Deutsche Bank reiterated its rating for Grand Hotel (0045.HK) as selling, with a lower expectation of HK$5.3. According to the bank, the hotel has invested more than HK$1 billion to develop a new Paris project. Although it is beneficial to the company's long-term profit growth and help increase shareholder returns, it is not expected to contribute in the short term. However, in an environment where the economy in the Asia-Pacific region is weak, Deutsche Bank said that the hotel business is still facing adverse factors in the weakening of the industry, and it is expected that its earnings in 2008 and 09 will decline. The stock fell 2.03% yesterday to close at HK$5.78.