Walt Disney Co (DIS): Disney’s Shanghai Surprise

As of the end of 2015, China Lodging had 616 leased hotels, 80 franchised hotels in operation and 2,067 manchised hotels. Manchising is popular in China – the company manages franchised hotels for a fee. Another 21 leased hotels and 656 manchised and franchised hotels were under construction at year-end.

China Lodging also has an exclusive strategic alliance with AccorHotels (OTC: ACCYY), the world’s leading hotel operator which has locations in 92 countries.

But even more importantly, China Lodging has a 25% revenue exposure to Shanghai. Many visitors to Shanghai Disneyland will be staying at one of China Lodging’s accommodations.

Nothing is ever a sure thing in investing. But China Lodging will very likely benefit from increased tourist traffic around Disney’s Shanghai park. This should give an already fast-growing company an additional turbo-charged boost.

This article is brought to you courtesy of Tony Daltorio from Wyatt Investment Research.

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