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Marriott (MAR) Announces Strategic Partnership With Delonix
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Marriott International, Inc. (MAR - Free Report) recently announced a strategic collaboration with Delonix Group to boost its presence in mainland China. The initiative aims to expand Marriott's Tribute Portfolio brand and add 100 full-service Delonix hotels to the portfolio.
Per the agreement, MAR will franchise the Tribute Portfolio brand with certain Delonix Group hotels (including Grand New Century and other premium brand locations). It emphasized hotel accessibility (via both companies' direct booking channels) and integrating the properties into the respective company’s loyalty program.
The collaboration is designed to offer additional advantages to hotel owners and enhance the travel experiences of Chinese tourists. It intends to leverage MAR's Tribute Portfolio brand, cost-effective affiliation structure, extensive loyalty program and Delonix Group's Betterwood membership program.
Yibing Mao, president of Greater China at Marriott International, stated optimism about the collaboration's potential to enhance guest experiences and contribute to Marriott's growth across China.
Emphasis on China Market
During the third quarter of 2023, the company reported a strengthening of demand, particularly in Greater China. During the quarter, comparable system-wide RevPAR in Greater China grew 47.4% year over year. The upside was primarily backed by the strengthening of cross-border travel.
Although the company reported improvements in international airlift (in Greater China), it lagged pre-pandemic levels. Going forward, the company anticipates the recovery momentum to persist. Healthy global lodging demand and strong pipeline growth are likely to aid the company in the upcoming periods.
Price Performance
Image Source: Zacks Investment Research
Marriott’s shares have gained 25.8% in the past three months compared with the industry’s 21.5% growth. The company has been benefiting from robust leisure demand and solid global booking trends. Also, substantial RevPAR growth in international markets added to the upside. With global trends improving, the company expects the recovery momentum to continue. Attributes such as pent-up demand for all types of travel, the shift of spending toward experiences versus goods and lifting of travel restrictions are likely to aid the company in the upcoming periods. Also, the emphasis on expansion initiatives, digital innovation and the loyalty program bode well. Earnings estimates for 2024 have increased in the past 60 days, depicting analysts’ optimism regarding the stock’s growth potential.
Zacks Rank & Key Picks
Marriott currently carries a Zacks Rank #3 (Hold).
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.
H World Group Limited (HTHT - Free Report) currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 34.1% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.9% and 9.8%, respectively, from the year-ago period’s levels.
Wyndham Hotels & Resorts, Inc. (WH - Free Report) carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 6.6%, on average. The stock has gained 1.6% in the past year.
The Zacks Consensus Estimate for WH’s fiscal 2024 sales and EPS implies a decline of 4.5% and 7.7%, respectively, from the year-ago levels.
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Marriott (MAR) Announces Strategic Partnership With Delonix
Marriott International, Inc. (MAR - Free Report) recently announced a strategic collaboration with Delonix Group to boost its presence in mainland China. The initiative aims to expand Marriott's Tribute Portfolio brand and add 100 full-service Delonix hotels to the portfolio.
Per the agreement, MAR will franchise the Tribute Portfolio brand with certain Delonix Group hotels (including Grand New Century and other premium brand locations). It emphasized hotel accessibility (via both companies' direct booking channels) and integrating the properties into the respective company’s loyalty program.
The collaboration is designed to offer additional advantages to hotel owners and enhance the travel experiences of Chinese tourists. It intends to leverage MAR's Tribute Portfolio brand, cost-effective affiliation structure, extensive loyalty program and Delonix Group's Betterwood membership program.
Yibing Mao, president of Greater China at Marriott International, stated optimism about the collaboration's potential to enhance guest experiences and contribute to Marriott's growth across China.
Emphasis on China Market
During the third quarter of 2023, the company reported a strengthening of demand, particularly in Greater China. During the quarter, comparable system-wide RevPAR in Greater China grew 47.4% year over year. The upside was primarily backed by the strengthening of cross-border travel.
Although the company reported improvements in international airlift (in Greater China), it lagged pre-pandemic levels. Going forward, the company anticipates the recovery momentum to persist. Healthy global lodging demand and strong pipeline growth are likely to aid the company in the upcoming periods.
Price Performance
Image Source: Zacks Investment Research
Marriott’s shares have gained 25.8% in the past three months compared with the industry’s 21.5% growth. The company has been benefiting from robust leisure demand and solid global booking trends. Also, substantial RevPAR growth in international markets added to the upside. With global trends improving, the company expects the recovery momentum to continue. Attributes such as pent-up demand for all types of travel, the shift of spending toward experiences versus goods and lifting of travel restrictions are likely to aid the company in the upcoming periods. Also, the emphasis on expansion initiatives, digital innovation and the loyalty program bode well. Earnings estimates for 2024 have increased in the past 60 days, depicting analysts’ optimism regarding the stock’s growth potential.
Zacks Rank & Key Picks
Marriott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
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 155.7% 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.
H World Group Limited (HTHT - Free Report) currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 34.1% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.9% and 9.8%, respectively, from the year-ago period’s levels.
Wyndham Hotels & Resorts, Inc. (WH - Free Report) carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 6.6%, on average. The stock has gained 1.6% in the past year.
The Zacks Consensus Estimate for WH’s fiscal 2024 sales and EPS implies a decline of 4.5% and 7.7%, respectively, from the year-ago levels.