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China Lodging (HTHT) is IPO pick of March 22wk

|Includes: Home Inns & Hotels Management Inc. (HMIN), SVN, WYN

China Lodging Group (NASDAQ:HTHT)

IPO pick for the week of March 22, 2010, scheduled to price Friday, March 26

. Based on an industry report HTHT generates the best numbers among economy hotel chains in China
. The most direct competitor is 7 Days Group (NYSE:SVN), which IPO’d November 19, 2009 at $11 and is now $10.40.  HTHT is priced at a discount relative to 7 Days Group’s for the three major ratios: Price-to-Sales, P/E and  Price-to-Book Value
. HTHT’s founder also founded Ctrip.com (CTRP, $9.84bb market cap) and Home Inns (HMIN, $1.3bb market cap)
. Plus CTRP intends to buy 8% of HTHT at the IPO price, this is a ringing & very important endorsement

Read more IPOreport


Disclosure: none