April 11, 2016

China Lodging Group, Limited (HTHT) Announces Its Preliminary Results for Hotel Operation in the First Quarter of 2016

SHANGHAI, China, April 11, 2016 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (NASDAQ:HTHT) ("China Lodging Group", "Hua Zhu"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, 2016.

Hotel Development

 Number of hotels in operation Number of rooms in operation
 Opened (1)Closed (3)Net addedAs of Net addedAs of
 in Q1 2016in Q1 2016in Q1 2016March 31, 2016 in Q1 2016March 31, 2016
Leased and owned hotels (2)  13   (2)  11  627   1,827  77,263
Manachised and franchised hotels  231   (16)  215  2,362   23,758  227,165
Total  244    (18)  226   2,989    25,585   304,428
(1) Including 96 hotels merged to Huazhu platform due to Accor-Huazhu strategic alliance in Q1 2016. 
(2) Including 7 owned hotels under ibis brand.
(3) Reasons for closures include contract expiration, operating loss and others.
 


 Number of hotels in pipeline as
of March 31, 2016
 
Leased hotels25 
Manachised and franchised hotels607 
Total (4)632 
(4) Including 19 hotels under brands of ibis, ibis Styles, Mercure and Novotel. 
  

Operating Metrics

 For the quarter ended
 March 31,December 31,March 31,
 201520152016
Occupancy rate (as a percentage)   
Leased and owned hotels 83% 86% 82%
Manachised hotels 81% 84% 81%
Franchised hotels 66% 67% 62%
Blended 82% 84% 80%
Average daily room rate (in RMB)   
Leased and owned hotels 182  201  193 
Manachised hotels 161  167  165 
Franchised hotels 174  172  169 
Blended 168  177  172 
RevPAR (in RMB)   
Leased and owned hotels 150  172  159 
Manachised hotels 131  141  133 
Franchised hotels 115  116  105 
Blended 137  149  139 
 


Like-for-like performance for hotels in operation for at least 18 months during the current quarter
 
 As of and for the quarter ended 
 March 31,yoy
 20152016change
Total   1,783    1,783  
Leased hotels   584    584  
Manachised and franchised hotels   1,199    1,199  
Occupancy rate (as a percentage) 84% 83% -0.9%
Average daily room rate (in RMB) 169  171  0.8%
RevPAR (in RMB) 142  142  -0.3%
 

Business Update by Segment

Hotel breakdown by segment
 
 Number of hotels in operation
 Net added As of 
 in Q1 2016March 31, 2016
Economy hotels   195    2,648
HanTing Hotel   56 2,059
Leased hotels   (2)493
Manachised hotels   58   1,566
Hi Inn   30   332
Leased hotels   -    38
Manachised hotels   13   264
Franchised hotels   17   30
Elan Hotel   21   169
Manachised hotels   14   142
Franchised hotels   7   27
ibis Hotel   82   82
Leased and owned hotels   12   12
Manachised hotels   9   9
Franchised hotels   61   61
ibis Styles Hotel   6   6
Manachised hotels   2   2
Franchised hotels   4   4
Midscale and upscale hotels   31    341
JI Hotel   16   202
Leased hotels   2   77
Manachised hotels   14   125
Starway Hotel   5   123
Leased hotels   (1)  3
Manachised hotels   4   71
Franchised hotels   2   49
Joya Hotel   1   4
Leased hotels   -    2
Manachised hotels   1   2
Manxin Hotels & Resorts   -    2
Leased hotels   -    1
Manachised hotels   -    1
Mercure Hotel   7   8
Leased hotels   -    1
Manachised hotels   6   6
Franchised hotels   1   1
Novotel Hotel   1   1
Manachised hotels   1   1
Grand Mercure Hotel   1   1
Franchised hotels   1   1
Total   226    2,989
 


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
 201520162015201620152016 2015  2016 
Economy hotels  1,637  1,637136133 -1.9%160160 -0.4% 85% 83% -1.3%
Leased hotels  518  518138135 -2.1%165165 0.0% 84% 82% -1.8%
Manachised and franchised hotels  1,119  1,119134132 -1.8%158157 -0.5% 85% 84% -1.1%
Midscale and upscale hotels  146  146203221 8.8%256269 5.0% 79% 82% 2.8%
Leased hotels  66  66225252 12.1%276293 6.3% 82% 86% 4.4%
Manachised and franchised hotels  80  80178184 3.4%232237 2.2% 77% 78% 0.9%
Total  1,783  1,783142142 -0.3%169171 0.8% 84% 83% -0.9%
 

About China Lodging Group, Limited

China Lodging Group, Limited is a leading hotel operator and franchisor in China under 12 brand names. As of December 31, 2015, the Company had 2,763 hotels or 278,843 rooms in operation in 352 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 December 31, 2015, China Lodging Group operates 27 percent of its hotel rooms under lease model, 73 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
Ida Yu
Sr. Manager of Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com


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