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Marriott Extends Partnership With PepsiCo, Eyes Sales Growth
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Marriott International, Inc. (MAR - Free Report) has announced that it protracted its partnership with PepsiCo (PEP - Free Report) under a multi-year agreement. The contract makes PepsiCo the official beverage provider for Marriott’s legacy brands, including Starwood. The deal is a cumulative extension of the two company’s 25-year long relationship.
PepsiCo, which has been Marriott’s carbonated beverage provider since 1992, already has a reach to 4,000 properties in North America and more than 850 hotels, globally. After the extended agreement, PepsiCo will be providing beverages to more than 6,300 properties, including the additional 1,500 hotels and those joining the Marriott portfolio during the term of the agreement.
How Will Marriott Gain From Extended Partnership?
Marriott’s riveting growth potential lies in continual partnerships, through which the company is constantly expanding its global footprint. Moreover, these partnerships help Marriott enhance its guests’ satisfaction, which, in turn, drives its customers’ loyalty and thereby revenues. The move, therefore, further underscores Marriott’s efforts to drive incremental benefits to its guests.
Under the partnership, PepsiCo will further sustain Marriott’s growth strategies. Overall guest experience is expected to get elevated with both the companies joining, and bringing world-class beverage and culinary offerings to guests. Furthermore, both the company resides on the same page when it comes to policies aimed at sustainable environment. Additionally, PepsiCo can provide unique global sports and entertainment experiences to Marriott's loyalty members by advantageously aligning with Marriott's loyalty program.
Marriott’s customers will also have access to all PepsiCo beverage offerings, such as Pepsi, Aquafina, LIFEWTR, Mountain Dew, bubbly, ready-to-drink coffee from Starbucks (SBUX - Free Report) , Tropicana, Lipton Iced Tea and Gatorade. Moreover, food brands like Quaker Oats and Frito-Lay snacks will find their way to Marriott’s large customer base.
We believe that such a partnership will help Marriott to witness revenue growth in the future. For 2019, the Zacks Consensus Estimate predicts sales growth of 4.6% year over year. For the current year, the company expects comparable system-wide revenue per available room (RevPAR) to increase 2-3% in North America, 5-6% outside North America and 3-4% worldwide on a constant-dollar basis.
Outperformance to Continue on Strong Brand Presence
The extended relationship with PepsiCo is expected to further strengthen Marriott’s position in the hotel industry. Outrunning peers like Hyatt (H - Free Report) , Marriott is the largest company in the luxury and lifestyle space, which includes brands that own more than 6,700 properties in 130 countries and territories. Marriott’s extensive portfolio and a strong brand position allow it to charge a premium room rate in the highly competitive lodging industry.
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Marriott Extends Partnership With PepsiCo, Eyes Sales Growth
Marriott International, Inc. (MAR - Free Report) has announced that it protracted its partnership with PepsiCo (PEP - Free Report) under a multi-year agreement. The contract makes PepsiCo the official beverage provider for Marriott’s legacy brands, including Starwood. The deal is a cumulative extension of the two company’s 25-year long relationship.
PepsiCo, which has been Marriott’s carbonated beverage provider since 1992, already has a reach to 4,000 properties in North America and more than 850 hotels, globally. After the extended agreement, PepsiCo will be providing beverages to more than 6,300 properties, including the additional 1,500 hotels and those joining the Marriott portfolio during the term of the agreement.
How Will Marriott Gain From Extended Partnership?
Marriott’s riveting growth potential lies in continual partnerships, through which the company is constantly expanding its global footprint. Moreover, these partnerships help Marriott enhance its guests’ satisfaction, which, in turn, drives its customers’ loyalty and thereby revenues. The move, therefore, further underscores Marriott’s efforts to drive incremental benefits to its guests.
Under the partnership, PepsiCo will further sustain Marriott’s growth strategies. Overall guest experience is expected to get elevated with both the companies joining, and bringing world-class beverage and culinary offerings to guests. Furthermore, both the company resides on the same page when it comes to policies aimed at sustainable environment. Additionally, PepsiCo can provide unique global sports and entertainment experiences to Marriott's loyalty members by advantageously aligning with Marriott's loyalty program.
Marriott’s customers will also have access to all PepsiCo beverage offerings, such as Pepsi, Aquafina, LIFEWTR, Mountain Dew, bubbly, ready-to-drink coffee from Starbucks (SBUX - Free Report) , Tropicana, Lipton Iced Tea and Gatorade. Moreover, food brands like Quaker Oats and Frito-Lay snacks will find their way to Marriott’s large customer base.
We believe that such a partnership will help Marriott to witness revenue growth in the future. For 2019, the Zacks Consensus Estimate predicts sales growth of 4.6% year over year. For the current year, the company expects comparable system-wide revenue per available room (RevPAR) to increase 2-3% in North America, 5-6% outside North America and 3-4% worldwide on a constant-dollar basis.
Outperformance to Continue on Strong Brand Presence
The extended relationship with PepsiCo is expected to further strengthen Marriott’s position in the hotel industry. Outrunning peers like Hyatt (H - Free Report) , Marriott is the largest company in the luxury and lifestyle space, which includes brands that own more than 6,700 properties in 130 countries and territories. Marriott’s extensive portfolio and a strong brand position allow it to charge a premium room rate in the highly competitive lodging industry.
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On the back of a vibrant brand presence and continual expansion strategies, shares of this Zacks Rank #3 (Hold) company have gained 23.1%, outperforming the industry’s rally of 6.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks From Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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