Back to top

Analyst Blog

In line with its continued band revitalization initiatives, Starwood Hotels & Resorts Inc. (HOT - Analyst Report) recently completed an extensive makeover of its iconic hotel, Prince de Galles, Paris under its upscale brand, The Luxury Collection Hotels & Resorts. The hotel reopened following a two-year renovation.

Situated in Avenue George V in Paris, the hotel enjoys excellent positioning. Prince de Galles, Paris, which is famous for its Parisian Art Deco (a visual art design usually used in the 1930s and 1940s), has witnessed high footfall since its opening in 1928. Starwood, in association with ERTIM Architectes SA and two other world-renowned famous architects, Pierre-Yves Rochon and Bruno Borrione, revamped the heritage hotel.

It is the last property that was scheduled to undergo a restoration as part of a $200 million project. The company initiated the refurbishment project to reinvigorate some of its most renowned Luxury Collection branded properties in Europe. The company has already revived Hotel Alfonso XIII in Seville and Hotel Maria Cristina in San Sebastian in 2012 and Gritti Palace in Venice in early 2013.

In a concerted effort to strengthen its position in a cut-throat environment, most of the hoteliers have been striving to improve guest satisfaction. Therefore, brand conversion and renovation have become a trend.

Starwood, one of the leading players in the hotel industry, is committed to refurbish most of its brands including W, The Luxury Collection, Sheraton and Westin. Starwood is primarily focusing on reviving its older properties operating in dynamic markets in order to maintain consistency with the newer ones. Where necessary, Starwood is also resorting to brand conversion via remodeling. 

It is also remodeling the Le Meridien branded hotels across the world, for which it plans to invest about $3 billion in both existing and new properties. Additionally, this Zacks Rank #3 (Hold) company also plans to inject an additional $1 billion into the business to improve its total hotel portfolio.

Major hoteliers such as Marriott International Inc. (MAR - Analyst Report), Hyatt Hotels Corporation (H - Snapshot Report) and InterContinental Hotels Group (IHG - Snapshot Report) are also walking the same path. Renovation work, however, hurts revenues in the near term when construction is on. But after completion of the work, renovated properties are more rewarding due to its improved services, which we believe is the main reason for such back-to-back restoration projects by hoteliers.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%