Marriott (MAR) Stock Forecast & Price Target

Marriott International reported strong financial performance with fees of $1,400 million and EBITDA of $1,415 million, both exceeding expectations, driven by higher profits from incentive management fees and owned & leased properties. Additionally, the healthy group demand is reflected in the 2026 group pace increase to 8%, suggesting ongoing recovery and stability in the travel and hospitality sector beyond 2025. Furthermore, the company's pipeline and signings growth of 5.5% and 3% year-over-year, particularly in international and luxury segments, indicates a robust expansion strategy that supports a positive outlook for future performance.

Marriott International is experiencing a decline in government-related revenue per available room (RevPAR), which fell by 17% year-over-year in the second quarter, indicating a significant downturn compared to previous reports. Additionally, the company has a substantial number of rooms under construction, representing 40% of its pipeline relative to existing rooms, which could strain resources and affect profitability. Lastly, with an organic growth rate projected to struggle below 5% due to rising rates impacting development, the financial outlook for Marriott remains concerning.