Chinese budget hotel chain Home Inns & Hotels Management has announced its unaudited financial results for the quarter ended June 30, 2007.
Total revenues for the quarter increased 67.8 % year-over-year to RMB232.2 million. Income from operations was RMB37.3 million, an increase of 37.4% year-over-year. Excluding share-based compensation expenses, income from operations (non-GAAP) was RMB41.8 million, up 50.0% year-over-year. Net income for the quarter was RMB22.7 million.
During the second quarter of 2007, Home Inns opened 26 new hotels. As of June 30, 2007, the Home Inns hotel chain consisted of 117 leased-and-operated hotels and 54 franchised-and-managed hotels in operation, with an additional 50 leased-and-operated hotels and 13 franchised-and-managed hotels under development, covering 66 cities in China. The average number of rooms per hotel in operation is 120.
The occupancy rate for the Home Inns hotel chain was 95% in the second quarter of 2007, compared with 98% during the same period in 2006 and 86% in the previous quarter. RevPAR, defined as revenue per available room, was RMB174 in the second quarter of 2007, compared with RMB182 in the same period in 2006 and RMB151 in the previous quarter.
"We are pleased with our progress this quarter," said David Sun, Home Inn s CEO. "With a solid strategy and strong execution, we are maintaining our leadership position in the economy hotel market in China. We achieved an impressive occupancy rate and RevPAR in the quarter, even as we increased our penetration into second tier cities."
Home Inns expects its total revenues in the third quarter of 2007 to be in the range of RMB 258 million to RMB268 million.