Starwood Hotels & Resorts Worldwide Inc. (HOT) recently announced the opening of two Sheraton branded hotels — Sheraton Xishuangbanna and Sheraton Zhengzhou — in the Yunnan Province and Henan Province of China.
Sheraton Xishuangbanna Hotel marks Starwood’s debut in the picturesque Xishuangbanna region (Yunnan Province) known for the Xishuangbanna Tropical Rain Forest Natural Reserve. The 326-room hotel is located near the Jinghong City and is well connected with the Xishuangbanna Gasa International Airport. It is also a stone’s throw away from other tourist attractions like Jinuo Village, Wild Elephant Valley and Liusha Village Mannongfeng. The property is located in the Gasa Tourism Zone's Hot Spring district which is famous for its rich cultural heritage.
The Sheraton Zhengzhou, on the other hand, located in the capital of Henan Province in Central China is the fourth Starwood hotel in the region. The 361-roomed hotel is owned by local real estate firm, Zhengzhou Missun Real Estate Company.
The hotel is located in the Zhengdong Central Business District of East Zhengzhou and close to the Provincial Government offices and many other companies. The hotel is near the International Convention and Exhibition Center and art and cultural museums, retail and entertainment hubs and well connected to Zhengzhou Xinzheng International Airport.
Both the hotels will offer health and fitness programs, restaurants and bars, and a meeting space and cater to business as well as leisure travelers.
The tourism industry in Asia Pacific, especially China, is expected to grow year over year at the same or higher rate than the mature markets of U.K., France or Japan, according to the World Travel and Tourism Council. This justifies the company’s decision to expand its footprint in the region.
Notably, the emerging markets account for a large share of Starwood’s development pipeline. Fueled by the growing affluent middle class, demand for hotels in China is rising continuously. Therefore, Starwood is looking to cater to the demand in that region.
More than half of Starwood’s properties are situated outside the U.S. offering wide international exposure, unlike any of its peers. Further, the company is consistently trying to expand its international footprint and tap the high demand in the emerging markets.
Stocks to Consider
Starwood currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Marriott International, Inc. (MAR), Hilton Worldwide Holdings Inc. (HLT) and Intercontinental Hotels Group plc (IHG). All these stocks carry a Zacks Rank #2 (Buy).
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