Back to top

Analyst Blog

In order to ramp up its presence in the flourishing Chinese market, leading hotelier, Starwood Hotels & Resorts Worldwide Inc. (HOT - Analyst Report) recently unveiled a property named Aloft Dalian in Dalian, Northeast China. This marked the entry of Aloft, one of Starwood’s contemporary hotel brands, in the city of Dalian.

Aloft Dalian, owned by Dalian Yifang Group Co. Ltd., comprises more than 314 rooms. It offers essential and exclusive amenities for both business and leisure travelers. Positioned in the heart of Dalian’s commercial district, the hotel is conveniently accessible from Dalian Zhoushuizi International Airport (''DLC'') and major commercial and industrial zones of the city. The hotel is also well connected with several popular sightseeing spots of the city.

China is set to bring about a recovery in global tourism and by 2020 it is expected to be the world’s largest travel destination. Starwood looks forward to tap this opportunity.

We believe the opening of the latest property is a strategic fit as Dalian is a key financial hub of the country and is also known for its landscape. The tourism industry in Dalian has been rapidly developing with wide range of hotels serving the domestic and international tourists. To boost its tourism industry, the city now offers a 72-hour visa-free stay. These factors justify the company’s decision to expand in the city.

Starwood has set a new trend in hotel designs with the Aloft brand and has spread its operations globally with more than 70 hotels since its launch in Jun 2008. In its five years of journey, Aloft has performed satisfactorily in terms of guest satisfaction, reflecting the brand’s strength and growing popularity.

The Aloft concept is in sync with the preference of modern travelers who seek a unique experience. Its affordable price point in the mid-market hotel category is another reason for its increasing popularity. The hotelier currently boasts as many as six Aloft-branded hotels exclusively in China.

The company presently has a short-term Zacks Rank #3 (Hold). Other players in the hotel industry, which look attractive at current levels, include Home Inns & Hotels Management Inc. (HMIN - Snapshot Report), Marriott Vacations Worldwide Corp. (VAC - Snapshot Report) and Marriott International, Inc. (MAR - Analyst Report). While Home Inns & Hotels carry a Zacks Rank #1 (Strong Buy), Marriott Vacations Worldwide and Marriott International hold a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

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 Zacks.com. 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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%