Marriott (MAR) Stock Forecast & Price Target

Marriott International reported stronger-than-expected financial results, with fees of $1,400 million surpassing estimates and EBITDA reaching $1,415 million, indicating robust operational performance driven by increased profits from Incentive Management Fees (IMF) and Owned & Leased (O&L) properties. Healthy demand for group bookings is evident, as the 2026 group pace increased to 8%, up from 7% at the end of the first quarter, suggesting positive momentum extending beyond 2025. Additionally, the company's pipeline and signings grew by 5.5% and 3% year-over-year, with international and luxury segments notably outperforming, enhancing the underlying growth prospects for Marriott's future.

Marriott International has reported a significant decline in government-related Revenue Per Available Room (RevPAR), falling 17% year-over-year in the second quarter, indicating a challenging market environment. The company is facing headwinds in development, with 40% of rooms under construction relative to existing rooms, which could hinder its ability to achieve organic growth of 5% in the coming years. Additionally, the latest RevPAR growth of 1.5% fell short of expectations, further highlighting the potential struggle in maintaining revenue momentum.