In order to beef up its Polish as well as Luxury Collection
Starwood Hotels & Resorts Worldwide Inc.
) introduced one of its upscale brands, The Luxury Collection
Hotels & Resorts, in Warsaw, Poland. The Luxury Collection
was unveiled in Warsaw after a renovation of the former iconic
Hotel Bristol. Apart from this, Starwood has two other brands in
Warsaw - Sheraton and Westin.
Strategically positioned next to the Presidential Palace and on
the historic and stylish Royal Route, the hotel will enjoy a
prime location and is expected to attract both business and
leisure travelers. The new Luxury Collection property features
168 guest rooms including 38 suites along with several other
Owing to the saturation in the U.S market, major hoteliers are
exploring growth opportunities abroad. Poland is one of those
regions, which has been less ruffled by the Euro-zone crisis and
promises solid growth going forward due to the country's
inspiring economic performance. Currently, Starwood possesses six
properties in Poland and three in Warsaw including the new
According to Jones Lang LaSalle Hotels, the performance of
hotels in Warsaw -the Polish capital -- rebounded massively since
the recession in 2009. Warsaw's profits increased 22.7% year over
year in 2012, as per a survey by TRI Hospitality Consulting.
A stronger economy compared to other troubled European regions
should enhance demand for business travel in Poland. Also, the
Polish market is relatively under-penetrated than other western
European nations. These attributes make the country a strategic
fit for new openings.
However, the market is not devoid of competition. To tap the
increasing potential, many of Starwood's peers including
Marriott International Inc.
Wyndham Worldwide Co.
) have established their presence in the market.
Coming to the brand, Luxury Collection Hotels & Resorts
falls in the eponymous category. Management once commented that
luxury resorts generally have a higher demand abroad and hence
Starwood has 90% of its Luxury pipeline outside North
Launched in 1906, the brand rides on a high growth trajectory
and has already spread globally with more than 80 hotels in more
than 30 countries. Well known for its upscale hospitality and
individuality, management sees the brand as a lucrative addition
to its luxury hotels and recently planned to invest $200 million
to refurbish some of its most renowned hotels in Europe.
Starwood currently retains a Zacks Rank #3 (Hold). However,
another hotel stock worth a look is
The Marcus Co.
) with a Zacks Rank #1 (Strong Buy).
STARWOOD HOTELS (HOT): Free Stock Analysis
MASTERCARD INC (MA): Free Stock Analysis
MARCUS CORP (MCS): Free Stock Analysis Report
WYNDHAM WORLDWD (WYN): Free Stock Analysis
To read this article on Zacks.com click here.