Goldman Sachs downgraded the hotel (00045-HK) rating from neutral to sold, but raised the target price from 12.25 yuan to 12.8 yuan, as the number of independent travelers is expected to rise in the future.

Goldman Sachs said that the Grand Hotel business in the US will continue to lose money and overshadow the strong recovery performance in Asia, although revenue growth is still lower than that of rival Shangri-La (00069-HK). Also, even though the occupancy rate of high-priced hotels in Hong Kong increased 8% year-on-year, the performance of the company's Hong Kong Peninsula Hotel in the second quarter was only flat.

Grand Hotel rose 1.45% yesterday to close at HK$13.96.