In a bid to expand in the lucrative Chinese market, leading global hotel chain Hyatt Hotels Corporation (H - Snapshot Report) recently decided to open a Grand Hyatt branded hotel, Grand Hyatt Changsha in Changsha, Hunan Province. In this regard, Hyatt inked a management agreement with Huayuan Property Co., Ltd. The opening marks the debut of Grand Hyatt brand (high-end upscale brand) in Changsha.
China is all set to bring about a recovery in global tourism, and by 2020 it is expected to be the world’s leading travel destination. In order to tap this attractive opportunity, the Zacks Rank #3 (Hold) company is now venturing into various untapped but economically viable Chinese cities.
We believe the opening of the latest 324-room property is a strategic fit as Changsha is a major commercial center in central China. The city is a key entertainment and trading hub of the country, which boosts business as well as leisure travel in the area.
Several other hoteliers including Wyndham Worldwide Corp. (WYN - Analyst Report), Starwood Hotels & Resorts Worldwide Inc. (HOT - Analyst Report) and Marriott International Inc. (MAR - Analyst Report) have made their presence felt in this region.
Grand Hyatt Changsha is strategically positioned at a 268-meter-high complex, The Central, and is in close proximity to Xiangjiang River in downtown Changsha. The hotel will also offer restaurants, swimming pools, a spa and a fitness center.
Hyatt set a new trend in hotel designs with its luxury brand, Grand Hyatt. The brand rides on a high growth trajectory and is currently operating 41 properties worldwide with as many as eight hotels exclusively in China.