In a bid to expand in the lucrative Japanese market, Hyatt Hotels Corporation (H - Free Report) announced that it has agreed to open Andaz Tokyo, the first Andaz hotel in the region in collaboration with Mori Building Co., Ltd. The new five-star property is due to be opened in the summer of 2014.
Andaz Tokyo’s location at Toranomon (Minato Ward of Tokyo) is a strategic one as it falls between Shiodome district and the Akasaka and Roppongi areas. Toranomon is considered to be an upcoming major business center hub of Japan. Tokyo Metropolitan Government considers it as a Special Zone for Asian Headquarters. Andaz Tokyo, with its basic and modern amenities, will aim to cater to the needs of the multinational companies situated in Toranomon. The hotel with 164-guest rooms and suites will also offer the luxury of spa and restaurant facilities.
Andaz is one of the leading brands of Hyatt Hotels and it is currently on a high growth trajectory. As of now, the company own nine hotels under the Andaz brand across four countries.
Apart from the new hotel, there are three other Hyatt-branded hotels in Tokyo and Hyatt already owns eight hotels in Japan. The company has already opened a five-star hotel, Grand Hyatt Tokyo in Japan in association with Mori Building affiliates.
On December 12, Hyatt Hotels had announced the debut of a Hyatt Place branded hotel in Bangkok in collaboration with local real estate firm Pioneer Property Company Limited (PPC). The new property - Hyatt Place Bangkok, Sukhumvit, is slated to open for business in 2017. Now, the launch of Andaz Tokyo will further strengthen the company’s position in the growing Asian market.
Separately, Hyatt Hotels’ major rivals including Starwood Hotels & Resorts Worldwide Inc. (HOT) and Marriott International Inc. (MAR) are also trying to extend their presence in Asia.
We presently have a long-term Neutral recommendation on the company’s stock. However, the company carries a Zacks #4 Rank (short-term Sell rating).