As part of its continued brand revitalization strategy,
Starwood Hotels & Resorts Worldwide Inc.
) plans to revamp its 13 Le Meridien hotels in the Middle East
and Africa (MEA) regions. The refurbishment will cost
approximately $200 million and will be completed in three years.
Acquired in Nov 2005, the French brand - Le Meridien rides on a
high growth vehicle and already has a global presence with nearly
100 hotels in more than 40 countries. Well known for its upscale
hospitality, management sees the brand as a lucrative addition to
its luxury hotels. The brand has considerable presence in
emerging Middle Eastern and African markets for more than 30
Apart from renovations, Le Meridien will include another property
to its already four-propertied portfolio in Egypt. This new hotel
- Le Meridien Cairo Airport - is slated to open in Sep 2013. The
emergence of the MEA region as an international business hub as
well as leisure travel destination encourages Starwood to focus
on this region.
Hotel companies across the globe have been diligently working
on their properties over the last couple of years to augment
guest satisfaction to raise their positions in a cutthroat
environment. Hence, brand conversion and remodeling has become a
Many of Starwood's peers like
Marriott International Inc.
InterContinental Hotels Group
) are also resorting to the renovation strategy. Though
renovation work affects near-term revenues, it boosts returns
Starwood is comprehensively working on its assets to offer an
enhanced travel experience to its guests and is primarily
considering renovation of older properties operating in dynamic
Starwood currently carries a Zacks Rank #3 (Hold).
Choice Hotels International Inc.
) looks attractive at current levels with a Zacks Rank #2
CHOICE HTL INTL (CHH): Free Stock Analysis
STARWOOD HOTELS (HOT): Free Stock Analysis
INTERCONTL HTLS (IHG): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
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