Hyatt Unveils Hyatt Place Jermuk; Expands Upscale Brand

Zacks

Hyatt Hotels Corporation H is looking to expand its footprint in the international markets, especially the upscale segment. The hotelier, along with Armenia-based Jersan LLC, recently announced the opening of the Hyatt Place Jermuk near the centre of Jermuk’s main commercial district in Armenia. The opening marks the second Hyatt-branded property in Armenia and the third Hyatt Place hotel in Europe.

Jermuk is a small mountain resort town in Armenia known for its thermal water spas and hot springs. The hotel is located at a short distance from the tourist spots including the mountains of Vayots Dzor, the 1,000-year old Gndevank monastery, the Tatev monastery and Wings of Tatev, the longest reversible aerial tramway system. Jermuk also regularly hosts international chess events, including the World Chess Federation Grand Prix tournaments. Therefore, the hotel is likely to attract a large number of tourists.

The 92-room hotel also features a full service restaurant, a bar, fully-equipped gym, indoor swimming pool, whirlpool, sauna and an open air terrace. Further, the hotel has more than 7,500 square feet meeting and function space equipped with the latest technologies.

Hyatt set a trend in hotel designs with the Hyatt Place brand and spread its operations globally with 180 hotels since its launch in Jun 2006. In its eight years’ journey, the upscale, select-service, contemporary lifestyle hotel brand designed for modern travelers has gained immensely from its affordable pricing and guest satisfaction scores.

Hyatt’s decision to open an upscale hotel in Armenia is justified as the demand for such hotels has risen in the international markets in the recent times with the gradual improvement in the economy. In the current economic cycle, hotels in the luxury, upper upscale and upscale chain categories have recovered occupancy levels more quickly and are now witnessing better Average Daily Rate (“ADR”). In particular, luxury hotels and upper upscale hotels are anticipated to benefit from a gradual recovery in group activity and record higher occupancy rates.

Hyatt currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector are Marriott Vacations Worldwide Corp. VAC, China Lodging Group, Limited HTHT and Intrawest Resorts Holdings, Inc. SNOW. All these stocks sport a Zacks Rank #1 (Strong Buy).

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