The travel sector is back in business, if the latest balance sheets from Airbnb and Marriott are anything to go by. Both companies are benefiting from the reopening of borders, flexible working conditions and the upturn in business travel.
Presentation and estimate of actions
This will involve presenting shares on the stock market of the two leaders to determine which is better positioned.
Marriott
Current conditions favour MarriottWe're looking forward to working with them, as conferences speed up and group travel increases. According to Dan Wasiolek, Morningstar's chief equity analyst, this company's shares are better value. The company has a extensive network hotel brands, luxury chains and is present in 139 countries. For Wasiolek, Marriott shares are valued at 4 stars, at 178 $ per share compared with 164 $ for the reasons given above.
Airbnb
The appraiser reduced his valuation to Airbnb's actions based on factors implying a decline in demand. He places the stock at a 3-star rating of $113 per share, up from $116 when business was booming. Wasiolek says Airbnb is an excellent company with superior growth, but is priced higher. Its board of directors has approved a $2 billion share buyback program. This shows the a strong balance sheet and, in turn, its cash flow.
Just remember that Marriott shares show a certain stability over the year, while the price ofAirbnb fell by 25.32 %. For Wasiolek, Marriott shares trade at 14 times EV/EBITDA while Airbnb shares imply a multiple of 23 times EV/EBITDA.
Continuity in travel requests
The chief analyst believes that investors shouldn't worry, because there are enough unaccepted applications. For him, the market may experience an economic slowdown, but not to the point of negative growth. His words are backed up by Marriott's CEO, who presents results that point to an increase in travel. For Anthony Capuano, leisure room nights were more than 15 % higher than during the pandemic period.
He is therefore optimistic and forecasts profit margins per share for the third quarter and year-end. According to its outlook, profits will rise from 1.59 $ to 1.69 $, and on an annual basis from 6.33 $ to 6.59 $. Please note that these estimates are high, in contrast to the Wall Street estimates. STR, an industry player specializing in analyses, claims that the Marriott CEO's forecasts are justified, despite investor skepticism.
This organization states in a recent report that sources are pointing to a possible solid to strong group-led fall. According to STR's contacts, unaccepted corporate demand would fill the void left by summer leisure tourists. The organization's executives claim that fears or skeptical speeches don't match the current situation.
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