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Marriott (MAR) Collection of Brands to Open 70 Hotels Globally

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Marriott International, Inc.’s (MAR - Free Report) collection brands, Autograph Collection, Luxury Collection and Tribute Portfolio, have announced plans to expand global footprint to 70 new locations in 2021. The company will also enter 24 new markets in 2021. These three are included in the Marriott Bonvoy’s collection brands. Following the announcement, shares of the company gained 2.2% during trading hours on Mar 15. Moreover, the company announced that its Marriott Bonvoy portfolio of independent hotel brands has reached a milestone, with the opening of 200th Autograph Collection hotel, 50th Tribute Portfolio hotel and the anticipated opening of 120th Luxury Collection hotel.

Marriott Bonvoy's Collection brands currently include significant hotels around the world, such as The Chatwal, A Luxury Collection Property, New York City; Cotton House Hotel, Autograph Collection, Barcelona; and The Great Northern Hotel, A Tribute Portfolio Hotel, London.

Expansion Plans & Share Performance

Marriott is consistently trying to expand presence worldwide and capitalize on the demand for hotels in international markets. Moving ahead, the company plans to significantly expand global portfolio of luxury and lifestyle brands. At the end of fourth-quarter 2020, Marriott's development pipeline had nearly 2,900 hotels, with more than 498,000 rooms. Further, nearly 229,000 rooms were under construction. Despite the coronavirus pandemic, the company added approximately 63,000 rooms globally.

In 2021, the company anticipates net room growth in the range of 3% to 3.5%. The hotel company is also trying to strengthen presence outside the United States, especially in Asia, Latin America, Middle East and Africa. Meanwhile, the company’s European pipeline has grown consistently in the recent past and is expected to continue going forward. Within Asia-Pacific, China promises immense growth potential despite the economic slowdown

Coming to share performance, Marriott has surged 42.5% in the past six months compared with the industry’s 33.7% rally. The company has been benefiting from an extensive portfolio and a strong brand position as well as steady recovery in the U.S. and China markets, RevPAR and occupancy rates. However, the company’s earnings estimates for 2021 have moved down over the past seven days, depicting analysts’ concern regarding its bottom-line growth potential.

Zacks Rank

Marriott — which shares space with Hilton Worldwide Holdings Inc. (HLT - Free Report) , Extended Stay America, Inc. and Hyatt Hotels Corporation (H - Free Report) in the Zacks Hotels and Motels industry — currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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