Marriott Intl Inc New — Financial Results
Fee Revenue Grew 5% as the Core Business Gains Momentum
| Revenue Type | 2025 | 2024 | Change |
|---|---|---|---|
| Franchise fees | $3,325M | $3,113M | +7% |
| Base management fees | $1,322M | $1,288M | +3% |
| Incentive management fees | $791M | $769M | +3% |
| Net fee revenues | $5,303M | $5,067M | +5% |
Net fee revenues — the core income Marriott earns from running and licensing hotels it doesn't own — rose $236 million to $5.3 billion. A big contributor was co-branded credit card fees, which jumped $105 million, showing how valuable the Marriott Bonvoy loyalty program has become beyond hotel stays. Room growth across the system added another $94 million.
Room Rates Driving Global Growth, but the U.S. is Softer
| Region | RevPAR Growth | ADR Growth |
|---|---|---|
| Worldwide | +2.0% | +2.1% |
| U.S. & Canada | +0.7% | +1.5% |
| International | +5.1% | +3.4% |
| Middle East & Africa | +10.4% | +7.2% |
RevPAR (revenue per available room, a standard hotel performance measure) grew 2% globally, driven almost entirely by higher room rates rather than more guests filling rooms. International markets — especially the Middle East, Africa, and Asia Pacific — far outpaced the U.S., where weaker business travel and a drop in government bookings held growth to just 0.7%.
Portfolio Expanded by Over 73,000 Rooms in 2025
Marriott added 444 net properties and 73,605 net rooms during the year, ending 2025 with 9,805 properties and nearly 1.78 million rooms. Roughly 33,400 of the new rooms were conversions — hotels that switched to a Marriott brand from a competitor. The company also acquired the citizenM brand, adding 37 properties and nearly 9,000 rooms. Looking ahead, Marriott expects net rooms growth of 4.5–5.0% in 2026, supported by a pipeline of approximately 610,000 rooms.
General and Administrative Costs Cut by $75 Million
Marriott reduced general and administrative expenses by 8%, from $945 million to $870 million, largely through lower compensation costs. The company also swung from $77 million in restructuring charges in 2024 to a near-zero position in 2025, partly because it received $47 million in insurance recoveries related to the 2018 Starwood data breach. Together these savings helped protect profitability even as interest costs rose.
Debt Rose Sharply as Marriott Returned $3.3 Billion to Shareholders
| Item | 2025 | 2024 |
|---|---|---|
| Total debt | $16,204M | $14,447M |
| Interest expense | $809M | $695M |
| Shares repurchased | $3,300M | — |
Marriott issued several rounds of Senior Notes (long-term bonds) during 2025, pushing total debt up by $1.76 billion. This drove interest expense up 16% to $809 million. At the same time, the company bought back 12.1 million of its own shares for $3.3 billion and paid quarterly dividends that rose from $0.63 to $0.67 per share. This is an aggressive return of cash to investors, but it does come at the cost of a heavier debt load.