NEW YORK – Marriott International, Inc. (NASDAQ: NASDAQ:MAR), the $81.25 billion hospitality giant with a "GREAT" financial health rating according to InvestingPro, has acquired Postcard Cabins, an outdoor hospitality brand known for its nature-based accommodations, expanding its travel experience offerings. Postcard Cabins, which began as Getaway in 2015, has grown to over 1,200 cabins at 29 locations, all within reach of major U.S. cities.
The brand's integration into Marriott's portfolio is a strategic move to cater to the growing demand for nature-immersive travel. With impressive gross profit margins of 82% and revenue growth of 7.25% over the last twelve months, Marriott continues to demonstrate strong operational performance. Guests of Postcard Cabins have spent more than 40 million hours in nature, with the brand hosting numerous life events, including over 600 wedding proposals and close to 100,000 dog stays.
Marriott's acquisition reflects an understanding of the shift in traveler preferences towards restful and wellness-oriented experiences. The Postcard Cabins brand is expected to become part of Marriott's outdoor-focused collection and will be integrated into Marriott's systems and platforms, including Marriott.com and the Marriott Bonvoy mobile app, anticipated in 2025.
Jon Staff, Founder and CEO of Postcard Cabins, expressed enthusiasm for reaching a global audience through Marriott's expansive network. Leeny Oberg, Marriott International's Chief Financial Officer and Executive Vice President, Development, highlighted the company's commitment to diverse travel experiences, adding that the acquisition will enhance Marriott Bonvoy's offerings in nature-rich destinations.
Goldman Sachs (NYSE:GS) & Co. LLC acted as the exclusive financial advisor for the transaction. Postcard Cabins aims to continue being a leader in outdoor hospitality, emphasizing the importance of rest as a vital component of wellness.
The financial terms of the acquisition have not been disclosed. This expansion is part of Marriott's broader strategy to diversify its portfolio and offer unique travel experiences. While trading near its 52-week high, InvestingPro analysis suggests the stock is currently overvalued, with over 14 additional key insights available to subscribers. The information in this article is based on a press release statement from Postcard Cabins.
In other recent news, Marriott International has been the subject of several financial updates. Truist Securities has raised the price target for Marriott to $277, maintaining its Hold rating. The revision is based on an increased multiple applied to the company's projected earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025. Meanwhile, BofA Securities has also increased its price target for Marriott to $300, retaining a Neutral rating. The new target is based on the company's third-quarter 2024 results and revised operating assumptions.
TD Cowen, while maintaining its Buy rating on Marriott, reduced the stock's price target from $295.00 to $283.00, reflecting the company's third-quarter performance and future expectations. On the other hand, BMO Capital Markets raised Marriott's price target from $255.00 to $265.00, maintaining a Market Perform rating, and highlighting the company's recently announced cost-saving initiatives aimed at 2025.
Mizuho (NYSE:MFG) Securities increased the price target for Marriott to $246.00, maintaining a Neutral rating. The revision reflects a more optimistic view of the company's future performance, particularly in relation to its fee growth and the contribution of MGM rooms to net unit growth in 2024. These are the recent developments that have been shaping Marriott's financial landscape.
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