Hyatt Hotels Corporation (H - Free Report) announced the re-branding of Hyatt Regency Hangzhou as Grand Hyatt Hangzhou after 18 months of remodeling. Notably, this marks the first Grand Hyatt hotel in Zhejiang province and the 15th in China.
This 388-room hotel will have luxury accommodations along with a spectacular lake view. It has 35,520 square feet of event space with modern audiovisual equipment and facilities. According to Hyatt, this new property will have the best conference and banqueting facilities in the Zhejiang capital.
A glimpse at this company's price trend reveals that it has outperformed the industry in a year’s time. Shares of Hyatt have lost 7.4% compared with the industry’s collective decline of 27.3%.
Expansion Strategies in Place
Hyatt’s continued expansion strategies across the globe will continue to drive growth. It further intends to open properties in the Asia Pacific, Europe, Africa, the Middle East and Latin America. Expansion in these markets is expected to help the company gain market share in the hospitality industry and strengthen its business.
Meanwhile, the Zacks Rank #3 (Hold) company’s new signings across its brands worldwide have consistently outpaced Hyatt’s openings. This trend is expected to continue in 2019. In third-quarter 2018, Hyatt registered net room growth of 7.6% on a year-over-year basis, which marked the 14th successive quarter of recording growth above 6%. Also, the company’s development pipeline grew roughly 6% in the quarter compared with the prior-year quarter figure. For 2018, it expects unit growth (on a net room basis) to be roughly 6.5-7%, reflecting 60 hotel openings.
We believe Hyatt’s relentless expansion into various markets is an endeavor to mitigate intense competition in the industry. The company is constantly subjected to competitive pressure from the likes of Marriott (MAR - Free Report) and Hilton (HLT - Free Report) , each with its own aggressive expansion strategy in place.
Stock to Consider
A better-ranked stock in the same space is Belmond Ltd. , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Belmond has an impressive long-term earnings growth rate of 15%.
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