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Hyatt Andaz Forays in Southeast Asia, Opens in Singapore

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Hyatt Hotels Corporation (H - Free Report) has large-scale expansion and development plans in Asia-Pacific, Europe, Africa, Middle East and Latin America to gain further traction in the hospitality industry.

Hyatt affiliate, Andaz recently announced the opening of Andaz Singapore, which marks the first Andaz hotel in Southeast Asia and the brand’s 17th opening.

Offering 342 contemporary guestrooms, including 26 suites, Andaz Singapore is located in close proximity to the Changi Airport and Central Business District.

Notably, Singapore’s tourism industry has seen solid growth in first-quarter 2017. According to the Singapore Tourism Board (STB), a leading economic development agency in tourism and one of the country’s key service sectors, Tourism Receipts (TR) grew 15% to $6.4 billion in the quarter.

Moreover, for 2017, STB expects TR in the range of $25.1-$25.8 billion, reflecting 1% to 4% growth from last year. Thus, Singapore offers Hyatt a lot of scope for expansion.

However, the company will face tough competition from hotel chains like Marriott International, Inc. (MAR - Free Report) , Wyndham Worldwide Corporation and Hilton Worldwide Holdings, Inc. (HLT - Free Report) that are looking to tap into such markets. Lingering political uncertainties in some key operating regions and currency headwinds might also impede revenue growth.

Nevertheless, the company is poised to grow on a strong developmental pipeline along with consistent brand establishment and expansion strategies.

Notably, year to date, shares of Hyatt have recorded a gain of 26.6%, outperforming its industry’s 17.1%.


 

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

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