HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>A partial disposal of Club Med is positive for <a href="https://www.smartkarma.com/entities/fosun-tourism-group" target="_blank" data-smartkarma-citation="entities:27439:1" rel="noopener">Fosun Tourism (1992 HK)</a>. The market is speculating <a href="https://www.smartkarma.com/entities/capitaland-investment-ltd-sing" target="_blank" data-smartkarma-citation="entities:33774:1" rel="noopener">CapitaLand Investment /Sing (CLI SP)</a> is paying EUR500m for a 20-30% stake.</li>
<li>Club Med generated 91.7% of its 1H24 operating profit. The rumoured valuation will boost its value by HK$6.9/share, 1.2x of the share price if true.</li>
<li>We see reasons for such disposal, and if happens, this will align the stock's valuation to international peers - 26.2x for FY24, vs. its 11.3x currently.</li>
</ul>


A partial disposal of Club Med is positive for Fosun Tourism (1992 HK). The market is speculating CapitaLand Investment /Sing (CLI SP) is paying EUR500m for a 20-30% stake.
Club Med generated 91.7% of its 1H24 operating profit. The rumoured valuation will boost its value by HK$6.9/share, 1.2x of the share price if true.
We see reasons for such disposal, and if happens, this will align the stock's valuation to international peers - 26.2x for FY24, vs. its 11.3x currently.


Fosun Tourism (1992 HK): Is Club Med Disposal Happening?

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
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Marriott International / Equity Bottom-Up

<ul><li>Marriott International's third-quarter financial performance for 2024 indicated a mixture of growth and existing challenges within the global hospitality landscape.</li><li>The company reported a 6% year-over-year increase in net rooms, underscoring its robust expansion efforts and strong development activities.</li><li>Global Revenue Per Available Room (RevPAR) rose 3% for the quarter, fueled by a 2.5% increase in Average Daily Rate (ADR), with the group segment leading the charge, posting a 10% rise in RevPAR, which highlights the sustained demand in this category.</li></ul>

Marriott International's third-quarter financial performance for 2024 indicated a mixture of growth and existing challenges within the global hospitality landscape.The company reported a 6% year-over-year increase in net rooms, underscoring its robust expansion efforts and strong development activities.Global Revenue Per Available Room (RevPAR) rose 3% for the quarter, fueled by a 2.5% increase in Average Daily Rate (ADR), with the group segment leading the charge, posting a 10% rise in RevPAR, which highlights the sustained demand in this category.

Why Marriott International’s Expansion in Greater China Could Be a Game-Changer for Investors! - Major Drivers

<ul><li>Marriott International presented its Q2 2024 earnings with a blend of positive outcomes and lingering challenges.</li><li>The company, headlined by President and CEO Tony Capuano, highlighted robust travel demand across most markets leading to strong quarterly performance.</li><li>Global RevPAR increased nearly 5%, driven by a 3% rise in the average daily rate and an occupancy boost to 73%, marking a 150 basis point rise compared to the previous year.</li></ul>

Marriott International presented its Q2 2024 earnings with a blend of positive outcomes and lingering challenges.The company, headlined by President and CEO Tony Capuano, highlighted robust travel demand across most markets leading to strong quarterly performance.Global RevPAR increased nearly 5%, driven by a 3% rise in the average daily rate and an occupancy boost to 73%, marking a 150 basis point rise compared to the previous year.

Marriott International Inc.: How Is The Expansion of Luxury & Lifestyle Portfolio Panning Out? - Major Drivers

<ul><li>Marriott International's first quarter 2024 earnings reveal several positive trends that reflect the resilience of the company in the wake of the pandemic.</li><li>The company reported a solid start to 2024 with a 4.2% increase in global RevPAR (Revenue per available room), an important indicator of the company's financial health.</li><li>Occupancy reached almost 66%, up nearly 100 basis points year-over year and ADR (Average daily rate) increased around 3%.</li></ul>

Marriott International's first quarter 2024 earnings reveal several positive trends that reflect the resilience of the company in the wake of the pandemic.The company reported a solid start to 2024 with a 4.2% increase in global RevPAR (Revenue per available room), an important indicator of the company's financial health.Occupancy reached almost 66%, up nearly 100 basis points year-over year and ADR (Average daily rate) increased around 3%.

Marriott International: Symbiotic Strengths Fueling Marriott's Market Dominance! - Major Drivers

<ul><li>Marriott International delivered strong results in 2023 due to robust demand for travel and an increasing portfolio of over 30 leading brands.</li><li>The global room revenue per available room (RevPAR) grew nearly 15%, and net rooms increased 4.7%, driving profitable growth in earnings and cash flows.</li><li>For the fourth quarter, global RevPAR rose over 7% year-on-year, propelled by roughly equal growth in average daily rate (ADR) and occupancy levels.</li></ul>

Marriott International delivered strong results in 2023 due to robust demand for travel and an increasing portfolio of over 30 leading brands.The global room revenue per available room (RevPAR) grew nearly 15%, and net rooms increased 4.7%, driving profitable growth in earnings and cash flows.For the fourth quarter, global RevPAR rose over 7% year-on-year, propelled by roughly equal growth in average daily rate (ADR) and occupancy levels.

Marriott International: Increased Demand from Corporates and Leisure Customers Changing The Game? - Major Drivers

United States

Marriott International Inc. is a worldwide operator and franchisor of hotels. The Company franchises lodging facilities and vacation timesharing resorts under various brand names. Marriott also provides services to home and condominium owner associations for projects associated with several of its brands.

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Marriott International (MAR US)

Fosun Tourism (1992 HK): Is Club Med Disposal Happening?

Fosun Tourism remains suspended, and we are awaiting an announcement. Speculation is that it involves privatisation by its parent, Fosun Intl....

Osbert Tang, CFA

Why Marriott International’s Expansion in Greater China Could Be a Game-Changer for Investors! - Major Drivers

Marriott International's third-quarter financial performance for 2024 indicated a mixture of growth and existing challenges within the global...

Baptista Research

Marriott International Inc.: How Is The Expansion of Luxury & Lifestyle Portfolio Panning Out? - Major Drivers

Marriott International presented its Q2 2024 earnings with a blend of positive outcomes and lingering challenges. The company, headlined by...

Baptista Research

Marriott International: Symbiotic Strengths Fueling Marriott's Market Dominance! - Major Drivers

Marriott International's first quarter 2024 earnings reveal several positive trends that reflect the resilience of the company in the wake of the...

Baptista Research

Marriott International: Increased Demand from Corporates and Leisure Customers Changing The Game? - Major Drivers

Marriott International delivered strong results in 2023 due to robust demand for travel and an increasing portfolio of over 30 leading brands. The...

Baptista Research

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