Marriott (MAR) Stock Forecast & Price Target

Marriott International's strong financial performance is highlighted by fees of $1.4 billion exceeding expectations, and an EBITDA of $1.415 billion, indicating robust operational profitability driven by higher incentive management fees and other revenue streams. The growth in the 2026 group pace to 8%, up from 7% at the beginning of the year, demonstrates sustained and healthy demand for group bookings beyond 2025. Additionally, the company's pipeline and signings increased by 5.5% and 3% year-over-year, with international and luxury segments performing particularly well, further supporting a positive outlook for future growth.

Marriott International experienced a significant decline in government-related revenue per available room (RevPAR), which fell by 17% year-over-year in the second quarter, highlighting potential issues in its revenue generation from that segment. Additionally, with 40% of the rooms under construction within its pipeline, any slowdown in development could adversely affect future growth, particularly as rates present a headwind to expansion efforts. The company's RevPAR growth, which was lowered to 2%, missed expectations and indicates challenges in achieving organic growth targets of 5% in the coming years.