HWORLD-S (01179) surged nearly 6%, reaching HK$33.1 by the time of writing, with a trading volume of HK$64.37 million. According to a recent Morgan Stanley research report, the decline in revenue per available room (RevPAR) for the hotel industry narrowed in Q3, driven by better-than-expected performance in September. This positive momentum extended into October and is likely to continue into Q4. The bank expects HWORLD-S to outperform expectations in Q3, demonstrating favorable RevPAR trends and operational leverage benefits. Guosen Securities noted that the hotel industry's Q3 RevPAR decline continued to narrow sequentially, highlighting improving cyclical conditions and operational momentum. Post-September and the National Day holiday, RevPAR stabilized further, led by business travel demand. The management of BTG Hotels projected a Q4 decline within the 0-3% range. Looking ahead to next year, industry supply growth is expected to moderate, while potential policy-driven business travel recovery and flexible leisure travel arrangements could lead to earlier valuation recovery ahead of the industry cycle turning point.