Hyatt (H) Expands Footprint in London With Hotel Opening
Hyatt Hotels Corporation H announced the addition of Hyatt Regency London Albert Embankment to its portfolio. This marked the eighth Hyatt-branded hotel and the third Hyatt Regency-branded hotel in London, showcasing Hyatt’s ambition of brand expansion in London.
The 142-room hotel is nestled in the center of London, with a prime riverside location. The special amenities include an on-site fitness center, five technology-enabled meeting rooms and two restaurants (one rooftop). The hotel is located near Westminster, which houses landmarks like the Houses of Parliament, Trafalgar Square and Big Ben, with Vauxhall as the nearby station for hassle-free transportation.
Regarding the opening, Felicity Black-Roberts, vice president of development of Hyatt Europe, said, “London remains a priority market for our planned brand growth in the U.K., and we are delighted to add Hyatt Regency London Albert Embankment to our expanding list of properties in the capital.”
Expansion to Drive Growth
The company focuses on expansions across continents to drive business growth. As of Sep 30, 2022, its portfolio included 1211 hotels (294,888 rooms). Also, Hyatt executed management or franchise contracts for approximately 550 hotels (or 114,000 rooms).
Recently, the company announced its plan to expand the Independent Collection brands’ footprint by 2025. Its Independent Collection brands will have 11 new hotels in their portfolios by 2025. The company will open its first property in San Miguel de Allende, Mexico, and the first Hyatt-branded hotel in Helsinki, Finland. Given the easing of travel restrictions in the Asia Pacific region and strong leisure travel demand, Hyatt anticipates unit growth of 6.5% on a net-room basis for 2022.
Price Performance
Shares of Hyatt have gained 40.5% in the past six months, outperforming its industry’s growth of 17.4%.
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The company is benefiting from a rise in leisure transient demand, the easing of travel restrictions and ramped-up airline capacity. Also, focus on new hotel openings and acquisition initiatives bode well. As the pandemic has been subsiding, travel restrictions have been eased. There has also been an increase in cross-border travel. Strength in short-term bookings, coupled with strong food and beverage spending is likely to aid the company’s performance in the upcoming periods.
Earnings estimates for Hyatt’s 2023 have increased in the past 60 days by 4.6% to $2.51, depicting analysts’ optimism.
Zacks Rank & Key Picks
Hyatt Hotels currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Ralph Lauren Corporation RL, World Wrestling Entertainment, Inc. WWE and Manchester United plc MANU.
Ralph Lauren currently sports a Zacks Rank #1. The company’s four-quarter average earnings surprise is 28.7%. Shares of RL have grown 29% in the past six months.
The Zacks Consensus Estimate for RL’s 2024 sales and EPS indicate year-over-year growth of 5% and 13.4%, respectively.
World Wrestling Entertainment currently flaunts a Zacks Rank #1. WWE delivered a four-quarter average earnings surprise of 25.19%. The company’s shares have plunged to 68% in the past year.
The Zacks Consensus Estimate for WWE’s 2023 sales and EPS indicate growth of 4.9% and 10.7%, respectively, compared with 2022 estimates.
Manchester United sports a Zacks Rank #1. MANU came up with a four-quarter average earnings surprise of 34.35%. The stock has risen 111.2% in the past six months.
The Zacks Consensus Estimate for MANU’s 2024 sales and EPS implies growth of 11.38% and 27.78%, respectively, compared with 2023 estimates.
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