Why Marriott International Stock Was Up 5.8% Today

What happened

Shares of hotel company Marriott International (NASDAQ: MAR) were up as much as 5.8% in trading on Tuesday after the company reported fourth-quarter 2021 financial results. Shares closed the day up 5.7%.

So what

Total revenue jumped 105% from a year ago to $4.45 billion, and the company swung from a net loss of $164 million to net income of $468 million, or $1.42 per share. The comparison was against a very weak quarter in 2020 when COVID-19 led to many shutdowns around the world, so they should be taken with a grain of salt.

People checking into a hotel.

Image source: Getty Images.

Comparable revenue per available room was up 124.5% worldwide versus a year ago and down 19% from two years ago. The decline was only 15.3% in the U.S. and Canada but 28.2% in international markets.

Now what

There is clearly a recovery taking place in travel around the world, and companies like Marriott are benefiting from the bounce in revenue and the cost reductions put in place during the pandemic. Revenue might not be back to 2019 levels, but net income of $468 million compares to net income of $279 million in the fourth quarter of 2019. Given the operating leverage in the hotel business and the momentum in travel as the pandemic's economic impact slows, I still think there's upside from here.

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Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends Marriott International and recommends the following options: long January 2023 $115 calls on Marriott International. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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