Marriott International’s latest financial results reveal a company navigating divergent regional trends. The hospitality giant’s performance in the fourth quarter and full year 2025 was characterized by robust international growth counterbalancing a stagnant home market in North America. This dynamic raises questions about whether the company’s unprecedented development pipeline can sustainably compensate for the cooler conditions in the U.S. and Canada.
Financial Performance Exceeds Expectations
Despite headwinds in its core market, the company delivered results that surpassed analyst forecasts. For the fourth quarter, adjusted earnings per share (EPS) rose to $2.58, up from $2.45 in the prior-year period. Total quarterly revenue reached $6.69 billion, exceeding market expert estimates of $6.67 billion.
A key industry metric, worldwide Revenue Per Available Room (RevPAR), increased by 1.9%. This aggregate figure, however, masks a significant geographical split. International operations were the clear standout, with RevPAR advancing 6.1%, fueled by strong demand in the leisure and luxury travel segments. In contrast, the U.S. and Canadian markets experienced a slight decline of 0.1%.
Should investors sell immediately? Or is it worth buying Marriott?
- Q4 Adjusted EPS: $2.58 (Prior Year: $2.45)
- Q4 Revenue: $6.69 billion
- International RevPAR Growth: +6.1%
- Development Pipeline: Approximately 610,000 rooms
- 2026 Capital Returns: Over $4.3 billion planned
Record Development Pipeline Fuels Ambitious Targets
Looking ahead, management is doubling down on global expansion to drive growth. The net rooms growth forecast for 2026 is set at 4.5% to 5.0%, an acceleration from the 4.3% achieved in the previous year. This confidence is underpinned by a massive development pipeline. As of the end of 2025, Marriott had roughly 4,100 hotels with about 610,000 rooms in its pipeline, with 43% of these projects already under construction.
The company has established corresponding financial targets. It anticipates adjusted EBITDA for 2026 to land between $5.8 billion and $5.9 billion, representing projected growth of 8% to 10%.
Shareholders are positioned to benefit directly from this strategic focus. Marriott intends to return more than $4.3 billion to investors in 2026 through a combination of share repurchases and dividend payments. The immediate operational priority remains the successful activation of its record pipeline, leveraging the momentum from international markets to offset the current softness in North American demand.
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