Marriott Plans Extensive Global Expansion

Marriott International, Inc. (MAR) intends to significantly grow its global portfolio associated with luxury and lifestyle brands, which usually currently constitutes 25% of its complete pipeline. The hotelier intends to open more than 200 luxury and life-style hotels over the upcoming three years, reflecting an investment of roughly $15 billion dollars by its owners and franchisees.

With the global economy as well as the consumer sentiment gradually enhancing, demand for luxury and life-style brands is on the rise. Therefore , Marriott plans to expand its profile of lifestyle offerings which include The particular Ritz-Carlton, EDITION, JW Marriott Hotels & Resorts, Autograph Collection, Renaissance Hotels, AC Hotels by Marriott and Moxy Hotels.

By 2016-end, 15 Ritz-Carlton top quality hotels are scheduled to come upward in China, Morocco, Egypt, Saudi Arabia, Mexico, Tunisia, China, Bali, Indonesia and Macao. An EDITION-branded hotel will be opened at Ohio Beach this year and the brand will debut in New York City’s landmark Clock Tower building in 2015. More properties are scheduled to be unveiled at Abu Dhabi, India, China, Bangkok and West Hollywood as well as at the Times Square by 2017.

JW Marriott Hotels & Resorts will first appearance in Italy in early 2015. Additionally , the brand is on course to open 23 hotels in the forthcoming two years. Further, the company plans to add 20 hotels to its growing Autograph Collection brand.

Renaissance Hotels was scheduled to open nine hotels in 2014. Out of these, five are already operational plus four more are scheduled to be launched. The Renaissance Hotels brand plans to expand its profile to more than 160 hotels in 37 countries by 2014-end.

AC Hotels by Marriott, a brand launched in Europe this year as a joint venture with Spanish hotelier Antonio Catalan, plans to open the first hotel in the U. S. this year at the Cotton Exchange Building in New Orleans. This will be accompanied by hotel openings in Kansas Town and Miami in early 2015. The particular brand plans to operate more than thirty hotels within the next three years throughout the U. S. and Latin America.

Marriot’s Moxy Hotels brand is set to debut in European countries this September at Milan’s Malpensa Airport. The brand focused on a pan-European expansion by the end of 2016 which includes locations like Munich, Bremen, and Frankfurt in Germany; Oslo, Norway; London, United Kingdom and Aberdeen, Scotland. In the next 10 years, the hotelier expects around 150 hotels beneath the brand.

In our watch, Marriot’s aggressive expansion will allow it to capitalize on the worldwide demand for luxury hotels. Additionally , customers are viewing the brand positioning of lifestyle brands favorably and are willing to pay the higher rates for their exclusive services.

Marriott currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the exact same industry include Wyndham Worldwide Corp. (WYN), Intercontinental Hotels Group plc (IHG) plus Marriott Vacations Globally Corp. (VAC). All these stocks have a Zacks Rank #2 (Buy).

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Marriott International, Inc. (MAR) expects to significantly grow its worldwide portfolio of luxury and life-style brands, which currently constitutes 25% of its total pipeline. The hotelier intends to open more than 200 luxurious and lifestyle hotels over the forthcoming three years, reflecting an investment of roughly $15 billion by its proprietors and franchisees.

With all the global economy as well as the consumer sentiment gradually improving, demand for luxurious and lifestyle brands is on the rise. Therefore , Marriott plans to expand its portfolio of lifestyle choices which include The Ritz-Carlton, EDITION, JW Marriott Hotels & Resorts, Autograph Collection, Renaissance Hotels, AC Hotels by Marriott and Moxy Hotels.

By 2016-end, fifteen Ritz-Carlton branded hotels are planned to come up in China, Morocco, Egypt, Saudi Arabia, Mexico, Tunisia, China, Bali, Indonesia and Macao. An EDITION-branded hotel will be opened at Miami Beach this year and the brand will debut in Nyc City’s landmark Clock Tower developing in 2015. More properties are scheduled to be unveiled at Abu Dhabi, India, China, Bangkok plus West Hollywood as well as at the Situations Square by 2017.

JW Marriott Hotels & Accommodations will debut in Italy at the begining of 2015. Additionally , the brand is on course to open 23 resorts in the upcoming two years. Further, the organization plans to add 20 hotels to its rapidly growing Autograph Collection brand.

Renaissance Hotels has been scheduled to open nine hotels in 2014. Out of these, five are already operational and four more are scheduled to be launched. The Renaissance Hotels brand plans to expand its portfolio to more than 160 hotels in 37 countries by 2014-end.

AC Hotels by Marriott, a brand launched in Europe in 2011 as a joint venture with Spanish hotelier Antonio Catalan, programs to open its first hotel in the U. S. this year at the Cotton Exchange Building in New Orleans. This will be followed by hotel openings in Kansas City and Miami at the begining of 2015. The brand plans to operate more than 30 hotels within the next three years throughout the U. S. and Latina America.

Marriot’s Moxy Hotels brand is set to first appearance in Europe this September on Milan’s Malpensa Airport. The brand focused on a pan-European expansion by the end of 2016 which includes locations like Munich, Berlin, and Frankfurt in Germany; Oslo, Norway; London, United Kingdom and Aberdeen, Scotland. In the next ten years, the hotelier expects around a hundred and fifty hotels under the brand.

In our view, Marriot’s aggressive development will enable it to make profit on the global demand for luxury hotels. Additionally , customers are viewing the brand positioning of lifestyle brands favorably and are willing to pay the greater rates for their exclusive services.

Marriott currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Wyndham Worldwide Corp. (WYN), Intercontinental Hotels Group plc (IHG) and Marriott Vacations Worldwide Corp. (VAC). All these stocks have a Zacks Rank #2 (Buy).

Look at the Full Research Report on SCAR
Read the Full Research Statement on VAC
Read the Full Research Report on WYN
Read the Full Research Report on IHG

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