Hyatt Inks Management Deal with EPDI - Analyst Blog

An affiliate of Hyatt Hotels Corporation H and Emirates Pearl for Development & Investment L.L.C. (EPDI) entered into an agreement for the management of Grand Hyatt hotel in Abu Dhabi. The hotel — Grand Hyatt Abu Dhabi Hotel & Residences Emirates Pearl — is scheduled to open in 2015.

EPDI is a joint venture between a subsidiary of Atlas Group and Tourism Development & Investment Company (TDIC). Atlas Group is an Abu Dhabi-based business conglomerate, with diverse operations, while TDIC develops major tourism, cultural and residential destinations in Abu Dhabi.

The 47-storied hotel will be located on the southwest end of the Coastal Boulevard in the upscale Ras Al Akhdar district of central Abu Dhabi. The hotel's close proximity to shopping malls and tourist attractions and easy access to and from Abu Dhabi International Airport would act as a major crowd puller. Additionally, the 368-room hotel will feature other amenities like 60 fully-furnished service apartments, restaurants, lounge, bars, extensive meeting areas and a modern spa and fitness center.

Though traditionally second to Dubai as a tourist destination, Abu Dhabi offers investors an attractive and convenient place for business. A projected 15% growth of the tourism sector this year, primarily boosted by the general recovery of the business sentiment in the region, has prompted Hyatt to tap in on the growing demand for hotels.

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

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