Summary
- Marriott International has powered through multiple recessions and industry-wide headwinds to be one of the leading brands in the US and around the world.
- Their 2016 merger with Starwood created a lodging powerhouse which operates around 15% of all available rooms in the United States and around 4% globally.
- Even as they expect to grow sales and income by 4.4% and 14.7%, respectively, alongside a substantial buyback plan, I believe a bump in dividends is necessary for investor optimism.
- Notwithstanding a dividend bump, I am bullish on the company's 2019 and believe it has room to grow 15% to 19% throughout the year, which should easily outperform the broader market indexes.
Throughout the last few years, the lodging industry has faced some uncertainties like recessions, lower spending and private home-sharing companies, which took a significant chunk of market share in the form of booked rooms per year.
Even still, Marriott International (MAR) has looked to industry consolidation through acquisitions and has boosted its brand awareness and customer retention through loyalty programs and nationwide marketing campaigns, which has allowed it to not only survive, but thrive.
