In a bid to ramp up its presence in the flourishing Chinese market, leading hotelier, Starwood Hotels & Resorts Worldwide Inc. (HOT) recently unveiled a property named Aloft Dongguan Songshan Lake in the city of Dongguan, in the central Guangdong province. This marked the entry of Aloft, one of Starwood’s contemporary hotel brands, in the city of Dongguan.
Aloft Dongguan, owned by Vanke Dongguan Co., one of the largest housing development firms in China, comprises around 193 rooms. It offers essential and exclusive amenities for both business and leisure travelers. Positioned near the city’s commercial centre, the hotel is easily accessible from Shenzhen Bao'an International Airport and the Dongguan Railway Station. The hotel is also well connected with several popular sightseeing spots of the city.
China is set to bring about a recovery in global tourism and by 2020 it is expected to be the world’s largest travel destination. This justifies Starwood’s initiative which will help it to tap this opportunity.
We believe the opening of the latest property is a strategic fit as Dongguan is the key commercial center of the country, known for its emerging international research and development hub for the eco-technology, high-end electronics and information industries, and is home to several multinational companies. The tourism industry in Dongguan has been rapidly developing with wide range of hotels serving both the domestic as well as international tourists.
Starwood has set a new trend in hotel designs with the Aloft brand and spread its operations globally with more than 100 hotels since its launch in Jun 2008. In its five years of journey, Aloft has performed well in terms of guest satisfaction, reflecting its strength and growing popularity.
The Aloft concept cater to modern travelers who seek a unique experience. The affordable price point in the mid-market hotel category is another reason for its increasing popularity.
Most hoteliers across the globe are trying to tap the rapidly growing demand for international hotels in the emerging market, especially China. Apart from Starwood Hotels, Marriott International, Inc. (MAR) is also seeking to capitalize on this demand.
The company presently has a short-term Zacks Rank #3 (Hold). Some better-ranked stocks in the hotel industry include Hilton Worldwide Holdings Inc. (HLT) and Intercontinental Hotels Group plc (IHG). Both these stock carry a Zacks Rank #2 (Buy).
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