Hyatt Hotels Corporation (H) has announced plans to expand its upscale select service hotel category brand — Hyatt Place — winning more than 100 contracts across 21 countries. Out of these, 15 will be in new markets for the brand. Currently, there are more than 200 properties under the Hyatt Place brand in 9 countries.
The brand operates mainly in the Canadian and U.S. markets, especially in the suburban and airport locations. However, with the new contracts the brand is venturing into urban regions as well. These locations include New York City, Chicago, Houston, Denver and Washington, D.C. Further, the brand will debut in business districts, including Asheville, North Carolina and Edmonton, Canada.
The brand also performed well in college towns and has locations near Western Kentucky University, Michigan State University, University of Georgia and University of South Carolina in the pipeline. Apart from these, the brand has a pipeline of mixed use development hotels, which combines residential, commercial, cultural, institutional, or industrial projects at Hyatt Place Baltimore/Inner Harbor, Hyatt Place Charleston/Historic District and Hyatt Place Boulder.
The brand also continues its expansion in Latin America with 11 contracts in countries like Brazil, Colombia, El Salvador, Guatemala, Honduras, Mexico, Nicaragua and in Panama. Additionally, the brand is seeking to expand in European countries like England, Armenia and Switzerland as well as in the African regions like Morocco.
Hyatt is also expanding into the rapidly developing countries in Middle East and Southwest Asia in locations such as Pune, Gurgaon, Hyderabad, Goa, New Delhi, and Bangalore in India; Riyadh, Jeddah and Makkah in Saudi Arabia; and Dubai, United Arab Emirates. China also remains a major market for the brand with hotels coming up in locations including Shenzhen, Shanghai, Wuxi, Tianjin and Beijing in China, in addition to Seoul, South Korea and Bangkok in Thailand.
Over the past few years, hoteliers like Starwood Hotels & Resorts Worldwide Inc. (HOT), Intercontinental Hotels Group plc (IHG) and Marriott International, Inc. (MAR) have been focusing on expanding their select-service brands in the emerging markets. In fact, the emerging markets have a forecasted growth rate of more than 5%, higher than the mature markets. Additionally, lifestyle brands, like Hyatt Place, have consistently outperformed the mass market brands and therefore, hoteliers are continuously seeking to expand these brands.
Hyatt, currently, carries a Zacks Rank #3 (Hold).
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- Hyatt Hotels Corporation