Chinese economy hotel chain Home Inns says total revenue for the quarter ended September 30, 2007 increased by 66.1% year-over-year to RMB266.4 million.
"We had another strong quarter," said David Sun, Home Inn's CEO. "We continue to successfully grow the Home Inns hotel chain by adding more hotels and entering more cities while maintaining steady hotel performance, and we are able to do so in both first and second tier cities."
As of September 30, 2007, the Home Inns hotel chain consisted of 143 leased-and-operated hotels and 58 franchised-and-managed hotels in operation, with an additional 69 leased-and-operated hotels and 27 franchised-and-managed hotels under development, covering 77 cities in China. The average number of rooms per hotel in operation was 119.
Total revenues from leased-and-operated hotels for the third quarter of 2007 were RMB254.2 million, compared with RMB153.0 million for the third quarter of 2006, representing a 66.2% increase year-over-year. Home Inns opened 26 new lease-and-operated hotels during the third quarter of 2007. Total revenues from franchised-and-managed hotels for the third quarter of 2007 were RMB12.2 million, compared with RMB7.4 million for the third quarter of 2006, representing a 64.7% increase year-over-year. Home Inns opened four new franchised-and-managed hotels during the third quarter of 2007.
Occupancy rate for the entire Home Inns hotel chain was 95% in the third quarter of 2007, compared with 94% in the same period in 2006 and 95% in the previous quarter. Revenue per available room, or RevPAR in the third quarter of 2007 was RMB174, compared with RevPAR of RMB172 in the same period in 2006 and RMB174 in the previous quarter.
Total operating costs and expenses for the third quarter of 2007 were RMB211.2 million. Income from operations for the quarter was RMB39.5 million.