What’s going on here?
Marriott cruised past third-quarter earnings forecasts in 2025, thanks to strong global guest demand and a jump in luxury travel – and it’s rewarding shareholders with hefty buybacks.
What does this mean?
Marriott’s globe-spanning reach keeps powering growth. The hotel group reported a Q3 adjusted earnings per share of $2.47, topping Wall Street’s $2.39 estimate, with adjusted net income at $674 million – both outpacing analyst expectations. What really made the difference: a 2.6% rise in revenue per available room (RevPAR), led by international markets, especially Japan, Australia, and Vietnam. Luxury properties delivered an extra shine with a 4% RevPAR increase. Marriott isn’t just riding a travel wave – it returned $800 million to shareholders by snapping up three million shares in the last quarter and expects to spend $4 billion total on buybacks in 2025. The company’s global expansion added 17,900 new net rooms for 4.7% year-over-year growth. While most analysts remain neutral on Marriott itself, the sector’s current strength and a median 12-month price target of $281 – about 6% higher than recent levels – show there could still be room for more gains.
Why should I care?
For markets: Travel demand keeps hotel stocks in the spotlight.
Travel’s resilience, especially for luxury and international stays, has kept hotel stocks attractive. Marriott’s steady RevPAR and room growth point to robust consumer demand, while its price/earnings ratio of 24 shows investors remain confident in its earnings outlook. Even as analysts stick with a ‘hold’ view, the broader travel sector is still getting plenty of buy ratings – hinting at expectations for continued industry growth.
The bigger picture: Travel comeback sends ripple effects.
Marriott’s success reflects a bigger global travel recovery, with Asia-Pacific leading the way as travel restrictions ease and international mobility returns. The rebound is boosting not just hotels, but also airlines and luxury retailers tied to tourism. Add in those sizable shareholder rewards, and Marriott is positioning itself to benefit both from current travel demand and the longer-term tourism upswing.
