Over the past few years, most hoteliers are undertaking measures to boost guest satisfaction in a bid to remain competitive and get a better foothold in the industry. Hence, brand conversion and remodeling have become a trend. Bethesda, Maryland-based hotelier, Marriott International Inc. (MAR - Analyst Report) is also following the same path.
Recently, several Marriott-branded properties have undergone extensive renovation, which is expected to 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.
The hotelier recently revamped the Renaissance Nashville Hotel in Nashville, Tennessee. The refurbishment, which cost approximately $20 million, is slated for a Feb 2014 opening. The property’s 673 guestrooms and suites underwent a complete renovation. Moreover, the capacity of its meeting space was increased by 70,000 square feet.
In November, the Zacks Rank #2 (Buy) company decided to move ahead with an extensive refurbishment plan for its iconic hotel, Des Moines Marriott Downtown in Des Moines, Iowa. The makeover, worth approximately $2 million, is slated to be finished by 2014. In October, the company also completed the makeover of Norfolk Waterside Marriott in Norfolk, Virginia. The $4.5 million renovation started in Dec 2012. These initiatives are consistent with the company’s continued brand-revitalization initiative to boost sales.
Other Stocks to Consider
Some better-ranked stocks in the hotels sector include Orient-Express Hotels Ltd. , Home Inns & Hotels Management Inc. and Wyndham Worldwide Corporation (WYN - Analyst Report). While Orient-Express Hotels and Home Inns & Hotels sport a Zacks Rank #1 (Strong Buy), Wyndham holds a Zacks Rank #2.