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BETHESDA, Md. - Marriott International, Inc. (MAR), with its impressive market capitalization of $67 billion and industry-leading gross profit margins of 82%, has expanded its hotel portfolio by opening the first City Express by Marriott property in Duluth, Georgia, marking the company’s foray into the midscale segment in the United States and Canada. The launch of City Express by Marriott Duluth, available for bookings as of March 2025, is part of a broader strategy to open over a dozen properties across the region within the year.
The City Express by Marriott brand aims to cater to both business and leisure travelers by offering stylish, comfortable guestrooms with amenities like high-speed internet and complimentary breakfast. Additional conveniences include 24-hour markets, pet-friendly accommodations, and on-site fitness centers.
Noah Silverman, Global Development Officer for the U.S. and Canada at Marriott, highlighted the brand’s success in the Caribbean and Latin America, expressing enthusiasm for bringing the same value to North American travelers. Diana Plazas-Trowbridge, Chief Lodging Products Officer for the U.S. and Canada, echoed these sentiments, emphasizing the brand’s commitment to providing seamless and efficient stays. According to InvestingPro data, Marriott’s revenue growth of 5.05% and stable dividend yield of 1.02% reflect the company’s strong market position.
With over 45 signed agreements, Marriott plans to accelerate the expansion of City Express by Marriott in key destinations such as New Orleans, Chicago, Orlando, and Port Hope, Ontario, with openings expected in the second quarter of 2025 and later in the year.
The 83-room City Express by Marriott Duluth is located a 30-minute drive from downtown Atlanta, offering guests easy access to the city’s attractions while enjoying the local dining scene and outdoor activities.
Since acquiring the City Express brand portfolio in 2023, Marriott has been focusing on the affordable midscale segment, with plans to introduce the brand to new markets in South America and launch an extended stay brand, StudioRes, in the U.S. and Canada. InvestingPro analysis shows the company maintains a GOOD financial health score, with multiple additional insights available to subscribers through comprehensive Pro Research Reports covering 1,400+ top stocks.
City Express by Marriott properties will participate in Marriott Bonvoy, allowing guests to earn and redeem points across Marriott’s extensive brand portfolio. Trading at a P/E ratio of 29.76, Marriott’s stock currently appears to be fairly valued according to InvestingPro’s Fair Value analysis, with additional ProTips and detailed metrics available to subscribers.
This expansion is based on a press release statement from Marriott International, Inc., which outlines the company’s strategic growth in the midscale hotel market.
In other recent news, Marriott International reported strong financial results for the fourth quarter of 2024, with earnings per share (EPS) of $2.45, surpassing the forecast of $2.37. The company’s revenue also exceeded expectations, reaching $6.43 billion compared to the anticipated $6.37 billion. Stifel analysts responded by raising their price target for Marriott shares to $295 from $283, while maintaining a Hold rating. In a similar move, Mizuho Securities increased their price target for Marriott to $293 from $246, maintaining a Neutral rating, despite noting some concerns about the company’s earnings algorithm for 2025.
Additionally, Marriott issued $2 billion in new debt, with the proceeds intended for general corporate purposes, such as working capital and potential acquisitions. This financial strategy aligns with Marriott’s ongoing efforts to strengthen its balance sheet. Meanwhile, Truist Securities maintained a Buy rating on Marriott Vacations Worldwide, with a price target of $142, following concerns over its stock performance compared to peers in the lodging-leisure sector.
Marriott’s financial performance reflects a robust end to the quarter, with the company outperforming both market expectations and its own forecasts. The company’s strategic initiatives, including expanding its luxury portfolio and digital transformation efforts, are expected to support future growth. Despite these positive developments, some investor concerns remain about Marriott’s future growth prospects.
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