Home Inns & Hotels Management Inc. (Nasdaq: HMIN) announced 2007 full year results with revenue of US$138.4 million, up 71.5 percent year-on-year, and net income of US$4.9, compared to $6.0 million in 2006, after market close on Monday. In the fourth quarter, revenue was up 23 percent quarter-on-quarter to $44.9 million, while the company booked a net loss of $2.1 million.
Home Inns had an occupancy rate of 88.3 percent in the three month period, compared to 95 percent in the third quarter. Home Inns opened 40 new hotels and acquired 25 operational Top Star hotels during the quarter. Revenue per available room was RMB155, down from RMB174 in the third quarter. By year end, Home Inns had 266 hotels in operation, with an average of 123 rooms each. Home Inns expects first quarter 2008 revenue to come in between $45 million and $48 million.
Company CFO May Wu attributed increased costs and "negative margin pressure" to Top Star's lower room rates and lower-tier city expansion. The company predicts full year revenue growth of 70-80 percent from 2007.
Beginning in 2008, the company's former senior operations vice president Jason Zong has taken over as COO. Previous COO, Liang Rixin, is the company's new chief branding officer.