MAR - Marriott International: RevPAR And EBITDA Growth Remains Modest

2024-05-06 23:06:50 ET

Summary

• Marriott International's stock has slightly declined since the previous outlook, indicating a plateau in growth.
• Q1 2024 earnings show modest growth in ADR and RevPAR but a decline in occupancy.
• RevPAR growth needs to accelerate for Marriott International to see further upside, and the stock may see little growth until revenues and EBITDA accelerate.

Investment Thesis: Marriott International could see modest upside until we see evidence that RevPAR growth can accelerate heading into the summer months. I continue to rate the stock as a hold - in line with my prior article.

In a previous article back in February, I made the argument that Marriott International ( MAR ) may see a plateau in growth in the short to medium-term, owing to modest growth in RevPAR and a decline in the Ritz-Carlton's average daily rate - indicating a plateau in demand for higher-priced brands....

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