Jin Jiang Hotels profits up by 41.48% in Q1 2015
Jin Jiang reported a 41.48% increase in revenue and 59.1% increase in net profit in Q1 y-o-y, at RMB909 million and RMB154 million respectively.
Jin Jiang International Holdings reported a 41.48% increase in revenue and 59.1% increase in net profit in Q1 y-o-y, at RMB909 million and RMB154 million respectively, according to its 2015 Q1 financial report. About RMB129 million or 84% of its net profit was generated from earnings of Changjiang Securities, subsidies and other non-recurring gains and losses.
The net profit net of non-recurring gains and losses attributable to shareholders of listed company was RMB25 million，of which some 50%, or RMB12 million, was net profit from its newly acquired French hotel group Louvre Hotels Group in the first quarter. Jin Jiang International fully acquired Louvre for 1.3 billion euros in January this year.
While Jin Jiang’s limited-service hotel chain achieved overall y-o-y growth of 45.65% with RMB846 million in consolidated revenue, its domestic operations only grew 4.12% in turnover, indicating gloomy economic outlooks for its domestic hotels. Jin Jiang hotels’ occupancy rate and RevPAR also slid 2.72% and 4.3% respectively y-o-y.
Jin Jiang has added 1,162 limited-service hotels to its portfolio, among them 254 are directly managed and 908 are franchised, bringing the total number of this category of properties to 2,130 as of March 31 this year. Of the newly added hotels,1,132 are under the banner of Louvre Hotels.
Jin Jiang also announced it will take out a three-year syndicated bank loan of 1.29 billion euro via its wholly-owned subsidiary.(Translation by David)