Hyatt to Reopen Coco Palms in Hawaii - Analyst Blog

An affiliate of Hyatt Hotels Corporation H entered into an agreement with Coco Palms Hui LLC for the management of the reinstated The Coco Palms Resort on Kauai, Hawaii. The renovation of the hotel is scheduled to begin in early 2015.

The hotel will re-open near the beginning of 2017 after a 2-year restoration and will continue to operate under its old name and Hyatt brand. The hotel was closed after it suffered severe damage during Hurricane Iniki, which devastated the Kauai Island in Sep 1992.

Post restoration, the Coco Palms property will include 331 guestrooms, 32 bungalows, multiple restaurants, lounges and swimming pools as well as a community center.  The Coco Palms Resort is located in the Wailua area of southeastern Kauai, adjacent to the scenic town of Kapaa. The adjoining Wailua Beach and River, one of the biggest coconut groves on the Hawaiian Islands and the panoramic view of the Nounou Mountain will act as major crowd pullers for the property, in our opinion.

Even though the Hawaiian tourism industry was affected by the sluggishly recovering the U.S. economy, it has recovered quickly because of pent-up demand in domestic markets and expanding international flights. Therefore, the reopening will help Hyatt to tap into the increasing demand for hotels in the region.

Hyatt currently carries a Zacks Rank #3 (Hold). Better-performing stocks in the hotel industry include Intercontinental Hotels Group plc IHG, Marriott Vacations Worldwide Corp. VAC and Wyndham Worldwide Corporation WYN. All these stocks carry a Zacks Rank #2 (Buy).

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