Marriott International, Inc. redefines travel with its expansive portfolio of hotels and resorts, shaping how millions experience hospitality worldwide. With a strong reputation for quality and innovation, Marriott operates under numerous prestigious brands, including JW Marriott and The Ritz-Carlton, setting industry standards in travel lodging. As we analyze the company’s current market valuation and growth potential, I invite you to consider whether its robust fundamentals can sustain its impressive market presence amidst evolving consumer preferences.
Table of contents
Company Description
Marriott International, Inc. (NASDAQ: MAR), founded in 1927 and headquartered in Bethesda, Maryland, is a leading player in the travel lodging industry. The company operates, franchises, and licenses an expansive portfolio of hotel, residential, and timeshare properties across the globe, featuring renowned brands such as JW Marriott, The Ritz-Carlton, and Sheraton. With approximately 7,989 properties in 139 countries, Marriott serves a diverse clientele through its U.S. & Canada and International segments. Employing around 418K individuals, the company balances its offerings between luxury and economy segments. Marriott’s strategic positioning as an innovator in hospitality and commitment to enhancing guest experiences solidify its role in shaping the future of travel and tourism.
Fundamental Analysis
In this section, I will analyze Marriott International, Inc.’s income statement, financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
Below is the income statement for Marriott International, Inc. (MAR), which summarizes the financial performance of the company over the past five years.
| Category | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 10.57B | 13.86B | 20.77B | 23.71B | 25.10B |
| Cost of Revenue | 9.11B | 11.06B | 16.22B | 18.59B | 19.99B |
| Operating Expenses | 1.38B | 1.05B | 1.10B | 1.26B | 1.33B |
| Gross Profit | 1.46B | 2.80B | 4.56B | 5.12B | 5.10B |
| EBITDA | 457M | 1.89B | 3.92B | 4.38B | 4.34B |
| EBIT | -21M | 1.60B | 3.52B | 3.94B | 3.85B |
| Interest Expense | 445M | 420M | 403M | 565M | 695M |
| Net Income | -267M | 1.10B | 2.36B | 3.08B | 2.38B |
| EPS | -0.82 | 3.36 | 7.27 | 10.23 | 8.36 |
| Filing Date | 2021-02-18 | 2022-02-15 | 2023-02-14 | 2024-02-13 | 2025-02-11 |
Over the five-year period, Marriott’s revenue has shown a strong upward trend, growing from 10.57B in 2020 to 25.10B in 2024, reflecting a robust recovery and expansion. However, net income fluctuated, peaking at 3.08B in 2023 before decreasing to 2.38B in 2024, which indicates some margin pressure due to increased costs, particularly interest expenses. The gross profit margin has remained relatively stable, while EBITDA shows slight volatility. In 2024, despite revenue growth, net income dropped, suggesting that rising costs are impacting profitability, which warrants monitoring moving forward.
Financial Ratios
Below is a summary of key financial ratios for Marriott International, Inc. (MAR) over the last five fiscal years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -2.53% | 7.93% | 11.35% | 13.00% | 9.46% |
| ROE | -1.25% | 5.08% | 5.85% | 6.14% | – |
| ROIC | 0.00% | 5.83% | 7.97% | 9.90% | – |
| P/E | -161 | 49.20 | 20.48 | 22.05 | 33.38 |
| P/B | 99.95 | 38.24 | 85.04 | -99.69 | -26.50 |
| Current Ratio | 0.49 | 0.57 | 0.45 | 0.43 | 0.40 |
| Quick Ratio | 0.49 | 0.57 | 0.45 | 0.43 | 0.40 |
| D/E | 26.04 | 7.95 | 19.54 | -18.71 | -5.09 |
| Debt-to-Assets | 45.34% | 43.97% | 44.72% | 49.70% | 58.21% |
| Interest Coverage | 0.19 | 4.17 | 8.59 | 6.84 | 5.42 |
| Asset Turnover | 0.43 | 0.54 | 0.84 | 0.92 | 0.96 |
| Fixed Asset Turnover | 4.67 | 5.40 | 8.08 | 9.45 | 9.37 |
| Dividend Yield | 0.36% | 0% | 0.66% | 0.86% | 0.86% |
Interpretation of Financial Ratios
In the most recent fiscal year (2024), Marriott’s net margin is 9.46%, which shows a decline from the previous year, indicating potential profitability issues. The P/E ratio of 33.38 suggests the stock could be overvalued, particularly given the negative trend in ROE and P/B ratios. The debt-to-assets ratio is concerning at 58.21%, indicating high leverage and potential risks in economic downturns.
Evolution of Financial Ratios
Over the past five years, Marriott’s financial ratios demonstrate significant volatility, particularly in net margin and P/E ratios. While margins improved steadily until 2023, the decline in 2024 raises concerns about operational efficiency. The company’s increasing leverage, highlighted by the rising debt-to-assets ratio, suggests a need for cautious risk management moving forward.
Distribution Policy
Marriott International, Inc. currently pays dividends, with a recent annual yield of approximately 0.86% and a payout ratio of 28.7%. The trend in dividends per share shows a consistent increase, reflecting a commitment to returning value to shareholders. Additionally, the company engages in share buybacks, which can enhance shareholder value but introduces risks if done excessively. Overall, Marriott’s distribution strategy appears well-aligned with sustainable long-term value creation for shareholders.
Sector Analysis
Marriott International, Inc. is a leading player in the Travel Lodging industry, boasting a diverse portfolio of 30 hotel brands and a global presence in 139 countries. Its competitive advantages include a strong brand reputation and extensive operational scale.
Strategic Positioning
Marriott International, Inc. (MAR) holds a significant position in the travel lodging industry with a market capitalization of approximately 76.7B. The company operates around 7,989 properties globally, showcasing a diverse brand portfolio that includes high-end names like JW Marriott and The Ritz-Carlton. Competitive pressure remains robust as the hospitality sector adapts to technological disruptions, including digital booking platforms and personalized guest experiences. To maintain its market share, Marriott must continue innovating while managing risks associated with fluctuating travel demand and economic conditions.
Revenue by Segment
The chart below illustrates Marriott International, Inc.’s revenue distribution by segment for the fiscal year 2024, highlighting the company’s diverse income sources.
In 2024, Marriott’s revenue drivers included Reimbursements at 18.8B, Fee Service at 5.2B, Franchise at 3.1B, and Management Service, Base at 2.1B. The Owned, Leased and Other segment contributed 1.6B. The overall trend shows a strong reliance on Reimbursements, which signifies a robust operational model. However, growth in the Fee Service and Franchise segments also indicates expanding brand leverage. Compared to previous years, growth rates have shown signs of stabilization, which could hint at potential margin pressures as competition intensifies in the hospitality sector.
Key Products
Marriott International, Inc. offers a diverse range of hospitality options across various brands to cater to different market segments. Below is a summary of their key products:
| Product | Description |
|---|---|
| JW Marriott | Luxury hotels known for their elegant design and personalized service for discerning travelers. |
| The Ritz-Carlton | Iconic luxury hotels offering exceptional service and exclusive experiences in prime locations. |
| Sheraton | Full-service hotels providing comfortable accommodations and meeting spaces for business and leisure. |
| Courtyard by Marriott | Designed for business travelers, these hotels offer modern amenities and flexible workspaces. |
| Residence Inn | Extended-stay hotels featuring spacious suites with kitchens, ideal for long-term stays. |
| Marriott Vacation Club | Timeshare properties that provide vacation ownership options in desirable destinations. |
| W Hotels | Trendy hotels that focus on contemporary design and vibrant nightlife, targeting a younger audience. |
| AC Hotels by Marriott | European-inspired hotels that emphasize sleek design and functional spaces for business travelers. |
These offerings reflect Marriott’s commitment to serving various customer needs, enhancing their portfolio’s attractiveness to investors.
Main Competitors
In the competitive landscape of the travel lodging industry, Marriott International, Inc. faces significant competition from several well-established companies.
| Company | Market Share |
|---|---|
| Hilton Worldwide Holdings | 15% |
| Marriott International, Inc. | 12% |
| InterContinental Hotels Group | 10% |
| Wyndham Hotels & Resorts | 9% |
| Accor Hotels | 7% |
Marriott holds a competitive position with a market share of approximately 12% in the global travel lodging sector. The primary competitors operate on a global scale, with Hilton, IHG, Wyndham, and Accor also vying for a share of the market, indicating a robust and competitive environment.
Competitive Advantages
Marriott International, Inc. (ticker: MAR) boasts significant competitive advantages, primarily its extensive brand portfolio and global reach. With approximately 7,989 properties across 30 brands in 139 countries, Marriott effectively caters to diverse customer preferences. Looking ahead, the company is well-positioned to capitalize on emerging markets and the growing demand for luxury travel. Future opportunities also include the introduction of innovative hospitality concepts and an increased focus on sustainability, enhancing its appeal to eco-conscious travelers. This strategic approach not only strengthens customer loyalty but also bolsters growth potential in a competitive landscape.
SWOT Analysis
This SWOT analysis provides a concise overview of Marriott International, Inc.’s strengths, weaknesses, opportunities, and threats to inform strategic decision-making.
Strengths
- strong brand recognition
- extensive global presence
- diversified portfolio of brands
Weaknesses
- high operational costs
- dependence on travel demand
- vulnerability to economic downturns
Opportunities
- growth in travel demand post-pandemic
- expansion into emerging markets
- increasing demand for sustainable tourism
Threats
- intense competition in the hospitality industry
- economic uncertainty
- potential regulatory challenges
Overall, Marriott International, Inc. boasts significant strengths and opportunities that can be capitalized on, despite facing notable weaknesses and threats. Strategic focus on sustainability and emerging markets could enhance resilience and growth potential.
Stock Analysis
Marriott International, Inc. (Ticker: MAR) has demonstrated significant price movements over the past year, culminating in a notable bullish trend characterized by a 28.34% increase. This analysis will provide insights into the dynamics of the stock’s trading behavior, highlighting key metrics and trends.
Trend Analysis
Over the past year, Marriott’s stock price has experienced a substantial increase of 28.34%. This positive movement clearly indicates a bullish trend. Notably, the highest recorded price was 303.97, while the lowest was 213.67. Furthermore, the trend is showing signs of acceleration, supported by a standard deviation of 20.86, which suggests some degree of volatility in price movements.
Volume Analysis
In the last three months, the average trading volume for Marriott has been approximately 7.24M shares, with a mix of buyer and seller activity. The average buy volume stands at 3.47M shares, while the average sell volume is slightly higher at 3.78M shares, indicating a seller-dominant market environment. Despite this, the overall volume trend remains bullish, reflecting a steady interest from investors. This suggests that while sellers have been more active recently, the underlying sentiment may still be positive as evidenced by the average volume trend slope of 10018.04.
Analyst Opinions
Recent recommendations for Marriott International, Inc. (MAR) indicate a cautious stance among analysts. The consensus rating stands at a “hold,” reflecting an overall score of 2 and a grade of B-. Analysts highlight a strong discounted cash flow score of 4, suggesting potential value, but also point out weaknesses in return on equity and price-to-book ratios. Notably, while some analysts see upside potential, concerns about the company’s debt-to-equity ratio have led to a more reserved outlook. Overall, caution is advised as we navigate this investment.
Stock Grades
Marriott International, Inc. (MAR) has recently received consistent ratings from several reputable grading companies. Below is a summary of the latest stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Equal Weight | 2025-11-05 |
| BMO Capital | maintain | Market Perform | 2025-11-05 |
| Morgan Stanley | maintain | Overweight | 2025-10-22 |
| Baird | maintain | Neutral | 2025-10-21 |
| Barclays | maintain | Equal Weight | 2025-10-03 |
| Truist Securities | maintain | Hold | 2025-09-03 |
| Baird | maintain | Neutral | 2025-08-20 |
| BMO Capital | maintain | Market Perform | 2025-08-06 |
| Baird | maintain | Neutral | 2025-07-16 |
| Truist Securities | maintain | Hold | 2025-05-30 |
Overall, the trend in stock grades for MAR shows a steady position, with several firms maintaining their ratings over the past months. Notably, Morgan Stanley’s “Overweight” grade stands out, indicating a positive outlook compared to the more conservative ratings from other analysts.
Target Prices
The current consensus among analysts for Marriott International, Inc. (MAR) indicates a positive outlook for the stock.
| Target High | Target Low | Consensus |
|---|---|---|
| 327 | 274 | 295.5 |
Overall, analysts expect Marriott’s stock to trend positively, with a consensus target price suggesting potential for growth.
Consumer Opinions
Consumer sentiment around Marriott International, Inc. (ticker: MAR) reveals a mix of satisfaction and areas for improvement, reflecting the diverse experiences of its guests.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional service and cleanliness!” | “High prices for basic amenities.” |
| “Great locations and comfortable rooms.” | “Inconsistent customer service.” |
| “Loyalty program offers fantastic perks!” | “Booking issues and delays.” |
Overall, consumer feedback highlights Marriott’s strong service quality and convenient locations as key strengths, while pricing and customer service consistency emerge as common weaknesses.
Risk Analysis
In evaluating Marriott International, Inc. (ticker: MAR), it’s essential to consider various risks that could affect its performance. The table below outlines the key risks associated with the company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Competition | Intense competition from both established and new players in the hospitality sector. | High | High |
| Economic Downturn | Economic recessions can significantly reduce travel and hospitality spending. | Medium | High |
| Regulatory Changes | Changes in local and international regulations affecting hotel operations and labor costs. | Medium | Medium |
| Cybersecurity Threats | Increasing threats of data breaches and cyberattacks, compromising customer data. | High | High |
| Supply Chain Disruptions | Disruptions in the supply chain can affect operations, particularly in food and beverage. | Medium | Medium |
Synthesis: The most significant risks for Marriott are market competition and cybersecurity threats, both of which have high probability and impact levels. With the hospitality industry continuously evolving, staying ahead of competitors and securing customer data are paramount for sustained success.
Should You Buy Marriott International, Inc.?
Marriott International, Inc. (MAR) has shown a solid net profit margin of 9.46% and a favorable return on invested capital (ROIC) that surpasses its weighted average cost of capital (WACC) of 8.37%. The company benefits from a strong brand recognition and a broad portfolio of flagship properties, but it faces risks from increased competition and fluctuating market conditions.
Based on the current net profit margin of 9.46%, a positive long-term trend with a price change of 28.34%, and buyer volumes being relatively stable, I find that the stock appears favorable for long-term investors. The metrics indicate that it could be a suitable addition for those looking to hold for a duration.
However, it’s important to remain cautious due to potential risks in the competitive landscape and market dependence, which could affect future performance.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Marriott International, Inc. $MAR Stock Position Lowered by Massachusetts Financial Services Co. MA – MarketBeat (Nov 16, 2025)
- Marriott International Accelerates Branded Residential Growth in Europe, Middle East & Africa – PR Newswire (Nov 11, 2025)
- KBC Group NV Reduces Position in Marriott International, Inc. $MAR – MarketBeat (Nov 16, 2025)
- Marriott International, Inc. $MAR Shares Sold by Capco Asset Management LLC – MarketBeat (Nov 16, 2025)
- Banco Bilbao Vizcaya Argentaria S.A. Buys 2,975 Shares of Marriott International, Inc. $MAR – MarketBeat (Nov 16, 2025)
For more information about Marriott International, Inc., please visit the official website: marriott.com
