In a bid to maintain its position as the fastest-growing global hospitality company, Hyatt Hotels Corporation (H - Free Report) has been strengthening its presence worldwide. Recently, the company announced the opening of Hyatt Regency Portland. This will mark the company’s first full-service and convention center hotel in the city of Portland. Also, the new property is being developed by Mortenson, a leading Portland-based developer in collaboration with ESG Architects.
Notably, the 600-room hotel is situated at the heart of Portland and is a few minutes away from the newly renovated Oregon Convention Center, local sport and concert arena Moda Center, as well as high-end eateries and breweries in the growing Lloyd neighborhood. Hyatt Regency Portland at the Oregon Convention Center is also in close proximity to Portland’s MAX Light Rail, downtown Portland, the quirky Eastside, and Portland International Airport (PDX).
Expansion to Drive Growth
Recently the company’s affiliate inked a deal to develop its first Grand Hansa, The Unbound Collection-branded Hotel in Finland. It also opened its first Andaz-branded hotel in Dubai, Andaz Dubai The Palm.
Hyatt is also expanding its presence in the diverse international markets including Asia Pacific, Europe, Africa, the Middle East and Latin America. As of Sep 30, 2019, the company's portfolio included more than 875 properties in 60 countries across six continents.
The company has announced further expansion plans in Australia, Brazil, Germany, the U.K., Indonesia, Japan, Mexico, Saudi Arabia, Singapore, Thailand, the Netherlands and others. We believe this will help it to counter competition from the likes of Marriott (MAR - Free Report) and Hilton (HLT - Free Report) .
Meanwhile, the company’s new brand signings have consistently boosted its presence globally. This trend is expected to continue in the current year and beyond. In 2018, Hyatt registered net room growth of 13.6% on a year-over-year basis. For 2019, it expects unit growth of 7.25-7.75%, suggesting 85 new hotel openings.
Hyatt currently carries a Zacks Rank #3 (Hold). In the past six months, shares of Hyatt have gained 17.1% compared with the industry’s 9.5% growth.
A Key Pick
A better-ranked stock worth considering in the same space is Civeo Corporation (CVEO - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Civeo reported better-than-expected earnings in three of the trailing four quarters, the beat being 42.5%, on average.
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