Marriott Lowers 2025 Revenue Forecast Amid Sluggish Travel Demand

URGENT UPDATE: Marriott International has just announced a significant cut to its 2025 revenue growth forecast, reflecting a concerning decline in travel demand across the United States. The hotel giant now expects room revenue growth of just 1.5% to 2.5%, a notable decrease from its previous estimate of 1.5% to 3.5%.

This news comes as American consumers tighten their belts amidst ongoing economic uncertainties, exacerbated by shifting trade policies under former U.S. President Donald Trump. As discretionary spending, particularly on travel, dwindles, Marriott faces challenges that could impact its bottom line.

The Bethesda, Maryland-based company reported that lower government spending, which accounted for approximately 4% of its U.S. and Canada room nights in 2024, has further contributed to this reduced outlook. As the economic landscape shifts, consumers are hesitant to spend, which poses a major concern for the hospitality industry.

Despite these challenges, Marriott did report a positive result for the latest quarter, with adjusted earnings per share reaching US$2.65, compared to US$2.50 during the same period last year. However, the overall sentiment in the market is cautious as the company navigates a potentially tumultuous economic environment.

“The decline in travel demand is a clear signal that consumers are prioritizing essential expenses over discretionary ones,” said an industry analyst.

As travel habits continue to evolve, Marriott’s revised forecast highlights the urgent need for adaptation in response to changing consumer behavior. Stakeholders will be closely monitoring future developments as the company seeks to stabilize its revenue streams.

What happens next is crucial. Analysts will be watching to see if Marriott can rebound and adjust its strategies to attract travelers back to their hotels as economic conditions stabilize. The hotel operator’s performance in the upcoming quarters will be telling, especially as competition intensifies in a recovering market.

Stay tuned for more updates on this developing story as the implications of Marriott’s revenue forecast ripple through the travel and hospitality sectors.