China Lodging Group, Limited Announces Its Preliminary Results for Hotel Operation in the First Quarter of 2018

16/04/2018

SHANGHAI, China, April 16, 2018 (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, 2018. 

Operating Metrics

  For the quarter ended
  March 31, December 31, March 31,
  2017  2017  2018 
Occupancy rate (as a percentage)    
Leased and owned hotels 85.0 % 87.2 % 85.6 %
Manachised hotels 84.6 % 86.6 % 84.0 %
Franchised hotels 65.6 % 72.1 % 69.8 %
Blended 83.9 % 86.0 % 83.7 %
Average daily room rate  (in RMB)    
Leased and owned hotels 204   251   243  
Manachised hotels 174   197   194  
Franchised hotels 180   232   228  
Blended 182   211   207  
RevPAR  (in RMB)    
Leased and owned hotels 174   219   208  
Manachised hotels 147   170   163  
Franchised hotels 118   167   159  
Blended 152   181   173  

 

Like-for-like performance for leased, manachised and franchised hotels opened for at least 18 months during the current quarter
 
  As of and for the quarter ended  
  March 31, yoy
  2017   2018   change
Total    2,813     2,813    
Leased and owned hotels   571     571    
Manachised and franchised hotels   2,242     2,242    
Occupancy rate (as a percentage) 85.9 % 86.2 % 0.3 %
Average daily room rate (in RMB) 181   192   6.1 %
RevPAR (in RMB) 155   165   6.5 %

 

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 2018 in Q1 2018 in Q1 2018 March 31, 2018   in Q1 2018 March 31, 2018
Leased and owned hotels   7   (5 )   2   673     490   85,508
Manachised and franchised hotels   120   (51 )   69   3,144     4,794   299,451
Total   127   (56 )   71   3,817     5,284   384,959
(1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q1 2018, two manachised HanTing hotels were temporarily closed for brand upgrade; one leased HanTing hotel was converted to manachised HanTing hotel.

 

  Number of hotels in pipeline
as of March 31, 2018
Leased hotels   38
Manachised and franchised hotels   706
Total(2)   744
(2) Including 132 hotels under brands of ibis, ibis Styles, Mercure, Grand Mercure and Novotel; 104 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 Q1 2018 March 31, 2018
Economy hotels (10 ) 2,864
HanTing Hotel 1   2,245
Leased hotels (14 ) 440
Manachised hotels 15   1,801
Franchised hotels -   4
Hi Inn (5 ) 391
Leased hotels -   30
Manachised hotels (6 ) 315
Franchised hotels 1   46
Elan Hotel (6 ) 220
Manachised hotels (5 ) 188
Franchised hotels (1 ) 32
Orange Hotel -   8
Leased hotels -   6
Manachised hotels -   1
Franchised hotels -   1
Midscale and upscale hotels   81     953
JI Hotel 33   423
Leased hotels -   91
Manachised hotels 34   330
Franchised hotels (1 ) 2
Starway Hotel (1 ) 173
Leased hotels -   2
Manachised hotels -   141
Franchised hotels (1 ) 30
Joya Hotel 1   7
Leased hotels 1   4
Manachised hotels (1 ) 2
Franchised hotels 1   1
Manxin Hotels & Resorts 4   15
Leased hotels 1   3
Manachised hotels 3   9
Franchised hotels -   3
HanTing Premium Hotel 23   28
Leased hotels 10   11
Manachised hotels 13   17
Ibis Hotel 5   105
Leased and owned hotels 1   17
Manachised hotels 6   44
Franchised hotels (2 ) 44
Ibis Styles Hotel 3   16
Manachised hotels 3   13
Franchised hotels -   3
Mercure Hotel (1 ) 19
Leased hotels -   2
Manachised hotels (3 ) 12
Franchised hotels 2   5
Novotel Hotel -   4
Manachised hotels -   3
Franchised hotels -   1
Grand Mercure 1   5
Leased hotels -   1
Manachised hotels 1   2
Franchised hotels -   2
Orange Select 11   114
Leased hotels 2   46
Manachised hotels 8   49
Franchised hotels 1   19
Crystal Orange 2   44
Leased hotels 1   20
Manachised hotels 1   16
Franchised hotels -   8
Total   71     3,817
     

  

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  
  March 31, March 31, yoy
change		 March 31, yoy
change		 March 31, yoy
change
  2017 2018 2017 2018 2017 2018 2017   2018  
Economy hotels 2,406 2,406 141 150 6.4 % 160 170 6.1 % 88.0 % 88.2 % 0.2 %
Leased and owned hotels 477 477 147 160 8.7 % 169 182 7.6 % 87.3 % 88.1 % 0.9 %
Manachised and franchised hotels 1,929 1,929 139 147 5.6 % 157 166 5.6 % 88.3 % 88.2 % 0.0 %
Midscale and upscale hotels 407 407 215 229 6.5 % 279 293 5.0 % 76.9 % 78.0 % 1.0 %
Leased hotels 94 94 264 281 6.3 % 320 335 4.9 % 82.6 % 83.7 % 1.1 %
Manachised and franchised hotels 313 313 193 205 6.4 % 259 272 5.0 % 74.4 % 75.4 % 1.0 %
Total 2,813 2,813 155 165 6.5 % 181 192 6.1 % 85.9 % 86.2 % 0.3 %

About China Lodging Group, Limited

China Lodging Group, Limited is a leading hotel operator and franchisor in China. As of March 31, 2018, the Company had 3,817 hotels or 384,959 rooms in operation. With a primary focus on economy and midscale hotel segments, China Lodging Group's brands include Hi Inn, HanTing Hotel, Elan Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel, Joya 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. As of March 31, 2018, China Lodging Group operates 22 percent of its hotel rooms under lease and ownership model, 78 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

 

Source: China Lodging Group, Limited

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