Hyatt Hotels Corporation (H) recently signed a deal with an affiliate of HILLGATE Properties NV, for the operation of Hyatt Place Amsterdam Airport hotel. Financial terms of the deal were not disclosed.
The new hotel in the Netherlands will feature 303 guest rooms along with other amenities and is slated for inauguration in mid 2013. This will be the second Hyatt property both in Amsterdam and the Netherlands, following the expected opening of Andaz Amsterdam in 2012. The opening of these properties will mark a milestone in the hotelier’s expansion policy in Europe.
HILLGATE Properties NV is a leading Dutch real estate developer, with projects including office, residential, industrial and hospitality real estate development, working on both new-built projects and redevelopments.
Every major hotelier has lately been trying to tap the tremendous development opportunity outside the U.S., in places like Europe, Latin America, Asia Pacific and the Middle East. Europe remains one of the key areas for upcoming openings by virtue of it being the destination of more than 50% of international travelers. This will lead to heightened competition as well.
One of Hyatt’s peers, Marriott International Inc. (MAR), appears all set to hit the European market. It recently signed a deal with Spanish hotel group AC Hotels to manage and franchise a new lodging brand across Europe and Latin America. By 2015, Marriott plans to double its European room portfolio from the current level of 40,000.
Another peer Starwood Hotels & Resorts Worldwide Inc. (HOT) also plans to open 50 hotels in Europe, Africa and the Middle East over the next three to five years. Bolstered by the demand for design-led and luxury brands, the company will unveil 12 such hotels in the region over the course of this year. In Europe alone, Starwood is investing over $100 million in renovations.
Apart from Europe, Hyatt also remains focused on the Latin American market. Hoteliers continue to see more construction opportunities in Latin America, with a population of over half a billion and an abundance of natural resources.
Yesterday, Hyatt inked another management and licensing deal with Cobbo Bay Developers SA for Hyatt Regency Cap Cana Hotel, Villas, and Residences to be located in Punta Cana, The Dominican Republic. The hotel is slated for a 2014 launch. The Dominican Republic was visited by 4 million people in 2010, which makes the location a strategic fit for Hyatt.
In Latin America, Hyatt already has a presence in Panama and Costa Rica. However, Starwood stands to enjoy a noteworthy presence in that region with six new hotels coming up in 2011, resulting in a portfolio of nearly 70 hotels in 13 countries by year end. Hyatt currently retains a Zacks #3 Rank (short-term Hold rating). We are also maintaining our long-term Neutral recommendation on the stock.
HYATT HOTELS CP (H): Free Stock Analysis Report
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