Homeinns Hotel Group Reports Fourth Quarter and Full Year 2015 Financial Results

2,922 Hotels in Operation in 355 Cities across China

Mar 16, 2016, 17:00 ET from Homeinns

SHANGHAI, March 16, 2016 /PRNewswire/ -- Homeinns Hotel Group (NASDAQ: HMIN) ("Homeinns" 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, 2015. 

Fourth Quarter and Full Year 2015 Highlights

  • Total revenues increased 2.6% year over year to RMB 1,677.4 million (US$258.9 million) for the fourth quarter of 2015. For the full year 2015, total revenues decreased 0.2% year over year to RMB 6,671.1 million (US$1,029.8 million).
  • Net loss attributable to ordinary shareholders was RMB 13.1 million (US$2.0 million) for the fourth quarter of 2015, compared with net income attributable to ordinary shareholders of RMB 84.6 million for the fourth quarter of 2014. For the full year 2015, net income attributable to ordinary shareholders was RMB 167.0 million (US$25.8 million), compared with net income attributable to ordinary shareholders of RMB 513.1 million for the full year 2014.
  • Adjusted net income attributable to ordinary shareholders (non-GAAP) decreased 44.6% year over year to RMB 61.5 million (US$9.5 million) for the fourth quarter of 2015. For the full year 2015, adjusted net income attributable to ordinary shareholders (non-GAAP) decreased 30.2% year over year to RMB 373.9 million (US$57.7 million).
  • EBITDA (non-GAAP) decreased 28.3% year over year to RMB 239.7 million (US$37.0 million) for the fourth quarter of 2015. For the full year 2015, EBITDA (non-GAAP) decreased 24.7% year over year to RMB 1,168.8 million (US$180.4 million).
  • Adjusted EBITDA (non-GAAP) decreased 12.9% year over year to RMB 314.2 million (US$48.5 million) for the fourth quarter of 2015. For the full year 2015, adjusted EBITDA (non-GAAP) decreased 12.7% year over year to RMB 1,375.7 million (US$212.4 million).
  • Net operating cash inflow decreased 37.9% year over year to RMB 216.2 million (US$33.4 million) for the fourth quarter of 2015 and decreased 16.2% year over year to RMB 1,127.8 million (US$174.1 million) for the full year 2015.
  • As of December 31, 2015, Homeinns operated 2,922 hotels in 355 cities across China, with a net addition of 135 hotels during the fourth quarter and 313 hotels during the full year 2015.

Hotel Development

Hotels in Operations and Pipeline



Group

Homeinn

Motel

Fairy-land

Yitel

Homeinn Plus

Superior*

Ripple*

Pebble Motel*

Comma**

Total Number of Hotels

2,922

2,341

422

29

68

53

1

2

4

2


Leased-and-Operated

929

680

162

21

29

35

0

0

0

2


Franchised-and-Managed

1,987

1,661

260

8

39

18

0

1

0

0


Franchised

6

0

0

0

0

0

1

1

4

0













Contracted or under Construction

171

95

22

2

21

20

0

0

0

11


Leased-and-Operated

33

4

2

0

8

8

0

0

0

11


Franchised-and-Managed

138

91

20

2

13

12

0

0

0

0

Under Due Diligence

165

129

10

0

10

9

0

1

3

3












* Superior, Ripple and Pebble Motel are new hotel brands launched during the fourth quarter of 2015.
**Comma is an apartment product launched during the fourth quarter of 2015.


Openings

Closures*



4Q2015

FY2015

4Q2015

FY2015

Total Number of Hotels

170

431

35

118


Leased-and-Operated

32

62

20

47


Franchised-and-Managed

132

363

15

71


Franchised

6

6

0

0







* Among these closures, 11 leased-and-operated hotels were closed due to conversion to our other brands, and one leased-and-operated hotel was closed and converted to a franchised-and-managed hotel during the fourth quarter of 2015. 26 leased-and-operated hotels were closed to convert to our other brands, and 3 leased-and-operated hotels were closed and converted to franchised-and-managed hotels during the full year 2015.

Operating Metrics


Total Hotels



4Q2015

3Q2015

4Q2014

FY2015

FY2014


Occupancy Rate

83.1%

86.6%

79.6%

83.2%

83.6%


Average Daily Rate (ADR, RMB)

159

171

163

162

165


Revenue per Available Room (RevPAR, RMB)

132

148

130

134

138





Hotels Opened for at least 18 Months


4Q2015

4Q2014

FY2015

FY2014

Occupancy Rate

84.0%

81.3%

84.5%

85.3%

Average Daily Rate (ADR, RMB)

157

161

161

165

Revenue per Available Room (RevPAR, RMB)

132

131

136

141

For the fourth quarter of 2015, occupancy rate increased by 3.5 percentage points while ADR decreased by 2.5% compared with the fourth quarter of 2014, resulting in an increase of 1.5% in RevPAR. For the full year 2015, occupancy rate decreased by 0.4 percentage points while ADR decreased by 1.8% compared with the full year 2014, resulting in a decrease of 2.9% in RevPAR.

As of December 31, 2015, a total of 2,257 hotels had been in operation for at least 18 months. During the fourth quarter of 2015, occupancy rate of these hotels increased year over year from 81.3% to 84.0%, and ADR decreased year over year from RMB 161 to RMB 157, resulting in an increase in RevPAR by 0.8% from RMB 131 to RMB 132. For the full year 2015, occupancy rate of these hotels decreased year over year from 85.3% to 84.5%, and ADR decreased year over year from RMB 165 to RMB 161, resulting in a decrease in RevPAR by 3.5% from RMB 141 to RMB 136.

Homeinns Hotel Group had a total of 53.9 million unique non-corporate members under its frequent guests program as of December 31, 2015.

Financial Results for Fourth Quarter and Full Year 2015

Revenues











(RMB/USD in Millions)

4Q2015


4Q2014



FY2015

FY2014




RMB

USD


RMB

V%


RMB

USD

RMB

V%


Leased-and-Operated Hotels

1,402.3

216.5


1,391.1

0.8%


5,631.2

869.3

5,741.8

-1.9%


Franchised-and-Managed Hotels

275.2

42.5


244.2

12.7%


1,039.9

160.5

940.9

10.5%

Total Revenues

1,677.4

258.9


1,635.3

2.6%


6,671.1

1,029.8

6,682.7

-0.2%

Less: Business Taxes

-99.7

-15.4


-100.3

-0.6%


-395.4

-61.0

-411.1

-3.8%

Net Revenues

1,577.7

243.6


1,535.0

2.8%


6,275.7

968.8

6,271.6

0.1%

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

For the fourth quarter of 2015, revenues from leased-and-operated hotels increased 0.8% year over year to RMB 1.40 billion (US$216.5 million). The year-over-year increase in revenues from leased-and-operated hotels in the fourth quarter of 2015 was mainly due to an increase in RevPAR. Revenues from franchised-and-managed hotels increased 12.7% year over year to RMB 275.2 million (US$42.5 million) for the fourth quarter of 2015. The year-over-year increase in revenues from franchised-and-managed hotels in the fourth quarter of 2015 was mainly driven by an increase in the number of hotels and hotel rooms in operation.

For the full year 2015, revenues from leased-and-operated hotels decreased 1.9% year over year to RMB 5.63 billion (US$869.3 million). The year-over-year decrease in revenues from leased-and-operated hotels in the full year 2015 was mainly due to a decrease in RevPAR. Revenues from franchised-and-managed hotels increased 10.5% year over year to RMB 1.04 billion (US$160.5 million) for the full year of 2015. The year-over-year increase in revenues from franchised-and-managed hotels was mainly driven by an increase in the number of hotels and hotel rooms in operation, although partially offset by a decrease in RevPAR.

Total Operating Costs and Expenses / Income from Operations





(RMB/USD in Millions)

Fourth Quarter 2015






Adjusted



GAAP Results

Non-GAAP Results*



RMB

USD

Vpts

RMB

USD

Vpts


Leased-and-Operated Hotel Costs

1,352.7

208.8

1.2pts

1,349.6

208.3

1.3pts


Personnel Costs of Franchised-and-Managed Hotels

35.7

5.5

0.0pts

31.8

4.9

0.0pts


Sales and Marketing Expenses

41.3

6.4

1.1pts

41.2

6.4

1.1pts


General and Administrative Expenses

122.7

18.9

2.6pts

68.5

10.6

0.3pts


Total Operating Costs and Expenses

1,552.3

239.6

4.9pts

1,491.1

230.2

2.7pts


Income from Operations

19.9

3.1

-5.1pts

81.0

12.5

-2.8pts











Full Year 2015





Adjusted


GAAP Results

Non-GAAP Results*


RMB

USD

Vpts

RMB

USD

Vpts

Leased-and-Operated Hotel Costs

5,211.7

804.5

3.0pts

5,199.9

802.7

3.0pts

Personnel Costs of Franchised-and-Managed Hotels

228.2

35.2

0.4pts

214.8

33.2

0.4pts

Sales and Marketing Expenses

115.1

17.8

0.1pts

114.4

17.7

0.1pts

General and Administrative Expenses

362.0

55.9

0.8pts

258.3

39.9

0.2pts

Total Operating Costs and Expenses

5,917.0

913.4

4.2pts

5,787.5

893.4

3.7pts

Income from Operations

350.7

54.1

-4.3pts

480.3

74.1

-3.8pts
















*Adjusted Non-GAAP results exclude share-based compensation expenses, integration costs, and expenses related to going-private activities.

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

For the fourth quarter of 2015, total operating costs and expenses were RMB 1.55 billion (US$239.6 million), representing 92.5% of total revenues. Total operating costs and expenses excluding any share-based compensation expenses, integration costs and expenses related to going-private activities (non-GAAP) for the fourth quarter of 2015 were 88.9% of total revenues, compared to 86.2% in the same period a year ago.

For the full year 2015, total operating costs and expenses were RMB 5.92 billion (US$913.4 million), representing 88.7% of total revenues. Total operating costs and expenses excluding any share-based compensation expenses, integration costs and expenses related to going-private activities (non-GAAP) for the full year 2015 were 86.8% of total revenues, compared to 83.1% in the same period a year ago.

  • Total leased-and-operated hotel costs were RMB 1.35 billion (US$208.8 million) for the fourth quarter of 2015, representing 96.5% of the leased-and-operated hotel revenues, compared to 93.3% in the same period a year ago. Total leased-and-operated hotel costs excluding any share-based compensation expenses and integration costs (non-GAAP) were 96.2% of the leased-and-operated hotel revenues in the fourth quarter of 2015, compared to 93.1% in the same period a year ago. The year-over-year increase in total leased-and-operated hotel costs as a percentage of leased-and-operated hotel revenues for the fourth quarter of 2015 was mainly due to the higher rental and depreciation cost from our having a higher proportion of midscale hotels and to the higher depreciation cost from economy hotel upgrading.

    Total leased-and-operated hotel costs were RMB 5.21 billion (US$804.5 million) for the full year 2015, representing 92.5% of the leased-and-operated hotel revenues, compared to 87.5% in 2014. Total leased-and-operated hotel costs excluding any share-based compensation expenses and integration costs (non-GAAP) were 92.3% of the leased-and-operated hotel revenues in the full year 2015, compared to 87.2% in 2014. The year-over-year increase in total leased-and-operated hotel costs as a percentage of leased-and-operated hotel revenues for the full year 2015 was mainly due to increased rental and depreciation costs and a decrease in RevPAR which resulted in a lower revenue base per hotel while a significant portion of the hotel costs was fixed.

    Pre-opening cost was RMB 22.5 million (US$3.5 million) for the fourth quarter of 2015, compared to RMB 18.5 million in the fourth quarter of 2014. For the full year 2015, pre-opening cost was RMB 77.4 million (US$11.9 million), compared to RMB 44.6 million in 2014.
  • Personnel costs of franchised-and-managed hotels were RMB 35.7 million (US$5.5 million) for the fourth quarter of 2015, representing 13.0% of the franchised-and-managed hotel revenues, compared to 14.0% in the same period a year ago. Franchised-and-managed hotels personnel costs excluding share-based compensation expenses (non-GAAP) were 11.6% of franchised-and-managed hotel revenues in the fourth quarter of 2015, compared to 12.6% in the same period of 2014. The year-over-year decrease in personnel costs of franchised-and-managed hotels as a percentage of franchised-and-managed hotel revenues for the fourth quarter of 2015 was mainly due to the lower year-end bonuses.

    Personnel costs of franchised-and-managed hotels were RMB 228.2 million (US$35.2 million) for the full year 2015, representing 21.9% of the franchised-and-managed hotel revenues, compared to 21.4% in 2014. Franchised-and-managed hotels personnel costs excluding share-based compensation expenses (non-GAAP) were 20.7% of franchised-and-managed hotel revenues in the full year 2015, compared to 20.0% in 2014. The year-over-year increase in personnel costs of franchised-and-managed hotels as a percentage of franchised-and-managed hotel revenues for the full year 2015 was mainly due to a lower revenue base per hotel.
  • Sales and marketing expenses were RMB 41.3 million (US$6.4 million) for the fourth quarter of 2015, representing 2.5% of total revenues, compared to 1.4% in the same period a year ago. Sales and marketing expenses excluding share-based compensation expenses (non-GAAP) were 2.5% of total revenues for the fourth quarter of 2015, compared to 1.4% in the same period of 2014. The year-over-year increase in sales and marketing expenses as a percentage of total revenues for the fourth quarter of 2015 was mainly due to the increased cost related to membership loyalty program.

    Sales and marketing expenses were RMB 115.1 million (US$17.8 million) for the full year 2015, representing 1.7% of total revenues, compared to 1.6% in 2014. Sales and marketing expenses excluding share-based compensation expenses (non-GAAP) were 1.7% of total revenues for the full year 2015, compared to 1.6% in 2014.
  • General and administrative expenses were RMB 122.7 million (US$18.9 million) for the fourth quarter of 2015, representing 7.3% of total revenues, compared to 4.7% in the same period a year ago. General and administrative expenses excluding share-based compensation expenses, integration costs, and expenses related to going-private activities (non-GAAP) were 4.1% of total revenues for the fourth quarter of 2015, compared to 3.7% in the same period of 2014. The year-over-year increase in general and administrative expenses as a percentage of total revenues for the fourth quarter of 2015 was mainly due to increased staff cost for new product development.

    General and administrative expenses were RMB 362.0 million (US$55.9 million) for the full year 2015, representing 5.4% of total revenues, compared to 4.7% in 2014. General and administrative expenses excluding share-based compensation expenses, integration costs, acquisition expenses, and expenses related to going-private activities (non-GAAP) were 3.9% of total revenues for the full year 2015, compared to 3.7% in 2014. The year-over-year increase in general and administrative expenses as a percentage of total revenues for the full year 2015 was mainly due to a bad debt provision related to a specific hotel project.

Income from Operations was RMB 19.9 million (US$3.1 million) for the fourth quarter of 2015 compared to RMB 102.5 million in the same period a year ago. Income from operations excluding share-based compensation expenses, integration costs and expenses related to going-private activities (non-GAAP) for the fourth quarter of 2015 was RMB 81.0 million (US$12.5 million), or 4.8% of total revenues, compared to RMB 125.6 million, or 7.7% of total revenues, in the same period of 2014.

For the full year of 2015, income from operations was RMB 350.7 million (US$54.1 million) compared to RMB 640.6 million in 2014. Income from operations excluding share-based compensation expenses, integration costs and expenses related to going-private activities (non-GAAP) for the full year 2015 was RMB 480.3 million (US$74.1 million), or 7.2% of total revenues, compared to RMB 736.3 million, or 11.0% of total revenues, in 2014.

EBITDA (non-GAAP)









(RMB/USD in Millions)

Fourth Quarter 2015


Fourth Quarter 2014



RMB

USD

%Rev

V%


RMB

USD

%Rev

EBITDA (Non-GAAP)

239.7

37.0

14.3%

-28.3%


334.3

51.6

20.4%


Foreign Exchange Loss/(Gain), Net

5.9

0.9

0.4%



-4.6

-0.7

-0.3%


Share-Based Compensation

17.7

2.7

1.1%



21.3

3.3

1.3%


Expenses Related to Going-Private Activities

41.9

6.5

2.5%



-

-

-


Integration Costs

1.6

0.3

0.1%



1.8

0.3

0.1%


Loss on Change in Fair Value of Convertible Notes

7.5

1.2

0.4%



7.9

1.2

0.5%

Adjusted EBITDA (Non-GAAP)

314.2

48.5

18.7%

-12.9%


360.7

55.7

22.1%











Full Year 2015


Full Year 2014



RMB

USD

%Rev

V%


RMB

USD

%Rev

EBITDA (Non-GAAP)

1,168.8

180.4

17.5%

-24.7%


1,553.1

239.8

23.2%


Foreign Exchange Loss, Net

41.0

6.3

0.6%



11.5

1.8

0.2%


Share-Based Compensation

76.4

11.8

1.1%



87.7

13.5

1.3%


Acquisition Expenses

-

-

-



0.7

0.1

0.0%


Expenses Related to Going-Private Activities

46.7

7.2

0.7%



-

-

-


Integration Costs

6.4

1.0

0.1%



7.3

1.1

0.1%


Gain on Waived Liability Related with Motel Acquisition

-

-

-



-11.9

-1.8

-0.2%


Loss/(Gain) on Buy-Back of Convertible Notes

1.7

0.3

0.0%



-0.7

-0.1

0.0%


Loss/(Gain) on Change in Fair Value of Convertible Notes

34.6

5.3

0.5%



-71.9

-11.1

-1.1%

Adjusted EBITDA (Non-GAAP)

1,375.7

212.4

20.6%

-12.7%


1,575.7

243.3

23.6%


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

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

 

Net Income Attributable to Ordinary Shareholders






(RMB/USD in Millions)

Fourth Quarter 2015


Fourth Quarter 2014



RMB

USD

%Rev

V%


RMB

USD

%Rev

Net Income Attributable to Ordinary Shareholders (GAAP)

-13.1

-2.0

-0.8%

-115.4%


84.6

13.1

5.2%


Foreign Exchange Loss/(Gain), Net

5.9

0.9

0.4%



-4.6

-0.7

-0.3%


Share-Based Compensation

17.7

2.7

1.1%



21.3

3.3

1.3%


Expenses Related to Going-Private Activities

41.9

6.5

2.5%



-

-

-


Integration Costs

1.6

0.3

0.1%



1.8

0.3

0.1%


Loss/(Gain) on Change in Fair Value of Convertible Notes

7.5

1.2

0.4%



7.9

1.2

0.5%

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

61.5

9.5

3.7%

-44.6%


110.9

17.1

6.8%











Full Year 2015


Full Year 2014



RMB

USD

%Rev

V%


RMB

USD

%Rev

Net Income Attributable to Ordinary Shareholders (GAAP)

167.0

25.8

2.5%

-67.4%


513.1

79.2

7.7%


Foreign Exchange Loss, Net

41.0

6.3

0.6%



11.5

1.8

0.2%


Share-Based Compensation

76.4

11.8

1.1%



87.7

13.5

1.3%


Acquisition Expenses

-

-

-



0.7

0.1

0.0%


Expenses Related to Going-Private Activities

46.7

7.2

0.7%



-

-

-


Integration Costs

6.4

1.0

0.1%



7.3

1.1

0.1%


Gain on Waived Liability Related with Motel Acquisition

-

-

-



-11.9

-1.8

-0.2%


Loss/(Gain) on Buy-Back of Convertible Notes

1.7

0.3

0.0%



-0.7

-0.1

0.0%


Loss/(Gain) on Change in Fair Value of Convertible Notes

34.6

5.3

0.5%



-71.9

-11.1

-1.1%

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

373.9

57.7

5.6%

-30.2%


535.8

82.7

8.0%

 

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

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

Income Attributable to Ordinary Shareholders (Non–GAAP) decreased year over year by 44.6% to RMB 61.5 million (US$9.5 million) for the fourth quarter 2015, representing 3.7% of total revenues compared to 6.8% in the same period a year ago. For the full year 2015, adjusted net income attributable to ordinary shareholders (Non–GAAP) decreased year over year by 30.2% to RMB 373.9 million (US$57.7 million), representing 5.6% of total revenues compared to 8.0% in 2014. The year-over-year decreases in adjusted net margins (non-GAAP)[1] for both the quarter and full year were mainly due to the decreases in adjusted income from operations margin (non-GAAP)[2].

[1]"Adjusted net margin rate (non-GAAP)" is defined as adjusted net income (non-GAAP) as a percentage of total revenues.

[2]"Adjusted income from operations margin rate (non-GAAP)" is defined as income from operations excluding share-based compensation expenses, integration costs, acquisition expenses, and expenses related to going-private activities (non-GAAP) as a percentage of total revenues.

 

Basic and Diluted Earnings Per  Share / Earnings Per ADS





Fourth Quarter 2015


                              Full Year 2015              _      


Ordinary Share

ADS Share


Ordinary Share

ADS Share


RMB

USD

RMB

USD


RMB

USD

RMB

USD

Basic

-0.14

-0.02

-0.28

-0.04


1.74

0.27

3.48

0.54

Diluted

-0.14

-0.02

-0.28

-0.04


1.74

0.27

3.48

0.54











Adjusted Basic (Non-GAAP)

0.64

0.10

1.28

0.20


3.89

0.60

7.78

1.20

Adjusted Diluted (Non-GAAP)

0.64

0.10

1.28

0.20


3.83

0.59

7.66

1.18

Cash Flow

For the fourth quarter of 2015, net operating cash inflow was RMB 216.2 million (US$33.4 million), compared to RMB 348.1 million in the same period of 2014. Capitalized expenditures for the fourth quarter of 2015 were RMB 284.5 million (US$43.9 million), while related cash paid for capital expenditures during the quarter was RMB 151.8 million (US$23.4 million).

For the full year 2015, net operating cash inflow was RMB 1.13 billion (US$174.1 million), compared to RMB 1.35 billion in 2014. Capitalized expenditures for the full year 2015 were RMB 727.4 million (US$112.3 million), while related cash paid for capital expenditures during the year was RMB 619.4 million (US$95.6 million).

Balance Sheet

As of December 31, 2015, Homeinns Hotel Group had cash and cash equivalents of RMB 1,093.7 million (US$168.8 million). The convertible notes issued in December 2010 were fully repaid in December 2015.

Upcoming HMIN Extraordinary General Meeting

The Company has scheduled an extraordinary general meeting to be held on March 25, 2016, at 10:00 a.m. Shanghai time, at the executive offices of the Company, located at 124 Cao Bao Road, Shanghai, 200235, People's Republic of China. The extraordinary general meeting is being convened to consider and vote on, among other matters, the proposal to authorize and approve the previously announced agreement and plan of merger dated as of December 6, 2015, among (i) the Company, (ii) BTG Hotels Group (HONGKONG) Holdings Co., Limited ("Holdco"), a wholly owned subsidiary of BTG Hotels (Group) Co., Ltd., a PRC joint stock company that is listed on the Shanghai Stock Exchange ("BTG Hotels"), (iii) BTG Hotels Group (CAYMAN) Holding Co., Ltd ("Merger Sub"), a wholly owned subsidiary of Holdco, and (iv) solely for the purposes of certain sections thereof, BTG Hotels. Subject to the approval of the extraordinary general meeting, Merger Sub will be merged with and into the Company pursuant to the agreement and plan of merger, with the Company continuing as the surviving company. A related transaction statement on Schedule 13E-3 and a proxy statement with respect thereto were filed with the SEC on February 23, 2016. Investors, shareholders and ADS holders of the Company are urged to read carefully and in their entirety these and other materials filed with or furnished to the SEC when they become available, as they contain important information about the Company, the proposed merger and related matters. The proxy statement was mailed to the Company's ADS holders on or about February 26, 2016 and to the Company's shareholders on or about March 4, 2016. The Special Committee of the Board comprised of independent directors reviewed the transaction and recommends that stockholders approve the transaction.

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 6.4778 to US$1.00, the noon buying rate for December 31, 2015 set forth in the H.10 statistical release of the Federal Reserve Board.

About Homeinns Hotel Group

Homeinns Hotel 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 Homeinn 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. Homeinns Hotel 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. Homeinns Hotel 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 Homeinns Hotel 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 brands; trends and competition in the lodging industry; the expected growth of the lodging market in China; 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 Homeinns Hotel Group's unaudited consolidated financial results presented in accordance with U.S. GAAP, Homeinns Hotel Group uses the following non-GAAP measures:

(a)   total operating costs and expenses excluding share-based compensation expenses and acquisition and integration costs and expenses related to going-private activities

(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 and expenses related to going-private activities

(f)    income from operations excluding share-based compensation expenses and acquisition and integration costs and expenses related to going-private activities

(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 and expenses related to going-private activities

(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 expenses related to going-private activities

(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 and expenses related to going-private activities

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.

Homeinns Hotel Group believes that, used in conjunction with GAAP financial measures, these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance, and both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company'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 Homeinns Hotel 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 Homeinns Hotel 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 Homeinns Hotel 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 Homeinns Hotel Group's business. In addition, Homeinns Hotel 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 Homeinns Hotel Group does. Management compensates for this and other limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. Homeinns Hotel 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 Homeinns Hotel Group's future results will be unaffected by other charges and gains Homeinns Hotel Group considers to be outside the ordinary course of its business.

Homeinns Hotel Group completed its acquisition of 100% equity interest in Motel 168, or Motel, and took control of Motel effective on October 1, 2011. Homeinns Hotel Group had consolidated Motel's operating and financial results since October 1, 2011. By the third quarter of 2013, Homeinns Hotel Group had substantially completed Motel's integration and ceased to present separate operating metrics and revenues for Motel.

For investor and media inquiries, please contact:

Mingjia Ding
Homeinns Hotel Group
Tel: +86-21-3337-3333*3870
Email: mjding@homeinns.com

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

Homeinns Hotel Group







Unaudited Condensed Consolidated Balance Sheet





















December 31, 2014


December 31, 2015



RMB '000


RMB '000


US$ '000








ASSETS







Current assets:







Cash and cash equivalents


949,690


1,093,695


168,837

Restricted cash


12,726


11,522


1,779

Accounts receivable, net


95,501


106,122


16,382

Receivables from related parties


3,476


3,469


536

Consumables


44,446


51,032


7,878

Prepayments and other current assets


171,703


246,544


38,060

Deferred tax assets


129,685


131,166


20,249








Total current assets


1,407,227


1,643,550


253,721





























Investment


11,709


14,682


2,267

Property and equipment, net


4,000,041


3,831,431


591,471

Goodwill


2,323,241


2,326,289


359,117

Intangible assets, net


1,126,636


1,079,616


166,664

Other assets


90,995


109,161


16,852

Non-current deferred tax assets


434,847


487,596


75,272








Total assets


9,394,696


9,492,325


1,465,364








LIABILITIES







Current liabilities:







Accounts payable


86,949


103,382


15,959

Notes payable


-


4,496


694

Payables to related parties


4,166


15,697


2,423

Financial liability, current portion2


1,029,577


-


-

Short-term loans


-


424,680


65,559

Salaries and welfare payable


228,127


211,487


32,648

Income tax payable


117,830


116,340


17,960

Other taxes payable


34,074


48,188


7,439

Deferred revenues


225,417


216,123


33,364

Long-term loans, current portion


-


50,000


7,719

Other unpaid and accruals


255,460


305,481


47,160

Other payables


742,853


854,521


131,915

Deferred tax liability


60,764


46,949


7,248















Total current liabilities


2,785,217


2,397,344


370,088








Long term loans




100,000


15,437

Deferred rental


705,284


695,008


107,291

Deferred revenues


51,289


46,349


7,155

Deposits due to franchisees


144,892


155,402


23,990

Other long term payables


13,018


5,314


820

Unfavorable lease liabilities


331,282


294,944


45,532

Deferred tax liabilities


292,575


287,817


44,431








Total liabilities


4,323,557


3,982,178


614,744















Commitments and contingencies














Shareholders' equity







Ordinary shares (US$0.005 par value; 200,000,000 shares authorized,
95,703,960 and 97,535,374 shares issued and outstanding as of
December 31, 2014 and December 31, 2015, respectively)


3,698


3,757


580








Additional paid-in capital


3,191,076


3,403,361


525,388

Statutory reserves


256,013


286,369


44,208








Retained earnings


1,604,246


1,740,929


268,753








Less: Treasury stock (0 and 37,696 shares as of December 31, 2014
and December 31, 2015, respectively)


-


(2,759)


(426)








Total Home Inns shareholders' equity


5,055,033


5,431,657


838,503








Noncontrolling interests


16,106


78,490


12,117








Total  shareholders' equity


5,071,139


5,510,147


850,620








Total liabilities and shareholders' equity


9,394,696


9,492,325


1,465,364



-


-


-








Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.4778 on December 31, 2015, representing the certificated exchange rate published by the Federal Reserve Board.

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

 

Homeinns Hotel Group















Unaudited Condensed Consolidated Statement of Operations






























December 31, 2014


September 30, 2015


December 31, 2015


December 31, 2014


December 31, 2015



RMB '000


96,238


RMB '000


US$ '000


RMB '000


RMB '000


US$ '000































Revenues:















Leased-and-operated hotels


1,391,084


1,573,685


1,402,267


216,473


5,741,804


5,631,242


869,314

Franchised-and-managed hotels


244,219


282,257


275,152


42,476


940,944


1,039,871


160,528
















Total revenues


1,635,303


1,855,942


1,677,419


258,949


6,682,748


6,671,113


1,029,842

Less: Business tax and related surcharges


(100,323)


(108,934)


(99,720)


(15,394)


(411,118)


(395,394)


(61,038)
















Net revenues


1,534,980


1,747,008


1,577,699


243,555


6,271,630


6,275,719


968,804
















Operating costs and expenses:















Leased-and-operated hotel costs –















Rents and utilities


(564,347)


(554,722)


(578,745)


(89,343)


(2,172,804)


(2,239,521)


(345,722)

Personnel costs


(256,033)


(293,685)


(262,696)


(40,553)


(1,075,222)


(1,107,260)


(170,931)

Depreciation and amortization


(187,816)


(200,365)


(202,325)


(31,234)


(742,886)


(792,930)


(122,407)

Consumables, food and beverage


(97,864)


(120,355)


(113,233)


(17,480)


(362,760)


(409,001)


(63,139)

Others


(192,474)


(169,037)


(195,657)


(30,204)


(669,441)


(662,946)


(102,341)
















Total leased-and-operated hotel costs


(1,298,534)


(1,338,164)


(1,352,656)


(208,814)


(5,023,113)


(5,211,658)


(804,540)
















Personnel costs of Franchised-and-managed hotels


(34,280)


(82,570)


(35,670)


(5,506)


(201,244)


(228,219)


(35,231)

Sales and marketing expenses


(22,700)


(25,626)


(41,337)


(6,381)


(109,813)


(115,075)


(17,765)

General and administrative expenses


(77,426)


(82,733)


(122,656)


(18,935)


(312,008)


(362,041)


(55,889)
















Total operating costs and expenses


(1,432,940)


(1,529,093)


(1,552,319)


(239,636)


(5,646,178)


(5,916,993)


(913,425)
















Other income/(loss)


448


(4,165)


(5,529)


(854)


15,193


(7,995)


(1,234)
















Income from operations


102,488


213,750


19,851


3,065


640,645


350,731


54,145
















Interest income


3,777


6,610


4,243


655


9,295


19,248


2,971

Interest expenses


(5,674)


(5,303)


(5,850)


(903)


(41,759)


(22,276)


(3,439)

Loss from equity investment


(193)


(163)


(405)


(63)


(324)


(1,587)


(245)

(Loss)/gain on change in fair value of convertible notes


(7,851)


(570)


(7,455)


(1,151)


71,945


(34,624)


(5,345)

Gain/(loss) on buy-back of convertible notes


-


-


-


-


650


(1,682)


(260)

Non-operating income


41,400


44,146


26,914


4,155


81,739


81,651


12,605

Foreign exchange gain/(loss), net


4,606


(35,012)


(5,876)


(907)


(11,500)


(41,034)


(6,335)
















Income before income tax expenses and noncontrolling interests


138,553


223,458


31,422


4,851


750,691


350,427


54,097
















Income tax expense


(53,064)


(74,270)


(43,722)


(6,750)


(231,323)


(177,741)


(27,438)
















Net income/(loss)


85,489


149,188


(12,300)


(1,899)


519,368


172,686


26,659
















Less:Net income attributable to noncontrolling interests


(918)


(3,590)


(750)


(116)


(6,253)


(5,643)


(871)































Net income/(loss) attributable to ordinary shareholders


84,571


145,598


(13,050)


(2,015)


513,115


167,043


25,788
















Earnings per share















— Basic


0.88


1.51


(0.14)


(0.02)


5.38


1.74


0.27
















— Diluted


0.88


1.51


(0.14)


(0.02)


4.55


1.74


0.27
















Weighted average ordinary shares outstanding















— Basic


95,655


96,347


96,517


96,517


95,345


96,216


96,216
















— Diluted


95,655


96,347


96,517


96,517


102,814


96,238


96,238
















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















Leased-and-operated hotel costs – Personnel costs


1,856


1,349


1,763


272


7,702


6,638


1,025

Personnel costs of Franchised-and-managed hotels


3,479


2,727


3,822


590


13,152


13,423


2,072

Sales and marketing expenses


179


129


121


19


832


642


99

General and administrative expenses


15,810


13,684


11,949


1,845


66,020


55,736


8,604
















Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.4778 on December 31, 2015, representing the certificated exchange rate published by the Federal Reserve Board.
















 

Homeinns Hotel Group












Reconciliation of GAAP and Non-GAAP Results













































Quarter Ended December 31, 2015



GAAP
Result


% of Total
Revenue


Share-based
Compensation


Expenses related to
going private activities


 Integration
 cost


% of Total
Revenue


Non-GAAP Result


 % of Total
Revenue



RMB '000




RMB '000


RMB '000


RMB '000




RMB '000





(unaudited)




(unaudited)


(unaudited)


(unaudited)




(unaudited)




















Leased-and-operated hotel costs


(1,352,656)


80.6%


1,763


-


1,316


0.2%


(1,349,577)


80.5%

Personnel costs of Franchised-and-managed hotels


(35,670)


2.1%


3,822


-


-


0.2%


(31,848)


1.9%

Sales and marketing expenses


(41,337)


2.5%


121


-


-


0.0%


(41,216)


2.5%

General and administrative expenses


(122,656)


7.3%


11,949


41,907


317


3.2%


(68,483)


4.1%

















Total operating costs and expenses


(1,552,319)


92.5%


17,655


-


1,633


3.6%


(1,491,124)


88.9%

















Income from operations


19,851


1.2%


17,655


-


1,633


3.6%


81,046


4.8%






















































Quarter Ended December 31, 2015



GAAP
Result


%of Total
Revenue


Share-based
Compensation


Expenses related to
going private activities


 Integration
 cost


%of Total
Revenue


Non-GAAP Result


%of Total
Revenue



US$ '000




US$ '000


US$ '000


US$ '000




US$ '000





(unaudited)




(unaudited)


(unaudited)


(unaudited)




(unaudited)




















Leased-and-operated hotel costs


(208,814)


80.6%


272


-


203


0.2%


(208,339)


80.5%

Personnel costs of Franchised-and-managed hotels


(5,506)


2.1%


590


-


-


0.2%


(4,916)


1.9%

Sales and marketing expenses


(6,381)


2.5%


19


-


-


0.0%


(6,362)


2.5%

General and administrative expenses


(18,935)


7.3%


1,845


6,469


49


3.2%


(10,572)


4.1%

















Total operating costs and expenses


(239,636)


92.5%


2,726


-


252


3.6%


(230,189)


88.9%

















Income from operations


3,065


1.2%


2,726


-


252


3.6%


12,512


4.8%





















































Quarter Ended September 30, 2015



GAAP
Result


%of Total
Revenue


Share-based
Compensation


Expenses related to
going private activities


 Integration
 cost


%of Total
Revenue


Non-GAAP Result


%of Total
Revenue



RMB '000




RMB '000


RMB '000


RMB '000




RMB '000





(unaudited)




(unaudited)


(unaudited)


(unaudited)




(unaudited)




















Leased-and-operated hotel costs


(1,338,164)


72.1%


1,349


-


1,295


0.1%


(1,335,520)


72.0%

Personnel costs of Franchised-and-managed hotels


(82,570)


4.4%


2,727


-


-


0.1%


(79,843)


4.3%

Sales and marketing expenses


(25,626)


1.4%


129


-


-


0.0%


(25,497)


1.4%

General and administrative expenses


(82,733)


4.5%


13,684


4,797


317


1.0%


(63,935)


3.4%

















Total operating costs and expenses


(1,529,093)


82.4%


17,889


-


1,612


1.3%


(1,504,795)


81.1%

















Income from operations


213,750


11.5%


17,889


-


1,612


1.3%


238,048


12.8%






















































Quarter Ended December 31, 2014



GAAP
Result


%of Total
Revenue


Share-based
Compensation


Expenses related to
going private activities


 Integration
 cost


 % of Total
Revenue


Non-GAAP Result


%of Total
Revenue



RMB '000




RMB '000


RMB '000


RMB '000




RMB '000





(unaudited)




(unaudited)


(unaudited)


(unaudited)




(unaudited)




















Leased-and-operated hotel costs


(1,298,534)


79.4%


1,856


-


1,478


0.2%


(1,295,200)


79.2%

Personnel costs of Franchised-and-managed hotels


(34,280)


2.1%


3,479


-


-


0.2%


(30,801)


1.9%

Sales and marketing expenses


(22,700)


1.4%


179


-


-


0.0%


(22,521)


1.4%

General and administrative expenses


(77,426)


4.7%


15,810


-


317


1.0%


(61,299)


3.7%

















Total operating costs and expenses


(1,432,940)


87.6%


21,324


-


1,795


1.4%


(1,409,821)


86.2%

















Income from operations


102,488


6.3%


21,324


-


1,795


1.4%


125,607


7.7%


































Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.4778 on December 31, 2015, representing the certificated exchange rate published by the Federal Reserve Board.

 

Homeinns Hotel Group











Reconciliation of GAAP and Non-GAAP Results (continued)

















































Year Ended December 31, 2015



GAAP
Result


% of Total
Revenue


Share-based
Compensation


Expenses related to
going private activities


Acquisition expenses


Integration
cost


% of Total 

Revenue


Non-GAAP Result


% of Total
Revenue



RMB '000




RMB '000


RMB '000


RMB '000


RMB '000




RMB '000





(unaudited)




(unaudited)


(unaudited)


(unaudited)


(unaudited)




(unaudited)






















Leased-and-operated hotel costs


(5,211,658)


78.1%


6,638


-


-


5,112


0.2%


(5,199,908)


77.9%

Personnel costs of Franchised-and-managed hotels


(228,219)


3.4%


13,423


-


-


-


0.2%


(214,796)


3.2%

Sales and marketing expenses


(115,075)


1.7%


642


-


-


-


0.0%


(114,433)


1.7%

General and administrative expenses


(362,041)


5.4%


55,736


46,704


-


1,268


1.6%


(258,333)


3.9%



















Total operating costs and expenses


(5,916,993)


88.7%


76,439


46,704


-


6,380


1.9%


(5,787,470)


86.8%



















Income from operations


350,731


5.3%


76,439


46,704


-


6,380


1.9%


480,254


7.2%




























































Year Ended December 31, 2015



GAAP
Result


%of Total
Revenue


Share-based
Compensation


Expenses related to
going private activities


Acquisition expenses


 Integration
 cost


%of Total
Revenue


Non-GAAP Result


%of Total
Revenue



US$ '000




US$ '000


US$ '000


US$ '000


US$ '000




US$ '000





(unaudited)




(unaudited)


(unaudited)


(unaudited)


(unaudited)




(unaudited)






















Leased-and-operated hotel costs


(804,541)


78.1%


1,025


-


-


789


0.2%


(802,727)


77.9%

Personnel costs of Franchised-and-managed hotels


(35,231)


3.4%


2,072


-


-


-


0.2%


(33,159)


3.2%

Sales and marketing expenses


(17,765)


1.7%


99


-


-


-


0.0%


(17,665)


1.7%

General and administrative expenses


(55,889)


5.4%


8,604


7,210


-


196


1.6%


(39,880)


3.9%



















Total operating costs and expenses


(913,426)


88.7%


11,800


7,210


-


985


1.9%


(893,431)


86.8%



















Income from operations


54,144


5.3%


11,800


7,210


-


985


1.9%


74,138


7.2%



























































Year Ended December 31, 2014



GAAP
Result


%of Total
Revenue


Share-based
Compensation


Expenses related to
going private activities


Acquisition expenses


 Integration
 cost


%of Total
Revenue


Non-GAAP Result


%of Total
Revenue



RMB '000




RMB '000


RMB '000


RMB '000


RMB '000




RMB '000





(unaudited)




(unaudited)


(unaudited)


(unaudited)


(unaudited)




(unaudited)






















Leased-and-operated hotel costs


(5,023,113)


75.2%


7,702


-


-


6,017


0.2%


(5,009,394)


75.0%

Personnel costs of Franchised-and-managed hotels


(201,244)


3.0%


13,152


-


-


-


0.2%


(188,092)


2.8%

Sales and marketing expenses


(109,813)


1.6%


832


-


-


-


0.0%


(108,981)


1.6%

General and administrative expenses


(312,008)


4.7%


66,020


-


691


1,268


1.0%


(244,029)


3.7%



















Total operating costs and expenses


(5,646,178)


84.5%


87,706


-


691


7,285


1.4%


(5,550,496)


83.1%



















Income from operations


640,645


9.6%


87,706


-


691


7,285


1.4%


736,327


11.0%







































Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.4778 on December 31, 2015, representing the certificated exchange rate published by the Federal Reserve Board.

 

Homeinns Hotel Group







Reconciliation of GAAP and Non-GAAP Results (continued)






















Quarter Ended


Year Ended



December 31, 2014


September 30, 2015


December 31, 2015


December 31, 2014


December 31, 2015



RMB '000


RMB '000


RMB '000


US$ '000


RMB '000


RMB '000


US$ '000



(unaudited)


(unaudited)


(unaudited)


(unaudited)


(unaudited)


(unaudited)


(unaudited)































Net income/(loss) attributable to ordinary shareholders (GAAP)


84,571


145,598


(13,050)


(2,015)


513,115


167,043


25,788

Foreign exchange (gain)/loss, net


(4,606)


35,012


5,876


907


11,500


41,034


6,335

Share-based compensation


21,324


17,889


17,655


2,726


87,706


76,439


11,800

Acquisition expenses


-


-


-


-


691


-


-

Expenses related to going private activities


-


4,797


41,907


6,469


-


46,704


7,210

Integration cost


1,795


1,612


1,633


252


7,285


6,380


985

Gain on waived liability related with Motel acquisition


-








(11,919)


-


-

(Gain)/loss on buy-back of convertible notes


-


-


-


-


(650)


1,682


260

Loss/(gain) on change in fair value of convertible notes


7,851


570


7,455


1,151


(71,945)


34,624


5,345































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


110,935


205,478


61,476


9,490


535,783


373,906


57,721
















































Quarter Ended


Year Ended



December 31, 2014


September 30, 2015


December 31, 2015


December 31, 2014


December 31, 2015



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


0.88


1.51


(0.14)


(0.02)


5.38


1.74


0.27















— Diluted


0.88


1.51


(0.14)


(0.02)


4.55


1.74


0.27
















Weighted average ordinary shares outstanding















— Basic


95,655


96,347


96,517


96,517


95,345


96,216


96,216
















— Diluted


95,655


96,347


96,517


96,517


102,814


96,238


96,238

Adjusted earnings per share (Non-GAAP)














— Basic


1.16


2.13


0.64


0.10


5.62


3.89


0.60















— Diluted


1.13


2.05


0.64


0.10


5.43


3.83


0.59
















Weighted average ordinary shares outstanding















— Basic


95,655


96,347


96,517


96,517


95,345


96,216


96,216
















— Diluted


102,704


102,702


96,604


96,604


102,814


102,449


102,449































Note 1: The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on rate of US$1.00=RMB6.4778

on December 31, 2015, representing the certificated exchange rate published by the Federal Reserve Board.

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

 

Homeinns Hotel Group










Reconciliation of GAAP and Non-GAAP Results (continued)


































Quarter Ended


Year Ended



December 31, 2014


Sept 30, 2015


December 31, 2015


December 31, 2014


December 31, 2015



RMB '000


RMB '000


RMB '000


US$ '000


RMB '000


RMB '000


US$ '000



(unaudited)


(unaudited)


(unaudited)


(unaudited)


(unaudited)


(unaudited)


(unaudited)































Net income/(loss)


85,489


149,188


(12,300)


(1,899)


519,368


172,686


26,658

Interest income


(3,777)


(6,610)


(4,243)


(655)


(9,295)


(19,248)


(2,971)

Interest expenses


5,674


5,303


5,850


903


41,759


22,276


3,439

Income tax expense


53,064


74,270


43,722


6,750


231,323


177,741


27,438

Depreciation and amortization


193,863


206,823


206,667


31,904


769,911


815,381


125,873
















EBITDA (Non-GAAP)


334,313


428,974


239,696


37,003


1,553,066


1,168,836


180,437
















Foreign exchange loss/(gain), net


(4,606)


35,012


5,876


907


11,500


41,034


6,335

Share-based compensation


21,324


17,889


17,655


2,726


87,706


76,439


11,800

Acquisition expenses


-


-


-


-


691


-


-

Expenses related to going private activities


-


4,797


41,907


6,469


-


46,704


7,210

Integration cost                   


1,795


1,612


1,633


252


7,285


6,380


985

Gain on waived liability related with Motel acquisition


-


-


-


-


(11,919)


-


-

(Gain)/loss on buy-back of convertible notes


-


-


-


-


(650)


1,682


260

Loss/(gain) on change in fair value of convertible notes


7,851


570


7,455


1,151


(71,945)


34,624


5,345
















Adjusted EBITDA (Non-GAAP) 


360,677


488,854


314,222


48,508


1,575,734


1,375,699


212,372
















%of total revenue


22.1%


26.3%


18.7%


18.7%


23.6%


20.6%


20.6%
















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, 2014

September 30, 2015

December 31, 2015


December 31, 2014

December 31, 2015



Group


Group


Group


Group


Group

Total Hotels in operation:


2,609


2,787


2,922


2,609


2,922

Leased-and-operated hotels


914


917


929


914


929

Franchised-and-managed hotels


1,695


1,870


1,993


1,695


1,993












Total rooms


296,075


311,608


321,802


296,075


321,802












Occupancy rate (as a percentage)


79.6%


86.6%


83.1%


83.6%


83.2%












Average daily rate (in RMB)


163


171


159


165


162












RevPAR (in RMB)


130


148


132


138


134












Like-for-like performance for hotels opened for at least 18 months at the end of the period



As of and for the quarter ended



As of and for the year ended



December 31, 2014

December 31, 2015



December 31, 2014

December 31, 2015



Group


Group




Group


Group

Total Hotels in operation:


1,899


2,257




1,899


2,257

Leased-and-operated hotels


844


873




844


873

Franchised-and-managed hotels


1,055


1,384




1,055


1,384












Total rooms


221,376


255,319




221,376


255,319












Occupancy rate (as a percentage)


81.3%


84.0%




85.3%


84.5%












Average daily rate (in RMB)


161


157




165


161












RevPAR (in RMB)


131


132




141


136












"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.

 

SOURCE Homeinns



RELATED LINKS

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