Marriott International: Rebounds, Rewards, And Risks

Harold L. Vogel, CFA
1.67K Followers

Summary

  • MAR shares have had a good run in anticipation of a rebound in travel, and Q1 2021 earnings review suggests growth in all major hotel metrics should extend to 2023.
  • Expansion via new construction and re-brandings and refurbishments will help sustain MAR’s global market shares.
  • Yet the risks from inflation and international politics remain on the horizon.
  • MAR shares are attractive as a core long-term investment, but have probably already discounted the rebound in travel that is expected over the near to medium term.
Toronto Marriott City Centre Hotel in the Rogers Centre in Toronto, Canada.
Photo by JHVEPhoto/iStock Editorial via Getty Images

Overview:

Like many other major travel-related companies, MAR is realizing substantial gains in almost all global regions as compared to pandemic-2020 results.

As the largest “asset-light” global hotel company in terms of rooms, properties, and brands - 7,642 properties, 4.23 million rooms at Dec. 2020 - MAR is extremely well-positioned

This article was written by

1.67K Followers
Harold L. Vogel, Ph.D., CFA, is CEO of Vogel Capital Management in New York City and former Adjunct Professor of Finance and Economics, Columbia University Graduate School of Business. He is author of Financial Market Bubbles and Crashes, 3rd ed. (Dec 2021), Entertainment Industry Economics, (10th ed. 2020), and Travel Industry Economics, (4th ed. (2021). Articles include "An Analytical Review of Volatility Metrics for Bubbles and Crashes (with R. Werner), International Review of Financial Analysis, March 2015. "Playing with Power-Law Curves: A New Way to Analyze Market Structures and Sectors," Archives of Business Research, vol 10, No 8 August 25, 2022.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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