Ctrip dips as analyst sees Olympic room shortage

Ctrip American Depositary Shares fell $1.18, or 2 percent, to $57.20. In the past year, the stock has traded between $35.91 and $70.89.

In a client note, Susquehanna analyst Chunming Zhao said his research indicates most of the rooms at more than 30 of the leading hotels in Beijing are reserved by the Beijing Olympic organizing committee for the Olympics.

Also, room rates could be 4 to 10 times higher than normal during the game period, which he expects will result in Ctrip customers changing or canceling travel plans.

With more than 15 percent of the company's booking volumes coming from Beijing, the analyst estimated Ctrip "could experience some significant slowdown in 3Q."

"We do not believe the one-time event should change the long-term growth potential of Ctrip, but investors may find a better buying opportunity than the present," said Zhao, who rates Ctrip shares "Neutral."

A Ctrip spokesperson could not immediately be reached for comment.