In collaboration with Granite Broadway Development LLC, Marriott International, Inc. (MAR - Free Report) recently unveiled the tallest hotel in Manhattan, N.Y. in North America. This 68 storey Marriot property is a combination of its two brands, Courtyard and Residence Inn. Excluding offices or residential space, this 230 meters long property cost the company around $320.0 million.
Located at 1717 Broadway, this dual branded property is managed by Interstate Hotels & Resorts. The hotel is located close to Central Park and Times Square, which makes it easily accessible for both business and leisure travelers. It features a huge meeting space covering 6000 square feet and a fitness centre.
The Courtyard branded hotel has 378 rooms that are located on floors 6 to 33 and mainly target leisure and business travelers with their modern designs. The Residence Inn has 261 suites that are located on floors 37 to 65 and are meant mainly for guests who stay for five nights and more. Residence Inn offers suites with a kitchenette, a coffeemaker, a microwave oven and custom appliances.
This opening comes in the wake of rising demand for hotels in the city, which hosted 54.3 million tourists last year. Per Bloomberg, the city will likely have 55 million visitors in 2014. Moreover, as per Smith Travel Research ("STR"), New York had the highest occupancy amongst the 25 U.S. markets through Nov 2013. This could well be one of the reasons for the company to choose New York as the destination. Marriott has approximately 100 hotels across the U.S. and the company continues to explore similar opportunities.
However, per STR, New York City hotels will witness a dip in occupancies over the next couple of years owing to increasing competition. Another hotelier keen on expanding in the New York market is Hyatt Hotels Corporation (H - Free Report) .
Marriott presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the hotel industry include Starwood Hotels & Resorts Worldwide Inc. and Wynn Resorts Ltd. (WYNN - Free Report) . Both these stocks hold a Zacks Rank #2 (Buy).