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Marriott International, Inc. (MAR), headquartered in Bethesda, Maryland, operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties. Valued at $78.2 billion by market cap, the company manages a portfolio of lodging properties operating under renowned brand names such as JW Marriott, The Ritz-Carlton, W Hotels, Sheraton, Westin, and Marriott Hotels.
Shares of this lodging giant have underperformed the broader market over the past year. MAR has gained 20.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.3%. In 2025, MAR stock is up 1.6%, compared to SPX’s 4% rise on a YTD basis.
Narrowing the focus, MAR’s underperformance is also apparent compared to AdvisorShares Hotel ETF (BEDZ). The exchange-traded fund has gained about 22.6% over the past year. Moreover, the ETF’s 3.7% gains on a YTD basis outshine the stock’s returns over the same time frame.
MAR’s underperformance can be due to sluggish sales growth and increasing debt levels. Additionally, the declined RevPAR in the Greater China region caused by weak domestic demand and economic challenges, further impacted its overall performance.
On Feb. 11, MAR shares closed down more than 5% after reporting its Q4 results. Its adjusted EPS of $2.45 surpassed Wall Street expectations of $2.38. The company’s revenue was $6.43 billion, beating Wall Street forecasts of $6.4 billion. For fiscal 2025, MAR expects adjusted EPS to be between $9.82 and $10.19.
For fiscal 2025, ending in December, analysts expect MAR’s EPS to grow 8.3% to $10.10 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
Among the 23 analysts covering MAR stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, one “Moderate Buy,” and 16 “Holds.”
This configuration is more bullish than a month ago, with five analysts suggesting a “Strong Buy.”
On Feb. 13, Argus analyst John Staszak kept a “Buy” rating on MAR and raised the price target to $335, implying a potential upside of 18.2% from current levels.
The mean price target of $299.14 represents a 5.5% premium to MAR’s current price levels. The Street-high price target of $348 suggests an upside potential of 22.7%.
