Marriott International, Inc. Q3 FY2025 earnings call

• Development activity remained strong, with global portfolio of rooms growing 4.7% year-over-year to over 1.75 million rooms. - Launched Outdoor Collection by Marriott Bonvoy and Series by Marriott in the U.S. - Marriott Bonvoy membership grew to nearly 260 million members. - Progressed in technology transformation with property management, reservations, and loyalty platforms, and leveraged AI across business. - Conversions accounted for around 30% of signings and openings in the first 9 months.

Global RevPAR in the third quarter rose 0.5%. International RevPAR grew 2.6%, outperforming the U.S. & Canada where RevPAR was down 0.4%. By region, APEC had nearly 5% RevPAR growth, EMEA 2.5%, CALA nearly 3%, and Greater China was flat (excluding typhoons). Luxury RevPAR rose 4%, with 10% of rooms in luxury and 42% in full-service premium segments. Revenue contribution: Co-branded credit card fees were a significant part, with international card fees up nearly 20%, and owned, leased and other revenue net of expenses rose 16%.

• Q4 RevPAR expected to increase 1% to 2% compared to prior year. - Full year 2025 RevPAR anticipated to rise 1.5% to 2.5% year-over-year. - 2026 RevPAR growth could be similar to 2025, higher internationally than in U.S. & Canada. - Next summer's World Cup could contribute 30-35 basis points to full year global RevPAR growth. - Q4 adjusted EBITDA expected to increase 7% to 9%, full year gross fees to increase 4.5% to 5% year-over-year.

• Macroeconomic uncertainty impacting RevPAR. - Credit card renewal negotiations being fluid and delicate. - Challenging financing environment affecting new build construction. - Competition in financial services impacting credit card program negotiations.

Q: Shaun Kelley asked about credit card program parameters, current size, renegotiation parameters, and timing.

A: Anthony Capuano and Kathleen Oberg discussed active negotiations, the power of Marriott Bonvoy, how credit card mechanics work, and that deals will be worked on diligently.

Q: Michael Bellisario asked about franchise health, owners' needs, and ensuring attractive economics for mid-single-digit net unit growth.

A: Anthony Capuano mentioned focus on driving top-line performance, reducing loyalty chargebacks, and margin enhancement.

Q: David Katz asked about investment spending and key money trends.

A: Kathleen Oberg explained investment spending includes tech and owned/leased CapEx, not a change in key money philosophy.

Q: Dan Politzer asked about 2026 RevPAR outlook and pacing.

A: Kathleen Oberg and Anthony Capuano discussed U.S. being lower than international, World Cup impact, and leisure being a stronger performer in upper chain scales.