Hotels Snubbed Amid China Rally on Expansion Plans

As world-beating rallies in Shanghai and Hong Kong spill over to Chinese stocks traded in New York, shares of hotel operators Homeinns Hotel Group and China Lodging Group Ltd. are getting left behind.

While much of the market is soaring amid speculation the government will manage to shore up a slumping economy, investors are concerned it may be too late for hotel operators that overestimated growth in travel and aggressively expanded. Homeinns and smaller rival China Lodging have fallen at least 16 percent this year, as U.S.-traded Chinese stocks jumped 15 percent and the Shanghai Composite Index surged 25 percent.