News that high-end hotel operator Hyatt (NYSE: H) is launching 2 more brands in China is drawing attention to the market’s growing saturation, boding poorly for all operators as the nation’s economy slows. Hyatt and most of the other big western brands don’t disclose separate operating figures for China, but leading budget brands Home Inns (Nasdaq: HMIN) and China Lodging (Nasdaq: HTHT) act as good indicators for the market. And their latest quarterly results don’t paint a very rosy picture for the industry in the year ahead. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 13. To view a full article or story, click on the link next to the headline.
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Half Of IBM (NYSE: IBM) Workers Quit At Shenzhen Plant, 20 Fired (Chinese article)
Tencent (HKEx: 700) In Talks to Purchase Handset Manufacturer – Sources (English article)
Vipshop (NYSE: VIPS) Prices $550 Mln Convertible Notes, 1.14 Mln ADSs (PRNewswire)
Coke (NYSE: KU) Worries Over Draft Law On Bottled Water Labeling (Chinese article)
Home Inns (Nasdaq: HMIN) Reports Q4, Full Year 2013 Results (PRNewswire)
The following press releases and media reports about Chinese companies were carried on March 11. To view a full article or story, click on the link next to the headline.
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JD.com Rolls Out Financial Product Similar To Yu’ebao To Boost IPO (Chinese article)
E-House (NYSE: EJ) Announces Leju’s Plan For Proposed IPO (PRNewswire)
Home Inns (Nasdaq: HMIN) to Acquire Yunshang Siji Hotel Management Co (PRNewswire)
ZTE (HKEx: 763), The9 (Nasdaq: NCTY) to Release Game Console – Source (English article)
Ackman To Renew Attack On Herbalife (NYSE: HLF) With Aim On China Business (English article)
I have to admit I was a bit surprised to read a report that Jin Jiang (HKEx: 2006； Shanghai: 600754) has become the first of China’s hotel operators to expand on the global stage, with word that the Shanghai-based chain has signed a deal to enter Indonesia. I really expected one of the US-listed Chinese hotel companies like Home Inns (Nasdaq: HMIN) or China Lodging Group (Nasdaq: HTHT) to make that move first, since those companies are more entrepreneurial than the stodgier state-run Jin Jiang. But that said, this small move by Jin Jiang looks like a prudent way to test out international markets as it looks for global growth opportunities. Read Full Post…
Embattled hoteliers and restaurant operators whose business has been hit by China’s H7N9 bird flu outbreak are finally getting some relief with Shanghai’s formal cancellation of its bird flu emergency after the city went 3 weeks without any new cases. (English article) But companies could continue to feel the fallout from the scare for at least the next few months, with by Yum’s (NYSE: YUM) KFC perhaps the most vulnerable to longer term damage. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 14. To view a full article or story, click on the link next to the headline.
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AsiaInfo-Linkage (Nasdaq: ASIA) To be Acquired CITIC Capital Consortium (PRNewswire)
Jingdong Expects Profitability in Next 7-12 Months (English article)
Renren (NYSE: RENN) Shuts Down Mobile Projects – Source (English article)
Home Inns (Nasdaq: HMIN) Reports Q1 Financial Results (PRNewswire)
The latest stomach-churning results from fast food giant Yum (NYSE: YUM) are a good opportunity for an updated look at the impact that bird flu is having on companies that rely on the restaurant and travel industries in China. Somewhat ironically, these latest dismal results from the operator of KFC and Pizza Hut restaurants actually sparked a rally in Yum shares, since many were expecting the figures to be even worse than they were. Read Full Post…
Much is being written about the flurry of H7N9 bird flu cases in and around Shanghai, but few of the stories are focusing on the impact the outbreak is having on businesses. Chicken farmers and sellers are taking an obvious hit, but restaurants with a heavy presence of chicken and pork on their menus and Shanghai-based event organizers and supporting industries like hotels and airlines are also likely to suffer in this current bird flu event. Read Full Post…
Hotel operators must surely remember 2010 with fondness, as the year that saw Shanghai host the World Expo also saw their business boom with room prices rising by 20 percent or more and occupancy rates near 100 percent. But much has changed over the last 2 years, as reflected by the latest uninspired results from 7 Days Group (NYSE: SVN) and China Lodging Group (Nasdaq: HTHT), 2 of the nation’s biggest budget hotel chain operators.
In a theme that is rapidly gaining momentum, yet another US-listed Chinese firm has announced a new privatization bid to capitalize on valuations that have been pushed to rock-bottom levels amid a broader investor confidence crisis. The newest management-led buyout offer from 7 Days Group (NYSE: SVN), the smallest of China’s 3 publicly listed budget hotel operators, follows a string of similar moves that have seen other US-listed Chinese companies, including Shanda Interactive and Focus Media (Nasdaq: FMCN), make similar moves. So perhaps the more interesting question is: who are the most likely companies to launch similar privatization bids, as investors can clearly make some quick money if they can answer this question correctly.
I don’t know if it’s coincidence, but China’s top 3 US-listed hotel operators have all released their latest quarterly results on the same day, revealing a range of issues with a broader theme that points to stability in the industry despite China’s rapidly softening economy. The results from Home Inns (Nasdaq: HMIN), China Lodging Group (Nasdaq: HTHT) and 7 Days Group (NYSE: SVN) all tell slightly different stories, as each chain faces its own different issues. Based on my quick read, China Lodging seems to look the best right now, while Home Inns struggles with its recent mega-acquisition of Motel 168 and 7 Days faces operational issues.
Hotel operators must surely remember 2010 with fondness, as the year that saw Shanghai host the World Expo also saw their business boom with room prices rising by 20 percent or more and occupancy rates near 100 percent. But much has changed over the last 2 years, as reflected by the latest uninspired results from 7 Days Group (NYSE: SVN) and China Lodging Group (Nasdaq: HTHT), 2 of the nation’s biggest budget hotel chain operators.
In a theme that is rapidly gaining momentum, yet another US-listed Chinese firm has announced a new privatization bid to capitalize on valuations that have been pushed to rock-bottom levels amid a broader investor confidence crisis. The newest management-led buyout offer from 7 Days Group (NYSE: SVN), the smallest of China’s 3 publicly listed budget hotel operators, follows a string of similar moves that have seen other US-listed Chinese companies, including Shanda Interactive and Focus Media (Nasdaq: FMCN), make similar moves. So perhaps the more interesting question is: who are the most likely companies to launch similar privatization bids, as investors can clearly make some quick money if they can answer this question correctly.
I don’t know if it’s coincidence, but China’s top 3 US-listed hotel operators have all released their latest quarterly results on the same day, revealing a range of issues with a broader theme that points to stability in the industry despite China’s rapidly softening economy. The results from Home Inns (Nasdaq: HMIN), China Lodging Group (Nasdaq: HTHT) and 7 Days Group (NYSE: SVN) all tell slightly different stories, as each chain faces its own different issues. Based on my quick read, China Lodging seems to look the best right now, while Home Inns struggles with its recent mega-acquisition of Motel 168 and 7 Days faces operational issues.
