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

SHANGHAI, China, Oct. 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 third quarter ended September 30, 2017.

Operating Metrics

For the quarter ended
September 30,June 30,September 30,
2016 2017 2017
Occupancy rate (as a percentage)
Leased and owned hotels90%91%93%
Manachised hotels89%91%94%
Franchised hotels74%74%79%
Blended89%90%93%
Average daily room rate (in RMB)
Leased and owned hotels217232257
Manachised hotels186188204
Franchised hotels194203236
Blended194199218
RevPAR (in RMB)
Leased and owned hotels195211238
Manachised hotels166171192
Franchised hotels144151186
Blended173179203


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
September 30,yoy
20162017growth
Total 2,603 2,603
Leased hotels 579 579
Manachised and franchised hotels 2,024 2,024
Occupancy rate (as a percentage)91%96%4.4%
Average daily room rate (in RMB)1942024.5%
RevPAR (in RMB)1771939.5%


Hotel Development

Number of hotels in operation Number of rooms in operation
Opened ClosedNet added As of Net added As of
in Q3 2017in Q3 2017in Q3 2017September 30, 2017 in Q3 2017September 30, 2017
Leased and owned hotels7(9)(2)684 33686,568
Manachised and franchised hotels160(43)117 2,972 12,598285,896
Total 167 (52) 115 3,656 12,934 372,464


Number of hotels in pipeline
as of September 30, 2017
Leased hotels 38
Manachised and franchised hotels 568
Total(1) 606
(1) Including 98 hotels under brands of ibis, ibis Styles, Mercure,Novotel
and Grand Mercure; 73 hotels under brands of Orange Select and Crystal Orange.



Business Update by Segment

Hotel breakdown by segment
Number of hotels in operation
Net added As of
in Q3 2017September 30, 2017
Economy hotels 46 2,939
HanTing Hotel 19 2,232
Leased hotels (8) 465
Manachised hotels 27 1,763
Franchised hotels - 4
Hi Inn (1) 394
Leased hotels (3) 32
Manachised hotels 2 316
Franchised hotels - 46
Elan Hotel 18 213
Manachised hotels 18 180
Franchised hotels - 33
ibis Hotel 11 91
Leased and owned hotels 1 16
Manachised hotels 11 29
Franchised hotels (1) 46
Orange Hotel (1) 9
Leased hotels (1) 7
Manachised hotels - 1
Franchised hotels - 1
Midscale and upscale hotels 69 717
JI Hotel 37 364
Leased hotels 6 91
Manachised hotels 31 270
Franchised hotels - 3
Starway Hotel 14 162
Leased hotels - 2
Manachised hotels 14 126
Franchised hotels - 34
Joya Hotel - 6
Leased hotels - 3
Manachised hotels - 3
Manxin Hotels & Resorts 4 8
Leased hotels 1 2
Manachised hotels 1 3
Franchised hotels 2 3
HanTing Plus Hotel 1 1
Manachised hotels 1 1
ibis Styles Hotel 1 11
Manachised hotels 1 7
Franchised hotels - 4
Mercure Hotel 1 19
Leased hotels - 2
Manachised hotels (1) 14
Franchised hotels 2 3
Novotel Hotel 2 4
Manachised hotels 2 3
Franchised hotels - 1
Grand Mercure - 3
Leased hotels - 1
Franchised hotels - 2
Orange Select 7 97
Leased hotels 2 44
Manachised hotels 3 35
Franchised hotels 2 18
Crystal Orange 2 42
Leased hotels - 19
Manachised hotels 2 15
Franchised hotels - 8
Total 115 3,656


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
September 30,September 30,yoy growthSeptember 30,yoy growthSeptember 30,yoy growth
2016201720162017201620172016 2017
Economy hotels 2,316 2,316 162 1779.4% 176 1834.3%92%96%4.5%
Leased and owned hotels 498 498 169 1859.6% 186 1965.3%91%94%3.6%
Manachised and franchised hotels 1,818 1,818 159 1749.3% 172 1793.9%92%97%4.8%
Midscale and upscale hotels 287 287 265 2909.5% 303 3195.2%87%91%3.6%
Leased hotels 81 81 320 3447.5% 346 3655.4%92%94%1.8%
Manachised and franchised hotels 206 206 233 25911.0% 276 2915.3%84%89%4.6%
Total 2,603 2,603 177 1939.5% 194 2024.5%91%96%4.4%


About China Lodging Group, Limited
China Lodging Group, Limited is a leading hotel operator and franchisor in China. As of September 30, 2017, the Company had 3,656 hotels or 372,464 rooms in operation in 375 cities. With a primary focus on economy and midscale hotel segments, China Lodging Group's brands include Hi Inn, HanTing Hotel, Elan Hotel, HanTing Plus Hotel, JI Hotel, Starway Hotel, Joya Hotel, CitiGo Hotel, VUE Hotel, Crystal Orange Hotel, Orange Hotel Select, Orange Hotel and Manxin Hotel. 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 and owned, manachised and franchised models. Under the lease and ownership model, the Company directly operates hotels typically located on leased or owned 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. The Company applies a consistent standard and platform across all of its hotels. As of September 30, 2017, China Lodging Group operates 23 percent of its hotel rooms under lease and ownership 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