China Lodging Group (HTHT) reported better-than-expected third-quarter earnings late Tuesday, but revenue was a little light. The China-based hotel operator is a member of the elite IBD 50 list.

XAutoplay: On | Off Estimates: China Lodging’s earnings per share should rise 49% to 94 cents, according to Thomson Reuters. Revenue should climb 33% to $358.05 million.

Results: China Lodging earned $1.01 a share, up 63% vs. a year earlier. Revenue climbed nearly 33% to $356.7 million.

Outlook: The company sees fourth-quarter revenue up 29% to 32%, below Wall Street consensus for a 33% gain.

Stock: Shares rose 2.55% to 117.40 following the earnings release. China Lodging closed down 0.8% to 114.48 after rebounding to 119.29 intraday on the stock market today. Shares fell 4.4% on Monday, hitting a two-month low intraday, as many highflying Chinese stocks sold off. The stock peaked at 142.80 on Oct. 25.

China Lodging operates some hotels on the traditional own-and-operate model or franchise but it’s better known for managing hotels on behalf of a separate franchisee, a “manachised” model.

As of Sept. 30 China Lodging said it operated 3,656 hotels or 372,464 rooms in operation in 375 cities. It operates 23% of its hotel rooms under lease and ownership model, 77% under manachise and franchise models.

The company is benefiting from a rapidly expanding middle class in China that is eager to travel.

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