Marriott International, Inc.
) recently announced that the Atlantis, Paradise Island property
will become part of its Autograph Collection this autumn. The
resort which is one of the most popular in The Bahamas and
Caribbean region will operate under a franchise agreement with
Marriott and the hotelier will provide $100 million in debt and
Atlantis, which will be the biggest hotel under Autograph
Collection, is currently owned by Brookfield Asset Management. It
will mark the brand's entry into the Bahamas.
Atlantis is an exclusive, ocean-themed destination which offers a
variety of guest accommodations, restaurants, bars, lounges, the
biggest casino in The Bahamas, extensive meeting facilities and a
marina for yachts. The resort is built around a 141-acre waterscape
which includes fresh and saltwater lagoons, pools and habitats.
Such an exclusive property will be a strategic fit for Marriott's
upscale brand - The Autograph Collection.
Marriott plans to aggressively grow The Autograph Collection and
the addition of Atlantis, Paradise Island is a step in this
direction. In fact, nearly 25% of the company's development
pipeline focuses on the luxury and lifestyle category, with more
than 200 hotels expected to be added over the next several years
involving more than $15 billion investment by owners and
With the global economy as well as the consumer sentiment gradually
improving, demand for luxury and lifestyle brands is increasing
rapidly. In our view, Marriot's aggressive expansion will enable it
to capitalize on the global demand for luxury hotels. Additionally,
customers are viewing the positioning of lifestyle brands favorably
and are willing to pay higher rates for exclusive services.
Marriott currently carries a Zacks Rank #2 (Buy). Other stocks in
the same industry worth considering include
Wyndham Worldwide Corp.
Hilton Worldwide Holdings Inc.
Choice Hotels International Inc.
). All these stocks have the same Zacks Rank as Marriott.
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