Core view
Tracking the rise and fall of the sector: this week’s sector Market (04060408): this week, the Shanghai Composite Index fell 0.94%, the Shenzhen Component Index fell 2.20%, and the gem index fell 3.64%. SW hotel sector fell 3.45%, and Huazhu group, the subject of Hong Kong stocks, fell 9.15%.
Industry weekly data tracking: affected by the epidemic control, the gap between hotel room supply and demand remained high and the operating data remained low. From March 27 to April 2, the total supply of hotel rooms in China was 20.53 million nights (year-on-year + 3.0%), the total demand was 7.82 million nights (year-on-year – 39.3%), and the difference between supply and demand was 12.71 million nights (year-on-year + 80.0%). The supply is relatively stable and the demand is at a low level, mainly due to the damage of business travel demand under the repeated epidemic.
The occupancy rate of medium and high-end hotels decreased to 37.8% (year-on-year – 21.0pct), ADR was 369 yuan (year-on-year – 10.1%), and RevPAR decreased to 140 yuan (year-on-year – 42.1%); The occupancy rate of medium and low-end hotels was 43.8% (year-on-year – 26.8pct), ADR was 174 yuan (year-on-year – 23.2%), and RevPAR was 76 yuan (year-on-year – 52.3%).
Announcement of the company’s shareholding reduction plan: completion of the bidding. Yuan Shouyuan, the director, reduced 25200 shares through centralized bidding, accounting for 000225% of the company’s shares; Duan Zhongpeng, deputy general manager and Secretary of the board of directors, reduced 19300 shares, accounting for 000172% of the company’s shares.
Investment suggestion: in the short term, the supply end of the hotel industry is cleared, the demand end is gradually repaired, and the logic of long-term chain and medium and high-end is clear. The leading companies in the industry have strong ability to expand stores and high brand premium. In the long term, they will fully enjoy the growth attributes brought by the rapid expansion of stores and price increase. In the short term, it is suggested to pay attention to the recovery of business travel demand. It is suggested to pay attention to the target Hotels with high market share in China: Shanghai Jin Jiang International Hotels Co.Ltd(600754) ( Shanghai Jin Jiang International Hotels Co.Ltd(600754) . SH), Huazhu group (1179. HK), Btg Hotels (Group) Co.Ltd(600258) ( Btg Hotels (Group) Co.Ltd(600258) . SH).
Risk tip: the epidemic situation is repeated, the speed and structure of store expansion are lower than expected, and the industry competition is intensified.
