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MAR Analysis: Marriott's $92 Billion Asset-Light Empire Generates Record Cash Flow — But Insiders Are Selling Near the 52-Week High

Marriott International (NASDAQ: MAR) has quietly become one of the most successful capital-light business models in corporate America. At $347.93 per share, the stock trades within 6% of its 52-week high of $370 and has gained nearly 70% from its 52-week low of $205.40 — a rally that has pushed the company's market capitalisation to $92.2 billion. The question facing investors today is whether Marriott's premium valuation is justified or whether the stock has run too far, too fast. The numbers tell a compelling but complicated story. Marriott generated $3.21 billion in operating cash flow and $2.61 billion in free cash flow during fiscal 2025 — both records. Revenue reached $26.19 billion across four quarters of steady growth. Yet insiders have been selling aggressively near the highs: CEO Anthony Capuano unloaded 63,000 shares at $359.22 in mid-February, while other executives offloaded additional blocks at similar prices. With a trailing P/E of 36.6x and negative book value — a feature of the asset-light franchise model, not a flaw — Marriott demands that investors pay a steep premium for what is undeniably one of the highest-quality cash-flow machines in the hospitality sector. Here is what the data says about whether that premium is still worth paying.

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HLT Analysis: Hilton's Capital-Light Empire Commands a Premium — But Bill Ackman Just Walked Away

Hilton Worldwide Holdings (NYSE: HLT) is the world's fastest-growing hotel company by unit count, operating a capital-light franchise and management model that has made it one of the most profitable businesses in the travel sector. With 24 brands spanning luxury (Waldorf Astoria, Conrad) to economy (Spark by Hilton), the company manages or franchises over 8,000 properties globally while owning virtually none of the real estate — a model that converts revenue into free cash flow at rates that make most industrials jealous. At $311.94 per share, HLT commands a $72.5 billion market cap and trades at a trailing P/E of nearly 51x — a valuation that prices in years of compounding growth from its 500,000+ room development pipeline. The stock sits just 6.6% below its 52-week high of $333.86 and has gained 59% from its 52-week low of $196.04, dramatically outperforming the broader hospitality sector. But cracks in the bull narrative are emerging. Bill Ackman's Pershing Square — one of Hilton's most prominent institutional backers — fully exited its HLT position in Q4 2025, rotating capital into AI infrastructure plays like Meta and Amazon. Several other institutional holders trimmed positions in recent weeks. Meanwhile, Q4 2025 results showed a notable sequential deceleration in revenue and margins, with net income dropping 29% quarter-over-quarter. The question for investors now: is Hilton's premium valuation a reward for compounding excellence, or a trap set by decelerating fundamentals?

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