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Home Inns HMIN stays in the game

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Here is the Q2 results (Xinhua-PRNewswire). Besides revenue and earning, I’m more interested in the following numbers:

— During the second quarter of 2007, Home Inns opened 26 new hotels. As of June 30, 2007, the Home Inns hotel chain consisted of 171 hotels in operation with an additional 63 hotels under development, covering 66 cities in China.

— The occupancy rate for the Home Inns hotel chain was 95% in the second quarter of 2007, compared with 98% during the same period in 2006 and 86% in the previous quarter.

— RevPAR, defined as revenue per available room, was RMB174 in the second quarter of 2007, compared with RMB182 in the same period in 2006 and RMB151 in the previous quarter.

RevPAR is tied to the occupancy rate. It appears Home Inns has not raised the room rate in the past year, although their cost should have gone up, which means lower profit margin. The low occupany rate of Q1 is mainly due to Chinese New Year (the street won’t sympathize on that). I no longer have HMIN shares but I think they did OK this quarter.

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