Leading global hotel chain
Starwood Hotels & Resorts Worldwide, Inc
) has recently declared that it is on the verge of launching 50
new hotels with 14,000 guest rooms in the rapidly-growing
emerging market of Middle East and Africa (MEA) by 2018. Apart
from this, Starwood is also undertaking a brand conversion
strategy to further strengthen its footprint in the region.
Starwood currently owns and operates 82 hotels mostly under
the Le Méridien and Sheraton brands across the region. These
openings will reflect a 60% additional increase in the company's
existing MEA coverage. The company aims to own more than 100
properties in the region, launching 20 new hotels by 2015.
However, to tap the growing potential, many other hoteliers
Marriott International Inc.
Wyndham Worldwide Corporation
) are also making their presence felt in the MEA region.
Coming to the brand, as per the expansion plan, Starwood will
unveil 12 hotels in UAE with 6 new properties exclusively in
Dubai by 2017. Moreover, Starwood is all set to open 6 properties
in Saudi Arabia by 2015. Apart from this, Starwood is also trying
new growth opportunities in Iraq, Nigeria, and Algeria.
In a concerted endeavor to strengthen its full-service, luxury
brand portfolio, Starwood is slated to introduce two St. Regis
branded hotels in Abu Dhabi, and Cairo in 2013 and 2014,
respectively. Starwood has also declared that it will unveil 6 W
branded properties in Dubai, Abu Dhabi, Muscat and Amman over the
next four years. In addition, the company's mid-market brand,
Aloft is also growing in the region.
Earlier in March, Starwood transferred its headquarters from
Stamford, CT to Dubai, UAE for one month in order to focus more
on Starwood's growing international portfolio and explore new
development opportunities in the Middle East countries.
Starwood currently carries 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
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