Marriott amplifies travel industry stress with 2025 revenue forecast cut

Marriott International trimmed its 2025 room revenue forecast and projected second-quarter profit below Wall Street expectations on Tuesday, as the U.S. hotel operator braces for slowing travel demand.

The dour forecasts add to recent downbeat comments from travel-related companies as consumers rein in discretionary spending amid rising risks of a recession following U.S. President Donald Trump’s erratic trade policy.

Marriott expects full-year room revenue growth of 1.5% to 3.5% for the year, compared with 2% to 4% it forecast earlier.

Last week, rival Hilton cut its forecast for room revenue growth, while vacation rental company Airbnb said the booking window was shortening, signaling consumer uncertainty and caution in travel spending.

Marriott, which owns brands including Sheraton and Courtyard, expects second-quarter adjusted profit of $2.57 to $2.62 per share, below analysts’ estimates of $2.68.

The Ritz Carlton parent said while it saw slower growth in revenue per available room (RevPAR) in the U.S. and Canada in March, room revenue in the region for the quarter was still up 3%.

Excluding items, first-quarter profit of $2.32 per share beat estimates of $2.25, according to data compiled by LSEG.

The company posted quarterly revenue of $6.26 billion, up 5% from last year. Analysts on average were expecting revenue of $6.17 billion.