LRT Capital Management, an investment management firm, released its October 2022 investor letter. A copy of the same can be downloaded here. The results in October were excellent, and its LRT Economic Moat strategy returned 7.38%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
LRT Capital discussed stocks like Marriott International, Inc. (NASDAQ:MAR) in the investor letter. Headquartered in Bethesda, Maryland, Marriott International, Inc. (NASDAQ:MAR) operates as a global hospitality company. On November 16, 2022, Marriott International, Inc. (NASDAQ:MAR) stock closed at $161.60 per share. One-month return of Marriott International, Inc. (NASDAQ:MAR) was 9.54% and its shares gained 3.77% of their value over the last 52 weeks. Marriott International, Inc. (NASDAQ:MAR) has a market capitalization of $51.153 billion.
LRT Capital made the following comment about Marriott International, Inc. (NASDAQ:MAR) in its October investor letter:
“Marriott International, Inc. (NASDAQ:MAR) is the world’s largest hotel company followed closely by Hilton (HLT) and Intercontinental Hotels Group plc (IHG). The company owns a portfolio of brands from the low end (Courtyard, SpringHill Suites, Aloft), through the mid-tier (Marriott, Sheraton, Westin, Renaissance Hotels), to the luxury high end (JW Marriot, Ritz-Carlton, St. Regis). In total the company had 7,642 properties with over 1.4 million rooms as of the end of Q1 2021.
The majority (85%) of Marriott’s revenue comes from hotels in the United States, with the rest almost evenly split between Asia Pacific and Europe. Like it’s smaller peer, Hilton, the company today is almost exclusively a manager and franchisor of hotels, not a hotel owner. The company owns 66 hotels, manages 2,083 and franchises 5,493. Like all franchise-based businesses Marriott requires very little capital to grow as it utilizes the investment capital of its hotel-owners/partners to expand. Marriott currently faces a difficult operating environment due to the Covid-19 pandemic and uncertainty about the future of business travel. However, the company is an excellent operator with a somewhat leveraged capital structure (the company acquired Starwood Properties in late 2016) – if pent-up demand for travel materializes post-Covid, as we expect it will, the company will quickly go from losing money to raking in profits.”
Marriott International, Inc. (NASDAQ:MAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Marriott International, Inc. (NASDAQ:MAR) at the end of the third quarter which was 46 in the previous quarter.
We discussed Marriott International, Inc. (NASDAQ:MAR) in another article and shared the top five hospitality companies in the world. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
