Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hotel operator Marriott International (NYSE: MAR ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Marriott's business and see what CAPS investors are saying about the stock right now.
Marriott facts
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Headquarters (Founded)
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Bethesda, Md. (1971)
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Market Cap
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$9.4 billion
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Industry
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Lodging
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Trailing-12-Month Revenue
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$11.31 billion
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Management
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Chairman/CEO Willard Marriott, Jr.
President/COO Arne Sorenson
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Trailing-12-Month Return on Equity
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(38.3%)
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1-Year Return
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105%
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Cash / Debt
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$130 million / $2.7 billion
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Competitors
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Starwood Hotels & Resorts (NYSE: HOT )
Wyndham Worldwide (NYSE: WYN )
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CAPS Members Bearish on MAR Also Bearish on
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Sears Holdings (Nasdaq: SHLD )
AIG (NYSE: AIG )
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CAPS Members Bullish on MAR Also Bullish on
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General Electric (NYSE: GE )
Google (Nasdaq: GOOG )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 32% of the 437 members who have rated Marriott believe the stock will underperform the S&P 500 going forward. These bears include aquabat63 and All-Star lucky7K, who is ranked in the top 15% of our community.
Earlier this year, aquabat63 had a few reservations about buying into the stock:
I enjoy Marriott hotels and I try to stay in them when I'm on the road for business. But as an investment, I just don't like it. Given the economy, I see both businesses and leisure travelers trading down to a more affordable hotel (not that Marriott charges abnormally high prices for rooms).
In a pitch from two weeks ago, lucky7K also urged Fools to start checking out of Marriott:
Everyone is cutting their travel budgets. Staying in cheaper 2 or 3 star hotels is the first people think of doing. That's driving down occupancy and room rates big time. And then there is all that debt coming due … for loans on properties that are underwater (aka they are worth less than the loan). As the commercial real-estate bubble is popping that makes life even harder for our friends at the Marriot. Oh, and did the owners and their families mention that they are cashing out their stocks?
What do you think about Marriott, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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