` 1179 (Huazhu Group Ltd) vs Hang Seng (Hong Kong) Comparison - Alpha Spread

1179
vs
H
Hang Seng (Hong Kong)

Over the past 12 months, Huazhu Group Ltd has underperformed Hang Seng (Hong Kong), delivering a return of +6% compared to the Hang Seng (Hong Kong)'s +36% growth.

Stocks Performance
1179 vs Hang Seng (Hong Kong)

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1179
Hang Seng (Hong Kong)
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Performance Gap
1179 vs Hang Seng (Hong Kong)

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1179
Hang Seng (Hong Kong)
Difference
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Performance By Year
1179 vs Hang Seng (Hong Kong)

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1179
Hang Seng (Hong Kong)
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Competitors Performance
Huazhu Group Ltd vs Peers

Hang Seng (Hong Kong)
1179
BKNG
GCE
HTHTN
RCL
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Huazhu Group Ltd
Glance View

Market Cap
80.5B HKD
Industry
Hotels, Restaurants & Leisure

Huazhu Group Ltd., founded in 2005 by visionary entrepreneur Qi Ji, has blossomed into a formidable force within the hospitality industry, standing as one of China’s largest hotel operators. Initially inspired by the rising demand for budget-friendly accommodations among China's middle class, Huazhu carved its niche by offering a wide array of hotel brands, each tailored to distinct customer segments. From the economic Hanting Hotel to the more upscale Joya Hotel brand, the company effectively taps into a range of consumer preferences, ensuring that travelers from all walks of life find fitting comfort under its umbrella. By 2023, Huazhu had not only cemented its dominance in China with thousands of properties under its management but expanded its footprint internationally through strategic acquisitions and partnerships, notably with its acquisition of Deutsche Hospitality, a move that opened doors to the European market. In terms of operations, Huazhu employs an asset-light model that focuses on franchise and lease-and-operate arrangements, allowing it to accelerate growth without heavy capital outlays typical of hotel ownership. This efficiency is reflected in its revenue streams that primarily flow from room bookings, complemented by membership programs that bolster customer loyalty and frequent engagement. The group's model is further supported by digital innovations, leveraging robust IT infrastructure to streamline operations, enhance customer experience, and collect data insights. By continuously refining its offerings and tapping into technological advancements, Huazhu not only secures its income through high occupancy rates and consistent pricing strategies but also positions itself as a dynamic leader ready to capitalize on shifting travel trends in the post-pandemic landscape.

Intrinsic Value
37.06 HKD
Undervaluation 30%
Intrinsic Value
Price
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