Marriott (MAR) Boost Bonvoy Line-up With New Resort In UAE
Marriott International, Inc. MAR recently announced the addition of the Marriott Resort Palm Jumeirah, Dubai, in the United Arab Emirates. Covered under Marriott Bonvoy’s portfolio, this marks the company’s first property in the region.
Located on Palm Jumeirah's West Beach, the 608-room resort features floor-to-ceiling ocean views, private balconies, and Interconnecting room facility. It also provides guests with amenities like a fitness center, dining spaces, spa, lounge and event spaces (of more than 20,000 square feet), pool and marine activities.
With reference to the opening, Drew Iddings, Vice President and Global Brand Leader, Marriott Hotels, stated, "As one of the world's most lively leisure destinations and a hub for business travelers, Dubai is an ideal location for a flagship Marriott Hotels property. With the opening of this resort, we continue to live our legacy of wonderful hospitality, and build momentum for the brand's evolution and modern appeal that is tailormade for our guests to empower their every pursuit."
Focus on New Hotel openings
Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. At the end of third-quarter 2022, Marriott's development pipeline totaled 3,024 hotels, with approximately 502,000 rooms. Nearly 204,800 rooms were under construction. During the quarter, the company added 77 new properties (14,071 rooms) to its worldwide lodging portfolio.
Moving ahead, the company plans to expand its global portfolio of luxury and lifestyle brands. The hotel company is also trying to strengthen its presence outside the United States, especially in Asia, Latin America, the Middle East and Africa. It intends to introduce more than 35 luxury hotels to expand its footprint in 2023. The company will open hotels from Kenya to Singapore and Japan to Mexico. The company’s European pipeline has grown consistently in the recent past that is expected to continue going forward. For 2022, the company anticipates gross room growth to be approximately 4.5%.
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Coming to price performance, shares of Marriott have gained 3.1% in the past year against the industry’s 2.1% decline. The company is benefiting from its focus on expansion initiatives, digital innovation and loyalty programs. During third-quarter 2022, the company witnessed solid demand in the United States, Canada, the Middle East and Africa region. The company benefited from robust leisure demand and business and cross-border travel improvements. Also, it reported a strong RevPAR recovery in Europe. With global trends improving, the company expects the recovery momentum to continue. Meanwhile, earnings estimates for 2023 have increased in the past 30 days, depicting analysts’ optimism regarding the stock growth potential.
Zacks Rank & Stocks to Consider
Marriott currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Monarch Casino & Resort, Inc. MCRI, Hilton Grand Vacations Inc. HGV and Hyatt Hotels Corporation H.
Monarch Casino sports a Zacks Rank #1. MCRI has a trailing four-quarter earnings surprise of 9.1%, on average. The stock has gained 22.2% in the past year.
The Zacks Consensus Estimate for MCRI’s 2023 sales and earnings per share (EPS) indicates growth of 3.7% and 9.7%, respectively, from the year-ago period’s reported levels.
Hilton Grand Vacations currently has a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 3.7%, on average. The stock has declined 8.6% in the past year.
The Zacks Consensus Estimate for HGV’s 2023 sales and EPS indicates a rise of 4.7% and 24.6%, respectively, from the year-ago period’s levels.
Hyatt currently has a Zacks Rank #2 (Buy). H has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has increased 19% in the past year.
The Zacks Consensus Estimate for H’s 2023 sales and EPS indicates a rise of 7.4% and 132.7%, respectively, from the year-ago period’s levels.
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