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: November 9, 2010

EXHIBIT INDEX

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

•		Net Revenues for the third quarter increased 48.4% year-over-year to RMB506.1 million (US$75.6 million, note 1), exceeding guidance of RMB460 to RMB480 million
•		Net income attributable to China Lodging Group, Limited for the third quarter increased 298.3% year-over-year to RMB88.7 million (US$13.3 million)
•		Occupancy rate reached 95% and average daily rate (“ADR”) RMB218, resulting in revenue per available room (“RevPAR”) of RMB207, a 21.4% year-over-year increase
•		368 hotels were in operation and 167 hotels under development as of September 30, 2010
•		The Company raised guidance for full year net revenues growth to 38% to 39%, up from previously announced range of 35% to 37%

Shanghai, China, November 8, 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 September 30, 2010.

Third Quarter of 2010 Operational Highlights

•		During the third quarter of 2010, the Company opened 44 new hotels, including 13 net leased-and-operated hotels and 31 net franchised-and-managed hotels. As of September 30, 2010, the Company had 368 hotels in operation, consisting of 200 leased-and-operated hotels and 168 franchised-and-managed hotels. Our hotels in operation covered 55 cities in China as of September 30, 2010, compared with 51 cities at the end of the previous quarter.
•		As of September 30, 2010, the Company had a total pipeline of 167 hotels under development, including 76 leased-and-operated hotels and 91 franchised-and-managed hotels.
•		Shanghai World Expo (the “Expo”), held from May 1st to October 31st, 2010, led to increased demand for hotels in Shanghai. As of September 30, 2010, 23% of the

Company’s hotel rooms were in Shanghai.

•

The ADR, or average daily rate, was RMB218 in the third quarter of 2010, compared with RMB174 in the third quarter of 2009 and RMB196 in the previous quarter. The 24.8% year-over-year increase was mainly attributable to increased price outside of Shanghai as a result of our strengthening brand, increased travel demand in China, and price increase in Shanghai driven by the Expo. The sequential increase was mainly due to longer exposure to the Expo in Shanghai and our continuous improvement on price outside of Shanghai.

•		The occupancy rate for all hotels in operation was 95% in the third quarter of 2010, compared with 98% in the third quarter of 2009, and 98% in the previous quarter. The year-over-year and sequential decrease was mainly attributable to increased percentage of new hotels that were still in the ramp-up stage.
•		RevPAR was RMB207 in the third quarter of 2010, compared with RMB171 in the third quarter of 2009 and RMB192 in the previous quarter. The 21.4% year-over-year increase was attributable to the higher ADR, driven by improving economic conditions, our brand and the Expo. The sequential increase was mainly due to longer exposure to the Expo in Shanghai and our continuous improvement on ADR outside of Shanghai.
•		RevPAR for the hotels which had been in operation for at least 18 months was RMB220 for the third quarter of 2010, a 27.3% increase from RMB173 for the third quarter of 2009 for the same group of hotels. The improvement was caused by higher ADR, as we increased price outside of Shanghai by leveraging our strengthening brand, increased travel demand in China, and particularly in Shanghai during the Expo.

“We are pleased with our results this quarter as we continued to experience high growth in hotel expansion and achieved record RevPAR,” said Mr. Matthew Zhang, Chief Executive Officer of HanTing Inns and Hotels. “In the third quarter 2010, we continued our brand strengthening by further penetrating into new markets. Our HanTing Club had 2.3 million individual members as of September 30, 2010. We believe our enlarged customer base will fuel our long term growth.”

Third Quarter of 2010 Financial Results

Total revenues for the quarter were RMB535.0 million (US$80.0 million), representing a 48.2% increase year-over-year and a 15.3% increase sequentially. The increase was primarily due to our increased number of hotels and higher RevPAR.

Total revenues from leased-and-operated hotels for the third quarter of 2010 were RMB497.7 million (US$74.4 million), representing a 42.3% increase year-over-year as a result of increases in both the number of leased-and-operated hotels and RevPAR. As of September 30, 2010, we had 200 leased-and-operated hotels in operation, compared with 166 a year ago.

Total revenues from franchised-and-managed hotels for the third quarter of 2010 were RMB37.3 million (US$5.6 million), representing a 228.9% increase year-over-year due to the increased number of franchised-and-managed hotels as well as improved RevPAR. As of September 30, 2010, we had 168 franchised-and-managed hotels in operation, compared with 50 a year ago.

Net revenues for the third quarter of 2010 were RMB506.1 million (US$75.6 million), representing an increase of 48.4% year-over-year and an increase of 15.3% sequentially.

Total operating costs and expenses for the third quarter of 2010 were RMB402.4 million (US$60.1 million), compared to RMB304.1 million (US$44.5 million) in the third quarter of 2009 and RMB334.3 million (US$49.3 million) in the previous quarter. Total operating costs and expenses excluding share-based compensation expenses (non-GAAP) for the quarter increased 32.2% year-over-year to RMB399.1 million (US$59.6 million). The increase was mainly due to our business expansion. Major components of operating costs and expenses are described and discussed in more details below.

Hotel operating costs for the third quarter of 2010 were RMB311.1 million (US$46.5 million), compared to RMB256.3 million (US$37.5 million) in the third quarter of 2009 and RMB273.6million (US$40.4 million) in the previous quarter. Total hotel operating costs excluding share-based compensation expenses (non-GAAP) were RMB310.7 million (US$46.4 million), representing 61.4% of net revenues, compared to 75.1% for the same quarter in 2009 and 62.3% in the previous quarter. The year-over-year decrease in hotel operating costs as a percentage of net revenues was mainly due to RevPAR improvement and rapid growth of the proportion of franchised-and-managed hotels in our hotel network.

Selling and marketing expenses for the third quarter of 2010 were RMB20.6 million (US$3.1 million), compared to RMB18.5 million (US$2.7 million) in the same quarter of 2009 and RMB16.5 million (US$2.4 million) in the previous quarter. Selling and marketing expenses excluding share-based compensation expenses (non-GAAP) were RMB20.3 million (US$3.0 million), or 4.1% of net revenues, compared to 5.4% for the same quarter in 2009 and 3.7% in the previous quarter.

General and administrative expenses for the third quarter of 2010 were RMB35.2 million (US$5.3 million), compared to RMB21.7 million (US$3.2 million) in the third quarter of 2009 and RMB25.6 million (US$3.8 million) in the previous quarter. General and administrative expenses excluding share-based compensation expenses (non-GAAP) were RMB32.5 million (US$4.9 million), representing 6.4% of the net revenues, compared with 5.8% of the net revenues in the same period of 2009 and 5.3% in the previous quarter. The year-over-year and sequential increase in general and administrative expenses was primarily due to expansion of our business, and professional service fees associated with our becoming a public company.

Pre-opening expenses for the third quarter of 2010 were RMB35.5 million (US$5.3million), representing an increase of 372.6% year-over-year and an increase of 91.4% sequentially. The increase in pre-opening expenses was a result of the increased number of leased-and-operated hotels under construction during the quarter. Thirteen leased-and-operated hotels were opened during this quarter and another 66 were under construction at the end of the quarter, compared to 9 opened and 37 under construction as for the prior quarter.

Income from operations for the quarter was RMB103.7 million (US$15.5 million), compared to RMB37.1 million (US$5.4 million) in the third quarter of 2009 and RMB104.5 million (US$15.4 million) in the previous quarter. Excluding share-based compensation expenses, adjusted income from operations (non-GAAP) for the quarter was RMB107.0 million (US$16.0 million), representing a 172.8% year-over-year increase.

Net income attributable to China Lodging Group, Limited for the quarter was RMB88.7 million (US$13.3 million), compared to RMB22.3 million (US$3.3 million) in the third quarter of 2009 and RMB79.7 million (US$11.8 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 increased 276.6% year-over-year to RMB92.0 million (US$13.7 million). The year-over-year improvement on profit was mainly attributable to the enhanced profitability of mature hotels, the expansion of our network and the favorable impact of the Expo.

Basic and diluted net earnings per share/ADS. For the third quarter of 2010, basic net earnings per share was RMB0.37(US$0.05), while diluted net earnings per share was RMB0.36 (US$0.05); basic net earnings per ADS was RMB1.47 (US$0.22), while diluted net earnings per ADS was RMB1.43 (US$0.21). Excluding share-based compensation expenses, adjusted basic net earnings per share (non-GAAP) was RMB0.38(US$0.06), while adjusted diluted net earnings per share (non-GAAP) was RMB0.37 (US$0.06), and adjusted basic net earnings per ADS (non-GAAP) was RMB1.53 (US$0.23), while adjusted diluted net earnings per ADS (non-GAAP) was RMB1.49 (US$0.22).

EBITDA (non-GAAP) for the third quarter of 2010 was RMB155.0 million (US$23.2 million), compared to RMB72.0 million (US$10.5 million) in the third quarter of 2009 and RMB144.5 million (US$21.3 million) in the previous quarter. EBITDA from operating hotels (non-GAAP) was RMB190.6 million (US$28.5 million), representing an increase of 139.7% from the same period of 2009 and an increase of 16.9% sequentially. The year-over-year increase in EBITDA and EBITDA from operating hotels was primarily due to the enhanced profitability of mature hotels, the expansion of our network and the favorable impact of the Expo.

Cash flow. Net operating cash flow for the third quarter of 2010 was RMB164.0 million (US$24.5 million). Cash spent on the purchase of property and equipment, which is part of investing cash flow, was RMB111.2million (US$16.6 million).

Cash and cash equivalents. As of September 30, 2010, the Company had cash and cash equivalents of RMB1,271.7 million (US$190.1 million).

Business Outlook and Guidance

“We are confident with our previously announced full year plan of 185-195 new hotel openings in 2010,” commented CEO Mr. Zhang. “With a good acceptance of all three HanTing hotel products in the market, we expect to benefit from our multiple-brand strategy in the next couple of years, evidenced by expanding customer coverage and growing interest from hotel franchisees.”

The Company expects to achieve net revenues in the range of RMB450 to 470 million in the fourth quarter of 2010. In light of the stronger-than-expected demand driven by the Expo and our successful increase of same-hotel revenue, we adjust our full year net revenues forecast to grow 38% to 39% 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 8 p.m. EST, Monday, November 8, 2010 (or 9 a.m. on Tuesday, November 9, 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 November 16, 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 521 625 58.

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 September 30, 2010, the Company had 368 hotels and 42,750 rooms in 55 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—

China Lodging Group, Limited
Unaudited Consolidated Balance Sheets

		December 31, 2009				September 30, 2010
		RMB				RMB				US$ ( Note 1)
		(in thousands)
Assets
Current assets:
Cash and cash equivalents			270,587				1,271,710				190,077
Restricted cash			500				12,275				1,835
Accounts receivable, net			15,158				22,212				3,320
Amount due from related parties			4,632				3,540				529
Prepaid rent			69,618				122,993				18,383
Inventories			8,883				10,535				1,575
Other current assets			28,976				27,585				4,123
Deferred tax assets			18,272				18,272				2,731
Total current assets			416,626				1,489,122				222,573
Property and equipment, net			1,028,267				1,212,064				181,162
Intangible assets, net			20,395				36,963				5,525
Goodwill			18,452				18,452				2,758
Other assets			61,170				76,806				11,479
Deferred tax assets			36,222				37,442				5,596
Total assets			1,581,132				2,870,849				429,093
Liabilities, mezzanine equity and equity
Current liabilities:
Long-term debt, current portion			57,000				24,000				3,587
Accounts payable			141,571				213,161				31,860
Amount due to related parties			928				1,579				236
Salary and welfare payable			29,597				39,275				5,870
Deferred revenue			43,203				58,925				8,807
Accrued expenses and other current liabilities			89,383				92,129				13,770
Income tax payable			3,869				37,360				5,584
Total current liabilities			365,551				466,429				69,714
Long-term debt			80,000				—				—
Deferred rent			174,775				222,848				33,308
Deferred revenue			31,558				50,137				7,494
Other long-term liabilities			20,453				38,297				5,724
Deferred tax liabilities			6,538				6,538				977
Total liabilities			678,875				784,249				117,217
Mezzanine equity
Series B convertible redeemable preferred shares			796,803				—				—
Equity
Ordinary shares			46				178				27
Series A convertible preferred shares			34				—				—
Additional paid-in capital			351,994				2,162,268				323,185
Accumulated deficit			(245,457	)			(64,625	)			(9,659	)
Accumulated other comprehensive loss			(12,528	)			(18,712	)			(2,797	)
Total China Lodging Group, Limited shareholders’ equity			94,089				2,079,109				310,756
Noncontrolling interest			11,365				7,491				1,120
Total equity			105,454				2,086,600				311,876
Total liabilities, mezzanine equity and equity			1,581,132				2,870,849				429,093

China Lodging Group, Limited
Unaudited Consolidated Statements of Operations

		Quarter Ended
		September 30, 2009				June 30, 2010				September 30, 2010
		RMB				RMB				RMB				US$ ( Note 1)
		(in thousands, except per share and per ADS data)
Revenues:
Leased-and-operated hotels			349,788				432,880				497,742				74,395
Franchised-and-managed hotels			11,325				31,142				37,250				5,568
Total revenues			361,113				464,022				534,992				79,963
Less: business tax and related surcharges			(20,004	)			(25,159	)			(28,936	)			(4,325	)
Net revenues			341,109				438,863				506,056				75,638
Operating costs and expenses:
Hotel operating costs			(256,268	)			(273,633	)			(311,115	)			(46,501	)
Selling and marketing expenses			(18,546	)			(16,507	)			(20,557	)			(3,073	)
General and administrative expenses			(21,724	)			(25,621	)			(35,169	)			(5,257	)
Pre-opening expenses			(7,518	)			(18,564	)			(35,528	)			(5,310	)
Total operating costs and expenses			(304,056	)			(334,325	)			(402,369	)			(60,141	)
Income from operations			37,053				104,538				103,687				15,497
Interest income			630				1,526				5,232				782
Interest expenses			(2,493	)			(739	)			(127	)			(19	)
Other income			—				406				399				60
Foreign exchange gain/(loss)			12				(303	)			4,011				600
Income before income tax			35,202				105,428				113,202				16,920
Income tax expense			(9,112	)			(23,403	)			(23,140	)			(3,459	)
Net income			26,090				82,025				90,062				13,461
Net income attributable to noncontrolling interests			(3,826	)			(2,323	)			(1,380	)			(206	)
Net income attributable to China Lodging Group, Limited			22,264				79,702				88,682				13,255
Net earnings per share
— Basic			0.12				0.33				0.37				0.05
— Diluted			0.12				0.32				0.36				0.05
Net earnings per ADS
— Basic			0.49				1.32				1.47				0.22
— Diluted			0.48				1.29				1.43				0.21
Weighted average ordinary shares outstanding
— Basic			59,555				241,018				241,019				241,019
— Diluted			186,265				246,305				247,536				247,536

China Lodging Group, Limited
Reconciliation of GAAP and Non-GAAP Results

		Quarter Ended September 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			311,115				61.5	%			452				0.1	%			310,663				61.4	%
Selling and marketing expenses			20,557				4.1	%			212				0.0	%			20,345				4.1	%
General and administrative expenses			35,169				6.9	%			2,623				0.5	%			32,546				6.4	%
Pre-opening expenses			35,528				7.0	%			—				0.0	%			35,528				7.0	%
Total operating costs and expenses			402,369				79.5	%			3,287				0.6	%			399,082				78.9	%
Income from operations			103,687				20.5	%			3,287				0.6	%			106,974				21.1	%

		Quarter Ended September 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			46,501				61.5	%			68				0.1	%			46,433				61.4	%
Selling and marketing expenses			3,073				4.1	%			32				0.0	%			3,041				4.1	%
General and administrative expenses			5,257				6.9	%			392				0.5	%			4,865				6.4	%
Pre-opening expenses			5,310				7.0	%			—				0.0	%			5,310				7.0	%
Total operating costs and expenses			60,141				79.5	%			492				0.6	%			59,649				78.9	%
Income from operations			15,497				20.5	%			492				0.6	%			15,989				21.1	%

		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 September 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			256,268				75.1	%			103				0.0	%			256,165				75.1	%
Selling and marketing expenses			18,546				5.4	%			155				0.0	%			18,391				5.4	%
General and administrative expenses			21,724				6.4	%			1,900				0.6	%			19,824				5.8	%
Pre-opening expenses			7,518				2.2	%			—				0.0	%			7,518				2.2	%
Total operating costs and expenses			304,056				89.1	%			2,158				0.6	%			301,898				88.5	%
Income from operations			37,053				10.9	%			2,158				0.6	%			39,211				11.5	%

		Quarter Ended
		September 30, 2009				June 30, 2010				September 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)			22,264				79,702				88,682				13,255
Share-based compensation expenses			2,158				2,984				3,287				492
Adjusted net income attributable to China Lodging Group, Limited (non-GAAP)			24,422				82,686				91,969				13,747
Net earnings per share (GAAP)
— Basic			0.12				0.33				0.37				0.05
— Diluted			0.12				0.32				0.36				0.05
Net earnings per ADS (GAAP)
— Basic			0.49				1.32				1.47				0.22
— Diluted			0.48				1.29				1.43				0.21
Adjusted net earnings per share (non-GAAP)
— Basic			0.13				0.34				0.38				0.06
— Diluted			0.13				0.34				0.37				0.06
Adjusted net earnings per ADS (non-GAAP)
— Basic			0.54				1.37				1.53				0.23
— Diluted			0.52				1.34				1.49				0.22
Weighted average ordinary shares outstanding
— Basic			59,555				241,018				241,019				241,019
— Diluted			186,265				246,305				247,536				247,536

		Quarter Ended
		September 30, 2009				June 30, 2010				September 30, 2010
		RMB				RMB				RMB				US$ ( Note 1)
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
		(in thousands)
Net income attributable to China Lodging Group, Limited (GAAP)			22,264				79,702				88,682				13,255
Interest expenses			2,493				739				127				19
Income tax expense			9,112				23,403				23,140				3,459
Depreciation and amortization			38,115				40,624				43,081				6,439
EBITDA (non-GAAP)			71,984				144,468				155,030				23,172
Pre-opening expenses			7,518				18,564				35,528				5,310
EBITDA from operating hotels (non-GAAP)			79,502				163,032				190,558				28,482

China Lodging Group, Limited

Operational Data

		As of
		September 30,				June 30,				September 30,
		2009				2010				2010
Total hotels in operation:			216				324				368
Lease-and-operated hotels			166				187				200
Franchised-and-managed hotels			50				137				168
Total Hotel rooms in operation			26,475				37,782				42,750
Lease-and-operated hotels			20,906				23,331				24,938
Franchised-and-managed hotels			5,569				14,451				17,812
Number of cities			38				51				55

		For the quarter ended
		September 30,				June 30,				September 30,
		2009				2010				2010
Occupancy rate (as a percentage)
Leased-and-operated hotels			98	%			100	%			97	%
Franchised-and-managed hotels			95	%			94	%			93	%
Total hotels in operation			98	%			98	%			95	%
Average daily room rate (in RMB)
Leased-and-operated hotels			175				200				223
Franchised-and-managed hotels			171				189				210
Total hotels in operation			174				196				218
RevPAR (in RMB)
Leased-and-operated hotels			172				199				215
Franchised-and-managed hotels			163				179				195
Total hotels in operation			171				192				207

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

		As of and for the quarter ended
		September 30,
		2009				2010
Total hotels in operation:			181				181
Leased-and-operated hotels			152				152
Franchised-and-managed hotels			29				29
Total Hotel rooms in operation			22,734				22,734
Leased-and-operated hotels			19,371				19,371
Franchised-and-managed hotels			3,363				3,363
Occupancy rate (as a percentage)			99	%			99	%
Average daily rate (in RMB)			175				221
RevPAR (in RMB)			173				220

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