Discovering the Value of a Global Hospitality Giant: How Much is Marriott Worth?
Hey there, future financial guru! Ever stayed at a Marriott hotel and wondered about the massive enterprise behind the comforting beds and excellent service? Perhaps you're an aspiring investor, a curious consumer, or simply someone who enjoys understanding the vast world of global corporations. Whatever your motivation, you've landed in the right place! Today, we're going to embark on an exciting journey to uncover the "worth" of Marriott International – a true titan in the hospitality industry.
Understanding the value of a company like Marriott isn't as simple as looking up a single number. It involves delving into various financial metrics, market dynamics, and the overall health of the business. So, are you ready to become a valuation detective? Let's dive in!
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| How Much Is Marriott Worth |
Step 1: Understanding What "Worth" Means in the Business World
Before we even talk numbers, let's clarify what "worth" signifies when discussing a publicly traded company like Marriott. It's not just about how much cash they have in the bank.
What is Market Capitalization?
The most common and easiest way to determine a company's "worth" is by looking at its market capitalization, often shortened to "market cap." This is essentially the total value of all of a company's outstanding shares. It's calculated by:
It gives you a quick snapshot of how the market values the company at any given moment.
Why Market Cap Isn't the Whole Story
While market cap is crucial, it doesn't paint the entire picture. It's a reflection of market sentiment and can fluctuate significantly based on news, economic conditions, and investor perception. To get a more comprehensive understanding, we need to consider other financial indicators.
Step 2: Uncovering Marriott's Current Market Capitalization
Now, let's get down to the hard numbers! As of July 14, 2025, Marriott International (MAR) has a significant market presence.
The Latest Figures
QuickTip: Read a little, pause, then continue.
According to recent data, Marriott International's market capitalization stands at approximately $77.14 billion. Some sources even report it slightly higher, around $78.37 billion as of July 11, 2025. This makes it one of the largest hotel companies globally and a substantial player in the overall market.
Isn't that an astounding figure? It truly showcases the immense scale of their operations and brand recognition worldwide.
Historical Context
It's also interesting to note how Marriott's market cap has evolved. For instance:
As of December 31, 2024, it was around $77.52 billion.
In one year, its market cap has increased by approximately 10.32%.
Looking back further, since December 1, 1998, Marriott's market cap has grown from $7.40 billion to its current figure, representing a remarkable increase of 942.88%! This demonstrates a robust long-term growth trajectory.
Step 3: Beyond Market Cap – Diving into Financial Health
To truly understand Marriott's worth, we need to go beyond just the market cap and look at its underlying financial performance. This means examining their revenue, profits, and other key metrics.
Revenue: The Top Line
Revenue indicates the total amount of money a company generates from its sales of goods or services. For Marriott, this primarily comes from hotel operations, franchising, and vacation ownership.
Marriott's revenue for the twelve months ending March 31, 2025, was approximately $25.386 billion, a 5.45% increase year-over-year.
For the full year 2024, Marriott's annual revenue was about $25.1 billion, showing a healthy 5.85% increase from 2023.
Think about the sheer volume of hotel stays and related services that contribute to this enormous revenue!
Net Income: The Bottom Line
Net income, or profit, is what's left after all expenses (including taxes) are subtracted from revenue. This is a critical indicator of a company's profitability.
Marriott's net income for the twelve months ending March 31, 2025, was approximately $2.476 billion.
In 2024, the annual net income was around $2.375 billion.
It's worth noting that while 2023 saw a significant increase in net income ($3.083 billion, up 30.75% from 2022), the net income in the latest periods has seen a decline from that peak. This highlights the dynamic nature of financial performance.
Enterprise Value: A More Holistic View
While market cap focuses solely on equity, Enterprise Value (EV) gives a more comprehensive valuation by taking into account both equity and debt, minus cash and cash equivalents. It's often considered a more accurate representation of a company's total value, especially for potential acquirers.
Tip: The middle often holds the main point.
Marriott's enterprise value is currently around $92.47 billion. This higher figure compared to the market cap indicates that Marriott carries a notable amount of debt, which is common for asset-heavy industries like hospitality.
Other Key Valuation Metrics
Analysts also look at various ratios to assess a company's valuation:
P/E Ratio (Price-to-Earnings Ratio): This compares a company's current share price to its earnings per share (EPS). Marriott's P/E ratio is around 32.04 to 32.21, which is generally considered higher than the industry average, suggesting investors are willing to pay more for its earnings.
EV/EBITDA Ratio (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization): This ratio is useful for comparing companies across industries because it removes the effects of financing and accounting decisions. Marriott's EV/EBITDA is approximately 21.32.
Return on Assets (ROA): Measures how efficiently a company is using its assets to generate earnings. Marriott's ROA is around 9.40%.
Return on Invested Capital (ROIC): Measures the percentage return that a company makes on the capital invested by both bondholders and shareholders. Marriott's ROIC is about 20.04%.
These metrics provide a deeper insight into how effectively Marriott is operating and generating returns for its investors.
Step 4: Assessing Stock Performance and Market Sentiment
A company's worth is also heavily influenced by how its stock is performing and how investors perceive its future.
Stock Price Movements
As of July 11-14, 2025, Marriott's stock (MAR) is trading around $281.65 to $282.87.
The 52-week high for MAR was $307.52 (set on February 7, 2025), and the 52-week low was $204.55 (set around August 5, 2024).
This volatility is normal in the stock market, reflecting market reactions to economic news, company announcements, and broader industry trends.
Analyst Consensus
What do the experts think? Analyst ratings and price targets can offer a glimpse into market expectations. The average price target for MAR is around $275.50, which is slightly lower than the current price, indicating that some analysts see limited immediate upside from current levels. The general analyst consensus, however, often leans towards a "Buy" rating.
Remember, analyst opinions are just that – opinions. They don't guarantee future performance.
Step 5: Understanding the Factors That Influence Marriott's Worth
Marriott's valuation isn't static; it's a dynamic reflection of various internal and external factors.
Key Influencers:
Tip: Make mental notes as you go.
Global Travel & Tourism Trends: The health of the global travel industry is paramount. Economic growth, consumer spending habits, and international travel restrictions (or lack thereof) directly impact Marriott's bookings and revenue.
Brand Strength and Portfolio Diversity: Marriott boasts an extensive portfolio of brands (e.g., The Ritz-Carlton, Sheraton, Courtyard, Moxy). The strength and diversity of these brands allow them to cater to various market segments, from luxury to extended stay, providing resilience against market fluctuations.
Operational Efficiency: How well Marriott manages its properties, controls costs, and leverages technology for bookings and customer service directly impacts its profitability and, consequently, its worth.
Real Estate Holdings vs. Asset-Light Model: Marriott has increasingly shifted towards an "asset-light" model, focusing more on managing and franchising hotels rather than owning them outright. This reduces capital expenditure and can improve profitability margins. This strategic shift significantly impacts their financial structure and valuation.
Competitive Landscape: The hospitality industry is highly competitive, with players like Hilton, IHG, Hyatt, and numerous smaller chains and independent hotels vying for market share. Marriott's ability to innovate and differentiate itself is crucial.
Economic Conditions: Inflation, interest rates, and overall economic stability directly influence consumer and business travel budgets.
Geopolitical Events and Health Crises: As seen with recent global events, unforeseen circumstances can have a profound and immediate impact on the travel industry and, by extension, Marriott's valuation.
Conclusion: A Multi-Faceted "Worth"
So, how much is Marriott worth?
In terms of market capitalization, a quick and widely accepted measure, Marriott International is worth approximately $77.14 billion to $78.37 billion as of mid-July 2025.
However, a deeper dive reveals a company with:
Robust annual revenues exceeding $25 billion.
Healthy net income in the billions, albeit with some recent fluctuations.
An enterprise value of over $92 billion, reflecting its overall operational assets and liabilities.
A strong brand portfolio and a strategic focus on management and franchising.
A stock that has shown significant long-term growth and is closely tracked by investors.
Marriott's "worth" is not merely a single number; it's a complex interplay of its financial performance, strategic decisions, market position, and the dynamic global economic and travel landscape. It represents the market's current assessment of its future earning potential and its ability to navigate challenges and capitalize on opportunities in the ever-evolving world of hospitality.
Related FAQ Questions
Here are 10 frequently asked questions about Marriott's valuation and related topics:
How to calculate a company's market capitalization?
Market capitalization is calculated by multiplying the company's current share price by the total number of outstanding shares.
How to find Marriott's current stock price?
You can find Marriott's (MAR) current stock price on financial news websites (like Google Finance, Yahoo Finance, Bloomberg, Reuters) or through your brokerage platform.
How to interpret Marriott's P/E ratio?
Marriott's P/E ratio compares its stock price to its earnings per share. A higher P/E ratio generally indicates that investors are willing to pay more for each dollar of earnings, possibly due to expectations of higher future growth.
QuickTip: Absorb ideas one at a time.
How to understand Enterprise Value (EV) and why it's important?
Enterprise Value (EV) is a more comprehensive valuation measure than market cap because it includes debt and subtracts cash, providing a more accurate picture of a company's total value, especially for potential acquisitions.
How to access Marriott's official financial reports?
You can typically access Marriott's annual reports (10-K) and quarterly reports (10-Q) on their official Investor Relations website or through the SEC's EDGAR database.
How to compare Marriott's valuation to its competitors?
To compare Marriott's valuation to competitors like Hilton or Hyatt, look at their respective market caps, P/E ratios, EV/EBITDA, and revenue/profit growth rates. This provides a relative valuation perspective.
How to analyze Marriott's revenue streams?
Marriott generates revenue primarily through fees from managing and franchising hotels, as well as from its owned and leased properties, and its vacation ownership business. Breaking down these segments helps understand revenue diversification.
How to identify factors that could negatively impact Marriott's worth?
Factors that could negatively impact Marriott's worth include economic recessions, global health crises, geopolitical instability, increased competition, rising operating costs, and shifts in consumer travel preferences.
How to find out if Marriott pays dividends to shareholders?
Yes, Marriott International (MAR) typically pays dividends to shareholders. You can find their dividend history and yield on their investor relations page or on financial data websites.
How to assess Marriott's long-term growth potential?
Assessing long-term growth potential involves evaluating factors like expansion into new markets, brand innovation, loyalty program strength, sustainability initiatives, and the overall outlook for global travel and tourism.
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