Marriott International, Inc. (MAR), a leader in the hotel industry, just reported having a good third quarter. Revenue grew almost 11% and revenue per available room grew about 7%. In addition room occupancy trends were up 2% in spite of price increases. Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9% in the third quarter.
Marriott is the second largest hotel operator in the United States and also has many branches overseas. In addition, Marriott has huge expansion opportunities in China.
The stock is selling at $30.96 under its 200-day moving average of $32.45 due to the market drip that occurred this summer. However, Marriott is selling above its 50-day moving average which is 28.36.
Some of the leading managers of Marriott are : Carl T. Berquist; Arne M. Sorenson; Laura E. Paugh; and Jimmie Walton Paschall.
If Marriot can maintain the growth that it showed in the third quarter, it could be a very good investment. However, the hotel business is dependent of business travel and personal travel which could well slow down due to the depressed business climate. If Marriot cannot maintain its good revenue flows then the investment will not be so good. Since Marriot is one of the biggest chains and is well managed the company should do well in the long run. However the short run may be very rocky.
Disclaimer: The information in this article is for educational purposes only. Investment purchases should only be made after thorough analysis of the particular investment.
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