Starwood Aloft Enters Dalian - Analyst Blog


In order to ramp up its presence in the flourishing Chinese market, leading hotelier, Starwood Hotels & Resorts Worldwide Inc. ( HOT ) recently unveiled a property named Aloft Dalian in Dalian, Northeast China. This marked the entry of Aloft, one of Starwood's contemporary hotel brands, in the city of Dalian.

Aloft Dalian, owned by Dalian Yifang Group Co. Ltd., comprises more than 314 rooms. It offers essential and exclusive amenities for both business and leisure travelers. Positioned in the heart of Dalian's commercial district, the hotel is conveniently accessible from Dalian Zhoushuizi International Airport (''DLC'') and major commercial and industrial zones of the city. The hotel is also well connected with several popular sightseeing spots of the city.

China is set to bring about a recovery in global tourism and by 2020 it is expected to be the world's largest travel destination. Starwood looks forward to tap this opportunity.

We believe the opening of the latest property is a strategic fit as Dalian is a key financial hub of the country and is also known for its landscape. The tourism industry in Dalian has been rapidly developing with wide range of hotels serving the domestic and international tourists. To boost its tourism industry, the city now offers a 72-hour visa-free stay. These factors justify the company's decision to expand in the city.

Starwood has set a new trend in hotel designs with the Aloft brand and has spread its operations globally with more than 70 hotels since its launch in Jun 2008. In its five years of journey, Aloft has performed satisfactorily in terms of guest satisfaction, reflecting the brand's strength and growing popularity.

The Aloft concept is in sync with the preference of modern travelers who seek a unique experience. Its affordable price point in the mid-market hotel category is another reason for its increasing popularity. The hotelier currently boasts as many as six Aloft-branded hotels exclusively in China.

The company presently has a short-term Zacks Rank #3 (Hold). Other players in the hotel industry, which look attractive at current levels, include Home Inns & Hotels Management Inc. ( HMIN ), Marriott Vacations Worldwide Corp. ( VAC ) and Marriott International, Inc. ( MAR ). While Home Inns & Hotels carry a Zacks Rank #1 (Strong Buy), Marriott Vacations Worldwide and Marriott International hold a Zacks Rank #2 (Buy).

HOME INNS&HOTEL (HMIN): Free Stock Analysis Report

STARWOOD HOTELS (HOT): Free Stock Analysis Report

MARRIOTT INTL-A (MAR): Free Stock Analysis Report

MARRIOT VAC WW (VAC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: HMIN , HOT , MAR , VAC

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