BEIJING (dpa-AFX) - Hotel chain China Lodging Group Ltd. (HTHT), Tuesday reported a swing to loss in the first quarter, hurt by lower occupancy and daily rates.
Shanghai-based China Lodging reported a first-quarter loss of 13.3 million yuan or 0.22 yuan per ADS, compared to a profit of 0.1 million yuan or breakeven per ADS last year. On a U.S. dollar basis, loss for the quarter was $2.1 million or $0.03 per ADS.
Adjusted loss per ADS for the quarter was 0.10 yuan or $0.02.
China Lodging's net revenues increased to 1.03 billion yuan, or $166.3 million, from 866.9 million yuan last year. Analysts polled by Thomson Reuters expected revenues of 1.05 billion yuan for the quarter.
Revenue per available room, an important industry metric of occupancies and rates, dropped to 146 yuan from 149 yuan a year ago, as ADR and occupancy rate decreased reflecting seasonality.
ADR, or the average daily rate for all hotels in operation dropped to 171 yuan from 172 yuan last year. Occupancy rate dropped to 85.5 percent in the quarter from 86.5 percent last year. The company operated a total of 1,530 hotels or 164,192 hotel rooms as of March 31, 2014.
Looking ahead to the second quarter, the company expects revenues of 1.21 billion to 1.24 billion yuan. Analysts currently expect second-quarter revenues of 1.28 billion yuan.
The company reaffirms the full year hotel opening target of 420 to 450 hotels, with 50 to 60 leased hotels and 370 to 390 manachised hotels.
China Lodging Group operates a chain of limited-service hotels in China under JI Hotel, Starway Hotel, HanTing Hotel, and Hi Inn chain.
HTHT closed Tuesday's trading at $21.66, up $0.62 or 2.95%, on the Nasdaq.
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