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Hyatt Hotels (H) Announces Plans to Expand Presence in Europe

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Hyatt Hotels Corporation (H - Free Report) recently announced that a Hyatt affiliate has entered into six new management and franchise agreements for hotels in Europe across The Unbound Collection by Hyatt, JdV by Hyatt, Hyatt Centric, and Hyatt Regency brands. The latest move is in sync with the company’s strategy to expand its European portfolio.

Felicity Black-Roberts, Hyatt Hotels’ vice president development, Europe said, “The newly executed agreements highlight the positive strides we are making towards our growth strategy in Europe, and the new projects sit alongside a strong pipeline of Hyatt-branded hotels scheduled to open over the coming years.”

In 2023, the luxurious boutique hotel, Rhodania, in the Swiss Alps is likely to join The Unbound Collection by Hyatt. Meanwhile, a Hyatt affiliate has reached a franchise agreement with AG Group for Il Tornabuoni Hotel in Florence, which will join The Unbound Collection by Hyatt. The hotel is likely to open in October 2021. This will mark the company’s first Hyatt-branded property in Florence.

The Tribune Hotel is likely to join the JdV by Hyatt brand. A Hyatt affiliate has reached a franchise agreement with AG Group (“AGPYF”) for the new hotel in the UNESCO World Heritage Site city, which is expected to open in October 2021. Meanwhile, JdV by Hyatt brand is expected to open its first hotel in Bordeaux, France.

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Expansion Efforts to Drive Growth

Hyatt Hotels continues to expand presence to boost growth. During the second quarter of 2021, the company opened 27 new hotels (or 4,302 rooms), which led to net rooms growth of 7.1% year over year. As of June 30, 2021, it had executed management or franchise contracts for approximately 495 hotels (or 101,000 rooms) compared with 490 hotels (or 100,000 rooms) as of Mar 31, 2021. The company is optimistic about full-service growth opportunities, comprising newbuilds and conversions globally.

Shares of Hyatt Hotels have gained 25.5% in the past year, compared with the industry’s growth of 21.6%.

Zacks Rank

Hyatt Hotels — which shares space with Marriott International, Inc. (MAR - Free Report) , Hilton Worldwide Holdings Inc. (HLT - Free Report) and Choice Hotels International, Inc. (CHH - Free Report) in the Zacks Hotels and Motels industry — carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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