Marriott International's systemwide third-quarter business transient revenue per available room held steady year over year amid what CEO Anthony Capuano on Tuesday during a company earnings call termed the "hesitancy" among small and midsized enterprises to embrace business travel.
Without the effect of government travel—RevPAR for which in the third quarter declined 15 percent year over year—Capuano said Q3 systemwide third-quarter business transient RevPAR would have increased 1 percent.
Still, "as we look into 2026, [it's] a little bit more of the same," as in the third quarter, he said. Among "the larger companies that make up BT, we're seeing actually pretty encouraging strength, but you are seeing a bit of hesitancy from some of the SMEs as they try to navigate the volatile economic environment."
Marriott CFO and EVP of development Leeny Oberg added that compared with the company's large corporate accounts, "we did see relatively more weakness in the smaller and medium-sized businesses, which as you might imagine has a bit greater impact on our select-service brands."
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Marriott's Q3 overall U.S. RevPAR declined 0.4 percent year over year, driven by what Capuano called "declines in select-service brands," offsetting stronger performance in higher tiers. U.S. third-quarter business transient RevPAR declined "slightly," he said. Government RevPAR in the U.S. declined 14 percent.
Marriott Q3 Metrics
Marriott's systemwide third-quarter RevPAR increased 0.5 percent year over year to $131.43, while average daily rate increased 0.9 percent to $183.71 and occupancy decreased 0.3 percentage points to 71.5 percent. The RevPAR increase fell at the midpoint of Marriott's projection one quarter prior.
In the United States and Canada, third-quarter RevPAR declined 0.4 percent year over year to $135.85, while ADR increased 0.8 percent to $188.25, and occupancy declined 0.8 percentage points to 72.2 percent.
Marriott projected systemwide RevPAR to increase year over year by 1 percent to 2 percent in the fourth quarter and 1.5 percent to 2.5 percent for full-year 2025.
Total third-quarter revenue increased 4 percent year over year to nearly $6.5 billion. Net income was $728 million, compared with $584 million one year prior.
At the end of the third quarter, Marriott had about 9,720 properties in its system globally. It added 17,900 net rooms during the quarter. Marriott's pipeline at the end of Q3 totaled about 3,900 properties with more than 596,000 rooms.
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