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BofAML restarts HK&S Hotels (00045) at HK13.7
BofA Merrill Lynch reinstate coverage of Hong 
Kong and Shanghai Hotels (HSH)(00045) with an "underperform" rating and a target price of
HK$13.7.
  Within its hotels coverage universe, the research house said HSH has the highest 
exposure to the Hong Kong hotel market, where competitive pressure will heighten with a
surge in supply growth into the market.
  HSH's gearing is also likely to increase in the medium term with a heavy capex ahead for
its projects that are under development. BofAML believes RevPAR growth in HK will be 
weighed by a surge in hotel supply, with a rise in completion from 1,000 rooms in
2015-2016 to 4,000-5,000 in 2017-2018.
  The major high-end openings over the next 18 months include The Murray in Central, St
Regis in Wanchai and Rosewood in Tsim Sha Tsui. Peninsula Hong Kong could be cannibalized
by the new supply, in particular by Rosewood Hotel which will open during end-2018 in its
vicinity, it noted. 

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