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Here's How Much You'd Have If You Invested $1000 in Marriott International a Decade Ago

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Marriott International (MAR - Free Report) ten years ago? It may not have been easy to hold on to MAR for all that time, but if you did, how much would your investment be worth today?

Marriott International's Business In-Depth

With that in mind, let's take a look at Marriott International's main business drivers.

Marriott International Inc. is a leading worldwide hospitality company focused on lodging management and franchising, after the spin-off of its timeshare business into a publicly-traded company in Nov 2011.

During first-quarter 2023, the company added 79 new properties (11,015 rooms) to its worldwide lodging portfolio. 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.

As of Mar 31, 2023, the company operated, franchised and acted as a licensor of hotels and timeshare properties to more than 8,400 properties across 138 countries and territories under 30 brand names.

The company has grouped its brand portfolio into three groups:

Luxury: The company’s classic luxury hotel brands include JW Marriott, The Ritz-Carlton, and St. Regis. Meanwhile, Marriott’s distinctive luxury hotel brands comprise W Hotels, The Luxury Collection, EDITION, and Bulgari.

Premium: The company’s classic premium hotel brands include Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, and Marriott Vacation Club. Moreover, its distinctive premium hotel brands comprise Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio and Design Hotels.

Select: The company’s classic select hotel brand include Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, and Protea Hotels. Meanwhile, Marriott’s distinctive select hotel brands comprise Aloft, AC Hotels by Marriott, Element, and Moxy.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Marriott International a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in June 2013 would be worth $4,400.79, or a 340.08% gain, as of June 29, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 172.48% and gold's return of 48.84% over the same time frame.

Going forward, analysts are expecting more upside for MAR.

Shares of Marriott have outperformed the industry in the past three months. The company reported impressive first-quarter 2023 results. Earnings and revenues surpassed the Zacks Consensus Estimates. The top and the bottom line increased on a year-over-year basis. The upside was backed by solid demand across all the customer segments and expansion plans. During the first quarter, a significant acceleration was observed in the International market with RevPAR growth of 63% year over year, driven by strong demand after travel restrictions were lifted, throughout Asia Pacific. Earnings estimates for 2023 have increased in the past 60 days. Marriott anticipates the International comp systemwide RevPAR to grow 22-25% for 2023. However, constrained RevPAR in China is a concern.

Over the past four weeks, shares have rallied 5.88%, and there have been 10 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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