Marriott International, Inc.
) are constantly looking to expand in the faster-growing Asian
markets. Recently, the Ritz-Carlton Hotel Company, L.L.C. - a
wholly owned subsidiary of Marriott - signed an agreement with AJ
Resorts SDN BHD to open its first resort on the island of Langkawi,
Malaysia, in 2015. With this hotel, the Ritz-Carlton brand will
double its Malaysian presence.
The 132-room luxury resort - Ritz-Carlton, Langkawi - will be
surrounded by lush tropical rainforests and offer a scenic view of
the Andaman Sea. Additionally, it will have a private cove and
beach. The resort will include 42 villas, three swimming pools -
one especially for children - Ritz-Kids Club - a signature program
for children -, multi-cuisine restaurants, a spa and spacious
banquets. The resort is located close to the Pulau Payar marine
national park, a popular local attraction.
Popularly known as the Legendary Island and the Jewel of Kedah,
Langkawi has been famous for its dive locations, beaches and
diverse local culture. In our view, Marriott is looking to cash in
on the popularity that the scenic island enjoys among travelers.
Malaysia has been one of the top destinations for both leisure and
business travelers in the recent years because of the diverse
world-class attractions and services it offers. In its long-term
forecast, the World Tourism Organization, in 2010, stated that
international tourism will continue to grow at a steady pace in the
next two decades (2010-2030), with international tourist arrivals
worldwide increasing at an average rate of 3.3% annually. This has
led to a surge in the demand for luxury hotels.
In fact, Malaysia's growing appeal as a tourism destination is
contributed by its numerous tourist destinations and unique
culture. We believe Marriot is seeking to capitalize on the demand
for luxury hotels in the region.
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
). All these stocks have a Zacks Rank #2 (Buy).
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