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With a market cap of $68.4 billion, Marriott International, Inc. (MAR) is a global leader in operating, franchising, and licensing a diverse portfolio of lodging properties across various brands based in Bethesda, Maryland. It serves both leisure and business travelers worldwide through its extensive network of hotels, residences, and vacation ownership resorts.
Companies valued at $10 billion or more are generally considered “large-cap” stocks and Marriott International fits this criterion perfectly. With an impressive global footprint spanning 8,785 locations and 1,597,380 rooms, Marriott boasts a diverse portfolio featuring more than 30 esteemed hotel and timeshare brands. This expansive reach solidifies Marriott's position as a global leader in hospitality, catering to diverse traveler preferences worldwide.
However, the company pulled back 8.5% from its 52-week high of $260.57, achieved in April. Shares of Marriott International have declined 2.4% over the past three months, lagging behind the broader S&P 500 Cons Disc Sector SPDR’s (XLY) marginal dip over the same time frame.
Nevertheless, longer term, MAR stock is up 5.7% on a YTD basis, overshadowing XLY’s marginal loss. Moreover, shares of Marriott International have gained nearly 35.1% over the past 52 weeks, compared to XLY’s 7.3% gains over the same time frame.
MAR stock has been trading above its 200-day moving average since June last year and remained mostly above its 50-day moving average during this period despite some fluctuations, indicating a bullish price trend.
MAR’s outperformance over the past year is primarily due to strong growth in global Revenue per Available Room (RevPAR), successful digital transformation initiatives enhancing operational efficiency and customer engagement, and aggressive expansion efforts globally, particularly in midscale brands and international markets. However, despite an optimistic outlook for increased international and group travel demand, the company’s mixed Q1 earnings results revealed on May 1, failed to excite investors with shares remaining nearly flat post-announcement.
Moreover, its rival Hilton Worldwide Holdings Inc. (HLT) is outperforming – not just MAR but the broader equity benchmark. Shares of HLT have gained 49.2% over the past 52 weeks and 15.4% on a YTD basis.
Despite the MAR’s relatively strong price action over the past year, analysts are cautious about its prospects. The stock has a consensus rating of “Hold” from the 21 analysts covering the stock, and the mean price target of $245.97 suggests a premium of just 2.7% to current levels.
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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
