Back to top

Analyst Blog

Zacks Equity Research

Hyatt Regency Sets Bangkok Footprint

HOT MAR H

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

In order to beef up its Asian portfolio, Hyatt Hotels Corporation (H - Snapshot Report) is all set to introduce its first Hyatt Regency branded property in Bangkok, Thailand in association with a local real estate development company titled Grande Asset Hotels and Property Public Company Limited.  The property is slated for a 2017 opening. Located in the heart of Bangkok, the hotel will be the integral part of a mixed-use construction comprising a shopping center and an upscale residential tower.

The upcoming Hyatt Regency will feature 300 guest rooms, 26 suites and 10,700 square feet of meeting space along with many other amenities. Further, the hotel will be in close proximity to upscale residences, offices of major international companies and premium retail stores making it apt for both business and luxury travelers.

We believe that Bangkok, being a major tourism hub as well as the capital of Thailand, is a strategic fit for new hotels. The hotelier is all set to tap the Thai market as it attracts tourists from all over the world. Amongst them, Malaysia, China, Russia and Japan are the important sources of visitors, according to a global market research company Euromonitor.

As per Euromonitor, Thailand’s rich cultural value and striking heritage sites are the other attractions for tourism. Last but not the least, the country’s value-sensitive nature for shopping, dining and lodging, catch the attention of a majority of the tourists. Tourism Authority of Thailand also remains very active in endorsing the country by frequently arranging tourism exhibitions and other promotional events.

To shift its focus from the rather saturated developed markets, Hyatt is currently inclined towards the faster growing Asia-Pacific region to benefit from the increase in demand for hotels. The company currently operates more than 50 hotels in the Asia-Pacific region. Apart from the recently opened Hyatt Regency, the company has one of its other brands, Grand Hyatt, operating in Bangkok.

Hyatt’s major competitors Starwood Hotels & Resorts Worldwide Inc. (HOT - Analyst Report) and Marriott International Inc. (MAR - Analyst Report) also have a considerable presence in Bangkok. With the rapid entry of global chains as well as local brands, the lodging supply scenario is strengthening in Bangkok, which might affect the average daily rate for the hoteliers, going forward.  

Hyatt currently retains a Zacks #3 Rank, which translates into a short-term 'Hold' rating. We also reiterate our long-term 'Neutral' recommendation on the stock.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%