Hyatt Expands with Full-Service Lifestyle Hotels in Europe – December 22, 2017

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Hyatt Hotels Corporation (H Free Report) yesterday announced the expansion of its Hyatt Centric brand in Europe.

Per the press release, Hyatt Centric Gran Via Madrid, the first Hyatt hotel in mainland Spain opened on Dec 20. The 159-room hotel is situated in the heart of the capital city of Madrid along the Gran Via.

It also mentioned that Hyatt Centric La Rosière, opened on Dec 15, 2017, is Hyatt’s first ski resort in Europe and also first Hyatt Centric brand hotel in France. The 69-room hotel is situated at an altitude of 1850 meters.

Launched in 2015, the Hyatt Centric brand is swiftly gaining momentum. It is a brand of full-service lifestyle hotels located in prime destinations and particularly catering to millennial-minded travelers. The latest additions testify the strong potential of the brand.

We observe that Hyatt shares have rallied 32.1% year to date, underperforming the industry’s 26.3% growth.

 

Expansion in Lucrative Markets

Hyatt aims to differentiate its brands by providing a distinct experience for different travelers. It further intends to continue gaining global market traction on solid brand portfolio along with innovative and exceptional personalized service to guests.

The move underscores Hyatt’s consistent efforts to expand presence worldwide and capitalize on demand for hotels in international markets. Expansion in these lucrative markets should help the company gain market share in the hospitality industry, thus boosting business.

Hyatt Hotels Corporation Revenue (TTM)

Our Take

We expect the expansion to boost Hyatt’s Owned and Leased Hotels revenues. In the last reported quarter, this segment revenues were down 2.7% year over year (down 3.2% at constant currency). Comparable owned and leased hotels RevPAR declined 0.5% (down 1.1% at constant currency).

Zacks Rank and Stocks to Consider

Hyatt carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the hotels and motels space include Hilton Worldwide Holdings (HLT Free Report) , Choice Hotels International (CHH Free Report) and Marriott International (MAR Free Report) each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings per share growth rate for Hilton Worldwide, Choice Hotels and Marriott is projected to be 5%, 9.5% and 9.4%, respectively.

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