In these competitive times, most hotel companies across the globe are trying to augment guest satisfaction and gain a better foothold in the industry. Hence, brand conversion and remodeling have become a trend among hoteliers, especially in the past couple of years. Following the trend, Starwood Hotels & Resorts Worldwide, Inc. (HOT) unveiled a hotel in Atlanta, GA under its brand Aloft. This opening marks the entry of the brand in Georgia.
Owned by DeBartolo Development LLC and managed by Banyan Investment Group, Aloft Downtown Atlanta underwent an 18 month renovation, which cost $25.0 million, before its grand opening. This property was formerly known as Days Inn.
Aloft Downtown Atlanta has 254 spacious rooms, a signature bar, a fitness center, a meeting space spread over an area of 2,500 square feet, and all signature amenities of the brand. The hotel is located close to Merchandise Mart in the heart of the city. It is located in close proximity to the offices of several Fortune 500 companies based in the city.
Atlanta is an economic and cultural hub in Southeastern U.S. Downtown Atlanta is also home to the city’s sporting venues and many of its tourist attractions. Strategic renovation of this property will likely boost revenue per available room.
Starwood is comprehensively working on its assets to offer an advanced and customized travel experience to its guests. At present, a few other Starwood-branded properties are also being renovated. In Dec 2013, Starwood Hotels & Resorts opened a hotel in Jacksonville, FL under its popular brand Four Points by Sheraton after investing $2.0 million on its renovation.
Renovation or remodeling is one of the key growth drivers. Most hoteliers are focusing on renovation to attract customers. Recently, Wyndham Worldwide Corporation (WYN) completed the refurbishment of The Borders Lodge in Beaver Creek, CO. The cost of renovation was $1.6 million.
Starwood presently has a Zacks Rank #3 (Hold). Marriott International, Inc. (MAR) is a better-ranked stock in the same industry with a Zacks Rank #2 (Buy). Investors can also consider MGM Resorts International (MGM) from the gaming industry carrying a Zacks Rank #2.
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