Marriott International, Inc. (MAR) | Investment Case

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.

Show Full description

1.b. Last Insights on MAR

Marriott International's recent performance was driven by strong Q4 results, with better-than-expected sales and guidance. The company's global demand is improving, with solid fee growth and international strength (Marriott to Report Q4 Earnings: What to Expect From the Stock?). Analysts boosted their forecasts following the Q4 results, citing a growing loyalty program and robust 2026 guidance (These Analysts Boost Their Forecasts On Marriott International Following Q4 Results). The stock was upgraded to "Buy" by Zacks, reflecting growing optimism about its earnings prospects (Marriott (MAR) Upgraded to Buy: Here's Why). Additionally, the company's asset-light model and expanding room pipeline support a 13%-15% 2026 EPS growth outlook (Marriott International: Growth Justifies Valuation).

1.c. Company Highlights

Last Price	347.93
Change Percentage	-0.56%
Open	348.94
Previous Close	349.89
Market Cap ( Millions)	92196
Volume	2276684
Year High	370
Year Low	205.4
M A 50	321.77
M A 200	283.48

FCF Yield	3.14%
Dividend Yield	0.76%
ROE	-79.90%
Debt / Equity	-453.01%
Net Debt / EBIDTA	362.09%
Price To Book	-24.77
Price Earnings Ratio	35.92
Price To FCF	31.81
Price To sales	3.52
EV / EBITDA	23.58

2. Marriott International's Solid Q4 2025 Earnings: A Closer Look

Marriott International, Inc.'s fourth quarter 2025 earnings call highlighted the company's solid financial performance. The company's total gross fee revenues grew 7% to $1.4 billion, driven by higher RevPAR, room additions, and an 8% increase in credit card fees. Adjusted EBITDA rose 9% to $1.4 billion, and full year adjusted EBITDA rose 8% to $5.38 billion. The actual EPS came out at $2.58, slightly lower than estimates of $2.6.

Publication Date: Feb -11

                                    📋 Highlights
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<li><b>Global Portfolio Expansion:
                                                Marriott's portfolio reached 1,780,000 rooms across 9,800 properties in 145 countries, with a record 610,000-room pipeline.
Conversion-Driven Growth:
                                                Conversions accounted for 33% of signings/ openings, with 75% of conversions opening within 12 months of signing.
RevPAR Performance:
                                                Q4 global RevPAR rose 1.9%, led by 9% growth in APAC and 7% in EMEA, while luxury RevPAR surged 6% year-over-year.
Financial Strength:
                                                Full-year adjusted EBITDA hit $5.38B (+8%), with 2026 guidance projecting 8-10% growth to $5.8B-$5.9B.
Credit Card Fee Growth:
                                                35% increase expected in co-branded credit card fees in 2026, driven by a new royalty rate and $700M+ annual fees program.

                                

Revenue Growth and Segment Performance

The company's global RevPAR rose 2% for the full year, with RevPAR in the US and Canada rising 0.7% and international RevPAR increasing over 5%. Luxury and leisure led the way, with luxury RevPAR up 6% and leisure RevPAR up 3%. In the fourth quarter, worldwide RevPAR increased 1.9%, with December RevPAR coming in well ahead of prior expectations. By region, fourth quarter RevPAR was strongest in APAC, which rose nearly 9%, followed by EMEA, which rose 7%, and CALA, which rose over 2%.

Outlook and Guidance

For 2026, the company expects net rooms growth between 4.5% to 5%, with full year global RevPAR growth expected to be between 1.5% to 2.5%. Fee revenues could rise 8% to 10% to $5.9 billion to $5.96 billion, with adjusted EBITDA expected to increase between 8% to 10%, to roughly $5.8 billion to $5.9 billion. As Anthony G. Capuano noted, the company is "disciplined in its use of key money, only deploying capital when it can drive outsized economics for shareholders."

Valuation and Metrics

Analysts estimate next year's revenue growth at 5.6%. Marriott's current P/E Ratio is 37.1, EV/EBITDA is 25.1, and ROE is -84.98%. The company's ROIC is 15.41%, indicating efficient use of capital. The Net Debt / EBITDA ratio is 3.61, suggesting a manageable debt burden. These metrics suggest that the market has high expectations for Marriott's future growth and profitability.

3. NewsRoom

Insider Selling: Marriott International (NASDAQ:MAR) EVP Sells $716,060.00 in Stock

Feb -22

Source: defenseworld.net

Marriott International (NASDAQ:MAR) EVP Sells $1,439,240.00 in Stock

Feb -22

Source: defenseworld.net

Rajeev Menon Sells 3,492 Shares of Marriott International (NASDAQ:MAR) Stock

Feb -22

Source: defenseworld.net

Anthony Capuano Sells 63,000 Shares of Marriott International (NASDAQ:MAR) Stock

Feb -21

Source: defenseworld.net

William Brown Sells 9,456 Shares of Marriott International (NASDAQ:MAR) Stock

Feb -21

Source: defenseworld.net

Marriott International (NASDAQ:MAR) EVP Sells $896,784.00 in Stock

Feb -20

Source: defenseworld.net

Marriott International (MAR) is a Great Momentum Stock: Should You Buy?

Feb -18

Source: zacks.com

4 Consumer Discretionary Stocks to Buy as Inflation Continues to Cool

Feb -18

Source: zacks.com

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

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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

PulteGroup

A-Score: 5.8/10

Value: 6.0

Growth: 8.8

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

Booking

A-Score: 5.8/10

Value: 3.6

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

Hilton

A-Score: 5.5/10

Value: 3.2

Growth: 7.3

Quality: 6.2

Yield: 0.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

D.R. Horton

A-Score: 5.5/10

Value: 6.3

Growth: 7.6

Quality: 7.1

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Marriott

A-Score: 5.3/10

Value: 3.4

Growth: 7.4

Quality: 5.5

Yield: 1.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Lennar

A-Score: 4.8/10

Value: 6.8

Growth: 4.3

Quality: 5.9

Yield: 3.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.77%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.45%

Marriott International, Inc. - US5719032022

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MAR

1.c. Company Highlights

Less Volatile

Average Growth

Stable Momentum

Earnings Miss

Expensive

Higher Growth

Earnings Beats

Fairly Valued

Average Yield

Revenues Beats

Strong Momentum

2. Marriott International's Solid Q4 2025 Earnings: A Closer Look

Revenue Growth and Segment Performance

Outlook and Guidance

Valuation and Metrics

3. NewsRoom

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%

Europe, Middle East and Africa (EMEA)

Expected Growth: 5.8%

Asia Pacific Excluding China (apec)

Expected Growth: 6.2%

Greater China

Expected Growth: 6.5%

Unallocated Corporate and Other

Expected Growth: 5.8%

7. Detailed Products

Luxury and Lifestyle Brands

Premium Brands

Select Brands

Long Stay Brands

Marriott Bonvoy

Meetings and Events

Marriott International's Vacation Club

8. Marriott International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

347.93$

Current Price

347.93$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA