Starwood Hotels (HOT) Expands in Florida, Opens W Miami
Major hoteliers are expanding their contemporary brands in the Miami market to ramp up profits. In keeping with this trend, W Hotels Worldwide, a unit of Starwood Hotels & Resorts Worldwide Inc.HOT opened its contemporary, design-led luxury lifestyle brand, W Hotels, in Miami. Christened W Miami, the hotel will join W South Beach in the greater Miami area.
W Miami is at the heart of the 10-acre bay front ICON BRICKELL, which is known for its two-acre infinity pool and dramatic spa, with interiors designed by Kelly Wearstler. The hotel has 148 guestrooms and suites, along with 38 residential units. W Miami will undergo renovation for creating the W brand's signature W Living Room on the hotel's fifteenth floor overlooking Biscayne Bay.
In its 15-year journey, W has performed well in terms of guest satisfaction, reflecting the brand's strength and growing popularity. The brand caters to the preference of modern young travelers who seek a unique experience. With the latest opening, the company has moved closer toward fulfilling its goal of operating 75 W branded hotels by 2020.
Despite a somewhat troubled geopolitical environment, the company remains focused on expanding its footprint worldwide. The company is on track to open more hotels in 2016 than it unveiled in 2015. Not only has room count increased by leaps and bounds since 2008, the number of guests staying more than 10 nights a year has also jumped. Group as well as transient demand has also been strong over the past few quarters, which should continue in the near term.
Going forward, demand is expected to exceed supply in most regions, thereby giving the company an opportunity to increase room rates. The company remains on track to open more small-to-medium sized hotels in 2016 than in any year since 2009. These medium sized hotels are expected to drive revenue growth as they enjoy more popularity among the younger generation of tourists.
Starwood currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector are Intrawest Resorts Holdings, Inc. SNOW , China Belmond Ltd. BEL and Marriott Vacations Worldwide Corp. VAC . While Intrawest Resorts and China Belmond sport a Zacks Rank #1 (Strong Buy), Marriott Vacations Worldwide has a Zacks Rank #2 (Buy).