Marriott's Global Travel Demand Remains Resilient Amid Economic Uncertainty

While elevated inflation has potential to impact near-term travel demand, we expect Marriott to expand room and revenue share in the hotel industry over the next decade. Our constructive stance is driven by a favorable next-generation traveler position supported by renovated and newer brands, as Marriott has added several new brands since 2007 and renovated a meaningful percentage of core Marriott and Courtyard hotels in the past few year. Also, we see Marriott having an industry-leading loyalty program, with 182 million members (as of March 31, 2023), which incentivizes third-party hotel owners to join the company's brands. Additionally, we believe the acquisition of Starwood (closed in September 2016) has strengthened Marriott's long-term brand advantage, as Starwood's global luxury portfolio complemented Marriott's dominant upper-scale position in North America.