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Marriott (MAR) on Expansion Spree, Unveils Hotel in Tuscany

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Marriott International, Inc.’s (MAR - Free Report) recently inked a deal with Progetto Majestic S.r.l. for the launch of W Hotels Worldwide brand in the Tuscan city of Florence. Located in the center of the iconic city beside the Ponte Vecchio river and the church, the hotel is expected to open in 2023.

The new 120-room and 20-suites hotel features a large living space and private terrace with magnificent views across the Duomo and the Santa Maria Novella church. Being located in the world’s most well-known art city, the hotel offers its guests beautiful dining scene and celebrated shopping destination Via de'Tornabuoni, W Florence.  

With respect to the launch, Gianleo Bosticco, president, senior director, Development Italy, Marriott International, stated “Florence is a dynamic, awe-inspiring city and we are thrilled to collaborate with Progetto Majestic S.r.l. to bring W Hotels to the city, this key signing underscores the growth of our luxury portfolio across Italy and impressive demand for the W brand”

Expansion Plans to Drive Growth

Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. At the end of second-quarter 2021, Marriott's development pipeline totaled nearly 2,750 hotels, with approximately 478,000 rooms.  At present, Marriott operates 14 properties under the W brand across Europe, the Middle East and Africa.

Moving ahead, the company plans to significantly expand the global portfolio of luxury and lifestyle brands. In 2021, Marriott anticipates net rooms growth to be toward the higher end of its previous expectation of 3-3.5%. The hotel company is also trying to strengthen presence outside the United States, especially in Asia, Latin America, Middle East and Africa. Going forward, the company anticipates the debut of W brand in Italy with the opening of W Rome in Autumn 2021.

Shares of Marriott have surged 49.5% compared with the Zacks Hotels and Motels industry’s 34.9% rise in the past year.


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Zacks Rank & Key Picks

Marriott carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Consumer Discretionary sector include Adtalem Global Education Inc. (ATGE - Free Report) , Hasbro, Inc. (HAS - Free Report) and Leggett & Platt, Incorporated (LEG - Free Report) , each sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Adtalem has a trailing four-quarter earnings surprise of 33.2%, on average.

Hasbro has a three-five-year earnings per share growth rate of 17.7%.

Leggett 's earnings for 2021 are expected to rise 33.8%.


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