Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
Marriott International ended Q2 with a record pipeline of about 3,900 properties and more than 590,000 rooms.
Global RevPAR rose 1.5 percent, including a 5.3 percent gain in international markets.
Net income slipped 1 percent to $763 million; 17,300 net rooms were added.
MARRIOTT INTERNATIONAL’S GROWTH continued in the second quarter, according to the company’s recent earnings report. Along with its active pipeline, the company saw rising revenue and launched a new brand.
Marriott’s global development pipeline stood at approximately 3,900 properties with more than 590,000 rooms at the end of the second quarter. The company added about 17,300 net rooms, signed nearly 32,000 and reported more than 70 percent of signings and 8,500 of added rooms in international markets.
“Marriott delivered another solid quarter, highlighted by strong financial results and robust net rooms growth despite heightened macro-economic uncertainty,” said Anthony Capuano, Marriott president and CEO. “Global RevPAR increased 1.5 percent in the second quarter, primarily driven by the leisure segment. International RevPAR rose more than 5 percent, with strong growth in APEC and EMEA. In the U.S. and Canada, RevPAR was flat year over year with continued strength in the luxury segment offset by a decline in select-service demand, largely reflecting reduced government travel and weaker business transient demand. Adjusting for the Easter holiday shift, U.S. and Canada RevPAR increased by nearly 1 percent.”
Base management and franchise fees rose nearly 5 percent to $1.2 billion, driven by RevPAR growth, room additions and co-branded credit card fees, the statement said. Reported operating income increased to $1.236 billion from $1.195 billion, while net income declined 1 percent to $763 million. Reported diluted earnings per share were $2.78, up from $2.69.
Adjusted operating income rose to $1.186 billion from $1.120 billion, Marriott said. Adjusted net income increased to $728 million from $716 million and adjusted diluted EPS rose to $2.65 from $2.50. Adjusted EBITDA grew 7 percent to $1.415 billion.
Pipeline and brands
Marriott added about 17,300 net rooms in the quarter, including over 8,500 internationally, bringing its global system to more than 9,600 properties and around 1.736 million rooms. It signed nearly 32,000 rooms, over 70 percent in international markets. Conversions made up about 30 percent of signings and openings in the first half. Full-year net rooms growth is expected to approach 5 percent.
Marriott Bonvoy membership also reached nearly 248 million by the end of June, the statement said.
“Development activity remained robust,” Capuano said. “We signed nearly 32,000 rooms, more than 70 percent of which were in international markets, and our quarter-end pipeline stood at a record of more than 590,000 rooms. Conversions continued to be a key driver of growth, representing approximately 30 percent of our room signings and openings in the first half of this year. We still expect full year net rooms growth to approach 5 percent this year.”
The development pipeline included 3,858 properties and more than 590,000 rooms, with 234 properties and over 37,000 rooms approved but not yet under contract, the statement said. The pipeline included 1,447 properties with more than 238,000 rooms under construction or conversion. Over half of the pipeline rooms were outside the U.S. and Canada.
The company launched Series by Marriott, a regional collection brand for midscale and upscale segments, and announced its first agreement to affiliate India’s Fern portfolio. Marriott also completed the acquisition of citizenM. However, the citizenM and Series by Marriott additions were not included in the pipeline total.
Capuano said both brands are expected to support international expansion.
2025 outlook
Marriott’s outlook assumes no major shifts in macroeconomic conditions. The company expects RevPAR to be flat to up 1 percent in the third quarter of 2025 and grow 1.5 to 2.5 percent for the full year. Net rooms growth is projected to approach 5 percent in 2025.
Gross fee revenues are expected to total $1.310 billion to $1.325 billion in the third quarter and $5.365 billion to $5.420 billion for the year. Adjusted EBITDA is forecast at $1.288 billion to $1.318 billion for the third quarter and $5.310 billion to $5.395 billion for the full year.
Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
The U.S. leads with 6,280 projects; Dallas tops cities with 199.
Nearly 2,900 hotels are expected to open worldwide by the end of 2025.
THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.
The U.S. leads with 6,280 projects and 737,036 rooms, 40 percent of the global total. Dallas leads cities with 199 projects and 24,497 rooms, the highest on record.
LE’s Q2 2025 Hotel Construction Pipeline Trend Report showed 6,257 projects with 1,086,245 rooms under construction worldwide, unchanged in project count and down 3 percent in rooms from last year. Projects scheduled to start in the next 12 months totaled 3,870 with 551,188 rooms, down 3 percent in projects but up 1 percent in rooms. Early planning reached 5,744 projects and 798,792 rooms, up 10 percent in projects and 9 percent in rooms year-over-year.
Upper midscale and upscale hotels accounted for 52 percent of the global pipeline, LE said. Upper midscale stood at 4,463 projects and 567,396 rooms, while upscale reached 3,852 projects and 655,674 rooms. Upper upscale totaled 1,807 projects and 385,396 rooms, and luxury totaled 1,267 projects and 245,665 rooms, up 11 percent year-over-year.
In the first half of 2025, 970 hotels with 138,168 rooms opened worldwide. Another 1,884 hotels with 280,079 rooms are scheduled to open before year-end, for a 2025 total of 2,854 hotels and 418,247 rooms. LE projects 2,531 hotels with 382,942 rooms to open in 2026 and 2,554 hotels with 382,282 rooms to open globally in 2027, the first time a forecast has been issued for that year.
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Asian Media
Group USA Inc. and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.
GSA will keep federal per diem rates the same for FY 2026.
The lodging rate stays $110 and meals allowance $68.
AHLA raised concerns over the impact on government travel.
THE U.S. GENERAL Services Administration will keep standard per diem rates for federal travelers at 2025 levels for fiscal year 2026. The American Hotel and Lodging Association raised concerns that the decision affects government travel, a key economic driver for the hotel industry.
The standard lodging rate remains $110 and the meals and incidental allowance is $68 for fiscal year 2026, unchanged from 2025, GSA said in a statement.
“Government travel is a vital economic driver for the hotel industry and the broader travel economy,” said Rosanna Maietta, AHLA’s president and CEO. “That’s why it’s so important for government per diem rates to keep pace with rising costs across the economy. The GSA’s decision to keep per diem rates flat will place a strain on the hospitality industry as well as government travelers seeking lodging. A strong economy requires a thriving hospitality sector. We will continue to advocate with the GSA and members of Congress for per diem rates that reflect hotels’ rising costs of doing business.”
GSA sets per diem rates to reimburse federal employees’ lodging and meal expenses for official travel within the continental U.S., based on the trailing 12-month ADR for lodging and meals minus 5 percent. This is the first year in five that GSA has not raised the rates.
The federal administration said the decision reflects the federal government’s commitment to using taxpayer funds appropriately and for core mission activities. The steady per diem rates are enabled by the reduction in inflationary pressures from the previous administration.
“GSA's decision ensures cost-effective travel reimbursement while supporting the mission-critical mobility of the federal workforce,” said Larry Allen, associate administrator, GSA Office of Government-wide Policy.
The rate applies to federal travelers and those on government-contracted business for all U.S. locations not designated as “non-standard areas,” which have higher per diems. For fiscal year 2026, GSA will keep the number of non-standard areas at 296, unchanged from 2025.
Comfort Hotels will host the one-day Waffle Lounge in New York City on Aug. 21.
The Union Square event runs from 12 to 7 p.m.
Visitors can win a one-night stay at a participating Comfort or other Choice hotel.
CHOICE’S COMFORT HOTELS is bringing its signature breakfast item to life with the Waffle Lounge, a one-day pop-up event in New York City on Aug. 21. The event, timed to coincide with National Waffle Day on Aug. 24, highlights the brand’s role in offering guests a sense of home during their travels.
Waffles have been served at Comfort Hotels since the early 1990s, with more than 30 million made annually across its properties, Choice said in a statement. A recent national survey found that 70 percent of consumers prefer familiar meals over gourmet options.
“Waffles are a recognizable and meaningful part of the Comfort brand experience,” said Jenny Aboudou, Choice’s head of upper midscale brands. “Hosting a community event in New York City is a great way to highlight how this simple offering continues to resonate with travelers.”
The Waffle Lounge, located in Union Square, will be open from 12 to 7 p.m., the statement said. The event also marks more than 40 years of the Comfort brand, which includes Comfort Inn, Comfort Inn & Suites and Comfort Suites and operates more than 2,100 locations worldwide.
Guests can get free waffles with toppings, iced lattes, nail art, massage chairs and waffle-themed merchandise, Choice said. Visitors can also enter to win a one-night stay at a participating Comfort or other Choice hotels. The celebration extends online with a contest awarding 10 winners a one-night stay. To enter, users can tag a friend on Choice Hotels’ Instagram Waffle Day post and sign up for the Choice Privileges rewards program.
Choice recently launched two campaigns — “Stay in Your Rhythm” and “The WoodSpring Way” — to increase awareness and bookings across its four extended-stay brands.
Hospitality job openings fell by 308,000 in June, the largest drop of any industry.
National openings held at 7.4 million, a 4.4 percent rate.
Hospitality quit rates remain above the national average.
THE HOSPITALITY SECTOR saw the largest decline in job openings of any industry in June, according to the U.S. Bureau of Labor Statistics. Accommodation and food services fell by 308,000 positions from the previous month.
The “BLS Job Openings and Labor Turnover Survey” found the drop occurred despite overall U.S. openings holding at 7.4 million, a 4.4 percent rate. The hospitality category, which includes accommodation and food services, has been a major driver of labor demand in recent years but continues to face volatility in hiring needs and high turnover.
Nationally, the number of quits remained unchanged at 3.1 million, a 2 percent rate, the report said. However, hospitality continues to experience quit rates well above the national average, reflecting persistent retention challenges.
While industries such as retail trade and information saw increases in openings in June, the contraction in hospitality suggests a recalibration in staffing needs ahead of the second half of 2025. The next JOLTS report, covering July 2025, will be released on September 3 and will indicate whether the downturn in hospitality job openings is a short-term adjustment or the start of a longer trend.
A survey by Expert Market found 48 percent of accommodation businesses view staffing as their top risk for the year, followed by labor costs at 34 percent and maintenance at 27 percent.
North America recorded a 10 percent decline while Central America dropped 12 percent.
THE GLOBAL TRAVEL and tourism sector recorded an 8 percent year-on-year decline in total deal activity during the first half of 2025, according to market data firm GlobalData. Reduced investor appetite was seen across major deal types: mergers and acquisitions, private equity and venture financing.
GlobalData’s analysis shows venture financing deals fell by about 25 percent and private equity deals dropped by around 20 percent compared to the same period last year. M&A activity proved more resilient with a smaller 3.5 percent decline in volume. North America saw a 10 percent decline while Central America saw a 12 percent decline.
“The overall decline underscores a broader trend where macroeconomic factors and investor sentiments are reshaping deal-making strategies within the industry. The subdued activity suggests that dealmakers are becoming increasingly cautious, likely due to macroeconomic challenges and volatile market conditions,” said Aurojyoti Bose, lead analyst at GlobalData. “The decline in venture financing and private equity deals, suggests a dent in investor sentiment, emphasizing a trend of reduced risk appetite.”
The Asia-Pacific region posted growth, with deal volume rising 11 percent in H1 2025, driven by increased activity in Japan and India. In contrast, Europe saw a 19 percent drop, the Middle East and Africa fell 39 percent and South and Central America declined 12 percent.
Among major markets, the US, China and Germany all recorded declines in deal announcements while the UK maintained deal volumes at similar levels to last year.
GlobalData notes that historical figures may change if additional deals from earlier months are disclosed later.
Last year saw a 12.6 percent decline, with a total of 347 mergers and acquisitions, private equity and venture financing deals reported in the global travel and tourism sector during the first half of 2024.