Marriott (MAR) Stock Forecast & Price Target

Marriott International reported fees of $1,400 million and EBITDA of $1,415 million, exceeding market expectations and reflecting strong performance in Incentive Management Fees (IMF) and Ownership & Leasing (O&L) profits. The company's group pace for 2026 increased to 8%, up from 7% at the end of Q1, indicating robust demand for group bookings beyond 2025. Furthermore, the pipeline and signings grew by 5.5% and 3% year-over-year, with international markets performing particularly well at 5.3%, underscoring the continued growth potential across various segments, including luxury brands.

Marriott International has experienced a decline in government-related revenue per available room (RevPAR), falling 17% year-over-year in the second quarter, which may indicate sluggish demand within a key segment of the market. Additionally, the company is facing developmental challenges, with 40% of the rooms under construction representing a significant portion of its pipeline, while existing rooms account for only 14%. Furthermore, an organic growth rate potentially struggling to reach 5% in the coming years reflects adverse conditions that could pressure the company's overall profitability and performance.