China Lodging Group, Limited Announces Its Preliminary Results for Hotel Operation in the First Quarter of 2018

SHANGHAI, China, April 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 first quarter ended March 31, 2018.

Operating Metrics

For the quarter ended
March 31,December 31,March 31,
2017 2017 2018
Occupancy rate (as a percentage)
Leased and owned hotels85.0%87.2%85.6%
Manachised hotels84.6%86.6%84.0%
Franchised hotels65.6%72.1%69.8%
Average daily room rate (in RMB)
Leased and owned hotels204 251 243
Manachised hotels174 197 194
Franchised hotels180 232 228
Blended182 211 207
RevPAR (in RMB)
Leased and owned hotels174 219 208
Manachised hotels147 170 163
Franchised hotels118 167 159
Blended152 181 173

Like-for-like performance for leased, manachised and franchised hotels opened for at least 18 months during the current quarter
As of and for the quarter ended
March 31,yoy
2017 2018 change
Total 2,813 2,813
Leased and owned hotels 571 571
Manachised and franchised hotels 2,242 2,242
Occupancy rate (as a percentage)85.9%86.2%0.3%
Average daily room rate (in RMB)181 192 6.1%
RevPAR (in RMB)155 165 6.5%

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 2018in Q1 2018in Q1 2018March 31, 2018 in Q1 2018March 31, 2018
Leased and owned hotels 7 (5) 2 673 490 85,508
Manachised and franchised hotels 120 (51) 69 3,144 4,794 299,451
Total 127 (56) 71 3,817 5,284 384,959
(1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q1 2018, two manachised HanTing hotels were temporarily closed for brand upgrade; one leased HanTing hotel was converted to manachised HanTing hotel.

Number of hotels in pipeline
as of March 31, 2018
Leased hotels 38
Manachised and franchised hotels 706
Total(2) 744
(2) Including 132 hotels under brands of ibis, ibis Styles, Mercure, Grand Mercure and Novotel; 104 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 Q1 2018March 31, 2018
Economy hotels(10)2,864
HanTing Hotel1 2,245
Leased hotels(14)440
Manachised hotels15 1,801
Franchised hotels- 4
Hi Inn(5)391
Leased hotels- 30
Manachised hotels(6)315
Franchised hotels1 46
Elan Hotel(6)220
Manachised hotels(5)188
Franchised hotels(1)32
Orange Hotel- 8
Leased hotels- 6
Manachised hotels- 1
Franchised hotels- 1
Midscale and upscale hotels 81 953
JI Hotel33 423
Leased hotels- 91
Manachised hotels34 330
Franchised hotels(1)2
Starway Hotel(1)173
Leased hotels- 2
Manachised hotels- 141
Franchised hotels(1)30
Joya Hotel1 7
Leased hotels1 4
Manachised hotels(1)2
Franchised hotels1 1
Manxin Hotels & Resorts4 15
Leased hotels1 3
Manachised hotels3 9
Franchised hotels- 3
HanTing Premium Hotel23 28
Leased hotels10 11
Manachised hotels13 17
Ibis Hotel5 105
Leased and owned hotels1 17
Manachised hotels6 44
Franchised hotels(2)44
Ibis Styles Hotel3 16
Manachised hotels3 13
Franchised hotels- 3
Mercure Hotel(1)19
Leased hotels- 2
Manachised hotels(3)12
Franchised hotels2 5
Novotel Hotel- 4
Manachised hotels- 3
Franchised hotels- 1
Grand Mercure1 5
Leased hotels- 1
Manachised hotels1 2
Franchised hotels- 2
Orange Select11 114
Leased hotels2 46
Manachised hotels8 49
Franchised hotels1 19
Crystal Orange2 44
Leased hotels1 20
Manachised hotels1 16
Franchised hotels- 8
Total 71 3,817

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
March 31,yoy
March 31,yoy
2017201820172018201720182017 2018
Economy hotels2,4062,4061411506.4%1601706.1%88.0%88.2%0.2%
Leased and owned hotels4774771471608.7%1691827.6%87.3%88.1%0.9%
Manachised and franchised hotels1,9291,9291391475.6%1571665.6%88.3%88.2%0.0%
Midscale and upscale hotels4074072152296.5%2792935.0%76.9%78.0%1.0%
Leased hotels94942642816.3%3203354.9%82.6%83.7%1.1%
Manachised and franchised hotels3133131932056.4%2592725.0%74.4%75.4%1.0%

About China Lodging Group, Limited

China Lodging Group, Limited is a leading hotel operator and franchisor in China. As of March 31, 2018, the Company had 3,817 hotels or 384,959 rooms in operation. With a primary focus on economy and midscale hotel segments, China Lodging Group's brands include Hi Inn, HanTing Hotel, Elan Hotel, HanTing Premium 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 March 31, 2018, 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:

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

Source:China Lodging Group, Limited