Marriott scales again 2025 forecast as US journey demand stays dour

By Aishwarya Jain

(Reuters) -Hotel operator Marriott International lower its full-year forecast for income development and revenue on Tuesday, signaling challenges from gradual journey demand within the U.S. amid looming financial uncertainties.

American shoppers have been slicing again on discretionary bills, together with journey, after U.S. President Donald Trump’s shifting tariff insurance policies and the ensuing commerce struggle sparked fears of a recession.

Marriott’s complete room income within the U.S. and Canada was flat in the course of the second quarter in contrast with the yr earlier, because the impression of the journey slowdown on its funds and select-service segments was offset by power in its upscale properties within the area.

The firm’s upscale phase, which incorporates manufacturers such because the Ritz-Carlton and Sheraton, caters to extra economically resilient clients.

Room income in its U.S. and Canada luxurious phase grew 4.1%, whereas that in select-service decreased 1.5%.

The select-service phase, which incorporates legacy manufacturers such because the Courtyard and Fairfield, additionally took successful from a 16% drop in authorities income in the course of the quarter.

“Two thirds of (all) government revenues are in the select-service segment,” CEO Anthony Capuano stated, including that the resort operator additionally noticed weak demand from small enterprise clients throughout segments.

The Bethesda, Maryland-based firm expects 2025 room income development of 1.5% to 2.5%, in contrast with its earlier forecast of a 1.5% to three.5% improve.

It expects 2025 adjusted revenue to be between $9.85 and $10.08 per share, with the midpoint beneath its earlier projection of $9.82 to $10.19 per share.

“The trim off the top end of guidance is expected and, we believe, reflected in the shares,” stated David Katz, analyst at Jefferies. He expects the inventory response to be impartial.

Excluding gadgets, Marriott’s per-share revenue for the quarter got here in at $2.65, whereas analysts estimated $2.62, in line with information compiled by LSEG.

(Reporting by Aishwarya Jain in Bengaluru; Editing by Shilpi Majumdar)