BTG Hotels(SH:600258) Xin Lang Cai Jing·2025-11-07 00:26Core Viewpoint - The company reported a slight decline in revenue for the first three quarters of 2025, but a growth in net profit, indicating a mixed performance amid challenges in the hotel industry [1][3]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 5.782 billion yuan, a year-on-year decrease of 1.81%, and a net profit attributable to shareholders of 755 million yuan, an increase of 4.36% [1]. - In Q3 2025, the company generated revenue of 2.12 billion yuan, down 1.6% year-on-year, with a net profit of 358 million yuan, a decline of 2.21% [1]. - The hotel business revenue for the first three quarters was 5.78 billion yuan, down 1.81%, primarily due to the closure of direct-operated stores [1]. Store Expansion and Structure - In Q3 2025, the company opened 387 new stores, including 4 direct-operated and 383 franchised stores, with a total of 1,051 openings and 552 closures in the first three quarters, resulting in a net increase of 499 stores [2]. - The company has a strong pipeline with 1,672 stores signed but not yet opened or in the process of signing [2]. Market Trends and Upgrades - The company is focusing on upgrading its product offerings, with the launch of the upgraded Home Inn 4.0, which aims to attract younger consumers [3]. - The proportion of mid-to-high-end hotels has increased, with their revenue contribution rising to 60.5%, up 0.6 percentage points from the previous year [3]. Investment Outlook - The hotel industry continues to face pressure on RevPAR due to declining commercial real estate rents and weak business travel demand [3]. - The company is expected to improve its operational situation through mid-to-high-end upgrades and enhanced customer engagement, with projected net profits for 2025-2027 of 850 million, 950 million, and 1.04 billion yuan, respectively [3].