I don’t know if it’s coincidence, but China’s top 3 US-listed hotel operators have all released their latest quarterly results on the same day, revealing a range of issues with a broader theme that points to stability in the industry despite China’s rapidly softening economy. The results from Home Inns (Nasdaq: HMIN), China Lodging Group (Nasdaq: HTHT) and 7 Days Group (NYSE: SVN) all tell slightly different stories, as each chain faces its own different issues. Based on my quick read, China Lodging seems to look the best right now, while Home Inns struggles with its recent mega-acquisition of Motel 168 and 7 Days faces operational issues.
Tag Archives: China Lodging Group
News Digest: August 10, 2012 报摘： 2012年8月10日
The following press releases and media reports about Chinese companies were carried on August 9. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
- Online Price Wars to Wrap Up Soon: Dangdang (NYSE: DANG) CEO (Chinese article)
- 7 Days Group (NYSE: SVN) Announces Unaudited Q2 Financial Results (PRNewswire)
- China Lodging Group (Nasdaq: HTHT) Reports Q2 Financial Results (Globe Newswire)
- Bernstein Liebhard Announces Securities Class Action Against Suntech (NYSE: STP) (PRNewswire)
- China to Subsidies Appliances to Lift Consumption (English article)
- Latest calendar for Q2 earnings reports (Earnings calendar)
News Digest: July 13, 2012 报摘： 2012年7月13日
The following press releases and media reports about Chinese companies were carried on July 13. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
- China’s Cable Operators to Receive Subsidies for Broadband – Source (English article)
- China Lodging Group (Nasdaq: HTHT) Announces Preliminary Q2 Operating Results (PRNewswire)
- Tom Group (HKEx: 2383) May Lose Skype China Operating Rights – Source (English article)
- Foreign Ministry Responds to EU Probe Against Huawei, ZTE (HKEx: 763) (Chinese article)
- ZTE (HKEx: 763) Says to Release Most Advanced Gaming Smart Phone in 6 Days (Chinese article)
News Digest: June 2-4, 2012 报摘： 2012年6月2-4日
The following press releases and media reports about Chinese companies were carried on June 2-4. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
◙ MIIT Official: China’s 3G User Base Just 80 Mln (English article)
◙ China Lodging Group (Nasdaq: HTHT) Announces Investment in Starway Hotels (PRNewswire)
◙ Renren (NYSE: RENN) Considers Spin-Off, Listing for Game Unit – Source (Chinese article)
◙ Google (Nasdaq: GOOG) Warns China Users on Searches That May Break Connection (English article)
◙ Tencent (HKEx: 700) Soso, Microsoft (Nasdaq: MSFT) Bing to Tie Up on Search Ads – Source (Chinese article)
News Digest: March 8, 2012 报摘： 2012年3月8日
The following press releases and media reports about Chinese companies were carried on March 8. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
◙ China Mobile (HKEx: 941) to Invest in National Cable TV Operator – Source (English article)
◙ Sinopec (HKEx: 386) Clarifies Situation on China Gas (HKEx: 384) Bid (HKEx announcement)
◙ Proview Applies to Block Apple (Nasdaq: AAPL) iPad Imports Amid Trademark Dispute (Chinese article)
◙ China Lodging Group (Nasdaq: HTHT) Reports Q4 and Full Year Results (PRNewswire)
◙ Canadian Solar (Nasdaq: CSIQ) Reports Q4 and Fiscal Year 2011 Results (PRNewswire)
◙ Latest calendar for Q4 earnings reports (Earnings calendar)
News Digest: November 11, 2011
The following press releases and media reports about Chinese companies were carried on November 11. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
◙ China’s Sinochem Planning Up To $5.5 Billion Shanghai IPO (English article)
◙ Caterpillar (NYSE: CAT) to make buyout offer for ERA Mining (HKEx: 8043) (English article)
◙ SouFun (NYSE: SFUN) Announces Q3 Results (PRNewswire)
◙ Renren (NYSE: RENN) Announces Unaudited Q3 Results (PRNewswire)
◙ China Lodging Group (Nasdaq: HTHT) Reports Q3l Results (PRNewswire)
China Hotels: Is the Holiday Over?
7 Days (NYSE: SVN) has just reported its second-quarter results, becoming the last of China’s top 3 budget hotel operators to report on a landscape that looks like the holiday may be over for these former high-flyers. Among the trio, which also includes Home Inns (Nasdaq: HMIN) and Hanting hotels operator China Lodging Group (Nasdaq: HTHT), only 7 Days reported respectable revenue growth of 42 percent for the quarter, with China Lodging reporting 25 percent growth and Home Inns reporting 12 percent. But more worrisome, all 3 said they expect the growth rate to slow in the third quarter, and both Home Inns and China Lodging lowered their 2011 revenue outlook by about 16 percent. (7 Days results; Home Inn results; China Lodging results) It’s probably too soon to say the big-growth days are finished for the budget hotel sector, which expanded rapidly in the last 5 years as millions of newly mobile Chinese took to the roads for both business and leisure travel. All 3 companies saw especially strong growth in last year’s second and third quarters during the Shanghai Expo, and cited the “Expo effect” as partly responsible for this year’s slowdown as business returns to more normal levels. (previous post) Still, the fact that 2 of the 3 companies lowered their full-year guidance means the post-Expo slowdown is worse than expected, possibly due to Beijing’s ongoing efforts to try and slow its racing economy. Consolidation in the sector seems inevitable, with both Home Inns and 7 Days announcing recent acquisitions to improve their scale and performance. (previous post) That said, a return to better growth for all 3 looks inevitable starting in the fourth quarter, when both Home Inns and 7 Days will start to include their acquisitions in their results and when the Expo hangover effect will finally be in the past.
Bottom line: China’s budget hotel operators will post weak results through the third quarter, but will return to more robust growth by year end as the Expo effect fades.
Related postings 相关文章:
◙ Hotel Consolidation Moves Ahead With 7 Days Deal 七天连锁酒店收购表明酒店业整合继续
