Marriott International has become the latest major travel brand to downgrade its full-year revenue outlook, citing slowing global travel demand and growing economic uncertainty fuelled by President Trump’s trade policies.
The group behind the Ritz-Carlton, Westin, and Grosvenor House London hotels now expects revenue per available room (revpar) to rise between 1.5% and 3.5% in 2025 — down from an earlier forecast of 2% to 4%.
The cautious outlook comes despite a 4.1% increase in global revpar in the first quarter, with US and Canada revpar up 3.3%. However, Marriott said it saw slower growth in March, a trend echoed across the industry.
“Despite uncertainty about the macroeconomic outlook, we’re positioned for sustainable, long-term growth,” said Anthony Capuano, Marriott’s president and CEO. He added that Marriott had signed a record 34,000 rooms in the quarter, two-thirds of which were outside the US.
The Bethesda, Maryland-based group, which operates nearly 9,500 hotels across 144 countries, posted quarterly revenues of $6.26 billion, beating analyst expectations and up from $5.97 billion a year earlier. The company expects net room growth of around 5% this year, assuming the $355 million acquisition of Citizen M completes as planned.
Marriott shares rose 1.8% to $251.72 in morning trading on Wall Street following the earnings release.
Marriott’s revised guidance follows similar caution from rivals. Hilton slashed its own 2025 revpar forecast last week, saying travellers were adopting a “wait-and-see” approach amid growing economic headwinds.
Airbnb also disappointed markets, warning of weaker-than-expected second-quarter revenues as guests book trips closer to check-in and reduce travel budgets. Meanwhile, Southwest, American Airlines, and Delta have all withdrawn earnings guidance in recent weeks, with Delta noting that travel demand has “largely stalled.”
Industry analysts point to the sharp fragmentation of global trade and rising geopolitical tensions — notably Trump’s escalating tariff regime, which includes a 10% blanket import tariff and targeted duties on travel-related goods such as aircraft components, hotel furnishings, and electronics.
“The travel sector is incredibly sensitive to shifts in economic sentiment,” one analyst noted. “Tariffs and trade uncertainty make it harder for businesses to plan and consumers to commit.”
While the pandemic recovery initially fuelled a travel boom, businesses and leisure travellers are now becoming more cautious, especially in international markets where Trump’s tariffs are disrupting supply chains and trade.
Marriott’s planned acquisition of Citizen M, a Dutch hotel chain aimed at the “affordable luxury” segment, reflects the company’s ongoing shift to tap urban millennial travellers and expand beyond North America. It’s also a move to capture demand in high-density international cities, even as macro conditions worsen.
Despite the headwinds, Marriott and its rivals remain committed to long-term growth, banking on brand strength, loyalty programmes, and market diversification to ride out a potentially volatile year for global travel.
With both corporate and consumer confidence faltering, however, 2025 is shaping up to be a year of strategic caution rather than expansion — even for hospitality giants.