KGI Securities has upgraded leading Thai hotel operator Erawan Group Pcl to "outperform", with its flagship hotel operating at full capacity after renovation and high demand for rooms at two new hotels opened in December.
KGI has a target price of 4.80 baht for the stock, up from 4.70 baht. At the midsession break, the shares were up 0.45 percent at 4.44 baht.
Grand Hyatt Erawan Bangkok started operating back at full capacity in the fourth quarter of 2012 after around half of its rooms were renovated in the second and third quarters.
"The renovation improves the room quality and thus enables the company to increase the room rate ... The average room rate has already increased 13.1 percent year-over-year in the fourth quarter of 2012," it said.
1234 (0534 GMT) (Reporting by Pairat Temphairojana in Bangkok; Editing by Sunil Nair)