Hyatt Hotels Corporation H announced plans to expand the footprint of its Hyatt Centric brand with new hotels in downtown Memphis, TN., downtown Nashville, TN., and downtown Austin, TX. These additions testify the brand’s solid potential. The hotels are expected to open in 2020 and 2021. The company has 26 properties in 11 countries that includes Chile, France, India, Japan, Spain and more.
Hyatt Centric Beale Street Memphis will be developed by a joint venture between affiliates of Hyatt and Carlisle Hotels, Inc. The construction of this 227-room hotel is likely to start in second-quarter 2019 and expected to open by the end of 2020. Meanwhile, Hyatt Centric Downtown Nashville will be developed by a joint venture between Hyatt and C. B. Ragland of Nashville. This 252-room hotel is slated to open by second-quarter 2021.
Hyatt Centric hotel in downtown Austin is anticipated to open in mid-2020 and will have 233 rooms. This hotel will be solely owned by Hyatt.
The company has already opened Hyatt Centric hotels in Los Angeles, Philadelphia, downtown Portland, Ore; Midtown Atlanta; Bangalore, India; Goa, India; Lima, Peru; Brickell, Miami; and Santiago, Chile.
Expansion Strategy Bodes Well
Hyatt aims to differentiate its brands from one another by providing distinct travel experiences. The company is also consistently trying to expand its presence worldwide and has expansion plans in the Asia-Pacific, Europe, Africa, the Middle East and Latin America.
Launched in 2015, the Hyatt Centric brand is swiftly gaining momentum. It is a brand of full-service lifestyle hotels located in prime destinations, particularly catering to millennial-minded travelers. Meanwhile, the company’s new signings across its brands globally have consistently outpaced its openings and this trend is expected to continue in 2019.
In 2018, Hyatt registered net room growth of 13.6% on a year-over-year basis. For 2019, it expects unit growth of roughly 7-7.5%, reflecting 80 new hotel openings.
In the past three months, shares of Hyatt have gained 9.7% compared with the industry’s 18.6% rally. Stocks like Extended Stay America, Inc. STAY, Marriott Vacations Worldwide Corporation VAC and Hilton Worldwide Holdings Inc. HLT, which belong to the same industry, have also gained 19%, 39.5%, and 21.9%, respectively, in the same period.
Hyatt has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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