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Hyatt (H) Strengthens Presence in California With New Hotels

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Hyatt Hotels Corporation (H - Free Report) recently announced the opening of Mission Pacific Hotel (a JdV by Hyatt hotel) in California. Moreover, the company stated that the opening of The Seabird Resort (a Destination by Hyatt hotel) has been scheduled on May 25.

Nonetheless, the hotels showcase adjacent boutique-style properties underscoring Oceanside Beach’s appeal as a sought-after Southern California travel destination.

Located on 700 feet of beachfront property in Oceanside Beach, CA (in North County San Diego), Mission Pacific Hotel comprises 161 high-touch guest rooms featuring vibrant beachfront sanctuary. It also comes with amenities such as fitness center, outdoor dining, library and rooftop pool and bar. Meanwhile, The Seabird Resort comes with a 226-room with amenities such as poolside cabana, spa and beauty lounge, library as well as ocean-view meeting and celebration spaces (of approximately 20,000 square feet).

With respect to the launch, Michael Stephens, area managing director of Mission Pacific Hotel and The Seabird Resort, stated, “We are thrilled to welcome locals and travelers alike to Oceanside Beach. This has been a passion project for our team and every touchpoint of the guest experience at each of the properties and all the restaurants has been considered.”

Focus On Expansion

Hyatt aims to differentiate its brands from one another by providing distinct travel experiences. It is also consistently trying to expand presence worldwide and plans to expand in Asia-Pacific, Europe, Africa, Middle East and Latin America. Expansion in these markets will likely help the company gain market share in the hospitality industry and boost business.

Meanwhile, the company’s new signings across its brands globally have consistently outpaced openings. In 2018, 2019 and 2020, Hyatt registered net room growth of 13.6%, 7.4% and 5.2% on a year-over-year basis, respectively. Despite the coronavirus pandemic, the company anticipates net unit growth of 5% in 2021. The company is optimistic about the continued growth in demand for the upcoming quarters of 2021.

Price Performance

Shares of Hyatt have gained 2.7% so far this year compared with the industry’s 8.3% growth. The dismal performance is mainly attributable to the coronavirus pandemic. This along with travel restrictions and other containment efforts have negatively impacted the company. Although the company is witnessing sequential improvement in RevPAR, it is still below pre-pandemic levels.

The company announced that the first half of 2021 will remain challenging but it expects meaningful recovery in the second half of 2021. Demand is likely to increase in the second half owing to improved travel sentiments and widening vaccine availability. Focus on unit expansion and loyalty program are likely to benefit the company, going forward. Meanwhile, earnings estimates for 2022 have moved up in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential.

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

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