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Marriott (MAR) Expands its Extended Stay Brand StudioRes

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Marriott International, Inc. (MAR - Free Report) recently announced the groundbreaking of its first inaugural StudioRes brand hotel in Fort Myers, FL. The construction, led by Concord Hospitality, signifies the commencement of Marriott's affordable midscale extended stay brand in the United States and Canada. The StudioRes brand was announced in June 2023.

The StudioRes property in Fort Myers, developed by Concord Hospitality and Whitman Peterson, is set to open in Spring 2025. Concord, along with its long-time partner, plans to develop approximately 50 StudioRes properties across various submarkets in major U.S. cities. Several more properties are expected to break ground in the coming months.

StudioRes, aligned with Marriott's regional lodging strategy, aims to provide affordable modern comfort for extended stays in the United States and Canada. The 124-room, 54,000-square-foot prototype is expected to be Marriott's most cost-effective key product.

Expansion to Drive Growth

Marriott is consistently expanding its global footprint to meet the growing demand for international hotels. The company aims to enhance its worldwide portfolio, focusing on luxury and lifestyle brands. As of the third quarter of 2023, Marriott's development pipeline totaled 3,239 hotels with approximately 557,000 rooms. More than 238,000 rooms were under construction. During the quarter, the company added 97 properties (17,192 rooms) to its worldwide lodging portfolio.

The hotel company 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 constantly in the recent past and is expected to continue going forward.
 

Zacks Investment Research
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Marriott’s shares have gained 19.7% in the past six months compared with the industry’s 11.6% growth. The company is benefiting from its focus on expansion initiatives, digital innovation and loyalty programs.

Zacks Rank & Key Picks

Marriott currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Zacks Consumer Discretionary sector:

Virco Mfg. Corporation (VIRC - Free Report) sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6% on average. VIRC’s shares have surged 123.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.

DraftKings Inc. (DKNG - Free Report) flaunts a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 13.2% on average. Shares of DKNG have increased 160.9% in the past year.

The Zacks Consensus Estimate for DKNG’s 2024 sales and EPS indicates a rise of 28% and 85.1%, respectively, from the year-ago period’s levels.

Skechers U.S.A., Inc. (SKX - Free Report) flaunts a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 50.3% on average. Shares of SKX have increased 37.5% in the past year.

The Zacks Consensus Estimate for SKX’s 2024 sales and EPS indicates a rise of 10.3% and 16.7%, respectively, from the year-ago period’s levels.

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