Marriott (MAR) Continues to Expand Foothold in South Asia
Marriott International, Inc. MAR is progressing well with its plans to expand in markets that offer increased growth potentials. In the past 18 months, the company has signed 22 new hotel agreements in South Asia.
The company is planning to add more than 2,700 rooms in India, Bhutan, Bangladesh, Sri Lanka, Maldives and Nepal. Marriot, which has largest number of rooms in South Asia, continues to anticipate robust growth with new signings.
Rajeev Menon, president of Asia Pacific (excluding Greater China), Marriott International said, “In a highly unpredictable year, these signings are a testament to Marriott International's resilience and agility in driving strong growth within a hospitality landscape that continues to evolve.”
In India, Marriott is planning to open W Jaipur, JW Marriott Chennai ECR Resort & Spa, JW Marriott Agra Resort & Spa, JW Marriott Goa and JW Marriott Shimla Resort & Spa. The company's Select Brands is expecting to open Courtyard by Marriott Gorakhpur, Courtyard by Marriott Tiruchirappalli, Courtyard by Marriott Goa Arpora, and Courtyard by Marriott Ranchi in the next five years. It will also debut Moxy Mumbai Andheri West in 2023.
The company’s premium brands in South Asia are likely to witness growth with the opening of Katra Marriott Resort & Spa in India, the Le Meridien Kathmandu and Bhaluka Marriott Hotel in Bangladesh.
Shares of Marriott have rallied 65.9% in the past year compared with the industry’s growth of 43.6%.
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Expansion Efforts Driving Growth
Marriott is consistently trying to expand presence worldwide and capitalize on the demand for hotels in international markets. Moving ahead, the company plans to significantly expand global portfolio of luxury and lifestyle brands. At the end of second-quarter 2021, Marriott's development pipeline totaled nearly 2,750 hotels, with approximately 478,000 rooms. Nearly 212,000 rooms were under also construction. During second-quarter 2021, the company added 149 new properties (24,909 rooms) to its worldwide lodging portfolio. In 2021, Marriott anticipates net rooms growth to be toward the higher end of its previous expectation of 3-3.5%. It is also trying to strengthen presence outside the United States, especially in Asia, Latin America, Middle East and Africa. Meanwhile, the company’s European pipeline has grown consistently in the recent past and is expected to continue in the days ahead.
Zacks Rank & Key Picks
Marriott currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Vista Outdoor Inc. VSTO, Delta Apparel, Inc. DLA and Crocs, Inc. CROX. Vista Outdoor and Delta Apparel a Zacks Rank #1, while Crocs carries a Zacks Rank #2 (Buy).
Vista Outdoor has a trailing four-quarter earnings surprise of 70.1%, on average.
Delta Apparel has a trailing four-quarter earnings surprise of 102.2%, on average.
Crocs’ 2021 earnings are expected to surge 114%.
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