Marriott: Asset-Light Model, Resilient Growth, and Share Repurchases Support Outperform Rating and $370 Target

In a report released today, Ari Klein from BMO Capital upgraded Marriott International to a Buy, with a price target of $370.00.

Ari Klein has given his Buy rating due to a combination of factors tied to Marriott’s structurally attractive business model and its growth prospects into 2026. He sees Marriott’s asset-light, royalty-fee-driven structure as a key advantage, emphasizing its low capital requirements, limited fixed costs, and strong cash generation. This model, combined with steady net unit growth, is expected to support high single- to low double-digit increases in EBITDA and EPS over the long term, further enhanced by more than $3 billion in annual share repurchases. Klein also believes there is additional upside potential from upcoming renewals of Marriott’s co-branded credit card partnerships, which could provide incremental EBITDA.

In addition, Klein’s more constructive stance on the lodging sector in 2026 underpins his positive view on Marriott. He now places greater weight on the resilience of Marriott’s growth profile, having previously underestimated how well the company can expand even in a mixed macroeconomic backdrop. With potential upside to revenue per available room next year and Marriott’s premium brand portfolio, he regards the stock as a compelling way to gain offensive exposure to the lodging recovery. Aligning these operational strengths with a target price of $370, he concludes the risk/reward profile supports an Outperform (Buy) recommendation.

In another report released on January 6, Bernstein also maintained a Buy rating on the stock with a $369.00 price target.