Marriott International, Inc.
) recently announced the opening of its dual-branded hotel in Los
Angeles. Christened the Courtyard and Residence Inn L.A. Live, the
hotel brings two of Marriott's popular brands - Courtyard and
Residence Inn - under one banner. The property is owned by American
Life, Inc. - a well known U.S. property financer, developer and
manager - and Williams & Dame Development - a Portland-based
real estate development firm. The development of the hotel is part
of the renovation of the business district of Los Angeles.
The hotel has 174 rooms under the Courtyard brand and 219 suites
under Residence Inn. The hotel also offers a state-of-the-art
fitness center and two meeting rooms.
Marriott has been opening hotels in the city centre of Los Angeles
- a JW Marriott and Ritz-Carlton dual branded hotel in 2010 - to
cater to rising demand in the area. In fact, it was the success of
this hotel that prompted Marriott to build another property in the
Dual-branded hotels seem to be the latest trend among major
hoteliers. Hotel companies like
Hilton Worldwide Holdings Inc.
Intercontinental Hotels Group plc
) are offering multiple hotel brands in one location. Apart from
helping the parent company to reduce costs, dual branded hotels
offer tourists the access to a wide range of amenities.
We expect the dual-brand concept to continue to gain popularity, as
the potential benefits for hotel owners and developers cannot be
denied. In addition to being cost-effective, the concept enables
hoteliers to position a single hotel in two distinct markets, thus
drawing diverse target demographics. Further, the large number of
rooms in the offing enables the hotel to attract and deal with a
greater volume of guests.
Marriott currently carries a Zacks Rank #3 (Hold). A better-ranked
stock in the same industry is
Home Inns & Hotels Management Inc.
), which sports a Zacks Rank #1 (Strong Buy).
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