When it comes to investing like Warren Buffett, the goal is simple: buy great businesses at fair prices and hold them for the long run. But not every well-known company fits that mold. In this post, we compare two major players in the hospitality space — Marriott International (MAR) and Wynn Resorts (WYNN) — through the lens of Buffett-style value investing.
Marriott (MAR) has an enormous global footprint, with over 8,800 properties across 139 countries. Its competitive edge lies in its asset-light franchising model, powerful loyalty programs (Bonvoy), and economies of scale. This creates a wide moat — exactly what Buffett looks for.
Wynn (WYNN), on the other hand, is a luxury casino and resort operator with properties primarily in Las Vegas and Macau. It has brand strength in the premium segment, but its moat is narrower and dependent on discretionary travel and gaming trends, especially in China.
🏆 Winner: Marriott
| Metric | Marriott (MAR) | Wynn (WYNN) |
|---|---|---|
| Free Cash Flow (TTM) | ~$2.0 billion | ~$800 million (volatile) |
| Interest Coverage Ratio | >5× | ~2–3× |
| Debt Load | Moderate and manageable | Higher leverage and sensitivity |
| CapEx Needs | Low (asset-light) | Very High (owns and operates resorts) |
🏆 Winner: Marriott
Marriott’s earnings are driven by recurring franchise and management fees, making them relatively resilient even in downturns.
Wynn’s earnings depend on casino revenue, tourism, and high-spending customers — all of which can fluctuate dramatically with economic cycles or travel restrictions (e.g., Macau lockdowns).
🏆 Winner: Marriott
| Valuation Metric | Marriott (MAR) | Wynn (WYNN) |
|---|---|---|
| P/E Ratio | ~24x | ~22x |
| Price/FCF | ~20x | ~18x (but less consistent FCF) |
| Fair Value (estimates) | ~$275–$290 | ~$110–$140 |
| Current Price | ~$222 | ~$75 |
🏆 Slight Edge: Wynn on Value, but Marriott wins on Quality
| Criteria | Marriott | Wynn |
|---|---|---|
| Durable Moat | ✅ | ⚠️ |
| Consistent Earnings | ✅ | ❌ |
| Strong Free Cash Flow | ✅ | ⚠️ |
| Conservative Use of Debt | ✅ | ❌ |
| Predictable Business Model | ✅ | ❌ |
| Margin of Safety in Valuation | ⚠️ | ✅ |
If Warren Buffett were evaluating these two companies, Marriott (MAR) would likely come out ahead. It has a durable economic moat, stable cash flows, and low capital intensity — all hallmarks of Buffett’s investing principles.
While Wynn (WYNN) may offer more upside if gaming rebounds globally, its volatile cash flow, capital-heavy model, and macroeconomic sensitivity make it a speculative play, not a Buffett-style one.
Related Read: Understanding Economic Moats – The Secret Behind Buffett’s Winning Investments
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