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Hyatt's (H) Andaz Brand Debuts in Dubai, Expansion on Track

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In a bid to capitalize on demand for hotels in international markets, Hyatt Hotels Corporation (H - Free Report) continues to expand its presence globally. Recently, the company announced the opening of Andaz Dubai The Palm. This marks the company’s first Andaz-branded hotel in Dubai and the second in United Arab Emirates.

The new hotel has 217 guestrooms, including 34 suites and 116 residences. The move underscores the company’s efforts to expand its footprint and strengthen the Andaz brand. In the past six months, shares of Hyatt have gained 12.1% compared with the industry’s 9.8% growth.

Strategic Expansion to Help Counter Competition

Of late, Hyatt stated that it plans to add more than 20 new luxury hotels and resorts to its portfolio by the end of 2020. Hyatt, which will celebrate its 40th anniversary in 2020, plans to open five Park Hyatt hotels by next year in Doha, Qatar; Jakarta, Indonesia; Niseko, Japan; Suzhou, China; and Auckland, New Zealand. The company will also strengthen its Alila brand by opening hotels in Switzerland, Malaysia and Oman by 2020.

Moreover, Andaz-branded luxury lifestyle properties will expand its footprint in Dubai, UAE; Prague, Czech Republic; Bali, Indonesia; Shenzhen and Xiamen in China; and Palm Springs, CA.



The Zacks Rank #3 (Hold) company also has expansion plans in Asia-Pacific, Europe, Africa, Middle East and Latin America. Expansion in these markets should help the company gain market share in the hospitality industry and boost its business. Thus, 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.

Apart from these, the company has announced further expansion plans in diverse international markets like Australia, Brazil, Germany, the U.K., Indonesia, Japan, Mexico, Saudi Arabia, Singapore, Thailand, the Netherlands and others. We believe this will help the company to counter competition from the likes of Marriott (MAR - Free Report) and Hilton (HLT - Free Report) .

A Key Pick

A better-ranked stock worth considering in the same space is Civeo Corporation (CVEO - Free Report) , which carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Civeo reported better-than-expected earnings in three of the trailing four quarters, the average beat being 42.5%.

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