Table of contents
While near-term macro headwinds persist longer-than-expected... 3
...we see structural growth drivers intact for economy hotels 5
We see current valuation discounting crisis-level RevPAR decline 6
Portfolio expansion is key to earnings growth, in our view 7
Our risk/reward analysis favors economy hotels 8
Refreshing our views: Prefer economy hotels, add HMIN to CL Buy 10
Home Inns (HMIN): Attractive risk-reward profile; add to CL-Buy 12
China Lodging (HTHT, Buy): Off CL, but Buy on strong execution 14
Disclosure Appendix 20