Thursday, April 14, 2011

Hotels Marriot (MAR) (HOT) (WYN) Looking to India for Growth

The emerging middle class in India with increasing expendable income is becoming a target for the hospitality industry, including hotel chains Marriot International (NYSE:MAR), Starwood Hotels & Resorts Worldwide (NYSE:HOT) and Wyndham Worldwide (NYSE:WYN).

Marriot has already entered into a preliminary deal with India's SAMHI Hotels to expand its Fairfield brand in India.

There is no doubt a lot of potential, but the companies must be patient, as the business atmosphere in India can be stifling and frustrating, although the country is slowing becoming more investment-friendly.

Infrastructure is also being improved and labor is inexpensive at this time.

Gross domestic product in India is growing at an 8 percent rate, and that should be sustainable for years.

Marriot was trading at $34.04, down $0.15, or 0.44 percent, as of 12:44 PM EDT. Starwood was at $56.53, down $0.51, or 0.89 percent. Wyndham was trading at $31.02, falling $0.41, or 1.30 percent.

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