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Marriott (MAR) Maps Massive Growth Strategy in Asia Pacific
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Taking into consideration its solid performance in first-quarter 2017, Marriott International, Inc. (MAR - Free Report) recently announced that the company is on track to open nearly 80 hotels in Asia Pacific thereby bringing 19,000 new rooms to the region.
Moreover, the company plans to introduce two more brands in Asia Pacific this year. With a total of 23 attractive brands on offer, the company aims to cater to every occasion and traveler, and grow its footing as a luxury, premium as well as select service hotel operator therein. Thus, 2017 is set to be a breakthrough year for Marriott across Asia Pacific.
Inside the Headlines
Notably, growth impetus in the hotel conglomerate’s Asia Pacific business remains strong with more than 550 hotels in operation and over 170,000 rooms.
The first brand to debut this year in the region is MOXY Hotels, marking its entry with the expected opening of MOXY Tokyo by the end of the year. We note that MOXY Hotels is Marriott's Next Gen boutique-hotel brand for the 'always on' and digitally savvy.
Delta Hotels – a premium brand renowned by its rich Canadian heritage – is the second brand set to enter Asia Pacific with the opening of Delta Hotels by Marriott Shanghai Baoshan this summer in suburban Shanghai, China.
Meanwhile, in China, Marriott is working in close tandem with more than 150 hospitality schools and colleges via robust internship programs to assist capable youngsters in launching their careers in Asia's booming hospitality industry. In fact, the company is set to create over 20,000 new jobs across Asia Pacific by end of the year.
What’s the Fuss About?
It is to be noted that in addition to domestic lands, Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in the international markets, especially in Asia, Latin America, Middle East and Africa. Meanwhile, the company’s European pipeline has grown consistently in the recent past and is expected to continue, going forward.
In fact, the demand for hotels in these markets is greater than in the domestic space as the rising disposable income, primarily among the middle classes, is boosting tourism. Within Asia-Pacific, China promises immense growth potential, despite the economic slowdown. Apart from China, Marriott continues to focus on other Asian countries like India, Indonesia, Thailand and Australia for further expansion.
Marriott had earlier increased its full-year 2017 revenue per available room (RevPAR) expectations on the back of stronger-than-expected RevPAR performance in North America in the first quarter and improving demand trends in the Europe and Asia Pacific regions.
Bottom Line
After announcing the acquisition of Starwood Hotels & Resorts on Sep 23, 2016, Marriott has become the world’s largest hotel company. Currently, it has more than 6,100 properties across 124 countries and territories, under 30 brand names. Notably, post-acquisition of Starwood, shares of the company have gained 56%, while the broader S&P 500 index grew 11.5% in the same time frame, depicting the positive effect of the acquisition.
However, lingering political uncertainties in key international markets along with currency headwinds remain concerns for Marriott as well as most of the other hotel chains including Hyatt Hotels Corporation (H - Free Report) , Hilton Worldwide Holdings (HLT - Free Report) and Wyndham Worldwide Corporation .
Notwithstanding the headwinds, the company’s strong transient demand along with improvements in business and leisure travel raises optimism in the stock. Moreover, with more than 500 properties in its development pipeline in Asia Pacific, which are anticipated to open by 2021, this Zacks Rank #2 (Buy) company is slated for continual growth in the region. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
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A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Marriott (MAR) Maps Massive Growth Strategy in Asia Pacific
Taking into consideration its solid performance in first-quarter 2017, Marriott International, Inc. (MAR - Free Report) recently announced that the company is on track to open nearly 80 hotels in Asia Pacific thereby bringing 19,000 new rooms to the region.
Moreover, the company plans to introduce two more brands in Asia Pacific this year. With a total of 23 attractive brands on offer, the company aims to cater to every occasion and traveler, and grow its footing as a luxury, premium as well as select service hotel operator therein. Thus, 2017 is set to be a breakthrough year for Marriott across Asia Pacific.
Inside the Headlines
Notably, growth impetus in the hotel conglomerate’s Asia Pacific business remains strong with more than 550 hotels in operation and over 170,000 rooms.
The first brand to debut this year in the region is MOXY Hotels, marking its entry with the expected opening of MOXY Tokyo by the end of the year. We note that MOXY Hotels is Marriott's Next Gen boutique-hotel brand for the 'always on' and digitally savvy.
Delta Hotels – a premium brand renowned by its rich Canadian heritage – is the second brand set to enter Asia Pacific with the opening of Delta Hotels by Marriott Shanghai Baoshan this summer in suburban Shanghai, China.
Meanwhile, in China, Marriott is working in close tandem with more than 150 hospitality schools and colleges via robust internship programs to assist capable youngsters in launching their careers in Asia's booming hospitality industry. In fact, the company is set to create over 20,000 new jobs across Asia Pacific by end of the year.
What’s the Fuss About?
It is to be noted that in addition to domestic lands, Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in the international markets, especially in Asia, Latin America, Middle East and Africa. Meanwhile, the company’s European pipeline has grown consistently in the recent past and is expected to continue, going forward.
In fact, the demand for hotels in these markets is greater than in the domestic space as the rising disposable income, primarily among the middle classes, is boosting tourism. Within Asia-Pacific, China promises immense growth potential, despite the economic slowdown. Apart from China, Marriott continues to focus on other Asian countries like India, Indonesia, Thailand and Australia for further expansion.
Marriott had earlier increased its full-year 2017 revenue per available room (RevPAR) expectations on the back of stronger-than-expected RevPAR performance in North America in the first quarter and improving demand trends in the Europe and Asia Pacific regions.
Bottom Line
After announcing the acquisition of Starwood Hotels & Resorts on Sep 23, 2016, Marriott has become the world’s largest hotel company. Currently, it has more than 6,100 properties across 124 countries and territories, under 30 brand names. Notably, post-acquisition of Starwood, shares of the company have gained 56%, while the broader S&P 500 index grew 11.5% in the same time frame, depicting the positive effect of the acquisition.
However, lingering political uncertainties in key international markets along with currency headwinds remain concerns for Marriott as well as most of the other hotel chains including Hyatt Hotels Corporation (H - Free Report) , Hilton Worldwide Holdings (HLT - Free Report) and Wyndham Worldwide Corporation .
Notwithstanding the headwinds, the company’s strong transient demand along with improvements in business and leisure travel raises optimism in the stock. Moreover, with more than 500 properties in its development pipeline in Asia Pacific, which are anticipated to open by 2021, this Zacks Rank #2 (Buy) company is slated for continual growth in the region. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>