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China Lodging Group, Limited Announces Its Preliminary Results for Hotel Operation in the First Quarter of 2017

SHANGHAI, China, April 17, 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 first quarter ended March 31, 2017.

Operating Metrics

For the quarter ended
March 31,December 31,March 31,
2016 2016 2017
Occupancy rate (as a percentage)
Leased and owned hotels82%86%85%
Manachised hotels81%85%85%
Franchised hotels62%68%66%
Blended80%85%84%
Average daily room rate (3) (in RMB)
Leased and owned hotels193 211 204
Manachised hotels165 178 174
Franchised hotels169 180 180
Blended172 186 182
RevPAR (3) (in RMB)
Leased and owned hotels159 181 174
Manachised hotels133 152 147
Franchised hotels105 123 118
Blended139 158 152
(3) 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
March 31,yoy
2016 2017 change
Total 2,380 2,380
Leased hotels 579 579
Manachised and franchised hotels 1,801 1,801
Occupancy rate (as a percentage)83%87%3.3%
Average daily room rate (in RMB)172 175 1.8%
RevPAR (in RMB)143 151 5.8%

Hotel Development

Number of hotels in operation Number of rooms in operation
Opened Closed (1) Net added As of Net added As of
in Q1 2017in Q1 2017in Q1 2017March 31, 2017 in Q1 2017March 31, 2017
Leased and owned hotels 5 (9) (4) 620 (148) 78,012
Manachised and franchised hotels 84 (13) 71 2,716 4,701 257,888
Total 89 (22) 67 3,336 4,553 335,900
(1) Reasons for closures include contract expiration, operating loss and others.


Number of hotels in pipeline
as of March 31, 2017
Leased hotels 16
Manachised and franchised hotels 457
Total(2) 473
(2) Including 65 hotels under brands of ibis, ibis Styles, Mercure and Novotel.


Business Update by Segment

Hotel breakdown by segment
Number of hotels in operation
Net added As of
in Q1 2017March 31, 2017
Economy hotels 39 2,852
HanTing Hotel 22 2,203
Leased hotels (8) 478
Manachised hotels 29 1,723
Franchised hotels 1 2
Hi Inn 12 387
Leased hotels 36
Manachised hotels 12 306
Franchised hotels 45
Elan Hotel 3 188
Manachised hotels 2 151
Franchised hotels 1 37
ibis Hotel 2 74
Leased hotels 14
Manachised hotels 12
Franchised hotels 2 48
Midscale and upscale hotels 28 484
JI Hotel 20 304
Leased hotels 3 84
Manachised hotels 16 217
Franchised hotels 1 3
Starway Hotel 5 141
Leased hotels 2
Manachised hotels 5 101
Franchised hotels 38
Joya Hotel 6
Leased hotels 3
Manachised hotels 3
Manxin Hotels & Resorts 1 3
Leased hotels
Manachised hotels 2
Franchised hotels 1 1
ibis Styles Hotel - 10
Manachised hotels -1 6
Franchised hotels 1 4
Mercure Hotel 1 16
Leased hotels 2
Manachised hotels 1 13
Franchised hotels 1
Novotel Hotel 2
Leased hotels
Manachised hotels 1
Franchised hotels 1
Grand Mercure 1 2
Leased hotels 1 1
Franchised hotels 1
Total 67 3,336


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
20162017201620172016201720162017
Economy hotels 2,144 2,144 133 1395.0% 159 1600.8%84%87%3.5%
Leased hotels 503 503 139 1475.7% 167 1690.9%83%87%3.9%
Manachised and franchised hotels 1,641 1,641 130 1374.7% 155 1560.8%84%87%3.3%
Midscale and upscale hotels 236 236 214 2339.2% 265 2846.9%81%82%1.7%
Leased hotels 76 76 257 2798.9% 298 3248.8%86%86%0.1%
Manachised and franchised hotels 160 160 182 2009.5% 239 2525.4%76%79%3.0%
Total 2,380 2,380 143 1515.8% 172 1751.8%83%87%3.3%

About China Lodging Group, Limited

China Lodging Group, Limited is a leading hotel operator and franchisor in China under 12 brand names. As of March 31, 2017, the Company had 3,336 hotels or 335,900 rooms in operation in 369 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 March 31, 2017, China Lodging Group operates 23 percent of its hotel rooms under lease model, 77 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 Investor Relations Tel: +86 (21) 6195 9561 Email: ir@huazhu.com http://ir.huazhu.com

Source:China Lodging Group, Limited