Home Inns: Profit in the first quarter surges

Home Inns has released its first-quarter performance report. In the first quarter the company s profit reaches to 46.1 million Yuna, an increase of 100 times. The profit in the same period of last year was 452,000 Yuan; total revenue is 682.9 million Yuan, increasing 28% ; earnings per share is 0.54 Yuan, while earnings per share in the same period of a year earlier is -0.20 Yuan.

The report also shows that Home Inns opened 22 new franchised hotels in the first quarter of this year. Hotel occupancy rate in the first quarter is 90.5%, while the hotel occupancy rate in the same period of 2009 is 82.6%. And in the fourth quarter of 2009 it is 92.9%. The average daily revenue per room is 144 Yuan in the first quarter, while it is 130 Yuan in the same period of 2009. And in the fourth quarter of 2009 the average daily revenue per room is 149 Yuan. This is mainly due to the good performance of the Chinese macro-economy and the reduce of the number of new hotels.

Home Inns expects that its total revenue will be 790 million Yuan or 810 million Yuan in the second quarter of 2010, increasing by 23%-26% compared with the second quarter of 2009. Home Inns also raises its expectation of the full year operating results. It is expected that the operating income in the whole year of 2010 will be 20% -24% higher than a year ago. This is mainly due to the growing Chinese economy and the company s enhancing operation efficiency. Home Inns also plans to open 180-200 hotels this year.