Industry rallies in share market

MAJOR hotel groups have shown strong performance in their share prices and analysts believe the sector is ready for a cyclical recovery to 1998.

Regal Hotels International Holdings outperformed the Hang Seng Index by 0.39 per cent in the last two trading weeks of last month. The share rose 11 cents last week to close at $1.82 on Friday.

Yesterday, it added four cents to $1.86.

SHK Securities analyst Lawrence Chan attributed the performance to the group's expansion plan.

A spin-off plan of the group's hotel interests in the United States was likely to stimulate the upward price movement, he said.

The group has 27 hotels with 8,000 rooms in the US.

The spin-off was expected to be finalised next year, Mr Chan said.