U.S. Markets close in 22 mins

Marriott (MAR) to Expand Globally in 2016 with 22 AC Hotels

Zacks Equity Research

Marriott International, Inc. MAR plans to increase its global footprint in order to cater to the rise in global travel demand and increasing wealth among consumers. The company revealed its plan to open 22 designer hotels under its brand, AC Hotels, in 2016. This month, the company aims to open five hotels – AC Guadalajara Mexico; AC Cincinnati North/West Chester, OH; AC Boston North, MA; AC Marseille, France; and AC Queretaro, Mexico.

The new AC Hotels are designed in classic European tastes in tones of grey and charcoal. The hotel offers an innovative beverage and food program within its AC lounge. Its bar stocks a wide variety of beverages including local craft beer, specialty wines, signature cocktails and a selection of tapas-style small bites. Adjacent to the AC Lounge, the AC Kitchen serves European continental breakfast with options like flaky croissants, savory egg tarts and Nespresso coffee.

Other features offered by the AC Hotels include the AC Library, complimentary Wi-Fi connectivity and a state-of-the-art fitness center. In addition, guests are offered Kallpods, wireless service buttons that help them call for staff attention anywhere in the hotel’s premises.

Opening of the AC Hotels is in line with Marriott’s growth strategy to expand its worldwide presence. Going forward, this Zacks Rank #3 (Hold) company plans to significantly grow its global portfolio of luxury and lifestyle brands. It is trying to expand its footprint outside the U.S. in Asia, the Middle East, Europe and Latin America.

These markets witness greater demand for hotels than the U.S. and have a faster pace of economic recovery as well. Within the Asia-Pacific region, China promises immense growth potential. Marriott also focuses on other Asian countries like India and Thailand for further expansion. Europe and Latin America are its two other high-growth markets.

Other hotels in the industry are also expanding their global footprint. Some of these companies include Starwood Hotels & Resorts Worldwide, Inc. HOT, Hyatt Hotels Corporation H and Hilton Worldwide Holdings Inc. HLT.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
STARWOOD HOTELS (HOT): Free Stock Analysis Report
 
MARRIOTT INTL-A (MAR): Free Stock Analysis Report
 
HYATT HOTELS CP (H): Free Stock Analysis Report
 
HILTON WW HLDG (HLT): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research