Marriott International: Strong Q1 Performance Amid Mixed Market Signals Justifies Hold Rating

In a report released yesterday, Ari Klein from BMO Capital maintained a Hold rating on Marriott International (MAR – Research Report), with a price target of $265.00.

Ari Klein has given his Hold rating due to a combination of factors influencing Marriott International’s performance. The company showed a strong first quarter, driven by international market strength, despite some softening in U.S. and Canada demand, particularly in government and select-service sectors. However, the guidance for the second quarter was lighter than expected, and while the 2025 outlook saw only slight adjustments, there is a risk if the macroeconomic environment weakens further.
Marriott’s first quarter adjusted EPS exceeded expectations, and fees and EBITDA also surpassed projections, indicating robust performance in various regions. The company’s RevPAR growth was higher than anticipated, with luxury and full-service segments outperforming select-service, which faced macroeconomic pressures. Despite the challenging environment, Marriott’s 2025 guidance remained largely unchanged, which supports the Hold rating as it reflects both the potential and risks associated with the current market conditions.

According to TipRanks, Klein is a 4-star analyst with an average return of 4.3% and a 55.88% success rate. Klein covers the Real Estate sector, focusing on stocks such as Crown Castle, Pebblebrook Hotel, and Ryman.

In another report released on April 24, Robert W. Baird also maintained a Hold rating on the stock with a $250.00 price target.