Core view
Tracking the rise and fall of the sector: this week’s sector Market (04180422): this week, the Shanghai Composite Index fell 3.87%, the Shenzhen Component Index fell 5.12%, and the gem index fell 6.66%. SW hotel sector fell 4.97%, and Huazhu group, the subject of Hong Kong stocks, fell 10.93%.
Industry weekly data tracking: the difference between supply and demand decreased slightly, and RevPAR rebounded month on month. From April 10 to April 16, the total supply of hotel rooms in China was 20.54 million nights (year-on-year + 2.8%), the total demand was 8.72 million nights (year-on-year – 41.4%), and the difference between supply and demand was 11.82 million nights (year-on-year + 132.0%). The gap between supply and demand improved slightly, down 6% month on month.
From April 10 to April 16, RevPAR of medium and high-end hotels rebounded to 151 yuan (year-on-year – 48.1%); RevPAR of medium and low-end hotels rebounded by 85 yuan (year-on-year – 54.6%). On a month on month basis, the hotel’s operating conditions improved slightly, with medium and high-end occupancy rate / RevPAR + 4.1pct / + 6.7% respectively on a month on month basis; Occupancy rate / RevPAR were + 4.6pct / + 13.6% month on month.
Announcement of the company: ST Donghai will continue to postpone the reply to the letter of concern of Shenzhen Stock Exchange and strive to complete the reply to the letter of concern on April 25, 2022. Prior to the Shenzhen Stock Exchange issued a letter of concern in April 14th, mainly concerned about the company’s profit in 2021, the company sells Baijiu products and whether the company has a continuous business capability.
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: repeated epidemic risks, the speed and structure of store expansion are lower than expected, the industry competition intensifies, and the macroeconomic growth slows down.
