Marriott International, Inc. Q4 FY2025 earnings call

• Marriott International, Inc. had nearly 1,780,000 rooms across more than 9,800 properties in 145 countries and territories at the end of December 2025. Conversions contributed around a third of signings and openings, with 75% of conversion rooms joining the system within twelve months of signing. - The portfolio includes conversion-friendly brands like luxury collection, Autograph, Tribute, series, etc. New brands added include Citizen M, Series by Marriott, and the Outdoor Collection by Marriott Bonvoy. - Actively investing in technology, data, and AI, with the multi-year transformation of three major tech systems (property management, reservations, and loyalty) well underway. Rolling out new systems in 2026 and collaborating with tech companies on AI applications. - Marriott Bonvoy loyalty program had 271 million members by year-end, won the Point Sky Award for the Best Hotel Loyalty Program for the third year, and is the official hotel supporter of the 2026 FIFA World Cup.

Fourth quarter total gross fee revenues grew 7% to $1.4 billion. Full year 2025 gross fee revenues rose 5% to $5.4 billion. Global RevPAR rose 2% for the full year, with RevPAR in the US and Canada rising 0.7% and international RevPAR increasing over 5%. Leisure RevPAR was up 3%, luxury RevPAR increased over 6% while select service RevPAR declined 30 basis points. Fourth quarter worldwide RevPAR ended at the high end of the guidance range, with December global RevPAR rising 2.8%. APAC fourth quarter RevPAR increased nearly 9%, EMEA rose 7%, CALA RevPAR rose over 2%, and Greater China RevPAR returned to growth with a rise over 3% driven by ADR.

• 2026 net rooms growth is expected to accelerate up to 4.5% to 5%. - Full year 2026 global RevPAR is expected to grow between 1.5% to 2.5%. - Fee revenues could rise 8% to 10% to $5.9 billion to $5.96 billion in 2026. IMFs are expected to be flat to up slightly year over year. - First quarter 2026 Global RevPAR could increase 1% to 2%, and gross fee revenues could increase 7% to 8%. Owned, leased, and other revenue net of owned, leased, and other expense is expected to ramp up over the year.

Q: Shaun Clisby Kelley asked about what is driving the pipeline forward and which brands will drive the numbers.

A: Anthony G. Capuano said conversions are key, with a more attractive stack of conversion-friendly brands, dedicated resources for conversions, and 75% of conversion rooms opening within twelve months of signing. Conversion-friendly brands like luxury collection, Autograph, Tribute, series, etc., and mid-scale growth will be drivers. Kathleen Kelly Oberg added focus on being quicker and streamlined to accelerate growth.

Q: Daniel Brian Politzer asked about credit card fees and the royalty rate.

A: Anthony G. Capuano said an existing contractual agreement was modified, preserving the strength and value proposition of the Bonvoy program. Kathleen Kelly Oberg said it was a careful evaluation of the appropriate level to balance the needs of all constituents.

Q: Stephen Grambling asked about Google and OpenAI partnerships.

A: Anthony G. Capuano said working with Google on designing a property search experience through AI mode for bookings, and it's early days with OpenAI's ad pilot program, collaborating with leading tech companies in the evolving distribution landscape.

Q: Michael Bellisario asked about the economic model for franchisees.

A: Anthony G. Capuano said focusing on driving owner returns, looking at all variables in the equation, lowering affiliation costs, and evaluating the hotel operating model including services, staffing, and purchasing.

Q: Elizabeth Dove asked about the consumer pulse in the US.

A: Kathleen Kelly Oberg said leisure continues strong, group RevPAR up 6%, booking windows similar, government business impact on lower-end hotels, and the World Cup to help US and Canada RevPAR.

Q: Richard J. Clarke asked about credit card spending acceleration and negotiations.

A: Kathleen Kelly Oberg said the basic credit card business is expected to have high single-digit growth, and negotiations with Chase, Amex are on track.

Q: David Brian Katz asked about key money and investment.

A: Kathleen Kelly Oberg said there's a bit more key money in tiers, with the pipeline in luxury and full service having more key money but higher fees. Tony Capuano added discipline in deploying capital, noting that deals requiring key money are more valuable per key.

Q: Brandt Antoine Montour asked about credit card upside from ongoing negotiations.

A: Kathleen Kelly Oberg said the two items are separate, the Bonvoy program is large, and negotiations are ongoing.

Q: Aryeh Klein asked about tech investment and World Cup.

A: Anthony G. Capuano said the tech platform rollout is going well, and there are early returns on World Cup demand. Kathleen Kelly Oberg added early signs of international guests booking.

Q: Conor T. Cunningham asked about the royalty rate change and owned leased.

A: Kathleen Kelly Oberg said owned leased is similar with some large renovations, and the royalty rate change is related to payments from credit card companies divided into appropriate buckets.

Q: Smedes Rose asked about trends within leisure.

A: Kathleen Kelly Oberg said redemption rate is stable, leisure strength due to the economy, and Anthony G. Capuano added event travel impact on leisure.

Q: Robin Margaret Farley asked about unit growth and credit card royalty.

A: Kathleen Kelly Oberg said 4.5% growth is organic, and the royalty rate change is in the best interest of constituents.

Q: Trey Bowers asked about business transient travel recovery.

A: Kathleen Kelly Oberg said business travel will recover, leisure is stronger, and Anthony G. Capuano added that trip purposes are more murky with combined trips.