Back to top

Image: Bigstock

Marriott (MAR) Expands Luxury Portfolio With Longboat Key Resort

Read MoreHide Full Article

Marriott International, Inc. (MAR - Free Report) unveiled The St. Regis Longboat Key Resort in Florida, which marks its 9,000th property. This expansion underscores MAR’s continued global growth and its extensive luxury portfolio.

The new resort, developed by Unicorp National Developments and designed by SB Architects, Hirsch Bedner Associates (HBA Miami) and Dutch East Design, is the largest development on Longboat Key in more than 50 years. It strengthens Marriott's position with its extensive portfolio of seven brands, 522 hotels and resorts across 72 countries and a robust pipeline of 233 signed projects in 57 countries.

Nestled on 18 acres in the town of Longboat Key, the St. Regis resort features 168 luxurious guestrooms, including 26 suites. The property offers ocean views, dining facilities and several amenities.

The resort will include 69 private branded residences, all of which sold out in under a year. These residences offer spacious outdoor terraces and private elevator access. Marriott International currently manages 139 branded residential properties in 32 countries, with 122 additional projects planned across 38 countries.

Focus on Expansion

Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets, especially in Asia, Latin America, the Middle East and Africa.

At the end of the 2024 second quarter, the company had a total of 8,969 properties (or 1,658,659 rooms) worldwide, up 4.4% year over year from 8,590 properties (or 1,565,258 rooms). In the first six months of 2024, Marriott added approximately 61,300 net rooms, including 37,000 rooms, under its agreement with MGM Resorts International.

During second-quarter 2024, global signing activity also remained robust. Record signings in APEC and Greater China increased the pipeline to more than 559,000 rooms worldwide. Conversions, including multi-unit deals, continued to drive growth as owners valued the extensive brand portfolio and revenue potential. Conversions made up 37% of openings and 32% of signings in the quarter, with hotels switching to 23 different brands in the past year.

In June, the company signed three notable luxury conversion deals in the United States. The Resort at Pelican Hill in Newport Beach, California and The Luxury Collection Hotel Manhattan Midtown have already joined the system.

MAR is pleased with the strong signing and opening activity across its global portfolio. This success highlights continued confidence from owners and franchisees in the brand’s performance. It remains focused on driving robust growth. At the end of the second quarter, Marriott's worldwide development pipeline totaled 3,509 hotels, with more than 559,000 rooms. As of the quarter's end, about 1,127 properties with more than 209,000 rooms were under construction.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of this global hospitality company have increased 10.4% in the past year compared with the Zacks Hotels and Motels industry’s 14.9% growth. It is likely to benefit from solid leisure demand and recovery in business transient and group demand accompanied by its focus on the compelling loyalty program, The Marriott Bonvoy. Also, substantial RevPAR growth in international markets is a positive.

Zacks Rank & Key Picks

Marriott currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Consumer Discretionary sector are:

Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank of 1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 18.5%, on average. The stock has rallied 58.9% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) calls for growth of 18.1% and 69.7%, respectively, from the year-ago levels.

La-Z-Boy Incorporated (LZB - Free Report) sports a Zacks Rank of 1. LZB has a trailing four-quarter earnings surprise of 15.3%, on average. The stock has appreciated 37.7% in the past year.

The consensus estimate for LZB’s fiscal 2025 sales and EPS suggests growth of 2.1% and 5%, respectively, from the year-ago levels.

DoubleDown Interactive Co., Ltd. (DDI - Free Report) currently flaunts a Zacks Rank of 1. DDI has a trailing four-quarter earnings surprise of 22.1%, on average. The stock has surged 58.9% in the past year.

The Zacks Consensus Estimate for DDI’s 2024 sales and EPS indicates an increase of 12.6% and 15.8%, respectively, from the year-ago levels.

Published in