Hyatt Hotels CorporationH announced that its affiliate has signed an agreement with Kastrati Hotels & Tower shpk to launch the first Hyatt-branded hotel in Albania. The hotel, comprising 151 room Hyatt Regency Tirana, will be located 15 kilometers away from Rinas Mother Theresa International Airport. It is scheduled to open doors in 2019.
Notably, this will be the fifth Hyatt Regency hotel in Southeast Europe. The move underscores Hyatt's efforts to expand and strengthen its brand name. We believe that the recent hotel addition will strengthen the Hyatt Regency brand's global footprint and boost Hyatt's Owned and Leased Hotels revenues.
In a year's time, shares of Hyatt have lost 0.7%, outperforming the industry 's 18.9% decline.
Strategic Expansion Bode Well
Backed by consistent efforts toward expanding its brands globally, Hyatt is gaining market share in the hospitality industry. Additionally, Hyatt's aim to differentiate its brands from one another by providing distinct travel experiences lends it a competitive edge.
In fact, Hyatt has expansion plans in diverse international markets, including Australia, Brazil, Germany, Indonesia and others. Markedly, the company's new signings across its brands globally have consistently outpaced its openings and this trend is expected to continue in 2018.
During third-quarter 2018, Hyatt registered net room growth of 7.6% on a year-over-year basis, which marked the 14th successive quarter of growth above 6%. Also, the company's development pipeline grew roughly 6% from the figure registered a year ago. For 2018, it expects to grow units by 6.5-7% (on a net room basis), reflecting 60 hotel openings.
Hyatt, which shares space with Extended Stay America, Inc. STAY , carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other top-ranked stocks worth considering in the same space include Belmond Ltd. BEL and Choice Hotels International, Inc. CHH . While Belmond sports a Zacks Rank #1 (Strong Buy), Choice Hotels International carries a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here .
Belmond has an impressive long-term earnings growth rate of 15%.
Choice Hotels International reported better-than-expected earnings in the trailing four quarters, the average being 6.3%.
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