In order to beef up its Asian portfolio,
Hyatt Hotels Corporation
) is all set to introduce its first Hyatt Regency branded
property in Bangkok, Thailand in association with a local real
estate development company titled Grande Asset Hotels and
Property Public Company Limited. The property is slated for
a 2017 opening. Located in the heart of Bangkok, the hotel will
be the integral part of a mixed-use construction comprising a
shopping center and an upscale residential tower.
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The upcoming Hyatt Regency will feature 300 guest rooms, 26
suites and 10,700 square feet of meeting space along with many
other amenities. Further, the hotel will be in close proximity to
upscale residences, offices of major international companies and
premium retail stores making it apt for both business and luxury
We believe that Bangkok, being a major tourism hub as well as the
capital of Thailand, is a strategic fit for new hotels. The
hotelier is all set to tap the Thai market as it attracts
tourists from all over the world. Amongst them, Malaysia, China,
Russia and Japan are the important sources of visitors, according
to a global market research company Euromonitor.
As per Euromonitor, Thailand's rich cultural value and striking
heritage sites are the other attractions for tourism. Last but
not the least, the country's value-sensitive nature for shopping,
dining and lodging, catch the attention of a majority of the
tourists. Tourism Authority of Thailand also remains very active
in endorsing the country by frequently arranging tourism
exhibitions and other promotional events.
To shift its focus from the rather saturated developed markets,
Hyatt is currently inclined towards the faster growing
Asia-Pacific region to benefit from the increase in demand for
hotels. The company currently operates more than 50 hotels in the
Asia-Pacific region. Apart from the recently opened Hyatt
Regency, the company has one of its other brands, Grand Hyatt,
operating in Bangkok.
Hyatt's major competitors
Starwood Hotels & Resorts Worldwide Inc.
Marriott International Inc.
) also have a considerable presence in Bangkok. With the rapid
entry of global chains as well as local brands, the lodging
supply scenario is strengthening in Bangkok, which might affect
the average daily rate for the hoteliers, going forward.
Hyatt currently retains a Zacks #3 Rank, which translates into a
short-term 'Hold' rating. We also reiterate our long-term
'Neutral' recommendation on the stock.