We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marriott (MAR) on Fire: What's Driving the Stock Higher?
Read MoreHide Full Article
Marriott International, Inc. (MAR - Free Report) is benefiting from acceleration in international RevPAR, expansion efforts and digital initiatives. In the past year, the stock has increased 26% compared with the industry’s growth of 19.7%.
MAR is also gaining from improvement in base management and franchise fees. In 2023, our model predicts base management and franchise fees to increase 21.9% and 10.8% year over year, respectively. The Zacks Rank #2 (Buy) company’s earnings and sales in 2023 are likely to witness growth of 22.8% and 10.7% year over year, respectively.
Let’s check out the factors likely to spur MAR’s growth.
Growth Catalysts
Robust demand in United States, Canada and Asia Pacific is driving the company’s performance. In the first quarter, global demand for hotels surged across all regions. In the United States and Canada, RevPAR increased 26%, with occupancy reaching 66% and ADR rising by 10% compared with the last year’s readings. Internationally, RevPAR grew by an impressive 63%, with ADR increasing by 16% and occupancy improving 18 percentage points.
Attributes such as pent-up demand for all types of travel, the shift of spending toward experiences versus goods, sustained high levels of employment, lifting of travel restrictions and opening borders (in most markets) are likely to aid MAR in the upcoming periods.
Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. Management plans to significantly expand its global portfolio of luxury and lifestyle brands. During second-quarter 2022, it announced an agreement with Vinpearl to open eight hotels in Vietnam. The deal is expected to add 1,700 rooms to the system.
Image Source: Zacks Investment Research
At the end of first-quarter 2023, Marriott's development pipeline totaled 3,060 hotels, with approximately 502,000 rooms. Nearly 200,000 rooms were under construction. During the quarter, the company added 79 new properties (11,000 rooms) to its worldwide lodging portfolio.
For 2023, MAR anticipates net room growth in the range of 4-4.5% year over year. It is also trying to strengthen its presence outside the United States, especially in Asia, Latin America, the Middle East and Africa. The company’s European pipeline has grown consistently in the recent past and is expected to sustain the momentum going forward.
Digital innovations and social media are starting to play an increasingly important role in hotel bookings. Marriott is actively utilizing its digital platforms to engage with customers, which have proven to be highly profitable for stakeholders. During first quarter, it witnessed record-breaking performance in digital channels, with 31% increase in mobile app users, 17% rise in digital room nights and 26% gain in digital revenues compared with the prior-year quarter’s levels.
Other Key Picks
Some other top-ranked stocks from the Zacks Consumer Discretionary sector include Bluegreen Vacations Holding Corporation , Skechers U.S.A., Inc. (SKX - Free Report) and Crocs, Inc. (CROX - Free Report) .
Bluegreen Vacations presently sports a Zacks Rank #1 (Strong Buy). BVH has a trailing four-quarter earnings surprise of 24.7%, on average. The stock has gained 35.9% in the year-to-date period. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BVH’s 2023 sales and earnings per share (EPS) indicates rises of 3.6% and 17.6%, respectively, from the year-ago period’s levels.
Skechers currently flaunts a Zacks Rank #1. SKX delivered a trailing four-quarter earnings surprise of 18.8%, on average. The stock has increased 22.8% in the year-to-date period.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates improvements of 7.7% and 31.9%, respectively, from the year-ago period’s levels.
Crocs carries a Zacks Rank #2 at present. CROX has a trailing four-quarter earnings surprise of 19.6%, on average. The stock has declined 1.3% in the year-to-date period.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates growth of 13.1% and 5.6%, respectively, from the year-ago period’s levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Marriott (MAR) on Fire: What's Driving the Stock Higher?
Marriott International, Inc. (MAR - Free Report) is benefiting from acceleration in international RevPAR, expansion efforts and digital initiatives. In the past year, the stock has increased 26% compared with the industry’s growth of 19.7%.
MAR is also gaining from improvement in base management and franchise fees. In 2023, our model predicts base management and franchise fees to increase 21.9% and 10.8% year over year, respectively. The Zacks Rank #2 (Buy) company’s earnings and sales in 2023 are likely to witness growth of 22.8% and 10.7% year over year, respectively.
Let’s check out the factors likely to spur MAR’s growth.
Growth Catalysts
Robust demand in United States, Canada and Asia Pacific is driving the company’s performance. In the first quarter, global demand for hotels surged across all regions. In the United States and Canada, RevPAR increased 26%, with occupancy reaching 66% and ADR rising by 10% compared with the last year’s readings. Internationally, RevPAR grew by an impressive 63%, with ADR increasing by 16% and occupancy improving 18 percentage points.
Attributes such as pent-up demand for all types of travel, the shift of spending toward experiences versus goods, sustained high levels of employment, lifting of travel restrictions and opening borders (in most markets) are likely to aid MAR in the upcoming periods.
Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. Management plans to significantly expand its global portfolio of luxury and lifestyle brands. During second-quarter 2022, it announced an agreement with Vinpearl to open eight hotels in Vietnam. The deal is expected to add 1,700 rooms to the system.
Image Source: Zacks Investment Research
At the end of first-quarter 2023, Marriott's development pipeline totaled 3,060 hotels, with approximately 502,000 rooms. Nearly 200,000 rooms were under construction. During the quarter, the company added 79 new properties (11,000 rooms) to its worldwide lodging portfolio.
For 2023, MAR anticipates net room growth in the range of 4-4.5% year over year. It is also trying to strengthen its presence outside the United States, especially in Asia, Latin America, the Middle East and Africa. The company’s European pipeline has grown consistently in the recent past and is expected to sustain the momentum going forward.
Digital innovations and social media are starting to play an increasingly important role in hotel bookings. Marriott is actively utilizing its digital platforms to engage with customers, which have proven to be highly profitable for stakeholders. During first quarter, it witnessed record-breaking performance in digital channels, with 31% increase in mobile app users, 17% rise in digital room nights and 26% gain in digital revenues compared with the prior-year quarter’s levels.
Other Key Picks
Some other top-ranked stocks from the Zacks Consumer Discretionary sector include Bluegreen Vacations Holding Corporation , Skechers U.S.A., Inc. (SKX - Free Report) and Crocs, Inc. (CROX - Free Report) .
Bluegreen Vacations presently sports a Zacks Rank #1 (Strong Buy). BVH has a trailing four-quarter earnings surprise of 24.7%, on average. The stock has gained 35.9% in the year-to-date period. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BVH’s 2023 sales and earnings per share (EPS) indicates rises of 3.6% and 17.6%, respectively, from the year-ago period’s levels.
Skechers currently flaunts a Zacks Rank #1. SKX delivered a trailing four-quarter earnings surprise of 18.8%, on average. The stock has increased 22.8% in the year-to-date period.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates improvements of 7.7% and 31.9%, respectively, from the year-ago period’s levels.
Crocs carries a Zacks Rank #2 at present. CROX has a trailing four-quarter earnings surprise of 19.6%, on average. The stock has declined 1.3% in the year-to-date period.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates growth of 13.1% and 5.6%, respectively, from the year-ago period’s levels.