The economy resembles a dual-track highway as seen through the prism of hotel giant Marriott (MAR).
“I mean, there is certainly — pick your description — a K-shaped economic bifurcation of the consumer. We continue to see really consistent strength across luxury for the full year,” Marriott CEO Anthony Capuano said on Yahoo Finance (video above).
He added that it seems like Marriott’s business is “firing on all cylinders,” pointing to a lot of new hotels being built alongside strength with higher-income consumers.
Marriott’s fourth quarter performance and outlook added some concern, however, that a mixed US economy was continuing to weigh on consumers.
The purveyor of the Ritz-Carlton and JW Marriott brands reported adjusted earnings of $2.58 per share. Wall Street was expecting $2.62 per share.
Revenue per available room (RevPar), a metric of industry health that combines occupancy rates and room prices, increased 2% in 2025. In the US and Canada, RevPar fell slightly in the fourth quarter.
For the first quarter, Marriott expects per-share earnings of $2.50 to $2.55. Analysts expected $2.50 per share.
The company expects full-year earnings of $11.32 to $11.57 per share. The Street was at $11.43 per share.
The stock popped as investors cheered a likely big boost to profits from Marriott inking more lucrative credit card deals with partners like JPMorgan.
Capuano said the company is in active discussions. Marriott teased on its earnings call at least a 35% increase in the fees it collects from credit card companies this year.
Marriott stock is up about 14% year to date, outperforming the S&P 500’s (^GSPC) 2% advance.
Hilton (HLT) and Hyatt (H) are up 13% and 5%, respectively.
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance
