An affiliate of Chicago, Illinois-based
Hyatt Hotels Corp.
(
H
) recently entered into a management agreement with Range
Developments for developing a hotel under the Park Hyatt brand in
the island of St. Kitts in the Caribbean West Indies. The new hotel
named Park Hyatt St. Kitts is scheduled to open in 2015.
St. Kitts is an island bordering the Caribbean Sea on its western
side and Atlantic Ocean on the eastern side. The island,
which is one of the most popular holiday locations in the
Caribbean, boasts world class resorts and beaches and offers all
types of water sports activities like diving, snorkeling, fishing,
yachting, etc.
Range Developments is an operational arm of Range Holdings Group.
Range Developments engages in developing high class luxury resorts
in splendid locations. The company is developing the hotel in a
2,500 acre area called Christophe Harbour, located on the southeast
peninsula of St. Kitts. Christophe Harbour is presently under
construction and will comprise world class amenities signifying the
natural heritage of Caribbean.
Park Hyatt is a premium luxury brand of Hyatt Hotels and offers
world class experience to both business and leisure travelers.
Strategically located in Banana Bay, Park Hyatt St. Kitts will
comprise 200 guestrooms and 50 Park Hyatt-branded residential
condominiums.
The hotel will be in close proximity to the capital of St.
Kitts-Basseterre, Bradshaw International Airport, Port Zante cruise
terminal and locations of financial importance like the Caribbean
Central Bank and Caribbean Securities Exchange. The hotel will
cater to both business and leisure travelers.
Owing to the saturation in the U.S. market, major hoteliers are
exploring growth opportunities abroad. Some international markets
offer greater potential based on their higher pace of economic
growth. The strong economic growth is driving hotel expansion in
the Caribbean and Latin America, topping the high rate of
inflation.
In 2011, RevPAR for the comparable system-wide properties
increased 9.9 percentage points year over year in the Caribbean and
Latin America. The stellar performance in this region is expected
to continue going forward.
All these factors testify to Hyatt Hotels' intention to own one of
the largest hotel development pipelines in Caribbean. Hyatt
hotels currently has three hotels in the Caribbean- Hyatt Regency
Curacao Golf Resort, Spa and Marina, Hyatt Regency Trinidad and
Hyatt Regency Aruba Resort and Casino.
Moreover, apart from the Park Hyatt St. Kitts, the company has
four hotels in its pipeline in the Caribbean -- Hyatt Place Bayamon
and El Tropical Casino, Park Hyatt Bermuda, Andaz Turks and Caicos
and Grand Hyatt Baha Mar.
On the flipside, the company should be wary of its competitors, as
they too are in expansion mode.
Marriott International Inc.
(
MAR
)
recently revealed its intention to double its presence in the
Caribbean and Latin America by 2017. Several other major hoteliers
like
InterContinental Hotels Group
(
IHG
) and
Starwood Hotels & Resorts Worldwide Inc
. (
HOT
) are also poised to beef up their portfolio in that region.
Hyatt Hotels, a leading global hospitality company, owns, develops,
manages and franchises Hyatt-branded hotels, resorts, residential
and vacation ownership properties throughout the world. The company
operates under the brands Hyatt, Park Hyatt, Andaz, Grand Hyatt,
Hyatt Regency, Hyatt Place, Hyatt House, Hyatt Residences and Hyatt
Vacation Club. As of March 31, 2012, Hyatt Hotels' portfolio
consisted of 488 properties in 45 countries worldwide.
Hyatt Hotels will likely release its second quarter 2012 earnings
on August 1, 2012. The Zacks Consensus Estimate for the second
quarter is pegged at 23 cents per share. We presently have a
long-term Neutral recommendation on the stock. Also, it retains a
Zacks #3 Rank (short-term Hold rating).
HYATT HOTELS CP (H): Free Stock Analysis Report
STARWOOD HOTELS (HOT): Free Stock Analysis
Report
INTERCONTL HTLS (IHG): Free Stock Analysis
Report
MARRIOTT INTL-A (MAR): Free Stock Analysis
Report
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