Wall Street edged lower by midday Tuesday as uncertainty surrounding trade policies lingered, with investors adopting a cautious approach ahead of Wednesday’s Federal Reserve meeting.
Marriott (NASDAQ: MAR) beat Q1 earnings expectations, fueled by global RevPAR growth and higher margins. The company added 12,200 rooms and reaffirmed its FY25 EPS outlook.
Global hospitality company Marriott (NASDAQ:MAR) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 4.8% year on year to $6.26 billion. Its non-GAAP profit of $2.32 per share was 3% above analysts’ consensus estimates.
Marriott International Inc. (NASDAQ: MAR) plans to acquire citizenM, a tech-savvy lifestyle hotel brand, for $355 million. The deal will add 36 hotels across major cities like New York, London, and Paris to Marriott's growing global portfolio.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Goldman Sachs anticipates that ongoing macroeconomic volatility and consumer strain will act as a drag on the more "macro-sensitive segments,” such as hotels.
International travel contributes only 5% of US room nights and 3% of arrivals, but brings in more revenue as international travelers stay longer and spend more. Canada is the largest source market, followed by Europe and Mexico.
Goldman Sachs analyst Lizzie Dove downgrades U.S. Lodging C-Corps and Timeshares due to weaker consumer demand, geopolitical uncertainty, and negative impacts from U.S. airlines. The forecast for 2025 RevPAR is lowered by 125 basis points, with a 45% probability of a U.S. recession. Preference shifts towards asset-light companies with global exposure, focusing on non-RevPAR and ancillary revenues amid uncertain macro conditions.
Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence.
With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
Gaming and lodging stocks are under pressure as recession risks mount, BofA Securities reports. With tariffs weighing on GDP, analysts warn of a potential 3%–8% EBITDA hit. Hotel and timeshare sectors remain the most exposed, while REITs and Gaming OpCos face heightened earnings risk. Stocks are now trading at their lowest valuations since the COVID-19 and GFC downturns.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Hyatt Hotels (NYSE:H) and the rest of the travel and vacation providers stocks fared in Q4.
