Starwood Hotels & Resorts Worldwide Inc. HOT is looking to expand its footprint in the emerging markets. The company recently inked an agreement with Grand Bay Hotel Co., Ltd. – fully owned by Apex Development Public Co., Ltd – for the Sheraton Phuket Grand Bay Resort.
This deal would support Starwood’s Sheraton 2020 initiative, which targets more than 150 Sheraton-branded hotels over the next five years. The hotel is expected to open in Jan 2019 on Thailand’s largest and most popular island – Phuket.
Sheraton Phuket Grand Bay Resort would be located in the Grand Bay area – at the northeast of Phuket and home to the Ao Po Grand Marina. The hotel is well accessible from the Phuket International Airport and is close to the entertainment hub on the island – Patong.
The 200-room hotel will offer three distinct dining areas, including a bar, a modern meeting and event space, a spa, a fully-equipped fitness center and a scenic outdoor swimming pool. The hotel will also feature a private beachfront with picturesque views of the Andaman Sea.
Phuket is a popular destination for tourists due to its tranquil beaches and abundant rainforests. The region attracts a large number of domestic as well as international tourists. This justifies the company’s decision to further expand in the region.
Phuket’s rising popularity as a tourist destination makes it a strategic fit for the Sheraton brand, which has Sheraton Phuket Kalim Beach Resort – slated to open in 2018 – in the pipeline. In fact, the hotelier already operates five Sheraton hotels in Thailand, which is a profitable market for not only Starwood, but for others like Marriott International, Inc. MAR and Hyatt Hotels Corporation H.
Starwood currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same sector is China Lodging Group, Limited HTHT, which sports a Zacks Rank #1 (Strong Buy).
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