Marriott (Nasdaq:MAR) is about to release earnings. Ponder this Bear Case Scenario:
Room rates and occupancy still have not recovered to pre-recession levels. The economy still shows signs of weakness. Marriott has not completed the road back to prosperity. Economic head winds and competition keep getting in the way.
Rooms in development are very small in relation to Starwoods and Hyatt. Marriott runs the risk if becoming dated which means low occupancy and lower rates. Not good.
Marriott is 80% exposed to North America. This over-exposes to a single economy and misses on global opportunity.
George Gutowski writes from a caveat emptor perspective.