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Marriott International (MAR)
NASDAQ:MAR
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Marriott International
(NASDAQ:MAR)
Rating:65Neutral
Price Target:
$294.00
â–²(9.76% Upside)
Positive Factors
International Markets Performance
Luxury and international markets continue to perform well, which is a relative positive for Marriott given its portfolio composition.
Leisure Segment Growth
Leisure transient was a bright spot and the fastest growing segment with RevPAR up 3% globally.
Valuation
Marriott's relative valuation looks attractive at 15.1x 2026 EV/EBITDA compared to Hilton at 18.6x.
Negative Factors
Guidance Adjustment
2025 guidance was lowered with the brunt of softness in Q3, a recurring theme from lodging earnings.
Near-term Bookings
Near-term bookings are softer-than-expected with higher attrition rates and 2025 group pace decelerated to 3% from 6%.
RevPAR Trends
US industry June RevPAR worsened by 1.3%, and international by approximately 6%.
Marriott International (MAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.71B
Dividend Yield0.97%
Average Volume (3M)1.37M
Price to Earnings (P/E)30.2
Beta (1Y)1.15
Revenue Growth5.12%
EPS Growth-11.48%
CountryUS
Employees418,000
SectorConsumer Cyclical
Sector Strength80
IndustryTravel Lodging
Share Statistics
EPS (TTM)2.65
Shares Outstanding271,457,820
10 Day Avg. Volume1,111,350
30 Day Avg. Volume1,372,348
Financial Highlights & Ratios
PEG Ratio-1.83
Price to Book (P/B)-26.50
Price to Sales (P/S)3.16
P/FCF Ratio39.66
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue3.54
Enterprise Value/Gross Profit16.62
Enterprise Value/Ebitda20.23
Forecast
1Y Price Target
$289.50Price Target Upside8.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
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 generates revenue primarily through three key streams: 1) Hotel management and franchise fees, which are paid by hotel owners and franchisees for the use of Marriott's brand and systems. This includes initial fees upon opening a property and ongoing fees based on a percentage of revenue. 2) Owned, leased, and joint-venture properties, where Marriott operates hotels directly, earning revenue through room sales and ancillary services such as food and beverage. 3) Vacation ownership sales, where the company sells timeshare interests and earns revenue from management fees associated with these properties. Additionally, Marriott benefits from strategic partnerships with airlines, travel agencies, and loyalty programs, such as Marriott Bonvoy, which drive customer loyalty and repeat business.
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 Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in pipeline growth and international RevPAR performance, alongside challenges in the Greater China market and softness in U.S. and Canadian RevPAR. While growth initiatives are promising, certain segments face headwinds.Q2-2025 Updates
Positive Updates
Record Pipeline Growth
Marriott's pipeline reached a record level with net rooms growing 4.7% year-over-year. The pipeline includes over 590,000 rooms, with 40% under construction. Deal signings rose 35% compared to the same quarter last year.
Strong International RevPAR Performance
International RevPAR increased over 5%, driven by APAC and EMEA. RevPAR in APAC rose 9%, with key markets like Japan and Australia seeing double-digit increases. EMEA RevPAR increased 7%.
Marriott Bonvoy Loyalty Program Growth
The Marriott Bonvoy loyalty program grew to nearly 248 million members, with member penetration reaching a record 69% globally.
Launch of New Brands and Acquisitions
Marriott announced the global launch of its collection brand, Series by Marriott, and completed the acquisition of citizenM. These moves are expected to drive significant growth opportunities.
Owned, Leased, and Other Revenue Growth
Owned, leased, and other revenue net of expenses rose 14% year-over-year, driven by improved performance at hotels and favorable currency impacts.
Negative Updates
Challenges in Greater China
RevPAR in Greater China declined 0.5% year-over-year due to a weaker macro environment, despite properties gaining market share.
Flat RevPAR in U.S. and Canada
RevPAR in the U.S. and Canada was flat year-over-year, with select service and extended stay RevPAR declining around 1.5% due to weaker demand.
Business Transient RevPAR Decline
Business transient RevPAR declined 2% globally and in the U.S. and Canada, partially due to the shift in Easter timing.
Group Business Weakness
Group RevPAR was softer than anticipated, with fewer near-term bookings and elevated attrition rates impacting performance.
Company Guidance
During the Marriott International Q2 2025 Earnings Conference Call, the company reported strong financial results that surpassed previous guidance amid macroeconomic uncertainty. Key metrics included a record pipeline with net rooms growth of 4.7% year-over-year and a 1.5% increase in global RevPAR. The APAC and EMEA regions led RevPAR increases with growth of 9% and 7%, respectively, while international RevPAR rose over 5%. RevPAR in the U.S. and Canada was flat year-over-year, with luxury RevPAR up 4%, although select service and extended stay RevPAR declined by 1.5%. The full-year RevPAR growth is now expected to be between 1.5% and 2.5%. The company's pipeline reached over 590,000 rooms, with 40% under construction. Marriott's Bonvoy loyalty program grew to nearly 248 million members, and the Marriott Media Network was introduced to enhance advertising opportunities. Adjusted EBITDA rose 7% to $1.42 billion, and the company anticipates full-year adjusted EBITDA growth of 7% to 8%.Marriott International Financial Statement Overview
Summary
Marriott International shows strong revenue growth and profitability improvements, but faces challenges with a highly leveraged balance sheet and negative equity position. The company demonstrates resilience in cash flow generation, crucial for sustaining operations and managing debt. Overall, while the income statement reflects positive trends, the balance sheet poses potential risks that need to be addressed for long-term stability.Income Statement
Marriott International has shown a strong revenue growth trajectory with a TTM revenue growth rate of 1.20%, indicating robust recovery and expansion. The gross profit margin is relatively low at 2.70% for TTM, but the net profit margin has improved to 11.88%, reflecting efficient cost management. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals significant leverage with a negative equity position, resulting in a high debt-to-equity ratio of -7.34 for TTM. This indicates potential financial risk and instability. The negative return on equity further highlights challenges in generating returns for shareholders. The equity ratio is also negative, reflecting a concerning capital structure.40
Negative
Cash Flow
Cash flow analysis shows a positive free cash flow growth rate of 7.12% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.63, suggesting moderate cash conversion efficiency. However, the free cash flow to net income ratio of 0.79 indicates that a significant portion of earnings is being converted into free cash flow, which is a positive sign.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.69B | 25.10B | 23.71B | 20.77B | 13.86B | 10.57B |
| Gross Profit | 5.47B | 5.10B | 5.12B | 4.56B | 2.80B | 1.46B |
| EBITDA | 4.50B | 4.34B | 4.38B | 3.92B | 1.90B | 457.00M |
| Net Income | 2.47B | 2.38B | 3.08B | 2.36B | 1.10B | -267.00M |
Balance Sheet | ||||||
| Total Assets | 27.34B | 26.18B | 25.67B | 24.82B | 25.55B | 24.70B |
| Cash, Cash Equivalents and Short-Term Investments | 671.00M | 396.00M | 338.00M | 507.00M | 1.39B | 877.00M |
| Total Debt | 16.54B | 15.24B | 12.76B | 11.10B | 11.24B | 11.20B |
| Total Liabilities | 30.31B | 29.17B | 26.36B | 24.25B | 24.14B | 24.27B |
| Stockholders Equity | -2.96B | -2.99B | -682.00M | 568.00M | 1.41B | 430.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.97B | 2.00B | 2.72B | 2.03B | 994.00M | 1.50B |
| Operating Cash Flow | 2.49B | 2.75B | 3.17B | 2.36B | 1.18B | 1.64B |
| Investing Cash Flow | -795.00M | -734.00M | -465.00M | -297.00M | -187.00M | 35.00M |
| Financing Cash Flow | -1.37B | -1.96B | -2.86B | -2.96B | -463.00M | -1.03B |
Marriott International Technical Analysis
Positive
267.86
Price Trends
269.41
Negative
259.60
Positive
265.99
Positive
Market Momentum
0.41
Negative
51.09
Neutral
59.74
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 267.86 is above the 20-day moving average (MA) of 264.73, below the 50-day MA of 269.41, and above the 200-day MA of 265.99, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 59.74 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.37B | 22.95 | 30.38% | 4.23% | 4.43% | 1.61% | |
74 Outperform | $6.61B | 20.30 | 56.16% | 1.82% | 3.65% | 38.50% | |
70 Outperform | $64.93B | 42.41 | -41.19% | 0.22% | 6.26% | 38.11% | |
69 Neutral | $13.83B | 34.17 | 11.66% | 0.42% | 0.74% | -54.42% | |
65 Neutral | $72.71B | 30.22 | -144.82% | 0.97% | 5.12% | -11.48% | |
63 Neutral | $18.52B | 25.56 | -27.16% | 1.41% | 8.89% | 23.20% | |
61 Neutral | $17.67B | 14.34 | -5.25% | 3.04% | 1.27% | -14.70% |
* Consumer Cyclical Sector Average
Performance Comparison
MAR
Marriott International
267.86
39.35
17.22%
HTHT
H World Group
36.85
8.19
28.58%
H
Hyatt Hotels
144.28
-4.22
-2.84%
IHG
Intercontinental Hotels Group
122.64
25.09
25.72%
HLT
Hilton Worldwide Holdings
276.06
60.91
28.31%
WH
Wyndham Hotels & Resorts
86.61
10.03
13.10%
Marriott International Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Marriott Issues $1.5 Billion in Notes
Neutral
Aug 20, 2025
On August 18, 2025, Marriott International entered into a Terms Agreement to issue $1.5 billion in notes, which were issued on August 20, 2025. The proceeds will be used for general corporate purposes, potentially including capital expenditures and debt repayment, impacting the company’s financial strategy and market positioning.
Executive/Board ChangesBusiness Operations and Strategy
Marriott Announces CFO Transition with New Appointments
Neutral
Jul 14, 2025
On July 14, 2025, Marriott International announced the retirement of Leeny Oberg, its Chief Financial Officer and Executive Vice President, Development, effective March 31, 2026. Jennifer C. Mason, a long-time Marriott executive, will succeed Oberg as CFO, while Shawn Hill will become Chief Development Officer. This leadership transition is expected to support Marriott’s continued growth and strategic direction, with both Mason and Hill bringing extensive experience to their new roles.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.