Development, Luxury Hotels and Fee Revenue Are Keys to Marriott’s Third Quarter Success

Image: Paraiso La Bonita (Photo Credit: Marriott International)
Image: Paraiso La Bonita (Photo Credit: Marriott International)
Lacey Pfalz
by Lacey Pfalz
Last updated: 8:45 AM ET, Tue November 4, 2025

Strong development, increased demand for luxury hotels and increased fee revenue helped Marriott International, Inc.’s financials during the third quarter of the year. 

The hotel giant’s operating income was reported at $1.18 billion in the third quarter of 2025, an increase from last year’s $944 million. Reported net income had increased 25 percent year-over-year, and shareholders took home a diluted earnings per share (EPS) of $2.67, higher than last year’s $2.07. 

Adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization totaled a 10 percent increase from the third quarter of 2024, at $1.349 billion. 

Worldwide RevPAR, or revenue per available room, a key hospitality industry metric, increased 0.5 percent overall, though the U.S. and Canada market RevPAR decreased 0.4 percent year-over-year.

What’s Driving the Increased Earnings? 

A lot of it comes from brand growth, increased fees and a strong demand for luxury hotels. Base management and franchise fees increased 6 percent during the quarter when compared to last year, and the company added just under 18,000 new rooms to its many brands, boasting over 9,700 hotels and resorts by quarter-end. RevPAR for luxury hotels grew 4 percent from last year. 

Marriott has been increasing development since the pandemic ended, and it currently boasts 3,923 properties currently in development, representing nearly 600,000 rooms across the globe. 

Recently, it finalized its acquisition of the CitizenM hotel brand, announced a new Series by Marriott conversion brand in North America and launched its new outdoor lodging brand and platform, the Outdoor Collection by Marriott Bonvoy and Marriott Bonvoy Outdoors. 

"Our third quarter results demonstrated continued strong execution of our growth strategy, the power of our brands, and the cash flow benefits of our asset-light business model,” said Marriott’s President and Chief Executive Officer, Anthony Capuano. “We delivered another quarter of strong rooms growth, robust development signings and profit gains.

"Our diverse portfolio of brands, that range from midscale to luxury, and include traditional, extended stay, and unique lodging options like cabins and safari lodges, continues to drive strong owner preference,” continued Capuano. “During the first nine months of the year, we had record year-to-date signings, and our momentum on conversions continued, comprising around one third of our signings and openings."

Marriott's Short-Term Financial Future 

Marriott International expected to see a comparable systemwide RevPAR growth of 1-2 percent during the fourth quarter of the year, with a full-year RevPAR growth ranging between 1.5 and 2.5 percent.

"We still expect net rooms growth to approach 5 percent for full year 2025 and be in the mid-single-digit range over the next few years," said Capuano. 

Adjusted EBITDA during the fourth quarter is ranging between $1.371 billion and $1.401 billion, with full-year EBITDA ranging between $5.352 billion and $5.382 billion. 


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Lacey Pfalz

Lacey Pfalz

Senior Editor, News & Features

Lacey Pfalz is Associate Editor at TravelPulse. She's a passionate advocate of responsible travel and believes the best travel experiences happen outside of a planned itinerary. Lacey currently lives in rural Wisconsin. She can be reached at [email protected].

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