How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Marriott International (MAR) ten years ago? It may not have been easy to hold on to MAR for all that time, but if you did, how much would your investment be worth today?
Marriott International's Business In-Depth
With that in mind, let's take a look at Marriott International's main business drivers.
Marriott International Inc. is a leading worldwide hospitality company focused on lodging management and franchising after the spin-off of its timeshare business into a publicly traded company in Nov 2011.
During third-quarter 2023, the company added 97 properties (17,192 rooms) to its worldwide lodging portfolio. At the end of third-quarter 2023, Marriott's development pipeline totaled 3,239 hotels, with approximately 557,000 rooms. More than 238,000 rooms were under construction.
As of Sep 30, 2023, the company operated, franchised and acted as a licensor of hotels and timeshare properties to more than 8,675 properties across 139 countries and territories under more than 30 brand names.
The company has grouped its brand portfolio into three groups:
Luxury: The company’s classic luxury hotel brands include JW Marriott, The Ritz-Carlton, and St. Regis. Meanwhile, Marriott’s distinctive luxury hotel brands comprise W Hotels, The Luxury Collection, EDITION and Bulgari.
Premium: The company’s classic premium hotel brands include Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, and Marriott Vacation Club. Moreover, its distinctive premium hotel brands comprise Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio and Design Hotels.
Select: The company’s classic select hotel brands include Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, and Protea Hotels. Meanwhile, Marriott’s distinctive select hotel brands comprise Aloft, AC Hotels by Marriott, Element, and Moxy.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Marriott International, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in February 2014 would be worth $5,011.88, or a gain of 401.19%, as of February 13, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 176.04% and gold's return of 50.37% over the same time frame.
Looking ahead, analysts are expecting more upside for MAR.
Shares of Marriott have outperformed the industry in the past year. The company has been benefiting from robust leisure demand and solid global booking trends. Also, substantial RevPAR growth in international markets added to the upside. With global trends improving, the company expects the recovery momentum to continue. Attributes such as pent-up demand for all types of travel, the shift of spending toward experiences versus goods and lifting of travel restrictions are likely to aid the company in the upcoming periods. Also, the emphasis on expansion initiatives, digital innovation and the loyalty program bode well. However, challenging macroeconomic conditions and high debt levels remain a concern. Earnings estimates for 2024 have declined in the past 30 days, depicting analysts' concern regarding the stock's growth potential.Shares have gained 10.35% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.