Autograph Collection, one of the upscale brands of
Marriott International Inc.
), recently added Denver-based Brown Palace Hotel and Spa to its
growing pool of independently owned and operated high-quality
Founded in 1892, the Brown Palace Hotel will continue to be
operated by Quorum Hotels & Resorts, which has been associated
with the hotel since 1987. Financial terms of the deal were not
The latest Brown Palace deal marks the 35th addition to
Autograph Collection's global portfolio. Launched in January 2010,
Autograph Collection's properties sprawl over the United States,
Europe, the Caribbean and South America.
Since its opening, the brand has been gaining strong momentum. The
fact can be validated by its RevPAR growth of 12% in fiscal 2011.
Marriott expects to have more than 50 Autograph hotels opened by
the end of 2012.
The concept boasts prestigious properties like Turnberry Isle Miami
in Miami, Florida, The Algonquin Hotel in New York, New York, the
Cosmopolitan of Las Vegas in Las Vegas, Nevada, and The Saint Hotel
in New Orleans, Louisiana. Many owners are willing to renovate or
reposition hotels in order to join the Autograph Collection and
come under the Marriott brand.
We view the deal as strategically positive for both the parties.
The deal paves the way for Brown Palace hotel to reap the benefit
from Marriott's much greater scale, industry leading reservations
and marketing system, as well as rewards loyalty program.
On the other hand, Marriott will enjoy the distinctive nature of
the Denver's most sought-after hotel, consistent with the brand
identity of Autograph Collection. Autograph Collection comprises
properties that can be segmented into various categories. The wide
variety in guest experience offered by these properties allows the
brand to attract customers looking for a unique travel experience
that other brands normally fail to offer.
Secondly, this partnership will extend Marriott's reach into the
Colorado market, where tourism is the second largest industry,
fueling the hospitality sector. This partnership will be
Autograph's second venture in Colorado, Kessler Canyon being the
Denver itself is considered to be a prime destination for
business and leisure travelers. With the presence of the Rocky
Mountains as well as the prevailing cultural attractions and
outdoor activities, Denver offers itself as one of the thriving
markets in Colorado.
Marriott which competes with the likes of
Starwood Hotels and Resorts Worldwide Inc.
) currently carries a Zacks #3 Rank that translates into a
short-term Hold rating. We are maintaining our long-term Outperform
recommendation on the stock.
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