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Hyatt (H) Expands in Florida With New Destination Hotel

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In a bid to strengthen its portfolio in Florida, Hyatt Hotels Corporation’s (H - Free Report) affiliate recently entered into a franchise agreement with Banyan Cay Development to develop Banyan Cay Resort & Golf. Processed under Hyatt’s Destination Hotels brand, the company expects to open the property by late 2021.

Located near the West Palm Beach International Airport, the hotel comprises 150 guestrooms and 22 private resort villas. The private villa comes with bell service, daily housekeeping, room service, private kitchens along with living and dining areas.

Meanwhile, David Tarr, senior vice president, development, Americas, Hyatt, stated, “At Hyatt, we prioritize thoughtful growth in locations that matter most to our guests, World of Hyatt members and customers, and we are excited to introduce Hyatt’s high-quality and distinct experiences to West Palm Beach.”

Increased Focus on Expansion

Hyatt has been witnessing a rise in demand for some of its drive-to resorts and leisure destinations, such as Lake Tahoe, NV; Lost Pines outside of Austin, TX; and Huntington Beach, CA. Also, it has been consistently trying to expand its presence worldwide in order to gain market share in the hospitality industry.

During the third quarter of 2020, the company announced the opening of 18 Hyatt Place or Hyatt House hotels. Meanwhile, the company re-entered the New Zealand market with the opening of Park Hyatt Auckland. Also, it unveiled Andaz Xiamen, marking the second Andaz hotel in China. In October, the company opened Hyatt Centric Center City Philadelphia, Grand Hyatt Nashville and Hyatt Regency West Hanoi.

Notably, the company opened more than 4,300 rooms during the third quarter, reflecting an increase of 10% year over year. Furthermore, it remains optimistic about full-service growth opportunities, comprising both newbuilds and conversions globally.

So far this year, shares of the company have plummeted 21.8% compared with the industry’s decline of 11.9%.

Hyatt — which shares space with Hilton Worldwide Holdings Inc. (HLT - Free Report) , Choice Hotels International, Inc. (CHH - Free Report) and Marriott Vacations Worldwide Corporation (VAC - Free Report) in the Zacks Hotels and Motels industry — has a Zacks Rank #4 (Sell), at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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