Analyst Stephen Grambling of Morgan Stanley maintained a Buy rating on Marriott International (MAR – Research Report), retaining the price target of $267.00.
Stephen Grambling has given his Buy rating due to a combination of factors that highlight Marriott International’s strategic growth initiatives. The acquisition of the citizenM brand is a key driver, as it enhances Marriott’s presence in the select-service, lifestyle segment with an addition of 36 hotels and over 8,500 rooms across the US, Europe, and APAC. This acquisition not only expands Marriott’s portfolio but also aligns with its asset-light strategy, providing a pathway for future growth in new markets and strengthening its loyalty program.
Furthermore, the financial metrics of the acquisition are favorable, with Marriott expecting $30 million in annual stabilized fees and a potential earn-out of up to $110 million based on citizenM’s future growth. The expected net rooms growth of approximately 5% by 2025, assuming the transaction closes this year, signals a positive outlook for Marriott’s expansion efforts. These factors, combined with the robust development activity reported earlier, support Grambling’s optimistic view on Marriott’s stock performance.
According to TipRanks, Grambling is a 4-star analyst with an average return of 3.7% and a 54.43% success rate. Grambling covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, Marriott International, and Las Vegas Sands.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $328.00 price target.