Daiwa analyst Carlton Lai downgraded Huazhu Group to Outperform from Buy with an unchanged price target of $40. While the company closed out 2018 with "solid" Q4 results, its fastest growth period is now in the past, Lai tells investors in a research note. He sees Huazhu's 2018 adjusted EBITDA growth of 37% slowing to 21% year-over-year in 2019. Further, a reduction in RevPAR visibility, more investments in building soft bands and net gearing "that is starting to look stretched" create rising risks, Lai tells investors in a research note. The analyst also expects Q1 RevPAR growth across the China hotel industry to be weak in Q1.

Macquarie analyst Sunny Chow initiated coverage of H World Group with an Outperform rating and $48 price target.