Shares in Merlin Entertainments rose after Morgan Stanley said the market had failed to appreciate a plan to expand the hotel business.
Merlin has a total of 3,600 hotel rooms in 20 hotels, and plans to add a further 2,000 by the end of the decade. Morgan Stanley said that might be too conservative, and that Merlin could have 7,000 rooms by 2022.
The availability of a hotel makes a theme park a national destination, Morgan Stanley said. Merlin operates Alton Towers.
