Marriott's 2025 profit forecast falls short of expectations on China performance
Written by Emily J. Thompson, Senior Investment Analyst
0mins
Should l Buy MAR?
Source: Newsfilter
Marriott's Profit Forecast: Marriott International's 2025 profit forecast is below Wall Street estimates, projecting adjusted earnings of $9.82 to $10.19 per share due to poor hotel performance in Greater China, causing a 1.6% drop in shares during premarket trading.
Impact of Economic Conditions: Domestic travel demand in China has declined amid economic pressures and concerns over wage and job security, leading to a 1.8% decrease in room revenue in Greater China during the fourth quarter.
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Analyst Views on MAR
Wall Street analysts forecast MAR stock price to fall
14 Analyst Rating
8 Buy
6 Hold
0 Sell
Moderate Buy
Current: 355.080
Low
269.70
Averages
314.26
High
370.00
Current: 355.080
Low
269.70
Averages
314.26
High
370.00
About MAR
Marriott International, Inc. is an operator, franchisor, and licensor of hotel, residential, timeshare, and other lodging properties under various brand names. Its segments include U.S. and Canada, Europe, Middle East, and Africa (EMEA), Greater China, Asia Pacific, excluding China. Its brand portfolio offers a range of brands and lodging offerings in hospitality. Its brands are categorized by style of offering: Classic and Distinctive. The classic brands offer time-honored hospitality for the modern traveler. The distinctive brands offer memorable experiences with a perspective, each of which it groups into four tiers: Luxury, Premium, Select, and Midscale. Its hotel brands include JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, Marriott Hotels, Sheraton, Delta Hotels by Marriott, Marriott Executive Apartments, Courtyard, SpringHill Suites, TownePlace, City Express, Four Points Flex by Sheraton, citizenM, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Succession Plan: The Hyatt board appointed CEO Mark Hoplamazian as the new chairman, ensuring continuity in governance and aiming to stabilize investor confidence during this transitional period.
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- Changing Customer Expectations: According to JD Power, 78% of hotel guests still enjoy breakfast at the hotel, but only 8% pay for it, indicating that free breakfast has become a basic expectation for customers, potentially impacting brand loyalty.
- Economic Impact Analysis: Some hotel operators report that free breakfast can account for 5% to 7% of total revenue, yet in many cases, it does not lead to corresponding revenue growth, prompting operators to reassess its value.
- Future Model Exploration: Experts predict that hotels may replace free breakfast with credits or optional add-ons to cater to different customer segments while maintaining clear communication of value to avoid customer attrition.
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- Market Response Analysis: By analyzing the cases of Airbnb and Marriott, investors can gain insights into market reactions to different strategies, enabling them to make more informed choices in future investments.
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- Contrasting Investor Returns: The contrasting outcomes for investors in Airbnb and Marriott reveal that disruption alone does not guarantee long-term investment success, emphasizing the need for investors to focus on fundamentals and market dynamics.
- Investment Insights: Notably, the analyst team's list of 10 best stocks does not include Marriott, suggesting that investors should be cautious and focus on potential high-return opportunities when making stock selections.
See More
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- Dividend Payment Timeline: The dividend is payable on March 31, with a record date of February 26 and an ex-dividend date also set for February 26, ensuring shareholders receive their earnings promptly and enhancing shareholder retention.
- Future Growth Targets: Marriott aims for a net rooms growth of 4.5% to 5% in 2026, while the rising credit card royalty rate will further drive revenue growth, showcasing the company's proactive expansion strategy in the market.
See More
