In order to further ramp up its presence in Europe,
Starwood Hotels & Resorts Worldwide, Inc.
) is on the verge of launching 50 new hotels in the region by
2018. Moreover, Starwood is also undertaking several renovation
initiatives to improve the efficacy of its existing hotels in
As per the expansion plan, Starwood will unveil nine new
hotels in Russia, the Commonwealth of Independent States (CIS),
Hungary, Greece, Switzerland and Turkey in 2013.
The company aims to augment its Russian and the CIS portfolio
by four times through launching 11 new hotels by 2017 as the
demand continues to increase.
However, the European market is not devoid of competition. To
tap the growing potential, many other hoteliers including
Marriott International Inc.
) are also making their presence felt in the market.
In a concerted endeavor to strengthen its full-service, luxury
brand European portfolio, Starwood has planned to invest nearly
$200 million to refurbish some of its most renowned Luxury
Collection hotels. In addition with this, Starwood has also
undertaken a brand conversion strategy.
Starwood will re-launch Hotel Prince de Galles, Paris after
its restoration in May 2013. Moreover, the company has also
recently rebranded various hotels such as Metropol Palace in
Belgrade, Serbia, Hotel Bristol in Warsaw, Poland and Hotel King
George in Athens, Greece.
Starwood's mid-market brands are also extending their
operations in Europe through various deals and agreements.
Currently, 50% of hotels within the company's European
development pipeline belong to the mid-market brands.
Starwood will introduce four hotels under its mid-market
brands in various European destinations including UK/Ireland,
Benelux, Italy, France, Russia, Poland, Turkey and Germany within
2015. The company is expecting to enhance its mid-market
portfolio by two times in 2015.
Starwood currently owns and operates 163 hotels across 32
countries in Europe. These openings will reflect a 30% additional
increase in the company's existing European coverage.
Starwood currently retains a Zacks Rank #3 (Hold). Another
hotel stock worth a look is
Choice Hotels International Inc.
) which carries a Zacks Rank #2 (Buy).
CHOICE HTL INTL (CHH): Free Stock Analysis
STARWOOD HOTELS (HOT): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
WYNDHAM WORLDWD (WYN): Free Stock Analysis
To read this article on Zacks.com click here.