Yahoo Finance Marriott (MAR) Expands in Singapore With Aloft Branded Property
Marriott International, Inc. MAR recently announced an agreement with Hiap Hoe Limited, to launch the Aloft Hotels brand in Singapore. Post a strategic conversion, the company expects to open Aloft Singapore Novena in the third quarter of 2023. The initiative paves a path for the opening of the brand’s first property and the company’s 14th property in the region.
Located in Zhongshan Park (in the cultural district of Balestier), the 785-room hotel features contemporary and dynamic space that caters to the needs of design-savvy, next-generation travelers and locals alike. It also it comes with a range of amenities, including fitness centers, on-site dining, outdoor pool and meeting spaces. It also offers convenient access to Central Business District, leisure attractions and green spaces.
Given the attributes of its strategically-placed location and vibrant offerings, management is optimistic with respect to the hotel opening.
Emphasis On Hotel Conversions
Marriott International emphasizes on hotel conversions to drive growth. Conversions help owners and franchisees to plug into the Marriott system at a quicker pace compared with the opening of a newly-built hotel.
During the first quarter of 2023, conversions represented nearly 30% of signings and 25% of hotel openings. During the quarter, the company emphasized on an 8-hotel portfolio conversion in Vietnam (referred to as Vinpearl). Recently, it initiated Vinpearl Round 2, leading to an addition of seven hotels (or 2500 rooms). The company stated that three of the seven hotels are conversions and are expected to open in 2023. MAR expects positive development trends to continue on the back of new development and multi-unit conversion opportunities.
Price Performance
Image Source: Zacks Investment Research
Coming to price performance, shares of Marriott have gained 4.3% in the past three months against the industry’s 2.3% decline. The company is benefiting from its focus on expansion initiatives, digital innovation and loyalty programs. During first-quarter 2023, the company witnessed robust demand in the United States, Canada and Asia Pacific region. The company benefited from robust leisure demand and ADR, while business transient demand continued to improve. During the quarter, global demand for hotels increased significantly across all regions.
With global trends improving, it expects the recovery momentum to continue. Attributes such as pent-up demand for all types of travel, the shift of spending towards experiences versus goods, lifting of travel restrictions and opening borders (in most markets) are likely to aid the company in the upcoming periods. Earnings estimates for 2023 have increased in the past 60 days, depicting analysts’ optimism regarding the stock’s growth potential.
Zacks Rank & Other Stocks to Consider
Marriott currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have gained 59.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 48.5% and 162.8%, respectively, from the year-ago period’s levels.
Trip.com Group Limited TCOM flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 153.1%, on average. Shares of TCOM have increased 50.8% in the past year.
The Zacks Consensus Estimate for TCOM’s 2023 sales and EPS indicates a rise of 76.9% and 334.5%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. SKX sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 18.8%, on average. Shares of SKX have increased 25.8% in the past year.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates a rise of 7.8% and 31.9%, respectively, from the year-ago period’s levels.
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
Marriott International, Inc. (MAR) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
Trip.com Group Limited Sponsored ADR (TCOM) : Free Stock Analysis Report
