In order to further ramp up its presence in Turkey,
Starwood Hotels & Resorts Worldwide, Inc.
) in association with Tanriverdi Mensucat Sanayii A.S will
introduce a Sheraton hotel in Samsun in late 2014. This will mark
Starwood's debut in the city.
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Turkey is a strategic fit for new hotels. It boasts incredible
landscapes and is bordered by four seas. As per Euromonitor,
affordable pricing of package tours, a long coastline and natural
beauty have made Turkey a popular tourist destination.
To tap the growing opportunity, Starwood is expanding its
footprint to most emerging cities of the country. Starwood
currently operates 9 hotels in Turkey, out of which 5 are
Sheraton. There are also 4 other brands namely Aloft, W, Le
Méridien and Luxury Collection operating in the country. Taking
into account Sheraton Samsun, Starwood has 2 new openings in the
pipeline, of which Sheraton Adana Hotel is scheduled to open
later this year.
The city of Samsun -- the largest and busiest Turkish port on the
Black Sea -- serves as a hub for trade, medical and natural gas
industries and international and domestic transportation networks
and is therefore frequented by business travelers. Hence,
positioned in the heart of the city, the latest Sheraton hotel is
likely to generate a significant amount of business. The
29-storey property will feature 200 guestrooms, along with
several other amenities.
Since the last couple of quarters, Sheraton is spearheading
Starwood's market share growth. The brand comprises around 30% of
the company's current total global pipeline. In its 70-year long
journey, Sheraton, one of Starwood's strongest brands, has gained
strength and popularity, owing to guest satisfaction. The company
is continuously trying to drive the brand's potential and
recently completed a $6 billion revitalization program.
Currently, an $8 billion global expansion plan is in place for
the next three years.
With the latest opening, the company has moved a step toward
fulfilling its dream to operate 500 Sheraton properties by the
end of 2015. Notably, the brand leads the company's portfolio in
Turkey, making it one of the largest European markets for the
Other Stocks to Consider
Starwood currently retains a Zacks Rank #3 (Hold). Some players
in the hotel industry, which look attractive at current levels
Hyatt Hotels Corp
China Lodging Group, Limited
Marriott Vacations Worldwide Corp.
), all carrying a Zacks Rank #2 (Buy).