Marriott International, Inc. (MAR): A Bull Case Theory

We came across a bullish thesis on Marriott International, Inc. (MAR).  on Incremental Returns’ Substack. In this article, we will summarize the bulls’ thesis on MAR. Marriott International, Inc. (MAR). 's share was trading at $257.91 as of 16^th June. MAR’s trailing and forward P/E were 29.34  and 25.45 respectively according to Yahoo Finance.

Marriott has built a brand synonymous with quality and consistency, offering a spectrum of accommodations from luxury to budget-conscious options. But its true competitive strength lies beyond branding—in the strategic architecture that sustains its moat. Marriott’s long-term management and franchise agreements, often starting at 20 years and renewable up to 50, create formidable barriers to entry.

In a physically constrained hotel market, this allows Marriott to lock in prime locations and effectively block out competition for decades. For hotel owners, switching from Marriott can be financially perilous. Exiting the Marriott system not only severs access to its massive Bonvoy loyalty base—which accounted for over half of global room nights in 2022—but also risks a drastic drop in bookings and revenue, putting hotel operators' leveraged assets at risk.

Additionally, aligning with a new brand may require expensive renovations to meet updated brand standards. Marriott makes switching both economically and operationally unappealing. On the customer side, Bonvoy further enhances retention by leveraging loss aversion psychology; guests feel committed to the ecosystem to maximize their points, discouraging defection to other chains.

With Bonvoy now the largest hotel loyalty program globally, Marriott enjoys network effects that reinforce its leadership. More members make the platform attractive to hotel owners, while more participating hotels make the program more valuable to travelers. The recent partnership with MGM Resorts, adding over 40,000 Las Vegas rooms, exemplifies this flywheel.

Altogether, Marriott presents a powerful case for long-term investment, combining durable customer loyalty, high franchise stickiness, and the compounding benefits of a scaled ecosystem.

Previously, we highlighted a bullish thesis on Marriott Vacations Worldwide (VAC) by Psychological_Ad4317 on the Value Investing subreddit, as a deep value play trading at historically low multiples with a 5% yield and insider buying signalling confidence. The stock has appreciated by roughly 19% in price since then. The thesis on Marriott International (MAR) builds on the brand’s strength from a quality-income lens to a network-moat thesis, emphasizing its franchise durability and Bonvoy-driven customer and owner stickiness.

Marriott International, Inc. (MAR).  is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Marriott International, Inc. (MAR).  at the end of the first quarter which was 69 in the previous quarter. While we acknowledge the risk and potential of MAR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.