BTG Hotels(SH:600258) Xin Lang Cai Jing·2025-04-01 00:31Industry Overview - The hotel industry is facing significant pressure in 2024, following a strong recovery in 2023 driven by pent-up travel demand during the pandemic, leading to a high base for comparison [1] - The overall RevPAR for domestic hotels in 2024 is projected to be 118 yuan, a decrease of 9.7% year-on-year; occupancy (Occ) is expected to be 58.8%, down 2.5 percentage points; and average daily rate (ADR) is forecasted at 200 yuan, a decline of 5.8% [1] Company Performance - The company has accelerated structural adjustments, resulting in an increase in operating profit despite industry challenges. The RevPAR for the company's hotels, excluding light management hotels, is 167 yuan, down 3.2% year-on-year; Occ is 68.2%, a decrease of 0.6 percentage points; and ADR is 245 yuan, down 2.3% [2] - In 2024, the company achieved total revenue of 7.751 billion yuan, a slight decline of 0.54% year-on-year, while net profit attributable to shareholders reached 806 million yuan, an increase of 1.41% [2] - Key factors contributing to the company's resilience include: - Accelerated expansion with 1,353 new openings in 2024, a 12.5% increase year-on-year, and a net increase of 739 stores, up 163.9% [2] - Improved hotel structure with 412 new mid-to-high-end hotels opened, a 45.6% increase, and a net increase of 311 mid-to-high-end hotels, up 52.5% [2] - Effective cost control measures implemented to manage expenses [2] Future Outlook - The company is rated as a "buy" due to its position as one of the leading hotel groups in China, achieving profit growth through structural adjustments and cost management [3] - The company plans to open 1,500 new stores in 2025, indicating potential for accelerated growth [3] - Expected earnings per share for 2025 and 2026 are projected to be 0.84 yuan and 0.90 yuan, respectively, with current stock prices corresponding to PE ratios of 15.82 and 14.72 times [3]