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

By GlobeNewswire,  July 17, 2017, 07:00:00 AM EDT


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,
  2016 2017 2017
Occupancy rate (as a percentage)    
Leased and owned hotels 87% 85% 91%
Manachised hotels 85% 85% 91%
Franchised hotels 71% 66% 74%
Blended 85% 84% 90%
Average daily room rate (1) (in RMB)    
Leased and owned hotels 210 204 232
Manachised hotels 175 174 188
Franchised hotels 181 180 203
Blended 184 182 199
RevPAR (1) (in RMB)      
Leased and owned hotels 182 174 211
Manachised hotels 150 147 171
Franchised hotels 128 118 151
Blended 157 152 179
(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
  2016 2017 change
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) 183 189 3.0%
RevPAR (in RMB) 162 175 8.3%



Hotel Development

  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
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

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
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 Regular 10   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 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

change 

June 30, yoy

change
June 30, yoy

change
  2016 2017 2016 2017 2016 2017 2016 2017
Economy hotels   2,250   2,250   148   160 7.7 %   168   172 2.2 % 88 % 93 % 4.8 %
Leased hotels   498   498   156   170 8.5 %   180   184 2.7 % 87 % 92 % 4.9 %
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 %
Leased hotels   79   79   304   332 9.0 %   333   357 7.3 % 91 % 93 % 1.4 %
Manachised and franchised hotels    184   184   207   230 10.9 %   253   267 5.4 % 82 % 86 % 4.2 %
Total   2,513   2,513 162 175 8.3 % 183 189 3.0 % 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: 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.comhttp://ir.huazhu.com

Source: China Lodging Group, Limited

This article appears in: News Headlines

Referenced Stocks: HTHT


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