Hyatt Hotels Corporation
(
H
) recently inked a management agreement with Bienes y Comercio,
S.A. to unveil a Grand Hyatt hotel in Bogota, Colombia in early
2015. The new hotel will feature 297 guestrooms, including 53
suites, more than 24,000 square feet of meeting space along with
numerous other facilities, and will cost around $130 million.
We believe Bogota is a strategic fit for openings, as it is the
capital and largest city in Colombia and one of the leading
locations in Latin America. This upcoming property at Bogota marks
the second Hyatt-branded hotel under construction in Colombia. The
other one is a Hyatt Regency, under development at Cartagena and
likely to open in late 2015. Both Bogota and Cartagena are
considered as popular destinations for leisure and business tours.
Management remains focused on opening more Hyatt-branded hotels in
Colombia going ahead.
Located in a prime location adjacent to the International
Airport, the Bogota property will be vital to Colombia's most
important corporate real estate project - Ciudad Empresarial. This
multi-use property houses several corporate offices, premium retail
spaces, meeting areas and many other high-end amenities. Further,
the Bogota hotel will be in proximity to several government
ministries making it easier to attract business
travelers.
The company should be wary of its competitors, as they too are
in an expansion mode. In fact, Hyatt's major competitors,
Starwood Hotels & Resorts Worldwide Inc.
(
HOT
) and
Marriott International Inc.
(
MAR
) also have their presence in Bogota.
With the affluence of the middle class in Latin America,
inclination to spend on travel and leisure has somewhat risen.
Apart from tourism, the region is also successfully emerging as a
business hub. All these factors testify to Hyatt's one of the
largest hotel development pipelines in Latin America.
Last month, this Chicago-based company acquired a property in
Mexico City and rebranded it as Hyatt Regency. There are thirteen
Hyatt-branded hotels in the pipeline in Latin America. Once these
properties are unveiled, Hyatt will boast of as many as 21 assets
in the most desirable locations across Latin America.
Hyatt currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. We are maintaining our long-term Neutral
recommendation on the stock.
HYATT HOTELS CP (H): Free Stock Analysis Report
STARWOOD HOTELS (HOT): Free Stock Analysis
Report
MARRIOTT INTL-A (MAR): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research