UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

China Lodging Group, Limited

(Exact name of registrant as specified in its charter)

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ		Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o		No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-               

 

 

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: July 30, 2010

EXHIBIT INDEX

Exhibit Number		Description
Exhibit 99.1		China Lodging Group, Limited Reports Second Quarter of 2010 Financial Results

Exhibit 99.1

Contact Information
Ida Yu
Investor Relations Manager
Tel: 86 (21) 5153 9463
Email: ir@htinns.com
http://ir.htinns.com

China Lodging Group, Limited Reports Second Quarter of 2010 Financial Results

Ÿ		Net Revenues for the second quarter increased 39.2% year-over-year to RMB438.9 million (US$64.7 million, note 1), exceeding guidance of RMB395 to RMB415 million
Ÿ		Net income attributable to China Lodging Group, Limited for the second quarter increased 185% year-over-year to RMB79.7 million (US$11.8 million)
Ÿ		Occupancy rate reached 98% and average daily rate (“ADR”) RMB196, resulting in revenue per available room (“RevPAR”) of RMB192, a 15% year-over-year increase
Ÿ		324 hotels were in operation and 159 hotels under development as of June 30, 2010
Ÿ		The Company raised guidance for full year net revenues growth to 35% to 37%, up from previously announced range of 33% to 35%

Shanghai, China, July 29, 2010 (GLOBE NEWSWIRE) — China Lodging Group, Limited (NASDAQ: HTHT) (“HanTing Inns and Hotels” or the “Company”), a leading economy hotel chain operator in China, today announced its unaudited financial results for the quarter ended June 30, 2010.

Second Quarter of 2010 Operational Highlights

Ÿ During the second quarter of 2010, the Company opened 42 new hotels, including nine leased-and-operated hotels and 33 franchised-and-managed hotels. As of June 30, 2010, the Company had 324 hotels in operation, consisting of 187 leased-and-operated hotels and 137 franchised-and-managed hotels. Our hotels in operation covered 51 cities in China as of June 30, 2010, compared with 47 cities at the end of the previous quarter.

Ÿ As of June 30, 2010, the Company had a total pipeline of 159 hotels under development, including 56 leased-and-operated hotels and 103 franchised-and-managed hotels.

Ÿ Shanghai World Expo (the “Expo”), lasting from May 1 to October 31, 2010, attracted a significant number of visitors to Shanghai. As of June 30, 2010, 24% of the Company’s hotel rooms were in Shanghai. Our RevPAR in Shanghai boosted during the Expo.

Ÿ The ADR, or average daily rate, was RMB196 in the second quarter of 2010, compared with RMB174 in the second quarter of 2009 and RMB173 in the previous quarter. The 12.6% year-over-year increase was mainly attributable to the improving economic conditions, our

strengthening brand name, and the Expo. The sequential increase was mainly due to seasonality and the Expo.

Ÿ The occupancy rate for all hotels in operation was 98% in the second quarter of 2010, compared with 96% in the second quarter of 2009, and 93% in the previous quarter. The Expo greatly contributed to the year-over-year increase. The sequential increase was mainly due to seasonality and the Expo.

Ÿ RevPAR, defined as revenue per available room, was RMB192 in the second quarter of 2010, compared with RMB167 in the second quarter of 2009 and RMB161 in the previous quarter. The 15.0% year-over-year increase was attributable to the higher occupancy rate and higher ADR, driven by improving economic conditions, our brand and the Expo. The sequential increase was mainly due to seasonality and the Expo.

Ÿ RevPAR for the hotels which had been in operation for at least 18 months was RMB205 for the second quarter of 2010, an 18.5% increase from RMB173 for the second quarter of 2009 for the same group of hotels. The improvement was caused by both higher occupancy rate and higher ADR, as the economy improved, our brand strengthened and the Expo brought additional business opportunities.

“We are delighted to see another profitable quarter with remarkable operating performance,” said Mr. Matthew Zhang, Chief Executive Officer of HanTing Inns and Hotels. “In the second quarter 2010, we successfully penetrated into four new cities. Our HanTing Club had more than two million individual members as of June 30, 2010.”

Second Quarter of 2010 Financial Results

Total revenues for the quarter increased 39.0% year-over-year to RMB464.0 million (US$68.4 million) primarily as a result of our expanded base of hotels and higher RevPAR. Compared to the first quarter of 2010, our total revenues increased 28.6%.

Total revenues from leased-and-operated hotels for the second quarter of 2010 were RMB432.9 million (US$63.8 million), representing a 34.6% increase year-over-year as both the number of leased-and-operated hotels and the revenue per leased-and-operated hotel increased. As of June 30, 2010, we had 187 leased-and-operated hotels in operation, compared with 160 a year ago.

Total revenues from franchised-and-managed hotels for the second quarter of 2010 were RMB31.1 million (US$4.6 million), representing a 153.6% increase year-over-year due to the increased number of franchised-and-managed hotels and higher RevPAR. As of June 30, 2010, we had 137 franchised-and-managed hotels in operation, compared with 40 a year ago.

Net revenues for the second quarter of 2010 were RMB438.9 million (US$64.7 million), representing an increase of 39.2% year-over-year and an increase of 28.7% sequentially.

Total operating costs and expenses for the second quarter of 2010 were RMB334.3 million (US$49.3 million), compared to RMB277.3 million (US$40.6 million) in the second quarter of 2009 and RMB323.7 million (US$47.4 million) in the previous quarter. Total operating costs and expenses excluding share-based compensation expenses (non-GAAP) for the quarter were RMB331.3 million (US$48.9 million), representing a 20.0% increase year-over-year mainly due to our enlarged network. Major components of operating costs and expenses are described and discussed in more details below.

Hotel operating costs for the second quarter of 2010 were RMB273.6 million (US$40.4 million), compared to RMB239.1 million (US$35.0 million) in the second quarter of 2009 and RMB272.2million (US$39.9 million) in the previous quarter. Total hotel operating costs excluding share-based compensation expenses (non-GAAP) were RMB273.3 million (US$40.3 million), representing 62.3% of net revenues, compared to 75.9% for the same quarter in 2009 and 79.7% in the previous quarter. The year-over-year decrease in hotel operating costs as a percentage of net revenues was primarily due to higher revenue per hotel and increased proportion of franchised revenues. Sequentially the hotel operating costs as a percentage of net revenues decreased as the second quarter had higher revenue and lower utility cost.

Selling and marketing expenses for the second quarter of 2010 were RMB16.5 million (US$2.4 million), compared to RMB16.3 million (US$2.4 million) in the second quarter of 2009 and RMB14.5 million (US$2.1 million) in the previous quarter. Selling and marketing expenses excluding share-based compensation expenses (non-GAAP) were RMB16.3 million (US$2.4 million), representing 3.7% of net revenues, compared to 5.2% for the same quarter in 2009 and 4.2% in the previous quarter.

General and administrative expenses for the second quarter of 2010 were RMB25.6 million (US$3.8 million), compared to RMB14.2 million (US$2.1 million) in the second quarter of 2009 and RMB25.8 million (US$3.8 million) in the previous quarter. General and administrative expenses excluding share-based compensation expenses (non-GAAP) were RMB23.2 million (US$3.4 million), or 5.3% of the net revenues, compared with 4.1% of the net revenues in the same period of 2009 and 6.7% in the previous quarter. The year-over-year increase in general and administrative expenses was mainly driven by increased personnel cost as a result of network expansion, and professional service fees associated with our becoming a public company.

Pre-opening expenses for the second quarter of 2010 were RMB18.6 million (US$2.7million), representing an increase of 140.5% year-over-year and an increase of 65.5% sequentially. The increase in pre-opening expenses was mainly due to the increased number of leased-and-operated hotels under construction.

Income from operations for the quarter was RMB104.5 million (US$15.4 million), compared to income from operations of RMB38.0 million (US$5.6 million) in the second quarter of 2009 and income from operations of RMB17.2 million (US$2.5 million) in the previous quarter. Excluding share-based compensation expenses, adjusted income from operations (non-GAAP) for the quarter was RMB107.5 million (US$15.9 million), representing a 174.1% increase from the same

quarter of 2009.

Net income attributable to China Lodging Group, Limited for the quarter was RMB79.7 million (US$11.8 million), compared to net income attributable to China Lodging Group, Limited of RMB27.9 million (US$4.1 million) in the second quarter of 2009, and net income attributable to China Lodging Group, Limited of RMB12.4 million (US$1.8 million) in the previous quarter. Excluding share-based compensation expenses, adjusted net income attributable to the China Lodging Group, Limited (non-GAAP) for the quarter was RMB82.7 million (US$12.2 million), representing a 183.1% increase from the second quarter of 2009. The year-over-year improvement on profit was mainly attributable to the improved RevPAR and the increased number of hotels in our network. The sequential increase in profit was mainly due to seasonality and the favorable impact of the Expo.

Basic and diluted net earnings per share/ADS. For the second quarter of 2010, basic net earnings per share was RMB0.33(US$0.05), while diluted net earnings per share was RMB0.32 (US$0.05); basic net earnings per ADS was RMB1.32 (US$0.20), while diluted net earnings per ADS was RMB1.29 (US$0.19). Excluding share-based compensation expenses, adjusted basic net earnings per share (non-GAAP) and adjusted diluted net earnings per share (non-GAAP) were RMB0.34 (US$0.05), and adjusted basic net earnings per ADS (non-GAAP) was RMB1.37 (US$0.20), while adjusted diluted net earnings per ADS (non-GAAP) was RMB1.34 (US$0.20).

EBITDA (non-GAAP) for the second quarter of 2010 was RMB144.5 million (US$21.3 million), compared to RMB71.3 million (US$10.4 million) in the second quarter of 2009 and RMB54.9 million (US$8.0 million) in the previous quarter. EBITDA from operating hotels (non-GAAP) was RMB163.0 million (US$24.0 million), an increase of 106.4% from the same period of 2009 and an increase of 146.7% sequentially. The year-over-year increase in EBITDA and EBITDA from operating hotels was primarily due to the substantial expansion of hotels and improved RevPAR during the period. The sequential increase in EBITDA and EBITDA from operating hotels was mainly due to seasonality and the favorable impact of the Expo.

Cash flow. Net operating cash flow for the second quarter of 2010 was RMB143.4 million (US$21.1 million). Cash spent on the purchase of property and equipment, which is part of investing cash flow, was RMB64.6 million (US$9.5 million).

Cash and cash equivalents. As of June 30, 2010, the Company had cash and cash equivalents of RMB1,285.4 million (US$189.5 million). The Company completed its initial public offering and a private placement to Ctrip.com International, Ltd. on March 26. The net proceeds of approximately US$140 million were received in April 2010.

Business Outlook and Guidance

“We are pleased with the results for the first half of 2010, as we added 88 hotels and generated RMB92 million of net profit and RMB199 million of EBITDA,” commented CEO Mr. Zhang. “For the full year 2010, we expect to open around 60 leased-and-operated hotels and 125 to 135

franchised-and-managed hotels.”

The Company expects to achieve net revenues in the range of RMB460 to 480 million in the third quarter of 2010. In light of the stronger-than-expected demand driven by the Expo, we adjust our full year net revenues forecast to grow 35% to 37% from 2009.

The above forecast reflects the Company’s current and preliminary view, which is subject to change.

Conference Call

HanTing Inns and Hotels’ management will host a conference call at 9 p.m. EDT, Thursday, July 29, 2010 (or 9 a.m. on Friday, July 30, 2010 in the Shanghai/Hong Kong time zone) following the announcement. To participate in the event by telephone, please dial +1 (888) 830 9551 (for callers in the US), +86 10 800 152 1039 (for callers in China Mainland), +852 3002 1675 (for callers in Hong Kong) or +1 (408) 961 6560 (for callers outside of the US, China Mainland, and Hong Kong) and entering pass code HTHT. Please dial in approximately 10 minutes before the scheduled time of the call.

A recording of the conference call will be available after the conclusion of the conference call through August 6, 2010. Please dial +1 877 482 6144 (for callers in the US) or +1 617 213 4164 (for callers outside the US) and entering pass code 765 274 98.

The conference call will also be webcast live over the Internet and can be accessed by all interested parties at the Company’s Web site, http://ir.htinns.com .

Use of Non-GAAP Financial Measures

To supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. GAAP, the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the SEC: hotel operating costs excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, selling expenses excluding share-based compensation expenses, adjusted income from operations excluding share-based compensation expenses, adjusted net income attributable to China Lodging Group, Limited excluding share-based compensation expenses, adjusted basic and diluted net earnings per share and per ADS excluding share-based compensation expenses, EBITDA and EBITDA from operating hotels. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this release. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding share-based expenses that may not be indicative of its operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate

management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP financial measures excluding share-based compensation expenses is that share-based compensation expenses have been and will continue to be a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

The Company believes that EBITDA is a useful financial metric to assess the operating and financial performance before the impact of investing and financing transactions and income taxes. Given the significant investments that the Company has made in leasehold improvements, depreciation and amortization expense comprises a significant portion of the cost structure. In addition, the Company believes that EBITDA is widely used by other companies in the lodging industry and may be used by investors as a measure of financial performance. The Company believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization expense attributable to capital expenditures. The Company also uses EBITDA from operating hotels, which is defined as EBITDA before pre-opening expenses, to assess operating results of the hotels in operation. The Company believe that the exclusion of pre-opening expenses, a portion of which is non-cash rental expenses, helps facilitate year-on-year comparison of the results of operations as the number of hotels in the development stage may vary significantly from year to year. Therefore, the Company believes EBITDA from operating hotels more closely reflects the performance capability of hotels currently in operation. The calculation of EBITDA and EBITDA from operating hotels does not deduct interest income. The presentation of EBITDA and EBITDA from operating hotels should not be construed as an indication that our future results will be unaffected by other charges and gains considered to be outside the ordinary course of the business.

The use of EBITDA and EBITDA from operating hotels has certain limitations. Depreciation and amortization expense for various long-term assets, income tax and interest expense have been and will be incurred and are not reflected in the presentation of EBITDA. Pre-opening expenses have been and will be incurred and are not reflected in the presentation of EBITDA from operating hotels. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of the depreciation and amortization, interest expense, income tax expense, pre-opening expenses and other relevant items both in the reconciliations to the U.S. GAAP financial measures and in the consolidated financial statements, all of which should be considered when evaluating the performance.

The terms EBITDA and EBITDA from operating hotels are not defined under U.S. GAAP, and neither EBITDA nor EBITDA from operating hotels is a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing

the operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, the Company’s EBITDA or EBITDA from operating hotels may not be comparable to EBITDA or EBITDA from operating hotels or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA or EBITDA from operating hotels in the same manner as the Company does.

Reconciliations of the Company’s non-GAAP financial measures, including EBITDA and EBITDA from operating hotels, to consolidated statement of operations information are included at the end of this press release.

About China Lodging Group, Limited

China Lodging Group, Limited (“HanTing Inns and Hotels” or the “Company”) is a leading economy hotel chain operator in China. The Company provides business and leisure travelers with high-quality, and conveniently-located hotel products under three brands, namely, HanTing Seasons Hotel, HanTing Express Hotel, and HanTing Hi Inn. As of June 30, 2010, the Company had 324 hotels and 37,782 rooms in 51 cities across China.

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, including statements regarding the Company’s capital needs, business strategy and expectations. 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. Any or all of the Company’s forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions, risks and uncertainties and other factors which could cause actual events or results to be materially different from those expressed or implied in the forward-looking statements. In evaluating these statements, readers should consider various factors, including the risks described in “Risk Factors” beginning on page 13 and elsewhere in the Company’s registration statement on Form F-1. These factors may cause the Company’s actual results to differ materially from any forward-looking statement. In addition, new factors emerge from time to time and it is not possible for the Company to predict all factors that may cause actual results to differ materially from those contained in any forward-looking statements. Any projections in this release are based on limited information currently available to the Company, which is subject to change. The Company disclaims any obligation to publicly update any forward-looking statements to reflect events or circumstances after the date of this document, except as required by applicable law.

—Financial Tables and Operational Data Follow—

		December 31, 2009				June 30, 2010
		RMB				RMB				US$ ( Note 1)
		(in thousands)
Assets
Current assets:
Cash and cash equivalents			270,587				1,285,430				189,549
Restricted cash			500				13,270				1,957
Accounts receivable, net			15,158				24,174				3,565
Amount due from related parties			4,632				4,086				603
Prepaid rent			69,618				92,032				13,571
Inventories			8,883				7,864				1,160
Other current assets			28,976				24,193				3,566
Deferred tax assets			18,272				18,272				2,694
Total current assets			416,626				1,469,321				216,665
Property and equipment, net			1,028,267				1,089,906				160,718
Intangible assets, net			20,395				34,138				5,034
Goodwill			18,452				18,452				2,721
Other assets			61,170				71,352				10,522
Deferred tax assets			36,222				37,442				5,521
Total assets			1,581,132				2,720,611				401,181
Liabilities, mezzanine equity and equity
Current liabilities:
Long-term debt, current portion			57,000				12,140				1,790
Accounts payable			141,571				156,329				23,052
Amount due to related parties			928				1,796				265
Salary and welfare payable			29,597				34,241				5,049
Deferred revenue			43,203				54,751				8,074
Accrued expenses and other current liabilities			89,383				91,221				13,451
Income tax payable			3,869				24,880				3,669
Total current liabilities			365,551				375,358				55,350
Long-term debt			80,000				56,860				8,385
Deferred rent			174,775				197,662				29,147
Deferred revenue			31,558				40,075				5,909
Other long-term liabilities			20,453				36,003				5,309
Deferred tax liabilities			6,538				6,538				964
Total liabilities			678,875				712,496				105,064
Mezzanine equity
Series B convertible redeemable preferred shares			796,803				—				—
Equity
Ordinary shares			46				178				26
Series A convertible preferred shares			34				—				—
Additional paid-in capital			351,994				2,168,395				319,752
Accumulated deficit			(245,457	)			(153,307	)			(22,607	)
Accumulated other comprehensive loss			(12,528	)			(14,240	)			(2,100	)
Total China Lodging Group, Limited shareholders’ equity			94,089				2,001,026				295,071
Noncontrolling interest			11,365				7,089				1,046
Total equity			105,454				2,008,115				296,117
Total liabilities, mezzanine equity and equity			1,581,132				2,720,611				401,181

		Quarter Ended
		June 30, 2009				March 31, 2010				June 30, 2010
		RMB				RMB				RMB				US$ (Note 1)
		(in thousands, except per share and per ADS data)
Revenues:
Leased-and-operated hotels			321,528				339,161				432,880				63,833
Franchised-and-managed hotels			12,282				21,569				31,142				4,592
Total revenues			333,810				360,730				464,022				68,425
Less: business tax and related surcharges			(18,514	)			(19,785	)			(25,159	)			(3,710	)
Net revenues			315,296				340,945				438,863				64,715
Operating costs and expenses:
Hotel operating costs			(239,090	)			(272,202	)			(273,633	)			(40,350	)
Selling and marketing expenses			(16,305	)			(14,511	)			(16,507	)			(2,434	)
General and administrative expenses			(14,225	)			(25,808	)			(25,621	)			(3,778	)
Pre-opening expenses			(7,718	)			(11,216	)			(18,564	)			(2,738	)
Total operating costs and expenses			(277,338	)			(323,737	)			(334,325	)			(49,300	)
Income from operations			37,958				17,208				104,538				15,415
Interest income			206				663				1,526				225
Interest expenses			(2,422	)			(1,545	)			(739	)			(109	)
Other income			—				—				406				60
Foreign exchange gain/(loss)			8				(29	)			(303	)			(45	)
Income before income tax			35,750				16,297				105,428				15,546
Income tax expense			(6,078	)			(2,626	)			(23,403	)			(3,451	)
Net income			29,672				13,671				82,025				12,095
Net income attributable to noncontrolling interests			(1,725	)			(1,223	)			(2,323	)			(342	)
Net income attributable to China Lodging Group, Limited			27,947				12,448				79,702				11,753
Net earnings per share
— Basic			0.16				0.07				0.33				0.05
— Diluted			0.15				0.06				0.32				0.05
Net earnings per ADS
— Basic			0.63				0.26				1.32				0.20
— Diluted			0.62				0.25				1.29				0.19
Weighted average ordinary shares outstanding
— Basic			55,539				68,582				241,018				241,018
— Diluted			181,332				196,751				246,305				246,305

		Quarter Ended June 30, 2010
		GAAP Result				% of Net Revenues				Share-based Compensation				% of Net Revenues				Non-GAAP Result				% of Net Revenues
		RMB								RMB								RMB
		(unaudited)								(unaudited)								(unaudited)
		(in thousands)
Hotel operating costs			273,633				62.4	%			337				0.1	%			273,296				62.3	%
Selling and marketing expenses			16,507				3.8	%			210				0.0	%			16,297				3.7	%
General and administrative expenses			25,621				5.8	%			2,437				0.6	%			23,184				5.3	%
Pre-opening expenses			18,564				4.2	%			—				0.0	%			18,564				4.2	%
Total operating costs and expenses			334,325				76.2	%			2,984				0.7	%			331,341				75.5	%
Income from operations			104,538				23.8	%			2,984				0.7	%			107,522				24.5	%

		Quarter Ended June 30, 2010
		GAAP Result				% of Net Revenues				Share-based Compensation				% of Net Revenues				Non-GAAP Result				% of Net Revenues
		US$ (Note 1)								US$								US$
		(unaudited)								(unaudited)								(unaudited)
		(in thousands)
Hotel operating costs			40,350				62.4	%			50				0.1	%			40,300				62.3	%
Selling and marketing expenses			2,434				3.8	%			31				0.0	%			2,403				3.7	%
General and administrative expenses			3,778				5.8	%			359				0.6	%			3,419				5.3	%
Pre-opening expenses			2,738				4.2	%			—				0.0	%			2,738				4.2	%
Total operating costs and expenses			49,300				76.2	%			440				0.7	%			48,860				75.5	%
Income from operations			15,415				23.8	%			440				0.7	%			15,855				24.5	%

		Quarter Ended Mar 31, 2010
		GAAP Result				% of Net Revenues				Share-based Compensation				% of Net Revenues				Non-GAAP Result				% of Net Revenues
		RMB								RMB								RMB
		(unaudited)								(unaudited)								(unaudited)
		(in thousands)
Hotel operating costs			272,202				79.8	%			341				0.1	%			271,861				79.7	%
Selling and marketing expenses			14,511				4.3	%			218				0.1	%			14,293				4.2	%
General and administrative expenses			25,808				7.6	%			2,846				0.8	%			22,962				6.7	%
Pre-opening expenses			11,216				3.3	%			—				0.0	%			11,216				3.3	%
Total operating costs and expenses			323,737				95.0	%			3,405				1.0	%			320,332				94.0	%
Income from operations			17,208				5.0	%			3,405				1.0	%			20,613				6.0	%

		Quarter Ended June 30, 2009
		GAAP Result				% of Net Revenues				Share-based Compensation				% of Net Revenues				Non-GAAP Result				% of Net Revenues
		RMB								RMB								RMB
		(unaudited)								(unaudited)								(unaudited)
		(in thousands)
Hotel operating costs			239,090				75.9	%			43				0.0	%			239,047				75.9	%
Selling and marketing expenses			16,305				5.2	%			51				0.0	%			16,254				5.2	%
General and administrative expenses			14,225				4.5	%			1,170				0.4	%			13,055				4.1	%
Pre-opening expenses			7,718				2.4	%			—				0.0	%			7,718				2.4	%
Total operating costs and expenses			277,338				88.0	%			1,264				0.4	%			276,074				87.6	%
Income from operations			37,958				12.0	%			1,264				0.4	%			39,222				12.4	%

		Quarter Ended
		June 30, 2009				March 31, 2010				June 30, 2010
		RMB				RMB				RMB				US$ (Note 1)
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
		(in thousands, except per share and per ADS data)
Net income attributable to China Lodging Group, Limited (GAAP)			27,947				12,448				79,702				11,753
Share-based compensation expenses			1,264				3,405				2,984				440
Adjusted net income attributable to China Lodging Group, Limited (non-GAAP)			29,211				15,853				82,686				12,193
Net earnings per share (GAAP)
— Basic			0.16				0.07				0.33				0.05
— Diluted			0.15				0.06				0.32				0.05
Net earnings per ADS (GAAP)			0.63				0.26				1.32				0.20
— Basic			0.62				0.25				1.29				0.19
— Diluted
Adjusted net earnings per share (non-GAAP)
— Basic			0.16				0.08				0.34				0.05
— Diluted			0.16				0.08				0.34				0.05
Adjusted net earnings per ADS (non-GAAP)
— Basic			0.66				0.33				1.37				0.20
— Diluted			0.64				0.32				1.34				0.20
Weighted average ordinary shares outstanding
— Basic			55,539				68,582				241,018				241,018
— Diluted			181,332				196,751				246,305				246,305

		Quarter Ended
		June 30, 2009				March 31, 2010				June 30, 2010
		RMB				RMB				RMB				US$ ( Note 1)
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
		(in thousands)
Net income attributable to China Lodging Group, Limited (GAAP)			27,947				12,448				79,702				11,753
Interest expenses			2,422				1,545				739				109
Income tax expense			6,078				2,626				23,403				3,451
Depreciation and amortization			34,837				38,246				40,624				5,990
EBITDA (non-GAAP)			71,284				54,865				144,468				21,303
Pre-opening expenses			7,718				11,216				18,564				2,738
EBITDA from operating hotels (non-GAAP)			79,002				66,081				163,032				24,041

Operational Data

		As of
		June 30, 2009				March 31, 2009				June 30, 2010
Total hotels in operation:			200				282				324
Leased-and-operated hotels			160				178				187
Franchised-and-managed hotels			40				104				137
Total Hotel rooms in operation			24,707				33,650				37,782
Leased-and-operated hotels			20,235				22,334				23,331
Franchised-and-managed hotels			4,472				11,316				14,451
Number of cities			38				47				51

		For the quarter ended
		June 30, 2009				March 31, 2010				June 30, 2010
Occupancy rate (as a percentage)
Leased-and-operated hotels			96	%			95	%			100	%
Franchised-and-managed hotels			91	%			88	%			94	%
Total hotels in operation			96	%			93	%			98	%
Average daily room rate (in RMB)
Leased-and-operated hotels			175				175				200
Franchised-and-managed hotels			173				167				189
Total hotels in operation			174				173				196
RevPAR (in RMB)
Leased-and-operated hotels			168				166				199
Franchised-and-managed hotels			157				147				179
Total hotels in operation			167				161				192

Like-for-like performance for hotels opened for at least 18 months during the current quarter

		As of and for the quarter ended
		June 30, 2009				June 30, 2010
Total hotels in operation:			167				167
Leased-and-operated hotels			147				147
Franchised-and-managed hotels			20				20
Total Hotel rooms in operation			21,023				21,023
Leased-and-operated hotels			18,681				18,681
Franchised-and-managed hotels			2,342				2,342
Occupancy rate (as a percentage)			99	%			102	%
Average daily rate (in RMB)			175				201
RevPAR (in RMB)			173				205

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