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Leading global hotel chain, Hyatt Hotels Corporation (H - Snapshot Report) recently declared the acquisition of The Driskill Hotel under Destination Hotels & Resorts brand in Austin, Texas. This property was purchased from Lowe Enterprises Investors for an upfront payment of $85 million.

Post the acquisition, Hyatt is now managing the operation of the hotel. Established in 1886, The Driskill Hotel is ideally positioned near the Central Business District, the Texas State Capitol and the Austin Convention Center. The hotel is also adjacent to the 6th Street Entertainment District, the Warehouse District and 2nd Street Retail District. The Driskill Hotel’s comprehensive services, high historical values and ideal location make it a lucrative acquisition target.

Hyatt has taken a two-year refurbishment initiative to restore the acquired property with 189 guestrooms. Hyatt is also planning to invest nearly $8 million for this renovation.

With this acquisition, Hyatt will strengthen its position in the rapidly-growing market of Austin. Hyatt has also recently launched a Hyatt Place branded hotel, Hyatt Place Austin Downtown in Austin.

However, the market at Austin is not totally devoid of competition. To tap the growing potential, many other hoteliers including Marriott International Inc. (MAR - Analyst Report) and Starwood Hotels & Resorts Worldwide Inc. (HOT - Analyst Report) are also making their presence felt in the market.

Hyatt currently owns and operates 500 properties across 46 countries. At the end of Dec 31, 2012, Hyatt penned a record number of franchise and management agreements to develop 200 hotels worldwide.

Hyatt currently retains a Zacks Rank #3 (Hold). Another hotel stock worth a look is Choice Hotels International Inc. (CHH - Snapshot Report) which carries a Zacks Rank #2 (Buy).

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