HWORLD-S (01179) saw its stock price soar by 5.75% in intraday trading, reaching HK$33.1 with a trading volume of HK$64.37 million. The surge comes as recent analyst reports highlight improving trends in the hotel industry's revenue per available room (RevPAR) and positive expectations for the company's third-quarter performance.

According to a Morgan Stanley research report, the hotel industry's RevPAR decline narrowed in Q3, driven by better-than-expected performance in September. This positive momentum has continued into October and is expected to persist through Q4. The bank anticipates HWORLD-S to outperform expectations in Q3, benefiting from favorable RevPAR trends and operational leverage. Similarly, Guosen Securities noted that the industry's Q3 RevPAR decline continued to narrow sequentially, indicating improving cyclical conditions and operational momentum.

Looking ahead, the hotel industry's outlook appears promising. BTG Hotels' management projects a Q4 RevPAR decline within the 0-3% range, signaling further stabilization. For the coming year, industry supply growth is expected to moderate, while potential policy-driven business travel recovery and flexible leisure travel arrangements could lead to earlier valuation recovery. These factors contribute to a positive sentiment surrounding HWORLD-S and the broader hotel sector, potentially explaining the stock's significant upward movement.