Starwood Hotels & Resorts Worldwide Inc.’s HOT upscale brand, The Luxury Collection Hotels & Resorts, recently announced the opening of Excelsior Hotel Gallia, a Luxury Collection Hotel in Milan, Italy, after renovation. Formerly known as Palace Gallia, the hotel will be owned by Katara Hospitality – a global hotel owner, developer and operator based in Qatar.
The hotel is located in the centre of the new Porta Nuova district and has been renovated to add a new contemporary wing, apart from redesigning the old building. This renovation is also part of a multi-million euro investment by Starwood to restore the The Luxury Collection brand’s most iconic European hotels.
The 235-room hotel features 53 suites and a roof-top restaurant. The hotel also features a spa as well as a swimming pool and fitness area flaunting with the latest equipment. The hotel also has a modern, multifunctional space equipped with the latest audio-visual technology for celebrations and business events. In our view, the location in the business centre of Milan will be a major crowd puller for the hotel.
Italy ranks high among the famous tourist destinations of Europe because of its rich cultural history and numerous tourist attractions. The Milanese hospitality industry has been especially robust despite the economic recession in Italy. With moderate improvement in the economic situation in the beginning of this year, tourism is expected to receive a major boost. In our view, Starwood is striving to capitalize on this anticipated demand.
With the recent increase in occupancy rates due to the gradual economic recovery, hoteliers like Hilton Worldwide Holdings Inc. HLT and Marriott International, Inc. MAR are investing heavily to improve their services and offer a better experience to their guests, thereby increasing the customer base.
Further, hotels are striving to develop a multi-channel approach with the help of technology to make their services more consumer-friendly. Additionally, hoteliers are engaging in extensive renovations to stay ahead of the ever-changing needs and demands of consumers.
Starwood currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Marriott Vacations Worldwide Corp. VAC, sporting a Zacks Rank #1 (Strong Buy).
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