MAR Stock Forecast: Did Marriott Cope With The Tsunami That Covered The Leisure Industry?

Highlights:

  • 2Q21 comparable systemwide constant dollar RevPAR increased 262.6% worldwide, compared to the 2020 second quarter.
  • MAR’s ROE of 107.76% is higher than 99% in the Travel and Leisure industry.
  • Hotel room Revenues are expected up 47% in 2021.

Overview

Marriott International, Inc. is an American multinational company that operates, franchises and licenses housing, including hotels, residences and timeshare properties. It is headquartered in Bethesda, Maryland. The company was founded by J. Willard Marriott and his wife Alice Marriott; the executive chairman of the company is now their son, Bill Marriott, and the Marriott family retains a majority stake in the company. Marriott is the largest hotel chain in the world by the number of rooms available. It has 30 brands with more than 7 600 properties containing 1 423 044 rooms in 131 countries and territories. Of these 7 642 properties, 2 149 are operated by Marriott and 5 493 are operated by other companies under franchise agreements. The company also operates 20 hotel booking centers. Marriott International, Inc. was formed in 1993 when the Marriott Corporation split into two companies: Marriott International, Inc., which franchises and operates real estate, and Host Marriott Corporation (now Host Hotels & Resorts), which owns real estate.

(Source: unsplash.com)

The Impact of Coronavirus on the Hotel Industry

The coronavirus pandemic has had a devastating impact on the global hotel industry. Occupancy rates globally declined sharply, with Europe and North America hitting the hardest. In the US, data from the Bureau of Labor Statistics show that the unemployment rate for leisure and hospitality workers is an unprecedented 28.9%. In 2020, U.S. hotels recorded the lowest occupancy rates on record. The hotel occupancy rate for the year was only 44%, compared to 66% in 2019. The industry surpassed 1 billion unsold rooms for the first time, breaking a record of 786 million back in 2009, during the Great Recession. In such an unfavorable environment, the hospitality industry has changed in one way or another. Many businesses have left the market, while others have gone through the introduction of innovations and increasing customer focus.

Marriott International also did not escape the crisis. Hotel demand dropped significantly in 2020. In April 2020, the comparable systemwide constant dollar RevPAR (Revenue per available room)  experienced a record decline, down 90 percent globally from the prior-year period, and 27% of Marriott hotels were temporarily closed. While business at Marriott hotels improved by the end of 2020 from an extremely low level in April 2020, COVID-19 continues to stifle recovery and have a significant negative impact on demand so far.

1 2 3 4
View single page >> |

Please note--for trading decisions use the most recent forecast.

Disclosure: This article originally appeared on  more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
William K. 3 months ago Member's comment

It cerrtainly appears that the Marriot organization had a great deal of survival skill and resources. So it would be a good long-term investment, I suppose.