Yahoo Finance Hyatt (H) Expands Footprint in Thailand With Hotel Opening
Hyatt Hotels Corporation’s H Andaz brand announced the opening of Andaz Pattaya Jomtien Beach in Thailand. This marks the brand’s first property in the region.
Located on the Tawanron beach, the 204-room resort provides guests with access to fitness centers, on-site dining and multi-function indoor-outdoor meeting spaces. It also offers convenient access to leisure attractions, such as Pattaya’s green countryside, lakes, wineries, exceptional golf courses and cafes. The property is close to the Suvarnabhumi Airport and Bangkok.
Regarding the opening, David Udell, the group president of the Asia-Pacific, Hyatt, stated, "With the growing demand for immersive, authentic experiences among luxury travelers, we are delighted by the launch of the vibrant Andaz brand in Thailand, one of the world's most appealing destinations.”
Price Performance
Shares of Hyatt have rallied 37.5% in the past six months, outperforming its industry’s growth of 15.5%.
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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, a focus on new hotel openings and acquisition initiatives bode well.
As the pandemic has been subsiding, travel restrictions have 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 Hyatt's performance in the upcoming periods.
The company continues to expand its presence to drive growth. In the third quarter of 2022, 22 new hotels (or 4,243 rooms) joined Hyatt's system.
As of Sep 30, 2022, Hyatt executed management or franchise contracts for approximately 550 hotels (or 114,000 rooms). The Andaz brand has about 25 properties (5,610 rooms) as of the same date, with a Revenue Per Available Room (RevPAR) increase of 34.8% from the year-ago period. H has Andaz properties in Bali, Delhi, Seoul, Shanghai, Shenzhen, Singapore, Tokyo and Xiamen.
Given the easing of travel restrictions in the Asia Pacific region and strong leisure travel demand, the company anticipates unit growth in 2022 to increase 6.5% on a net-room basis.
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.
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