Marriott Trims Outlook on 'Softer' U.S. Demand But Sees Strength Internationally

Marriott's revised outlook for 2025 has one overriding theme: Executives believe that U.S. and international travel spending could stay fairly resilient this year despite the shocks of the tariff war.

Marriott's first quarter was driven by a strong international performance, even as U.S. hotel demand growth showed signs of moderation.

"After January and February results were stronger than we expected, demand in the U.S. did soften in March, primarily due to a 10% year-over-year decline in U.S. government RevPAR [revenue per available room]," said president and CEO Anthony Capuano during a Tuesday earnings call.

In the quarter, the world's largest hotel operator saw RevPAR increase 4.1% worldwide. International markets were strongest. RevPAR in India rose 16%, and in Japan, it rose 17%.

"March had almost a bit of a one-time impact from the shock of government layoffs, as well as a lot of tariff announcements," said CFO Leeny Oberg. "We're not assuming a recession scenario."

The company saw the most strength in full-service luxury hotels and resorts and the most weakness at its limited-service properties. Executives chalked that up to economic uncertainty weighing on middle-class consumers rathe