Marriott Vacations Worldwide Corporation VAC has announced that one of its operating businesses, Aqua-Aston Hospitality, added CopperWynd Resort & Club in Scottsdale, AZ, in its portfolio. Aqua-Aston Hospitality already holds nearly 40 properties and CopperWynd would be its first property in Arizona.
The 32-roomed property will be located in close proximity to the Phoenix airport and will feature Marriott Vacations’ luxury offerings. The property is currently undergoing an extensive $60-million renovation and expansion. It is slated to open in 2020.
The move not only underscores Marriott Vacations’ expansion strategies but is also in line with the company’s differentiated offerings to attract more customers. Backed by a strong brand presence, shares of the company have gained 37.2% so far this year, outperforming the industry’s 17.9% rally.
We believe that the addition of CopperWynd will help Marriott Vacations to fortify its top line. As it is, the company continues to impress investors with robust top-line growth. In first-quarter 2019, revenues increased 85.6%, following 87.2% gain in the preceding quarter. The upside can be attributed to revenue growth across segments. Also, consolidated Vacation Ownership contract sales, rental, financing, and resort management and other services revenues increased 74%, 98%, 89% and 79%, respectively, in the quarter. For 2019, the company expects consolidated contract sales to be $1,530-$1,600 million.
This is also Marriott Vacations’ way of countering intense competition from the likes of Marriott MAR, Hilton HLT and Hyatt H.
Marriott Vacations currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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