Hyatt Hotels Corporation (H - Free Report) has been strengthening worldwide presence in a bid to maintain its position as the fastest-growing global hospitality company. Recently, it announced the opening of Hyatt Regency Hengqin in Zhuhai, Guangdong Province, China. This new property will offer premium level of service to guests of Hengqin for the first time.
Notably, the 493-roomed property — located in Greater Bay Area of southern China — is in close proximity to the city’s attractions like Lionsgate Entertainment World, National Geographic Explorer, among others. Hyatt Regency Hengqin also offers guests an easy access to the Hong Kong – Zhuhai – Macau Bridge.
Expansion to Drive Growth
Recently, the company announced the opening of Hyatt Regency Grand Reserve Puerto Rico, which marks its first full-service hotel on the island. Also, it announced the opening of Hyatt Regency Portland that marks the company’s first full-service and convention center hotel in the city of Portland.
Hyatt is expanding presence in 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.
It announced further expansion plans in Australia, Brazil, Germany, the U.K., Indonesia, Japan, Mexico, Saudi Arabia, Singapore, Thailand, the Netherlands and others. We believe that the execution of the same will help it to counter competition from the likes of Marriott (MAR - Free Report) and Choice Hotels International, Inc. (CHH - Free Report) .
Meanwhile, the company’s new brand signings have been consistently boosting presence globally. This trend is expected to continue in the current year and beyond. In 2018, Hyatt had registered net room growth of 13.6% on a year-over-year basis. For 2019, it expects unit growth of 7.25-7.75% and 85 new hotel openings.
Hyatt currently carries a Zacks Rank #3 (Hold). In the past six months, shares of the company have gained 15% compared with the industry’s 7.9% growth.
A better-ranked stock in the same space is Hilton Worldwide Holdings Inc. (HLT - 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.
Hilton reported better-than expected earnings in all the trailing four quarters, with the average being 6.9%.
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