MAR - Embedded Expectations Analysis - 2020 02 03
Marriott International, Inc. (MAR:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 26.6x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, and management is confident about their room signings, luxury resort portfolio, and international expansion.Specifically, management is confident that 2019 room signings are approaching record levels, they expect adjusted EBITDA will increase to $3.57bn, and that their group sales are stronger than more transient business categories. In addition, they are confident about the quality of their lifestyle, luxury, and resort portfolio and that they expect unit growth outside the US to be faster than inside the US. Furthermore, management is confident that outbound room nights sold to mainland Chinese travelers increased by 9%, with particular strength across South Korean and Malaysian destinations.
Marriott International is a worldwide operator, franchisor, and licensor of hotel, residential and timeshare properties under various brand names at different price and service points. The company has operations in the following reportable business segments: North American Full-Service, which includes the company's Luxury and Premium properties located in United States and Canada; North American Limited-Service, which includes the company's Select properties located in United States and Canada; and Asia Pacific, which includes all properties in the company's Asia Pacific region.
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