Starwood (HOT) Salzburg Property Crowned Sheraton Grand

Sheraton Hotels & Resorts, the largest and globally acclaimed brand of Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) , recently announced the designation of Sheraton Salzburg Hotel as a Sheraton Grand. Having concluded a five-year long, 10 million euro top-to-bottom renovation, the Sheraton Grand Salzburg will be the 34th Sheraton Grand after properties with the same designation in Beijing, Dubai and Istanbul to name a few places.

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The revamped property combines a contemporary touch with the traditional Salzburg design. Twenty-nine new rooms and suites have been added, the entire sixth floor has been restored with premium furnishing and materials and a new show kitchen has also been constructed to provide an elevated dining experience. The entire hotel is conveniently located to overlook Salzburg’s mountain scenery and the famous Mirabell Gardens.

Vision for Sheraton

Starwood had come up with an all-inclusive 10-point plan in Jun 2015 to put Sheraton Hotels and Resorts firmly back to global limelight. Sheraton Grand is one of the many initiatives undertaken for Sheraton 2020, the five-year vision including the commencement of a new enhanced food and beverage lobby program, commitment to improve guest experiences and service, the execution of profit-driving initiatives, and the target of opening more than 150 new Sheraton hotels worldwide in the next five years.

Starwood Hotels Outlook

Starwood is one of the most sought after global brands and is constantly looking to expand its global presence. The company has entered into a definite agreement to be acquired by Marriott International, Inc. (NASDAQ:MAR) , which is expected to close soon and will lead to the creation of the world’s biggest hotel company.

However, lingering political uncertainties in Europe and some parts of Africa along with economic slowdown in China are expected to keep the top line under pressure. Operating margins are yet to reach the desired levels and the cost of operation is expected to rise as hoteliers are investing more in technology and renovation to keep pace with changing guest preferences. The company’s earnings and revenues are also expected to be negatively impacted by currency headwinds as the dollar continues to weaken.

Zacks Rank and Stocks to Consider

Starwood currently has a Zacks Rank #3 (Hold).

Better-ranked stocks in the same sector include Marriott Vacations Worldwide Corp. (NYSE:VAC) and Intrawest Resorts Holdings, Inc. (NYSE:SNOW) , both having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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