Marriott International, Inc. (MAR - Free Report) announced that it has inked an agreement with Northstar D.O.O, to introduce the Ritz-Carlton brand for the first time in Montenegro. The plan is funded by Al Yasra. While The Ritz-Carlton, Montenegro is slated to open in 2024, The Ritz-Carlton Residences is expected to complete its final phase of construction by 2028.
The Ritz-Carlton Residences bookings will begin in 2020. This property will comprise 180 apartments and 48 villas. Meanwhile, The Ritz-Carlton, a 120-roomed property, aims at offering its guests relaxing sanctuaries with contemporary technology. Both the properties are situated on the Western tip of the chic Luštica Peninsula, offering panoramic views over the glittering Adriatic Sea.
The Ritz-Carlton brand’s luxury hotel and residence is in close proximity from the Tivat International Airport and Dubrovnik International Airport, providing the guests with a memorable entrance via planned private jetty over the sea. Carlton Ervin, chief development officer –Europe Marriott International, stated that “Combining the country's serene, natural beauty together with the brand's legendary service makes Montenegro the perfect destination for The Ritz-Carlton guest."
Expansion Strategy & Solid Brand Position to Drive Revenues
Marriott banks on its hotel expansion strategy. The company keeps on investing in new locations for its various brands to meet the emerging demand for hotels in domestic as well as international markets. Moreover, its solid brand presence, which is encouraging.
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.
At the second-quarter 2019 end, Marriott’s worldwide development pipeline totaled nearly 2,919 properties 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. Moreover, the company expects Ritz-Carlton Yacht to set sail on its first cruise from Fort Lauderdale to Barbados.
Backed by solid expansion strategies and a strong brand presence, shares of Marriott have gained 19.3% so far this year compared with the industry’s 20.5% rally. Notably, the addition of The Ritz-Carlton and The Ritz-Carlton Residences, Montenegro, 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) , Choice Hotels International Inc. (CHH - 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.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>