How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Marriott International (MAR) ten years ago? It may not have been easy to hold on to MAR for all that time, but if you did, how much would your investment be worth today?
Marriott International's Business In-Depth
With that in mind, let's take a look at Marriott International's main business drivers.
Marriott International Inc. is a leading worldwide hospitality company focused on lodging management and franchising, after the spin-off of its timeshare business into a publicly-traded company in Nov 2011.
During second quarter 2022, the company added 97 new properties (16,917 rooms) to its worldwide lodging portfolio. However, 25 properties (or 3,661 rooms) exited the system during the quarter. At the end of second-quarter, Marriott's development pipeline totaled nearly 2,942 hotels, with approximately 495,000 rooms. Nearly 203,300 rooms were under construction.
As of Aug 2, 2022, the company operated, franchised and acted as a licensor of hotels as well as timeshare properties to more than 8,100 properties across 139 countries and territories under 30 brand names.
The company has grouped its brand portfolio into three groups:
Luxury: The company’s classic luxury hotel brands include JW Marriott, The Ritz-Carlton, and St. Regis. Meanwhile, Marriott’s distinctive luxury hotel brands comprise W Hotels, The Luxury Collection, EDITION, and Bulgari.
Premium: The company’s classic premium hotel brands include Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, and Marriott Vacation Club. Moreover, its distinctive premium hotel brands comprise Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio and Design Hotels.
Select: The company’s classic select hotel brand include Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, and Protea Hotels. Meanwhile, Marriott’s distinctive select hotel brands comprise Aloft, AC Hotels by Marriott, Element, and Moxy.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Marriott International ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in August 2012 would be worth $4,361.94, or a 336.19% gain, as of August 12, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 199.26% and the price of gold increased 5.83% over the same time frame in comparison.
Analysts are anticipating more upside for MAR.
Shares of Marriott have outperformed the industry in the past year. The company reported second-quarter 2022 results, with earnings and revenues beating the Zacks Consensus Estimate and increasing on a year-over-year basis. The company is benefiting from its focus on expansion initiatives, digital innovation and the loyalty program. The company is gaining from the reopening of international borders and leniency in travel restrictions. Marriott is consistently trying to expand its worldwide presence and capitalize on the demand for hotels in the international markets. However, a resurgence in coronavirus cases in several parts of the world might hurt the company’s performance. Although RevPAR is improving sequentially, it is still below the pre-pandemic level. Earnings estimates for 2022 have declined in the past 60 days.
The stock has jumped 14.45% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022; the consensus estimate has moved up as well.
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