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Hyatt (H) on Expansion Spree, Strengthens Presence in Panama
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Hyatt Hotels Corporation (H - Free Report) recently announced the addition of Hyatt Regency Panama City to its Hyatt Regency portfolio in Panama. This marks the brand's first hotel and the company’s third property in the region. Post the renovations, the company expects to open the hotel by summer 2024.
Located in the heart of Panama City’s business district, the hotel comprises 382 guestrooms, a gym, meeting rooms and dining spaces. The property offers convenient access to cinemas, restaurants, retailers and recreational activities. It is also in proximity to attractions such as the Panama Canal, the Casco Viejo neighborhood and the Fuerte Amador cruise terminal.
The management remains optimistic concerning the hotel opening and brand growth strategy in the Latin America and Caribbean region. Attributes of robust travel demand and property renovations (tailored to the needs of both business and leisure travelers) are likely to pave a path for growth in the upcoming periods.
Focus On Expansion
Hyatt aims to differentiate its brands by providing distinct travel experiences. It is also consistently trying to expand its presence worldwide and plans to expand in Asia-Pacific, Europe, Africa, the Middle East and Latin America. Expansion in these markets will likely help the company gain market share in the hospitality industry and boost business.
During the second quarter of 2023, 24 new hotels (or 5,927 rooms) joined Hyatt's system. As of Jun 30, 2023, Hyatt had a pipeline of executed management or franchise contracts of approximately 585 hotels (or 119,000 rooms).
Going forward, it remains optimistic about full-service growth opportunities, comprising both newbuilds and conversions globally. In 2023, the company anticipates unit growth to increase by approximately 6% on a net-room basis.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of the company have gained 16.3% compared with the industry’s 15.6% growth. The company benefits from solid leisure transient demand, recovery in business travel demand and a favorable pricing environment. Furthermore, strong ALG segment performance, expansion initiatives and loyalty program bode well. Going forward, the company emphasizes on expansion initiatives and the extended-stay segment in the Americas to drive growth.
However, stiff competition and volatile macroeconomic scenarios are a concern. Earnings estimates for 2023 have decreased in the past 30 days, depicting analysts’ concern regarding the stock’s growth potential.
Zacks Rank & Other Key Picks
Hyatt Hotels currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 54.5% and 180.3%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 39.1% on average. Shares of SKX have increased 35.1% in the past year.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates a rise of 8.7% and 42%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2 (Buy). OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased 27.2% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
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Hyatt (H) on Expansion Spree, Strengthens Presence in Panama
Hyatt Hotels Corporation (H - Free Report) recently announced the addition of Hyatt Regency Panama City to its Hyatt Regency portfolio in Panama. This marks the brand's first hotel and the company’s third property in the region. Post the renovations, the company expects to open the hotel by summer 2024.
Located in the heart of Panama City’s business district, the hotel comprises 382 guestrooms, a gym, meeting rooms and dining spaces. The property offers convenient access to cinemas, restaurants, retailers and recreational activities. It is also in proximity to attractions such as the Panama Canal, the Casco Viejo neighborhood and the Fuerte Amador cruise terminal.
The management remains optimistic concerning the hotel opening and brand growth strategy in the Latin America and Caribbean region. Attributes of robust travel demand and property renovations (tailored to the needs of both business and leisure travelers) are likely to pave a path for growth in the upcoming periods.
Focus On Expansion
Hyatt aims to differentiate its brands by providing distinct travel experiences. It is also consistently trying to expand its presence worldwide and plans to expand in Asia-Pacific, Europe, Africa, the Middle East and Latin America. Expansion in these markets will likely help the company gain market share in the hospitality industry and boost business.
During the second quarter of 2023, 24 new hotels (or 5,927 rooms) joined Hyatt's system. As of Jun 30, 2023, Hyatt had a pipeline of executed management or franchise contracts of approximately 585 hotels (or 119,000 rooms).
Going forward, it remains optimistic about full-service growth opportunities, comprising both newbuilds and conversions globally. In 2023, the company anticipates unit growth to increase by approximately 6% on a net-room basis.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of the company have gained 16.3% compared with the industry’s 15.6% growth. The company benefits from solid leisure transient demand, recovery in business travel demand and a favorable pricing environment. Furthermore, strong ALG segment performance, expansion initiatives and loyalty program bode well. Going forward, the company emphasizes on expansion initiatives and the extended-stay segment in the Americas to drive growth.
However, stiff competition and volatile macroeconomic scenarios are a concern. Earnings estimates for 2023 have decreased in the past 30 days, depicting analysts’ concern regarding the stock’s growth potential.
Zacks Rank & Other Key Picks
Hyatt Hotels currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. (RCL - Free Report) sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.5% on average. Shares of RCL have gained 102.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 54.5% and 180.3%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 39.1% on average. Shares of SKX have increased 35.1% in the past year.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates a rise of 8.7% and 42%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2 (Buy). OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased 27.2% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 44.5% and 117.9%, respectively, from the year-ago period’s levels.