SHANGHAI, China, July 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 second quarter ended June 30, 2017.
|For the quarter ended|
|June 30,||March 31,||June 30,|
|Occupancy rate (as a percentage)|
|Leased and owned hotels||87%||85%||91%|
|Average daily room rate (1) (in RMB)|
|Leased and owned hotels||210||204||232|
|RevPAR (1) (in RMB)|
|Leased and owned hotels||182||174||211|
|(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|
|Manachised and franchised hotels||1,936||1,936|
|Occupancy rate (as a percentage)||88%||93%||4.5%|
|Average daily room rate (in RMB)||183||189||3.0%|
|RevPAR (in RMB)||162||175||8.3%|
|Number of hotels in operation||Number of rooms in operation|
|Opened (2)||Closed (3)||Net added||As of||Net added||As of|
|in Q2 2017||in Q2 2017||in Q2 2017||June 30, 2017||in Q2 2017||June 30, 2017|
|Leased and owned hotels||72||(6)||66||686||8,220||86,232|
|Manachised and franchised hotels||200||(61)||139||2,855||15,410||273,298|
|(2) Including 140 hotels from Crystal Orange Acquisition.|
|(3) Reasons for closures include contract expiration, operating loss and others.|
|Number of hotels in pipeline |
as of June 30, 2017
|Manachised and franchised hotels||582|
|(4) Including 90 hotels under brands of ibis, ibis Styles, Mercure, Grand|
Mercure and Novotel and 57 hotels under Crystal Orange, Orange
Selected and Orange Regular brands.
Business Update by Segment
|Hotel breakdown by segment|
|Number of hotels in operation|
|Net added||As of|
|in Q2 2017||June 30, 2017|
|Midscale and upscale hotels||164||648|
|Manxin Hotels & Resorts||1||4|
|ibis Styles Hotel||-||10|
|Same-hotel operational data by segment|
|Number of hotels in operation||Same-hotel RevPAR||Same-hotel ADR||Same-hotel Occupancy|
|As of||For the quarter ended||For the quarter ended||For the quarter ended|
|June 30,||June 30,||yoy|
|Manachised and franchised hotels||1,752||1,752||146||156||7.5||%||164||167||2.1||%||89||%||94||%||4.7||%|
|Midscale and upscale hotels||263||263||247||272||9.9||%||288||306||6.1||%||86||%||89||%||3.1||%|
|Manachised and franchised hotels||184||184||207||230||10.9||%||253||267||5.4||%||82||%||86||%||4.2||%|
About China Lodging Group, Limited
China Lodging Group, Limited is a leading hotel operator and franchisor in China under 17 brand names. As of June 30, 2017, the Company had 3,541 hotels or 359,530 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, CitiGo Hotel, VUE Hotel, Crystal Orange Hotel, Orange Selected Hotel, Orange Regular 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 June 30, 2017, 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: 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.
Source:China Lodging Group, Limited