Marriott International, Inc. (MAR): Business Model Canvas [Dec-2025 Updated]

As a financial analyst who spent a decade leading teams at BlackRock, I can tell you that understanding the true engine of Marriott International, Inc. means ignoring the lobbies and focusing on the balance sheet-specifically, its powerful, asset-light strategy. This model is designed to generate high-margin, predictable fee revenue, which is why they are guiding for full-year 2025 fee revenue between $5.395 billion and $5.415 billion while simultaneously driving net rooms growth toward 4.5% for the year. Honestly, it's impressive how they manage this growth engine while carrying $15.7 billion in total debt as of Q2 2025, all while leveraging the massive stickiness of their over 228 million Bonvoy members. You need to see the full breakdown of the nine building blocks below to grasp exactly how they convert brand equity and digital engagement into shareholder returns.

Marriott International, Inc. (MAR) - Canvas Business Model: Key Partnerships

The Key Partnerships block for Marriott International, Inc. (MAR) is crucial, as its asset-light model relies heavily on external capital, development expertise, and customer loyalty integration. These relationships drive scale and guest engagement across the nearly 237 million loyalty members as of the end of the first quarter of 2025.

Global hotel owners and franchisees

This segment represents the core of Marriott International, Inc.'s management and franchise fee revenue stream. The success of this partnership is reflected in the fees generated; for instance, base management and franchise fees totaled $1,071 million in the 2025 first quarter alone. Growth in this partnership is measured by room additions, with Marriott adding roughly 17,900 net rooms in the third quarter of 2025. The overall development pipeline, representing future commitments from these partners, stood at approximately 3,900 properties with more than 590,000 rooms at the end of the second quarter of 2025.

The financial structure supporting these owners and the overall enterprise is significant:

Co-branded credit card issuers like American Express

The relationship with co-brand credit card issuers, such as American Express, is vital for driving high-value points accrual and customer spend capture. For example, the enhanced Marriott Bonvoy American Express cards in Japan detail specific spending thresholds tied to benefits:

• Marriott Bonvoy American Express Premium Card: Upgrade to Platinum Elite status upon spending JPY 5 million annually.
• Marriott Bonvoy American Express Premium Card: Free Night Award upon spending over JPY 4 million annually.
• Marriott Bonvoy American Express Card: Upgrade to Gold status upon spending JPY 1 million annually.
• Marriott Bonvoy Business American Express Card: Earn 6X points per dollar spent at participating hotels.

These cards offer direct pathways to elite status and points multipliers, directly feeding the Bonvoy ecosystem.

Strategic acquisitions like the citizenM lifestyle brand in 2025

The acquisition of the citizenM brand in April 2025 solidifies a key strategic partnership with its former ownership group, now operating as Another Star. Marriott International, Inc. agreed to pay $355 million for the brand and intellectual property. This transaction immediately adds 36 open hotels, comprising 8,544 rooms, plus 3 pipeline properties totaling over 600 rooms expected to open by mid-2026. The expected stabilized fees from this portfolio are approximately $30 million annually, with potential earnout payments up to $110 million based on future growth.

Real estate developers for new brand concepts like StudioRes

Developing new concepts like StudioRes, an extended stay midscale brand, requires deep collaboration with real estate developers who own the underlying assets. By the close of 2024, the StudioRes pipeline already included 35 properties, totaling 4,037 rooms, with the first opening anticipated in 2025. This brand expansion is part of Marriott International, Inc.'s broader development strategy, which saw a record 608 deals signed in the U.S. and Canada in 2024.

Airline and travel partners for Bonvoy point redemption

The flexibility of the Marriott Bonvoy program is enhanced by its extensive airline transfer network, which is a critical partnership for high-value redemptions. Marriott International, Inc. partners with 37 airlines, more than any other transferable points program.

The standard conversion structure is as follows:

• Standard Transfer Ratio: 3 Marriott Bonvoy points to 1 airline mile.
• Standard Bonus Structure: Transferring 60,000 points yields 25,000 miles (a 3:1.25 ratio) for most partners, due to a 5,000 mile bonus.
• Preferred Partner: United MileagePlus converts at a 2:1 ratio (60,000 points = 30,000 miles) due to a 10,000 mile bonus.
• Exceptions to Bonus: American AAdvantage, Avianca LifeMiles, and Delta SkyMiles do not receive the 5,000 mile bonus; they remain a strict 3:1 ratio.
• Maximum Daily Transfer: 240,000 Marriott Bonvoy points.

Furthermore, the partnership with Aeroplan allows for two-way transfers, including the ability for Aeroplan Elite Status Members to convert points to Marriott Bonvoy points at a 1:1 ratio.

Finance: draft 13-week cash view by Friday

Marriott International, Inc. (MAR) - Canvas Business Model: Key Activities

You're looking at the core engine of Marriott International, Inc. as of late 2025. The key activities are all about scale, brand differentiation, and monetizing the massive customer base you've built. It's a complex operation, but the numbers tell a clear story about where the focus is right now.

Brand management across 30+ distinct hotel brands

Managing a portfolio this large requires relentless focus on keeping each brand distinct, which is a major activity. As of Q3 2025, the global system stood at over 9,700 properties, housing approximately 1,754,000 rooms across the network. This scale is what allows Marriott International, Inc. to claim over 37 hotel and timeshare brands, with the prompt focusing on the 30+ distinct hotel brands that cater to every travel need. The sheer volume of brands means the activity isn't just maintenance; it's about ensuring brand integrity across different segments, from luxury to extended stay.

Here's a quick look at the scale of the managed portfolio as of late 2025, reflecting the operational footprint:

It's a massive undertaking to keep the brand promise consistent across all those locations. If onboarding takes 14+ days, churn risk rises, and that applies to ensuring new properties meet brand standards, too.

Operating the Marriott Bonvoy loyalty platform

The Marriott Bonvoy loyalty platform is central to driving direct bookings and customer stickiness. This activity is about managing the ecosystem for its massive membership base. As of early 2025 reports, Marriott Bonvoy leads the sector with 228 million members. This scale is critical because loyalty members booked 62% of room nights across Marriott and Hilton combined, and they contribute between 30% and 60% of room revenue for the company. The economics of the program are also significant; loyalty revenues grew 8.3% to $1.2 billion in a recent period, though liabilities also rose 8.4% to $2.4 billion.

The platform's operational metrics show its importance:

Loyal customers spend 22.4% more than sporadic customers and stay 28% longer, so operating this platform defintely drives higher lifetime value per guest.

Global development and net rooms growth of 4.5% in 2025

A primary key activity is driving net room growth through development, franchising, and conversions. For the full year 2025, Marriott International, Inc. projected global net rooms growth to approach 5%, with a specific expectation of 4.5% net rooms growth. This growth is supported by a massive pipeline; as of August 2025, the development pipeline included 3,858 properties and more than 590,000 rooms. During Q3 2025 alone, the company added roughly 17,900 net rooms, resulting in a 4.7% net rooms growth year-over-year for the quarter.

• Projected Full Year 2025 Net Rooms Growth: 4.5%
• Net Rooms Added in Q3 2025: Roughly 17,900
• Global Development Pipeline Rooms: Over 590,000
• Pipeline Properties Under Construction/Conversion: 1,447

Digital platform innovation and data monetization (Marriott Media)

Marriott International, Inc. is actively innovating its digital presence to create new revenue streams. A key move in this area was the introduction of Marriott Media on June 12, 2025. This new digital media network is designed to leverage the company's vast customer data and property network to offer personalized content and curated brand experiences. This initiative is a strategic diversification of revenue, aiming to monetize the audience beyond traditional room night transactions through advertising and partnerships. The company's Q1 2025 Revenue Growth was estimated at +8.00% year-over-year, reflecting momentum in its core business while building out these new digital assets.

Negotiating corporate and group travel contracts

Securing large-scale corporate and group bookings is a foundational activity that smooths out demand volatility. This involves continuous negotiation across global accounts. As of August 2025, group revenues for the subsequent year, 2026, were pacing up 8% compared to the pace seen in the prior quarter. This forward-looking booking pace is a direct result of successful contract negotiation activity. For context, business transient stays represented 33% of Marriott's global room nights in the fourth quarter of 2024, highlighting the segment's importance.

Marriott International, Inc. (MAR) - Canvas Business Model: Key Resources

You're looking at the core assets that make Marriott International, Inc. a powerhouse in the hospitality space as of late 2025. These aren't just line items on a balance sheet; they are the engines driving their asset-light growth strategy.

The Marriott Bonvoy loyalty program is definitely a massive resource. It creates a powerful, self-reinforcing loop. As of the end of June 2025, membership reached nearly 248 million members. This scale is critical because it drives high-value guests to book through Marriott's lowest-cost channels. For instance, Marriott noted in July 2025 that the program penetration reached a record 68% of room nights globally.

Next up is the sheer physical footprint. Marriott International's global system size continues to expand rapidly. At the end of the second quarter of 2025, the system totaled over 9,600 properties, encompassing approximately 1.736 million rooms. This physical scale is supported by a robust development pipeline, which stood at a record of more than 590,000 rooms at the end of Q2 2025. That's a lot of real estate under the banner.

The value of the brands themselves-the intellectual property and brand equity-is immense. Marriott International operates a diverse portfolio, which as of early 2025 included roughly 30 brands, with plans to launch its 32nd brand. This brand strength underpins their asset-light model, where managed and franchised properties represented 98% of total rooms as of the end of 2024. The company generated a consolidated operating income of $1,180 million for the nine months ended September 30, 2025.

Technology is another key pillar, though the term proprietary is becoming less accurate. Marriott International is actively modernizing its core infrastructure. They have an agreement to deploy the Amadeus Central Reservations System (ACRS) to ultimately replace their proprietary reservations system over the coming years. This transition aims to increase operational efficiency and reduce IT complexity. The pipeline growth reflects this focus, with properties 'in the process of converting to our system' as of Q2 2025.

Finally, the teams running the show are a critical, though less quantifiable, asset. You see their effectiveness in the financial results. For the second quarter of 2025, Adjusted EBITDA totaled $1,415 million. Management's execution on capital allocation is clear: year-to-date through July 30, 2025, they had returned approximately $2.1 billion to shareholders, tracking toward a full-year return target of approximately $4 billion for 2025. The expert sales teams drive this performance by securing deals internationally, where over 70% of room signings in the first half of 2025 were located.

Here's a quick look at the scale of the physical system as of mid-2025:

• Global System Properties (Q2 2025): Over 9,600
• Global System Rooms (Q2 2025): Approximately 1.736 million
• Development Pipeline Rooms: Over 590,000
• Managed/Franchised Rooms (End of 2024): 98% of total rooms

And here's how the loyalty program's scale translates:

Finance: draft Q4 2025 cash flow forecast by January 15, 2026.

Marriott International, Inc. (MAR) - Canvas Business Model: Value Propositions

Unrivaled global network and brand variety for guests

Marriott International, Inc. encompasses a portfolio of nearly 9,100 properties across more than 30 leading brands in 142 countries and territories as of late 2025. The Luxury Group alone offers a network of more than 550 landmark hotels and resorts in over 70 countries and territories.

Asset-light model offering high-margin fees to shareholders

The business model emphasizes fee generation over asset ownership, supporting significant shareholder returns. Base management and franchise fees totaled $1,190 million in the 2025 third quarter. For the full fiscal year 2025, the projection for gross fee revenues is between $5.365 billion and $5.475 billion. The company continues to expect to return approximately $4.0 billion to shareholders in 2025 through share repurchases and dividends. Franchise fees grew 7% in the first half of 2025, while incentive management fees showed 0% growth over the same period.

Experiential luxury travel and wellness offerings (e.g., JW Marriott Crete)

The Luxury Group is focusing on experiences that deliver long-term emotional resonance. Over 260 luxury hotels and resorts across Marriott's luxury portfolio are in the global development pipeline, with over 30 properties expected to open in 2025. The JW Marriott brand is slated to open new properties in 2025, including the JW Marriott Crete Resort & Spa. The company currently holds a 16.9% global market share of luxury hotels, leading competitors like Hyatt at 11.4%.

Strong, consistent customer flow for hotel owners via Bonvoy

Marriott Bonvoy is positioned as the largest hotel loyalty program, with nearly 240 million members globally as of mid-2025, and another report citing 248 million members. Loyalty members booked 62% of Marriott and Hilton room nights. Members contribute between 30% and 60% of room revenue for participating hotels. The program base grew to nearly 237 million members by the end of March 2025.

• Marriott Bonvoy Members (Late 2025 Estimate): 248 million
• Marriott Bonvoy Members (March 2025): Nearly 237 million
• Loyalty Member Contribution to Room Revenue: 30% to 60%
• Room Nights Booked by Loyalty Members (Marriott & Hilton): 62%

Technology-driven, seamless booking and in-stay experience

The Marriott Bonvoy travel platform underpins the digital experience. The program offers flexible points redemption and elite perks, which are accessible through mobile app functionalities. The program includes co-branded credit cards that allow earning points through everyday purchases.

Marriott International, Inc. (MAR) - Canvas Business Model: Customer Relationships

You're looking at how Marriott International, Inc. (MAR) manages its vast customer base, which is anchored by the Marriott Bonvoy loyalty program. This relationship strategy is about scale and precision, moving from high-touch service for the very best customers to efficient digital interactions for the majority.

Dedicated Ambassador Elite service for top-tier members

Marriott International, Inc. focuses heavily on retaining its most valuable guests through elite tiers. The entire Marriott Bonvoy platform boasts nearly 248 million members as of the end of the second quarter of 2025, up from nearly 237 million members at the end of the first quarter of 2025. This scale requires tiered service, where the highest tiers receive dedicated attention. The overall success of this relationship strategy is reflected in the company's Net Promoter Score (NPS) of 51, which is well above the hospitality industry average of 44. This score is built on a base where 60% of guests are Promoters and only 9% are Detractors. The goal is to keep that top segment highly engaged.

Automated, personalized communication via the Bonvoy app

Personalization at scale is heavily reliant on technology. Marriott International, Inc. uses AI-driven chatbots to manage over 60% of customer interactions, which significantly cuts down on response times. The Bonvoy app is central to this, enabling mobile bookings, digital room keys, and mobile concierge services, meeting the expectation that 74% of guests prefer hotels offering digital self-service options.

Long-term, high-touch relationships with hotel owners/franchisees

The relationship with hotel owners and franchisees is a core component of Marriott International, Inc.'s asset-light model. This partnership focus drives significant expansion. In 2024, the company signed a record of over 1,200 deals with owners, franchisees, and developers, representing nearly 162,000 rooms globally. Furthermore, the company emphasizes support for these partners, focusing on technology integration to ensure long-term success across the portfolio. Conversions, which rely on strong owner relationships to rebrand existing properties, made up 34% of 2024 room signings.

Global Sales Organization for large corporate and group bookings

For the critical corporate segment, Marriott International, Inc. has introduced the Business Access by Marriott Bonvoy platform. This is designed to streamline travel management for small to medium-sized businesses. This initiative directly addresses a major pain point, as a recent survey showed that 75% of business travelers are frustrated with their current travel booking platforms. The platform offers features like custom travel policies and access to exclusive discounted rates.

Self-service digital tools for reservations and check-in

Digital convenience is now a baseline expectation. The adoption of self-service technology is high, with self-service kiosks reportedly cutting check-in times by 70%. Guests are increasingly using mobile functionality; for instance, Marriott's mobile app saw a 40% increase in contactless payment usage post-pandemic (based on 2023 data). The company is also prioritizing about 10 high-value generative AI use cases in 2025 to further modernize its operations and guest experience.

Here are some key metrics underpinning the scale of these customer relationships as of mid-2025:

The focus on digital engagement is clear; 86% of guests appreciate AI-based personalization during their stay. Also, the company's development pipeline at the end of Q2 2025 totaled 3,858 properties and more than 590,000 rooms, all of which depend on strong owner relationships for future growth.

Marriott International, Inc. (MAR) - Canvas Business Model: Channels

You're looking at how Marriott International, Inc. gets its rooms in front of customers, which is a mix of high-tech direct engagement and traditional partnerships. The distribution strategy is all about driving guests to the most profitable channels, which, for Marriott International, Inc., means pushing the Marriott Bonvoy ecosystem hard.

Direct booking via Marriott.com and the Bonvoy mobile app

The digital direct channel is the core of Marriott International, Inc.'s distribution efficiency. The company has been highly successful in migrating members to its proprietary platforms. By the end of the third quarter of 2025, the Marriott Bonvoy loyalty program boasted nearly 260 million total global members. This deep loyalty base translates directly into channel preference; member penetration stood strong at 75 percent in the U.S. & Canada and 68 percent globally as of the third quarter of 2025. Historically, this direct share of total room nights reached 76.3 percent in the fourth quarter of 2021, showing a significant, long-term commitment to this channel, partly driven by guests moving from voice to digital bookings. The company has stated that direct bookings are more profitable than Online Travel Agency (OTA) bookings, even on the first transaction when using a member rate.

Global Sales Organization and corporate negotiated channels

This channel captures high-value, high-volume business travel and group bookings. For 2025, Marriott International, Inc. was targeting corporate negotiated rate increases in the 'mid-single-digit' percentages year-over-year. Business transient travel, which flows heavily through these negotiated channels, represented 33 percent of global room nights in the fourth quarter of 2024. The Global Sales Organization works to secure these large corporate contracts, which provide more predictable revenue streams compared to transient leisure demand.

Third-party Online Travel Agencies (OTAs)

While Marriott International, Inc. prioritizes direct bookings, OTAs remain a necessary component for broad market reach and capturing incremental demand. The cost of using these intermediaries is significant, with typical commission fees ranging from 15 to 30 percent per booking. Historically, OTA share of room nights was reported at 14 percent in 2021. The company's strategy involves leveraging OTA visibility to acquire new customers, with the goal of converting them into Bonvoy members who will then book directly on subsequent stays.

Traditional travel agents and wholesalers

This segment includes bookings made through Global Distribution Systems (GDS) and traditional travel advisors. While the search results don't provide a specific 2025 revenue contribution, historical data from late 2021 showed that GDS bookings had seen their percentage share drop by 600 basis points compared to 2019 levels, reflecting a shift toward digital self-service. Wholesalers and traditional agents still play a role, particularly in certain international markets or for specific group blocks, but the trend is toward digital self-service and direct corporate channels.

Co-branded credit card marketing channels

The co-branded credit card portfolio is a powerful, high-margin channel that drives loyalty enrollment and engagement. Revenue derived from these partnerships is captured within Incentive Management Fees. For the third quarter of 2025, Incentive Management Fees related to these programs contributed $148 million. This figure followed $200 million in the second quarter of 2025 and $204 million in the first quarter of 2025, illustrating a consistent, material revenue stream from this channel.

Here's a snapshot of key metrics related to the channels and the Bonvoy platform as of late 2025:

The company's overall system size at the end of the third quarter of 2025 included a development pipeline of approximately 3,900 properties and over 596,000 rooms. This pipeline growth suggests future capacity to drive bookings across all these channels.

Marriott International, Inc. (MAR) - Canvas Business Model: Customer Segments

You're looking at the core groups Marriott International, Inc. serves as of late 2025, which directly dictates their asset-light, fee-based revenue model. The sheer scale of their global footprint is the foundation for serving these diverse needs.

As of the end of the third quarter of 2025, Marriott International's global system encompassed over 9,700 properties, totaling approximately 1,754,000 rooms. The loyalty engine driving engagement across these segments, Marriott Bonvoy, reached nearly 260 million members by the end of Q3 2025.

Global hotel owners and real estate investors (B2B)

This is the primary customer for Marriott International's management and franchise operations, the engine of the asset-light model. These partners are focused on maximizing returns on their real estate assets through brand affiliation.

For the second quarter of 2025, base management and franchise fees totaled $1,200 million, representing a nearly 5% increase year-over-year. Incentive management fees for that same quarter reached $200 million. To be specific about geographic focus for this segment, managed hotels in international markets contributed nearly two-thirds of the incentive fees earned in Q2 2025. The overall development pipeline at the end of Q2 2025 stood at a record of more than 590,000 rooms, signaling continued owner appetite for new properties.

High-frequency business transient travelers (large corporates)

These travelers, often under large corporate negotiated rates, are crucial for filling rooms during weekdays, though their demand has shown recent softness in certain key markets. In the U.S. & Canada during the second quarter of 2025, RevPAR was flat year-over-year, which the company attributed in part to weaker business transient demand. Historically, this B2B segment accounted for 34% of global room nights in Q1 2024, giving you a sense of its past weight. Group travel, a related corporate/group demand driver, had projected global revenue increases of 6% for the full year 2025.

Affluent leisure and experiential travelers (Luxury Group focus)

This group drives premium rates and is less sensitive to short-term economic fluctuations, supporting the high-end brands like Ritz-Carlton and St. Regis. The strength of this segment is clear in performance metrics. For the third quarter of 2025, Marriott's luxury segment RevPAR rose 4% globally. The luxury tier makes up 10% of the company's worldwide rooms, with the upper upscale tier adding another 42%. This segment's performance is a key reason Marriott International expects full-year 2025 comparable systemwide RevPAR growth to land between 1.5% to 2.5%.

Small-to-medium enterprise (SME) business travelers

SME travelers often fall into the Select Service or Upscale categories, seeking reliable, standardized experiences for shorter trips. The performance here is mixed; while the luxury segment saw growth, the Select Service properties in the U.S. & Canada experienced a RevPAR decline of 1.5% in Q2 2025. This suggests that while large corporates might be pulling back slightly, the smaller business segment is feeling more pressure from cost-conscious decision-making. Conversions remain a key growth driver, representing approximately 30% of room signings and openings in the first half of 2025.

Value-conscious extended-stay guests (StudioRes segment)

Marriott International, Inc. specifically created the StudioRes brand for the U.S. and Canada to capture this market, focusing on affordable, longer-term stays, often for two to three weeks. This is a new-build, midscale, extended-stay platform designed with a cost-effective operating model and limited amenities to keep prices down. The company planned to break ground on the first few StudioRes locations in Florida, Georgia, and South Carolina by the end of 2024, with the first Canada location likely in the first quarter of 2025.

Here's a quick look at how some key metrics relate to these customer groups:

The overall system growth expectation for 2025 is net rooms growth approaching 5%. This growth is a direct result of successfully attracting and signing deals with the global hotel owners segment across all brand tiers.

• Marriott Bonvoy membership reached nearly 260 million as of Q3 2025.
• Luxury segment rooms represent 10% of the global room base.
• International markets drove over 5.3% RevPAR growth in Q2 2025.
• Conversions accounted for approximately 30% of room signings in H1 2025.
• The total development pipeline at Q2 2025 end was over 590,000 rooms.

Marriott International, Inc. (MAR) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Marriott International, Inc.'s operational expenses as of late 2025, based on their Q2 2025 filings and outlook. This is where the cash goes before we even talk about growth.

Reimbursed expenses are a major flow, but they are largely a pass-through item. Marriott incurs costs for centralized programs and property-level operating expenses that they run for hotel owners, and these are then offset by corresponding revenue. The financial reporting treats these items-both the revenue and the expenses-as excluded from the adjusted performance metrics, which is key to understanding the core operating costs.

General and administrative (G&A) expenses, which cover corporate overhead, are showing a trend toward efficiency. For the second quarter of 2025, General, administrative, and other expenses totaled $245 million, down from $248 million in the year-ago quarter, largely reflecting lower compensation costs. Looking ahead, Marriott International, Inc. still anticipates the full-year 2025 G&A expense to decline between 8 to 10 percent, landing in the range of $965 to $985 million. This expected decline reflects an initiative to find $80 to $90 million in above-property savings across the enterprise.

The investment in technology and digital platform development remains substantial, reflecting a multi-year push to modernize. Marriott International, Inc. expected about $1.1 billion in total investment spending for fiscal year 2025, with over half of that dedicated to the transformation of property management, reservations, and loyalty systems. It's important to note that the company expects the vast majority of this technology spend will be reimbursed over time.

For marketing and loyalty program operating costs, we look at the scale of Marriott Bonvoy. While specific 2025 operating costs aren't detailed here, the scale is massive. Loyalty liabilities for the entire program stood at $2.4 billion at the end of 2024, with loyalty revenues at $1.2 billion. The cost per occupied room (CPOR) related to loyalty programs averaged $5.46 in 2024, representing about 1.6% of total hotel revenue. The program had over 219 million members as of September 2024.

Financing costs are directly tied to the balance sheet structure. At the end of the second quarter of 2025, Marriott International, Inc.'s total debt was $15.7 billion. The resulting interest expense, net, for that quarter alone was $191 million, up from $164 million in the year-ago quarter, largely due to those higher debt balances.

Here's a quick look at some of these key cost and balance sheet figures from the Q2 2025 period:

You should keep an eye on the G&A savings target; hitting that $80 to $90 million efficiency goal is central to their 2025 operating leverage story. Also, remember that the technology spend is a capital outlay now, but the expectation of reimbursement reduces the net impact over time.

• Base management and franchise fees for Q2 2025 were $1,200 million.
• Incentive management fees for Q2 2025 were $200 million.
• Owned, leased, and other revenue, net of direct expenses, was $113 million in Q2 2025.
• Marriott Bonvoy members totaled over 219 million as of September 2024.

Finance: draft 13-week cash view by Friday.

Marriott International, Inc. (MAR) - Canvas Business Model: Revenue Streams

You're looking at how Marriott International, Inc. actually books its money, which is key to understanding its asset-light model. The revenue streams are heavily weighted toward fees rather than direct hotel operations, which is by design.

Base management and franchise fees form the bedrock of the fee revenue. These are tied to property revenues, so as rooms grow and RevPAR (Revenue Per Available Room) increases, these fees follow. For the first quarter of 2025, base management fees hit \$325 million, and franchise fees were \$746 million, totaling \$1,071 million for the quarter, which was a 7 percent increase year-over-year. By the second quarter of 2025, this combined stream grew to \$1,200 million.

Incentive management fees (IMFs) are performance-based, tied directly to hotel profitability after a hurdle rate is met. This makes them a sensitive indicator of property-level financial health. In Q1 2025, IMFs were \$204 million, but they dipped slightly in Q2 2025 to \$200 million, and further to \$148 million in Q3 2025, primarily reflecting softer results in the U.S. & Canada. To be fair, managed hotels in international markets contributed roughly three-quarters of the incentive fees earned in Q3 2025, showing where the profit momentum was strongest that quarter.

Co-branded credit card fees are a significant, steady component monetizing the Marriott Bonvoy loyalty program. These fees are explicitly called out as a key contributor to the growth in base management and franchise fees in Q2 and Q3 2025. While a standalone dollar figure for the co-branded fees isn't always broken out, they are bundled within the franchise fees line item.

Owned, leased, and other revenue, net of direct expenses, represents the smaller, more direct operational slice of the business. This stream is less predictable due to property transactions. In Q3 2025, this segment brought in \$94 million net, up from \$81 million in Q3 2024, largely because of the addition of the Sheraton Grand Chicago to the owned portfolio in the prior year's fourth quarter. Here's the quick math on the key quarterly revenue components:

The overall expectation for the fee-based business is captured in the full-year guidance. Marriott International, Inc. narrowed its full-year 2025 gross fee revenue guidance to a range of \$5.395 billion to \$5.415 billion. This guidance was updated following the third quarter results, reflecting the current operating environment and the termination of the licensing agreement with Sonder.

The revenue streams are clearly segmented by the nature of the relationship with the hotel owner:

• Base fees tied to gross revenue, providing stability.
• Incentive fees tied to profit, providing upside potential.
• Loyalty program monetization via co-branded cards.
• Direct revenue from a small, strategic portfolio of owned/leased assets.

The company is focused on growing the asset-light segments, as evidenced by the record development pipeline of approximately 3,900 properties and over 596,000 rooms globally at the end of Q3 2025, which will feed future fee revenue growth. Finance: draft 13-week cash view by Friday.