Starwood Hotels & Resorts Worldwide Inc.(HOT) with its Luxury Collection brand is all set to expand to Thailand, a renowned tourist hub. The company announced the inauguration of The St. Regis Bangkok, the first St. Regis resort in Thailand.
St. Regis Bangkok features 227 guest rooms including 51 suites and 53 residences, the first Elemis Spa and ZUMA restaurant. The hotel is also expected to provide the St. Regis signature butler service to all its guests.
In the last decade, Thailand has developed into a prominent tourist hub due to well-known tourist destinations such as Pattaya, Bangkok, Phuket, Chiang Mai and Ko Samui, and thus contributing significantly to the economy.
The new hotel is located at Rajadamri Road, which is at close proximity to a host of corporations and financial institutions as well as shopping malls. Additionally, hoteliers can easily access BTS Skytrain, which is situated just in front of the hotel. Management views it as an excellent venue for both social and corporate events. We expect Starwood to benefit from its strategic location going forward and will drive traffic from all over the world.
The company is poised to benefit from the increase in demand for hotels. Over half of its hotel properties are outside the U.S., an international exposure that not many of its peers such as Wyndham Worldwide Corporation (WYN) and Hyatt Hotels Corporation (H) can boast of. Additionally, over 80% of the company’s 85,000 room-pipeline will be built in international markets. The demand for hotels in the international market is strong, as the pace of economic recovery is particularly fast outside the U.S.
Starwood currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also reiterate our long-term Neutral rating on the shares.
Starwood is a leading worldwide hospitality company with primary focus on property ownership, management and franchising. Starwood derives the majority of its revenue from its full-service, luxury/upscale brands such as Sheraton, Westin, St. Regis, The Luxury Collection, W, Four Points by Sheraton, Le Meridien, AloftSM and ElementSM.
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