Overview
China hospitality group's Q3 revenue fell 15% yr/yr due to lower RevPAR and ADS
Company's Q3 net income decreased yr/yr, impacted by operational challenges
Company opened 41 hotels, with 1,248 hotels in development pipeline
Outlook
Company maintains hotel revenue guidance at -10% to -13% year-over-year
Result Drivers
REVPAR DECLINE - Revenue per available room decreased 8.4% year-over-year, contributing to lower hotel revenues
HOTEL CLOSURES - Closure of 7 leased-and-operated hotels since Q4 2024 due to lease expirations and strategic reviews impacted revenue
FEE WAIVERS - Temporary waiver of RMB15 million in management fees for struggling franchised hotels reduced revenues
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
RMB 303.60 mln
Q3 Net Income
RMB 60.30 mln
Q3 Adjusted EBITDA
RMB 115 mln
Q3 Income from Operations
RMB 70.10 mln
Press Release: ID:nPn7H0S5Ha
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)