As you can see, Marriott is enjoying healthy double-digit growth across many of its regions. Furthermore, more units, times higher revenues per unit, spells steady increases in the fees that the company collects from owners and franchisees:

By leveraging its core brands and taking advantage of a favorable operating climate, Marriott has seen its fee-based income soar over the past three years. More importantly, operating cash flows have also been climbing, and earnings have jumped +70% to $1.66 per share. Of course, as Warren Buffett would remind us, today's investors receive nothing from yesterday's growth -- it's tomorrow that counts. And on that front, investors have plenty of reasons to be excited.

First, the Marriott Rewards program -- 26 million members strong -- gives the firm a growing base of loyal customers that can be counted on to continue booking frequent repeat visits. Second, the firm's web site, which guarantees the best rates at all Marriott properties, has repeatedly siphoned traffic away from other online travel sites. Revenues booked through this important distribution channel surged +35% last year to $4.3 billion.

The firm's busy development pipeline should be another key growth driver in the years ahead. Even in a weaker RevPAR environment, the company can look forward to an additional 85,000 to 100,000 new rooms over the next three years. That will bring the total number of system-wide units to more than 600,000 -- one-fifth of which will be located overseas.

While Marriott's domestic market share has doubled over the past decade to reach 10%, it controls less than 1% of the foreign lodging market -- leaving ample room for growth. China and India are particularly promising, as booming economic expansion in those countries is expected to usher in a new wave of leisure travel by an increasingly affluent middle-class.

Finally, the firm's timeshare -- or "vacation ownership" sales represent another avenue for growth. Marriott has been involved in this business for more than two decades and has grown to become a global leader, boasting 11,600 villas and more than 350,000 owners. Last year, the firm raked in almost $2 billion from timeshare sales in exotic locales like the Bahamas.

With all of this in mind, we think Marriott will continue to prosper over the next few years. As such, should the shares retreat from current levels, we think they are worth considering anywhere below $38 per share.

Good investing!

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