(Reuters) -Hotel operator Marriott International cut its full-year forecast for revenue growth and profit on Tuesday, signaling slow travel demand in the United States amid looming economic uncertainties.
American consumers have been cutting back on discretionary expenses, including travel, after U.S. President Donald Trump's shifting tariff policies and the resulting trade war sparked fears of a recession.
Total second-quarter room revenue in the U.S. and Canada was flat compared with the year earlier,
as the impact from the travel slowdown was offset by strength in the company's upscale properties in the region.
Marriott's upscale segments, which include brands such as the Ritz-Carlton and Sheraton, cater to more economically resilient customers, helping to cushion the impact of slowing demand in its budget and select-service offerings.
Room revenue in its U.S. and Canada luxury segment grew 4.1% during the quarter, while that decreased 1.5% at select-services properties.
The Bethesda, Maryland-based company expects 2025 room revenue growth of 1.5% to 2.5%, with the midpoint below its previous forecast of 1.5% to 3.5% increase.
It expects 2025 adjusted profit to be between $9.85 and $10.08 per share, with the midpoint also below its earlier projection of $9.82 to $10.19 per share.
Excluding items, per-share profit for the quarter came in at $2.65, while analysts estimated $2.62, according to data compiled by LSEG.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Shilpi Majumdar)
