GUANGZHOU, China, March 11, 2013 /PRNewswire/ -- 7 Days Group
Holdings Limited ("7 Days Group" or the "Company") (NYSE: SVN), a
leading and fast growing national economy hotel chain based in
China, today announced its
unaudited financial results for the fourth quarter and full year
2012.
Fourth Quarter 2012 Financial
Highlights
- Total net revenues for the fourth quarter 2012 increased by
27.6% year-over-year to RMB696.0
million (US$111.7
million)[2].
- Income from operations for the fourth quarter 2012 was
RMB51.1 million (US$8.2 million), compared to RMB34.9 million in the fourth quarter 2011.
Non-GAAP income from operations for the quarter was RMB56.3 million (US$9.0
million), compared to RMB44.5
million for the same period in 2011.
- EBITDA for the fourth quarter was RMB141.2 million (US$22.7
million), an increase of 30.3% year-over-year from
RMB108.4 million for the same period
in 2011. Adjusted EBITDA for the quarter was RMB146.4 million (US$23.5
million), an increase of 24.1% year-over-year. EBITDA margin
was 20.3% compared to 19.9% in the same period in 2011. Adjusted
EBITDA margin was 21.0%, compared to 21.6% in the prior year
period.
- Net income attributable to the Company's ordinary shareholders
for the quarter was RMB37.9 million
(US$6.1 million), compared to
RMB35.2 million for the same period
in 2011. Non-GAAP net income attributable to the Company's ordinary
shareholders for the quarter was RMB43.1
million (US$6.9 million),
representing a year-over-year decrease of 3.8%.
- Basic and diluted earnings per ADS[3] were RMB0.77 (US$0.12)
and RMB0.77 (US$0.12) respectively. Non-GAAP basic and
diluted earnings per ADS were RMB0.88
(US$0.14) and RMB0.88 (US$0.14),
respectively.
- Net operating cash inflow was RMB154.5
million (US$24.8 million),
compared to RMB106.1 million in the
same period in 2011.
Full Year 2012 Financial Highlights
- Total net revenues for the full year 2012 increased by 27.6%
year-over-year to RMB2,557.2 million
(US$410.5 million).
- Income from operations for 2012 was RMB240.3 million (US$38.6
million), compared to RMB151.1
million in 2011. Non-GAAP income from operations increased
by 37.4% to RMB267.4 million
(US$42.9 million) from RMB194.6 million in 2011.
- EBITDA for the full year 2012 was RMB581.3 million (US$93.3
million), an increase of 41.0% year-over-year from
RMB412.1 million in 2011. Adjusted
EBITDA was RMB608.4 million
(US$97.7 million), an increase of
33.5% year-over-year compared to RMB455.6
million in 2011. EBITDA margin was 22.7% compared to 20.6%
in 2011. Adjusted EBITDA margin was 23.8% compared to 22.7% in
2011.
- Net income attributable to the Company's ordinary shareholders
for 2012 was RMB176.0 million
(US$28.3 million), compared to
RMB128.9 million in the previous
year. Non-GAAP net income attributable to the Company's ordinary
shareholders was RMB203.2 million
(US$32.6 million), representing a
year-over-year increase of 17.9%.
- Basic and diluted earnings per ADS were RMB3.55 (US$0.57)
and RMB3.54 (US$0.57), respectively. Non-GAAP basic and
diluted earnings per ADS were RMB4.10
(US$0.66) and RMB4.09 (US$0.66),
respectively.
- Net operating cash inflow was RMB572.5
million (US$91.9 million),
compared to RMB457.5 million in
2011.
Fourth Quarter and Full Year
2012 Operational Highlights
- Added 109 net hotels, comprising 32 net leased-and-operated
hotels and 77 net managed hotels in the fourth quarter 2012.
- Added 401 net hotels, comprising 81 net leased-and-operated
hotels and 320 net managed hotels in the full year 2012.
- As of December 31, 2012, 7 Days
Group had 1,345 hotels in operation, consisting of 492
leased-and-operated hotels and 853 managed hotels, representing a
total of 133,497 rooms covering 208 cities.
- As of December 31, 2012, there
were a total of 223 hotels in the pipeline, including 21
leased-and-operated hotels under conversion and 202 managed hotels
contracted but not yet opened.
- For the fourth quarter 2012, occupancy rates for
leased-and-operated hotels, managed hotels and all hotels were
79.2%, 77.4% and 78.1%, respectively, compared to 86.4%, 80.0% and
82.8%, respectively, in the fourth quarter 2011.
- For the full year 2012, the occupancy rates for
leased-and-operated hotels, managed hotels and overall occupancy
rates were 82.9%, 80.3% and 81.3%, respectively, compared to 87.9%,
81.5% and 84.6%, respectively, in 2011. The year-over-year decrease
in occupancy rates in the full year 2012 was primarily a result of
the impact from the macro economic situation.
- RevPAR[4] for leased-and-operated hotels in the fourth quarter
2012 was RMB133.4, compared to
RMB143.3 in the same period in 2011.
RevPAR for managed hotels for the period was RMB121.9, compared to RMB123.5 for the same period in 2011. For
the full year 2012, RevPAR for all hotels decreased to RMB131.5 from RMB136.2 in 2011; while RevPAR for
leased-and-operated hotels and managed hotels was RMB138.3 and RMB126.9, respectively, compared to RMB146.0 and RMB127.0, respectively, in the full year
2011.
- As of December 31, 2012, the
number of 7 Days Club members was approximately 52.9 million, a 57%
increase from 33.8 million as of December
31, 2011.
[1]
|
Definition
of Total transaction value: total room revenue from
leased-and-operated hotels and managed hotels. The metric is
highlighted as an indicator of the scale and reach of 7 Days'
brands.
|
[2]
|
The
Company's reporting currency is Renminbi ("RMB"). The translation
of amounts from RMB to United States Dollars is solely for the
convenience of the reader. RMB amounts included in this press
release have been translated into U.S. dollars at the exchange rate
of December 31, 2012 as set forth in the H.10 statistical release
of the Federal Reserve Board, which was US$1.00 = RMB6.2301. No
representation is made that RMB amounts could have been, or could
be, converted into U.S. Dollars at that rate or at any other rate
on December 31, 2012.
|
[3]
|
Each ADS
represents 3 of the Company's ordinary shares.
|
[4]
|
RevPAR
represents revenue per available room.
|
Recent Business Developments:
Mr. Yuezhou Lin, 7 Days Group's
Chief Executive Officer and Director, commented, "We are pleased to
report a strong fourth quarter with financial results exceeding our
guidance, concluding a solid year of steady strategic and
operational progress. With our healthy pipeline and increasing
economies of scale, we expect to maintain our fast expansion pace
in 2013, which we believe will further solidify our position as the
market leader in the economy hotel industry."
On February 28, 2013, 7 Days Group
announced it entered into a definitive Agreement and Plan of
Merger with various parties pursuant to which Keystone
Lodging Company Limited will acquire 7 Days Group for US$4.60 per ordinary share or US$13.80 per American Depositary Share, each
representing three ordinary shares ("ADSs"), through the merger of
its wholly owned acquisition subsidiary, Keystone Lodging
Acquisition Limited, with and into 7 Days Group, with 7 Days Group
continuing as the surviving corporation and a wholly owned
subsidiary of Keystone Lodging Company Limited (the "Merger"). The
consideration to be paid in the Merger represents a 30.6% premium
over the closing price of US$10.57
per ADS as quoted by the New York Stock Exchange on September 25, 2012, the last trading day prior to
7 Days Group's announcement on September 26,
2012 that it had received a "going private" proposal, and
implies an equity value for 7 Days Group of approximately
US$688 million, on a fully diluted
basis.
For detailed information, please refer to the Company's news
release on February 28, 2013 at the
Company's website (http://en.7daysinn.cn).
Fourth Quarter 2012 Unaudited Financial
Results
Gross revenues. Gross revenues for the fourth
quarter 2012 were RMB736.4 million
(US$118.2 million), representing a
year-over-year increase of 27.3% from RMB578.5 million in the fourth quarter 2011 and
an increase of 1.7% from RMB724.3
million in the third quarter 2012.
Gross revenues from leased-and-operated hotels.
Gross revenues from leased-and-operated hotels for the fourth
quarter 2012 amounted to RMB648.4
million (US$104.1 million),
representing a 22.9% increase from RMB527.6
million in the fourth quarter 2011 and an increase of 0.3%
from RMB646.3 million in the third
quarter 2012.
Gross revenues from managed hotels. Gross revenues
from managed hotels for the fourth quarter 2012 increased by 72.9%
to RMB88.0 million (US$14.1 million) from RMB50.9 million in the same period in 2011, and
increased by 12.9% from RMB77.9
million in the third quarter 2012. During the fourth quarter
2012, the Company opened 77 net managed hotels.
Total net revenues. Total net revenues for the
fourth quarter 2012 totaled RMB696.0
million (US$111.7 million),
representing a year-over-year increase of 27.6% from RMB545.6 million in fourth quarter 2011 and a
quarter-over-quarter increase of 1.8% from RMB683.4 million in the third quarter 2012,
primarily resulting from the continued growth in the number of
hotels in operation.
Hotel operating costs. Hotel operating costs for
the fourth quarter 2012 were RMB560.6
million (US$90.0 million), or
80.5% of total net revenues, compared with 77.5% of total net
revenues in the fourth quarter 2011 and 75.7% of total net revenues
in the third quarter 2012.
Sales and marketing expenses. Sales and marketing
expenses for the fourth quarter 2012 were RMB31.7 million (US$5.1
million), or 4.6% of total net revenues, compared with 3.4%
of total net revenues in the same period of 2011 and 2.8% in the
third quarter 2012. The quarter-over-quarter increase in sales and
marketing expenses was due to business development activities and
associated media and brand promotions at the year end and slightly
increased advertising expenses and sales commissions during the
fourth quarter 2012.
General and administrative expenses. General and
administrative expenses for the fourth quarter 2012 were
RMB52.6 million (US$8.4 million), or 7.6% of total net revenues,
compared to RMB69.5 million, or 12.7%
of total net revenues in the same period of 2011, and RMB57.6 million, or 8.4% of total net revenues in
the third quarter 2012. The year-over-year decrease in general and
administrative expenses was primarily due to the decreased
impairment loss for property and equipment as well as decreased
share-based compensation expenses.
Accordingly, total operating costs and expenses amounted to
RMB644.9 million (US$103.5 million), representing 92.7% of total
net revenues, compared to 93.6% of total net revenues in the same
period of 2011 and 86.9% in the third quarter 2012.
Income from operations. Income from operations for
the fourth quarter 2012 was RMB51.1
million (US$8.2 million),
compared to RMB34.9 million in the
fourth quarter 2011 and RMB89.6
million in the third quarter 2012. Non-GAAP income from
operations was RMB56.3 million
(US$9.0 million), compared to
RMB44.5 million for the same period
of 2011 and RMB96.8 million in the
third quarter 2012.
EBITDA. EBITDA for the fourth quarter was
RMB141.2 million (US$22.7 million), an increase of 30.3%
year-over-year from RMB108.4 million
for the same period in 2011. Adjusted EBITDA for the quarter was
RMB146.4 million (US$23.5 million) an increase of 24.1%
year-over-year. EBITDA margin was 20.3% compared to 19.9% in the
same period in 2011. Adjusted EBITDA margin was 21.0% compared to
21.6% in the prior year period.
Interest expense. Interest expense for the fourth
quarter 2012 was RMB2.9 million,
(US$0.5 million) compared to
RMB4.6 million for the same period of
2011 and RMB5.2 million in the third
quarter 2012.
Income tax expense. Income tax expense for the
fourth quarter 2012 was RMB13.8
million (US$2.2 million),
compared to RMB2.5 million in the
same period of 2011 and RMB25.0
million in the third quarter 2012.
Net income attributable to 7 Days Group
Holdings Limited ordinary
shareholders. Net income attributable to 7 Days Group
Holdings Limited ordinary shareholders was RMB37.9 million (US$6.1
million) in the fourth quarter 2012, compared to
RMB35.2 million in the fourth quarter
2011 and RMB63.6 million in the third
quarter 2012.
Non-GAAP net income. Non-GAAP net income was
RMB43.1 million (US$6.9 million), compared to Non-GAAP net income
of RMB44.8 million for the fourth
quarter 2011 and Non-GAAP net income of RMB70.8 million in the third quarter 2012.
Basic and diluted earnings per
ADS. Basic and diluted earnings per ADS were RMB0.77 (US$0.12)
and RMB0.77 (US$0.12), respectively, for the fourth quarter
2012, compared to basic and diluted earnings per ADS of
RMB0.70 in the fourth quarter 2011
and basic and diluted earnings per ADS of RMB1.29 in the third quarter 2012. Non-GAAP basic
and diluted earnings per ADS were RMB0.88 (US$0.14)
and RMB0.88 (US$0.14), respectively, for the fourth quarter
2012, compared to non-GAAP basic and diluted earnings per ADS of
RMB0.90 and RMB0.89, respectively, in the same period of 2011
and basic and diluted earnings per ADS of RMB1.44 and RMB1.43, respectively, in the third quarter
2012.
Cash and pledged bank deposits. As of December 31, 2012, the Company had cash and
pledged bank deposits of RMB382.3
million (US$61.4 million),
representing a quarter-over-quarter decrease of 1.6% from
RMB388.6 million as of September 30, 2012 and a year-over-year decrease
of 25.5% from RMB513.1 million as of
December 31, 2011, respectively.
Operating cash flow. Net operating cash inflow for
the fourth quarter 2012 was RMB154.5million (US$24.8
million), representing an increase of 45.5% from
RMB106.1 million in the fourth
quarter 2011.
Full Year 2012 Unaudited Financial
Results
Gross revenues. Gross revenues for the full year
2012 were RMB2,709.4 million
(US$434.9 million), representing a
year-over-year increase of 27.3% from RMB2,127.9 million in the full year 2011.
Gross revenues from leased-and-operated hotels.
Gross revenues from leased-and-operated hotels for 2012 amounted to
RMB2,409.8 million (US$386.8 million), representing a 25.0% increase
from RMB1,927.5 million in 2011.
During 2012, the Company opened 81 net leased-and-operated
hotels.
Gross revenues from managed hotels. Gross revenues
from managed hotels for 2012 increased by 49.5% to RMB299.6 million (US$48.1
million) from RMB200.4 million
in 2011. During 2012, the Company opened 320 net managed
hotels.
Total net revenues. Total net revenues for 2012
were RMB2,557.2 million (US$410.5 million), representing a year-over-year
increase of 27.6% from RMB2,003.4
million in the full year 2011, primarily resulting from the
continued growth in the number of hotels in operation.
Hotel operating costs. Hotel operating costs for
2012 were RMB2,033.5 million
(US$326.4 million), or 79.5% of total
net revenues, compared with 79.5% of total net revenues in
2011.
Sales and marketing expenses. Sales and marketing
expenses for 2012 totaled RMB82.1
million (US$13.2 million), or
3.2% of total net revenues, compared with 2.5% of total net
revenues in 2011. The year-over-year increase in sales and
marketing expenses was due to business development activities and
associated media and brand promotions at the year end and increased
advertising expenses and sales commissions during 2012.
General and administrative expenses. General and
administrative expenses for 2012 were RMB201.3 million (US$32.3
million), or 7.9% of total net revenues, compared to
RMB209.8 million, or 10.5% of total
net revenues in 2011. The year-over-year decrease in general and
administrative expenses was a result of decreased impairment loss
for property and equipment as well as decreased share-based
compensation expenses in 2012.
Accordingly, total operating costs and expenses were
RMB2,316.9 million (US$371.9 million), representing 90.6% of total
net revenues, compared to 92.5% of total net revenues in 2011.
Income from operations. Income from operations for
2012 was RMB240.3 million
(US$38.6 million), compared to
RMB151.1 million in 2011. Non-GAAP
income from operations was RMB267.4
million (US$42.9 million),
compared to RMB194.6 million for
2011.
EBITDA. EBITDA was RMB581.3
million (US$93.3 million), an
increase of 41.0% year-over-year from RMB412.1 million in 2011. Adjusted EBITDA was
RMB608.4 million (US$97.7 million) an increase of 33.5%
year-over-year. EBITDA margin was 22.7% compared to 20.6% in 2011.
Adjusted EBITDA margin was 23.8% compared to 22.7% in 2011.
Interest expense. Interest expense for the full
year 2012 was RMB21.5 million
(US$3.4 million) compared to
RMB7.2 million for 2011.
Income tax expense. Income tax expense for 2012
was RMB67.5 million (US$10.8 million), compared to RMB36.3 million in the full year 2011.
Net income attributable to 7 Days Group Holdings
Limited ordinary shareholders.
Net income attributable to 7 Days Group Holdings Limited ordinary
shareholders was RMB176.0 million
(US$28.3 million) in the full year
2012, compared to RMB128.9 million in
2011.
Non-GAAP net income. Non-GAAP net income was
RMB203.2 million (US$32.6 million), compared to Non-GAAP net income
of RMB172.4 million in 2011.
Basic and diluted earnings per
ADS. Basic and diluted earnings per ADS were RMB3.55 (US$0.57)
and RMB3.54 (US$0.57), respectively, for the full year 2012,
compared to basic and diluted earnings per ADS of RMB2.58 and RMB2.56
for 2011, respectively. Non-GAAP basic and diluted earnings per ADS
were RMB4.10 (US$0.66) and RMB4.09 (US$0.66),
respectively, for the full year 2012, compared to non-GAAP basic
and diluted earnings per ADS of RMB3.45 and RMB3.43
in the full year 2011.
Operating cash flow. Net operating cash inflow for
the full year 2012 was RMB572.5
million (US$91.9 million),
representing an increase of 25.1% from RMB457.5 million in 2011.
Guidance
The Company expects to generate total net revenues in the range
of RMB620 million to RMB635 million
in the first quarter 2013 and full year 2013 total net revenues to
grow 15% to 18% over the full year 2012. For the full year 2013,
the Company expects to open 360 new hotels, including 50
leased-and-operated hotels and 310 managed hotels. These forecasts
reflect the Company's current and preliminary view, which is
subject to change.
Conference Call
7 Days Group Holdings Limited senior management will host a
conference call at 10:00 pm (Eastern)
/ 7:00 pm (Pacific) Monday, March 11, 2013, which is 10:00 am (Beijing) on Tuesday,
March 12, 2013 to discuss its fourth quarter and full year
2012 financial results and recent business activity. The conference
call may be accessed by calling the following numbers:
|
|
China:
|
800 8190
121
|
Hong
Kong:
|
852 2475
0994
|
US Toll
Free:
|
1 866 519
4004
|
US New
York:
|
1 718 354
1231
|
International:
|
65 6723
9381
|
Passcode:
|
7Days
|
A live webcast of the conference call and replay will be
available on the investor relations page of 7 Days Group's website
at http://en.7daysinn.cn/.
A telephone replay will be available shortly after the
call. The dial-in details are as follows:
US:
|
1 855 452
5696
|
International:
|
61 2 8199
0299
|
Conference
ID number:
|
97171556
|
About 7 Days Group Holdings Limited
7 Days Group is a leading and fast growing national economy hotel
chain based in China. It converts
and operates limited service economy hotels across major
metropolitan areas in China under
its award-winning "7 Days Inn" brand. The Company strives to offer
consistent and high-quality accommodations and services primarily
to the growing population of value conscious business and leisure
travelers who demand affordable, clean, comfortable, convenient and
safe lodging, and to respond to its guests' needs.
Use of Non-GAAP Financial Measures
To supplement 7 Days Group's unaudited financial results
presented in accordance with U.S. GAAP, the Company has used the
following non-GAAP measures defined as non-GAAP financial measures
by the Securities and Exchange Commission (the "SEC") to report its
financial results:
- Non-GAAP income from operations represents income from
operations reported in accordance with GAAP, excluding share-based
compensation expense.
- Non-GAAP net income represents net income reported in
accordance with GAAP, excluding share-based compensation
expense.
- Non-GAAP earnings per ADS represents non-GAAP net income
divided by the number of ADS used in computing basic and diluted
earnings per ADS.
- EBITDA represents net income reported in accordance with GAAP,
adjusted for the effects of interest income and expense, provision
for income taxes, depreciation and amortization.
- Adjusted EBITDA represents EBITDA, excluding share-based
compensation expense.
The Company believes EBITDA is a useful financial metric to
assess its operating and financial performance before the impact of
investing and financing transactions, if any, and income taxes. In
addition, 7 Days Group believes that EBITDA is widely used by other
companies in the lodging industry and may be used by investors as a
measure of its financial performance. Given the significant
investments that 7 Days Group has made in the past in property and
equipment, depreciation and amortization expense comprises a
meaningful portion of its cost structure. 7 Days Group believes
that EBITDA will provide investors with a useful tool for
comparability between periods because it eliminates depreciation
and amortization expense attributable to capital expenditures. The
presentation of EBITDA should not be construed as an indication
that the Company's future results will be unaffected by other
charges and gains the Company considers to be outside the ordinary
course of its business. 7 Days Group also calculates Adjusted
EBITDA excluding share-based compensation expense. The Company
prepares its financial statements in accordance with GAAP and,
accordingly, expenses its employee share options. Since share-based
compensation expenses are non-cash expenses, the Company believes
excluding them from its calculation of EBITDA allows it to provide
investors with a more useful tool for assessing its operating and
financial performance.
The use of EBITDA and Adjusted EBITDA has certain limitations.
Depreciation and amortization expense for various long-term assets,
such as property and equipment, income tax expense, interest
expense and interest income have been and will be incurred and are
not reflected in the presentation of EBITDA. Each of these items
should also be considered in the overall evaluation of its results.
Additionally, EBITDA does not consider capital expenditures and
other investing activities and should not be considered as a
measure of the Company's liquidity. The Company compensates for
these limitations by providing the relevant disclosure of its
depreciation and amortization, interest expense and interest
income, income tax expense, capital expenditures, share-based
compensation expense and other relevant items both in its
reconciliations to the GAAP financial measures and in its
consolidated financial statements, all of which should be
considered when evaluating the Company's performance. The terms
EBITDA and Adjusted EBITDA are not defined under GAAP, and EBITDA
and Adjusted EBITDA are not measures of net income, operating
income, operating performance or liquidity presented in accordance
with GAAP. When assessing the Company's operating and financial
performance, investors should not consider this data in isolation
or as a substitute for the Company's net income, operating income
or any other operating performance measure that is calculated in
accordance with GAAP. In addition, the Company's EBITDA and
Adjusted EBITDA may not be comparable to EBITDA or Adjusted EBITDA
or similarly titled measures utilized by other companies since such
other companies may not calculate EBITDA and Adjusted EBITDA in the
same manner as the Company does.
For reasons same to the use of EBITDA and Adjusted EBITDA
described above, the Company has also reported net income, basic
and diluted earnings per ADS and income (loss) from operations on a
non-GAAP basis, excluding share-based compensation expenses in the
relevant period. These non-GAAP operating measures are useful
for understanding and assessing the Company's underlying business
performance and operating trends and the Company expects to report
net income, basic and diluted earnings per ADS and income from
operations on a non-GAAP basis using a consistent method on a
quarterly basis going forward.
7 Days Group believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing 7
Days Group's financial performance and liquidity and when planning
and forecasting future periods. Readers are cautioned not to view
non-GAAP results on a stand-alone basis or as a substitute for
results under GAAP, or as being comparable to results reported or
forecasted by other companies, and should refer to the
reconciliation of GAAP results with non-GAAP results for the
periods set forth in the tables at the end of this
release.
Safe Harbor
Statement
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements
and including, among other things, 7 Days Group's revenue guidance
for the first quarter and the full year 2012 and business forecast
for 2012 including the expected number of hotel to be opened
(including the breakdown of expected new leased-and-operated hotels
and new managed hotels), Company's business strategies, its ability
to offer consistent and high-quality accommodations and services at
an affordable price, its ability to leverage economies of scale and
its ability to achieve strict cost controls and to deliver
continued growth. These forward-looking statements are not
historical facts but instead represent only the Company's belief
regarding future events, many of which, by their nature, are
inherently uncertain and outside of the Company's control. The
Company's actual results and financial condition and other
circumstances may differ, possibly materially, from the anticipated
results and financial condition indicated in these forward-looking
statements. In particular, the Company's operating results for any
period are impacted significantly by the mix of leased-and-operated
hotels and managed hotels in its chain, causing the Company's
operating results to fluctuate and making them difficult to
predict.
Other factors that could cause forward-looking statements to
differ materially from actual future events or results include
risks and uncertainties related to: uncertainties associated with
factors typically affecting the lodging industry, including changes
in economic conditions, adverse weather conditions, natural
disasters or outbreaks of serious contagious diseases in markets
where the Company has a presence; uncertainties regarding the
Company's ability to respond to competitive pressures;
uncertainties regarding the Company's ability to manage its
expected growth; uncertainties regarding the Company's ability to
continue its growth and achieve profitability; risks associated
with the Company's limited operating history and historical
operating losses; uncertainties regarding the Company's ability to
fund its working capital needs; uncertainties regarding its ability
to successfully and timely identify, secure or operate additional
hotel properties. The financial information contained in this
release should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's
2010 Annual Report on Form 20-F filed with the SEC on May 4, 2011, which is available on the SEC's
website at www.sec.gov. For a discussion of other important factors
that could adversely affect the Company's business, financial
condition, results of operations and prospects, see "Risk Factors"
beginning on page 7 of the Company's 2010 Annual Report on Form
20-F. The Company's results of operations for the fourth quarter
and the full year of 2011 are not necessarily indicative of its
operating results for any future periods. Any projections in this
release are based on limited information currently available to the
Company, which is subject to change. Although such projections and
the factors influencing them will likely be changed, the Company
will not necessarily update the information. Such information
speaks only as of the date of this release.
Statement Regarding Unaudited Financial
Information
The financial information set forth above is unaudited and
subject to adjustments. Adjustments to the financial statements may
be identified when the annual financial statements are prepared and
audit work is performed for the year end audit, which could result
in significant differences from this unaudited financial
information.
Contacts:
Investor Contact:
Vivian Chen, Investor Relations
Director
7 Days Group Holdings Limited
+86-20-8922-5858
IR@7daysinn.cn
Investor Relations (US):
Mahmoud Siddig, Managing
Director
Taylor Rafferty
Tel: +1 (212) 889-4350
7DaysInn@taylor-rafferty.com
Investor Relations (HK):
Candy Cheung, Senior Consultant
Taylor Rafferty
+852 3196 3712
7DaysInn@taylor-rafferty.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
7 Days
Group Holdings Limited
|
Consolidated balance sheet
information
|
|
Quarter
Ended
|
|
31/Dec/11
|
|
30/Sep/12
|
|
31/Dec/12
|
|
RMB'
000
|
|
RMB'
000
|
|
RMB'
000
|
US$'000
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash
|
493,256
|
|
385,070
|
|
378,809
|
60,803
|
Pledged bank deposits
|
19,852
|
|
3,484
|
|
3,443
|
553
|
Short-term investment
|
10,000
|
|
-
|
|
-
|
-
|
Accounts receivable
|
7,881
|
|
16,870
|
|
17,015
|
2,731
|
Prepaid rent
|
152,629
|
|
173,112
|
|
171,370
|
27,507
|
Other prepaid expenses and current
assets
|
52,550
|
|
69,433
|
|
77,608
|
12,457
|
Hotel supplies
|
47,371
|
|
51,904
|
|
56,591
|
9,083
|
Amounts due from related parties
|
-
|
|
87
|
|
87
|
14
|
Deferred tax assets
|
19,842
|
|
19,144
|
|
26,222
|
4,209
|
Total current assets
|
803,381
|
|
719,104
|
|
731,145
|
117,357
|
Property and equipment, net
|
1,701,431
|
|
1,851,653
|
|
1,970,763
|
316,329
|
Rental deposits
|
69,861
|
|
90,731
|
|
90,824
|
14,578
|
Land use right
|
24,044
|
|
23,581
|
|
23,426
|
3,
760
|
Prepaid rent
|
73,419
|
|
63,822
|
|
71,088
|
11,410
|
Intangible assets, net
|
30,426
|
|
27,272
|
|
26,221
|
4,209
|
Goodwill
|
61,041
|
|
61,041
|
|
61,041
|
9,798
|
Other non-current assets
|
500
|
|
-
|
|
-
|
-
|
Deferred tax assets
|
46,096
|
|
62,615
|
|
62,513
|
10,
034
|
Total assets
|
2,810,199
|
|
2,899,819
|
|
3,037,021
|
487,475
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
249,592
|
|
247,871
|
|
300,240
|
48,192
|
Bills payable
|
16,009
|
|
13,182
|
|
11,475
|
1,842
|
Short-term bank borrowings
|
334,686
|
|
71,000
|
|
130,015
|
20,869
|
Accrued expenses and other payables
|
418,308
|
|
477,603
|
|
511,800
|
82,150
|
Amounts due to related parties
|
333
|
|
1,850
|
|
2,601
|
417
|
Income taxes payable
|
25,509
|
|
36,947
|
|
25,617
|
4,112
|
Total current liabilities
|
1,044,437
|
|
848,453
|
|
981,748
|
157,582
|
Long-term bank borrowings
|
-
|
|
178,975
|
|
121,381
|
19,483
|
Accrued lease payment
|
206,113
|
|
238,642
|
|
256,472
|
41,167
|
Unfavorable lease contract liability
|
7,812
|
|
7,305
|
|
7,136
|
1,145
|
Refundable deposits
|
15,823
|
|
15,050
|
|
14,850
|
2,384
|
Deferred revenue
|
770
|
|
608
|
|
-
|
-
|
Deferred rebate income
|
6,663
|
|
5,984
|
|
5,727
|
919
|
Borrowings from related parties
|
1,388
|
|
892
|
|
752
|
121
|
Income taxes payable
|
6,644
|
|
6,644
|
|
3,317
|
532
|
Deferred tax liabilities
|
4,565
|
|
2,935
|
|
7,527
|
1,208
|
Total liabilities
|
1,294,215
|
|
1,305,488
|
|
1,398,910
|
224,541
|
Equity:
|
|
|
|
|
|
|
Ordinary shares
|
141,080
|
|
141,133
|
|
141,317
|
22,683
|
Treasury stock
|
-
|
|
(67,137)
|
|
(67,137)
|
(10,776)
|
Additional paid-in capital
|
1,623,275
|
|
1,638,948
|
|
1,649,880
|
264,824
|
Accumulated other comprehensive
income
|
330
|
|
1,136
|
|
(721)
|
(116)
|
Accumulated deficit
|
(238,348)
|
|
(100,203)
|
|
(62,303)
|
(10,001)
|
Total 7 Days Group Holdings Limited share holders'
equity
|
1,526,337
|
|
1,613,877
|
|
1,661,036
|
266,614
|
Non-controlling interests
|
(10,353)
|
|
(19,546)
|
|
(22,925)
|
(3,680)
|
Total equity
|
1,515,984
|
|
1,594,331
|
|
1,638,111
|
262,934
|
Total
liabilities and equity
|
2,810,199
|
|
2,899,819
|
|
3,037,021
|
487,475
|
|
|
|
|
|
|
|
7 Days
Group Holdings Limited
Unaudited Consolidated Statements of Income
and Comprehensive Income
|
|
Quarter
Ended
|
|
Year
Ended
|
|
Dec
31
|
|
Sep
30
|
|
Dec
31
|
|
Dec
31
|
|
Dec
31
|
|
2011
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
US$'000
|
|
RMB'000
|
|
RMB'000
|
US$'000
|
Total Revenues
|
578,481
|
|
724,252
|
|
736,385
|
118,198
|
|
2,127,938
|
|
2,709,356
|
434,881
|
Leased-and-operated hotels
|
527,609
|
|
646,330
|
|
648,427
|
104,080
|
|
1,927,537
|
|
2,409,805
|
386,800
|
Managed hotels
|
50,872
|
|
77,922
|
|
87,958
|
14,118
|
|
200,401
|
|
299,551
|
48,081
|
Less: Business tax and surcharges
|
(32,852)
|
|
(40,854)
|
|
(40,355)
|
(6,477)
|
|
(124,560)
|
|
(152,171)
|
(24,425)
|
Net revenues
|
545,629
|
|
683,398
|
|
696,030
|
111,721
|
|
2,003,378
|
|
2,557,185
|
410,456
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating costs
|
(422,878)
|
|
(517,129)
|
|
(560,637)
|
(89,988)
|
|
(1,593,260)
|
|
(2,033,508)
|
(326,400)
|
Rental expenses
|
(152,923)
|
|
(179,513)
|
|
(190,645)
|
(30,601)
|
|
(571,351)
|
|
(707,692)
|
(113,592)
|
Staff cost
|
(88,794)
|
|
(100,887)
|
|
(114,169)
|
(18,325)
|
|
(317,374)
|
|
(406,623)
|
(65,267)
|
Depreciation and amortization
|
(66,961)
|
|
(80,602)
|
|
(84,790)
|
(13,610)
|
|
(241,020)
|
|
(314,189)
|
(50,431)
|
Hotel supplies
|
(25,967)
|
|
(35,800)
|
|
(40,439)
|
(6,491)
|
|
(97,452)
|
|
(135,112)
|
(21,687)
|
Utilities
|
(35,618)
|
|
(47,744)
|
|
(46,554)
|
(7,472)
|
|
(145,468)
|
|
(190,030)
|
(30,502)
|
Other
|
(52,615)
|
|
(72,583)
|
|
(84,040)
|
(13,489)
|
|
(220,595)
|
|
(279,862)
|
(44,921)
|
Sales and marketing expenses
|
(18,336)
|
|
(19,059)
|
|
(31,702)
|
(5,089)
|
|
(49,222)
|
|
(82,116)
|
(13,181)
|
General and administrative
expenses
|
(69,542)
|
|
(57,596)
|
|
(52,555)
|
(8,436)
|
|
(209,786)
|
|
(201,271)
|
(32,306)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and
expenses
|
(510,756)
|
|
(593,784)
|
|
(644,894)
|
(103,513)
|
|
(1,852,268)
|
|
(2,316,895)
|
(371,887)
|
Income from operations
|
34,873
|
|
89,614
|
|
51,136
|
8,208
|
|
151,110
|
|
240,290
|
38,569
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
2,350
|
|
1,716
|
|
800
|
128
|
|
6,224
|
|
7,887
|
1,266
|
Interest expense
|
(4,627)
|
|
(5,221)
|
|
(2,875)
|
(461)
|
|
(7,212)
|
|
(21,459)
|
(3,444)
|
Equity income (loss) of an affiliate
|
-
|
|
-
|
|
-
|
-
|
|
120
|
|
-
|
-
|
Income before income tax
|
32,596
|
|
86,109
|
|
49,061
|
7,875
|
|
150,242
|
|
226,718
|
36,391
|
Income tax expenses
|
(2,507)
|
|
(25,011)
|
|
(13,844)
|
(2,222)
|
|
(36,259)
|
|
(67,540)
|
(10,841)
|
Net income
|
30,089
|
|
61,098
|
|
35,217
|
5,653
|
|
113,983
|
|
159,178
|
25,550
|
Net
income attributable to non-controlling interest
|
5,131
|
|
2,511
|
|
2,683
|
431
|
|
14,903
|
|
16,867
|
2,707
|
Net income attributable to 7 Days
Group Holdings Limited ordinary
shareholders
|
35,220
|
|
63,609
|
|
37,900
|
6,084
|
|
128,886
|
|
176,045
|
28,257
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary
share
|
0.23
|
|
0.43
|
|
0.26
|
0.04
|
|
0.
86
|
|
1.18
|
0.19
|
Diluted earnings per ordinary
share
|
0.23
|
|
0.43
|
|
0.26
|
0.04
|
|
0.85
|
|
1.18
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction
adjustment, net of nil income tax
|
(2,861)
|
|
480
|
|
(1,857)
|
(298)
|
|
(15,319)
|
|
(1,051)
|
(169)
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
27,228
|
|
61,578
|
|
33,360
|
5,355
|
|
98,664
|
|
158,127
|
25,381
|
Less: Comprehensive income
attributable to noncontrolling interest
|
(5,131)
|
|
(2,511)
|
|
(2,683)
|
(431)
|
|
(14,903)
|
|
(16,867)
|
(2,707)
|
Comprehensive income attributable to
7 Days Group Holdings Limited
ordinary shareholders
|
32,359
|
|
64,089
|
|
36,043
|
5,786
|
|
113,567
|
|
174,994
|
28,088
|
|
|
|
|
|
|
|
|
|
|
|
|
7 Days
Group Holdings Limited
Reconciliation of GAAP and Non-GAAP
Results
|
EBITDA
(non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec
31
|
|
Sep
30
|
|
Dec
31
|
|
Dec
31
|
|
Dec
31
|
|
|
2011
|
|
2012
|
|
2012
|
|
2011
|
|
201
|
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
US$'000
|
|
RMB'000
|
|
RMB'000
|
US$'000
|
Net income attributable to 7 Days Group
Holdings Limited ordinary shareholders
|
|
35,220
|
|
63,609
|
|
37,900
|
6,084
|
|
128,886
|
|
176,045
|
28,257
|
Interest
income
|
|
(2,350)
|
|
(1,716)
|
|
(800)
|
(128)
|
|
(6,224)
|
|
(7,887)
|
(1,266)
|
Interest
expense
|
|
4,627
|
|
5,221
|
|
2,875
|
461
|
|
7,212
|
|
21,459
|
3,444
|
Income tax
expenses
|
|
2,507
|
|
25,011
|
|
13,844
|
2,222
|
|
36,259
|
|
67,540
|
10,841
|
Depreciation and amortization
|
|
68,382
|
|
83,237
|
|
87,429
|
14,033
|
|
246,007
|
|
324,126
|
52,026
|
EBITDA
(non-GAAP)
|
|
108,386
|
|
175,362
|
|
141,248
|
22,672
|
|
412,140
|
|
581,283
|
93,302
|
EBITDA%
|
|
19.9%
|
|
25.7%
|
|
20.3%
|
20.3%
|
|
20.6%
|
|
22.7%
|
22.7%
|
Share-based compensation expenses
|
|
9,585
|
|
7,227
|
|
5,187
|
833
|
|
43,483
|
|
27,127
|
4,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP) excluding share-based
compensation expenses
|
|
117,971
|
|
182,589
|
|
146,435
|
23,505
|
|
455,623
|
|
608,410
|
97,656
|
Adjusted EBITDA%
|
|
21.6%
|
|
26.7%
|
|
21.0%
|
21.0%
|
|
22.7%
|
|
23.8%
|
23.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to 7 Days Group
Holdings Limited ordinary shareholders
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec
31
|
|
Sep
30
|
|
Dec
31
|
|
Dec
31
|
|
Dec
31
|
|
|
2011
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
US$'000
|
|
RMB'000
|
|
RMB'000
|
US$'000
|
Net income attributable to 7 Days Group
Holdings Limited ordinary shareholders
(GAAP)
|
|
35,220
|
|
63,609
|
|
37,900
|
6,084
|
|
128,886
|
|
176,045
|
28,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expenses
|
|
9,585
|
|
7,227
|
|
5,187
|
833
|
|
43,483
|
|
27,127
|
4,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to ordinary
shareholders excluding share-based
compensation expenses (Non-GAAP net
income)
|
|
44,805
|
|
70,836
|
|
43,087
|
6,917
|
|
172,369
|
|
203,172
|
32,611
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec
31
|
|
Sep
30
|
|
Dec
31
|
|
Dec
31
|
|
Dec
31
|
|
|
2011
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
|
RMB
|
|
RMB
|
|
RMB
|
USD
|
|
RMB
|
|
RMB
|
USD
|
Basic
earnings per ordinary share
(GAAP)
|
|
0.23
|
|
0.43
|
|
0.26
|
0.04
|
|
0.86
|
|
1.18
|
0.19
|
Diluted
earnings per ordinary share
(GAAP)
|
|
0.23
|
|
0.43
|
|
0.26
|
0.04
|
|
0.85
|
|
1.18
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per ordinary
share(Non-GAAP), excluding
share-based compensation expenses
|
|
0.30
|
|
0.48
|
|
0.29
|
0.05
|
|
1.15
|
|
1.37
|
0.22
|
Diluted
earnings per ordinary
share(Non-GAAP), excluding
share-based compensation expenses
|
|
0.30
|
|
0.48
|
|
0.29
|
0.05
|
|
1.14
|
|
1.36
|
0.22
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
weighted average number of
ordinary shares
|
|
149,926,081
|
|
147,769,286
|
|
146,813,397
|
|
149,811,784
|
|
148,602,762
|
Diluted
weighted average number of
ordinary shares
|
|
151,023,253
|
|
148,164,932
|
|
147,384,945
|
|
151,473,066
|
|
149,145,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
31-Dec-11
|
30-Sep-12
|
31-Dec-12
|
|
31-Dec-11
|
31-Dec-12
|
|
|
RMB
'000
|
RMB '000
|
RMB'000
|
USD'000
|
|
RMB
'000
|
RMB'000
|
USD'000
|
Hotel
operating cost
|
|
|
|
|
|
|
|
|
|
GAAP
Result
|
(422,878)
|
(517,129)
|
(560,637)
|
(89,988)
|
|
(1,593,260)
|
(2,033,508)
|
(326,400)
|
|
% of
Total net revenue
|
77.50%
|
75.67%
|
80.55%
|
80.55%
|
|
79.53%
|
79.52%
|
79.52%
|
|
Share-based Compensation
|
384
|
582
|
313
|
50
|
|
2,551
|
1,723
|
277
|
|
% of
Total net revenue
|
0.07%
|
0.09%
|
0.04%
|
0.04%
|
|
0.13%
|
0.07%
|
0.07%
|
|
Non-GAAP
Result
|
(422,494)
|
(516,547)
|
(560,324)
|
(89,938)
|
|
(1,590,709)
|
(2,031,785)
|
(326,123)
|
|
% of
Total net revenue
|
77.43%
|
75.59%
|
80.50%
|
80.50%
|
|
79.40%
|
79.45%
|
79.45%
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
|
|
|
|
|
|
|
|
|
GAAP
Result
|
(18,336)
|
(19,059)
|
(31,702)
|
(5,089)
|
|
(49,222)
|
(82,116)
|
(13,181)
|
|
% of
Total net revenue
|
3.36%
|
2.79%
|
4.55%
|
4.55%
|
|
2.46%
|
3.21%
|
3.21%
|
|
Share-based Compensation
|
627
|
703
|
578
|
93
|
|
1,094
|
2,481
|
398
|
|
% of
Total net revenue
|
0.11%
|
0.10%
|
0.08%
|
0.08%
|
|
0.05%
|
0.10%
|
0.10%
|
|
Non-GAAP
Result
|
(17,709)
|
(18,356)
|
(31,124)
|
(4,996)
|
|
(48,128)
|
(79,635)
|
(12,783)
|
|
% of
Total net revenue
|
3.25%
|
2.69%
|
4.47%
|
4.47%
|
|
2.40%
|
3.11%
|
3.11%
|
|
|
|
|
|
|
|
|
|
|
General
and administrative expenses
|
|
|
|
|
|
|
|
|
|
GAAP
Result
|
(69,542)
|
(57,596)
|
(52,555)
|
(8,436)
|
|
(209,786)
|
(201,271)
|
(32,306)
|
|
% of
Total net revenue
|
12.75%
|
8.43%
|
7.55%
|
7.55%
|
|
10.47%
|
7.87%
|
7.87%
|
|
Share-based Compensation
|
8,574
|
5,942
|
4,296
|
690
|
|
39,838
|
22,923
|
3,679
|
|
% of
Total net revenue
|
1.57%
|
0.87%
|
0.62%
|
0.62%
|
|
1.99%
|
0.90%
|
0.90%
|
|
Non-GAAP
Result
|
(60,968)
|
(51,654)
|
(48,259)
|
(7,746)
|
|
(169,948)
|
(178,348)
|
(28,627)
|
|
% of
Total net revenue
|
11.17%
|
7.56%
|
6.93%
|
6.93%
|
|
8.48%
|
6.97%
|
6.97%
|
|
|
|
|
|
|
|
|
|
|
Total
operating cost and expenses
|
|
|
|
|
|
|
|
|
|
GAAP
Result
|
(510,756)
|
(593,784)
|
(644,894)
|
(103,513)
|
|
(1,852,268)
|
(2,316,895)
|
(371,887)
|
|
% of
Total net revenue
|
93.61%
|
86.89%
|
92.65%
|
92.65%
|
|
92.46%
|
90.60%
|
90.60%
|
|
Share-based Compensation
|
9,585
|
7,227
|
5,187
|
833
|
|
43,483
|
27,127
|
4,354
|
|
% of
Total net revenue
|
1.76%
|
1.06%
|
0.75%
|
0.75%
|
|
2.17%
|
1.06%
|
1.06%
|
|
Non-GAAP
Result
|
(501,171)
|
(586,557)
|
(639,707)
|
(102,680)
|
|
(1,808,785)
|
(2,289,768)
|
(367,533)
|
|
% of
Total net revenue
|
91.85%
|
85.83%
|
91.91%
|
91.91%
|
|
90.29%
|
89.54%
|
89.54%
|
|
|
|
|
|
|
|
|
|
|
Income
from operations
|
|
|
|
|
|
|
|
|
|
GAAP
Result
|
34,873
|
89,614
|
51,136
|
8,208
|
|
151,110
|
240,290
|
38,569
|
|
% of
Total net revenue
|
6.39%
|
13.11%
|
7.35%
|
7.35%
|
|
7.54%
|
9.40%
|
9.40%
|
|
Share-based Compensation
|
9,585
|
7,227
|
5,187
|
833
|
|
43,483
|
27,127
|
4,354
|
|
% of
Total net revenue
|
1.76%
|
1.06%
|
0.75%
|
0.75%
|
|
2.17%
|
1.06%
|
1.06%
|
|
Non-GAAP
Result
|
44,458
|
96,841
|
56,323
|
9,041
|
|
194,593
|
267,417
|
42,923
|
|
% of
Total net revenue
|
8.15%
|
14.17%
|
8.09%
|
8.09%
|
|
9.71%
|
10.46%
|
10.46%
|
|
|
|
|
|
|
|
|
|
|
|
7 Days
Group Holdings Limited Operating Data
|
|
|
As of
and for
the
Quarter Ended
|
|
As of
and for
the
Year Ended
|
|
|
Dec
31
|
Sep
30
|
Dec
31
|
|
Dec
31
|
Dec
31
|
|
|
2011
|
2012
|
2012
|
|
2011
|
2012
|
|
|
|
|
|
|
|
|
Hotels
in operation
|
|
944
|
1,236
|
1,345
|
|
944
|
1,345
|
Leased-and-operated hotels
|
|
411
|
460
|
492
|
|
411
|
492
|
Managed
hotels
|
|
533
|
776
|
853
|
|
533
|
853
|
|
|
|
|
|
|
|
|
Hotels
under conversion
|
|
234
|
228
|
223
|
|
234
|
223
|
Leased-and-operated hotels
|
|
32
|
43
|
21
|
|
32
|
21
|
Managed
hotels
|
|
202
|
185
|
202
|
|
202
|
202
|
|
|
|
|
|
|
|
|
Total
hotel rooms for hotels in operation
|
|
94,684
|
123,080
|
133,497
|
|
94,684
|
133,497
|
Leased-and-operated hotels
|
|
43,021
|
48,380
|
51,725
|
|
43,021
|
51,725
|
Managed
hotels
|
|
51,663
|
74,700
|
81,772
|
|
51,663
|
81,772
|
|
|
|
|
|
|
|
|
Total
hotel rooms for hotels under conversion
|
|
22,485
|
21,674
|
20,368
|
|
22,485
|
20,368
|
|
|
|
|
|
|
|
|
Number
of cities covered for hotels in operation
|
|
141
|
191
|
208
|
|
141
|
208
|
|
|
|
|
|
|
|
|
Average
occupancy rate
|
|
82.8%
|
85.0%
|
78.1%
|
|
84.6%
|
81.3%
|
Leased-and-operated hotels
|
|
86.4%
|
86.1%
|
79.2%
|
|
87.9%
|
82.9%
|
Managed
hotels
|
|
80.0%
|
84.3%
|
77.4%
|
|
81.5%
|
80.3%
|
|
|
|
|
|
|
|
|
Average
daily rate (in RMB)
|
|
159.6
|
165.6
|
161.8
|
|
161.0
|
161.7
|
Leased-and-operated hotels
|
|
165.8
|
169.5
|
168.5
|
|
166.2
|
167.0
|
Managed
hotels
|
|
154.3
|
163.0
|
157.4
|
|
155.8
|
158.0
|
|
|
|
|
|
|
|
|
RevPAR
(in RMB)
|
|
132.2
|
140.9
|
126.4
|
|
136.2
|
131.5
|
Leased-and-operated hotels
|
|
143.3
|
145.9
|
133.4
|
|
146.0
|
138.3
|
Managed
hotels
|
|
123.5
|
137.5
|
121.9
|
|
127.0
|
126.9
|
SOURCE 7 Days Group Holdings Limited