- Marriott International‘s first-quarter adjusted earnings per share (EPS) exceeded expectations, coming in at $2.32 versus an estimated $2.24 and up from $2.13 year-over-year (y/y).
- The company’s EPS was reported at $2.39 compared to $1.93 y/y.
- Adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) rose by 6.6% y/y to $1.22 billion, surpassing the estimate of $1.18 billion.
- Adjusted operating income increased by 6.7% y/y to $1.02 billion, exceeding the estimated $978.5 million.
- Adjusted operating margin improved to 63% from 62% y/y, beating the estimate of 61.8%.
- Marriott’s total location count grew by 6.8% y/y to 9,463, slightly above the estimated 9,439 locations.
- The total number of rooms at the end of the period was 1.72 million, a 4.6% increase y/y, though slightly below the estimate of 1.73 million.
- Marriott anticipates net rooms growth for the full year 2025 to approach 5% if their pending purchase finalizes before year-end.
- CEO Anthony Capuano attributed strong financial results to sustained travel demand, brand strength, and a fee-driven business model.
- Despite macro-economic uncertainties, global Revenue per Available Room (RevPAR) rose over 4%, mainly due to higher Average Daily Rate (ADR).
- International markets experienced robust growth, with RevPAR increasing nearly 6% and significant gains in the Asia-Pacific (APEC) region.
- The stock analysis suggests 9 buy recommendations, 18 hold, and 1 sell recommendation for Marriott shares.
Marriott International on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely monitoring Marriott International‘s financial performance and strategic moves. In a report titled “Marriott International: How It’s Monetizing Loyalty & Direct Bookings!”, Baptista Research highlights the strong fourth-quarter 2024 earnings of Marriott International. The company’s worldwide Revenue Per Available Room (RevPAR) witnessed a 5% increase, with key metrics like Average Daily Rate (ADR) growing by 3% and occupancy improving by over 1 percentage point. Furthermore, Marriott International achieved significant net rooms growth of 6.8% for the year, mainly driven by strategic partnerships and conversions, contributing significantly to its success.
Another report by Baptista Research, titled “Why Marriott International’s Expansion in Greater China Could Be a Game-Changer for Investors! – Major Drivers” sheds light on the company’s third-quarter financial performance in 2024. Despite facing challenges within the global hospitality landscape, Marriott International reported a substantial 6% year-over-year increase in net rooms, showcasing its robust expansion efforts and strong development activities. The global Revenue Per Available Room (RevPAR) rose by 3% for the quarter, primarily fueled by a 2.5% increase in Average Daily Rate (ADR). Particularly, the group segment exhibited remarkable growth, posting a 10% rise in RevPAR, indicating sustained demand within this category.
A look at Marriott International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Marriott International Inc., a global leader in the hotel industry, is poised for a positive long-term outlook based on its Smartkarma Smart Scores. With strong scores in Growth and Resilience, the company demonstrates a promising future in terms of expanding its business and withstanding economic challenges. The Growth score indicates potential for Marriott to continue growing its operations and profitability, while the Resilience score suggests the company’s ability to adapt and thrive in various market conditions.
Although the Value score is low, indicating that the stock may not be currently undervalued, Marriott International‘s overall outlook remains favorable due to its solid scores in Dividend and Momentum. The Dividend score reflects the company’s ability to provide consistent dividend payouts to investors, adding to its attractiveness for income-seeking shareholders. Additionally, the Momentum score indicates a positive trend in the company’s stock performance, further supporting a promising future for Marriott International.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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