10 Best Hotel Stocks To Buy Now

2. Marriott International, Inc. (NASDAQ:MAR)

Number of Hedge Fund Holders: 54       

Marriott International, Inc. (NASDAQ:MAR) manages 1.7 million rooms under almost 30 different brands. By the end of 2023, 10% of all rooms were classified as luxury, 42% as premium, 46% as select service, 1% as midscale, and 1% as other. While Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands, the most prominent brands are Sheraton, Marriott, and Courtyard. As of December 31, 2023, 97% of all rooms were managed or franchised. Out of all the rooms, 63% are in North America. The company’s revenue and profitability are mostly derived from managed, franchise, and incentive fees.

Analysts are bullish on this stock and anticipate that Marriott’s global market share will rise over the next few years as a result of its strong intangible asset, which forms the basis of its wide moat and is favored by both hotel owners and guests. Marriott has introduced several new brands since 2019 and rebuilt a significant portion of its core Marriott and Courtyard properties in recent years. These moves support our positive posture and position us favorably for next-generation travelers. In fact, the company’s latest brands, StudioRes, City Express, and Four Points, have the potential to add several hundred hotels over the next few years, in addition to expanding the company’s reach into the midscale and extended-stay categories. Furthermore, its August 2024 alliance with Sonder expands the range of its already expanding homes, villas, and apartments by roughly 10,000 rooms.

Additionally, Morningstar analysts believe that the firm has the best loyalty program in the hospitality industry, with 210 million members (as of June 30, 2024), which encourages independent hotel owners to associate with the company’s brands.

Marriott International, Inc. (NASDAQ:MAR)’s long-term brand advantage has been reinforced by the 2016 acquisition of Starwood and the 2023 partnership with MGM’s Vegas portfolio. This is because Marriott’s dominant upper-scale position in North America is complemented by MGM’s leading presence in the gaming heaven and Starwood’s global luxury portfolio.

Terry Smith’s Fundsmith LLP is the shareholder in the company, with 4,264,511 shares worth $1.03 billion.