Ritz-Carlton to Reopen Rancho Mirage Resort - Analyst Blog
March 03 2014 - 05:00PM
Zacks
In a bid to cash in on the improving economy, Ritz-Carlton Hotel
Company, LLC — a fully owned subsidiary of Marriott
International, Inc. (MAR) — is set to reopen a property in
Rancho Mirage in May 2014. The luxury resort had closed for the
purpose of renovation almost 7 years back. However, the renovation
stopped 5 years ago when the primary investor went bankrupt.
Rancho Mirage, a resort city, is located about a couple of hours
from Los Angeles and San Diego in Southern California. The 244-room
resort is surrounded by the scenic Santa Rosa Mountain range. The
resort will offer amenities such as cliff-side swimming, pools,
spa, hiking and biking trails, polo grounds, golf courses and
tennis courts. In our view, a high-end luxury resort along with the
scenic destination will act as a major crowd-puller for
Ritz-Carlton.
Ritz-Carlton’s return to Rancho Mirage reflects the area's
increasing popularity as a year-round getaway. With the Californian
economy recovering steadily, tourism has also picked up in the
recent past.
Ritz-Carlton has aggressive plans to expand its presence. Notably,
the company announced a major expansion and development initiative
in September last year aiming to bring the total number of hotels
and resorts around the world to 100 by 2016. Under the initiative,
the company announced hotel openings in Japan and Israel. We
believe the reopening of the Rancho Mirage resort will be a step
toward achieving its goal.
Currently, Marriott International carries a Zacks Rank #2 (Buy). A
better-ranked stock in the hotel industry is Huazhu Hotels
Group Ltd (HTHT), which carries a Zacks Rank #1 (Strong
Buy). However, in the broader leisure services sector, other gaming
stocks like Wynn Resorts Ltd. (WYNN) and
MGM Resorts International (MGM) can also be
considered. While Wynn Resorts carries a Zacks Rank #1, MGM Resorts
sports a Zacks Rank #2.
CHINA LODGING (HTHT): Free Stock Analysis Report
MARRIOTT INTL-A (MAR): Free Stock Analysis Report
MGM RESORTS INT (MGM): Free Stock Analysis Report
WYNN RESRTS LTD (WYNN): Free Stock Analysis Report
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