April 17, 2017

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

SHANGHAI, China, April 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 first quarter ended March 31, 2017.

Operating Metrics

 For the quarter ended
 March 31,December 31,March 31,
 2016 2016 2017 
Occupancy rate (as a percentage)  
  Leased and owned hotels82%86%85%
  Manachised hotels81%85%85%
  Franchised hotels62%68%66%
  Blended80%85%84%
Average daily room rate (3) (in RMB)  
  Leased and owned hotels193 211 204 
  Manachised hotels165 178 174 
  Franchised hotels169 180 180 
  Blended172 186 182 
RevPAR (3) (in RMB)   
  Leased and owned hotels159 181 174 
  Manachised hotels133 152 147 
  Franchised hotels105 123 118 
  Blended139 158 152 
(3) 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    
 March 31,yoy   
 2016 2017 change   
Total   2,380   2,380     
  Leased hotels  579   579     
  Manachised and franchised hotels  1,801   1,801     
Occupancy rate (as a percentage)83%87%3.3%   
Average daily room rate (in RMB)172 175 1.8%   
RevPAR (in RMB)143 151 5.8%   
       

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 2017in Q1 2017in Q1 2017March 31, 2017 in Q1 2017March 31, 2017
Leased and owned hotels  5  (9)  (4)  620   (148)  78,012
Manachised and franchised hotels  84  (13)  71   2,716   4,701   257,888
Total  89   (22)  67    3,336    4,553    335,900
(1) Reasons for closures include contract expiration, operating loss and others. 


 Number of hotels in pipeline
as of March 31, 2017
Leased hotels  16
Manachised and franchised hotels  457
Total(2)  473
(2) Including 65 hotels under brands of ibis, ibis Styles, Mercure and Novotel.


Business Update by Segment

Hotel breakdown by segment  
  
 Number of hotels in operation
 Net added As of 
 in Q1 2017March 31, 2017
Economy hotels  39    2,852
  HanTing Hotel  22   2,203
  Leased hotels  (8)  478
  Manachised hotels  29   1,723
  Franchised hotels  1   2
  Hi Inn  12   387
  Leased hotels   36
  Manachised hotels  12   306
  Franchised hotels   45
  Elan Hotel  3   188
  Manachised hotels  2   151
  Franchised hotels  1   37
  ibis Hotel  2   74
  Leased hotels   14
  Manachised hotels   12
  Franchised hotels  2   48
Midscale and upscale hotels  28    484
  JI Hotel  20   304
  Leased hotels  3   84
  Manachised hotels  16   217
  Franchised hotels  1   3
  Starway Hotel  5   141
  Leased hotels   2
  Manachised hotels  5   101
  Franchised hotels   38
  Joya Hotel   6
  Leased hotels   3
  Manachised hotels   3
  Manxin Hotels & Resorts  1   3
  Leased hotels  
  Manachised hotels   2
  Franchised hotels  1   1
  ibis Styles Hotel   -   10
  Manachised hotels   -1   6
  Franchised hotels   1   4
  Mercure Hotel  1   16
  Leased hotels   2
  Manachised hotels  1   13
  Franchised hotels   1
  Novotel Hotel   2
  Leased hotels  
  Manachised hotels   1
  Franchised hotels   1
  Grand Mercure   1   2
  Leased hotels  1   1
  Franchised hotels   1
Total  67    3,336


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
change
March 31,yoy
change
March 31,yoy
change
 
 20162017201620172016201720162017 
Economy hotels  2,144  2,144  133  1395.0%  159  1600.8%84%87%3.5% 
Leased hotels  503  503  139  1475.7%  167  1690.9%83%87%3.9% 
Manachised and franchised hotels  1,641  1,641  130  1374.7%  155  1560.8%84%87%3.3% 
Midscale and upscale hotels  236  236  214  2339.2%  265  2846.9%81%82%1.7% 
Leased hotels  76  76  257  2798.9%  298  3248.8%86%86%0.1% 
Manachised and franchised hotels  160  160  182  2009.5%  239  2525.4%76%79%3.0% 
Total  2,380  2,380  143  1515.8%  172  1751.8%83%87%3.3% 
             

About China Lodging Group, Limited

China Lodging Group, Limited is a leading hotel operator and franchisor in China under 12 brand names. As of March 31, 2017, the Company had 3,336 hotels or 335,900 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, 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 March 31, 2017, China Lodging Group operates 23 percent of its hotel rooms under lease 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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