Hyatt Hotels looks to capitalize on Asia’s rising middle class

Hyatt Hotels looks to capitalize on Asia’s rising middle class

One of the central tennants of our thematic lens is that changing landscapes in economics, demographics, psychographics, and technology impact business models, creating opportunities and risks. Investors should focus on those companies that pivot their businesses to capitalize on those opportunties, and we’re seeing Hyatt Hotels and its lodging competitors as they captialize on our Rise of the New Middle Class investment theme and expand their presence in Asia and China in particular.

Hyatt Hotels will more than double its revenue from China over the next five years as the hotel chain seeks to gain a firmer foothold in the burgeoning hospitality market, the company’s president and CEO said.

“If I look over the next four, five years, we will fully double our presence here moving from the 58 hotels or thereabouts that we have today to more than double that number,” Mark Hoplamazian told CNBC.

“And from a financial perspective — also quite important for us — more than $50 million of fee revenue coming out of greater China that will more than double over the next four to five years again because of our growth,” Hoplamazian added.

The American hospitality group plans to release more than 20,000 new rooms into the Chinese marketplace across over 90 hotels, he said. About 70 percent of Hyatt’s guests in the country are Chinese travelers.

Source: Hyatt Hotels CEO on his company’s plans for China

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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