Owing to the saturated U.S. market, major hoteliers are
exploring growth opportunities in the fast-growing emerging Latin
American markets. Following the trend, leading hotelier,
InterContinental Hotels Group plc
), is also strengthening its portfolio in the region through
Among the Latin American countries, Brazil is expected to lead
the growth trajectory driven by decent economic growth. A large
number of hotels are being built in the country to cash in on the
2014 FIFA World Cup and the 2016 Summer Olympics.
Keeping these factors in mind, the hotelier is set to unveil
two properties - Holiday Inn Porto Maravilha and Holiday Inn
Express Porto Maravilha - in Rio de Janeiro, Brazil in
association with Odebrecht Realizaçöes Imobiliárias and FII PM
Caixa Fundo de Investimento Imobiliário Porto Maravilha. The
properties, slated for a Jul 2016 opening, will mark the
company's reentry into the city of Rio de Janeiro.
The hotels will be unveiled in downtown Rio de Janeiro at the
center of the port area, Porto Maravilha. InterContinental has
initiated a $1 billion program to revitalize the Holiday Inn
brand portfolio. These properties will be developed under the
global brand re-launch program. We expect the strategic position,
wide range of amenities as well as the contemporary ambience of
both the hotels will create a strong guest base.
InterContinental introduced its economy brand, Holiday Inn in
the U.S. in 1952. The brand, previously renowned as a motel
chain, belongs to the upper-moderate tier and comprises
small-to-mid sized full-scale properties. Since its opening, the
brand has been gaining strong momentum.
Holiday Inn Express is a smaller prototype of the Holiday Inn
brand, primarily designed to serve business travelers.
InterContinental currently owns 1,200 and 2,200 properties
worldwide under Holiday Inn and Holiday Inn Express brands,
InterContinental has been operating in Latin America for the
past 65 years. The affluent middle-class population and greater
footfall impelled this Zacks Rank #3 (Hold) company to grow
further in this region. We believe the new properties will
strengthen its brands' presence in the region as well as align
with its growth strategy.
Starwood Hotels & Resorts Worldwide Inc.
), also plans to expand its operations in Latin America by 50%
over the next five years.
InterContinental currently has a Zacks Rank #3 (Hold). Some
better-ranked stocks in the hotel industry include
Extended Stay America, Inc.
Marriott International, Inc.
). Both the stocks carry a Zacks Rank #2 (Buy).
STARWOOD HOTELS (HOT): Free Stock Analysis
INTERCONTL HTLS (IHG): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
EXTENDED STAY (STAY): Free Stock Analysis
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