properties with more than 250,000 rooms were under construction.

Marriott’s Q4 & 2025 Outlook

For the fourth quarter, management anticipates gross fee revenues in the range of $1.382-$1.402 billion. General and administrative expenses are anticipated in the range of $251-$261 million. Adjusted EBITDA is expected to be between $1.371 billion and $1.401 billion. MAR estimates fourth-quarter EPS to be between $2.54 and $2.62. The company predicts worldwide system-wide RevPAR year-over-year growth to be 1-2% in the fourth quarter.

The company still expects worldwide system-wide RevPAR to increase 1.5-2.5% year over year in 2025.

For 2025, Marriott now expects its gross fee revenues to be $5.395-$5.415 billion compared with the prior expected range of $5.365-$5.420 billion. General and administrative expenses are anticipated in the range of $975-$985 million compared with the prior expected range of $965-$985 million.

Adjusted EBITDA is expected to be between $5.352 billion and $5.382 billion compared with the previous expectation of $5.310-$5.395 billion. The company now envisions 2025 EPS in the band of $9.98-$10.06 compared with the prior expectation of $9.85-$10.09.

MAR’s Zacks Rank

Marriott currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Recent Consumer Discretionary Releases

Hilton Worldwide Holdings Inc. HLT reported third-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
 
Hilton’s results were supported by its resilient business model, which delivered strong bottom-line performance despite softer RevPAR trends. Growth was driven by a robust development pipeline, increased construction starts and strong demand for brand conversions. Global expansion and sustained net unit growth momentum further reinforced Hilton’s performance and outlook confidence.
 
Hasbro, Inc. HAS reported third-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year quarter’s figure. The downside was mainly due to weaker contributions from the Consumer Products segment.
 
Nonetheless, Hasbro raised its full-year revenue and adjusted EBITDA guidance. The update was supported by strong performance in the Wizards segment, along with steady contributions from the games portfolio, licensing partnerships and execution of the “Playing to Win” strategy. Despite ongoing macroeconomic challenges, Hasbro expects cost efficiency measures and business diversification to support its growth plans for 2025 and beyond.
 
Mattel, Inc. MAT reported third-quarter 2025 results, with both earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines also fell year over year from the prior-year quarter’s figure.
 
Mattel delivered a soft performance in the quarter, likely impacted by global trade dynamics, shifting retailer ordering patterns across the industry and ongoing uncertainty surrounding tariff conditions. Key segments such as Barbie and Fisher-Price continued to face headwinds, resulting in lower gross billings. Despite these challenges, point-of-sale momentum remains positive both in the U.S. and international markets. Mattel has reiterated its full-year guidance for 2025.

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