Published on
November 5, 2025
In the third quarter of 2025, Marriott International posted a slight increase in global RevPAR (Revenue per Available Room) despite a sluggish business travel market in North America. While the broader business travel landscape remained relatively stagnant year-on-year, Marriott’s strong performance in international markets helped the company maintain steady growth. Leisure travel drove much of the momentum, especially in regions like Asia Pacific and Europe, where demand remained robust. This resilience allowed Marriott to weather challenges like reduced government travel in North America, and the company continued to see healthy profitability with a significant boost in net profits. As the company looks ahead to 2026, global expansion and luxury brands are expected to remain key pillars of its ongoing success.
Marriott’s Strong Growth Despite Regional Challenges
Despite facing a flat business travel market worldwide, Marriott’s growth was powered by international demand and leisure travel. RevPAR, a key metric in the hospitality industry, saw a 0.5% increase compared to the same period last year, reaching $131.43 in Q3 2025. This performance reflects a positive 2.6% rise in international markets, where RevPAR hit $122.66. However, in North America, Marriott saw a slight decline of 0.4%, with RevPAR dipping to $135.85.
The primary driver of growth was leisure travel, with RevPAR in this segment rising 1% globally. In contrast, business travel performance was flat, and group demand declined by 2% due to the timing of corporate and association events. The weak demand for government travel, down 14% from last year, also contributed to the challenges faced in the North American region.
Asia Pacific and Europe: Key Growth Markets for Marriott
Marriott’s success in international markets, particularly in Asia Pacific and Europe, was evident in its strong performance across these regions. Japan, Australia, and Vietnam were among the top performers, benefiting from continued leisure demand and luxury brand strength. Marriott’s luxury portfolio outperformed expectations, supported by high demand and strong rates.
Europe, in particular, stood out with a 0.8% increase in RevPAR, reaching $201.98. This was the highest among all global regions. Occupancy in Europe rose by 0.4 percentage points, reaching 77.2%, a significant improvement over the global average of 71.5%. The region also saw an increase in the average daily rate, which rose 0.3% to $261.49.
In addition to the strong performance in leisure travel and luxury brands, Marriott’s overall global footprint continued to grow. The company’s asset-light business model, which focuses on managing and franchising properties rather than owning them, remained a key driver of profitability. Marriott reported a net profit of $728 million, up by 25% compared to Q3 2024. Revenue for the quarter grew by 4%, totaling $6.49 billion.
Challenges in North America: Weaker Demand for Government Travel
While Marriott saw strong performance globally, its North American operations faced challenges. The most significant factor contributing to this was the decline in government travel, which traditionally represents a significant portion of the lower chain scale business. This segment saw a marked decline of 14% compared to the previous year, a trend that has weighed on Marriott’s North American RevPAR.
Despite this, large corporations still showed strong demand for business travel, offering some hope for recovery in the business transient sector, even as small and medium enterprises (SMEs) exercised caution in the face of economic uncertainty.
Marriott’s Growth Strategy and Outlook for 2026
Looking forward to 2026, Marriott’s strategy remains focused on expanding its global reach, particularly through luxury brands and international markets. The company is optimistic about business transient demand from larger companies, even though SMEs may remain hesitant due to ongoing economic volatility. The company’s management emphasized the importance of strong brand performance and development signings, as Marriott continues to grow its presence across both new and established markets.
With its asset-light model, Marriott is able to maintain operational flexibility while investing in luxury offerings and high-demand regions. As the global hospitality industry adjusts to evolving economic and travel trends, Marriott’s resilience in both leisure and luxury sectors positions it well for continued growth.
Travel Tips for 2026: What Travelers Can Expect from Marriott
For travelers planning their stays in Marriott properties over the next year, here are some useful tips:
- Luxury Travel on the Rise: If you’re looking for premium experiences, Marriott’s luxury brands such as JW Marriott and Ritz-Carlton continue to see strong demand, particularly in markets like Asia Pacific and Europe.
- Leisure Travel Focus: With a surge in leisure travel, expect competitive prices and more amenities in vacation destinations. Look for special offers in European cities like Paris and Rome, as Marriott has seen increased occupancy in these areas.
- Plan Ahead for Events: Group demand is slightly down, so booking early for events or corporate travel might secure better rates and availability.
Summary
Marriott’s ability to balance growth in international markets while navigating challenges in North America shows the power of its global strategy. By focusing on both luxury brands and the continued growth of its international portfolio, Marriott is poised for another strong year in 2026, even with uncertainties in the global economy.
