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

SHANGHAI, China, Jan. 16, 2018 (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, 2017.

Operating Metrics

For the quarter ended
December 31,September 30,December 31,
201620172017
Occupancy rate (as a percentage)
Leased and owned hotels86%93%87%
Manachised hotels85%94%87%
Franchised hotels68%79%72%
Blended85%93%86%
Average daily room rate (in RMB)
Leased and owned hotels211 257 251
Manachised hotels178 204 197
Franchised hotels180 236 232
Blended186 218 211
RevPAR (in RMB)
Leased and owned hotels181 238 219
Manachised hotels152 192 170
Franchised hotels123 186 167
Blended158 203 181


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
2016 2017 change
Total 2,729 2,729
Leased and owned hotels 573 573
Manachised and franchised hotels 2,156 2,156
Occupancy rate (as a percentage)87%88%1.3%
Average daily room rate (in RMB)187 196 4.9%
RevPAR (in RMB)162 172 6.5%

Hotel Development

Number of hotels in operation Number of rooms in operation
OpenedClosed (1)Net addedAs of Net addedAs of
in Q4 2017in Q4 2017in Q4 2017December 31, 2017 in Q4 2017December 31, 2017
Leased and owned hotels2 (15) (13)671 (1,550)85,018
Manachised and franchised hotels135 (32) 103 3,075 8,761 294,657
Total137 (47) 90 3,746 7,211 379,675


Number of hotels in pipeline
as of December 31, 2017
Leased hotels37
Manachised and franchised hotels659
Total(1)696
(1) Including 112 hotels under brands of ibis, ibis Styles, Mercure, Grand Mercure and Novotel; 94 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 Q4 2017December 31, 2017
Economy hotels 35 2,974
HanTing Hotel 12 2,244
Leased hotels (11) 454
Manachised hotels 23 1,786
Franchised hotels - 4
Hi Inn 2 396
Leased hotels (2) 30
Manachised hotels 5 321
Franchised hotels (1) 45
Elan Hotel 13 226
Manachised hotels 13 193
Franchised hotels - 33
ibis Hotel 9 100
Leased and owned hotels - 16
Manachised hotels 9 38
Franchised hotels - 46
Orange Hotel (1) 8
Leased hotels (1) 6
Manachised hotels - 1
Franchised hotels - 1
Midscale and upscale hotels 55 772
JI Hotel 26 390
Leased hotels - 91
Manachised hotels 26 296
Franchised hotels - 3
Starway Hotel 12 174
Leased hotels - 2
Manachised hotels 15 141
Franchised hotels (3) 31
Joya Hotel - 6
Leased hotels - 3
Manachised hotels - 3
Manxin Hotels & Resorts 3 11
Leased hotels - 2
Manachised hotels 3 6
Franchised hotels - 3
HanTing Premium Hotel 4 5
Leased hotels 1 1
Manachised hotels 3 4
ibis Styles Hotel 2 13
Manachised hotels 3 10
Franchised hotels (1) 3
Mercure Hotel 1 20
Leased hotels - 2
Manachised hotels 1 15
Franchised hotels - 3
Novotel Hotel - 4
Manachised hotels - 3
Franchised hotels - 1
Grand Mercure 1 4
Leased hotels - 1
Manachised hotels 1 1
Franchised hotels - 2
Orange Select 6 103
Leased hotels - 44
Manachised hotels 6 41
Franchised hotels - 18
Crystal Orange - 42
Leased hotels - 19
Manachised hotels - 15
Franchised hotels - 8
Total 90 3,746


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
change
December 31,yoy
change
December 31,yoy
change
2016201720162017201620172016 2017
Economy hotels 2,406 2,406 146 1566.9% 167 1755.1%87%89%1.5%
Leased and owned hotels 492 492 152 1669.2% 178 1896.3%85%88%2.4%
Manachised and franchised hotels 1,914 1,914 144 1526.1% 163 1714.6%88%89%1.2%
Midscale and upscale hotels 323 323 249 2614.8% 300 3134.4%83%83%0.3%
Leased hotels 81 81 314 3212.4% 348 3644.5%90%88%-1.9%
Manachised and franchised hotels 242 242 217 2316.5% 273 2864.7%79%81%1.4%
Total 2,729 2,729 162 1726.5% 187 1964.9%87%88%1.3%

About China Lodging Group, Limited
China Lodging Group, Limited is a leading hotel operator and franchisor in China. As of December 31, 2017, the Company had 3,746 hotels or 379,675 rooms in operation in 378 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, 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. As of December 31, 2017, China Lodging Group operates 22 percent of its hotel rooms under lease and ownership model, 78 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