In order to gear up its spread in Thailand, Hyatt Hotels Corporation (H - Free Report) announced the debut of a Hyatt Place branded hotel in Bangkok in collaboration with a local real estate firm Pioneer Property Company Limited (PPC). The new property named Hyatt Place Bangkok, Sukhumvit is slated to open for business in 2017.
Lately, Hyatt Hotels is strategizing to beef up its portfolio in Thailand through introduction of its top class brands in the country. On previous occasion, Hyatt Hotels declared the debut of two other brands in the Thai city with the Park Hyatt Bangkok and Hyatt Regency Bangkok, Sukhumvit. The properties will come up in 2014 and 2017, respectively.
Hyatt Place, the upscale select service brand of Hyatt Hotel, offers casual hospitality in a high-tech and modern environment. The brand appeals to both multi-tasking business travelers and leisure travelers. Hyatt Place has enjoyed huge success in the U.S. and expects to cater to the increasing number of domestic and international travelers to Bangkok.
Positioned on Sukhumvit Road Soi 24, Hyatt Place Bangkok, Sukhumvit will offer 220 guest rooms and seven studio suites. The hotel is conveniently connected to the business, entertainment and dining districts of Bangkok.
Bangkok, the capital city of Thailand, is among the world’s top tourist destinations. As the gateway to Thailand the city is a strategic fit for new hotels. Hyatt Hotels is all set to tap the Thai market as it attracts tourists worldwide. According to a real estate services company CBRE Group, Inc. , Thailand’s tourism market continued to post strongly in the second quarter of 2012 with Bangkok being the major gainer. International tourist arrivals increased by 12% year over year to 4.7 million, the majority .
Thailand’s rich cultural value and striking heritage sites are the other attractions for tourism. Besides, the country’s value-sensitive shopping, dining and lodging have drawn attention through exhibitions and promotional events arranged by Tourism Authority of Thailand (TAT). TAT expects over 20 million international visitors to Thailand in 2012 with possible increase in numbers if the international economic and geopolitical situation remains steady.
Hyatt Hotels’ major rivals Starwood Hotels & Resorts Worldwide Inc. and Marriott International Inc. (MAR - Free Report) have a considerable presence in Thailand. With the rapid entry of global chains as well as local brands, the lodging supply scenario is strengthening in major Thai cities. This might drive down the average daily rate for hoteliers, going forward ??? a fact the company needs to be wary of.
To shift its focus from the rather saturated developed markets, Hyatt Hotels is currently inclined towards the faster growing Asia-Pacific region to benefit from the increase in demand for hotels. The company currently operates more than 50 hotels in the Asia-Pacific. Hyatt Hotels presently has two other properties in Thailand ??? Hyatt Regency Hua Hin and Grand Hyatt Erawan Bangkok.
We currently have long-term 'Neutral' recommendation on Hyatt Hotels. Also, its carries a short-term Zacks #3 Rank (Hold).