Given the improving economic indicators in the U.S., demand for hotels has started to grow. Going forward, though increasing supply growth is expected to limit occupancy levels, overall demand in the U.S. is anticipated to remain solid on the back of firming group travel.
Leading hotelier, Hyatt Hotels Corporation (H - Free Report) is also undertaking various steps to cash in on this opportunity. Recently, the company unveiled its newest property – Hyatt Regency Lake Washington at Seattle’s Southport – which is the only waterfront hotel within 10 miles of Seattle-Tacoma International Airport.
The 347-roomed hotel encompasses 60,000-square-feet of indoor and outdoor event spaces, a spa, and two food and beverage outlets, among other amenities. In fact, this property forms part of over 175 Hyatt Regency locations in more than 30 countries and also marks the brand’s third hotel in Seattle area.
Meanwhile, it is to be noted that Hyatt is consistently trying to expand its presence worldwide and capitalize on demand for hotels in international markets, in addition to domestic lands. Expansion in these lucrative markets should help the company gain market share in the hospitality industry, thus boosting its business.
The company aims to continue gaining market share globally on its solid brand portfolio, and innovative and exceptional personalized service to guests. Furthermore, its remodeled loyalty program as well as innovative offerings should boost occupancy.
In fact, the extension of the Hyatt brand beyond traditional hotel stays, into the swiftly growing wellness space with the Miraval acquisition also bodes well. Going forward, the company aims to build a greater depth of proficiency in wellness and mindfulness that can be extended to the company’s hotel business.
However, shares of Hyatt have underperformed the Zacks categorized Hotels & Motels industry in the last six months. While the industry has gained 12.7%, Hyatt has declined 0.4%. Additionally, earnings estimates for current quarter and current year have moved slightly down over the last two months, reflecting anxiety in analysts’ minds.
Lingering political uncertainties in key international markets along with currency headwinds remain concerns for Hyatt as well as most of the other hotel chains including Marriott International, Inc. (MAR - Free Report) , Hilton Worldwide Holdings (HLT - Free Report) and Wyndham Worldwide Corporation (WYN - Free Report) .
Nevertheless, a strong developmental pipeline, consistent expansion plans and a differentiated brand portfolio should continue driving growth for this Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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