Marriott International, Inc. (MAR - Free Report) announced a solid expansion plan as part of which it will open 40 luxury hotels in 2018. Its future plan also includes opening 200 hotels in 25 new countries including Iceland, Cuba, Philippines and Nepal.
According to Tina Edmundson, Global Brand Officer, Marriott International, “with data showing a global shift in perception around luxury, we are uniquely positioned to provide personalized and truly differentiated experiences that resonate with this next-generation jetsetter."
We observe that Marriott stock has rallied 55.5% year to date, significantly outperforming the industry’s gain of 22.7%.
Brand Wise Global Expansion in 2018
The Ritz-Carlton will open six locations including a property in China's Jiuzhaigou Valley and renovate its Berlin and Istanbul hotels. Ritz-Carlton Reserve will open in Los Cabos. St. Regis Hotels & Resorts will open in Amman and Cairo while its property in Rome will undergo renovation.
Furthermore, eight Luxury Rebel W hotels are slated to open in locations including Brisbane, Panama City, Dubai and Tel Aviv.
Coming to the EDITION brand, it will add four to 11 properties in 2018, with two launches in West Hollywood and New York's Times Square, two in Bangkok and Shanghai, and two more in Barcelona and Bodrum. In addition, it will launch its first outpost of the Middle East in Abu Dhabi.
Another brand, The Luxury Collection is slated to introduce 10 properties in attractive locations that include Okinawa, Vail, Savannah and Los Cabos.
JW Marriott will open in two new locations, Nashville and the Maldives, and conduct multi-million-dollar renovations in half of its properties including JW Marriott Bangkok and Grosvenor House, a JW Marriott Hotel.
Marriott is consistently trying to expand its presence worldwide and making huge investments to capitalize on the demand for hotels in the international markets. Notably, the company anticipates gross room additions of 7% in 2018, which will help it in building economics, scale, and consumer preference for its brands.
Marriott International Revenue (TTM)
The planned moves indicate the hotel company’s increased efforts toward expanding its footprint outside the United States, especially in Asia, Latin America and the Middle East.
Meanwhile, the company’s European pipeline has grown consistently in the recent past and the trend is expected to continue. In fact, the company aims to expand its lead in the luxury and full-service segments in the region, have the largest portfolio in the upscale division and also win over millennials in the affordable lifestyle group by 2020.
Zacks Rank and Stocks to Consider
Marriott has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the hotels and motels space include Hilton Worldwide Holdings (HLT - Free Report) , Choice Hotels International (CHH - Free Report) and Intercontinental Hotels Group (IHG - Free Report) , each carrying a Zacks Rank #2.
Long-term earnings per share growth rate for Hilton Worldwide, Choice Hotels and Intercontinental Hotels is projected to be 5%, 8.4% and 9.3%, respectively.
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