Yahoo Finance Hyatt (H) Expands Footprint in India With New Chandigarh Hotel
Hyatt Hotels Corporation H has expanded its footprint in India with the opening of the Hyatt Centric brand in Chandigarh. This marks the opening of the second Hyatt hotel in the city and the fourth Hyatt Centric hotel in India.
The 144-room property has nearly 26,000 square feet of event space and three dedicated indoor and outdoor venues. Hyatt is trying to expand its presence worldwide and has expansion plans for Asia-Pacific, Europe, Africa, the Middle East and Latin America. Expansion in these markets is likely to help the company gain market share in the hospitality industry, boosting its business.
An essential aspect of the company’s riveting growth potential is its strong brand presence and continual expansion in higher growth and under-penetrated markets such as India and China. Meanwhile, the company’s new signings across its brands globally have consistently outpaced openings.
Hyatt’s shares have gained 8.3% in the past three months compared with the industry’s increase of 2.4%.
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Expansion Efforts to Drive Growth
Recently, the company announced that it is looking to expand its presence in the Latin America and Caribbean regions. The company has a robust development pipeline of over 20 planned luxury and lifestyle hotels as well as resort openings through 2024 in those two regions.
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). 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%, respectively, on a year-over-year basis.
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, Playa Hotels & Resorts N.V. PLYA and InterContinental Hotels Group PLC IHG.
Marriott Vacations currently sports a Zacks Rank #1. VAC has a trailing four-quarter earnings surprise of 13.9%, on average. The stock has declined 24.9% in the past year.
The Zacks Consensus Estimate for VAC’s current financial year sales and earnings per share (EPS) indicates an increase of 19.7% and 131.4%, respectively, from the year-ago period’s reported levels.
Playa Hotels & Resorts carries a Zacks Rank #2. PLYA has a trailing four-quarter negative earnings surprise of 8.8%, on average. The stock has declined 32.4% in the past year.
The Zacks Consensus Estimate for PLYA’s current financial year EPS indicates growth of 206.3% from the year-ago period’s reported levels.
InterContinental Hotels carries a Zacks Rank #1. IHG has a long-term earnings growth of 32.7%. The stock has declined 27.7% in the past year.
The Zacks Consensus Estimate for IHG’s current financial year sales and EPS indicates growth of 21.7% and 88.4%, respectively, from the year-ago period’s reported levels.
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Intercontinental Hotels Group (IHG) : Free Stock Analysis Report
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