Starwood's Four Points Debuts in Brisbane - Analyst Blog
March 06 2014 - 2:00PM
Zacks
Starwood Hotels & Resorts Worldwide, Inc.
(HOT) remains steadfast in its goal to expand its presence in the
international market. The company recently unveiled Four Points by
Sheraton Brisbane signaling the debut of the brand in the city. The
new property will be owned by Felicity Hotel Pty Ltd.
The 246-roomed property is located at Brisbane’s Central Business
District, at a stone’s throw away from the city’s main attractions
like the Brisbane Botanical Gardens, Brisbane River and Queensland
Art Gallery. In our view, the upscale location and close proximity
to the major attractions will act as a major crowd-puller for the
hotel.
In recent times, Four Points has emerged as one of the strongest
brands of Starwood, especially after the completion of the $1
billion revitalization program. Boasting an affordable price point
and the largest pipeline among all the brands of Starwood, the
mid-scale and contemporary lifestyle brand has been a major success
worldwide.
Starwood has a considerable presence in Australia with 10
properties, out of which 4 are under the Four Points by Sheraton
brand. Besides Four Points, two other brands — Westin and Sheraton
— also operate in the country.
The global hotel chain sees huge development opportunities in
Australia — one of the world’s wealthiest countries. With a limited
supply environment, the country is set to witness a surge in demand
for luxury accommodation driven by a considerable increase in the
number of domestic as well as international travelers.
With Australia’s consistent GDP growth over the last few years,
Starwood’s decision to expand in the country appears to be
strategically apt. Brisbane – one of the largest cities of
Australia – serves as a major trade and transportation hub and,
attracts both business and leisure travelers, and Starwood is
seeking to capitalize on the rising demand in the city.
Stocks to Consider
Starwood currently retains a Zacks Rank #4 (Sell). A better-ranked
stock in the hotel industry is Marriott International,
Inc. (MAR), with a Zacks Rank #2 (Buy). In the broader
leisure services sector, investors may consider Wynn
Resorts Ltd. (WYNN) and MGM Resorts
International (MGM). While Wynn Resorts sports a Zacks
Rank #1 (Strong Buy), MGM Resorts has the same Zacks Rank as
Marriott.
STARWOOD HOTELS (HOT): 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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