Hyatt Hotels Corporation (H) recently announced that a Hyatt affiliate entered into a management agreement with an affiliate of Island Hospitality Partners, LLC to unveil Hyatt Place Bayamón and El Tropical Casino. This is a part of the hotelier’s Caribbean expansion plan. After a nine-year hiatus, this property will mark the come back of Hyatt-branded hotels in Puerto Rico upon its opening in 2014.
The new property will feature 156 luxurious guest rooms along with various other amenities. Located near San Juan and in proximity to the city’s largest shopping mall, the property remains a strategic fit.
Puerto Rico has been playing a major role in the hoteliers' Caribbean expansion. The location enjoys an edge over any other Caribbean island as it offers strong connectivity to other places and stresses on eco-tourism.
Moreover, the U.S. citizens are excused by the government of Puerto Rico from producing a passport. Following this initiative, Puerto Rico saw a substantial increase in overall tourist traffic. Therefore, we expect hoteliers to considerably benefit from this strategic expansion going forward. Two of Hyatt’s competitors Starwood Hotels & Resorts Worldwide Inc. (HOT) and Wyndham Worldwide Corporation (WYN) also have presence in that country.
At present, Hyatt operates more than 160 Hyatt Place hotels in the United States. With It also has more than 35 properties in progress throughout the U.S., Europe, the Caribbean, China, Latin America, Southwest Asia, and the Middle East.
Hyatt currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.
HYATT HOTELS CP (H): Free Stock Analysis Report
STARWOOD HOTELS (HOT): Free Stock Analysis Report
WYNDHAM WORLDWD (WYN): Free Stock Analysis Report
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