Hyatt Hotels (H) on Expansion Spree, Opens Hotel in Jakarta
Hyatt Hotels Corporation H continues to focus on expansion efforts to stay ahead of its competitors. The company announced the opening of Park Hyatt Jakarta.
David Udell, group president, Asia-Pacific, Hyatt, said “As more countries reopen their borders and travel confidence grows, Park Hyatt Jakarta is an exciting addition to our Park Hyatt portfolio, complementing new hotels that have opened in recent years in Auckland, Kyoto, Niseko and Suzhou.”
The company is quite optimistic about the success of this hotel as it provides easy access to idyllic parks and popular retail and entertainment venues. This hotel also provides panoramic views of the nearby National Monument Park.
Shares of Hyatt have declined 5.9% in the past year compared with the industry’s fall of 12.6%.
Expansion to Drive Growth
The company continues to expand its presence to drive growth. During the first quarter of 2022, 13 new hotels (or 2,690 rooms) joined Hyatt's system contributing to strong net rooms growth of 18.6% year over year. As of Mar 31, 2022, the company had executed management or franchise contracts for approximately 540 hotels (or 113,000 rooms). Unit growth in 2022 is expected to increase at approximately 6% on a net-room basis. In 2018, 2019 and 2020, Hyatt registered net room growth of 13.6%, 7.4% and 5.2% on a year-over-year basis, respectively.
Recently, the company announced the opening of Caption by Hyatt Beale Street Memphis in Memphis. This also marks the addition of Caption by Hyatt to its lifestyle brand portfolio. Hyatt aims to distinguish its brands by providing distinct travel experiences. It is consistently trying to expand its presence worldwide and plans to expand in Asia-Pacific, Europe, Africa, the Middle East and Latin America.
Zacks Rank & Key Picks
Hyatt 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 Bluegreen Vacations Holding Corporation BVH, Caleres, Inc. CAL and MGM Resorts International MGM.
Bluegreen Vacations sports a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has increased 47% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and earnings per share (EPS) indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.
Caleres sports a Zacks Rank #1. CAL has a trailing four-quarter earnings surprise of 62.9%, on average. Shares of the company have gained 3.1% in the past year.
The Zacks Consensus Estimate for CAL’s current financial year sales and EPS suggests growth of 4.8% and 0.7%, respectively, from the year-ago period’s levels.
MGM Resorts sports a Zacks Rank #1. MGM has a trailing four-quarter earnings surprise of 212.5%, on average. Shares of the company have declined 26.7% in the past year.
The Zacks Consensus Estimate for MGM’s current financial year sales and EPS suggests growth of 28.1% and 240.3%, respectively, from the year-ago period’s reported levels.
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