Hyatt Hotels Corporation H recently announced opening its luxury hotel Thompson Madrid in Spain. This marks the opening of the first Thompson Hotels branded property in the region and the third Hyatt-branded hotel across Europe. The new hotel will join the likes of Hyatt Centric Gran Via Madrid and Hyatt Regency Hesperia Madrid.
Located on Calle De La Montera, the 175-room luxury hotel will have amenities like an outdoor infinity pool, culinary venues, lounges and an open-air courtyard. It also offers convenient access to Malasana, Chueca and is close to several leisure attractions such as Madrid’s historic city center, galleries, museums, culinary delights and cultural landmarks.
With respect to the opening, Carlos Erburu Zazpe, general manager of Thompson Madrid, stated, “We are excited to welcome guests to Thompson Madrid and invite them to immerse themselves into the culture of the city, which can be found inside and outside the walls of the hotel.”
Focus on New Hotel openings
The company continues to expand its presence to drive growth. During the second quarter of 2022, 28 new hotels (or 5,510 rooms) joined Hyatt's system. As of Jun 30, 2022, the company had executed management or franchise contracts for approximately 550 hotels (or 113,000 rooms). It remains optimistic about full-service growth opportunities, comprising new builds and conversions globally. In 2022, the company anticipates unit growth to increase by approximately 6% on a net-room basis.
Image Source: Zacks Investment Research
Coming to price performance, shares of the company have gained 26.2% in the past year against the industry’s decline of 1.2%. The company is benefitting from solid leisure transient demand, integration of Apple Leisure Group and asset disposition commitment. Also, sequential improvements in group travel and business transient demand bode well. As people return to the office, travel restrictions are eased and more cross-border travel resumes, the company remains optimistic about the recovery of business transient and its continued momentum over the back half of the year. This and strength in short-term bookings coupled with strong food and beverage spending are likely to support the company’s performance in the upcoming periods. Earnings estimates for 2022 have increased in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential.
Zacks Rank & Other Key Picks
Hyatt currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are Marriott Vacations Worldwide Corporation VAC, Marriott International, Inc. MAR and Choice Hotels International, Inc. CHH.
Marriott Vacations sports a Zacks Rank #1. VAC has a trailing four-quarter earnings surprise of 13.9%, on average. The stock has declined 4.4% in the past year.
The Zacks Consensus Estimate for VAC’s current financial year sales and EPS indicates an increase of 19.7% and 131.4%, respectively, from the year-ago period’s reported levels.
Marriott carries a Zacks Rank #2. MAR has a trailing four-quarter earnings surprise of 18.6%, on average. The stock has increased 17.5% in the past year.
The Zacks Consensus Estimate for MAR’s current financial year sales and EPS indicates growth of 46.7% and 103.1%, respectively, from the year-ago period’s reported levels.
Choice Hotels carries a Zacks Rank #2. CHH has a trailing four-quarter earnings surprise of 11.2%, on average. The stock has declined 5.2% in the past year.
The Zacks Consensus Estimate for CHH’s current financial year sales and EPS indicates growth of 25.3% and 21.7%, respectively, from the year-ago period’s reported levels.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marriott International, Inc. (MAR) : Free Stock Analysis Report
Hyatt Hotels Corporation (H) : Free Stock Analysis Report
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
Marriot Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research