Starwood Hotels & Resorts Worldwide Inc.
) is set to introduce its first Aloft-branded property in
Raleigh, North Carolina in association with Bernstein Companies
and Bell View Partners. Christened - Aloft Raleigh - the hotel is
slated for a mid-2015 opening. The property will mark the opening
of Starwood's 5
Aloft-branded properties in the state of North Carolina.
Ideally situated at Hillsborough Street, the hotel is near
Carolina State University's famous Bell Tower and is part of the
Hillsborough Street revitalization initiative. Moreover, the
property's closeness to North Carolina State Capitol building,
Raleigh Convention Center, the BTI Performing Arts Center,
Research Triangle Park and Raleigh-Durham International Airport
(RDU) makes it attractive among the travelers, especially
business professionals and students. We believe that the
property, boasting a total of 135 guestrooms, 1,000 square feet
of meeting space along with various other amenities, will create
a strong guest base, going ahead.
Starwood's mid-scale and contemporary lifestyle brand, Aloft,
rides on a high growth trajectory since its launch in 2008 and
has already stepped into every region including North America,
Europe, the Middle East, Latin America, India, Southeast Asia and
China. The Aloft concept is in sync with the preference of the
modern travelers who seek a unique experience. Its
affordable price point in the mid-market hotel category is
another reason for its increasing popularity. The company
currently operates as many as 75 Aloft-branded properties
Owing to the gradual economic recovery, system-wide
occupancies in North America appear to be pretty steady and above
the prior peak level achieved in 2006. Moreover, management
expects overall new supply in developed markets of North America
to remain well below historic rates of growth despite high
demand. These factors justify the company's decision to expand in
the U.S. However, the budget sequestration in the U.S. and recent
federal actions may be unfavorable for the Zacks Rank #4 (Sell)
company's leisure business.
Some other hoteliers which are going to perform well, going
China Lodging Group, Limited
Intercontinental Hotels Group plc
Marriott Vacations Worldwide Corp.
). While China Lodging and Intercontinental Hotels carry a Zacks
Rank #1 (Strong Buy), Marriott Vacations holds a Zacks Rank #2
STARWOOD HOTELS (HOT): Free Stock Analysis
CHINA LODGING (HTHT): Free Stock Analysis
INTERCONTL HTLS (IHG): Free Stock Analysis
MARRIOT VAC WW (VAC): Free Stock Analysis
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