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China Lodging Group, Limited (HTHT) Announces Its Preliminary Results for Hotel Operation in the First Quarter of 2016

SHANGHAI, China, April 11, 2016 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (NASDAQ:HTHT) (“China Lodging Group”, “Hua Zhu”or the “Company”), a leading and fast-growing multi-brand hotel group in China, today announced its preliminary results for the hotel operation in the first quarter ended March 31, 2016.

Hotel Development

Number of hotels in operation Number of rooms in operation
Opened (1)Closed (3)Net addedAs of Net addedAs of
in Q1 2016in Q1 2016in Q1 2016March 31, 2016 in Q1 2016March 31, 2016
Leased and owned hotels (2) 13 (2) 11 627 1,827 77,263
Manachised and franchised hotels 231 (16) 215 2,362 23,758 227,165
Total 244 (18) 226 2,989 25,585 304,428
(1) Including 96 hotels merged to Huazhu platform due to Accor-Huazhu strategic alliance in Q1 2016.
(2) Including 7 owned hotels under ibis brand.
(3) Reasons for closures include contract expiration, operating loss and others.


Number of hotels in pipeline as
of March 31, 2016
Leased hotels25
Manachised and franchised hotels607
Total (4)632
(4) Including 19 hotels under brands of ibis, ibis Styles, Mercure and Novotel.

Operating Metrics

For the quarter ended
March 31,December 31,March 31,
201520152016
Occupancy rate (as a percentage)
Leased and owned hotels 83% 86% 82%
Manachised hotels 81% 84% 81%
Franchised hotels 66% 67% 62%
Blended 82% 84% 80%
Average daily room rate (in RMB)
Leased and owned hotels 182 201 193
Manachised hotels 161 167 165
Franchised hotels 174 172 169
Blended 168 177 172
RevPAR (in RMB)
Leased and owned hotels 150 172 159
Manachised hotels 131 141 133
Franchised hotels 115 116 105
Blended 137 149 139


Like-for-like performance for hotels in operation for at least 18 months during the current quarter
As of and for the quarter ended
March 31,yoy
20152016change
Total 1,783 1,783
Leased hotels 584 584
Manachised and franchised hotels 1,199 1,199
Occupancy rate (as a percentage) 84% 83% -0.9%
Average daily room rate (in RMB) 169 171 0.8%
RevPAR (in RMB) 142 142 -0.3%

Business Update by Segment

Hotel breakdown by segment
Number of hotels in operation
Net added As of
in Q1 2016March 31, 2016
Economy hotels 195 2,648
HanTing Hotel 56 2,059
Leased hotels (2)493
Manachised hotels 58 1,566
Hi Inn 30 332
Leased hotels - 38
Manachised hotels 13 264
Franchised hotels 17 30
Elan Hotel 21 169
Manachised hotels 14 142
Franchised hotels 7 27
ibis Hotel 82 82
Leased and owned hotels 12 12
Manachised hotels 9 9
Franchised hotels 61 61
ibis Styles Hotel 6 6
Manachised hotels 2 2
Franchised hotels 4 4
Midscale and upscale hotels 31 341
JI Hotel 16 202
Leased hotels 2 77
Manachised hotels 14 125
Starway Hotel 5 123
Leased hotels (1) 3
Manachised hotels 4 71
Franchised hotels 2 49
Joya Hotel 1 4
Leased hotels - 2
Manachised hotels 1 2
Manxin Hotels & Resorts - 2
Leased hotels - 1
Manachised hotels - 1
Mercure Hotel 7 8
Leased hotels - 1
Manachised hotels 6 6
Franchised hotels 1 1
Novotel Hotel 1 1
Manachised hotels 1 1
Grand Mercure Hotel 1 1
Franchised hotels 1 1
Total 226 2,989


Same-hotel operational data by segment
Number of hotels in operationSame-hotel RevPAR Same-hotel ADR Same-hotel Occupancy
As ofFor the quarter ended For the quarter ended For the quarter ended
March 31,March 31,yoy
change
March 31,yoy
change
March 31,yoy
change
201520162015201620152016 2015 2016
Economy hotels 1,637 1,637136133 -1.9%160160 -0.4% 85% 83% -1.3%
Leased hotels 518 518138135 -2.1%165165 0.0% 84% 82% -1.8%
Manachised and franchised hotels 1,119 1,119134132 -1.8%158157 -0.5% 85% 84% -1.1%
Midscale and upscale hotels 146 146203221 8.8%256269 5.0% 79% 82% 2.8%
Leased hotels 66 66225252 12.1%276293 6.3% 82% 86% 4.4%
Manachised and franchised hotels 80 80178184 3.4%232237 2.2% 77% 78% 0.9%
Total 1,783 1,783142142 -0.3%169171 0.8% 84% 83% -0.9%

About China Lodging Group, Limited

China Lodging Group, Limited is a leading hotel operator and franchisor in China under 12 brand names. As of December 31, 2015, the Company had 2,763 hotels or 278,843 rooms in operation in 352 cities. With a primary focus on economy and midscale hotel segments, China Lodging Group’s brands include Hi Inn, HanTing Hotel, Elan Hotel, JI Hotel, Starway Hotel, Joya Hotel, and Manxin Hotels & Resorts. The Company also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in Pan-China region.

The Company’s business includes leased, manachised and franchised models. Under the lease model, the Company directly operates hotels typically located on leased properties. Under the manachise model, the Company manages manachised hotels through the on-site hotel managers it appoints and collects fees from franchisees. Under the franchise model, the Company provides training, reservation and support services to the franchised hotels and collects fees from franchisees but does not appoint on-site hotel managers. The Company applies a consistent standard and platform across all of its hotels. As of December 31, 2015, China Lodging Group operates 27 percent of its hotel rooms under lease model, 73 percent under manachise and franchise models.

For more information, please visit the Company’s website: http://ir.huazhu.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; the economic conditions of China; the regulatory environment in China; our ability to attract customers and leverage our brand; trends and competition in the lodging industry; the expected growth of the lodging market in China; and other factors and risks detailed in our filings with the Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project,” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results.

The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contact Information Ida Yu Sr. Manager of Investor Relations Tel: 86 (21) 6195 9561 Email: ir@huazhu.com http://ir.huazhu.com

Source:China Lodging Group, Limited