With the demand for mass market brands increasing,
Starwood Hotels & Resorts Worldwide Inc.
) recently announced plans for a dual-branded hotel development in
Boston involving its Aloft and Element brands. Both the hotels are
scheduled for a 2016 opening.
The 330-room Aloft Boston Waterfront and 180-room Element Boston
Waterfront will be located on D Street, directly across the Boston
Convention & Exhibition Center. Asset manager, Ares Management,
and commercial real estate company, CV Properties, will partner for
the ownership and development of the properties.
The hotels will be located at a convenient distance from Logan
International Airport and the Back Bay, the financial district.
Further, both the properties will be in close proximity to leading
attractions including Quincy Market and Faneuil Hall. This will be
the second Aloft-Element dual hotel development in Boston, after
the Aloft and Element Lexington opened in 2008.
In fact, the increasing demand for the Element brand has prompted
Starwood to develop dual-branded hotels featuring these two brands
in key urban locations. In 2017, Starwood will open an
Aloft-Element dual branded hotel in the Tobacco Dock region of East
London, marking the Element brand's debut in the U.K.
The concept of dual branded hotels has become increasingly more
popular with developers and hotel companies like
Hilton Worldwide Holdings Inc.
Marriott International, Inc.
) over the past two years, driven by investor and traveler demand
for select-service and extended-stay segments. Additionally, the
cost-savings that result from sharing construction and operational
expenses acts as an added advantage.
Starwood is also looking to expand its Element brand by opening 15
more hotels by 2017-end. In addition to domestic expansion,
Starwood also has plans to launch the brand in Germany and China.
The company plans to double its portfolio in the upcoming 2 years
and the 15th Element branded hotel is slated to open later this
With these contemporary brands such as Element and Aloft, Starwood
is seeking to grab a major fraction of the Lifestyle sector. By
2015, the demand for mass market lifestyle brands are projected to
increase buoyed by their exclusive offerings.
Starwood currently carries a Zacks Rank #3 (Hold). A better-ranked
stock in the same sector is
Intercontinental Hotels Group plc
) sporting a Zacks Rank #2 (Buy).
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