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Marriott International Inc Class A MAR

Morningstar Rating
$238.83 +0.51 (0.21%)
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Company Report

Marriott's Group and International Demand Augmenting Normalizing Leisure Trips

We expect Marriott's global share to increase further over the next several years, due to its strong intangible asset, source of its wide moat, which is endeared by both hotel owners and travelers. In the past few years, Marriott has renovated a meaningful percentage of core Marriott and Courtyard hotels, and since 2019, has added several new brands, which support our constructive stance along with a favorable next-generation traveler position. In fact, recent brands StudioRes, City Express, and Four Points, not only extend Marriott's reach into the midscale and extended-stay segments but could also add several hundred hotels each over the next several years. Also, we see Marriott as having an industry-leading loyalty program, with 203 million members (as of March 31, 2024), which incentivizes third-party hotel owners to join the company's brands. Additionally, we believe the acquisition of Starwood (closed in September 2016) and partnership with MGM's Vegas portfolio (signed in June 2023) has strengthened Marriott's long-term brand advantage, as Starwood's global luxury portfolio and MGM's leading presence in the gaming mecca complement Marriott's dominant upper-scale position in North America.

Price vs Fair Value

MAR is trading at a 55% premium.
Price
$238.28
Fair Value
$223.00
Uncertainty
Medium
1-Star Price
$627.90
5-Star Price
$583.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Marriott is positioned to benefit from the its expanding presence geographically and across price points, with its recent brand launches, Spark (midscale) and StudioRes (extended-stay).

Bears

Independent hotels and home and vacation rentals present a competitive threat, and the advancement of technology and its use by next-generation travelers increase the access and awareness of these properties.

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News

Trading Information

Previous Close Price
$238.32
Day Range
$236.86239.40
52-Week Range
$165.19260.53
Bid/Ask
$238.73 / $238.81
Market Cap
$68.22 Bil
Volume/Avg
246,002 / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
23.87
Price/Sales
2.98
Dividend Yield (Trailing)
0.87%
Dividend Yield (Forward)
1.06%
Total Yield
6.60%

Company Profile

Marriott operates 1.6 million rooms across roughly 30 brands. At the end of 2023, luxury represented roughly 10% of total rooms, premium 42%, select service was 46%, midscale 1%, and other 1%. Marriott, Courtyard, and Sheraton are the largest brands, while Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands. Managed and franchised represented 97% of total rooms as of Dec. 31, 2023. North America makes up 63% of total rooms. Managed, franchise, and incentive fees represent the vast majority of revenue and profitability for the company.
Sector
Consumer Cyclical
Industry
Lodging
Stock Style Box
Large Core
Total Number of Employees
411,000

Competitors

Valuation

Metric
MAR
IHG
CHH
Price/Earnings (Normalized)
23.8725.2020.18
Price/Book Value
879.60
Price/Sales
2.983.713.90
Price/Cash Flow
22.8321.0823.19
Price/Earnings
MAR
IHG
CHH

Financial Strength

Metric
MAR
IHG
CHH
Quick Ratio
0.390.900.32
Current Ratio
0.420.970.37
Interest Coverage
6.369.445.32
Quick Ratio
MAR
IHG
CHH

Profitability

Metric
MAR
IHG
CHH
Return on Assets (Normalized)
11.84%14.45%13.96%
Return on Equity (Normalized)
732.38%
Return on Invested Capital (Normalized)
29.28%52.08%22.46%
Return on Assets
MAR
IHG
CHH
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Lodging Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
HLT
Hilton Worldwide Holdings IncKwwwgtxbmHlh$51.4 Bil
IHG
InterContinental Hotels Group PLC ADRNrlmnchhZwf$16.3 Bil
ICHGF
InterContinental Hotels Group PLCFmv$16.1 Bil
H
Hyatt Hotels Corp Class ATpygrtxSfkbljm$15.2 Bil
HTHT
H World Group Ltd ADRXstsft$12.8 Bil
ACCYY
Accor SA ADRBxjvb$11.0 Bil
ACRFF
Accor SACkzyxc$11.0 Bil
WH
Wyndham Hotels & Resorts Inc Ordinary SharesMfyzppnvGpyfl$5.7 Bil
CHH
Choice Hotels International IncWrspvpssxBwvxc$5.7 Bil

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