Most hoteliers across the globe are trying to augment guest
satisfaction and gain a better foothold in the industry. Hence,
brand conversion and remodelling have become a trend, especially
in the past couple of years. As part of its continued push to
popularize its brand,
Starwood Hotels & Resorts Worldwide Inc.
) is set to introduce an Aloft-branded property in Secaucus, N.J.
The hotel is slated for a mid-2016 opening and will mark the
brand's entry into the state.
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Aloft Secaucus will be owned by Indianapolis-based hotel
development and management company, Sun Development and
Management. The 172-room property will be located within the
Plaza at Harmon Meadow, at a stone's throw away from the city's
major attractions. In our view, the upscale location and close
proximity to the major attractions will act as major
crowd-pullers for the hotel.
Starwood's mid-scale and contemporary lifestyle brand, Aloft, has
been riding on a high growth trajectory since its launch in 2008
and has already forayed into North America, Europe, the Middle
East, Latin America, India, Southeast Asia and China. Aloft goes
well with the modern travellers who seek a unique experience, at
a reasonable price range.
Specifically, the brand's affordable price point in the
mid-market hotel category is another reason for its increasing
popularity. The company currently boasts more than 75
Aloft-branded properties worldwide. Aloft saw solid growth last
year as it debuted in various locations including Riyadh, Saudi
Arabia and Suwon-city, South Korea. Last week, Starwood announced
the brand's debut in New Orleans, La. in 2015.
Besides focusing on the lucrative domestic market, the company is
consistently trying to expand its international footprint. More
than half of Starwood's properties are situated outside the U.S.,
which gives the company wide international exposure, unlike any
of its peers. Other leading hoteliers
Hyatt Hotels Corporation
InterContinental Hotels Group plc
) are also consistently trying to expand their international
Starwood that currently has a Zacks Rank #4 (Sell), recently
posted mixed fourth-quarter 2013 results - with the bottom line
beating the Zacks Consensus Estimate, but the top line falling
short of expectations. A better-ranked stock in the hotel
Marriott International, Inc.
) carrying a Zacks Rank #2 (Buy).