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Hyatt Hotels Corporation H has opened TOOR Hotel in Toronto’s Garden District. This marks the company’s second JdV by Hyatt hotel in the city and third in Canada.
The new property expands the company’s presence in Toronto and supports its focus on growing the lifestyle portfolio.
Hyatt Strengthens Brand Presence in Growing Toronto Market
TOOR Hotel is owned and managed by Manga Hotel Group, based in Toronto, Ontario. The property is located downtown and designed to reflect the city’s culture and energy. As Toronto continues to grow as a global destination, the hotel is positioned to serve the needs of both business and leisure travelers.
The hotel operates under the JdV by Hyatt brand and adds to the company’s presence in Canada. It also offers an additional option for World of Hyatt members visiting the region.
Hyatt’s Focus on Expansion Bodes Well
Hyatt continues to demonstrate strong growth prospects, supported by its strategic acquisitions and an expanding global footprint. During the fourth quarter of 2024, Hyatt added 81 hotels (or 20,721 rooms) to its portfolio. The company’s growth pipeline continues to drive the expansion of its global portfolio, achieving net room growth of 7.8% during 2024.
As of Dec. 31, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 720 hotels (or 138,000 rooms). This represents pipeline expansion of approximately 9% year over year. Hyatt anticipates net room growth in 2025 to increase in the range of 6% to 7% year over year.
Hyatt’s Price Performance
Image Source: Zacks Investment Research
Shares of Hyatt have lost 30% in the year-to-date period compared with the Zacks Hotels and Motels industry's 20.7% decline. Although the company has underperformed the industry in the said period, solid improvement in revenue per available room, strong leisure travel demand and unit expansion efforts will help to drive growth. Also, its focus on a loyalty program and strategic acquisitions bodes well.
Hyatt’s Zacks Rank & Key Picks
Hyatt currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are RCI Hospitality Holdings, Inc. RICK, Adtalem Global Education Inc. ATGE and Royal Caribbean Cruises Ltd. RCL.
RCI Hospitality currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter negative earnings surprise of 62.9%, on average. The stock has declined 30.6% in the past year. The Zacks Consensus Estimate for RCI Hospitality’s 2025 sales and earnings per share (EPS) indicates growth of 2.5% and 1,278.8%, respectively, from year-ago levels.
Adtalem sports a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 21.6%, on average. The stock has gained 74.9% in the past year.
The Zacks Consensus Estimate for Adtalem’s fiscal 2025 sales and earnings per share (EPS) indicates growth of 10.1% and 23.8%, respectively, from the year-ago levels.
Royal Caribbean currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has rallied 43.2% in the past year.
The Zacks Consensus Estimate for Royal Caribbean’s 2025 sales and EPS indicates growth of 9.1% and 26.7%, respectively, from year-ago levels.