Hyatt Hotels Corporation (H - Free Report) is planning to expand its footprint in Canada. Accordingly, it intends to add 12 new hotels under its Hyatt Place and Hyatt House brand in the next few years. This, in turn, will boost the company’s portfolio and strengthen its fast growing select-service category. Currently, Hyatt has nine hotels operating under this brand in Canada.
Per management, there is a lot of scope for the company’s growth in Canada. In fact, Hyatt strongly believes that the opportunity for properties that offer selected services at a lower price than full-service hotels is particularly compelling for a large spread of consumers. Notably, these services cater to the needs of growing number of local business travelers.
Hyatt, therefore, is growing its select-service presence via third-party construction of new franchised properties, conversion and renovation of existing non-Hyatt properties, and in certain cases, through participation in the development of new managed properties.
By doing so, Hyatt is systematically expanding its global presence and capitalizing on demand for hotels in international markets. Expansion in these markets should help the company gain market share in the hospitality industry, thus strengthening business.
Also, Hyatt plans to differentiate its brands from one another by providing distinct travel experiences. Meanwhile, it is consistently trying to expand the company’s presence worldwide. In this regard, Hyatt’s expansion plans in Asia-Pacific, Europe, Africa, Middle East and Latin America appear promising.
In a year’s time, shares of Hyatt have surged 48.7%, outperforming the industry’s increase of 20.8%. Stocks like Extended Stay America, Inc. (STAY - Free Report) , Marriott Vacations Worldwide Corporation (VAC - Free Report) and Hilton Worldwide Holdings Inc. (HLT - Free Report) , which belong to the same industry, have also rallied 22.5%, 2.1% and 30.2%, respectively, in the same period.
Hyatt has 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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