Long Position on HTHT @ $39.88 on 3/19/2019 (Momentum)

Huazhu Group Limited (HTHT) develops and operates leased and owned, manachised, and franchised hotels primarily in the People's Republic of China.

The company operates hotels under the Hi Inn, HanTing Hotel, Elan Hotel, Orange Hotel, HanTing Premium, Starway Hotel, JI Hotel, Orange Hotel Select, Manxin Hotel, Crystal Orange Hotel, Joya Hotel, Grand Mercure, Novotel, Mercure, Ibis Styles, and Ibis brand names for business and leisure travelers.

As of December 31, 2017, it had 671 leased and owned hotels; 2,874 manachised hotels; and 201 franchised hotels in operation, as well as 37 leased and owned hotels, and 659 manachised and franchised hotels under development.

Under the manachise model, the Company manages manachised hotels through the onsite hotel managers the Company appoints and collects fees from franchisees. Under the franchise model, the Company provides training, reservation and support services to the franchised hotels and collects fees from franchisees.

Joya Hotel

The Company's Joya Hotel focuses on travelers and corporate events. The Joya Hotels offer various services, including complimentary breakfast, afternoon tea, snacks, mini bar free drinks, gym, automatic massage cabins and other services. The rooms are equipped with high-speed fiber access, wireless coverage and Bluetooth speakers. The Company has approximately three Joya Hotels in operation and over one Joya Hotel under development.

Manxin Hotels & Resorts

The Company's Manxin Hotels & Resorts focuses on leisure travelers, families and small-scale corporate events. Manxin Hotels & Resorts focuses on vacation destinations. Manxin Hotels & Resorts offer room, breakfast buffet, lunch, afternoon tea, dinner and Chinese style housekeeping services. The Company has approximately two Manxin Hotels & Resorts in operation and over four Manxin Hotels & Resorts under development.

JI Hotel

The Company's JI Hotel focuses on travelers seeking an experience in hotel stays. JI Hotels offer rooms with three-star to four-star hotels. In addition, these hotels offer complimentary wireless Internet access throughout the premises, lobbies with laser printers, computers, free drinks, and a cafe serving breakfast and simple meals. The Company has approximately 190 JI Hotels in operation and an over 90 JI Hotels under development.

Starway Hotel

The Company's Starway Hotel focuses on middle class travelers. Starway Hotels offer rooms in three-star to four-star hotels. In addition, these hotels offer complimentary Internet access throughout the premises, lobbies and meeting areas with complimentary tea and coffee. The Company has approximately 120 Starway Hotels in operation and an over 70 Starway Hotels under development.

Elan Hotel

The Company's Elan Hotel is the economy hotel product, which focuses on business travelers, young customers and urban tourists. The Company has approximately 150 Elan Hotels in operation and over 70 Elan Hotels under development.

HanTing Hotel

The Company's HanTing Hotel is the economy hotel product, which focuses on knowledge workers and value- and quality-conscious travelers, marketed under the name of HanTing Express Hotel. The HanTing Hotels have lobbies with complimentary wireless Internet access and laser printers, and a cafe serving breakfast and meals. Rooms are equipped with a mattress, plush buckwheat and cotton pillows, shower facilities, an outlet for free broadband Internet access, a working desk and chair, and universal and uninterruptable power sockets. The Company has approximately 2,000 HanTing Hotels in operation and over 290 HanTing Hotels under development.

Hi Inn

The Company's Hi Inn hotel is the budget hotel product, which focuses rational and price-conscious travelers, marketed under the name of HanTing Hi Inn. Hi Inns offer compact rooms with beds and shower facilities and complimentary wireless Internet access throughout the premises. These hotels provide basic accommodations. The Company has approximately 300 Hi Inns in operation and over 140 Hi Inns under development.

Shares have formed a bullish "flag" following its recent earnings report. Higher share prices are expected for this stock.

Entry Point: $39.88

Stop Loss: $38.0

52-Weeks Trading Range: $24.90 - $49.60

Target Price: $44.00

Updates

4/1/2019 11:15:17 AM

HTHT closed at $44.55

Position closed on 4/1/2019 at price of $44.55 with a 11.71% gain in 13 days.

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