Marriott International, Inc. MAR marked its official debut in the affordable midscale segment in the United States and Canada with the opening of City Express by Marriott Duluth (GA). This launch also established the first City Express by Marriott property in the United States.
City Express by Marriott's expansion into the United States and Canada strengthens the company's midscale presence. The brand, known for its efficient and seamless stay experience, has gained traction in the Caribbean and Latin America (CALA) region. This move aligns with the company's strategy to meet the needs of a wide range of travelers in these markets.
Marriott's Focus on Expanding City Express Brand
Marriott has been expanding in the fast-growing affordable midscale segment since acquiring the City Express brand portfolio in 2023. The company has introduced midscale brands tailored to regional markets, including City Express by Marriott in CALA, the United States and Canada, Four Points Flex by Sheraton in Europe, the Middle East, Africa, and Asia Pacific (excluding China). This also includes StudioRes, an extended-stay brand set to debut this year in the United States and Canada. This strategy aligns with MAR’s efforts to attract new customers and strengthen its presence in key growth markets.
Marriott is moving forward with plans to expand City Express by Marriott across the United States and Canada in 2025 and beyond, with more than 45 signed agreements in place. More than a dozen properties are scheduled to open in 2025, strategically located in key destinations. This includes City Express by Marriott New Orleans Northeast and City Express by Marriott Chicago Downtown, set to open in the second quarter of 2025, along with City Express by Marriott Orlando International Drive, City Express by Marriott Port Hope (Ontario, Canada) and additional locations set to open later in the year.
The company is also expanding City Express by Marriott across the CALA region. It has announced plans to introduce the brand in Argentina, Bolivia, Nicaragua and Peru, with eight properties expected to open within three years. MAR also aims to grow the brand’s portfolio in Brazil in the near future.
MAR’s Price Performance
Shares of Marriott have lost 14.6% in the past three months compared with the Zacks Hotels and Motels industry’s 9.8% decline. Although the company has underperformed the industry in the said period, it is likely to benefit from robust global travel demand, driving growth in international markets and steady performance in the United States and Canada, along with solid global booking trends.
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Also, increased business transient demand and leisure transient RevPAR are encouraging. The company entered 2025 with strong business momentum. At the end of 2024, global group revenues were tracking 6% higher for 2025 and 10% higher for 2026, driven by increases in both room nights and ADR.
MAR’s Zacks Rank & Stocks to Consider
Marriott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
Adtalem Global Education Inc. ATGE sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
ATGE delivered a trailing four-quarter earnings surprise of 21.6%, on average. The stock has gained 8.6% in the past three months. The Zacks Consensus Estimate for ATGE’s fiscal 2025 sales and earnings per share (EPS) indicates growth of 10.1% and 23.8%, respectively, from the year-ago levels.
Mattel, Inc. MAT currently flaunts a Zacks Rank #1. MAT delivered a trailing four-quarter earnings surprise of 37.6%, on average. The stock has gained 12.4% in the past three months.
The Zacks Consensus Estimate for MAT’s 2025 sales and EPS indicates growth of 1.4% and 4.9%, respectively, from the year-ago levels.
Live Nation Entertainment, Inc. LYV presently carries a Zacks Rank #2 (Buy). LYV delivered a trailing four-quarter earnings surprise of negative 2%, on average. The stock has declined 8.9% in the past three months.
The Zacks Consensus Estimate for LYV’s 2025 sales and EPS indicates growth of 12.7% and 6.2%, respectively, from the year-ago levels.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
