(RTTNews) - Monday, Home Inns & Hotels Management Inc. (HMIN: News ) reported a surge in profit for the third quarter, reflecting a 38% rise in revenues due to higher number of hotels in operation. The company raised its full year revenue growth rate range based on continued improvements in economic environment in China and issued revenue guidance for the fourth quarter.

The Shanghai, China-based company's net income attributable to shareholders rose to RMB 86.74 million or RMB 0.99 per share from RMB 29.46 million or RMB 0.40 per share for year-ago period. In U.S. dollars, net income was $12.71 million or $0.14 per share, up from $4.3 million last year. Earnings per ADS for the quarter was RMB 1.98 or US$0.29.

Adjusted net income attributable to shareholders for the third quarter was RMB 90.23 million or RMB 1.07 per share, compared to RMB 38.41 million or RMB 0.51 per share for the year-ago period. Adjusted earnings per ADS for the quarter was RMB 2.15 per share or US$0.31. The adjustments include, foreign exchange impacts, share-based compensation and gain on buy-back of convertible bond.

Net revenues for the quarter increased by 38% to RMB 683.6 million or US$106.56 million, compared to RMB 496.2 million in the previous year period.

Commenting on the third quarter performance, David Sun, Chief Executive Officer said, "Due to the strong performance at our hotels as well as our restrained expansion efforts, we exceeded our revenue guidance while simultaneously achieving strengthened margins. We are confident that we will see a continued improvement in our performance during the rest of 2009, and that in 2010 we will be able to successfully execute our strategic business initiatives, including the continued expansion of our company throughout China."
Total hotels in operation rose to 583 from 414 a year earlier and total rooms increased to 68.04 thousand rooms from 49.46 thousand rooms last year. Occupancy rate improved to 97% from 85.9% for the same period a year-ago and RevPAR or revenue per available room rose modestly to RMB 157 from RMB 155 a year earlier.

However, average daily rate was lower at RMB 161 compared with RMS 180 last year.

Income from operations for the quarter was RMB 107.86 million or US$ 15.80 million, up from RMB 41.82 million or US$6.2 million for the same period last year. EBITDA for the quarter was RMB 187.46 million or US$ 27.5 million, up from RMB 93.52 million last year and adjusted EBITDA rose by 86.4% year-over-year to RMB 190.95 million or US$ 28.0 million from RMB 102.46 million or US$ 15.1 million.

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