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Marriott International (MAR)
:MAR
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Marriott International
(NASDAQ:MAR)
69Neutral
Positive Factors
Acquisition
The acquisition of citizenM offers exposure to multiple markets and faster growth opportunities in a challenging development environment.
Financial Performance
Marriott reported 1Q25 EBITDA of $1,217M, ahead of expectations and company outlook, largely on RevPAR/core fees coming in ahead of expectation.
International Performance
International RevPAR is expected to outpace the US for the year, suggesting stronger performance internationally.
Negative Factors
Guidance Downgrade
FY RevPAR guidance was downgraded from 2-4% to 1.5-3.5%, indicating lower expected growth.
Q2 Guidance
The only slight disappointment is a soft Q2 guide, with EBITDA 2% behind the street.
US/Canada Demand
U.S./Canada demand softened, largely related to weakness in government and select-service.
Marriott International (MAR) vs. S&P 500 (SPY)
Market Cap
$74.83B
Dividend Yield0.92%
Average Volume (3M)2.13M
Price to Earnings (P/E)31.1
Beta (1Y)1.07
Revenue Growth5.45%
EPS Growth-9.50%
CountryUS
Employees418,000
SectorConsumer Cyclical
Sector Strength75
IndustryTravel Lodging
Share Statistics
EPS (TTM)2.32
Shares Outstanding273,896,120
10 Day Avg. Volume1,725,112
30 Day Avg. Volume2,133,846
Financial Highlights & Ratios
PEG Ratio5.26
Price to Book (P/B)-22.66
Price to Sales (P/S)0.00
P/FCF Ratio38.38
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit15.93
Enterprise Value/Ebitda5.29
Forecast
1Y Price Target
$280.25Price Target Upside4.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
Marriott International Business Overview & Revenue Model
Company DescriptionMarriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through U.S. and Canada, and International segments. It operates its properties under the JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, Marriott Vacation Club, Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of February 15, 2022, it operated approximately 7,989 properties under 30 hotel brands in 139 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.
How the Company Makes MoneyMarriott International makes money primarily through its hotel operations, which include management fees, franchise fees, and property-level revenue. The company earns management fees by operating hotels on behalf of property owners, while franchise fees are collected from hotels that operate under one of Marriott's brands. Additionally, Marriott generates revenue from the sale of rooms, food and beverage services, and other hotel amenities. The company also benefits from its loyalty program, Marriott Bonvoy, which enhances customer retention and drives repeat business. Significant partnerships with airlines, credit card companies, and travel service providers further enhance Marriott's revenue streams by broadening its customer base and increasing brand visibility.
Marriott International Key Performance Indicators (KPIs)
Any
Average Worldwide Revenue Per Available Room
Combines occupancy and average daily rate to show overall revenue efficiency per room, offering insight into the company’s operational effectiveness and market demand.
Combines occupancy and average daily rate to show overall revenue efficiency per room, offering insight into the company’s operational effectiveness and market demand.
Data provided by:
Main Street Data
Main Street DataMarriott International Financial Statement Overview
Summary
Marriott International demonstrates strong revenue growth and profitability with robust margins. However, the negative equity and increased leverage are concerning and suggest potential financial distress. Cash flows are healthy but show a decline in growth, necessitating attention to bolster cash generation.Income Statement
Marriott International has shown a robust revenue growth trajectory, with a notable increase from $20.77 billion in 2022 to $25.39 billion in TTM (Trailing-Twelve-Months), reflecting a positive growth rate. The gross profit margin stands strong at 21.26% TTM, indicating efficient cost management, though slightly below the previous year's 21.59%. Net profit margins are healthy at 9.75% TTM, slightly improved from 9.46% in 2024, demonstrating stable profitability. The EBIT margin remains strong at 15.15%, with EBITDA margin at 16.37%, supporting steady operational performance.85
Very Positive
Balance Sheet
The balance sheet reveals a concerning negative stockholders' equity of -$3.17 billion TTM, indicating potential financial distress. The debt-to-equity ratio is not calculable due to negative equity, but the total debt has increased from $15.24 billion in 2024 to $15.85 billion TTM, highlighting increased leverage. The equity ratio is negative, reflecting significant liabilities over assets, requiring attention to financial restructuring.60
Neutral
Cash Flow
Marriott International's cash flow performance is strong, with a positive free cash flow of $1.84 billion TTM, although showing a slight decline from $1.99 billion in the previous year. The operating cash flow to net income ratio is stable, indicating effective cash conversion. However, the free cash flow growth rate turned negative, necessitating strategies to enhance cash generation.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 25.39B | 25.10B | 23.71B | 20.77B | 13.86B | 10.57B | Gross Profit |
| 5.40B | 5.42B | 5.12B | 4.56B | 2.80B | 1.46B | EBIT |
| 3.85B | 3.77B | 3.92B | 3.53B | 1.75B | 246.00M | EBITDA |
| 4.16B | 4.23B | 4.22B | 3.72B | 1.90B | 457.00M | Net Income Common Stockholders |
| 2.48B | 2.38B | 3.08B | 2.36B | 1.10B | -267.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 523.00M | 396.00M | 338.00M | 507.00M | 1.39B | 877.00M | Total Assets |
| 26.65B | 26.18B | 25.67B | 24.82B | 25.55B | 24.70B | Total Debt |
| 15.85B | 15.24B | 12.76B | 11.10B | 11.24B | 11.20B | Net Debt |
| 15.33B | 14.85B | 12.42B | 10.59B | 9.84B | 10.32B | Total Liabilities |
| 29.82B | 29.17B | 26.36B | 24.25B | 24.14B | 24.27B | Stockholders Equity |
| -3.17B | -2.99B | -682.00M | 568.00M | 1.41B | 430.00M |
| Cash Flow | Free Cash Flow | ||||
| 1.84B | 2.00B | 2.72B | 2.03B | 994.00M | 1.50B | Operating Cash Flow |
| 2.62B | 2.75B | 3.17B | 2.36B | 1.18B | 1.64B | Investing Cash Flow |
| -782.00M | -734.00M | -465.00M | -297.00M | -187.00M | 35.00M | Financing Cash Flow |
| -1.74B | -1.96B | -2.86B | -2.96B | -463.00M | -1.03B |
Marriott International Technical Analysis
Positive
267.34
Price Trends
241.59
Positive
261.32
Positive
257.86
Positive
Market Momentum
9.69
Negative
63.49
Neutral
78.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAR, the sentiment is Positive. The current price of 267.34 is above the 20-day moving average (MA) of 254.36, above the 50-day MA of 241.59, and above the 200-day MA of 257.86, indicating a bullish trend. The MACD of 9.69 indicates Negative momentum. The RSI at 63.49 is Neutral, neither overbought nor oversold. The STOCH value of 78.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAR.
Marriott International Risk Analysis
Marriott International disclosed 33 risk factors in its most recent earnings report. Marriott International reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marriott International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $60.96B | 40.45 | -41.19% | 0.23% | 7.43% | 38.52% | |
70 Outperform | $11.22B | 29.09 | 28.90% | 4.20% | 7.68% | -25.12% | |
70 Outperform | $12.76B | 17.33 | 22.31% | 0.45% | -7.38% | 19.62% | |
69 Neutral | $74.83B | 31.12 | -144.82% | 0.92% | 5.45% | -9.50% | |
66 Neutral | $18.61B | 31.04 | -27.16% | 1.36% | 6.34% | -11.99% | |
65 Neutral | $6.80B | 20.98 | 53.31% | 1.76% | 4.79% | 48.48% | |
62 Neutral | $6.98B | 11.38 | 2.86% | 3.90% | 2.64% | -22.07% |
* Consumer Cyclical Sector Average
Performance Comparison
MAR
Marriott International
267.34
33.53
14.34%
HTHT
H World Group
36.46
1.42
4.05%
H
Hyatt Hotels
132.23
-17.17
-11.49%
IHG
Intercontinental Hotels Group
120.56
21.51
21.72%
HLT
Hilton Worldwide Holdings
253.41
49.36
24.19%
WH
Wyndham Hotels & Resorts
87.21
18.14
26.26%
Marriott International Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 8.12%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call demonstrated strong global performance and strategic growth initiatives, particularly with record signings and the acquisition of citizenM. However, there were challenges noted in select markets, particularly Greater China and the U.S., leading to a cautious outlook for RevPAR growth.Q1-2025 Updates
Positive Updates
Record First Quarter Global Signings
Development activity remained robust, with record first quarter global signings, and net rooms grew 4.6% over the trailing 12 months through March.
Global RevPAR Growth
First quarter global RevPAR rose 4.1%, with ADR increasing 3% and occupancy rising 1 percentage point. APAC's first quarter RevPAR rose 11%, driven by strong ADR growth and higher demand from international guests.
Strong Performance in Group Segment
Group RevPAR rose 8% both globally and in the U.S. in the first quarter, with growth driven by ADR increases.
Marriott Bonvoy Growth
Marriott Bonvoy loyalty program had nearly 237 million members at the end of March, with member penetration reaching a record of 68% of room nights globally.
CitizenM Acquisition
Marriott announced the acquisition of citizenM, adding over 8,500 open rooms and 600 pipeline rooms to its system.
Negative Updates
RevPAR Decline in Greater China
First quarter RevPAR in Greater China declined 2%, due to the weaker macro environment and tough year-over-year comparisons.
Softer U.S. and Canada Growth
U.S. and Canada regions saw softer growth in March, particularly in the select service segment, leading to a lowering of full-year RevPAR growth guidance by 50 basis points.
Impact of U.S. Government Segment
Demand in the U.S. softened in March primarily due to a 10% year-over-year decline in U.S. government RevPAR.
Challenges with Construction Costs
Despite strong global signings, uncertainty around construction costs and the challenging financing environment in the U.S. and Europe was noted.
Company Guidance
During Marriott International's Q1 2025 earnings call, the company reported strong results, with global RevPAR increasing by 4.1%, surpassing the top end of their 3% to 4% guidance. In the U.S. and Canada, RevPAR rose over 3%, driven by luxury and full-service hotels, while international RevPAR climbed nearly 6%, led by APAC's 11% growth. India and Japan saw significant RevPAR increases of 16% and 17%, respectively. CALA reported a 7% rise, and EMEA a 6% increase. Conversely, Greater China experienced a 2% decline due to a weaker macro environment. Group RevPAR was a standout, growing 8% globally. Despite some U.S. softness, particularly in select service segments, Marriott maintained steady growth, with a 4.6% net rooms increase over 12 months. The company adjusted full-year RevPAR growth guidance down by 50 basis points due to U.S. and Canada outlook but remains optimistic about the global pipeline, with Q1 signings up 35% year-over-year and 42% of pipeline rooms under construction. The acquisition of citizenM, comprising over 8,500 open rooms and 600 pipeline rooms, is expected to enhance Marriott's global portfolio. Marriott Bonvoy reached 237 million members, with record penetration of 68% of room nights globally. The company continues to invest in digital transformation, aiming to strengthen operations and unlock new revenue opportunities. Despite challenges, Marriott remains focused on long-term growth and efficiency improvements.Marriott International Corporate Events
Executive/Board ChangesShareholder Meetings
Marriott International Elects Directors at Annual Meeting
Neutral
May 13, 2025
On May 9, 2025, Marriott International held its Annual Meeting of Stockholders where 13 director nominees were elected, and Ernst & Young LLP was ratified as the independent registered public accounting firm for 2025. Additionally, stockholders approved the advisory resolution on the compensation of Marriott’s named executive officers, signaling continued support for the company’s leadership and strategic direction.
The most recent analyst rating on (MAR) stock is a Buy with a $283.00 price target. To see the full list of analyst forecasts on Marriott International stock, see the MAR Stock Forecast page.
Spark’s Take on MAR Stock
According to Spark, TipRanks’ AI Analyst, MAR is a Neutral.
Marriott International’s overall score reflects strong financial performance, particularly in revenue growth and profitability. However, negative equity and high leverage pose significant risks. The technical analysis indicates mixed momentum with potential overbought conditions. While the company’s strategic initiatives and global performance are promising, valuation concerns and region-specific challenges, especially in Greater China and the U.S., balance the growth prospects.
To see Spark’s full report on MAR stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.