“China Lodging Shares Popped: What You Need to Know”

China Lodging Shares Popped: What You Need to Know

Posted: 11 Nov 2010 01:34 PM PST

By Travis Hoium | More Articles
November 11, 2010 |

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: China Lodging (Nasdaq: HTHT) shares jumped 10% today as Chinese hoteliers are trading higher.

So what: China Lodging posted earnings Monday that saw revenue up 48.4% and net income up 298%. Those results added fuel to today's move, which was driven by Home Inns & Hotels (Nasdaq: HMIN) posting better-than-expected numbers.

Now what: The Chinese hotel market is on fire and both China Lodging and Home Inns are riding the wave. Neither stock is priced just right for this Fool, but given a pullback in the next few weeks I would be more interested. These are long-term plays on the Chinese economy so don't panic over short-term bumps in the road when they come.

Interested in more info on China Lodging? Add it to your watchlist here by clicking here.

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