## **Pros:** ✅ **Extensive Global Portfolio:** Marriott operates a vast global network of hotels across a wide range of segments; from luxury (Ritz-Carlton, St. Regis) to midscale and extended stay (Courtyard, Residence Inn). ✅ **Asset-Light Business Model:** Marriott primarily uses a franchise and management contract model, enabling it to generate recurring, high-margin fee income without the capital intensity of owning properties, enhancing return on invested capital. ✅ **Loyalty Ecosystem as Competitive Moat:** Marriott Bonvoy, its global loyalty program, strengthens customer retention and drives repeat business across its portfolio. The loyalty program is also a powerful tool for cross-selling and demand optimization. ✅ **Resilient Shifts in Travel Demand:** Marriott is well-positioned to benefit from long-term tailwinds in global tourism, including the recovery of international travel, the rise of “leisure” travel, and increasing demand for flexible, branded lodging solutions. ## **Cons:** ❌ **Competitive Threats:** Marriott competes globally with Hilton, Hyatt, Accor, and emerging lifestyle and boutique brands. Digital-native disruptors like Airbnb also pose a long-term alternative to traditional lodging, especially for leisure travelers. ❌ **International Tourism Risks:** Stricter immigration policies, geopolitical tension, in middle east and negative perceptions of U.S. foreign policy under a second Trump term could reduce inbound travel to the U.S. and weaken American traveler sentiment abroad, impacting Marriott’s performance both domestically and internationally. ❌ **Franchise Reliance:** While the asset-light model offers capital efficiency, it also means Marriott is dependent on third-party owners for service delivery. Any lapses in quality can damage brand. ❌ **North America Economic Exposure:** With around 60% of its room base located in North America, Marriott is more exposed to an economic downturn in this region compared to its competitors. ❌ **Economic Sensitivity:** The hospitality industry is highly sensitive to economic conditions, consumer spending, and travel trends. ❌ **Labor & Cost Inflation:** The hospitality sector is labor-intensive. Rising wages, staffing shortages, and inflation in property-related expenses can pressure margins for both Marriott and its franchisees. ❌ **High Debt Levels:** Marriott carries significant debt. While the company has strong revenue streams, the high debt levels could pose risks, particularly in economic downturns.^