The demand for hotels in the international market is greater than in the U.S. and the pace of economic recovery is particularly fast. Therefore, a number of leading hoteliers are busy expanding overseas. In keeping with this trend, Hilton Worldwide Holdings Inc. HLT announced that it will be opening a hotel under its lifestyle hotel brand – Canopy by Hilton – in Reykjavik, Iceland.
Canopy Reykjavik City Centre, expected to open in 2016, will be the first Canopy hotel in Reykjavik. The hotel will be operated by Icelandair Hotels, a subsidiary of Icelandair Group. The 115-room hotel featuring a rooftop bar and restaurant will be located in Hverfisgata St, a prosperous neighborhood in the centre of the capital city of Iceland.
Iceland, being very close to the Arctic Circle, is one of the few countries where the spectacular Aurora Borealis or Northern Lights can be seen clearly. Due to its geographic location, Iceland experiences 24-hour daylight during summer and has an influx of tourism.
The country’s volcanic landscape has produced thermal springs and glaciers, which are major tourist attractions. Recently, Iceland’s second largest glacier, Langjokull, was opened to the public, allowing visitors to travel through a tunnel in the centre of one of Europe's largest glaciers. Keeping all these factors in mind, selecting Reykjavik, one of the world’s cleanest and greenest cities, for the new hotel was a strategic decision for the company.
With the recent increase in occupancy rates driven by the gradual economic recovery, a number of hoteliers are investing heavily to improve their services and offer better experience to their guests. Further, hotels are striving to develop a multi-channel approach by incorporating the latest technology to make their services more consumer-friendly.
Apart from Hilton, hoteliers like Starwood Hotels & Resorts Worldwide Inc. HOT, Marriott International, Inc. MAR and Hyatt Hotels Corporation H are consistently foraying into international markets, thereby increasing their presence worldwide.
Hilton currently has a Zacks Rank #4 (Sell).
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