Hotel operators are the most recent leisure-related industry group to move into IBD’s group rankings. The 13-company group moved into the top 20 during the third week of August.Shanghai-based Home Inns & Hotels (HMIN) provided the bulk of the initial push. The stock gained 113% in the five weeks through Aug. 14. It has consolidated over the past four weeks, holding just below that high.
The chain, which owns 550 sites in China, was founded by the same entrepreneurs who started China-based travel site Ctrip.com.
Investors Business Daily reports that in May, Ctrip paid $50 million to double its stake in Home Inns to more than 18%.
Recent news reports have quoted Home Inns’ co-founder and co-chairman, Neil Shen, saying the company plans on having 1,000 locations within two years. About 60% of those will be franchises, a new expansion strategy for the company but normal practice within most hotel groups.