Morningstar

Marriott International Inc Class A MAR

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Stock XNAS Rating as of
$253.04 +2.33 (0.93%)
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As of Delayed Price Closed

Company Report

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Marriott: Sonder Partnership Expands Its Nontraditional Accommodation Offering and Brand Edge

Dan Wasiolek

Following its partnership with no-moat MGM’s Las Vegas portfolio in July 2023, Marriott announced a 20-year license agreement with Sonder on Aug. 19, 2024. The deal is set to add about 9,000 rooms to Marriott’s portfolio by the end of this year. As a result, we have increased our 2024 net unit growth to 6.3%, up from 5.8% prior, and lifted our fair value estimate to $223 per share from $221. We see shares as appropriately valued but wouldn’t require much discount to recommend shares of this industry-leading brand.

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Price vs Fair Value

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MAR is trading within a range we consider fairly valued.
Price
$253.04
Fair Value
$141.00
Uncertainty
Medium
1-Star Price
$827.44
5-Star Price
$993.10
Economic Moat
Kbm
Capital Allocation
Gznyknsy

Bulls Say, Bears Say

Bulls

Marriott is positioned to benefit from the its expanding presence geographically and across price points, with its recent brand launches, Spark (midscale) and StudioRes (extended-stay).

Bears

Independent hotels and home and vacation rentals present a competitive threat, and the advancement of technology and its use by next-generation travelers increase the access and awareness of these properties.

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News

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Trading Information

Previous Close Price
$250.71
Day Range
$251.67–254.43
52-Week Range
$180.75–260.57
Bid/Ask
$252.71 / $253.50
Market Cap
$71.24 Bil
Volume/Avg
1.2 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
24.54
Price/Sales
3.04
Dividend Yield (Trailing)
0.91%
Dividend Yield (Forward)
1.00%
Total Yield
6.53%

Company Profile

Marriott operates 1.7 million rooms across roughly 30 brands. At the end of 2023, luxury represented roughly 10% of total rooms, premium 42%, select service was 46%, midscale 1%, and other 1%. Marriott, Courtyard, and Sheraton are the largest brands, while Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands. Managed and franchised represented 97% of total rooms as of Dec. 31, 2023. North America makes up 63% of total rooms. Managed, franchise, and incentive fees represent the vast majority of revenue and profitability for the company.
Sector
Consumer Cyclical
Industry
Lodging
Stock Style Box
Large Core
Total Number of Employees
411,000
Website
https://www.marriott.com

Competitors

Valuation

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Metric
MAR
H
IHG
Price/Earnings (Normalized)
 24.5444.1126.02
Price/Book Value
 —4.13—
Price/Sales
 3.042.503.97
Price/Cash Flow
 23.4033.5225.72
Price/Earnings
MAR
H
IHG

Financial Strength

Metric
MAR
H
IHG
Quick Ratio
 0.390.750.84
Current Ratio
 0.420.820.85
Interest Coverage
 6.207.456.22
Quick Ratio
MAR
H
IHG

Profitability

Metric
MAR
H
IHG
Return on Assets (Normalized)
 11.86%8.54%15.42%
Return on Equity (Normalized)
 —28.97%—
Return on Invested Capital (Normalized)
 29.61%15.61%56.03%
Return on Assets
MAR
H
IHG

Lodging Industry Comparables

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1-Day Chart
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Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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ZbsddkxdBnf$17.7 Bil
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LbgqgmmKnjfl$15.6 Bil
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—Hgsjbg$12.2 Bil
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RgyvvjlbYtvjk$6.4 Bil
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CHH
NzlnljrqNctvv$6.3 Bil

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