Home Inns Group Reports Fourth Quarter and Full Year 2013 Financial Results

2,180 Hotels in 287 Cities in China at Year End

Full Year Income from Operations Improved 91.6% and EBITDA Grew 37.2%

12 Mar, 2014, 17:00 ET from Home Inns & Hotels Management Inc.

SHANGHAI, March 12, 2014 /PRNewswire/ -- Home Inns & Hotels Management Inc. (NASDAQ: HMIN) ("Home Inns Group" or "the Company"), a leading economy hotel chain in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2013. 

Fourth Quarter and Full Year 2013 Financial Highlights

  • Total revenues increased 9.8% to RMB 1.61 billion (US$265.9 million) for the fourth quarter of 2013 and increased 10.1% to RMB 6.35 billion (US$1.05 billion) for the full year of 2013, which was within the guidance range.
  • EBITDA (non-GAAP) increased 35.5% to RMB 254.9 million (US$42.1 million) for the fourth quarter of 2013 and increased 37.2% to RMB 1,165.6 million (US$192.6 million) for the full year of 2013.  Adjusted EBITDA (non-GAAP) increased 28.2% to RMB 333.9 million (US$55.2 million) for the fourth quarter of 2013 and increased 22.7% to RMB 1.39 billion (US$229.8 million) for the full year of 2013.

Key Financial Results

(RMB in Millions except RMB per ADS)

4Q13

4Q12

V%

FY13

FY12

V%

Total Revenues

1,609.7

1,465.7

9.8%

6,353.0

5,769.7

10.1%

Income from Operations

105.5

36.3

191.1%

524.6

273.7

91.6%

     Adj. Income from Operations*

127.2

79.2

60.5%

625.6

464.1

34.8%

Net Income

12.9

6.3

104.7%

196.2

(26.8)

F

     Adj. Net Income*

91.8

80.6

13.9%

422.8

300.3

40.8%

EBITDA

254.9

188.2

35.5%

1,165.6

849.5

37.2%

     Adj. EBITDA*

333.9

260.5

28.2%

1,391.2

1,133.4

22.7%

Diluted Earnings per ADS

0.27

0.14

92.9%

4.20

(0.59)

F

     Adj. Diluted Earnings per ADS*

1.91

1.74

9.8%

8.83

6.62

33.4%

Note: Consolidation of Motel 168 financial results started on October 1, 2011 "V%" represents year-over-year percentage change in amounts "F" denotes a favourable change when the prior period amount was negative * Indicates a non-GAAP financial measure which excludes share-based compensation expenses, integration expenses, upfront fee amortization of term loans, accelerated fee amortization on early extinguishment of Term Loan, gain or loss on change in fair value of convertible notes, gain or loss on change in fair value of interest swap transaction and net foreign exchange gain or loss (see commentary at the end of this earnings release for full details).

Fourth Quarter and Full Year 2013 Operational Highlights

  • Home Inns Group opened 437 new hotels in 2013 and operated 2,180 hotels across 287 cities in China under its three brands as of December 31, 2013.  There were a total of 417 viable hotel projects in the development pipeline at the end of 2013, including 161 hotels contracted or under construction (136 of which were franchised-and-managed hotels) and 256 hotels under due diligence (all of which were franchised-and-managed hotels), demonstrating continued strong interest in the three hotel brands within Home Inns Group.

                        Hotels Count                  

    Openings   

    Closures   

Group

Home Inn

Motel 168

Yitel

4Q13

FY13

4Q13

FY13

Total number of Hotels

2,180

1,784

378

18

139

437

10

29

     Leased-and-Operated

872

696

163

13

22

77

2

8

     Franchised-and-Managed

1,308

1,088

215

5

117

360

8

21

Contracted/under Construction

161

135

19

7

     Leased-and-Operated

25

17

7

1

     Franchised-and-Managed

136

118

12

6

Under Due Diligence

256

228

23

5

  • As of December 31, 2013, Home Inns Group had a total of 16.9 million unique active non-corporate members under its frequent guests program.

Operating Metrics

4Q2013

3Q2013

4Q2012

FY2013

FY2012

Occupancy Rate

84.0%

89.4%

83.8%

86.1%

86.1%

Average Daily Rate (ADR, RMB)

163

173

165

165

168

Revenue per Available Room (RevPAR, RMB)

137

154

138

142

144

  • For the fourth quarter of 2013, occupancy rate increased by 0.2% while ADR decreased by 1.2%, resulting in a year-over-year decrease of 0.7% in RevPAR.  The decrease in ADR was mainly due to soft market conditions and absence of pricing opportunities in the fourth quarter of 2013.  The sequential decrease in RevPAR was due to seasonality.
  • For the full year of 2013, occupancy rate remained stable, while ADR decreased by 1.8%, resulting in a year-over-year decrease of 1.4% in RevPAR.  The year-over-year decrease in ADR has narrowed compared to a year ago as market conditions stabilized and the hotels in lower tier cities continued to ramp up towards maturity. 

"Despite the weak market environment, our revenue results are within expectations, and the Company achieved continued margin expansion for the fourth consecutive quarter in 2013," said Mr. David Sun, the Company's chief executive officer.  "We exceeded our new hotel opening target, achieved stable performance from our mature hotels, and delivered improved earnings and profitability through the growth of our franchised-and-managed business, operational improvement from Motel 168 hotels, and effective cost control initiatives and productivity gains."

"While we are experiencing near term challenges in the macro environment, we continue to believe in the long-term growth prospects of China's travel and lodging industry," Mr Sun continued. "In the earlier years, we operated predominantly with the leased-and-operated business model while delivering rapid revenue growth.  Today, the Company has transformed into a franchise-focused growth portfolio enabling continued unit growth to strengthen its leadership in market presence.  As a result, , we expect a more moderate revenue growth going forward, but we  feel confident in the underlying business structure we have built to deliver stable margin expansion, meaningful earnings growth and increasing cash generation to create greater value for our shareholders."

Detailed Overview of Financial Results for Fourth Quarter and Full Year 2013

Total Revenues

(RMB/USD in Millions)

       Fourth Quarter 2013     

           Full Year 2013          

RMB

USD

V%

RMB

USD

V%

    Leased-and-Operated Hotels

1,401.6

231.5

7.4%

5,587.5

923.0

8.2%

    Franchised-and-Managed Hotels

208.0

34.4

29.4%

765.5

126.5

26.5%

Total Revenues

1,609.7

265.9

9.8%

6,353.0

1,049.4

10.1%

Less: Business Taxes and Related Surcharges

-98.5

-16.3

9.3%

-391.8

-64.7

10.9%

Net Revenues

1,511.2

249.6

9.9%

5,961.2

984.7

10.1%

Note: "V%" represents year-over-year percentage change in amounts

  • The year-over-year increases in total revenues from both leased-and-operated and franchised-and-managed hotels in the fourth quarter and full year of 2013 were mainly driven by an increase in the number of hotels in operation.  The Company continues to focus on the franchised-and-managed business model which it expects will represent the majority of new hotel openings over the next few years.

Total Operating Costs and Expenses / Total Operating Income

(RMB/USD in Millions)

Fourth Quarter 2013

Adjusted

GAAP Results

Reconciliation

Non-GAAP Results

RMB

USD

Vpts

RMB_

USD

   RMB

__USD

Vpts

Leased-and-Operated Hotel Costs

1,246.0

205.8

-5.1pts

3.5

0.6

1,242.5

205.2

-3.8pts

Franchised-and-Managed Hotel Personnel Costs

31.9

5.3

0.3pts

2.7

0.5

29.1

4.8

0.3pts

Sales and Marketing Expenses

47.0

7.8

1.2pts

0.4

0.1

46.6

7.7

1.2pts

General and Administrative Expenses

81.4

13.4

-0.6pts

15.0

2.5

66.4

11.0

-0.3pts

Total Operating Costs and Expenses

1,406.3

232.3

-4.1pts

21.6

3.6

1,384.7

228.7

-2.6pts

Total Operating Income

105.5

17.4

4.1pts

21.6

3.6

127.2

21.0

2.5pts

(RMB/USD in Millions)

Full Year 2013

Adjusted

GAAP Results

Reconciliation

Non-GAAP Results

RMB

USD

Vpts

RMB_

USD

   RMB

__USD

Vpts

Leased-and-Operated Hotel Costs

4,867.0

804.0

-3.9pts

21.7

3.6

4,845.3

800.4

-2.6pts

Franchised-and-Managed Hotel Personnel Costs

157.3

26.0

0.3pts

11.0

1.8

146.3

24.2

0.3pts

Sales and Marketing Expenses

109.9

18.2

0.4pts

1.5

0.3

108.4

17.9

0.4pts

General and Administrative Expenses

313.5

51.8

-0.6pts

66.9

11.0

246.6

40.7

-0.1pts

Total Operating Costs and Expenses

5,447.7

899.9

-3.6pts

101.1

16.7

5,346.6

883.2

-1.9pts

Total Operating Income

524.6

86.7

3.6pts

101.1

16.7

625.6

103.3

1.8pts

Note: "Vpts" represents year-over-year change in percentage points of total revenues

Total operating costs and expenses were RMB 1.41 billion (US$232.3 million) for the fourth quarter of 2013, representing 87.4% of total revenues for the quarter, and RMB 5.45 billion (US$ 899.9 million) for the full year of 2013, representing 85.8% of total revenues for the year.  Total operating costs and expenses excluding any share-based compensation expenses and acquisition and integration costs (non-GAAP) for the fourth quarter of 2013 were 86.0% of total revenues, compared to 88.6% in the same period a year ago, and 84.2% for the full year of 2013 compared to 86.1% for the full year of 2012.

  • Total leased-and-operated hotel costs were RMB 1.25 billion (US$205.8 million) for the fourth quarter of 2013, representing 88.9% of the leased-and-operated hotel revenues for the quarter compared to 92.6% in the same period a year ago, and RMB 4.87 billion (US$804.0 million) for the full year of 2013, representing 87.1% of the leased-and-operated revenues for the year compared to 89.9% for the full year of 2012.  Total leased-and-operated hotel costs excluding any share-based compensation expenses and acquisition and integration costs (non-GAAP) were 88.6% of the leased-and-operated hotel revenues in the fourth quarter of 2013 compared to 91.0% in the same period a year ago, and 86.7% for the full year of 2013 compared to 88.1% for the full year of 2012.  The year-over-year decreases in total leased-and-operated hotel costs as a percentage of leased-and-operated hotel revenues for both the fourth quarter and the full year of 2013 were mainly due to continued productivity gains at the hotel operational level.

Pre-opening cost was RMB 13.5 million (US$2.2 million) for the fourth quarter of 2013 and RMB 77.9 million (US$12.9 million) for the full year of 2013.

  • Personnel costs of franchised-and-managed hotels were RMB 31.9 million (US$5.3 million) for the fourth quarter of 2013, representing 15.3% of the franchised-and-managed hotel revenues for the quarter, which was unchanged from the same period a year ago, and RMB 157.3 million (US$26.0 million) for the full year of 2013, representing 20.6% of the franchised-and-managed revenues for the year compared to 20.7% for the full year of 2012.  Personnel costs of franchised-and-managed hotels excluding share-based compensation expenses (non-GAAP) were 14.0% of franchised-and-managed hotel revenues in the fourth quarter of 2013, compared to 13.8% in the same period of 2012, and 19.1% for the full year of 2013, which was unchanged from the full year of 2012. 
  • Sales and marketing expenses were RMB 47.0 million (US$7.8 million) for the fourth quarter of 2013, representing 2.9% of total revenues for the quarter compared to 1.7% in the same period a year ago, and 109.9 million (US$18.2 million) for the full year of 2013, representing 1.7% of total revenues compared to 1.3% for the full year of 2012. Sales and marketing expenses excluding share-based compensation expenses (non-GAAP) were 2.9% of total revenues for the fourth of quarter 2013 compared to 1.7% in the same period of 2012, and 1.7% of total revenues for the full year of 2013 compared to 1.3% of total revenues in 2012.  Both year-over-year increases in the sales and marketing expenses as a percentage of total revenues for the fourth quarter and full year were mainly due to increased spending on marketing programs including mobile apps development and implementation in support of Home Inns Group's multi-brand strategy and increased cost associated with the Company's member rewards program.  The Company's on-going marketing efforts remained cost-effective to support steady revenue expansion.
  • General and administrative expenses were RMB 81.4 million (US$13.4 million) for the fourth quarter of 2013, representing 5.1% of total revenues compared to 5.7% in the same period a year ago, and RMB 313.5 million (US$51.8 million) for the full year of 2013, representing 4.9% of total revenues compared to 5.5% for the full year of 2012.  General and administrative expenses excluding any share-based compensation expenses, and acquisition and integration costs (non-GAAP) were 4.1% of total revenues for the quarter compared to 4.5% in the same period of 2012, and 3.9% of total revenues for the full year of 2013 compared to 4.0% for the full year of 2012.  The year-over-year decreases in general and administrative expenses as a percentage of total revenues in both the fourth quarter and full year of 2013 were driven by effective cost control initiatives at headquarters with continued leverage from economies of scale.

Income from Operations was RMB 105.5 million (US$17.4 million) for the fourth quarter of 2013 and RMB 524.6 million (US$86.7 million) for the full year of 2013.  Income from operations excluding share-based compensation expenses and integration cost (non-GAAP) for the fourth quarter of 2013 was RMB 127.2 million (US$21.0 million), or 7.9% of total revenues, compared to RMB 79.2 million, or 5.4% of total revenues, in the same period of 2012.  Income from operations excluding share-based compensation expenses and integration cost (non-GAAP) for 2013 was RMB 625.6 million (US$103.3 million), or 9.8% of total revenues, compared to RMB 464.1 million, or 8.0% of total revenues, in 2012.  The year-over-year increases in the income from operations margin rate for both the fourth quarter and full year of 2013 were mainly driven by the increasing higher-margin revenue contribution from franchised-and-managed operations, continued operational improvements from Motel 168 hotels, and meaningful cost control savings and productivity gains from both the hotel level and corporate headquarters.

EBITDA (non-GAAP)  

(RMB/USD in Millions) 

             Fourth Quarter 2013            

                     Full Year 2013                   

RMB

USD

%Rev

V%

RMB

USD

%Rev

       V%

EBITDA (Non-GAAP)

254.9

42.1

15.8%

35.5%

1,165.6

192.6

18.3%

37.2%

     Net Foreign Exchange (Gain) / Loss

-13.6

-2.2

-0.8%

-49.8

-8.2

-0.8%

     Share-Based Compensation Expenses

19.6

3.2

1.2%

86.0

14.2

1.4%

     Accelerated Fee Amortization due to Early

     Extinguishment of Term Loan

-

-

-

41.9

6.9

0.7%

     Integration Cost

2.0

0.3

0.1%

15.0

2.5

0.2%

     Non-Operating Income

-

-

-

-0.9

-0.2

0.0%

     Loss on Fair Value Change in Convertible Notes

70.9

11.7

4.4%

133.4

22.0

2.1%

Adjusted EBITDA (Non-GAAP)

333.9

55.2

20.7%

28.2%

1,391.2

229.8

21.9%

22.7%

Note: "%Rev" represents amount as a percentage of total revenues

         "V%" represents year-over-year percentage change in amounts

 Consolidated Net Income Attributable to Home Inns Group's Shareholders

(RMB/USD in Millions)    

              Fourth Quarter 2013         

                      Full Year 2013                

RMB

USD

%Rev

V%

RMB

USD

    %Rev

       V%

Net Income (GAAP)

12.9

2.1

0.8%

104.7%

196.2

32.4

3.1%

           F

     Net Foreign Exchange (Gain) / Loss

-13.6

-2.2

-0.8%

-49.8

-8.2

-0.8%

     Share-Based Compensation Expenses

19.6

3.2

1.2%

86.0

14.2

1.4%

     Integration Cost

2.0

0.3

0.1%

15.0

2.5

0.2%

     Amortization of Upfront Fees on Term Loan

-

-

-

1.0

0.2

0.0%

     Accelerated Fee Amortization on Early

     Extinguishment of Term Loan Interest

-

-

-

41.9

6.9

0.7%

     Non-Operating Income

-

-

-

-0.9

-0.2

0.0%

     Loss on Fair Value Change in Convertible Notes         

70.9

11.7

4.4%

133.4

22.0

2.1%

Adjusted Net Income (Non-GAAP)

91.8

15.2

5.7%

13.9%

422.8

69.8

6.7%

40.8%

Note: "%Rev" represents amount as a percentage of total revenues

         "V%" represents year-over-year percentage change in amounts

         "F" denotes favourable changes when the prior period amount was negative

Basic and Diluted Earnings Per Ordinary Share and Per ADS

          Fourth Quarter 2013     

            Full Year 2013           

Ordinary Share

ADS Share

Ordinary Share

ADS Share

RMB

USD

RMB

USD

RMB

USD

RMB

USD

Basic

0.14

0.02

0.27

0.05

2.12

0.35

4.23

0.70

Diluted

0.14

0.02

0.27

0.04

2.10

0.35

4.20

0.69

Adjusted Basic (Non-GAAP)

0.98

0.16

1.96

0.32

4.56

0.75

9.12

1.51

Adjusted Diluted (Non-GAAP)

0.96

0.16

1.91

0.32

4.41

0.73

8.83

1.46

Cash Flow

Net operating cash flow for the fourth quarter of 2013 was RMB 276.8 million (US$45.7 million), compared to RMB 217.7 million in the same period of 2012.  Capitalized expenditures for the fourth quarter of 2013 were RMB 320.6 million (US$53.0 million), while related cash paid for capital expenditures during the quarter was RMB 271.4 million (US$44.8 million).  

For the full year of 2013, net operating cash flow was RMB 1.19 billion (US$195.8 million), compared to RMB 747.8 million in 2012.  Capitalized expenditures for 2013 were RMB 929.5 million (US$153.5 million), while related cash paid for capital expenditures during the year was RMB 897.5 million (US$148.3 million).  

Balance Sheet

As of December 31, 2013, Home Inns Group had cash and cash equivalents of RMB 1.16 billion (US$191.1 million).  The outstanding balance of convertible notes issued in December 2010 (measured at fair value) was RMB 1.16 billion (US$191.2 million).  The outstanding balance of the U.S. dollar-denominated three-year term loan was RMB 713.3 million (US$117.8 million).

Outlook for First Quarter and Full Year 2014

Home Inns Group targets to open no less than 450 new hotels in 2014, including approximately 70 to 90 leased-and-operated hotels and 360 to 380 franchised-and-managed hotels. 

Home Inns Group expects total revenues for the group for 2014 to be in the range of RMB 6,800 million to RMB 7,000 million, representing a growth of 7.0% to 10.2% over 2013.  Total revenues for the group in the first quarter of 2014 are expected to be in the range of RMB 1,460 million to RMB 1,490 million.

These forecasts reflect our current and preliminary views and are subject to change.

This announcement contains translations of certain RMB amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.0537 to US$1.00, the noon buying rate for December 31, 2013 set forth in the H.10 statistical release of the Federal Reserve Board.

Key Personnel Change

Huiping Yan will be resigning as chief financial officer effective April 30, 2014, in pursuit of opportunities outside of the Company.  Ms. Yan joined the Company in July 2009 as the senior vice president of finance and strategy and was later promoted to chief financial officer on May 1, 2010.  A search for a replacement has commenced and May Wu, our current chief strategy officer and former chief financial officer, will be acting CFO effective from May 1, 2014, until a suitable candidate comes on board.

Conference Call Information

Management will hold an earnings conference call at 9 PM U.S. Eastern Time on Wednesday, March 12, 2014 (9 AM Beijing/Hong Kong Time on Thursday, March 13, 2014).

Dial-in details for the earnings conference call are as follows:

U.S. (toll free):

1.866.519.4004

U.S.:                                  

1.845.675.0437

China Mainland:              

800.819.0121 or 400.620.8038

Hong Kong (toll free):     

800.930.346

Hong Kong:                      

852.2475.0994 

U.K. (toll free):                

080.8234.6646

U.K.:                                

44.2030.598.139

Australia (toll free):         

1.800.457.076

Taiwan (toll free):           

008.0112.6920

International:                           

65.6723.9381

Pass code for all regions:

Home Inns

A replay of the conference call may be accessed by phone at the following numbers until the end of Thursday, March 20, 2014 U.S. Eastern Time.

U.S. toll free:                

1.855.452.5696

China toll free:             

800.870.0205 or 400.602.2065

Hong Kong toll free:    

800.963.117

International:                          

61.2.8199.0299

Conference ID number:          

90487869

Live and archived webcasts of this conference call will be available at http://english.homeinns.com.

About Home Inns Group

Home Inns Group is a leading economy hotel chain in China based on number of hotels and hotel rooms as well as geographic coverage of the hotel chain. Since the Company commenced operations in 2002, it has built Home Inns as one of the best-known economy hotel brands in China. In October of 2011, the Company acquired Motel 168, another well-known hotel chain in China, as its second economy hotel brand. Home Inns Group aims to offer a consistent product and high-quality services to primarily serve the fast growing population of value-conscious individual business and leisure travelers who demand clean, comfortable and convenient lodging. Home Inns Group's ADSs, each of which represents two ordinary shares, are currently trading on the NASDAQ Global Select Market under the symbol "HMIN." For more information about Home Inns Group, please visit http://english.homeinns.com.

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Any statements in this press release that are not historical facts are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; the economic conditions of China; the regulatory environment in China; our ability to attract customers and leverage our brand; trends and competition in the lodging industry; the expected growth of the lodging market in China; our expected successful consolidation and integration of Motel 168 with our existing operations; and other factors and risks detailed in our filings with the Securities and Exchange Commission.  This press release also contains statements or projections that are based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by us to be accurate, nor does it purport to be complete. We undertake no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Non-GAAP Financial Measures

To supplement Home Inns Group's unaudited consolidated financial results presented in accordance with U.S. GAAP, Home Inns Group uses the following non-GAAP measures:

(a)   total operating costs and expenses excluding share-based compensation expenses and acquisition and integration costs (b)   total leased-and-operated hotel costs excluding share-based compensation expenses and integration costs (c)   personnel costs of franchised-and-managed hotels excluding share-based compensation expenses (d)   sales and marketing expenses excluding share-based compensation expenses (e)   general and administrative expenses excluding share-based compensation expenses and acquisition and integration costs (f)    income from operations excluding share-based compensation expenses and acquisition and integration costs (g)   adjusted net income attributable to shareholders excluding any share-based compensation expenses, foreign exchange gain or loss, acquisition and integration cost, upfront fee amortization of term loan, gain or loss from fair value change of convertible notes and interest swap derivatives and other non-operating expenses (h)   adjusted basic and diluted earnings per ADS and per share excluding foreign exchange gain or loss, share-based compensation expenses, gain on buy-back of convertible bonds, issuance costs for convertible notes, gain or loss from fair value change of convertible notes, acquisition and integration cost, non-operating expenses and upfront fee amortization of term loan, and (i)    adjusted EBITDA excluding foreign exchange gain or loss, share-based compensation expenses, gain on buy-back of convertible bonds, issuance costs for convertible notes, gain or loss from fair value change of convertible notes, acquisition and integration costs, non-operating expenses and upfront fee amortization of term loan 

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

Home Inns Group believes that, used in conjunction with GAAP financial measures, these non-GAAP financial measures provide meaningful supplemental information regarding the Group's performance, and both management and investors benefit from referring to these non-GAAP financial measures in assessing the Group's performance and when planning and forecasting future periods. Management believes that EBITDA, defined as earnings before interest, income tax expense, depreciation and amortization, is a useful financial metric to assess Home Inns Group's operating and financial performance before the impact of investing and financing transactions and income taxes.  In addition, management believes that EBITDA is widely used by other companies in the lodging industry and may be used as an analysis tool by both management and investors to measure and compare Home Inns Group's operational and financial performance with industry peers.

One of the limitations of using non-GAAP income from operations, EBITDA, adjusted EBITDA and non-GAAP net income attributable to shareholders is that they do not include all items that impact Home Inns Group's net income (loss) for the period.  These non-GAAP measures exclude share-based compensation expenses, foreign exchange gain or loss and gain or loss from fair value change of convertible notes, which have been and will continue to be a significant recurring expense in Home Inns Group's business. In addition, Home Inns Group's EBITDA and adjusted EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as Home Inns Group does.  Management compensates for this and other limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure.  Home Inns Group computes the non-GAAP financial measures using the same consistent method from quarter to quarter. Reconciliations of GAAP and non-GAAP results are included at the end of this press release. The non-GAAP adjustment items do not include the tax impact.

The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that Home Inns Group's future results will be unaffected by other charges and gains Home Inns Group considers to be outside the ordinary course of its business.

Home Inns Group completed its acquisition of 100% equity interest in Motel 168, and took control of Motel 168 effective on October 1, 2011.  Home Inns Group has consolidated Motel 168's operating and financial results since October 1, 2011.  Home Inns Group has presented certain separated financial data of Motel 168 in this earning release for the purpose of providing more information to investors.  Home Inns Group had substantially completed Motel 168's integration as of the third quarter of 2013 and ceased to present separate operating metrics and revenues for Motel 168.

For investor and media inquiries, please contact:

Johnny Wang Home Inns & Hotels Management Inc. Tel: +86-21-3337-3333*3870 Email: johnnywang@homeinns.com

Cara O'Brien FTI Consulting Tel: +852-3768-4537 Email: cara.obrien@fticonsulting.com

Home Inns & Hotels Management Inc.

Unaudited Condensed Consolidated Balance Sheet

December 31, 2012

December 31, 2013

RMB '000

RMB '000

US$ '000

ASSETS

Current assets:

Cash and cash equivalents

663,156

1,156,743

191,080

Restricted cash

205,739

173,276

28,623

Accounts receivable, net

98,176

99,964

16,513

Receivables from related parties

6,818

5,509

910

Consumables

41,600

41,231

6,811

Prepayments and other current assets

172,534

181,232

29,937

Deferred tax assets

80,369

78,839

13,023

Total current assets

1,268,392

1,736,794

286,897

Investment in a jointly controlled entity

6,625

5,832

963

Property and equipment, net

3,846,835

4,049,337

668,903

Goodwill

2,254,631

2,254,631

372,439

Intangible assets, net

1,149,419

1,112,499

183,772

Other assets

117,350

86,027

14,211

Non-current deferred tax assets

310,762

407,564

67,325

Total assets

8,954,014

9,652,684

1,594,510

LIABILITIES

Current liabilities:

Accounts payable

76,825

89,170

14,730

Payables to related parties

3,798

3,029

500

Short term loans

12,571

-

-

Finance lease liabilities

6,660

1,376

227

Salaries and welfare payable

215,569

222,865

36,815

Income tax payable

76,382

88,551

14,628

Other taxes payable

27,761

31,344

5,178

Deferred revenues

202,874

202,949

33,525

Other unpaid and accruals

165,886

228,881

37,808

Other payables

925,134

911,641

150,593

Deferred tax liability

29,439

52,155

8,615

Total current liabilities

1,742,899

1,831,961

302,619

Long term loans

735,404

713,337

117,835

Deferred rental

631,618

691,456

114,220

Deferred revenues

45,089

54,075

8,933

Finance lease liabilities

1,620

-

-

Deposits due to franchisees

91,462

115,351

19,055

Other long term payables

10,620

20,537

3,392

Unfavorable lease liabilities

370,548

337,627

55,772

Financial liabilities 2

1,066,771

1,157,295

191,172

Deferred tax liabilities

288,321

283,522

46,834

Total liabilities

4,984,352

5,205,161

859,832

Commitments and contingencies

Shareholders' equity

Ordinary shares (US$0.005 par value; 200,000,000 shares authorized, 91,672,320 and 94,814,866 shares issued and outstanding as of December 31, 2012 and December 31 2013, respectively)

3,574

3,671

606

Additional paid-in capital

2,802,905

3,080,596

508,878

Statutory reserves

158,417

206,892

34,176

Retained earnings

992,505

1,140,252

188,356

Total Home Inns shareholders' equity

3,957,401

4,431,411

732,016

Noncontrolling interests

12,261

16,112

2,662

Total  shareholders' equity

3,969,662

4,447,523

734,678

Total liabilities and shareholders' equity

8,954,014

9,652,684

1,594,510

Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.0537 on December 31, 2013, representing the certificated exchange rate published by the Federal Reserve Board.

Note 2:Financial liabilities represent convertible notes  measured at fair value.

 

Home Inns & Hotels Management Inc.

Unaudited Condensed Consolidated Statement of Operations

Quarter Ended

Year Ended

December 31, 2012

September 30, 2013

December 31, 2013

December 31,2012

December 31,2013

RMB '000

RMB '000

RMB '000

US$ '000

RMB '000

RMB '000

US$ '000

Revenues:

 Leased-and-operated hotels 

1,304,958

1,535,082

1,401,635

231,534

5,164,799

5,587,480

922,986

 Franchised-and-managed hotels 

160,724

204,078

208,048

34,367

604,936

765,491

126,450

 Total revenues 

1,465,682

1,739,160

1,609,683

265,901

5,769,735

6,352,971

1,049,436

 Less: Business tax and related surcharges 

(90,149)

(106,150)

(98,490)

(16,269)

(353,418)

(391,821)

(64,724)

 Net revenues 

1,375,533

1,633,010

1,511,193

249,632

5,416,317

5,961,150

984,712

 Operating costs and expenses: 

    Leased-and-operated hotel costs – 

 Rents and utilities 

(514,213)

(533,571)

(533,188)

(88,076)

(1,953,243)

(2,108,924)

(348,369)

 Personnel costs 

(245,909)

(273,501)

(256,064)

(42,299)

(1,037,371)

(1,073,754)

(177,372)

 Depreciation and amortization 

(158,078)

(172,918)

(180,503)

(29,817)

(612,789)

(692,945)

(114,466)

 Consumables, food and beverage 

(99,834)

(89,792)

(92,034)

(15,203)

(351,338)

(343,029)

(56,664)

 Others 

(190,804)

(172,590)

(184,221)

(30,431)

(687,254)

(648,299)

(107,091)

    Total leased-and-operated hotel costs 

(1,208,838)

(1,242,372)

(1,246,010)

(205,826)

(4,641,995)

(4,866,951)

(803,962)

    Personnel costs of Franchised-and-managed hotels 

(24,581)

(54,120)

(31,855)

(5,262)

(125,031)

(157,314)

(25,986)

    Sales and marketing expenses 

(24,793)

(24,193)

(47,040)

(7,770)

(76,878)

(109,935)

(18,160)

    General and administrative expenses 

(83,408)

(86,745)

(81,406)

(13,447)

(315,235)

(313,480)

(51,783)

 Total operating costs and expenses 

(1,341,620)

(1,407,430)

(1,406,311)

(232,305)

(5,159,139)

(5,447,680)

(899,891)

 Other income 

2,341

1,272

637

105

16,558

11,089

1,832

 Income from operations 

36,254

226,852

105,519

17,432

273,736

524,559

86,653

 Interest income 

861

2,151

2,331

385

11,874

6,216

1,027

 Interest expenses 

(17,393)

(12,687)

(11,958)

(1,975)

(119,416)

(54,149)

(8,945)

 Accelerated fee amortization on early extinguishment of Term Loan 

-

-

-

-

-

(41,872)

(6,917)

 (Loss)/gain from equity investment 

(493)

84

(466)

(77)

(2,305)

(792)

(131)

 Loss on change in fair value of convertible notes 

(45,356)

(57,275)

(70,870)

(11,707)

(87,099)

(133,404)

(22,037)

 Non-operating income 

19,683

19,019

20,879

3,450

43,248

53,663

8,864

 Non-operating expenses 

-

(1,000)

-

-

(6,665)

(1,000)

(165)

 Foreign exchange gain, net 

14,974

8,576

13,551

2,238

217

49,830

8,231

 Income before income tax expenses and noncontrolling interests 

8,530

185,720

58,986

9,746

113,590

403,051

66,580

 Income tax expense 

(964)

(78,157)

(46,374)

(7,660)

(136,305)

(206,997)

(34,193)

 Net income/(loss) 

7,566

107,563

12,612

2,086

(22,715)

196,054

32,387

 Less:Net (income)/loss attributable to noncontrolling interests 

(1,286)

440

241

40

(4,061)

168

28

 Net income/(loss) attributable to ordinary shareholders 

6,280

108,003

12,853

2,126

(26,776)

196,222

32,415

Earnings per share

- Basic

0.07

1.16

0.14

0.02

(0.29)

2.12

0.35

- Diluted

0.07

1.16

0.14

0.02

(0.29)

2.10

0.35

Weighted average ordinary shares outstanding

- Basic

91,027

92,790

93,880

93,880

90,805

92,676

92,676

- Diluted

92,445

93,398

94,440

94,440

90,805

93,418

93,418

Share-based compensation expense was included in the statement of operations as follows:

Leased-and-operated hotel costs - Personnel costs

2,038

1,887

1,789

296

8,199

7,904

1,306

Personnel costs of Franchised-and-managed hotels

2,476

2,700

2,743

453

9,578

11,013

1,819

Sales and marketing expenses

354

343

431

71

1,535

1,514

250

General and administrative expenses

17,620

16,153

14,656

2,421

74,064

65,584

10,834

Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.0537 on December 31, 2013, representing the certificated exchange rate published by the Federal Reserve Board.

 

Home Inns & Hotels Management Inc.

Reconciliation of GAAP and Non-GAAP Results

Quarter Ended December 31, 2013

GAAP Result

%of Total Revenue

Share-based Compensation

 Integration  cost

%of Total Revenue

Non-GAAP Result

%of Total Revenue

RMB '000

RMB '000

RMB '000

RMB '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Leased-and-operated hotel costs

(1,246,010)

77.4%

1,789

1,704

0.2%

(1,242,517)

77.2%

Personnel costs of Franchised-and-managed hotels

(31,855)

2.0%

2,743

-

0.2%

(29,112)

1.8%

Sales and marketing expenses

(47,040)

2.9%

431

-

0.0%

(46,609)

2.9%

General and administrative expenses

(81,406)

5.1%

14,656

317

0.9%

(66,433)

4.1%

Total operating costs and expenses

(1,406,311)

87.4%

19,619

2,021

1.3%

(1,384,671)

86.0%

Income from operations

105,519

6.6%

19,619

2,021

1.3%

127,159

7.9%

Quarter Ended December 31, 2013

GAAP Result

%of Total Revenue

Share-based Compensation

 Integration  cost

%of Total Revenue

Non-GAAP Result

%of Total Revenue

US$ '000

US$ '000

US$ '000

US$ '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Leased-and-operated hotel costs

(205,826)

77.4%

296

281

0.2%

(205,249)

77.2%

Personnel costs of Franchised-and-managed hotels

(5,262)

2.0%

453

-

0.2%

(4,809)

1.8%

Sales and marketing expenses

(7,770)

2.9%

71

-

0.0%

(7,699)

2.9%

General and administrative expenses

(13,447)

5.1%

2,421

52

0.9%

(10,974)

4.1%

Total operating costs and expenses

(232,305)

87.4%

3,241

333

1.3%

(228,731)

86.0%

Income from operations

17,432

6.6%

3,241

333

1.3%

21,006

7.9%

Quarter Ended September 30, 2013

GAAP Result

%of Total Revenue

Share-based Compensation

 Integration  cost

%of Total Revenue

Non-GAAP Result

%of Total Revenue

RMB '000

RMB '000

RMB '000

RMB '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Leased-and-operated hotel costs

(1,242,372)

71.4%

1,887

2,818

0.3%

(1,237,667)

71.2%

Personnel costs of Franchised-and-managed hotels

(54,120)

3.1%

2,700

-

0.2%

(51,420)

3.0%

Sales and marketing expenses

(24,193)

1.4%

343

-

0.0%

(23,850)

1.4%

General and administrative expenses

(86,745)

5.0%

16,153

335

0.9%

(70,257)

4.0%

Total operating costs and expenses

(1,407,430)

80.9%

21,083

3,153

1.4%

(1,383,194)

79.5%

Income from operations

226,852

13.0%

21,083

3,153

1.4%

251,088

14.4%

Quarter Ended December 31, 2012

GAAP Result

%of Total Revenue

Share-based Compensation

 Integration  cost

%of Total Revenue

Non-GAAP Result

%of Total Revenue

RMB '000

RMB '000

RMB '000

RMB '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Leased-and-operated hotel costs

(1,208,838)

82.5%

2,038

19,933

1.5%

(1,186,867)

81.0%

Personnel costs of Franchised-and-managed hotels

(24,581)

1.7%

2,476

-

0.2%

(22,105)

1.5%

Sales and marketing expenses

(24,793)

1.7%

354

-

0.0%

(24,439)

1.7%

General and administrative expenses

(83,408)

5.7%

17,620

558

1.2%

(65,230)

4.5%

Total operating costs and expenses

(1,341,620)

91.5%

22,488

20,491

2.9%

(1,298,641)

88.6%

Income from operations

36,254

2.5%

22,488

20,491

2.9%

79,233

5.4%

Year Ended December 31, 2013

GAAP Result

%of Total Revenue

Share-based Compensation

 Integration  cost

%of Total Revenue

Non-GAAP Result

%of Total Revenue

RMB '000

RMB '000

RMB '000

RMB '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Leased-and-operated hotel costs

(4,866,951)

76.6%

7,904

13,761

0.3%

(4,845,286)

76.3%

Personnel costs of Franchised-and-managed hotels

(157,314)

2.5%

11,013

-

0.2%

(146,301)

2.3%

Sales and marketing expenses

(109,935)

1.7%

1,514

-

0.0%

(108,421)

1.7%

General and administrative expenses

(313,480)

4.9%

65,584

1,286

1.1%

(246,610)

3.9%

Total operating costs and expenses

(5,447,680)

85.8%

86,015

15,047

1.6%

(5,346,618)

84.2%

Income from operations

524,559

8.3%

86,015

15,047

1.6%

625,621

9.8%

Year Ended December 31, 2013

GAAP Result

%of Total Revenue

Share-based Compensation

 Integration  cost

%of Total Revenue

Non-GAAP Result

%of Total Revenue

US$ '000

US$ '000

US$ '000

US$ '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Leased-and-operated hotel costs

(803,962)

76.6%

1,306

2,273

0.3%

(800,383)

76.3%

Personnel costs of Franchised-and-managed hotels

(25,986)

2.5%

1,819

-

0.2%

(24,167)

2.3%

Sales and marketing expenses

(18,160)

1.7%

250

-

0.0%

(17,910)

1.7%

General and administrative expenses

(51,783)

4.9%

10,834

212

1.1%

(40,737)

3.9%

Total operating costs and expenses

(899,891)

85.7%

14,209

2,486

1.6%

(883,197)

84.2%

Income from operations

86,653

8.3%

14,209

2,486

1.6%

103,347

9.8%

Year Ended December 31, 2012

GAAP Result

%of Total Revenue

Share-based Compensation

 Integration  cost

%of Total Revenue

Non-GAAP Result

%of Total Revenue

RMB '000

RMB '000

RMB '000

RMB '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Leased-and-operated hotel costs

(4,641,995)

80.5%

8,199

83,744

1.6%

(4,550,052)

78.9%

Personnel costs of Franchised-and-managed hotels

(125,031)

2.2%

9,578

-

0.2%

(115,453)

2.0%

Sales and marketing expenses

(76,878)

1.3%

1,535

48

0.0%

(75,295)

1.3%

General and administrative expenses

(315,235)

5.5%

74,064

13,160

1.5%

(228,011)

4.0%

Total operating costs and expenses

(5,159,139)

89.4%

93,376

96,952

3.3%

(4,968,811)

86.1%

Income from operations

273,736

4.7%

93,376

96,952

3.3%

464,064

8.0%

Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.0537 on December 31, 2013, representing the certificated exchange rate published by the Federal Reserve Board.

 

Home Inns & Hotels Management Inc.

Reconciliation of GAAP and Non-GAAP Results (continued)

Quarter Ended

Year Ended

December 31, 2012

September 30, 2013

December 31, 2013

December 31, 2012

December 31, 2013

RMB '000

RMB '000

RMB '000

US$ '000

RMB '000

RMB '000

US$ '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Net income attributable to ordinary shareholders (GAAP)

6,280

108,003

12,853

2,126

(26,776)

196,222

32,415

Foreign exchange gain, net

(14,974)

(8,576)

(13,551)

(2,238)

(217)

(49,830)

(8,231)

Share-based compensation

22,488

21,083

19,619

3,241

93,376

86,015

14,209

Integration cost

20,491

3,153

2,021

334

96,952

15,047

2,486

Interest expenses -- Upfront fee amortization of term loans

2,013

-

-

-

43,250

959

154

Accelerated fee amortization on early extinguishment of Term Loan

-

-

-

-

-

41,872

6,917

Non-operating (income)/expenses-- (Gain)/loss on change in fair value of interest swap transaction

(1,049)

-

-

-

6,665

(912)

(151)

Loss on change in fair value of convertible notes

45,356

57,275

70,870

11,707

87,099

133,404

22,037

Adjusted net income attributable to ordinary shareholders (Non-GAAP)

80,605

180,938

91,812

15,170

300,349

422,777

69,836

Quarter Ended

Year Ended

December 31, 2012

September 30, 2013

December 31, 2013

December 31, 2012

December 31, 2013

RMB '000

RMB '000

RMB '000

US$ '000

RMB '000

RMB '000

US$ '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Earnings per share (GAAP)

- Basic

0.07

1.16

0.14

0.02

(0.29)

2.12

0.35

- Diluted

0.07

1.16

0.14

0.02

(0.29)

2.10

0.35

Weighted average ordinary shares outstanding

- Basic

91,027

92,790

93,880

93,880

90,805

92,676

92,676

- Diluted

92,445

93,398

94,440

94,440

90,805

93,418

93,418

Adjusted earnings per share (Non-GAAP)

- Basic

0.89

1.95

0.98

0.16

3.31

4.56

0.75

- Diluted

0.87

1.85

0.96

0.16

3.31

4.41

0.73

Weighted average ordinary shares outstanding

- Basic

91,027

92,790

93,880

93,880

90,805

92,676

92,676

- Diluted

92,445

100,852

101,894

101,894

90,805

100,872

100,872

Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.0537 on December 31, 2013, representing the certificated exchange rate published by the Federal Reserve Board.

Note 2: The non-GAAP adjustment items do not include the tax impact.

 

Home Inns & Hotels Management Inc.

Reconciliation of GAAP and Non-GAAP Results (continued)

Quarter Ended

Year Ended

December 31, 2012

Septembe 30, 2013

December 31, 2013

December 31, 2012

December 31, 2013

RMB '000

RMB '000

RMB '000

US$ '000

RMB '000

RMB '000

US$ '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Net income attributable to ordinary shareholders

6,280

108,003

12,853

2,126

(26,776)

196,222

32,415

Interest income

(861)

(2,151)

(2,331)

(385)

(11,874)

(6,216)

(1,027)

Interest expenses

17,393

12,687

11,958

1,975

119,416

54,149

8,945

Income tax expense

964

78,157

46,374

7,660

136,305

206,997

34,193

Depreciation and amortization

164,376

178,001

186,061

30,735

632,468

714,482

118,024

EBITDA (Non-GAAP)

188,152

374,697

254,915

42,111

849,539

1,165,634

192,550

Foreign exchange gain, net

(14,974)

(8,576)

(13,551)

(2,238)

(217)

(49,830)

(8,231)

Share-based compensation

22,488

21,083

19,619

3,241

93,376

86,015

14,209

Accelerated fee amortization on early extinguishment of Term Loan

-

-

-

-

-

41,872

6,917

Integration cost

20,491

3,153

2,021

333

96,952

15,047

2,486

Non-operating (income)/expenses -- (Gain)/loss on change in fair value of interest swap transaction

(1,049)

-

-

-

6,665

(912)

(151)

Loss on change in fair value of convertible notes

45,356

57,275

70,870

11,707

87,099

133,404

22,037

Adjusted EBITDA (Non-GAAP) 

260,464

447,632

333,874

55,154

1,133,414

1,391,230

229,817

%of total revenue

17.8%

25.7%

20.7%

20.7%

19.6%

21.9%

21.9%

Note 1: The "Depreciation and amortization expense" includes the depreciation and amortization expenses of the Group. 

The depreciation and amortization expenses of all leased-and-operated hotels are included in "Operating costs and expenses". 

The depreciation and amortization expenses of administrative long-term assets are included in "General and administrative expenses".

 

Home Inns & Hotels Management Inc.

Operating Data

As of and for the quarter ended

As of and for the year ended

December 31, 2012

September 30, 2013

December 31, 2013

December 31, 2012

December 31, 2013

Group

Motel 168

excluding Motel 168

Group

Motel 168

excluding Motel 168

Group

Motel 168

excluding Motel 168

Group

Motel 168

excluding Motel 168

Group

Motel 168

excluding Motel 168

Total Hotels in operation:

1,772

334

1,438

2,051

355

1,696

2,180

378

1,802

1,772

334

1,438

2,180

378

1,802

      Leased-and-operated hotels

803

151

652

852

156

696

872

163

709

803

151

652

872

163

709

      Franchised-and-managed hotels

969

183

786

1,199

199

1,000

1,308

215

1,093

969

183

786

1,308

215

1,093

Total rooms

214,070

49,745

164,325

243,459

50,874

192,585

256,555

52,889

203,666

214,070

49,745

164,325

256,555

52,889

203,666

Occupancy rate (as a percentage)

83.8%

77.4%

85.6%

89.4%

85.1%

90.5%

84.0%

80.8%

84.8%

86.1%

78.0%

88.7%

86.1%

81.3%

87.3%

Average daily rate (in RMB)

165

160

166

173

163

175

163

161

164

168

160

170

165

160

167

RevPAR (in RMB)

138

124

143

154

139

159

137

130

139

144

125

151

142

130

146

Like-for-like performance for hotels opened for at least 18 months during the current quarter

As of and for the quarter ended

December 31, 2012

December 31, 2013

Group

Motel 168

excluding Motel 168

Group

Motel 168

excluding Motel 168

Total Hotels in operation:

1,563

327

1,236

1,563

327

1,236

      Leased-and-operated hotels

749

170

579

750

171

579

      Franchised-and-managed hotels

814

157

657

813

156

657

Total rooms

187,805

46,161

141,644

186,345

44,293

142,052

Occupancy rate (as a percentage)

86.6%

78.3%

89.4%

86.5%

82.4%

87.9%

Average daily rate (in RMB)

166

162

167

166

162

167

RevPAR (in RMB)

144

126

150

144

133

147

One Motel 168 Franchised-and-managed hotel was legally converted into Leased-and-operated hotels in 2012.

*    "Occupancy rate" refers to the total number of occupied rooms divided by the total number of available rooms in a given period.

"Average daily rate" refers to total hotel room revenues divided by the total number of occupied rooms in a given period.

"RevPAR" represents revenue per available room, which is calculated by dividing total hotel room revenues by the total number of available rooms in a given period, or by multiplying average daily rates and occupancy rates in a given period.

The operating data of multi-brand conversion hotels were included in "Motel 168". 

SOURCE Home Inns & Hotels Management Inc.



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