Marriott International's Dividend Growth Potential Strong, $3.1 Billion in Buybacks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16h ago
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Source: Fool
- Business Model Advantage: Marriott International's asset-light business model allows for growth without heavy investment in hotel ownership, as evidenced by a 4% year-over-year revenue increase to $6.5 billion in Q3, with management and franchise fees reaching $1.2 billion, up nearly 6%, indicating strong cash flow and profitability.
- Shareholder Return Strategy: The company returned a total of $3.1 billion to shareholders through dividends and buybacks over the past three quarters, with an expectation to reach $4 billion for the full year, which is significant for a company with an $88 billion market cap, reflecting its commitment to shareholders and financial health.
- Growth Potential: Marriott added approximately 17,900 net rooms in Q3, a 4.7% year-over-year increase, with a record development pipeline of about 3,900 properties and over 596,000 rooms, which will drive further fee growth and customer acquisition, creating a virtuous cycle.
- Loyalty Program Advantage: The company added 12 million members to its Marriott Bonvoy loyalty program in Q3, bringing total membership to nearly 260 million, an 18% year-over-year increase, with a strong loyalty base enhancing occupancy rates and pricing power, thereby supporting long-term business and dividend growth.
Analyst Views on MAR
Wall Street analysts forecast MAR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MAR is 298.39 USD with a low forecast of 269.70 USD and a high forecast of 329.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
5 Buy
8 Hold
0 Sell
Moderate Buy
Current: 324.910
Low
269.70
Averages
298.39
High
329.00
Current: 324.910
Low
269.70
Averages
298.39
High
329.00
About MAR
Marriott International, Inc. is an operator, franchisor, and licensor of hotel, residential, timeshare, and other lodging properties under various brand names. The Company's segments include U.S. and Canada, Europe, the Middle East, and Africa (EMEA), Greater China, and 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 is grouped 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, 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.
