Leading global hotel chain, Hyatt Hotels Corporation (H - Free Report) , is consistently trying to expand its presence worldwide. In a concerted effort to strengthen its portfolio in Africa, the hotelier is trying to develop new properties in the country under different brands.
Recently, Hyatt has declared the launch of two properties under Park Hyatt and Hyatt Regency brands in Tanzania, Africa. In this regard, Hyatt has inked a management deal with ASB Holdings Limited – a Dubai-based holding company. The two properties – Park Hyatt Zanzibar and Hyatt Regency Arusha – are slated to open for business in Jan 2014 and 2016, respectively.
Tanzania, with its natural and historical attractions, is becoming one of the world’s leading tourist destinations. Nearly 1 million tourists visited the country in 2012. These factors justify Starwood’s decision to expand in Tanzania.
Located on the Zanzibar City or Stone Town – a UNESCO world heritage site – Park Hyatt Zanzibar is close to the seashore. The hotel features 70 guestrooms along with other amenities.
Hyatt Regency Arusha is positioned at central Arusha in northern Tanzania. Comprising 144 guestrooms, the hotel’s closeness to Tarangire National Park and Mount Kilimanjaro will enable it to attract business as well as leisure travelers.
Africa tourism industry is a major revenue driver for many nations of the continent. According to United Nations World Tourism Organization (UNWTO), the tourism industry in Africa grew at an average rate of 4% during the first half of 2013.
Presently, the company boasts six properties in Africa, of which one is in Tanzania. Apart from the two openings, three more properties – Park Hyatt Marrakech and Hyatt Place Taghazout in Morocco, and Hyatt Dakar in Senegal – are in the company’s development pipeline. Both Park Hyatt Marrakech and Hyatt Place Taghazout are slated for a 2014 opening, while Hyatt Dakar is scheduled to open for business in 2016.
Africa has been among the key markets for another hotelier, Starwood Hotels & Resorts Worldwide Inc. , as well. The company currently has around 40 hotels in 15 African countries.
Hyatt holds a Zacks Rank #2 (Buy). Some other hoteliers that are going to perform well include Intercontinental Hotels Group plc (IHG - Free Report) and China Lodging Group, Limited (HTHT - Free Report) . While Intercontinental Hotels carries a Zacks Rank #1 (Strong Buy), China Lodging holds a Zacks Rank #2.