Hyatt Hotels Corporation (H - Free Report) , the widely recognized global hospitality company, recently announced the official inception of Hyatt Regency Shanghai Global Harbor in Shanghai’s Putuo District. This is the seventh hotel in Shanghai under the Hyatt brand.
Notably, this property is included in the list of 175 Hyatt Regency locations in more than 30 countries and also marks the brand’s third hotel in Shanghai.
Hyatt Regency Shanghai Global Harbor is suitably located near the Zhongshan Park Commercial Area and the Jing’an Temple Commercial Zone, with a direct access to Metro Lines 3, 4 and 13. It is also in close proximity to The National Convention and Exhibition Center (Shanghai), Hongqiao Railway Station and Hongqiao.
The 318-roomed hotel, including 26 suites, encompasses four destination restaurant and lounges along with dynamic indoor and outdoor event and meeting venues, among other amenities. These facilities are expected to cater to the needs of both business and leisure travelers.
It is to be noted that Hyatt stands out for its strong global expansion strategies. In addition to domestic lands, Hyatt is consistently trying to expand its presence in the Asia-Pacific, Europe, Africa, Middle East and Latin America regions. Expansion in these lucrative markets should help the company gain traction in the hospitality industry.
Interestingly, the company has experienced net room growth between 6% and 7% over nine consecutive quarters. With roughly 60 hotel additions expected, 2017 is set be another year of record openings.
Moreover, the company aims to continue gaining market share globally on its solid brand portfolio, and innovative and exceptional personalized service to guests. Hyatt is thus continuously devising new plans to enhance guest experience and raise occupancy in order to survive in a tough economic environment. Additionally, the company intends to continue exploring new avenues apart from traditional hotel in order to evolve with changing tastes and preferences of guests.
Shares of Hyatt have outperformed the industry year to date, gaining 4.9% as compared with the industry’s 1.2%.
Moreover, over the past month, current and next earnings estimates have gone up 10.2% and 6%, respectively, reflecting analyst optimism.
However, macroeconomic concerns like economic/political instability in international markets along with high fluctuations in exchange rate might spell trouble 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 .
Nevertheless, a strong developmental pipeline along with consistent brand establishment and expansion strategies 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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