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Hyatt (H) Expands European Reach With Me and All Hotels Buyout

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Hyatt Hotels Corporation (H - Free Report) aims to expand into new European markets with the acquisition of the me and all hotels brand from Lindner Hotels AG by a Hyatt affiliate.

This follows a 2022 collaboration that increased H's brand presence in Germany and Europe, integrating most Lindner Hotels & Resorts and me and all hotels into the World of Hyatt loyalty program. After the transaction, me and all hotels will become a standalone brand within H's global lifestyle portfolio, which quintupled in rooms between 2017 and 2023.

The Lindner team built an impressive brand with me and all hotels, which has strong expansion potential in Europe and beyond. Since its launch in 2016, the brand has grown to six hotels and more than 1,000 rooms in central city locations across Germany, now part of Hyatt’s inventory. The pipeline includes conversions and new builds in key destinations like Berlin (2024), Hamburg, Leipzig, and Stuttgart (2026).

Hyatt’s pipeline features 1,000 me and all hotel rooms, with more deals under negotiation for locations outside Germany. The me and all hotels brand offers high guest satisfaction and a development model suited for upscale lifestyle spaces, positioning it for rapid growth. The collaboration with Lindner significantly expanded H's presence in the EAME region, adding many new locations for the 46 million World of Hyatt members.

The company aims to drive further growth for Hyatt’s lifestyle portfolio with me and all hotels. The partnership with Lindner and other development partners and franchisees is likely to support this expansion across Europe and beyond.

Hyatt on an Expansion Spree

Hyatt is consistently trying to expand its presence worldwide and has further expansion plans in Asia-Pacific, Europe, Africa, the Middle East and Latin America. Expansion in these markets would help the company gain market share in the hospitality industry, boosting business.

On Jun 25, 2024, the company unveiled its expansion in New Orleans by adding Maison Métier and The Barnett to its portfolio. Owned by The Domain Companies and managed by HRI Hospitality, these properties will join Hyatt’s Independent Collection and are expected to

During the first quarter of 2024, Hyatt added 12 new hotels (or 2,425 rooms) to its portfolio. Notable openings included Thompson Houston, Secrets Tides Punta Cana, Secrets Playa Blanca Costa Mujeres, five UrCove properties in China, and Hyatt Regency Nairobi Westlands, which marked the company’s first hotel in Kenya. As of Mar 31, 2024, it had a pipeline of executed management or franchise contracts for approximately 670 hotels (or about 129,000 rooms). The company anticipates net room growth in the range of 5.5-6% year over year in 2024.
 

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Shares of the company have gained 16.9% in the past six months compared with the Zacks Hotels and Motels industry’s 11.1% growth. The company is benefiting from the consistent focus on an asset-light model initiative and footprint expansion plans in new and existing markets accompanied by strategic partnerships.

Zacks Rank & Key Picks

Hyatt Hotels currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Consumer Discretionary sector.

Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has gained 54.5% in the past year. The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) implies growth of 16.8% and 64%, respectively, from year-ago levels.

PlayAGS, Inc. (AGS - Free Report) presently sports a Zacks Rank of 1. AGS has a trailing four-quarter earnings surprise of 33.3%, on average. The stock has hiked 103.2% in the past year.

The consensus estimate for AGS’s 2024 sales and EPS suggests growth of 7.7% and 5,200%, respectively, from the year-ago levels.

Adtalem Global Education Inc. (ATGE - Free Report) currently sports a Zacks Rank of 1. ATGE has a trailing four-quarter earnings surprise of 18.8%, on average. The stock has surged 97.6% in the past year.

The Zacks Consensus Estimate for ATGE’s fiscal 2025 sales and EPS indicates an increase of 5.3% and 16.6%, respectively, from year-ago levels.

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