Tag - AMCN

It’s that year again, when the torch is lit and the world turns its attention to the most talented athletes on the planet. With piqued attention comes piqued spending: the Beijing Olympics are expected to draw 4.5 million tourists to the city in 2008, with inbound spending by visitors to the games estimated at $4.5 billion. Beijing is not China’s only winner in Olympic tourism — 90% of overseas visitors to the city plan to visit other Chinese cities as well.
 
Not bad, especially if you’re Home Inns & Hotels Management, Inc. (Nasdaq:HMIN) and AirMedia Group Inc. (Nasdaq:AMCN), two companies catering to the wanderers of the world.

Home Inns & Hotels is China’s leading budget hotel chain and benefits directly from tourism growth. The company operates hotels across China under its well-known Home Inns brand name. At year end 2007, the Home Inns chain consisted of 266 hotels across 66 cities in China, including 195 leased-and-operated hotels, and 71 franchised-and-managed hotels. Home Inns & Hotels has experienced rapid earnings growth, with per-share earnings rising 46% annually over the past three years.

During 2007, Home Inns & Hotels opened 107 new hotels, including 25 hotels acquired from the Top Star chain in the fourth quarter. Occupancy rates in 2007 averaged 91.1% and revenues per available room were RMB163 (approximately $22.33).

The company’s overall revenues grew 72% in 2007 to $138.4 million from $80.7 million and operating income expanded 43% to $14.6 million from $10.2 million. However, per-share earnings declined 43% year-over-year, to $0.50 from $0.83, because of non-cash charges that included foreign exchange losses, share-based compensation, a non-recurring provision for deferred tax assets and restructuring costs relating to the Top Star hotel acquisition.   

A typical Home Inns hotel has 80 to 150 guest rooms and a standardized design, appearance, décor, color scheme, lighting scheme and set of guest amenities, including free in-room broadband Internet access and air conditioning. The company plans to deepen its penetration . . .