Hyatt Hotels Corporation and China Lodging Group Limited share a lot of similar brand characteristics – both are leaders in the field of hospitality and operate numerous hotels giving each group a relatively similar key count of approximately in the range of 150,000. But how do they differ in terms of investment, ownership structure and market performance, and which is the overall better business? We take a look inside these two hotel giants.
Currently Hyatt grosses more in revenue than China Lodging Group, mainly due to the affordability of its shares. Its share price to earning ratio is almost half that of China Lodging Group, and its annual revenue beats China Lodging’s by nearly three times as much, with China Lodging’s gross revenue sitting at $1.05 billion, while Hyatt’s is at a cool $2.72 billion annually.
This information aldo dovetails into what we know about the investor patterns of each company. Hyatt is 30.7% owned by institutional investors, compared to 38% of China Lodging Group. This indicates strong market performance in the long term and confidence on the part of investors and hedge funds that the shares are strong.
Although Hyatt brings in more revenue each year, China Lodging Group makes more profit across the board when net margin profitability, return on equity and return on assets were analysed. China Lodging’s figures are more than double those of Hyatt in every case, with profitability percentages sitting between 9% and 17%. And although China Lodging Group’s stock price has been assessed to be three times as volatile on the market as that of Hyatt’s, this hasn’t stopped China Lodging Group coming out on top over a total of 14 categories, leading the way in 9 of the 14. Although Hyatt might be more of a household name, and China’s hotel industry makes headlines weekly, China Lodging Group Limited seems to be the surer thing from an investment point of view.
Let’s take a look at some projects currently underway by Hyatt:
Hyatt Centric Waikiki Beach
The Waikiki Trade Center will be turned into a boutique hotel, according to the center’s owner. The upscale hotel, tentatively being called “Waikiki Trade Center Hotel,” could become a Hyatt Centric-branded property, targeting business travelers primarily.[READ MORE…]
Grand Hyatt San Francisco International Airport
351 soundproofed guest rooms (including 21 suites), Direct connectivity to AirTrain Station, 15,200 square feet of net meeting space (excluding pre-function areas), 90-seat three-meal restaurant [READ MORE…]
Park Hyatt Marrakech
Al Maaden Development is designed to offer guests and residents luxurious rooms in a dramatic setting with a view of the Atlas Mountains. Amenities include a resort center, Park Hyatt meeting residences, specialty restaurant, luxury spa, private villas, and an artist’s medina. [READ MORE…]
More information on Hyatt and China Lodging Group can be found on TOPHOTELPROJECTS, the specialized service provider in the exchange of cutting-edge information of hotel construction in the international hospitality industry.