Skip to Content

Marriott International Inc Class A MAR

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Marriott's Demand and Profitability Trend Higher in Q2, Harmonizing With Our 2021 Forecast

Dan Wasiolek Senior Equity Analyst

Analyst Note

| Dan Wasiolek |

Narrow-moat Marriott’s second-quarter global revenue per available room improved to 56% of 2019 levels (versus 62% for Hilton), up from 42% in the first quarter (45%), led by the U.S./Canada and China regions. U.S./Canada revPAR reached 61% of prepandemic levels versus 43% in the prior three months, while China revPAR surpassed 2019 marks this past spring. Strength continued into July, with U.S. revPAR rebounding to 84% of 2019 levels. We were encouraged to hear that U.S. group bookings for all future dates returned to 71% of prepandemic marks in June, up sharply from 44% in March, with rates having largely fully recovered. As a result, we plan to maintain our 2021 revPAR forecast of low 60s of 2019 levels, with a full recovery by 2023. We don’t plan a material change to our $130 fair value estimate, leaving the shares slightly overvalued.

Read Full Analysis

Company Profile

Business Description

Marriott operates over 1.4 million rooms across roughly 30 brands. Luxury represents nearly 9% of total rooms, while full service, limited service, and time-shares are 43%, 46%, and 2% of all units, respectively. Marriott, Courtyard, and Sheraton are the largest brands, while Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands. Managed and franchised represent 97% of total rooms. North America makes up 66% of total rooms. Managed, franchise, and incentive fees represent the vast majority of revenue and profitability for the company.

Contact
10400 Fernwood Road
Bethesda, MD, 20817
T +1 301 380-3000
Sector Consumer Cyclical
Industry Lodging
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 121,000

Related