Marriott International: An In-Depth Look at the Hospitality Giant’s Performance
With a market cap of $81.1 billion, Marriott International, Inc. (MAR), headquartered in Bethesda, Maryland, is a major player in the hospitality industry. The company operates, franchises, and licenses a vast range of hotels, residences, and timeshare properties across several markets.
Marriott’s Standout Position in the Market
Companies valued at $10 billion or higher are categorized as “large-cap,” and Marriott fits this definition well, significantly surpassing that value. Its distinct brands include JW Marriott, The Ritz-Carlton, Sheraton, W Hotels, and Marriott Bonvoy, contributing to diverse lodging options internationally, including in the U.S. and Canada.
Stock Performance: A Closer Look
Recently, the hotel’s stock price experienced a slight dip from its 52-week high of $295.45. Over the past three months, shares of MAR have risen by 27.2%, significantly outperforming the S&P 500 Index’s ($SPX) 8.5% increase in the same timeframe.
Looking at longer-term trends, shares of Marriott International are up 30.2% year-to-date, which outpaces SPX’s 27.3% rise. In the past 52 weeks, MAR has improved by 35.3%, while SPX saw a 30.8% return.
Recent Earnings and Market Impact
Despite positive trends, MAR’s stock dropped 1.6% on November 4 following disappointing Q3 results. The adjusted EPS was $2.26, with revenues at $6.3 billion. Additionally, the company adjusted its 2024 guidance for adjusted EPS to between $9.19 and $9.27 and reduced gross fee revenue expectations to $5.1 billion to $5.2 billion, which was below previous estimates of up to $5.18 billion. These revisions raised concerns among investors, overshadowing expanding operational metrics like rising RevPAR.
Comparative Performance and Analyst Sentiment
While Marriott has shown strength, its competitor, Airbnb, Inc. (ABNB), has struggled, with a 1.8% drop over the past year and a modest 1.4% gain year-to-date, trailing MAR’s performance.
Analysts remain cautiously optimistic about MAR’s future, with a consensus rating of “Moderate Buy” from 23 analysts. The stock currently trades above the mean price target of $276.85.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
