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Marriott International (MAR)
NASDAQ:MAR
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Marriott International
(NASDAQ:MAR)
55Neutral
Positive Factors
Earnings
Marriott's 4Q EBITDA exceeded expectations, reflecting a positive performance despite some investor concerns.
Market Performance
Q4 RevPAR was +5.0% vs our tracker's 4.3%, with regions like APAC and Europe showing significant growth, indicating strong performance in key markets.
Stock Buyback
The company announced an expansion of its share buyback program, indicating a strategy to return more capital to shareholders.
Negative Factors
Cost Management
Rising staffing costs are expected to negatively impact property-level margins.
Fee Transparency
Investors were disappointed that Marriott's non-RevPAR fees will no longer be disclosed or guided to, which comprise a significant portion of the company's fees.
Financial Guidance
2025 EPS guidance was below consensus with additional pressure from a higher tax rate.
Marriott International (MAR) vs. S&P 500 (SPY)
Market Cap
$61.85B
Dividend Yield1.17%
Average Volume (3M)1.97M
Price to Earnings (P/E)27.0
Beta (1Y)1.03
Revenue Growth5.85%
EPS Growth-18.43%
CountryUS
Employees418,000
SectorConsumer Cyclical
Sector Strength61
IndustryTravel Lodging
Share Statistics
EPS (TTM)8.32
Shares Outstanding275,372,770
10 Day Avg. Volume2,158,259
30 Day Avg. Volume1,974,291
Financial Highlights & Ratios
PEG Ratio25.49
Price to Book (P/B)N/A
Price to Sales (P/S)9.89
Price to Cash Flow (P/CF)51.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$295.56Price Target Upside37.74% 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 Financial Statement Overview
Summary
Marriott shows resilience in revenue recovery and profitability post-pandemic but faces challenges with high leverage and negative equity, posing significant financial stability risks. Strong cash flow generation is a positive, but balance sheet weaknesses need addressing for sustained growth.Income Statement
Marriott's revenue growth showed a positive trajectory, recovering from the pandemic impact, but the latest year saw a significant drop in revenue. The net profit margin has been stable, indicating decent profitability, although the latest TTM data reflects a notable decline. Despite these challenges, the company has maintained a positive EBIT and EBITDA margin, demonstrating operational resilience.60
Neutral
Balance Sheet
The balance sheet reflects high leverage with a negative stockholders' equity, raising concerns about financial stability. This indicates potential risks, such as difficulty in securing financing and vulnerability to economic downturns. The debt-to-equity ratio is unfavorable, highlighting a need for improved capital structure management.40
Negative
Cash Flow
Marriott's cash flow statement reveals strong free cash flow generation, especially in the latest periods. The operating cash flow to net income ratio is healthy, indicating efficient cash earnings. However, the negative equity on the balance sheet and cash reserves may constrain future investment opportunities.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 25.10B | 23.71B | 20.77B | 13.86B | 10.57B | Gross Profit |
| 5.10B | 5.12B | 4.56B | 2.80B | 1.46B | EBIT |
| 3.77B | 3.92B | 3.53B | 1.75B | 246.00M | EBITDA |
| 4.34B | 4.22B | 3.72B | 1.90B | 457.00M | Net Income Common Stockholders |
| 2.38B | 3.08B | 2.36B | 1.10B | -267.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 396.00M | 338.00M | 507.00M | 1.39B | 877.00M | Total Assets |
| 15.55B | 25.67B | 24.82B | 25.55B | 24.70B | Total Debt |
| 15.24B | 12.76B | 11.10B | 11.24B | 11.20B | Net Debt |
| 14.85B | 12.42B | 10.59B | 9.84B | 10.32B | Total Liabilities |
| 17.19B | 26.36B | 24.25B | 24.14B | 24.27B | Stockholders Equity |
| -1.64B | -682.00M | 568.00M | 1.41B | 430.00M |
| Cash Flow | Free Cash Flow | |||
| 2.75B | 2.72B | 2.03B | 994.00M | 1.50B | Operating Cash Flow |
| 2.75B | 3.17B | 2.36B | 1.18B | 1.64B | Investing Cash Flow |
| -734.00M | -465.00M | -297.00M | -187.00M | 35.00M | Financing Cash Flow |
| -1.96B | -2.86B | -2.96B | -463.00M | -1.03B |
Marriott International Technical Analysis
Negative
214.58
Price Trends
267.11
Negative
274.45
Negative
257.32
Negative
Market Momentum
-8.90
Negative
35.66
Neutral
40.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAR, the sentiment is Negative. The current price of 214.58 is below the 20-day moving average (MA) of 241.10, below the 50-day MA of 267.11, and below the 200-day MA of 257.32, indicating a bearish trend. The MACD of -8.90 indicates Negative momentum. The RSI at 35.66 is Neutral, neither overbought nor oversold. The STOCH value of 40.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.59B | 25.06 | 25.06% | 3.62% | 7.68% | -25.12% | |
72 Outperform | $52.09B | 35.40 | -41.19% | 0.28% | 9.17% | 42.78% | |
72 Outperform | $6.38B | 22.83 | 41.40% | 1.88% | ― | 6.40% | |
64 Neutral | $10.48B | 8.67 | 36.45% | 0.55% | -6.41% | 511.40% | |
62 Neutral | $15.37B | 25.95 | -27.16% | 1.52% | 6.34% | -11.99% | |
59 Neutral | $11.22B | 10.13 | -1.22% | 3.96% | 1.32% | -18.57% | |
55 Neutral | $61.85B | 26.97 | -144.82% | 1.17% | 5.85% | -18.43% |
* Consumer Cyclical Sector Average
Performance Comparison
MAR
Marriott International
214.58
-37.56
-14.90%
HTHT
H World Group
33.43
-6.29
-15.84%
H
Hyatt Hotels
109.76
-46.89
-29.93%
IHG
Intercontinental Hotels Group
101.09
0.44
0.44%
HLT
Hilton Worldwide Holdings
208.85
-2.18
-1.03%
WH
Wyndham Hotels & Resorts
82.36
9.96
13.76%
Marriott International Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -29.36% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Marriott's Q4 2024 earnings call highlighted strong net rooms growth, robust international RevPAR, and increased engagement in its loyalty program. However, challenges persist in Greater China, with a decline in incentive management fees and expected residential branding fees. The overall sentiment is positive, with strong financial performance and development momentum outweighing the lowlights.Highlights
Strong Net Rooms Growth
Marriott achieved net rooms growth of 6.8% for the full year 2024, with a global RevPAR increase of over 4%.
International RevPAR Growth
International RevPAR rose over 7% in Q4 2024, driven by a 4% rise in ADR and a 2 percentage point gain in occupancy, with notable growth in APAC, EMEA, and strong cross-border demand.
Robust Pipeline and Development
Marriott ended 2024 with over 577,000 rooms in its pipeline, signing a record of over 1,200 deals, and expanding its luxury portfolio with several notable hotel openings.
Increased Loyalty Program Engagement
Marriott Bonvoy added over 31 million new members in 2024, growing to nearly 228 million members, with a 30% increase in app downloads.
Strong Financial Performance
Fourth quarter total gross fee revenues grew 7% to $1.3 billion, and adjusted EBITDA grew 7% to $1.29 billion, driven by higher RevPAR and room additions.
Lowlights
Challenges in Greater China
RevPAR in Greater China declined 2% in Q4 2024, with notable weakness in Hainan Island due to weak domestic leisure demand.
Decline in Incentive Management Fees
Incentive management fees decreased year-over-year, impacted by declines in Greater China and the U.S. and Canada.
Residential Branding Fees Expected to Decline
Residential branding fees are expected to decline nearly 50% in 2025 due to the timing of unit sales.
Company Guidance
During the call, Marriott International provided guidance for 2025, highlighting expectations for net rooms growth of 4% to 5% and global RevPAR growth of 2% to 4%. The company anticipates gross fees to rise by 4% to 6%, reaching approximately $5.4 billion to $5.5 billion, with co-brand credit card fee growth slightly lower than the previous year. Adjusted EBITDA is projected to increase between 6% and 9%, totaling roughly $5.3 billion to $5.4 billion. The company also outlined a significant investment plan, expecting $1 billion to $1.1 billion in spending, with a focus on technology, owned leased portfolio renovations, and contract investments for new units. Despite some challenges, such as anticipated flat RevPAR growth in Greater China and a higher effective tax rate, Marriott remains optimistic about its growth trajectory and plans to return approximately $4 billion to shareholders in 2025.Marriott International Corporate Events
Executive/Board Changes
Marriott Expands Board with New Member Appointment
Positive
Jan 21, 2025
On January 17, 2025, Marriott International’s Board of Directors expanded to thirteen members and elected Sean Tresvant as a new board member, with his position effective from February 12, 2025. This strategic move, with no financial interests or arrangements influencing Tresvant’s appointment, is positioned to enhance the company’s governance and potentially strengthen its stakeholder confidence.
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.