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Starwood Expands in Latin America with Two Hotels in Mexico

Starwood Hotels & Resorts Worldwide, Inc. HOT recently announced the debut of Aloft hotel in Veracruz, the main commercial seaport in Mexico, and Queretaro, one of the fastest-growing cities in the country. The hotels will join the brand’s existing collection of hotels in the region, which includes Aloft Bogota Airport in Colombia, Aloft San Jose in Costa Rica, Aloft Panama, Aloft Cancun, Aloft Guadalajara in Mexico and Aloft Asuncion in Paraguay.

The announcement was made at the Hotel Opportunities Latin America (HOLA) Conference. Aloft Veracruz is set to open toward the end of 2017 and will be developed by FibraHotel, a Mexican trust created mainly to invest in a diversified portfolio of business-class hotels in Mexico. Aloft Queretaro will be located in Juriquilla and run as a franchised hotel operated by Grupo Presidente. It will open in 2018.

Aloft is one of the fastest growing brands with 100 hotels in 15 countries. The Aloft brand caters to modern travelers who seek a unique experience. Its affordable price point in the mid-market hotel category is another reason for its increasing popularity.

Influenced by increasing demand in dynamic markets around the globe, Aloft continues to enter new horizons — which includes recent openings in Asuncion, Paraguay and Munich and Stuttgart, Germany. Further it is on track to double its footprint in Latin America in less than two years.

With its strong presence, Starwood has become one of the most sought-after global brands. The company is now assessing its opportunities in various untapped but highly populated emerging cities. The thriving economy in these regions and the proliferation of small and medium-size businesses are boosting business travel. Moreover, the sharp rise in affluence and growing sophistication of city dwellers are fueling an uptick in spending on travel and other leisure activities.

With the rise in global travel demand and increasing wealth of consumers, Starwood expects 2016 to be strong in terms of openings and new deals. This Zacks Rank #3 (Hold) company will continue to concentrate on fast-growing areas where demand is substantially high but supply limited.

Some  better-ranked stocks in the same sector are Belmond Ltd. BEL, Intrawest Resorts Holdings, Inc. SNOW, both carrying a Zacks Rank #1 (Strong Buy) and Marriott Vacations Worldwide Corp. VAC, carrying a Zacks Rank #2 (Buy).

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