Starwood Grows in Brazil with Sheraton Reserva do Paiva - Analyst Blog


Starwood Hotels & Resorts Worldwide Inc. ( HOT ) is continuously expanding in the emerging markets with higher growth opportunities compared with the mature markets (like the U.S., U.K., France and Japan). Recently, the hotelier announced the opening of Sheraton Reserva do Paiva Hotel and Convention Center, near Brazil's northeast city of Recife.

The Sheraton Reserva do Paiva has been developed by the Portuguese group Promovalor, and Brazilian group Odebrecht Realizações Imobiliárias under a long-term management contract with Sheraton Hotels & Resorts.

The 298-room hotel is close to one of the most scenic beaches in Northeastern Brazil. It is the first international upper-upscale hotel in Reserva do Paiva to be located close to Recife. Additionally, the hotel is located at a convenient distance from the International Airport of Guararapes and Suape Industrial Harbour Complex - one of the largest and most well-equipped convention centers in Northeastern Brazil. In our view, the hotel's strategic location will attract both leisure and business travelers.

The hotel has a Sheraton Shine Spa, a Sheraton Fitness gym, an exclusive Sheraton Club Lounge, extensive meeting space and two restaurants. Additionally, the hotel's Beach Club includes a lounge area with restaurants, cabanas and a swimming pool and beach access.

The Sheraton Reserva do Paiva expands Sheraton brand's global portfolio as well as Starwood's footprint in Brazil. The hotelier currently has eight properties in the country. Even though Starwood's revenue per available room (RevPAR) growth in Brazil has been slow, the company expects the ongoing football World Cup to boost the economic condition of the country.

Starwood currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Wyndham Worldwide Corp. ( WYN ), Hilton Worldwide Holdings Inc. ( HLT ) and Marriott Vacations Worldwide Corp. ( VAC ). All these stocks sport a Zacks Rank #2 (Buy).

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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: HOT , WYN , VAC , HLT

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