China Lodging Group, Limited Announces Its Preliminary Results for Hotel Operation in the Fourth Quarter of 2016

SHANGHAI, China, Jan. 16, 2017 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (NASDAQ:HTHT) (“China Lodging Group”, “Huazhu”, 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 fourth quarter ended December 31, 2016.

Operating Metrics

For the quarter ended
December 31,September 30,December 31,
Occupancy rate (as a percentage)
Leased and owned hotels86%90%86%
Manachised hotels84%89%85%
Franchised hotels67%74%68%
Average daily room rate (1) (in RMB)
Leased and owned hotels201 217 211
Manachised hotels167 186 178
Franchised hotels172 194 180
Blended177 194 186
RevPAR (1) (in RMB)
Leased and owned hotels172 195 181
Manachised hotels141 166 152
Franchised hotels116 144 123
Blended149 173 158
(1) Value-added tax ("VAT") has been implemented for hospitality industry to replace business tax in China, effective May 1, 2016. The Company's room rates quoted and received from customers are tax-inclusive (business tax or VAT) before and after the implementation of VAT. For comparison purposes, the ADR and RevPAR disclosed in this release are based on the tax-inclusive rates.

Like-for-like performance for leased and manachised hotels opened for at least 18 months during the current quarter
As of and for the quarter ended
December 31, yoy
Total 2,205 2,205
Leased hotels 583 583
Manachised and franchised hotels 1,622 1,622
Occupancy rate (as a percentage)86%87%0.7%
Average daily room rate (in RMB)177 180 1.6%
RevPAR (in RMB)153 157 2.5%

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
December 31,December 31,yoy
December 31,yoy
December 31,yoy
Economy hotels 1,999 1,999 143 1441.0% 165 1650.2%87%87%0.7%
Leased hotels 511 5111491510.9%1751750.3%86%86%0.5%
Manachised and franchised hotels 1,488 1,4881401411.1%1601610.2%87%88%0.8%
Midscale and upscale hotels 206 206 231 2518.9% 274 2957.6%84%85%1.0%
Leased hotels 72 722763019.3%3073369.4%90%90%-0.1%
Manachised and franchised hotels 134 1341952118.2%2452595.8%79%81%1.9%
Total 2,205 2,2051531572.5%1771801.6%86%87%0.7%

Hotel Development

Number of hotels in operation Number of rooms in operation
Opened Closed (2) Net added As of Net added As of
in Q4 2016in Q4 2016in Q4 2016December 31, 2016 in Q4 2016December 31, 2016
Leased and owned hotels10 (11) (1) 624 1,00278,160
Manachised and franchised hotels138 (66) 72 2,645 7,560253,187
Total 148 (77) 71 3,269 8,562 331,347
(2) The hotel closure in Q4 2016 was high because:
a) In order to increase the product qualities, Huazhu removed 47 hotels related to HanTing, Hi Inn, Elan and Starway from Huazhu’s network for incompliances with the brand and operating standards.
b) Other common reasons for hotel closure including contract expiration, rezoning and others.

Number of hotels in pipeline
as of December 31, 2016
Leased hotels 15
Manachised and franchised hotels 427
Total(3) 442
(3) Including 48 hotels under ibis, ibis Styles, Mercure, Grand Mercure and Novotel brands.

Business Update by Segment

Hotel breakdown by segment
Number of hotels in operation
Net added As of
in Q4 2016December 31, 2016
Economy hotels42 2,813
HanTing Hotel32 2,181
Leased hotels(6)486
Manachised hotels38 1,694
Franchised hotels 1
Hi Inn2 375
Leased hotels 36
Manachised hotels1 294
Franchised hotels1 45
Elan Hotel6 185
Manachised hotels3 149
Franchised hotels3 36
ibis Hotel2 72
Leased hotels1 14
Manachised hotels(2)12
Franchised hotels3 46
Midscale and upscale hotels29 456
JI Hotel28 284
Leased hotels3 81
Manachised hotels25 201
Franchised hotels 2
Starway Hotel(5)136
Leased hotels 2
Manachised hotels2 96
Franchised hotels(7)38
Joya Hotel1 6
Leased hotels1 3
Manachised hotels 3
Manxin Hotels & Resorts(1)2
Leased hotels
Manachised hotels(1)2
ibis Styles Hotel2 10
Manachised hotels 2 7
Franchised hotels 3
Mercure Hotel4 15
Leased hotels 2
Manachised hotels4 12
Franchised hotels 1
Novotel Hotel 2
Manachised hotels 1
Franchised hotels 1
Grand Mercure 1
Franchised hotels 1
Total71 3,269

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, 2016, the Company had 3,269 hotels or 331,347 rooms in operation in 365 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, 2016, China Lodging Group operates 24 percent of its hotel rooms under lease model, 76 percent under manachise and franchise models.

For more information, please visit the Company’s website:

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 Investor Relations Tel: +86 (21) 6195 9561 Email:

Source:China Lodging Group, Limited