Marriott International (NASDAQ:MAR) shares are under pressure today after the hospitality major delivered a mixed performance for the fourth quarter. Despite a year-over-year increase of 2.9%, revenue of $6.09 billion lagged expectations by $110 million. EPS of $3.57, on the other hand, fared better than consensus by $1.45.
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During the quarter, comparable systemwide constant currency RevPAR (Revenue per Available Room) increased by 7.2% globally. In international markets, this metric stood at an impressive 17.4% due to strength in the Asia Pacific and European markets. For the full year, Marriott added about 81,300 rooms, with net room growth hovering at 4.7%. Notably, its pipeline included over 232,000 rooms under construction at the end of 2023.
Further, its Base Management and Franchise Fees increased by 9% to $1,026 million compared to the year-ago period. The robust performance of managed hotels in International markets helped the company increase its Incentive Management fees by 17% to $218 million.
For Fiscal Year 2024, Marriott expects a worldwide RevPAR increase of 3% to 5%. Net room growth is anticipated in the range of 5.5% to 6%. The company also estimates an adjusted EBITDA of $4.9 billion to $5 billion for the full year. Gross Fee revenues are seen hovering between $5,120 million and $5,220 million. In addition, the company foresees adjusted EPS in the range of $9.18 to $9.52.
Is MAR Stock a Good Buy?
Overall, the Street has a Moderate Buy consensus rating on Marriott International, and the average MAR price target of $242.24 points to a potential downside of 2.65% in the stock. That’s after a nearly 43% jump in the company’s share price over the past year.
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