Jinjiang Hotels gears up for an IPO on the Hong Kong stock exchange: profits grew last year, but revenue did not; losses in overseas business widened

Question to AI · How will the expansion of losses from overseas operations affect the Hong Kong stock listing process?

Ten months after initiating the Hong Kong listing, Jinjiang Hotels (600754) has recently submitted a second listing application to the Hong Kong Stock Exchange, updating its 2025 financial data: In 2025, Jinjiang Hotels achieved consolidated operating revenue of 13.811 billion yuan (RMB, same below), down 1.79% year on year, marking the second consecutive year of decline. The financial report explains that this was mainly due to a weakening of overall market demand and the company’s strategic withdrawal from both domestic and overseas hotel property assets. Through measures such as internal integration and optimization of its capital structure, the company reduced operating costs and financial expenses year on year, driving attributable net profit to 0.925 billion yuan, up 1.58% year on year.

In 2025, Jinjiang Hotels added 1,314 newly opened hotels, including a net increase of 716 hotels. As of the end of the reporting period, the total number of hotels already in operation under Jinjiang Hotels was 14,132. Total membership exceeded 210 million in 2025.

From the perspective of accommodation industry indicators, from January to December 2025, the average daily rate (ADR) of Jinjiang Hotels’ full-service hotels was 464.66 yuan, down 5.27% year on year; the average occupancy rate was 50.15%, down by 1.41 percentage points year on year; and RevPAR (revenue per available room) was 233.03 yuan, down 7.86% year on year. For limited-service hotels, ADR was 235.38 yuan, down nearly 2.2% year on year; the average occupancy rate was 64.93%, down by 0.5 percentage points year on year; and RevPAR was 157.47 yuan, down 2.95% year on year.

Compared with peers, against the backdrop of weak hotel market demand, Jinjiang Hotels’ recovery pace is slower than that of Huazhu and BTG Hotels in the same period. However, it is worth noting that the RevPAR of Jinjiang Hotels’ limited-service hotels recovered to positive year-on-year growth in Q4 2025, reaching 0.14%, indicating signs of stabilization and rebound.

Brands under Jinjiang Hotels.

With competition in the hotel industry intensifying and operating performance indicators not yet showing growth, Jinjiang Hotels’ results face further pressure due to overseas business losses. The financial report discloses that in 2025, Jinjiang Hotels’ limited-service chain hotel business outside mainland China generated consolidated operating revenue of 482 million euros, down 13.41% year on year; it recorded an attributable net loss of 82.64 million euros, with losses widening by 25.75 million euros year on year. For the full year, RevPAR for limited-service hotels outside mainland China fell 4.53% year on year, a larger decline than in mainland China. During the period, Louvre Group recorded a net loss of 51.6792 million euros (about RMB 410 million).

Regarding overseas business operations, Jinjiang Hotels stated in its financial report that, at present, the group headquarters continues to provide funding support to help Louvre complete planned renovation and upgrade projects for aging hotels, further enhancing market competitiveness and brand image. Louvre will also continue to optimize its capital structure and improve the efficiency of capital use. On the operational side, by executing key measures within the five-year plan—focusing on asset disposal, renovation and refurbishment, improving system contribution rate, building brand websites, membership programs, new operating models, and IT system construction—the company will comprehensively improve and enhance Louvre’s operational performance.

In the past two years, the overall hotel industry has been under pressure because supply has exceeded demand. Against this backdrop and under performance pressure, many hotel groups have pursued light-asset development strategies. Jinjiang Hotels has transferred its hotel assets on multiple occasions. Earlier this year, Jinjiang Hotels announced the transfer of 100% equity interests in four hotel management companies it held, with a total transfer price of RMB 207 million. This represents another round of asset-lighting following the company’s earlier 2023 transfer of its wholly owned subsidiary, Fashion Travel Hotel Management Co., Ltd. The financial report shows that the transaction is expected to generate a pre-tax gain of approximately RMB 103 million. After the transfer, the four companies will no longer be included in the scope of the group’s consolidated financial statements.

A research report from Guoxin Securities analyzed that, as supply growth slows while business travel and leisure demand steadily recovers driven by policy support, improvements in the supply-demand relationship are expected to support RevPAR stabilizing with an upward trend, providing a favorable external environment for the company’s performance growth. The company is currently in a critical integration period; with the industry cycle improving, the release of incremental benefits from domestic direct-operated hotel renovation and upgrade, optimization of its operations middle office, and added effects from its front-end centralized reservation channels is expected. In addition, the company plans to issue H shares, intending to raise US$500 million primarily to upgrade and renovate overseas stores and to repay loans, which is expected to optimize its capital structure, reduce financial expenses, and provide positive incentives for the release of performance.

Regarding the company and future development, Jinjiang Hotels mentioned in its financial report that China’s hotel market concentration remains relatively low, leaving ample room for brand development, and the economy and mid-tier hotel markets still have significant growth potential. As the trend of consumption upgrade continues to deepen, the willingness of high-net-worth groups to pay for high-quality services will continue to increase, strongly supporting the steady growth in the number of mid-to-high-end and luxury hotel brands. The company will focus on developing “full-service hotels” and “limited-service hotels,” maintain and strengthen its advantageous brands, and deepen its domestic and global layout with cross-border operations.

Jinjiang Hotels expects to achieve operating revenue of RMB 139–141 billion in 2026, up 1%–2% from the previous year. After excluding the expected 2026 asset portfolio, and continuing to optimize operations and exit low-efficiency businesses, the company expects operating revenue in 2026 to grow 4%–6% year on year. The company’s plan for the full year is to add 1,200 newly opened hotels.

Written by: Nandu N Video reporter Fu Xiaoling