Marriott set to woo Chinese tourists with Alibaba deal
today Aug 8, 2017
The long-term market opportunity in China is huge for companies targeting both domestic and outbound Chinese travelers, according to Rich Hightower, an equity analyst with Evercore ISI.
Over the next five years, Chinese travelers will take an estimated 700 million trips, the companies said in a statement. Marriott's focus with the joint venture is mostly outbound Chinese travelers, Linnartz said.
Marriott owns the JW Marriott, Ritz-Carlton, Renaissance and Autograph Collection hotel brands, among others. It has nearly 300 hotels in China and around 300 hotels in the pipeline. Twenty-two of its 30 brands have a presence in China.
China's importance to Marriott was heightened after the company's acquisition of Starwood Hotels, which had a larger presence in the country than Marriott, Linnartz said.
Shares of Marriott closed up 1.1 percent on Nasdaq on Monday but fell 1.8 percent after the close following the company's release of second-quarter earnings.
Shares of Alibaba ended up 3.6 percent at $158.84 on Nasdaq.
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