(SHANGHAI, CHINA) -- The crawling global economy, marked by fewer international business travelers to China, has hit the bottom line of the 471-property Home Inns & Hotels Management.
The eight-year-old firm is revising its anticipated revenue numbers downwards.
The company reports lower numbers for both chain-wide and like-for-like RevPAR (revenue per available room) in fourth quarter of 2008.
For that period, the chain-wide occupancy rate was 84% and ADR (average daily rate) was RMB 167 (US $24.43).
This resulted in fourth quarter RevPAR of RMB 141 (US $20.62), a decline of 9% from RevPAR of RMB 155 (US $22.67) for the fourth quarter of 2007.
Also for the fourth quarter of 2008, like-for-like RevPAR for hotels that opened for at least 18 months contracted 3.9% compared to the same period in 2007.
"Due to such challenges, the company believes that its revenue for the fourth quarter of 2008 will be at the low end of its previously announced forecasted range of RMB 535 - 555 million (US $78.3 million to US $81 million)," according to the firm's report.
Home Inns opened a net of 205 new hotels in 2008, slightly exceeding its target of 200 new hotels for the year, to reach a total of 471 hotels in operation covering 94 cities in China.
The operating properties consist of 326 leased-and-operated hotels, which include the new H Hotel in Shanghai, and 145 franchised-and-managed hotels.
On a separate note, during the fourth quarter of 2008, the company repurchased and retired RMB 219 million (US $32 million) of its own convertible bonds for total cash consideration of US $16.59 million.
After the repurchase, the Company had convertible bonds outstanding of RMB 895.7 million (US $131 million), including principal and accrued interest.
Home Inns plans to attend Deutsche Bank's Access China Conference 2009, from January 13 through January 15 in Beijing, China.
Attending the conference from Home Inns will be May Wu, Chief Financial Officer, and Ethan Ruan, Investor Relations Manager. On January 14, the company will give a group presentation and hold investor meetings.
Nanpeng Shen and James Jianzhang Liang co-founded the company in 2001.