Marriott International (MAR): Assessing Valuation as StudioRes Expansion Targets Growing Extended-Stay Demand

Marriott International (MAR) just marked a major milestone, breaking ground on its 10th StudioRes hotel alongside Noble Investment Group. This event is more than another ribbon-cutting; it highlights the company’s commitment to expanding its new extended-stay offering at a time when demand for long-term accommodations is heating up. The move comes on the heels of the brand’s debut property in Fort Myers, Florida, and speaks to Marriott’s push to target mobile professionals and relocating families seeking consistency and functionality in their stays.

StudioRes is fast becoming central to Marriott’s growth story, with over 50 projects in its pipeline and roughly half already underway. Over the past year, Marriott’s stock has delivered a 16% gain, while its three-year return stands out at 75%, reflecting both industry recovery and investor willingness to reward expansion initiatives. However, shares have moved primarily sideways recently, suggesting that the market is waiting for proof that Marriott’s extended-stay strategy will deliver consistent returns, especially as broader travel trends moderate.

With the StudioRes rollout accelerating and investor sentiment appearing cautiously optimistic, the key question is whether Marriott International’s valuation is keeping up with its growth plans, or if the market is already baking in all the upside.

Most Popular Narrative: 5.3% Undervalued

According to the most followed analysis, Marriott International is trading below its estimated fair value, suggesting there could be further upside if the company delivers on its ambitious growth strategy.

Global expansion continues to accelerate, with net rooms growth approaching 5% and a record pipeline (over 590,000 rooms, 40% under construction). This reflects strong demand for Marriott's brands in international markets, particularly APAC and EMEA, where a rising middle class is driving double-digit RevPAR increases and provides a foundation for multi-year revenue growth.

Curious how Marriott's future value could rise? There's one critical set of projections driving this popular narrative, but it's not what you'd expect. If you want to uncover the underlying growth formula behind this fair value—where next-generation tech, global room expansion, and a major loyalty surge all collide—you'll want to get the full breakdown.

Result: Fair Value of $281.38 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent economic uncertainty and potential slowdowns in key international markets could limit Marriott’s upside and challenge the current fair value narrative.

Find out about the key risks to this Marriott International narrative.

Another View: Market Pricing Signals

Looking at how the company trades compared to its sector, Marriott appears priced higher than typical industry levels. This might reflect optimism, but could the market be overlooking risks? What’s your verdict?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Marriott International to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Marriott International Narrative

If this perspective doesn’t match your own, or you’d rather dive into the numbers yourself, you can craft your personalized view in just a few minutes: Do it your way.

A great starting point for your Marriott International research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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