In a world where travel and hospitality shape our experiences, Marriott International, Inc. stands at the forefront, redefining how we connect with destinations. With a diverse portfolio of over 30 prestigious brands, including JW Marriott and The Ritz-Carlton, this industry titan is synonymous with quality and innovation in travel lodging. As we analyze its current market position and growth potential, we must ask: do Marriott’s fundamentals still align with its lofty market valuation?
Table of contents
Company Description
Marriott International, Inc. (ticker: MAR), founded in 1927 and headquartered in Bethesda, Maryland, is a leading player in the travel lodging industry. The company operates, franchises, and licenses a diverse portfolio of approximately 7,989 properties across 30 hotel brands, including luxury names like JW Marriott and The Ritz-Carlton, as well as more budget-friendly options like Courtyard and Fairfield by Marriott. With a significant presence in the U.S. and Canada, as well as international markets, Marriott continues to expand its global footprint. As a major influencer in the hospitality sector, Marriott leverages innovation and sustainability efforts to enhance guest experiences and drive industry standards.
Fundamental Analysis
In this section, I will analyze Marriott International, Inc.’s income statement, key financial ratios, and dividend payout policy to provide insights into its financial health.
Income Statement
The following table outlines the income statement for Marriott International, Inc. (MAR) over the past five fiscal years, illustrating key financial metrics that are critical for analysis.
| Metric | 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 | 1.90B | 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 |
Interpretation of Income Statement
Over the past five years, Marriott International has shown a steady increase in revenue, growing from $10.57B in 2020 to $25.10B in 2024, signaling a robust recovery post-pandemic. Despite fluctuations, net income peaked in 2023 at $3.08B, then decreased to $2.38B in 2024, indicating potential challenges in sustaining profit margins. The gross profit margin remained consistent, reflecting efficient cost management. The recent year’s performance suggests that while revenue growth is strong, the rise in interest expenses has pressured net income, warranting attention for future profitability strategies.
Financial Ratios
The following table presents key financial ratios for Marriott International, Inc. (MAR) over the past few years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -2.53% | 7.93% | 11.35% | 13.00% | 9.46% |
| ROE | -62.09% | 77.72% | 4.15% | -4.52% | -79.38% |
| ROIC | 0.24% | 8.17% | 14.44% | 19.10% | 15.07% |
| P/E | -160.97 | 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
Analyzing Marriott International, Inc. (MAR) based on the latest financial ratios from FY 2024 reveals mixed results. The liquidity ratios are concerning, with a current ratio of 0.403 and a quick ratio of 0.403, indicating potential difficulties in meeting short-term obligations. The solvency ratio stands at 0.098, suggesting high leverage with a debt-to-assets ratio of 0.582. Profitability metrics show a net profit margin of 9.46%, which is relatively strong, but the return on equity is negative at -79.38%, raising red flags about operational efficiency. Meanwhile, the efficiency ratios show a receivables turnover of 8.98, which is healthy, but the working capital turnover ratio is negative, indicating potential cash flow issues. Overall, while the profitability ratios are decent, liquidity and solvency concerns warrant caution.
Evolution of Financial Ratios
Over the past five years, MAR’s financial ratios indicate a trend of improvement in profitability, with net profit margins increasing from negative values in 2020 to 9.46% in 2024. However, liquidity ratios have generally weakened, with the current ratio decreasing from 0.566 in 2021 to 0.403 in 2024, highlighting an ongoing challenge in managing short-term financial health.
Distribution Policy
Marriott International, Inc. (MAR) maintains a dividend payout ratio of approximately 28.7% and a dividend yield of around 0.86%. The company has consistently increased its dividend per share, reflecting a commitment to returning value to shareholders. Additionally, MAR engages in share buybacks, which can enhance shareholder value. However, potential risks include unsustainable distributions if cash flow fluctuates. Overall, Marriott’s distribution policy supports sustainable long-term value creation for shareholders.
Sector Analysis
Marriott International, Inc. is a leading player in the Travel Lodging industry, known for its extensive portfolio of 30 hotel brands. Key competitors include Hilton and Hyatt, but Marriott’s brand diversity and global reach provide a significant competitive edge.
Strategic Positioning
Marriott International, Inc. (MAR) holds a significant market share in the global travel lodging industry, operating approximately 7,989 properties across 30 brands. With a market cap of 78.5B, the company faces competitive pressure from both established hotel chains and emerging platforms like Airbnb. Technological disruption, particularly in online booking and customer experience enhancements, is reshaping the landscape. Marriott’s diverse portfolio, including luxury and budget offerings, positions it well to navigate these challenges while maintaining robust occupancy rates. However, vigilance in adapting to market trends will be essential for sustaining its competitive edge.
Revenue by Segment
The chart illustrates Marriott International’s revenue distribution across various segments for the fiscal year 2024, highlighting the company’s performance in different areas.
In FY 2024, Marriott’s revenue segments show strong performance with Reimbursements leading at 18.8B, followed by Fee Service at 5.2B and Franchise at 3.1B. The Owned, Leased and Other segment contributed 1.6B, while Management Service, Base generated 2.1B. The most notable trend is the significant reliance on Reimbursements, indicating a focused strategy on enhancing this area. However, the growth rates have shown signs of slowing, suggesting potential margin risks as competition intensifies and operational costs rise in the hospitality sector.
Key Products
Below is a table highlighting the key products offered by Marriott International, Inc., showcasing their diverse range of accommodations and services.
| Product | Description |
|---|---|
| JW Marriott | Luxury hotels that provide upscale amenities and services, catering to discerning travelers. |
| The Ritz-Carlton | Iconic luxury properties known for their exceptional service and elegant accommodations. |
| W Hotels | Trendy hotels that focus on a vibrant social scene and modern design aesthetics. |
| Marriott Hotels | Full-service hotels offering a range of amenities for both business and leisure travelers. |
| Sheraton | Well-known for its comfortable rooms and communal spaces, ideal for both work and relaxation. |
| Delta Hotels | Contemporary hotels providing essential comforts for business and leisure guests. |
| Marriott Vacation Club | Timeshare properties that allow members to enjoy vacation ownership at various destinations. |
| Westin | Hotels emphasizing wellness and relaxation, featuring signature Heavenly Beds and wellness programs. |
| Renaissance | Upscale hotels with a focus on local culture and unique experiences for guests. |
| Autograph Collection | A collection of unique hotels, each with its own distinct personality and story. |
Marriott’s extensive portfolio reflects its commitment to catering to a wide range of travelers, from luxury seekers to business professionals.
Main Competitors
The competitive landscape in the travel lodging industry is diverse, with several prominent players vying for market share alongside Marriott International, Inc.
| Company | Market Cap |
|---|---|
| Carvana Co. | 87B |
| O’Reilly Automotive, Inc. | 84B |
| Airbnb, Inc. | 77B |
| Marriott International, Inc. | 79B |
| General Motors Company | 70B |
| Royal Caribbean Cruises Ltd. | 70B |
| Ferrari N.V. | 70B |
| AutoZone, Inc. | 64B |
| Hilton Worldwide Holdings Inc. | 63B |
| Ross Stores, Inc. | 58B |
| InterContinental Hotels Group PLC | 21B |
The main competitors in the travel lodging industry include both hotel chains and related services, primarily operating in the U.S. and international markets. Marriott faces strong competition from companies like Hilton Worldwide and Airbnb, which significantly influence market dynamics.
Competitive Advantages
Marriott International, Inc. (MAR) boasts a robust competitive edge through its extensive portfolio of 30 well-known hotel brands, catering to diverse market segments. With approximately 7,989 properties across 139 countries, Marriott has established a strong global presence. Looking ahead, the company is poised to capitalize on growth opportunities in emerging markets and enhance its offerings with new luxury brands and sustainable travel initiatives. This strategic focus on innovation and expansion will likely strengthen its market position and drive future profitability.
SWOT Analysis
This analysis outlines the strengths, weaknesses, opportunities, and threats related to Marriott International, Inc. (MAR) to inform strategic decision-making.
Strengths
- Strong global brand recognition
- Diverse portfolio of hotel brands
- Significant market capitalization (78.5B)
Weaknesses
- High operational costs
- Dependency on travel demand
- Vulnerability to economic downturns
Opportunities
- Expansion in emerging markets
- Growth in the luxury segment
- Increasing travel and tourism post-pandemic
Threats
- Intense competition in the lodging industry
- Economic volatility
- Potential impacts from global crises
Overall, Marriott’s strong brand and diverse portfolio position it well for growth, but it must manage its operational costs and navigate competitive pressures. Strategic investments in emerging markets and the luxury segment could mitigate risks and enhance profitability.
Stock Analysis
Marriott International, Inc. (MAR) has demonstrated significant price movements over the past year, reflecting a dynamic trading environment characterized by an overall bullish trend and notable acceleration in stock performance.
Trend Analysis
Over the past two years, MAR’s stock has experienced a price change of +29.75%, indicating a bullish trend. Notable price fluctuations include a high of 304.79 and a low of 213.67, showcasing considerable volatility with a standard deviation of 21.34. The recent trend, from September 21, 2025, to December 7, 2025, shows an 8.96% increase, with an acceleration in the trend as indicated by a trend slope of 3.62 and a standard deviation of 15.32.
Volume Analysis
In the last three months, the total trading volume for MAR reached approximately 891M, with 55.72% attributed to buyer activity, suggesting a buyer-driven market. The volume trend is increasing, with recent trading indicating a buyer dominance of 60.74% from September 21, 2025, to December 7, 2025. This sustained buying activity suggests strong investor sentiment and market participation in MAR’s stock.
Analyst Opinions
Recent analyst recommendations for Marriott International, Inc. (MAR) reflect a cautious approach. Analysts have rated the stock B-, indicating a hold position. Key arguments from analysts, including those from prominent firms, highlight concerns over the company’s return on equity (score of 1) and price-to-book ratio (score of 1), which may indicate potential undervaluation. However, the discounted cash flow score of 4 suggests some growth potential. Overall, the consensus for 2025 leans towards a hold, as investors weigh risks against the potential for recovery in the hospitality sector.
Stock Grades
Marriott International, Inc. (ticker: MAR) has received consistent ratings from several reputable grading companies, indicating a stable outlook.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Hold | 2025-12-04 |
| 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 |
The overall trend in grades for MAR reflects a steady performance, with several firms maintaining their ratings. Notably, the presence of both “Hold” and “Equal Weight” grades suggests that analysts see the stock as stable, but not likely to outperform significantly in the near term.
Target Prices
The consensus among analysts for Marriott International, Inc. (MAR) indicates a positive outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 327 | 274 | 296.33 |
Overall, analysts expect MAR to reach a consensus target price of approximately 296.33, reflecting a healthy range of expectations for the stock’s performance.
Consumer Opinions
Consumer sentiment towards Marriott International, Inc. reflects a mix of satisfaction and areas needing improvement, showcasing the company’s strengths and weaknesses through the voices of its patrons.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent service and friendly staff!” | “Rooms could use some updates; they feel dated.” |
| “Great locations, always a pleasure to stay!” | “High prices for basic amenities.” |
| “Consistently clean and comfortable accommodations.” | “Customer service can be slow during peak times.” |
| “Loyalty program offers great rewards.” | “Check-in process was disorganized.” |
Overall, consumer feedback highlights Marriott’s excellent service and prime locations as strengths, while concerns about outdated facilities and pricing for amenities surface as common weaknesses.
Risk Analysis
In evaluating Marriott International, Inc. (MAR), it’s essential to consider various risks that could affect its performance. Below is a summary of the key risks associated with the company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Economic downturns impacting travel and leisure demand. | High | High |
| Operational Risk | Supply chain disruptions affecting service delivery. | Medium | High |
| Regulatory Risk | Changes in travel regulations and safety protocols. | Medium | Medium |
| Competition Risk | Increased competition from alternative lodging options. | High | Medium |
| Cybersecurity Risk | Threats to customer data and company information. | Medium | High |
Marriott faces significant market risk, particularly with ongoing economic fluctuations that can drastically impact travel and leisure sectors. Additionally, operational risks, such as supply chain disruptions, can severely affect service quality and customer satisfaction.
Should You Buy Marriott International, Inc.?
Marriott International, Inc. (MAR) has demonstrated profitability with a net income of 2.375B in 2024, reflecting a positive net profit margin of 9.46%. The company appears to be creating value, as its return on invested capital (ROIC) of 15.07% exceeds its weighted average cost of capital (WACC) of 8.31%. However, it carries a significant amount of debt, with a total debt of 15.241B, resulting in a debt-to-equity ratio of 0.183. The rating for MAR is currently B-, suggesting a cautious outlook on its financial health and investment potential.
Favorable signals
In the evaluation of Marriott International, Inc. (ticker: MAR), I found several favorable elements. The company has a positive gross margin of 20.32%, indicating efficient production relative to sales. Additionally, the EBIT margin stands at 15.32%, demonstrating strong operational profitability. The net margin of 9.46% is also favorable, reflecting a positive bottom line. Furthermore, the ROIC is at 15.07%, which suggests value creation, while the interest coverage ratio of 5.53 indicates sound financial health in managing interest expenses.
Unfavorable signals
However, there are significant unfavorable signals to consider. The return on equity (ROE) is notably negative at -79.38%, which raises concerns about shareholder value. The price-to-earnings (PE) ratio of 33.38 is considered high, indicating potential overvaluation. Additionally, the current ratio and quick ratio are both at 0.4, suggesting liquidity issues. The debt-to-assets ratio of 58.21% and a negative price-to-book (PB) ratio of -26.5 further indicate financial leverage challenges. Moreover, the growth metrics, such as gross profit growth at -0.45% and EPS growth at -18.17%, reflect declining performance.
Conclusion
Given the unfavorable overall opinion from both the income statement and ratios evaluations, it may appear prudent to wait for more favorable conditions before considering an investment. The recent seller volume being lower than buyer volume suggests that there could potentially be a return of buyers, but caution is advised in light of the significant unfavorable metrics identified.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Marriott International (NASDAQ:MAR) Price Target Raised to $283.00 at Truist Financial – MarketBeat (Dec 05, 2025)
- Why Is Marriott (MAR) Up 8.3% Since Last Earnings Report? – Yahoo Finance (Dec 04, 2025)
- Marriott expects RevPAR at lower end of guidance on soft U.S. trends (MAR:NASDAQ) – Seeking Alpha (Dec 04, 2025)
- Truist Securities Maintains Hold on Marriott International (MAR), Raises Price Target | MAR Stock News – GuruFocus (Dec 04, 2025)
- Guggenheim Capital LLC Has $18.99 Million Stock Position in Marriott International, Inc. $MAR – MarketBeat (Dec 05, 2025)
For more information about Marriott International, Inc., please visit the official website: marriott.com
