Following Marriott's (MAR) latest (Q2 2017) results, it's still unclear whether management is trying to act conservatively by bringing down the North American growth numbers, or if softness in the region is a real concern.
In the last 3 months, almost every region saw its occupancy rate increase by at least 1.3% compared to the same period last year, particularly thanks to stronger Chinese outbound travel. While growth rates from Chinese travelers are strong, although from a lower base than mature markets, we believe the recent announcement of a joint venture with Alibaba (NYSE:BABA) will secure high-single-digit growth rates for Marriott in the region for the foreseeable future.
