NEW YORK (TheStreet) -- Shares of Marriott(MAR) - Get Report are down 6.93% to $64.17 in late-afternoon trading on Friday as hotel stocks are negatively impacted by Britain's decision to leave the European Union.
The referendum has raised concerns about future employment costs in the British hotel industry, which relies on foreign workers, Bloomberg reports.
"It is too early to know what the potential impact the decision will ultimately have on our business," Marriott said in a statement cited by Bloomberg. "As the implications are more clearly defined over the coming months, we will work to adapt to any changes that may result."
Marriott will become the world's biggest hotel operator when its planned acquisition of Starwood Hotels & Resorts (HOT) closes next quarter.
The company had about 8% of its rooms in Europe as of the end of 2015, and Starwood generated roughly 19% of its revenue from the area last year, according to Robert W. Baird. The percentage is declining as Starwood sells assets, the analysts added.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Marriott's strengths such as its impressive record of earnings per share growth, revenue growth, good cash flow from operations and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: MAR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.