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Hyatt (H) on Expansion Spree, to Open Hotel in Pakistan

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Hyatt Hotels Corporation (H - Free Report) continues to expand its presence worldwide. Hyatt’s affiliate has reached a franchise agreement with FP Global (Private) Limited for Hyatt Regency Lahore DHA. This will mark the first Hyatt-branded hotel in Pakistan, portraying a consequential step taken by Hyatt to expand its brand portfolio in Southwest Asia. The hotel is expected to commence business in 2024and be operated by Valor Hospitality Partners.

The 94-guestroom hotel, situated in Defence Housing Authority Phase 6 (DHA-6) provides a range of features like six food and beverage outlets, fitness centers and separate swimming pools for male and female guests and 800 square meters of flexible events and meeting space, including a ballroom.The property is nearby Allama Iqbal International Airport and will provide an ideal base for tourists to explore Pakistan’s cultural and vibrant attractions like Badshahi Mosque, Shalimar Gardens and Lahore Fort.

With regard to the announcement of the opening of the hotel, Sunjae Sharma, the Managing Director, Southwest Asia, Hyatt India Consultancy Pvt Ltd. said, “We look forward to collaborating with the FP Global (Private) Limited team and Valor Hospitality Partners to unveil the first Hyatt-branded hotel in Pakistan with Hyatt Regency Lahore DHA.”

Price Performance

Shares of Hyatt have rallied 34.3% in the past six months, outperforming the Zacks Hotels and Motels industry’s growth of 13.6%.

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The company is benefiting from a rise in leisure transient demand, the easing of travel restrictions and ramped-up airline capacity. Also, its focus on new hotel openings and acquisition initiatives bodes well.

As the pandemic has been subsiding, travel restrictions have eased. There has also been an increase in cross-border travel. Strength in short-term bookings, coupled with strong food and beverage spending, is likely to aid Hyatt'sperformance in the upcoming periods.

Recently, the company announced its plan to expand the Independent Collection brands’ footprint by 2025. Its Independent Collection brands will have 11 new hotels in their portfolios by 2025. The company will open its first property in San Miguel de Allende, Mexico, and the first Hyatt-branded hotel in Helsinki, Finland. Given the easing of travel restrictions in the Asia Pacific region and strong leisure travel demand, the company anticipates unit growth in 2022 to increase approximately 6.5% on a net-room basis.

Zacks Rank & Key Picks

Hyatt currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the Zacks Consumer Discretionary sector are World Wrestling Entertainment, Inc. , BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) and Manchester United plc (MANU - Free Report) .

World Wrestling Entertainment currently sports a Zacks Rank #1. WWE delivered a four-quarter average earnings surprise of 25.2%. The company’s shares have risen 69.5% in the past year.

The Zacks Consensus Estimate for WWE’s 2023 sales and EPS indicates growth of 4.9% and 10.7%, respectively, compared with the 2022 estimates.

BJ's Wholesale sports a Zacks Rank #1. The stock of BJ has risen 13.4% in the past year.

The Zacks Consensus Estimate for BJ’s 2024 sales and EPS implies growth of 5.6% and 0.5%, respectively, from the year-ago levels.

Manchester United sports a Zacks Rank #1. MANU delivered a trailing four-quarter earnings surprise of 34.4%, on average. Shares of the company have surged 65.9% in the past year.  

The Zacks Consensus Estimate for MANU’s 2024 sales and EPS indicates a rise of 11.4% and 27.8%, respectively, from the year-ago levels.


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