This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Home Inns & Hotels' CEO Discusses Q1 2012 Results - Earnings Call Transcript

As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on Home Inns Investor Relations website at english.homeinns.com.

I will now turn the call to our CEO, David Sun.

David Sun

Hello, everyone, and thank you for joining us today to discuss our first quarter results. Our core Home Inns operational performance was stable and Motel 168 integration continued to generate positive results despite a tough market environment and similarly low travel volume in the first quarter of 2012.

We reported total revenue of RMB1.26 billion for the first quarter, which is slightly above our guidance. This 66% revenue growth included consolidated first quarter results from Motel 168 that we acquired on September 30, 2011. Excluding Motel 168, our core business generated revenue growth of 23% organic growth. This was mainly result from new unit growth while performance from our mature hotel group remained stable.

Most specifically, 716 hotels that were in operation for at least 18 months during the first quarter gained 1.3% in RevPAR on the same hotels base year over year. As of March 31, 2012, nearly 30% of total of 1,168 Home Inns hotels were located in the third-tier cities and below, where overall ADR are meaningfully low in general than upscale cities market. These low-tier cities are still on their way to achieve full economic expansion even with our unique geographic diversity [inaudible] average daily rates flat at RMB165 year over year and combined with an occupancy rate of 84.4% compared with 85.1% in the same period of 2011. We generated RevPAR of RMB149 compared to RMB150 a year ago. These operating results are reasonable [sound] and within our expectations for the first quarter.

Occupancy rate at Motel 168 was 17.4%, down from 73.5% in the previous quarter. ADR grew 3% to RMB158 from RMB154 in the fourth quarter of last year. The resulting RevPAR of RMB111 compared to RMB113 last quarter was in line with our expectations. During the first quarter, we further reduced the scale of food and beverage operations as Motel 168 by 10% from last quarter, but still achieved total RMB327 million of revenues, which was at the high end of our guidance in the fourth quarter.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs