Finance
Marriott Lifts 2025 Profit Forecast on Robust Luxury Hotel Demand
Published by Global Banking & Finance Review®
Posted on November 4, 2025
2 min readLast updated: January 21, 2026
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Marriott raises its 2025 profit forecast amid strong luxury hotel demand, despite challenges in budget segments. Q3 profit exceeded expectations.
Marriott Raises 2025 Profit Outlook Amid Strong Luxury Hotel Demand
By Aishwarya Jain
(Reuters) -Hotel operator Marriott International raised its full-year 2025 profit forecast and beat third-quarter estimates on Tuesday as resilient demand for luxury accommodation countered soft sales in its budget and select-service hotels.
Shares of the company rose 2% in morning trading.
In the past year, Marriott has flagged hits from a fall in the nights booked by U.S. government agencies as President Donald Trump's funding cuts triggered staff layoffs and tighter travel budgets.
Weaker performance at select-service hotels was largely driven by reduced government spending, Marriott said.
Sales in Marriott's upscale segments, which include brands such as Ritz-Carlton and St. Regis, cater to economically resilient customers, cushioned the impact of slowing demand in its budget and select-service offerings. Room revenue in its U.S. and Canada luxury business rose 3.5% in the reported quarter.
"Higher-end chain scales are expected to continue to outperform lower-end chain scales as we look ahead to next year," CFO Leeny Oberg said in an earnings call.
Demand for budget and mid-scale lodgings in the United States has also taken a hit as cost-conscious households pull back on travel spending, worried that a shifting tariff policy, coupled with inflation, would push up goods prices.
Room revenue from government spending fell 14% globally during the quarter, Oberg said.
Rival Hilton said last month it was "somewhat" impacted by the U.S. government shutdown, which has stretched into its sixth week amid a deadlock in Washington.
Marriott now expects 2025 adjusted profit per share of $9.98 to $10.06, the midpoint of which is higher than its earlier forecast of $9.85 to $10.08 apiece.
The Bethesda, Maryland-based company reported third-quarter adjusted profit per share of $2.47, compared with Wall Street estimates of $2.39 per share, according to data compiled by LSEG.
In the long run, this print should be taken well, with adjusted core profit growing ahead of Hilton's despite a soft room revenue environment, Bernstein analyst Richard Clarke said.
Total revenue came in at $6.49 billion, higher than the expectation of $6.46 billion.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Pooja Desai)
Key Takeaways
- •Marriott raises 2025 profit forecast due to strong luxury hotel demand.
- •Luxury segments like Ritz-Carlton and St. Regis show resilience.
- •Budget and select-service hotels face challenges from reduced government spending.
- •Marriott's Q3 profit beats estimates with $2.47 per share.
- •Total revenue exceeds expectations at $6.49 billion.
Frequently Asked Questions about Marriott lifts 2025 profit forecast on robust luxury hotel demand
1What is adjusted profit per share?
Adjusted profit per share is a financial metric that reflects a company's earnings per share, adjusted for one-time expenses or income, providing a clearer picture of ongoing profitability.
2What is room revenue?
Room revenue refers to the income generated from renting hotel rooms, which is a key performance indicator for hospitality businesses.
3What are upscale segments in hospitality?
Upscale segments in hospitality refer to higher-end hotel brands that offer premium services and amenities, targeting affluent customers.
