We are maintaining our long-term Neutral recommendation on Marriott International Inc. (MAR), a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities. Marriott’s first quarter 2011 earnings missed the Zacks Consensus Estimate by a penny, reflecting lower demand in the larger North American hotel market. However, year-over-year results improved driven by global demand for lodging, translating into a higher average daily room rate. Moreover, Marriott boasts a substantial development pipeline and is poised to benefit from the increase in demand for hotels going forward. New group bookings made in the first quarter of 2011 increased 10%. The demand for hotel and the pace of recovery in the international market are greater than that in the U.S, and Marriott should benefit from its international exposure. The
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