Hyatt Hotels (NYSE: H) to Spread its Tentacles Across the Globe

• H stock prices rose by 4.25% in the past few hours.
• Earnings report scheduled for Feb 16, 2023.
• Change in the Board and expansion in brand may lead 2023 performance.

Hyatt Hotels Corporation (NYSE: H) is a hospitality company that operates across the globe. The hotel group revealed its plan to expand its chain of properties spanning across countries like Japan, China, England, Spain and Turkey. The expansionary policy seemed strategic as the countries picked by the company are tourist hotspots. 

The recent plans also revealed for the company to revise the branding in certain cities. In the slowing economies, the upgrade in brand will bring a wider customer base as, specially the elite classes, holding the market together. The inflationary trends can affect the tariff rates but it will also raise the estimated revenue collection for the chain of hotels. 

Hyatt Hotels revealed that it plans on expanding the brand in the key destinations through 2025. In January,Hyatt said it has opened a Hyatt Regency hotel in Izmir, Turkey. The recent earthquake waves did not reach the Hotel, but had hit the tourism in the country. The new hotel is the sixth Hyatt-branded property in the country.

It is also said to have affiliated a franchise agreement with La Manga Club to establish Grand Hyatt La Manga Club and Resort. The debut of the brand in Spain is planned for mid-2023 followed by Grand Hyatt Lanzarote in 2025.

Adding to the list, it opened hotels in Hangzhou, China and a new Hyatt Regency hotel in London, marking the eighth property under the brand. Furthermore, the hotel chain entered a management agreement with a Mori Building to open the second “The Unbound Collection by Hyatt” hotel in Tokyo, Japan. The brand also plans to revise the brand in Scottsdale, and open a new hotel in Scotland.

The H stock prices are observing a bullish momentum in the price movement. The stock has marked its all-time high since its IPO in November, 2009. The current price rose by 4.25% in the intra day session, holding a place at $116.11, at press time. The volume shows volatile activity, where both buyers and sellers are participating. 

If the current rally continues, the prices can face resistance near $120.00. The RSI floats near the ceiling range to suggest buyers’ pull in the prices. The MACD does not form any distinct cross, showing both sellers and buyers trying to establish dominance. The indicators suggest the bull rally will extend till the declaration of earnings for the period ending in December, 2022. 

The earnings report is scheduled to roll out on February 16. The estimates for earnings are set for $0.336 per share, and for revenue it is $1.52 billion. For the past three reports the revenue and earnings came with a surprise, and the same is anticipated for this report as well.

Conclusion

The Hyatt hotel has planned for a widespread expansion covering many countries. If the expansion turns out to be fruitful, the H stocks may witness a bullish breakout. The present price patterns are indicating a bull rule and can give higher benefits. The holder can rely on the support near $105.00 and must watch out for the resistance near $120.00.

Technical levels

Support levels: $105.00 and $87.50

Resistance levels: $120.00 and $125.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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