DBS has upgraded the hotel (00045-HK) rating from holding to buying, and also raised the target price from HK$9.8 to HK$13.12; as it raised earnings expectations and lowered the valuation discount margin compared to net asset value. According to the bank, the number of visitors to Hong Kong in November and December last year increased by 9.0% and 7.6%, respectively, compared to the same period last year, while the room occupancy rate in major hotels reached a high of 83% during the year. Room prices are expected to rise starting in the second quarter of 2010, or lead to further improvements in the company's earnings. Economic improvements in Hong Kong and other regions are expected to accelerate the recovery in the performance of major hotels. The Peninsula Hong Kong is the main source of major hotel performance, accounting for 30% of its total revenue. The Grand Hotel dropped 1.22% yesterday to close at HK$11.38.