Summit Hotel Properties, Inc. (INN - Free Report) announced the opening of Hyatt House Across From Orlando Universal Resort in Orlando, FL.
Notably, with the inclusion of this hotel in its portfolio, the company expects to generate additional earnings before interest, taxes, depreciation, and amortization for real estate of approximately $1 million during the rest of 2018. The cost of constructing the hotel was $32.7 million or about $194,500 per key, which excluded the price of the land.
This 168-room hotel is located very close to the Universal Orlando Resort and next to the company’s Hyatt Place hotel. It provides easy access to Orlando International Airport. Further, the property is in the vicinity of the new Volcano Bay water park, Walt Disney World Resort, SeaWorld Orlando, ICON Orlando 360 and SEA LIFE Orlando Aquarium. With such a fitting location, the hotel is expected to witness great occupancy and high revenues per available room.
Senior vice president of operations of Hyatt Place and Hyatt House, Susan Santiago informed "Orlando continues to experience record-breaking tourism numbers among leisure travelers and convention attendees. We are confident Hyatt House Across From Orlando Universal Resort will bring a new and dynamic guest experience to the marketplace, and is a great example of our continued focus on growing premium hotels that will attract business and leisure travelers alike."
In fact, lodging and resorts real estate investment trusts (REIT) are the favorable bunch as an improving economy, growth in employment and rise in wages are likely to drive demand for hotels. Particularly, improved business-travel demand, with lower cancellations and higher group spendings, plus strong demand from the leisure division signal brighter prospects for these REITs.
However, amid elevated supply, shares of this Zacks Rank #4 (Sell) stock have underperformed the industry it belongs to. The company’s shares have witnessed a decline of 7.4% while the industry declined 1.4% during the past six months.
Stocks Worth a Look
A few better-ranked stocks from the same space include Arbor Realty Trust (ABR - Free Report) , Columbia Property Trust, Inc. (CXP - Free Report) and Extra Space Storage (EXR - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arbor Realty’s Zacks Consensus Estimate for 2018 funds from operations (FFO) per share has remained unchanged at $1.03 over the past month. Its shares have returned 14.2% in the past three months.
Columbia Property Trust’s FFO per share estimates for 2018 have remained unchanged at $1.46 in the past month. The stock has gained 9.4% during the past three months.
Extra Space Storage’s Zacks Consensus Estimate for 2018 FFO per share has remained unchanged at $4.62 over the past month. Its shares have returned 14.1% in three months’ time.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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