Hotel stock investors hope the easing of “zero-Covid” restrictions will gradually help boost visitors … [+]
China hotel chain Atour Lifestyle Holdings certainly picked a good day to list.
Buoyed by news of China’s plans to ease Covid restrictions that have hurt international arrivals, the Shanghai-based hotel chain surged 17% in its Nasdaq debut on Friday.
Atour, 14% owned by China’s largest online travel site Trip.com, had a network of 834 hotels in 151 cities in China as of June 30; there were 343 more hotels on standby. The business is run by Wang Haijun, a former executive vice president at H World Group, also one of China’s largest hotel chains.
Wang has a 30% stake in Atour worth $316 million on Friday; funds linked to Legend Capital of Beijing own nearly 11% of the company, whose shares closed at $12.88.
Nasdaq-traded shares of Trip.com also had a good day, climbing 4.9% to $28.84 amid hopes of easing shipping and quarantine rules (see previous post here), although no start date was announced measures.
H World Group, whose biggest shareholder is Chinese billionaire Ji Qi, also gained 12% in Nasdaq trading on Friday. GreenTree Hospital, another Shanghai-based hotel chain, rose 12% in New York trading.
China’s “zero-Covid” rules have curbed economic growth and helped lower stock prices in the No. 1 economy. 2 in the world last year. The combined wealth of the 100 members of Forbes’ 2022 China Rich List, revealed on Thursday, fell 39% from a year earlier to $907.1 billion, the biggest decline in wealth since Forbes began publishing the list of the richest. to the country’s rich more than two decades ago. (See details here.)
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