Core Viewpoint - Marriott International has reduced its full-year revenue growth and profit forecasts due to a slowdown in travel demand in the US, particularly affecting its lower-cost hotel segments [1][2][5]. Revenue and Profit Forecast - The company now expects 2025 revenue growth of 1.5% to 2.5%, down from a previous guidance of 1.5% to 3.5% [3]. - Profit guidance has been lowered to $9.82 to $10.08 per share, compared to the previous range of $9.85 to $10.08 [3]. Impact of Economic Factors - The slowdown is attributed to "heightened macro-economic uncertainty" and elevated inflation affecting budget-conscious travelers [4][3]. - A significant decline of 17% in bookings from government workers has also impacted lower-cost hotels [2]. Performance by Segment - Luxury hotel brands, including Ritz-Carlton and JW Marriott, experienced a 4.1% increase in room revenue in the US and Canada during the second quarter [7]. - The average room rate for luxury properties was reported at $417, while budget properties averaged $161 [7]. Overall Revenue Growth - Marriott's total revenue rose by 5% to $6.74 billion, driven by upscale properties and international business [8]. - The company did not comment on international tourism trends but noted a pullback in visitors from Canada and Mexico due to trade policy changes [8]. Legislative Impact - The signing of Trump's "One Big Beautiful Bill" is seen as a factor that reduced uncertainty in the industry, positively impacting consumer and franchisee confidence [10][11].

Group 1: Company Performance - Citigroup shares have outperformed at the start of 2025, returning 4% year to date despite stock market turbulence [1] - The bank's first-quarter earnings exceeded Wall Street expectations, with total revenue climbing by 3% year over year and earnings per share (EPS) increasing by 24% to $1.96 [5] - All five business segments contributed to strong performance, with wealth management achieving a 24% revenue increase and the markets group revenue climbing by 12% [6] Group 2: Strategic Initiatives - Under CEO Jane Fraser, Citigroup has transformed by streamlining international operations and divesting noncore businesses while investing in high-margin segments [4] - The bank's capital strength and strong reserves support its ability to navigate market uncertainties, with a revenue guidance for full-year 2025 between $83.1 billion and $84.1 billion, representing a 2% to 3% increase compared to 2024 [10] Group 3: Market Environment - The macroeconomic environment has shifted due to tariffs on imported goods, which may cause short-term economic challenges and lead to cautious client behavior [8] - However, Citigroup's Treasury and Trade Solutions business could benefit from new opportunities as corporate customers adjust their supply chains [9] Group 4: Valuation and Dividend - Citigroup is trading at 0.7 times its book value and 10 times its consensus 2025 EPS estimate, indicating it is fundamentally undervalued compared to peers like JPMorgan Chase and Bank of America [11][12] - The stock offers a 3% dividend yield, higher than Bank of America's 2.3%, supported by strong cash flows and a robust balance sheet [14] Group 5: Future Outlook - The company is well-positioned to continue rewarding shareholders, with optimism toward the U.S. economy suggesting potential stock price appreciation [16]