Investors should buy shares of Marriott International as the year begins, according to BMO. The bank upgraded the hotel operator to outperform from market perform. Analyst Ari Klein also hiked his price target to $370 from $285, which implies a gain of 14%. Klein wrote his upgrade reflects his generally positive 2026 outlook for the sector. He views Marriott as more of an “offensive play” than counterpart Hilton Worldwide due to its higher incentive management fee and exposure to the high-end and international markets. MAR 1Y mountain MAR 1Y chart “MAR’s annual [revenue per available room] growth outperformed HLT’s by an average 180bps 2023-2025, and we expect the relative outperformance to continue in 2026,” he wrote. “We are constructive on lodging for 2026 and believe MAR is well-positioned with a high-end portfolio and potential EBITDA upside from its credit card program renewals.” Marriott’s royalty fee-based asset-light model is also very attractive, Klein said. In particular, he applauded the business model’s low capital intensity and fixed costs that have resulted in strong cash generation and annual net unit growth of around 4%. ‘We have previously underestimated the durability of growth and focused too heavily on MAR’s expanding multiple. If anything, MAR’s ability to grow despite the macro supports further potential multiple expansion,” he added. Klein also pointed out that a renewal in Marriott’s credit card program could provide an additional boost to the company’s EBITDA. Klein said that this upside potential has not been priced into consensus expectations. Shares of Marriott International have climbed 19% in the past year.
