In order to boost its domestic portfolio, leading hotelier Starwood Hotels & Resorts Worldwide Inc. (HOT - Analyst Report) is set to unveil its second Element branded hotel in Miami. Christened Element Miami Doral, the hotel is slated to open in Jul 2015 as part of a dual-hotel development with Aloft Miami Doral, unveiled in March last year. Aloft is Starwood’s mid-scale and contemporary lifestyle brand.
The 139-room property, owned by Eurocon, LLC, will be located in Doral, in north-central Miami. Situated at a stone’s throw away from popular business and shopping hubs, the hotel will also be in close proximity to major tourist attractions such as the Miami Zoo and Miami Sea Aquarium. We believe the upscale and strategic location of the property will act as major crowd-pullers for the hotel.
Starwood’s Leadership in Energy and Environmental Design (LEED) certified, eco-sustained contemporary brand, Element was launched in 2008. In its six-year journey, the brand has gained strength and popularity, thanks to guest satisfaction. Currently, the brand boasts as many as 10 hotels across the U.S. and Canada.
Further, the hotelier is developing one property each in Germany and China under the eco-friendly brand. These hotels are slated to be opened in 2014 and 2015, respectively.
The Element brand, known for its sustainability and style, mainly caters to the value-conscious guests and strikes a balance between corporate and leisure travelers. Therefore, Miami is an ideal choice as it is an important corporate hub, with offices of the US Federal Reserve Bank, US Southern Command as well as cruiser company – Carnival Corp. (CCL - Analyst Report). Additionally, the city is also a popular tourism hub, with famous beaches, such as the South Beach.
Starwood currently carries a Zacks Rank #3 (Hold). A better-performing stock in the same sector is Marriott International, Inc. (MAR - Analyst Report), having a Zacks Rank #2 (Buy). In the broader leisure services sector, investors may consider Wynn Resorts Ltd. (WYNN - Analyst Report), which sports a Zacks Rank #1 (Strong Buy).