Starwood Hotels & Resorts Worldwide Inc.HOT recently announced plans to open a dual-branded hotel in the Love Field district in Dallas, TX. Christened the Aloft Dallas Love Field and Element Dallas Love Field, the hotel brings two of Starwood's popular brands - Aloft and Element - under one banner.
The property will be built in collaboration with Atlantic Hotels Group, a local hotel owner and operator, and The Civitas Capital Group, which offers investment strategies to clients seeking exposure to the U.S. lodging and real estate market.
The hotel, scheduled to open in Dec 2016, is part of a new mixed-use development, known as West Love, which will also include apartments and retail space. The Aloft Dallas Love Field and Element Dallas Love Field will be constructed within one multi-story building with a common entry, but separate ground-floor public areas and elevators.
The 224-room hotel (133 for Aloft and 91 for Element) will be easily accessible from Dallas Love Field Airport, the Dallas Medical District and the central business district. The hotel will also be in close proximity to the leading attractions of the Love Field district, the Design District, shops and restaurants at Dallas Market Center and AT&T Stadium. The significant increase in passenger growth in the Love Field district since 2014 convinced Starwood to choose the location for the dual-branded property.
Dual-branded hotels seem to be the latest trend among major hoteliers. Hotel companies like Hilton Worldwide Holdings Inc. HLT , Marriott International, Inc. MAR and Intercontinental Hotels Group plc IHG are offering multiple hotel brands at one location. Apart from helping the parent company to reduce costs, these hotels also offer tourists the access to a wide range of amenities.
We expect the concept to continue to gain popularity, as the potential benefits for hotel owners and developers cannot be denied. In addition to being cost-effective, the concept enables hoteliers to position a single hotel in two distinct markets, thus drawing diverse target demographics. Further, the large number of rooms will enable the hotel to attract and accommodate a greater volume of guests.
Starwood currently carries a Zacks Rank #3 (Hold).
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