HSBC Research: This Year's Spring Festival Holiday Extension Expected to Boost Hotel Performance Beyond Expectations

HSBC Research published a report indicating that this year's Spring Festival holiday extension led to a 19% increase in domestic tourist numbers and an 18.7% increase in tourism consumption, with per capita spending remaining basically flat. Hotel performance exceeded expectations, while liquor performance met expectations.

The report stated that with the continuous recovery of revenue per available room, the average stock price of the three major domestic hotel companies has risen by 6.1% so far this year. The bank expects that during the Spring Festival holiday, revenue per available room will achieve double-digit year-on-year growth driven by increases in both average room rates and occupancy rates.

The bank is optimistic about BUSYMING (01768.HK), Wanchen (300972.SZ), Weilong (09985.HK), Moutai (600519.SH), Midea (00300.HK)(000333.SZ), JINJIANG HOTELS (600754.SH), and BTG Hotels (600258.SH), all of which are given a "Buy" rating