July 17, 2017

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: 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

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