For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly 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 the first-quarter 2021, the company added 134 new properties (23,567 rooms) to its worldwide lodging portfolio. However, 114 properties (or 17,381 rooms) exited the system during the quarter. At the end of first-quarter 2021, Marriott's development pipeline totaled nearly 2,825 hotels, with approximately 491,000 rooms. Further, nearly 222,000 rooms were under construction.
As of Mar 31, 2021, the company operated, franchised and acted as a licensor of hotels as well as timeshare properties to 7,662 (nearly 1,429,171 rooms) properties across 133 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.
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Marriott International ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2011 would be worth $4,297.48, or a 329.75% gain, as of July 28, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 237.31% and the price of gold went up 7.16% over the same time frame.
Analysts are forecasting more upside for MAR too.
Shares of Marriott have outperformed the industry in the past six months. Notably, the company has been benefitting from continuous focus on expansion initiatives, digital innovation and loyalty program. Also, the company is witnessing improvement in occupancy and new bookings in Mainland China. Additionally, businesses are picking up. Moving ahead, the company plans to strengthen presence outside the United States, especially in Asia, Latin America, Middle East and Africa. Earnings estimates for 2021 have moved up over the past 7 days, depicting analysts optimism regarding the stock growth potential. However, coronavirus related woes persists. Owing to the uncertainty of the crisis, the company has not provided earnings and RevPAR guidance for 2021. It has also suspended its share repurchase and dividend payments until further notice.
The stock has jumped 6.26% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021; the consensus estimate has moved up as well.
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