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

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.

Operating Metrics

For the quarter ended
June 30,March 31,June 30,
Occupancy rate (as a percentage)
Leased and owned hotels87%85%91%
Manachised hotels85%85%91%
Franchised hotels71%66%74%
Average daily room rate (1) (in RMB)
Leased and owned hotels210204232
Manachised hotels175174188
Franchised hotels181180203
RevPAR (1) (in RMB)
Leased and owned hotels182174211
Manachised hotels150147171
Franchised hotels128118151
(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
June 30,yoy
Total 2,513 2,513
Leased hotels 577 577
Manachised and franchised hotels 1,936 1,936
Occupancy rate (as a percentage)88%93%4.5%
Average daily room rate (in RMB)1831893.0%
RevPAR (in RMB)1621758.3%

Hotel Development

Number of hotels in operation Number of rooms in operation
Opened (2) Closed (3) Net addedAs of Net addedAs of
in Q2 2017in Q2 2017in Q2 2017June 30, 2017 in Q2 2017June 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
Total 272 (67) 205 3,541 23,630 359,530
(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
Leased hotels 30
Manachised and franchised hotels 582
Total(4) 612
(4) Including 90 hotels under brands of ibis, ibis Styles, Mercure, Grand
Mercure and
Novotel and 57 hotels under Crystal Orange, Orange
and Orange Regular brands.

Business Update by Segment

Hotel breakdown by segment
Number of hotels in operation
Net addedAs of
in Q2 2017June 30, 2017
Economy hotels 41 2,893
HanTing Hotel 10 2,213
Leased hotels (5) 473
Manachised hotels 13 1,736
Franchised hotels 2 4
Hi Inn 8 395
Leased hotels (1) 35
Manachised hotels 8 314
Franchised hotels 1 46
Elan Hotel 7 195
Manachised hotels 11 162
Franchised hotels -4 33
ibis Hotel 6 80
Leased hotels 1 15
Manachised hotels 6 18
Franchised hotels (1) 47
Orange Regular10 10
Leased hotels 8 8
Manachised hotels 1 1
Franchised hotels 1 1
Midscale and upscale hotels 164 648
JI Hotel 23 327
Leased hotels 1 85
Manachised hotels 22 239
Franchised hotels 3
Starway Hotel 7 148
Leased hotels 2
Manachised hotels 11 112
Franchised hotels -4 34
Joya Hotel 6
Leased hotels 3
Manachised hotels 3
Manxin Hotels & Resorts 1 4
Leased hotels 1 1
Manachised hotels 2
Franchised hotels 1
ibis Styles Hotel - 10
Manachised hotels 6
Franchised hotels 4
Mercure Hotel 2 18
Leased hotels 2
Manachised hotels 2 15
Franchised hotels 1
Novotel Hotel 1 2
Manachised hotels 1
Franchised hotels 1 1
Grand Mercure - 3
Leased hotels 1
Franchised hotels 2
Orange Selected 90 90
Leased hotels 42 42
Manachised hotels 32 32
Franchised hotels 16 16
Crystal Orange 40 40
Leased hotels 19 19
Manachised hotels 13 13
Franchised hotels 8 8
Total 205 3,541

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
June 30,June 30,yoy

June 30,yoy
June 30,yoy
Economy hotels 2,250 2,250 148 1607.7% 168 1722.2%88%93%4.8%
Leased hotels 498 498 156 1708.5% 180 1842.7%87%92%4.9%
Manachised and franchised hotels 1,752 1,752 146 1567.5% 164 1672.1%89%94%4.7%
Midscale and upscale hotels 263 263 247 2729.9% 288 3066.1%86%89%3.1%
Leased hotels 79 79 304 3329.0% 333 3577.3%91%93%1.4%
Manachised and franchised hotels 184 184 207 23010.9% 253 2675.4%82%86%4.2%
Total 2,513 2,5131621758.3%1831893.0%88%93%4.5%

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:

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