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Marriott International, Inc. MAR recently announced the opening of The Ritz-Carlton, Bangkok, in Thailand. This new property elevates Marriott’s position in the region’s competitive hospitality market.
The hotel comprises 260 guestrooms and provides guests access to amenities including three dining venues, a ballroom, a spa, two swimming pools and an exclusive Club Lounge. Designed by Chicago-based SOM and Thailand's A49, the building features open-air terraces offering stunning skyline views. The interior, crafted by Thailand's premier interior design studio, reflects a fusion of classic Thai aesthetics and modern sophistication.
By blending Thailand’s cultural heritage with The Ritz-Carlton’s global reputation for elegance, the company aims to attract affluent travelers and strengthen its position in the Southeast Asian hospitality sector.
Increased Focus on Expansion Bodes Well
Marriott is looking for ways to grow its footprint globally and take advantage of the demand for hotels in other markets. The business intends to grow its collection of luxury and lifestyle brands on a worldwide scale in the future.
During the third quarter of 2024, Marriott's development pipeline reached a record 585,000 rooms, reflecting 5% sequential growth. The company added 16,000 net rooms in the third quarter, bringing its global total to over 1.67 million rooms. Conversion activity was particularly strong, representing over 30% of new room additions and more than 50% of signings. Recently, the company announced signing an agreement with Xiamen Green Development Investment Group to introduce The Ritz-Carlton to Xiamen Island in Fujian Province.
The company expects positive development trends to continue on the back of new development and multiunit conversion opportunities.
MAR Stock Price Performance
Image Source: Zacks Investment Research
Coming to price performance, shares of Marriott have gained 20.6% in the past year compared with the industry’s 14.4% growth. The company is benefiting from robust global travel demand, driving growth in international markets and steady performance in the United States and Canada, along with solid global booking trends. Also, increased business transient demand and leisure transient RevPAR added to the upside.
In the third quarter of 2024, the company stated that group revenues for 2025 were pacing 7% higher. Given its property locations, we believe that the company is well-poised to benefit from the increasing market demand on the back of stepped-up business and leisure traveling in major North American and international locations. Earnings estimates for 2025 have increased in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential.