Most hoteliers are focusing on bolstering their portfolio in the
emerging markets. Recently, Starwood
Hotels & Resorts Worldwide Inc.
) inked an agreement with IOI Properties Group - a Malaysian hotel
development firm - to manage Four Points by Sheraton Puchong and Le
Méridien Putrajaya to be opened in 2014 and 2015, respectively.
The 249-room Four Points by Sheraton Puchong is scheduled to open
in the fourth quarter of 2014. Upon completion, Four Points by
Sheraton Puchong will be the fifth property under the brand in
Malaysia, following the success of the brand in Langkawi, Sandakan,
Kuching and the most-recent Penang. The hotel will be located in
the heart of Puchong's developing business district, Puchong
Financial Corporate Centre (PFCC) at Bandar Puteri Puchong. Puchong
is a major town in the Petaling district of Selangor and is
situated close to the capital city of Kuala Lumpur. The hotel
featuring meeting space, swimming pool, two food and beverage
venues and a fitness centre will cater to both business and leisure
Le Méridien Putrajaya, on the other hand, will be located in
Malaysia's federal administrative capital, Putrajaya. Le Méridien
Putrajaya will be the brand's third hotel in Malaysia joining Le
Méridien Kuala Lumpur and Le Méridien Kota Kinabalu. The property
will be near the city's commercial and retail areas, including the
IOI City Mall, slated to open late this year. The 350-room hotel
will have restaurants, cafés, fitness centre, spa facilities, a
state-of-the-art meeting and event space and a swimming pool.
Starwood currently operates 12 hotels in Malaysia. Additionally,
Starwood's Malaysian pipeline includes - The St. Regis Kuala
Lumpur, W Kuala Lumpur, Sheraton Petaling Jaya Hotel, Sheraton
Desaru Hotel and Four Points by Sheraton Kota Kinabalu.
Starwood's decision to expand its Malaysian presence was backed by
the increasing popularity of the country as a tourist spot. In
fact, Malaysia is one of the world's most traveled destinations.
With the scheduled hotel openings, Starwood will be able to tap in
on the country's heightened hotel demand.
Starwood currently has a Zacks Rank #3 (Hold). Better-ranked stocks
in the same industry include
Wyndham Worldwide Corp.
Hilton Worldwide Holdings Inc.
Marriott Vacations Worldwide Corp.
). All these stocks sport a Zacks Rank #2 (Buy).
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STARWOOD HOTELS (HOT): Free Stock Analysis
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