Marriott International, Inc.
) wholly-owned subsidiary, The Ritz-Carlton Hotel Company is set to
open its first golf resort in Haikou on Hainan Island in China. The
Ritz-Carlton, Mission Hills will be developed by the Mission Hills
Group - the world's leading golf brand -and managed by The
Ritz-Carlton. It is scheduled to be opened in late 2015.
The Haikou Mission Hills Golf Club project will include 10
world-class golf courses and will be the largest public golf
complex in the world. Other features include 201 rooms, a club
house, restaurants, bars, tennis courts, swimming pools, a
recreation pavilion and 1,480 square meters of convention and
Back in Nov 2011, the Mission Hills Group and Marriott
International had entered into a partnership to manage new
Ritz-Carlton and Renaissance Hotels at Mission Hills in Hainan.
Both these hotels were slated to open in fourth quarter 2013 but
are now set for a 2015 opening.
Hainan has tremendous growth potential for the hotel industry while
the nearby city of Haikou is the new center for business and
tourism. Besides its pristine white sand beaches, Haikou is also
known for its historical sites. This justifies the company's
decision to expand in the region.
Marriott International intends to significantly grow its global
portfolio of luxury and lifestyle brands, which currently
constitutes 25% of its total pipeline. The hotelier intends to open
more than 200 luxury and lifestyle hotels over the next three
years, reflecting an investment of roughly $15 billion by its
owners and franchisees.
With the global economy as well as the consumer sentiment gradually
improving, demand for luxury and lifestyle brands is on the rise.
By 2016-end, 15 Ritz-Carlton branded hotels are scheduled to come
up in China, Morocco, Egypt, Saudi Arabia, Mexico, Tunisia, China,
Bali, Indonesia and Macao. (Read More:
Marriott Plans Extensive Global Expansion
We believe Marriot's aggressive expansion will enable it to
capitalize on the global demand for luxury hotels. Additionally,
customers are willing to pay higher rates for premier lifestyle
brands for their exclusive services.
Marriott currently carries a Zacks Rank #3 (Hold). Better-ranked
stocks in the same industry include The Marcus Corporation (
), Marriott Vacations Worldwide Corp. (
) and Choice Hotels International Inc. (
). While Marcus Corporation sports a Zacks Rank #1 (Strong Buy),
Marriott Vacations Worldwide and Choice Hotels International carry
a Zacks Rank #2 (Buy).
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