Marriott CEO: We are seeing a K-shaped economy

Core Viewpoint - The economy is experiencing a K-shaped recovery, with luxury segments showing strength while mixed economic conditions affect consumer behavior [1]. Group 1: Company Performance - Marriott's CEO noted that the company is performing well, with new hotel developments and strong demand from higher-income consumers [2]. - The company reported adjusted earnings of $2.58 per share for the fourth quarter, slightly below Wall Street's expectation of $2.62 per share [2]. - Revenue per available room (RevPar) increased by 2% in 2025, although it fell slightly in the US and Canada during the fourth quarter [3]. Group 2: Future Outlook - For the first quarter, Marriott expects per-share earnings between $2.50 and $2.55, aligning with analyst expectations [3]. - The company anticipates full-year earnings of $11.32 to $11.57 per share, compared to the Street's expectation of $11.43 per share [3]. Group 3: Market Reaction - Marriott's stock rose approximately 14% year-to-date, outperforming the S&P 500's 2% increase, driven by positive investor sentiment regarding new credit card deals [4]. - The company is in discussions to increase fees collected from credit card companies by at least 35% this year [4].