Hyatt (H) strengthens its portfolio of hotels with new collaborations

Hyatt Hotels Corporation H aims to create a distinction between its brands by offering distinct travel experiences. It is also constantly trying to expand its global presence and plans to expand into Asia-Pacific, Europe, Africa, the Middle East, and Latin America.

In a bid to strengthen its UK portfolio, the Hyatt subsidiary recently entered into a franchise agreement with Edinburgh International Conference Center to open the Hyatt Centric Edinburgh Haymarket. The hotel will join Hyatt Centric Cambridge, marking the second opening of the Hyatt Centric brand in the country. The company plans to open the hotel in mid-2025.

Located in Scotland, this full-service lifestyle hotel features 349 rooms, a gym, four meeting rooms and catering spaces. The property offers convenient access to Edinburgh International Airport and is close to several leisure attractions such as Edinburgh Castle, the National Museum of Scotland and the Old Town.

Referring to the opening, Felicity Black-Roberts, Vice President of Development for Europe and North Africa, Hyatt, said, “This new development demonstrates Hyatt’s commitment to growing its brand portfolio of lifestyle across the UK, in places that matter most to our guests, members, customers and owners.

Buoyed by strong leisure travel demand, Hyatt announced plans to expand its presence in the Americas region. Recently, the company, in conjunction with property group Diestra Realty, SA de CV, announced plans to open the Grand Hyatt Cancún Beach Resort, in Quintana Roo, Mexico. The company plans to open the property during the 2024 summer season.

With a focus on its transition to a leisure-focused portfolio, expansion into these markets will likely help the company gain market share in the hospitality industry and boost its business.

Focus on new hotel openings

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 room growth of 18.6% year-over-year. As of March 31, 2022, the company had executed management or franchise agreements for approximately 540 hotels (or 113,000 rooms). Going forward, he remains optimistic about the growth opportunities for full services, including both new builds and conversions globally. In 2022, the company expects unit growth to increase by approximately 6% on a net room basis.

Price performance

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In terms of price performance, the company’s shares have gained 13.3% over the past year compared to industry growth of 0.4%. The business is benefiting from strong demand for transitional leisure, the integration of Apple Leisure Group and a commitment to dispose of assets. Additionally, sequential improvements in group travel and business traveler 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 transient business and its continued momentum in the second half of the year. Earnings estimates for 2023 have risen over the past 30 days, illustrating analysts’ optimism about the stock’s growth potential.

Zacks ranking and key picks

Hyatt currently carries a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some top-ranked stocks in Zacks’ Consumer Discretionary sector are Civeo Corporation CVEO, Bluegreen Vacations Holding Corporation BVH and Funko Inc. FNKO.

Civeo sports a #1 Zacks rank right now. The company has a four-quarter earnings surprise of 1,565.1% on average. Shares of the company are up 68.9% over the past year.

Zacks’ consensus estimate for CVEO’s sales and earnings per share (EPS) in 2022 suggests growth of 12.5% ​​and 1,450%, respectively, from year-ago period levels.

Bluegreen Vacations sports a No. 1 Zacks rank. BVH has a trailing four-quarter earnings surprise of 85.9% on average. The stock is up 36.8% over the past year.

Zacks consensus estimate for BVH’s current year sales and EPS indicate growth of 11.2% and 35.1%, respectively, from reported levels in the prior year period .

Funko wears a Zacks Rank #2 (Buy). FNKO has a surprise on earnings for the last four quarters of 78.7%, on average. Shares of the company are down 12.2% over the past year.

Zacks’ consensus estimate for Funko’s current fiscal year sales and EPS suggests growth of 26.8% and 31%, respectively, from reported levels in the prior year period.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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