Marriott Adds to Its Alternative Accommodation's Offering With Its Sonder Partnership

We expect Marriott's global share to increase further over the next several years, due to its strong intangible asset, source of its wide moat, which is endeared by both hotel owners and travelers. In the past few years, Marriott has renovated a meaningful percentage of core Marriott and Courtyard hotels, and since 2019, has added several new brands, which support our constructive stance along with a favorable next-generation traveler position. In fact, recent brands StudioRes, City Express, and Four Points, not only extend Marriott's reach into the midscale and extended-stay segments but could also add several hundred hotels each over the next several years. Additionally, its August 2024 partnership with Sonder adds about 10,000 rooms to a growing homes, villas, and apartments portfolio. Also, we see Marriott as having an industry-leading loyalty program, with 210 million members (as of June 30, 2024), which incentivizes third-party hotel owners to join the company's brands. Additionally, we believe the 2016 acquisition of Starwood and 2023 partnership with MGM's Vegas portfolio has strengthened Marriott's long-term brand advantage, as Starwood's global luxury portfolio and MGM's leading presence in the gaming mecca complement Marriott's dominant upper-scale position in North America.