Insider Monkey favors Marriott as the better buy: its pipeline is 629,000 rooms versus Hilton’s 541,300, and it trades at about 36 times trailing earnings versus Hilton’s 45. Hilton led in room growth, 6.1% to 4.5%, but the article says its valuation premium is too high.
Hilton’s revenue per available room rose 3.9%, versus Marriott’s 3.4%. Hilton expects 6%–7% full-year room growth; Marriott’s 4.5%–5% guidance is at the low end, with the company pointing to Middle East construction delays.
Marriott also has the larger loyalty network, which the article describes as a draw for hotel owners. Pipeline rooms are signed but not yet open, and a large share of Marriott’s depends on overseas owners completing construction; the article says international demand has recently been the weaker half of the market. It identifies Marriott’s next-quarter net room growth as a key metric: if it moves toward the top of guidance while Hilton stays put, the valuation discount could narrow.
