Tue, May 6, 4:12 PM (13 days ago)
**Marriott International, Inc. (MAR) Q1 2025 Financial Summary** Marriott International, Inc. (MAR) reported strong financial performance for Q1 2025, with notable increases in revenue, profit margins, and cash flow. The company's strategic initiatives and operational efficiencies contributed to its robust quarterly results. **Revenue and Profit Margins:** - **Total Revenue:** $6,263 million, up 5% from $5,977 million in Q1 2024. - **Net Income:** $665 million, an increase of 18% from $564 million in Q1 2024. - **Earnings per Share (EPS):** Basic EPS was $2.40, up from $1.94 in Q1 2024. Diluted EPS was $2.39, up from $1.93. - **Operating Income:** $948 million, up from $876 million in Q1 2024. **Cash Flow:** - **Net Cash Provided by Operating Activities:** $647 million, down from $779 million in Q1 2024. - **Capital and Technology Expenditures:** $135 million, up from $109 million in Q1 2024. **Segment Performance:** - **U.S. & Canada:** Segment net fee revenues increased by 4% to $689 million. Segment profit grew by 3% to $644 million. - **Europe, Middle East & Africa (EMEA):** Segment net fee revenues slightly decreased by 1% to $114 million. Segment profit decreased by 9% to $74 million. - **Greater China:** Segment net fee revenues decreased by 8% to $60 million. Segment profit decreased by 12% to $45 million. - **Asia Pacific excluding China (APEC):** Segment net fee revenues increased by 13% to $97 million. Segment profit grew by 11% to $80 million. **Business Trends and Uncertainties:** - **Global RevPAR Growth:** Worldwide RevPAR increased by 4.1%, driven by ADR growth of 2.9% and occupancy improvement of 0.7 percentage points. - **System Growth:** The company added approximately 12,200 net rooms in Q1 2025, with a development pipeline of over 587,000 rooms. - **Acquisitions:** Marriott announced the acquisition of the citizenM brand for $355 million, with potential earn-out payments up to $110 million based on future growth. - **Legal and Regulatory:** The company continues to face legal proceedings related to the Starwood data security incident, with ongoing efforts to appeal and defend against claims. **Future Operations Impact:** - **Capital Expenditures:** Marriott expects capital expenditures and other investments to total approximately $1,355 million to $1,455 million for the full year 2025, including investments related to the citizenM brand acquisition. - **Share Repurchases and Dividends:** The company repurchased 2.8 million shares for $0.8 billion in Q1 2025 and declared a quarterly cash dividend of $0.63 per share. - **Liquidity and Capital Resources:** Marriott maintains a strong liquidity position with significant borrowing capacity under its Credit Facility and access to capital markets. Marriott International, Inc. continues to demonstrate strong financial health and strategic growth, positioning itself for sustained success in the hospitality industry. The company's focus on operational efficiency, strategic acquisitions, and robust liquidity management supports its positive outlook for future operations.