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1. Company Snapshot

1.a. Company Description

Marriott 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.

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1.b. Last Insights on MAR

Marriott International's recent performance was driven by strong Q3 earnings, beating estimates, and robust global demand. Revenue per available room (RevPAR) growth was fueled by luxury segment gains. The company accelerates its EMEA expansion with new luxury residences and a record pipeline. Additionally, American Century Companies Inc. increased its stake in Marriott by 188.4%, acquiring 207,486 shares. A solid quarterly report, with EPS of $2.67, surpassed estimates, while revenue aligned with analyst expectations at $6.46 billion.

1.c. Company Highlights

2. Marriott's Q3 2025 Earnings: A Strong Performance

Marriott International reported a robust third quarter, with adjusted EPS growing 9% to $2.47, beating analyst estimates of $2.38. Total gross fee revenues increased 4% year-over-year to $1.34 billion, driven by rooms growth and strong co-branded credit card fee growth, which rose 13%. Adjusted EBITDA rose 10%, demonstrating the company's ability to expand its margins. The revenue growth was driven by a 4.7% year-over-year increase in rooms to over 1.75 million across more than 9,700 properties.

Publication Date: Nov -05

📋 Highlights
  • Room Growth Acceleration: Global room count rose 4.7% YoY to 1.75 million rooms across 9,700 properties by Q3 2025.
  • RevPAR Performance: Global RevPAR increased 0.5%, with strong international growth (2.6%) offsetting a 0.4% decline in the U.S. & Canada.
  • Financial Strength: Adjusted EBITDA rose 10% and adjusted EPS grew 9%, driven by $1.34 billion in gross fee revenue (up 4% YoY).
  • Credit Card Program Expansion: Co-branded credit card fees surged 13% to $660 million in 2024, with 260 million Bonvoy members fueling 9% growth in 2025.
  • Development Pipeline Momentum: 7% increase in group pace for 2026, with 1/3 of room openings from conversions and luxury-tier RevPAR index up 4%.

Revenue Growth Drivers

The company's RevPAR growth was modest, with a 0.5% increase globally, but it is expected to accelerate in Q4, with a forecasted increase of 1% to 2%. International RevPAR grew 2.6%, while RevPAR in the U.S. & Canada was down 0.4%. The growth in co-branded credit card fees is a significant contributor to the company's revenue, with nearly 260 million members in the Bonvoy loyalty program. As Anthony Capuano noted, the power of Bonvoy makes Marriott an attractive partner for financial services companies.

Outlook and Valuation

Marriott expects gross fee growth in the 4% to 5% range in Q4, with adjusted EBITDA expected to increase 7% to 9%. For the full year, the company expects gross fees to increase around 4.5% to 5% year-over-year. Analysts estimate next year's revenue growth at 5.5%. With a P/E Ratio of 28.32 and an EV/EBITDA of 19.14, the market is pricing in a certain level of growth. The company's ROIC of 21.76% indicates a strong ability to generate returns on invested capital.

Growth Prospects

Marriott's development pipeline is showing signs of improvement, with a sequential increase in under-construction rooms. The company's luxury tier has been performing well, with a 4% RevPAR index leading the charge. In Asia, Marriott is seeing double-digit rooms growth and continued disproportionate share of signings. The company's pipeline in APAC and Greater China is strong, with 8% of its existing rooms in APAC and 15% of its pipeline, and 11% of its existing rooms in Greater China and 18% of its pipeline.

3. NewsRoom

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Marriott Cools on U.S. Outlook

Dec -04

Source: gurufocus.com

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Marriott International, Inc. (MAR) Presents at Barclays 11th Annual Eat, Sleep, Play, Shop Conference 2025 Transcript

Dec -04

Source: seekingalpha.com

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Design Hotels Boosts Growth in Asia Pacific with Fourteen Landmark Signings

Dec -03

Source: prnewswire.com

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How You Should Tackle 'Travel Tuesday.' Expert Views on the Promotion.

Dec -02

Source: investopedia.com

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Travel Stocks Gains Focus on Thanksgiving-- Here are Top 5 Names to Watch

Nov -27

Source: gurufocus.com

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Baltimore Washington Financial Advisors Inc. Increases Position in Marriott International, Inc. $MAR

Nov -27

Source: defenseworld.net

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Marriott Vacations Worldwide: The Price Drop Was Logical But Just Too Much

Nov -26

Source: seekingalpha.com

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American Century Companies Inc. Acquires 207,486 Shares of Marriott International, Inc. $MAR

Nov -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.80%)

6. Segments

U.S. & Canada

Expected Growth: 5.5%

The U.S. and Canada are mature markets with steady demand. Growth is expected to be slightly below the global average due to the mature nature of the market, but still positive due to Marriott's strong brand presence and potential for increased market share.

Europe, Middle East and Africa (EMEA)

Expected Growth: 5.8%

EMEA is a diverse region with both mature and growing markets. The expected growth rate is around the global average, reflecting the mix of economies and the potential for growth in certain areas, balanced by the challenges in others.

Asia Pacific Excluding China (apec)

Expected Growth: 6.2%

The Asia Pacific region excluding China is expected to grow faster than the global average due to its strong economic growth, increasing tourism, and the expanding middle class. This region is a key growth area for Marriott.

Greater China

Expected Growth: 6.5%

Greater China is a rapidly growing market with significant potential for Marriott. The region's economic growth, coupled with increasing travel demand, supports a higher growth rate than the global average.

Unallocated Corporate and Other

Expected Growth: 5.8%

Since this is not directly related to operational revenue, the growth rate is assumed to be around the global average. It might not directly correlate with operational growth but follows the overall company growth hypothesis as a defensive estimate.

7. Detailed Products

Luxury and Lifestyle Brands

High-end hotels and resorts offering luxurious amenities and personalized services

Premium Brands

Upscale hotels offering modern amenities and services

Select Brands

Mid-range hotels offering essential amenities and services

Long Stay Brands

Extended-stay hotels offering kitchenettes and home-like amenities

Marriott Bonvoy

Loyalty program offering rewards and benefits across Marriott properties

Meetings and Events

Customized event planning and meeting spaces for corporate and social events

Marriott International's Vacation Club

Timeshare ownership and vacation rentals offering flexible vacation options

8. Marriott International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Marriott International, Inc. faces moderate threat from substitutes, as customers have various options for accommodations, including Airbnb, hostels, and vacation rentals. However, the company's strong brand reputation and loyalty program help to mitigate this threat.

Bargaining Power Of Customers

Marriott International, Inc. has a large customer base, but individual customers have limited bargaining power due to the company's vast network of properties and loyalty program.

Bargaining Power Of Suppliers

Marriott International, Inc. has a moderate level of dependence on suppliers, including food and beverage providers, linen suppliers, and technology vendors. While the company has some bargaining power, suppliers can still exert some influence.

Threat Of New Entrants

Marriott International, Inc. operates in a highly competitive industry, but the threat of new entrants is relatively low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

Marriott International, Inc. operates in a highly competitive industry, with numerous established players and a high level of rivalry. The company must continually innovate and differentiate itself to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 105.65%
Debt Cost 4.85%
Equity Weight -5.65%
Equity Cost 12.05%
WACC 4.45%
Leverage -1870.97%

11. Quality Control: Marriott International, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Booking

A-Score: 6.3/10

Value: 3.8

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 7.5

Volatility: 8.7

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PulteGroup

A-Score: 5.8/10

Value: 5.9

Growth: 8.8

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

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Lennar

A-Score: 5.4/10

Value: 7.5

Growth: 7.2

Quality: 7.1

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

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Hilton

A-Score: 5.4/10

Value: 3.5

Growth: 7.3

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 9.3

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D.R. Horton

A-Score: 5.4/10

Value: 5.9

Growth: 7.6

Quality: 6.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Marriott

A-Score: 5.3/10

Value: 4.2

Growth: 7.4

Quality: 5.4

Yield: 1.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

292.59$

Current Price

292.59$

Potential

-0.00%

Expected Cash-Flows