Marriott International Inc (NASDAQ:MAR) stock fell 0.25% (As on February 12, 11:27:11 AM UTC-4, Source: Google Finance) after the company’s guidance for net rooms growth in 2025 proved softer than some analysts expected. Marriott has been using acquisitions and licensing deals to expand its hotel network during a period when high interest rates and construction costs have slowed new hotel development. In 2024, the company increased its room count by 123,000 units on a gross basis, bringing its total to 1.7 million rooms globally. Travel demand has normalized after the pandemic. Revenue per available room, a key industry metric, increased 5% in the fourth quarter from a year earlier, with that measure rising 4.1% for Marriott’s US and Canadian hotels. International RevPAR increased by more than 7 percent, with APEC and EMEA leading the way and benefiting from strong leisure demand. RevPAR in the U.S. & Canada rose more than 4 percent, the region’s highest RevPAR increase of the year, with all customer segments growing versus the prior-year quarter.

Moreover, Base management and franchise fees totaled $1,128 million in the 2024 fourth quarter, a 10 percent increase compared to base management and franchise fees of $1,026 million in the year-ago quarter. The increase is primarily attributable to RevPAR increases and unit growth, as well as higher residential and co-branded credit card fees. Incentive management fees totaled $206 million in the 2024 fourth quarter, compared to $218 million in the 2023 fourth quarter, with growth in APEC offset by declines in U.S. & Canada and Greater China. Owned, leased, and other revenue, net of direct expenses, totaled $100 million in the 2024 fourth quarter, compared to $151 million in the 2023 fourth quarter. The decrease was primarily driven by a $63 million termination fee related to a development project in the year-ago quarter.

MAR in the fourth quarter of FY 24 has reported the adjusted earnings per share of $2.45, beating the analysts’ estimates for the adjusted earnings per share of $2.38, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $6.43 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue by 0.46%.

The company is forecasting net rooms growth of 4% to 5% this year, below the 6.8% growth notched in 2024. For 2025, Marriott is projecting adjusted earnings per share to be in the range of $9.82 to $10.19. It expects revenue per available room to climb in the range of 2% to 4%.