Home Inns & Hotels has announced that their second-quarter earnings rose by 36% as the Chinese hotel chain’s revenue came in at the high end of its upbeat guidance.
It also boosted expansion plans, now projecting 195 to 205 net new hotels this year.
Home Inns’ American depositary shares were up 4.3% at $45. They had risen 22% since the beginning of the year through the close.
Results for China’s largest economy-hotel chain were supported by the country’s economic recovery and increasing domestic travel.
Occupancy climbed to 96.4% from 92.4% a year earlier and 90.5% in the first quarter. Revenue per available room, a key lodging metric known as RevPAR, climbed 16% and 18%, respectively.
Home Inns has been expanding into more high-end hotels. The company has also eyed a shift to more franchised-and-managed hotels because of their profitability.
