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Marriott International saw a price move of 11% decline over the last week, amid significant market volatility and a broader market drop of 12%. Recent events including the appointment of a new director and new resort openings highlight Marriott's ongoing commitment to brand expansion and service enhancement, suggesting these actions remain aligned with its long-term strategy. However, such positive business developments were likely overshadowed by the prevailing market concerns driven by the U.S. tariffs, which stirred investor concerns over global trade impacts, thereby affecting sentiment across various sectors, including hospitality.

We've identified 2 warning signs with Marriott International (at least 1 which is potentially serious) and understanding the impact should be part of your investment process.

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The recent 11% decline in Marriott International's share price is a reflection of current market volatility, with broader market instability and concerns over U.S. tariffs impacting investor sentiment. This decline contrasts with Marriott's promising long-term strategies, as evidenced by the appointment of a new director and expansion efforts. These initiatives must now contend with external pressures that could influence future revenue and earnings forecasts. In particular, market concerns could moderate the anticipated growth derived from Marriott's expansion in mid-scale brands and digital transformation ventures.

Over the past five years, Marriott has achieved a substantial total return of 162.80%, far outstripping recent trends and highlighting its capacity for long-term growth despite short-term fluctuations. Comparatively, over the past year, Marriott underperformed the U.S. Hospitality industry, which saw a 9% decline. This performance snapshot provides important context for understanding recent movements in the company's share price.

Regarding Marriott's revenue projections, the market's current apprehensions might influence analysts' forecasts. While investors could remain cautious, Marriott’s continued focus on digital innovation and room growth, potentially leading to enhanced customer engagement and profitability, might counterbalance the downside risks. With the company's recent share price standing at approximately $238, this positions it around 18% below the consensus price target of $290.67. This discount suggests a potential upside if Marriott can effectively navigate the current challenges and capitalize on its strategic initiatives.