Marriott International, Inc. (MAR - Free Report) announced that its The Ritz-Carlton brand debuts in the capital city of Western Australia with the launch of The Ritz- Carlton, Perth. Notably, this will also mark the 100th Ritz-Carlton property worldwide.
The 205-roomed property, situated in Perth's finest lifestyle precinct, offers its guests an easy access to the city’s most iconic destinations namely Swan River, Kings Park and The Bell Tower. Also, guests can take a bike ride to Blue Boatshed at Crawley Edge along with one of the hotel chefs and can explore Margaret River by seaplane. "We are very excited to bring the legendary service and exceptional luxury of The Ritz-Carlton brand back to Australia," as stated by Lisa Holladay, Global Brand Leader, The Ritz-Carlton.
Expansion Strategy & Solid 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 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 7,200 properties in 134 countries and territories.
At the third-quarter 2019 end, Marriott’s worldwide development pipeline totaled nearly 2,950 hotels and more than 495,000 rooms. 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. It is also very optimistic about growth opportunity in India.
Backed by solid expansion strategies and a strong brand presence, shares of Marriott have gained 6.1% in the past six months compared with the industry’s 5.4% rally. Notably, the addition of The Ritz-Carlton, Perth 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 third quarter, RevPAR for worldwide comparable system-wide properties increased 1.5% in constant dollars and 0.9% in actual dollars driven by a 0.7% improvement in average daily rate (ADR).
Zacks Rank & Stocks to Consider
Marriott currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks that belong to the same industry are Hyatt Hotels Corporation (H - Free Report) , Hilton Worldwide Holdings Inc. (HLT - Free Report) and Marriott Vacations Worldwide Corporation (VAC - Free Report) , each carrying a Zacks Rank #3 (Hold). You can the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hyatt reported a trailing four-quarter average beat of 104.8%.
Hilton reported a trailing four-quarter average beat of 6.9%.
Marriott Vacations has an impressive long-term earnings growth rate of 9%.
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