Hyatt Hotels Corporation (H - Free Report) recently announced plans to expand its Hyatt Centric brand footprint in Latin America. In this regard, a Hyatt affiliate has entered into a franchise agreement with Talbot Hotels S.A. for two Hyatt Centric hotel openings in Lima, Peru, and Santiago, Chile.
Notably, the hotels are anticipated to open in early 2018 and will mark the brand’s foray in Peru and Chile.
Hyatt Centric San Isidro Lima will be suitably located on Avenida Basadre in the heart of the San Isidro municipality, one of the upscale localities in Lima. The 254-room hotel is likely to be surrounded by several art galleries, high-end retail boutiques along with distinguished restaurants and bars.
Meanwhile, the 166-room Hyatt Centric Las Condes Santiago will be located in Santiago’s financial district. It will also be in close proximity to Apoquindo Avenue, which is a hub for restaurants, shopping centers and banks.
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.
Hyatt aims to differentiate its brands by providing a distinct experience for different travelers. It further intends to continue gaining global market traction 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.
Launched in 2015, the Hyatt Centric brand is swiftly gaining momentum. It is a brand of full-service lifestyle hotels located in prime destinations and particularly catering to millennial-minded travelers. These additions testify the strong potential of the brand, following the recent openings in Guatemala and Uruguay.
However, shares of Hyatt have slightly underperformed the industry in the last six months. While the industry has gained 12.3%, Hyatt has recorded a gain of 8%.
Moreover, lingering political uncertainties in key international markets along with currency headwinds remain concerns for Hyatt, like other hotel chains including Marriott International, Inc. (MAR - Free Report) , Hilton Worldwide Holdings (HLT - Free Report) and Wyndham Worldwide Corporation .
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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