Marriott International, Inc.’s (MAR - Free Report) Courtyard by Marriott brand has announced that it intends to expand its footprint in the European market. The company, which has 63 hotels in Europe, plans to increase the number by almost 50%. It is expected to open approximately 30 hotels by the end of 2020.
Apart from solidifying its footprint in the established markets of Germany, France and the U.K., the Courtyard by Marriott is expected to open hotels in seven emerging destinations — including Armenia, Finland and Iceland.
The company also announced that it opened two new properties in Paris and Hamburg. In one hand, Courtyard Paris Gare de Lyon was opened in October. On the other hand, Courtyard Hamburg City is likely to be launched in Spring 2019. Brand growth is driven by franchise partners. Moreover, in early 2018, Courtyard announced that it formed a multi-year partnership with FC Bayern. Courtyard is the official partner of the German football club FC Bayern.
Expansion Continues to Drive Growth
Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. The company plans to significantly expand its global portfolio of luxury and lifestyle brands in the months ahead. For 2018, Marriott anticipates 7% net room growth, which is likely to continue building economics, scale and consumer preference for its brands. The company is also trying to expand its footprint outside the United States, especially in Asia, Latin America, the Middle East and Africa.
Meanwhile, the company’s European pipeline has grown consistently in the recent past and is expected to continue in the months ahead. In fact, it aims to expand its lead in the luxury and full-service segments in the region, own the largest portfolio in the upscale division and also win over millennials in the affordable lifestyle group by 2020.
Marriot is very optimistic about growth opportunity in India. The Asian Development Bank forecasted that India will be the fastest growing economy in Asia. The company has more than 20,000 rooms in India. Further, with the increasing number of managed and franchised limited service hotels in Mexico, Colombia and Brazil, the company expects its distribution in the Caribbeans and Latin American region to increase 75% by 2018.
In a year’s time, this Zacks Rank #3 (Hold) company’s shares have decreased 2.8% compared with the industry’s decline of 14.3%. Meanwhile, stocks such as Choice Hotels International, Inc. (CHH - Free Report) , Extended Stay America, Inc. (STAY - Free Report) and Belmond Ltd. (BEL - Free Report) has witnessed gains of 2.4%, 8.2% and 48.4%, respectively, in a year’s time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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