Marriott International, Inc.
) 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 upcoming 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.
Therefore, Marriott plans to expand its portfolio of lifestyle
offerings which include The Ritz-Carlton, EDITION, JW Marriott
Hotels & Resorts, Autograph Collection, Renaissance Hotels, AC
Hotels by Marriott and Moxy Hotels.
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. An EDITION-branded hotel will be opened
at Miami Beach this year and the brand will debut in New York
City's landmark Clock Tower building in 2015. More properties are
scheduled to be unveiled at Abu Dhabi, India, China, Bangkok and
West Hollywood as well as at the Times Square by 2017.
JW Marriott Hotels & Resorts will debut in Italy in early
2015. Additionally, the brand is on course to open 23 hotels
in the upcoming two years. Further, the company plans to add 20
hotels to its rapidly growing Autograph Collection brand.
Renaissance Hotels was scheduled to open nine hotels in 2014. Out
of these, five are already operational and four more are scheduled
to be launched. The Renaissance Hotels brand plans to expand its
portfolio to more than 160 hotels in 37 countries by 2014-end.
AC Hotels by Marriott, a brand launched in Europe in 2011 as a
joint venture with Spanish hotelier Antonio Catalan, plans to open
its first hotel in the U.S. this year at the Cotton Exchange
Building in New Orleans. This will be followed by hotel openings in
Kansas City and Miami in early 2015. The brand plans to operate
more than 30 hotels within the next three years throughout the U.S.
and Latin America.
Marriot's Moxy Hotels brand is set to debut in Europe this
September at Milan's Malpensa Airport. The brand focused on a
pan-European expansion by the end of 2016 which includes locations
like Munich, Berlin, and Frankfurt in Germany; Oslo, Norway;
London, United Kingdom and Aberdeen, Scotland. In the next 10
years, the hotelier expects around 150 hotels under the brand.
In our view, Marriot's aggressive expansion will enable it to
capitalize on the global demand for luxury hotels. Additionally,
customers are viewing the brand positioning of lifestyle brands
favorably and are willing to pay the higher rates for their
Marriott currently carries a Zacks Rank #3 (Hold). Better-ranked
stocks in the same industry include
Wyndham Worldwide Corp.
Intercontinental Hotels Group plc
Marriott Vacations Worldwide Corp.
). All these stocks have a Zacks Rank #2 (Buy).
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