Starwood to Open Aloft-Element Dual-branded Hotel in Ohio

With the demand for mass market brands increasing, Starwood Hotels & Resorts Worldwide Inc. HOT recently announced plans for a dual-branded hotel development in Columbus, OH, involving its Aloft and Element brands. The hotel, scheduled for an early 2017 opening, will launch both the brands in the state.

The 136-room Aloft Columbus and 123-room Element Columbus will be owned by Indus Hotels. Located next to Ohio State University, the hotel will be a stone's throw away from the business district of Columbus.

The hotels will be located at a convenient distance from Port Columbus International Airport as well as Ohio State Medical Center. Further, the property will be in close proximity to leading attractions such as Ohio Stadium, Nationwide Arena and Greater Columbus Convention Center.

In fact, the increasing demand for the Element brand has prompted Starwood to develop dual-branded hotels featuring these two brands at key urban locations. In 2017, Starwood will open an Aloft–Element dual-branded hotel in the Tobacco Dock region of East London, marking the Element brand's debut in the U.K. Additionally, Starwood recently announced plans for another dual-branded hotel development in Boston involving these two brands, scheduled for a 2016 opening.

The concept of dual-branded hotels has become increasingly more popular with developers and hotel companies like Hilton Worldwide Holdings Inc. HLT and Marriott International, Inc. MAR over the past two years, driven by investors' and travelers' demand for select-service and extended-stay segments. Additionally, the cost saved due to sharing construction and operational expenses acts as an added advantage.

Starwood is also looking to expand its Element brand by doubling its portfolio within the next two years, and Aloft remains on track to open its 100th hotel in 2015.

With its contemporary brands such as Element and Aloft, Starwood is seeking to grab a major share of the Lifestyle sector. By 2015, the demand for mass market lifestyle brands is projected to increase because of their exclusive offerings.

Starwood currently carries a Zacks Rank #2 (Buy). A better-ranked stock in the same sector is Marriott Vacations Worldwide Corp. VAC sporting a Zacks Rank #1 (Strong Buy).