Marriott International’s stock (NASDAQ:MAR) jumped after the firm announced impressive Q1 earnings. The hotel giant reported adjusted earnings of $2.09 per share on revenue of $5.62 billion, surpassing analysts’ expectations of $1.85 per share on revenue of $5.45 billion. During the same time last year, Marriott’s adjusted earnings were $1.25 per share on revenue of $4.2 billion.
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The worldwide revenue per available room (RevPAR) rose by 34.3% in Q1 compared to the same period in 2022. Easing travel restrictions in the Asia Pacific region, especially Greater China, played a significant role in boosting demand. Marriott saw robust demand in the U.S. and Canada across leisure and group segments, while business transient demand kept improving.
With strong global booking trends, Marriott decided to raise its full-year earnings guidance. The hotel chain now anticipates adjusted full-year earnings to fall between $7.97 and $8.42 per share, an increase from the previous estimates of $7.23 to $7.91 per share. Marriott’s pipeline expanded by 2.6% year-over-year to roughly 502,000 rooms. Conversion activity accounted for 29% of rooms signed and 25% of rooms opened during the quarter. The company still forecasts net rooms growth of 4% to 4.5% for the entire year.
Overall, Wall Street has a Moderate Buy consensus rating on MAR stock based on three Buys and eight Holds assigned in the past three months. However, the average price target of $183.18 per share implies little upside potential at just over 4%.
