HOTEL stocks' performances improved last week as the overall market staged a rally to push the Hang Seng Index past 8,000. Autumn, which has traditionally been high season for the industry, is expected to see hotels in Kowloon and Hong Kong hitting an average room occupancy of 90 per cent. With the Hong Kong Tourist Association warning of a looming room shortage in two to three years because of the lack of development of new hotels in the territory, existing hotels are expected to enjoy higher occupancies and rates. Shangri-La Asia jumped 10 per cent to $7.15 after reporting a 155 per cent jump in net profits for the first half of this year to $189.75 million. The group has eight properties - two in Hong Kong and six in China. Despite China's austerity drive, the group does not expect its rooms and beverages businesses to suffer appreciably, as it believes business from industry and commerce will continue to grow. Mandarin Oriental continued to recover from its fall in share price after reporting disappointing interim results. Its shares rose 6.84 per cent to $7.80. Hong Kong and Shanghai Hotels increased 5.76 per cent to this year's high of $8.25. Miramar Hotel was the only stock to fall, sliding 14.6 per cent to $14.40.
