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Hyatt (H) Expands Hyatt Centric Brand, Opens Hotel in the U.K.

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Hyatt Hotels Corporation (H - Free Report) continues to focus on unit expansion to drive growth. The company recently announced the opening of Hyatt Centric Cambridge. This new opening marks the brand’s 10th Hyatt hotel and the first Hyatt Centric brand in the U.K.

Notably, the property is situated near the prime center of Cambridge. The hotel is located close to some well-known University colleges, museums and River Cam. The travellers can explore the entire area with electric bicycles available on rent.

The Hotel features 150 guestrooms, of which 57 rooms offer a magnificent courtyard view and 30 of them are deluxe rooms that provide a spacious stay. Guests can be offered four different dining options with a combination of international cuisines. There is a co-working space with free Wi-Fi and all the hotel’s facilities in hand as well as two large conference rooms for up to 30 people.

Concerning the opening, general manager, Hyatt Centric Cambridge, Martin Newbould, stated, “We are thrilled to open the doors of Hyatt Centric Cambridge. Cambridge is one of the most iconic cities in the UK thanks to its magnificent architecture, university buildings and historic center. The hotel’s location allows curious guests to make the most of what the destination has to offer.”

Robust Brand Expansion Across the Globe

Hyatt aims to differentiate its brands by providing distinct travel experiences. Hyatt is also consistently trying to expand its presence worldwide and has plans for 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.

An essential aspect of the company’s riveting growth potential is its strong brand presence and continual expansion in higher growth and under-penetrated markets such as India and China. Apart from these, the company continues to expand in diverse international markets like Australia, Brazil, Germany, the U.K., Indonesia, Japan, Mexico, Saudi Arabia, Singapore, Thailand, Netherlands South Korea, Canada and the Caribbean. The company’s new signings across its brands globally have consistently outpaced openings.

During second-quarter 2021, 27 new hotels (or 4,302 rooms) joined Hyatt's system. This contributed to a 7.1% increase in net rooms from second-quarter 2020 levels. Despite the coronavirus pandemic, the company anticipates net unit growth of 6% in 2021. The company is optimistic about continued growth in demand for the upcoming quarters of 2021.

Currently, Hyatt carries a Zacks Rank #3 (Hold).

Coming to price performance, Hyatt’s shares have surged 43.6% in the past year compared with the Zacks Hotels and Motels industry’s 36.6% rally.

 

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3 Consumer Discretionary Stock Picks

A few better-ranked stocks in the Zacks Consumer Discretionary sector are Stride, Inc. (LRN - Free Report) , La-Z-Boy Incorporated (LZB - Free Report) and Leggett & Platt, Incorporated (LEG - Free Report) . Stride sports a Zacks Rank #1 (Strong Buy), while La-Z-Boy and Leggett carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stride has a three-to-five-year earnings per share growth rate of 20%.

La-Z-Boy has a trailing four-quarter earnings surprise of 20.2%, on average.

Leggett's earnings for 2021 are expected to rise 33.8%.

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