Marriott International, Inc. (MAR - Free Report) has inked an agreement with Larco to launch W Hotels for the first time in Toronto.
Notably, Toronto's first W hotel will be located at 90 Bloor Street East in Toronto's Yorkville neighborhood. This new property will offer its unique Whatever/Whenever service and creative programming to meet the growing demand for luxury in Canada. Its strategic location will attract international business and leisure travelers as well as urban thrill-seekers. The W Toronto had started its $40 million design transformation in July 2019 and is slated to open by the summer of 2020.
Currently, Marriott has seven open luxury hotels, with more such projects expected to be announced before 2019-end.
Solid Expansion Strategy & Brand Position to Drive Revenues
In a bid to maintain its position as the fastest-growing global hospitality company, Marriott continues to expand its footprint. To this end, the company is consistently making investments in new locations for its various brands to meet the growing demand for its hotels both domestically and internationally.
Precisely, Marriott is a leading company in the luxury and lifestyle space, which includes brands that own more than 7,000 properties in 132 countries and territories.
On Aug 26, 2019, the company opened its 7000 property — the 279 roomed W Muscat — in Oman. At the second-quarter 2019 end, Marriott’s worldwide development pipeline totaled nearly 2,900 rooms and more than 487,000 rooms (of these nearly 213,000 rooms were already under construction). For 2019, it anticipates 5-5.5% net room growth, which is likely to continue building economics, scale and consumer preference for its brands.
By 2020, the company aims to lead in the luxury and full-service segments in the region served, intends to have the largest portfolio in the upscale division and also win over millennials in the affordable lifestyle group.
Backed by solid expansion strategies and a strong brand presence, shares of Marriott have gained 18.3% so far this year compared with the industry’s 18.6% rally. Notably, the addition of W Toronto is likely to help Marriott boost its overall revenues and witness increased revenue per available room (RevPAR) for its worldwide comparable system-wide properties.
In the second quarter, RevPAR for worldwide comparable system-wide properties increased 1.2% in constant dollars and 0.3% in actual dollars driven by a 1.1% improvement in average daily rate (ADR). Higher leisure transient demand in Europe, the Caribbean and South America, and the Asia Pacific regions helped Marriott to deliver impressive results.
Marriott, which shares space with Hyatt Hotels Corporation (H - Free Report) , Huazhu Group Limited (HTHT - Free Report) and Hilton Worldwide Holdings Inc. (HLT - Free Report) in the Zacks Hotels and Motels industry, carries a Zacks Rank #3 (Hold). You can the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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