Hyatt Hotels Corporation ( H Quick Quote H - Free Report) recently announced the addition of Hyatt Centric Jumeirah Dubai in the Middle East. This marks the opening of the 10th Hyatt branded hotel in Dubai and the first Hyatt Centric brand in the UAE. Nestled in the heart of Dubai, the seven-story property features 173 guestrooms, including 27 deluxe rooms and suites. It also comes with amenities like a fitness center, temperature-controlled outdoor pool, spa, meeting and event spaces, lounge and a rooftop bar. The property is in proximity to several leisure attractions such as the Laguna Waterpark, the La Mer beachfront shopping and dining district, Burj Khalifa, and Dubai Mall, Arab marketplaces and the Etihad Museum. Concerning the opening, Britta Leick-Milde, manager of Hyatt Centric Jumeirah Dubai, stated, “With stunning views of the entire Dubai skyline, Hyatt Centric Jumeirah Dubai offers adventure-seeking travelers a window to the destination through a playful interpretation of local culture, art, and points of interest.” Focus On Expansion
Hyatt aims to create distinction between its brands 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.
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. During third-quarter 2021, 20 new hotels (or 4,599 rooms) joined Hyatt's system. This contributed to a 6.9% increase in net rooms from third-quarter 2020 levels. Despite the coronavirus crisis, the company anticipates net unit growth of 6% in 2021. The company is optimistic about continued growth in demand for the upcoming quarter of 2021. Price Performance Image Source: Zacks Investment Research
Coming to price performance, shares of the company have gained 11% so far this year compared with the
industry’s 9.1% growth. The company is benefitting from a gradual increase in demand, new hotel openings and acquisition initiatives. Also, Hyatt’s focus on loyalty program bodes well. The company stated improvements in the Europe, Africa, Middle East and Southwest Asia segments. During third-quarter 2021, RevPAR in the regions surged 162.6% from the year-ago quarter’s level. Going forward, the company anticipates the growth momentum to continue, subject to successful vaccination rollouts and easing of travel restrictions. Earnings estimates for 2022 have moved up in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential. Zacks Rank and Stocks to Consider
Currently, Hyatt carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. Some better-ranked stocks in the Consumer Discretionary sector include Hilton Grand Vacations Inc. ( HGV Quick Quote HGV - Free Report) , Bluegreen Vacations Holding Corporation ( BVH Quick Quote BVH - Free Report) and Camping World Holdings, Inc. ( CWH Quick Quote CWH - Free Report) . Hilton Grand Vacations sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 49.7% so far this year. The Zacks Consensus Estimate for Hilton Grand Vacations’ current financial-year sales and earnings per share (EPS) suggests growth of 189.5% and 158.1%, respectively, from the year-ago period’s levels. Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 152.7% so far this year. The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates a rise of 27.5% and 199.3%, respectively, from the year-ago period’s levels. Camping World carries a Zacks Rank #2 (Buy). The company benefits from the launch of a fresh peer-to-peer RV rental marketplace and a mobile service marketplace. It has been investing heavily in product development. Camping World has a trailing four-quarter earnings surprise of 70.9%, on average. Shares of the company have appreciated 50.3% so far this year. The Zacks Consensus Estimate for CWH’s financial-year sales and EPS suggests growth of 25.9% and 77.6%, respectively, from the year-ago period’s levels.