Nomura maintained the Grand Hotel (0045.HK) buying rating; the target price was raised from HK$10.65 to HK$12.80. Profit expectations for the 2010—11 fiscal year were raised by 25% and 21%, respectively, due to improvements in the hotel business. Nomura said that the hotel industry rebounded sharply in the second half of the year, and the occupancy rate of Hong Kong hotels reached 79% in November (the highest level since 2009). Nomura expects that the Hong Kong business of major hotels will begin to improve, and businesses in other regions will also gradually pick up, which will raise their profit levels; the active repurchase of shares by major shareholders is another favorable factor. Hotels rose 1.79% yesterday to close at HK$11.38.