Dive Brief:
- Marriott International reported Tuesday that its worldwide RevPAR increased 0.5% year over year in the third quarter of 2025, representing 2.6% growth in international markets and a 0.4% decline in the U.S. and Canada.
- In an earnings report, CEO Anthony Capuano attributed the U.S. and Canada RevPAR decline to “weaker demand in the lower chain scales, largely reflecting reduced government travel.” Despite the dip, Marriott held its full-year 2025 RevPAR growth outlook steady, still expecting growth in the range of between 1.5% and 2.5%.
- Also in the third quarter, Marriott’s worldwide development pipeline reached a record 3,923 properties, representing more than 596,000 rooms, according to the report. During a Tuesday earnings call, Capuano said conversions remain a key driver of Marriott’s portfolio expansion.
Dive Insight:
In the third quarter, Marriott added approximately 17,900 rooms to its portfolio, bringing its global system to more than 9,700 properties, or roughly 1.75 million rooms, according to the report.
The company’s growing pipeline will bolster continued portfolio expansion, per Capuano. At the end of Q3, Marriott’s pipeline included 1,536 properties, or more than 250,000 rooms, under construction.
Marriott’s system size and pipeline at the end of Q3 did not reflect rooms from its April acquisition of the CitizenM brand. The company expects to integrate the brand into its system and platforms in the fourth quarter, per the report.
Capuano said on the call that through the first nine months of this year, conversions counted for around 30% of both signing and openings for Marriott.
The company will continue to focus on conversion opportunities, including through its newly launched Outdoor Collection by Marriott Bonvoy brand. The offering provides outdoors-focused, design-forward accommodations in destinations near national parks, deserts, ski areas and other nature-oriented destinations.
Marriott will also lean on luxury amid travelers’ continued appetite for the segment, Capuano noted. “Globally, our luxury hotels continued to outperform, driven by robust demand and strong rate performance, with luxury RevPAR rising 4 percent in the quarter,” he said in the report.
On the technology front, Marriott has continued its multiyear digital and technology transformation of its property management, reservations and loyalty platforms, Capuano said on the call. Through the transformation, Marriott is scaling high-priority generative AI use cases and exploring where artificial intelligence agents could automate high-cost processes and improve experiences.
Last week, Marriott confirmed to Hotel Dive that a small subset of its customer engagement center workforce will be laid off, though a source familiar with the matter said AI-related developments were not a factor in the decision.
