Marriott (MAR) Stock Forecast & Price Target

Marriott International reported fees of $1.4 billion, surpassing expectations and reflecting strong operational performance, particularly through improved IMF and O&L profits. The group's healthy demand is evidenced by a 2026 pace growth to 8%, up from 7% earlier in the year, indicating sustained strength in the hospitality sector beyond 2025. Additionally, the company's pipeline and signings demonstrated robust growth, with a year-over-year increase of 5.5% and 3%, respectively, highlighting a strong demand for its luxury and international offerings.

Marriott International is experiencing a significant decline in government-related revenue per available room (RevPAR), which fell by 17% year-over-year in the second quarter, highlighting ongoing challenges in this sector. The company’s growth potential appears constrained as 40% of its pipeline is currently under construction, representing a considerable portion of future supply, while RevPAR growth was notably below expectations, with a 2% lowering reflecting broader market headwinds. Additionally, rising rates are likely to further impede Marriott's ability to achieve an organic growth rate of 5% in the coming years, suggesting a challenging environment for revenue generation and profitability.