October 17, 2017

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

 


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