In order to further ramp up its presence in the rapidly
growing emerging market of Asia,
Starwood Hotels & Resorts Worldwide, Inc
) has recently declared that it is on the verge of launching 20
new hotels under its W Hotels and Retreats brand in the region
over the next five years. With these openings, the W brand will
be able to increase its Asian portfolio by more than twofold.
Commencing its journey in 2004, Starwood now owns 8 hotels
with 1,912 guestrooms under its luxury boutique brand, W, in the
Asia Pacific region. Starwood is trying to enhance its presence
in Asia as the demand for hotels in the region is higher and the
pace of recovery is particularly fast.
Owing to the saturation in the U.S market, many other
Marriott International Inc.
Wyndham Worldwide Corporation
), and some other major hoteliers are also exploring growth
opportunities in the Asia Pacific region.
Coming to the brand, as per the expansion plan, of W's total
development pipeline, more than 50% is based in the Asia-Pacific
region across nine countries. Within Asia-Pacific, China promises
immense growth potential with visits expected to increase
substantially by 2014. In order to capture such growth
opportunities, Starwood is intending to launch six W branded
properties in several places of China including Guangzhou,
Beijing, Shanghai, Changsha, Shanghai and Suzhou by 2018.
Apart from this, Starwood is also slated to open four new
hotels in India and various other properties in Indonesia and
Malaysia under the W brand. These hotel openings are expected to
boost Starwood's RevPAR growth, going forward.
Starwood currently carries a Zacks Rank #3 (Hold). Another
hotel stock worth a look is
Home Inns & Hotels Management Inc.
) , which carries a Zacks Rank #1 (Strong Buy).
HOME INNS&HOTEL (HMIN): 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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