Bethesda, Maryland-based hotelier, Marriott International Inc. (MAR - Analyst Report), has recently decided to move ahead with an extensive renovation plan for Des Moines Marriott Downtown in Des Moines, Iowa. The makeover, worth approximately $2 million, is slated to be finished by 2014.
Des Moines Marriott Downtown’s meeting space, restaurant and fitness center will undergo a complete renovation.
Strategically positioned near the business district, Des Moines Marriott Downtown is close to Iowa Events Center, Wells Fargo Arena and Drake University. The hotel enjoys prime positioning and has witnessed high footfall since its opening.
Des Moines, capital and the most populous city of Iowa, is a key hub for the insurance sector. The flourishing business zone of the city in turn drives the hospitality sector. We believe these factors have encouraged Marriott to revamp the 417-room property.
Over the past few years, most hoteliers across the globe are trying to boost guest satisfaction to remain competitive and get a better foothold in the industry. Hence, brand conversion and remodeling have become a trend.
Currently, several Marriott-branded properties are undergoing extensive renovation, which will likely boost revenue per available room once they are fully refurbished. Marriott is primarily focusing on reviving its older properties operating in dynamic markets in order to maintain consistency with the newer ones.
In October, the Zacks Rank #2 (Buy) company completed the extensive refurbishment of its iconic hotel, Norfolk Waterside Marriott in Norfolk, Virginia. The $4.5 million renovation started in Dec 2012. The hotelier revitalized the 397 rooms of the hotel followed by the Piano Lounge and lobby.
Other Stocks to Consider
Some other hoteliers which are going to perform well, going ahead, include, Home Inns & Hotels Management Inc. (HMIN - Snapshot Report), Orient-Express Hotels Ltd. and Choice Hotels International Inc. (CHH - Snapshot Report). While Home Inns & Hotels and Orient-Express Hotels hold a Zacks Rank #1 (Strong Buy), Choice Hotels carries a Zacks Rank #2.