Marriott International, Inc. (NASDAQ: MAR) is a leading global hospitality company with a broad portfolio of hotels and related lodging facilities. The company operates and franchises hotels and licenses vacation ownership resorts worldwide. Marriott faces competition from other major hotel chains like Hilton and Hyatt. Recently, Barclays maintained a "Negative" grade for Marriott, keeping the stock as "hold" with a price target increase to $276 from $274, as highlighted by TheFly.
Despite Barclays' cautious stance, several investment firms have shown interest in Marriott. B. Riley Wealth Advisors Inc. acquired 3,507 shares valued at approximately $958,000 during the second quarter. This move aligns with a broader trend of hedge funds adjusting their holdings in Marriott. Notably, Norges Bank made a significant investment, purchasing a new stake worth $639 million.
Alliancebernstein L.P. also increased its stake in Marriott by 194.7%, now owning over 1.7 million shares valued at $407 million. Kingstone Capital Partners Texas LLC acquired a new stake valued at approximately $266 million. Wellington Management Group LLP increased its holdings by 16.4%, indicating strong institutional interest despite recent stock volatility.
Marriott's stock reached a new 52-week high following an upgrade by The Goldman Sachs Group, which raised its rating from neutral to buy and set a new price target of $345. On the day of the upgrade, the stock traded as high as $310.23, with over one million shares exchanged. However, the stock has experienced a decline, dropping approximately 8% over the past week.
This downturn followed management's announcement at a Barclays conference, indicating that fourth-quarter revenue per available room (RevPAR) is expected to be at the lower end of their guidance range. The company faces a challenging macroeconomic environment, particularly in the U.S., where RevPAR growth has slowed. Despite these challenges, international markets have shown modest growth, and investors are weighing short-term weaknesses against Marriott's robust development pipeline and strong cash generation capabilities.
