The handover and International Monetary Fund meeting this year will ensure the performance of shares in locally listed hotels will surpass regional rivals, tourism consulting firm Horwath Asia Pacific says.
The company said analysts at 14 of the largest securities houses in Asia agreed the profit outlook of Hong Kong hotels this year would outstrip Taipei, Phuket, Singapore and Beijing.
The analysts recommended Hong Kong & Shanghai Hotels, Regal Hotels International and the Mandarin Oriental Hotel Group as their favoured hotel stocks.
Hong Kong also was the most favourable market for listed hotel companies to raise new equity, they said.
Horwath Asia Pacific managing director Robert Stiles said the optimism stemmed from a strong economy.
'The fundamental strength is Hong Kong's economy and limited room supply. If business continues to improve in 1998 and 1999, that should support the hotel industry significantly.'
