VOL. XCIV, NO. 247

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Thursday, January 1, 2026

Marriott International, Inc.

MAR · NASDAQ

Market cap (USD)
SectorConsumer
CountryUS
Data as of
Moat score
72/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Marriott is a global lodging company that primarily earns asset-light fees through hotel franchising, management, and licensing. Its moat is largely demand- and network-driven: a broad brand portfolio reinforced by Marriott Bonvoy, centralized reservation systems, and direct digital channels. Long-dated franchise agreements and platform scale in marketing/technology help sustain fee streams, though competition from other chains, OTAs, and alternative accommodations remains intense. Key risks include travel cyclicality, distribution cost inflation, and technology/cyber disruptions to reservations and loyalty systems.

Primary segment

U.S. & Canada Lodging Platform

Market structure

Competitive

Market share

16%-18% (reported)

HHI:

Coverage

2 segments · 6 tags

Updated 2026-01-01

Segments

U.S. & Canada Lodging Platform

Branded hotel franchising & management platform (including loyalty and reservation systems)

Revenue

Structure

Competitive

Pricing

moderate

Share

16%-18% (reported)

Peers

HLTIHGHWH+4

International Lodging Platform

Branded hotel franchising & management platform (including loyalty and reservation systems)

Revenue

Structure

Competitive

Pricing

moderate

Share

3.5%-4.5% (reported)

Peers

HLTIHGHAC.PA+5

Moat Claims

U.S. & Canada Lodging Platform

Branded hotel franchising & management platform (including loyalty and reservation systems)

Competition includes other hotel chains, independent hotels, OTAs, and alternative accommodations.

Competitive

Brand Trust

Demand

Strength

Durability

Confidence

Evidence

Marriott positions brand reputation/quality as a key competitive factor that supports guest preference and owner willingness to affiliate at premium fee rates.

Erosion risks

  • Brand damage from service failures, safety/security incidents, or data breaches
  • Feature/experience parity among global hotel brands reducing differentiation
  • Macro-driven downtrading to lower-priced alternatives

Leading indicators

  • Net Promoter Score / guest satisfaction trends
  • ADR premium vs local comp sets
  • Owner signings and renewals in key brands

Counterarguments

  • Hotel rooms are frequently comparison-shopped; location and price can dominate brand preference
  • Brand affiliation is common, limiting how exclusive brand advantage can be

Two Sided Network

Network

Strength

Durability

Confidence

Evidence

Marriott Bonvoy links a large member base with a broad hotel network; higher member participation drives repeat bookings and increases the value of affiliation for hotel owners.

Erosion risks

  • Loyalty point inflation/devaluation reducing member engagement
  • Regulatory limits on data usage/targeted marketing
  • Disintermediation by OTAs and metasearch reducing direct relationships

Leading indicators

  • Share of room nights booked by loyalty members
  • Co-branded credit card engagement and fees
  • Direct channel contribution (Marriott.com/app) vs OTAs

Counterarguments

  • Consumers and corporate travelers can multi-home across hotel loyalty programs
  • Large OTAs can weaken hotel program differentiation by shifting bookings toward price-led channels

Distribution Control

Supply

Strength

Durability

Confidence

Evidence

Direct digital channels plus centralized reservation systems and proprietary revenue-management capabilities support demand capture and pricing optimization.

Erosion risks

  • OTA bargaining power and marketing spend inflation
  • Search and mobile platform rule changes (e.g., Google) impacting traffic acquisition
  • System outages or cybersecurity incidents affecting reservations/loyalty systems

Leading indicators

  • Direct booking share trend
  • Customer acquisition cost (digital marketing efficiency)
  • Reservation/loyalty system uptime and incident frequency

Counterarguments

  • OTAs and metasearch remain key demand generators; full distribution disintermediation is unlikely
  • Other global hotel chains have comparable reservations and revenue management capabilities

Long Term Contracts

Demand

Strength

Durability

Confidence

Evidence

Franchise agreements are typically long-dated, supporting fee durability and reducing near-term churn of affiliated properties.

Erosion risks

  • Owner negotiations pressure fee rates at renewal/rebranding points
  • Brand standards compliance disputes or service failures driving terminations
  • Increased incentives/guarantees required to sign new deals

Leading indicators

  • Renewal/retention rates and reflagging activity
  • Net rooms growth in U.S. & Canada
  • Level of guarantees and key money required for signings

Counterarguments

  • Contracts expire and owners can reflag; long terms delay but do not eliminate competition
  • Economic cycles can reduce owner profitability and increase demands for concessions

International Lodging Platform

Branded hotel franchising & management platform (including loyalty and reservation systems)

International markets face additional FX, regulatory, and geopolitical variability; alternative accommodations and OTAs can be particularly strong in some regions.

Competitive

Brand Trust

Demand

Strength

Durability

Confidence

Evidence

Global brand portfolio supports traveler trust and owner affiliation, particularly in upscale and business travel segments.

Erosion risks

  • Local brand champions and regional chains competing on cultural fit and price
  • Geopolitical events or nationalism impacting brand perception
  • Inconsistent service delivery across franchised properties

Leading indicators

  • International RevPAR vs peers by region
  • Net rooms growth outside U.S. & Canada
  • Brand strength metrics in key markets (survey/awareness)

Counterarguments

  • In many markets, independent supply is abundant and price-led competition is intense
  • Brand affiliation can be less prevalent than in the U.S., limiting brand-based advantage

Two Sided Network

Network

Strength

Durability

Confidence

Evidence

A large global loyalty member base increases direct demand flow to international properties and supports owner economics; owners increase network breadth that in turn increases member value.

Erosion risks

  • Regulatory intervention affecting loyalty economics and consumer data
  • Local OTAs and super-apps dominating travel search and booking
  • Program complexity reducing perceived value for international members

Leading indicators

  • Global share of room nights booked by loyalty members
  • International co-branded credit card footprint and economics
  • Direct booking share growth in key international markets

Counterarguments

  • Travelers can earn/redeem across multiple loyalty programs; differentiation can narrow
  • Alternative accommodations can divert leisure demand in many cities

Distribution Control

Supply

Strength

Durability

Confidence

Evidence

Centralized reservations and direct channels improve distribution economics and allow yield management across regions, but OTAs remain important and powerful.

Erosion risks

  • Dependence on OTAs in markets where direct brand traffic is weaker
  • Platform outages or cyber incidents affecting reservations/loyalty
  • Regulatory restrictions on digital marketing and personalization

Leading indicators

  • Direct vs OTA mix by major region
  • Digital app adoption and engagement internationally
  • System uptime and incident disclosures

Counterarguments

  • Booking and Trip.com ecosystems can be the default travel gateway in many markets
  • Peers invest heavily in similar digital and distribution capabilities

Long Term Contracts

Demand

Strength

Durability

Confidence

Evidence

Long-dated franchise and management contracts support multi-year fee streams as the system expands internationally.

Erosion risks

  • Greater need for owner incentives/guarantees in developing markets
  • Contract disputes and enforcement differences across jurisdictions
  • Local regulation affecting franchising and fee repatriation

Leading indicators

  • International net rooms growth and pipeline
  • Guarantees/key money trends by region
  • Renewals/terminations and reflagging events

Counterarguments

  • Owners can reflag at expiration or negotiate aggressively as competing brands expand
  • Country-specific shocks can impair hotel economics and contract performance

Evidence

sec_filing
Marriott International, Inc. Form 10-K (FY ended Dec 31, 2024) - Brands and IP

"our brand names, trademarks, service marks, trade names, and logos are very important to our business"

Direct statement that brand/IP are central assets for demand generation and owner affiliation.

sec_filing
Marriott International, Inc. Form 10-K (FY ended Dec 31, 2024) - Competition factors

"We compete for guests in many areas, including brand recognition and reputation"

Supports brand/reputation as an explicit basis of competition in lodging.

sec_filing
Marriott International, Inc. Form 10-K (FY ended Dec 31, 2024) - Loyalty booking mix

"In 2024, 72 percent of our U.S. hotel room nights and 65 percent of our global hotel room nights were booked by Loyalty Program members."

High member booking mix supports repeat-business and loyalty-driven demand.

sec_filing
Marriott International, Inc. Form 10-K (FY ended Dec 31, 2024) - Value to hotel owners

"benefits of our Loyalty Program, centralized reservation systems, marketing programs"

Management explicitly ties owner attractiveness to loyalty + reservations + marketing - consistent with a two-sided network dynamic.

sec_filing
Marriott International, Inc. Form 10-K (FY ended Dec 31, 2024) - Co-branded credit cards (Loyalty Program funding)

"Payments received under our co-branded credit card agreements represent a significant funding source for the Loyalty Program."

Supports durability/economics of the loyalty platform via partner-funded points and benefits.

Showing 5 of 17 sources.

Risks & Indicators

Erosion risks

  • Brand damage from service failures, safety/security incidents, or data breaches
  • Feature/experience parity among global hotel brands reducing differentiation
  • Macro-driven downtrading to lower-priced alternatives
  • Loyalty point inflation/devaluation reducing member engagement
  • Regulatory limits on data usage/targeted marketing
  • Disintermediation by OTAs and metasearch reducing direct relationships

Leading indicators

  • Net Promoter Score / guest satisfaction trends
  • ADR premium vs local comp sets
  • Owner signings and renewals in key brands
  • Share of room nights booked by loyalty members
  • Co-branded credit card engagement and fees
  • Direct channel contribution (Marriott.com/app) vs OTAs
Created 2026-01-01
Updated 2026-01-01

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