Form 6-K Filing
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

March 2015

Commission File Number: 001-34656

______________________

China Lodging Group, Limited
(Exact name of registrant as specified in its charter)

No. 2266 Hongqiao Road
Changning District
Shanghai 200336
People's Republic of China
(86) 21 6195-2011

(Address of principal executive office)

______________________

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 [ x]      Form 40-F [  ]

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):       

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):       


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.

  China Lodging Group, Limited


By:  /s/ Qi Ji
Name:      Qi Ji
Title: Chief Executive Officer
Date: March 11, 2015


EXHIBIT INDEX

Exhibit Number


Description

Exhibit 99.1


China Lodging Group, Limited Reports Fourth Quarter of 2014 Financial Results

China Lodging Group, Limited Reports Fourth Quarter and Full Year 2014 Financial Results

EXHIBIT 99.1

China Lodging Group, Limited Reports Fourth Quarter and Full Year 2014 Financial Results

SHANGHAI, China, March 10, 2015 (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 unaudited financial results for the fourth quarter and full year ended December 31, 2014.

Operational Highlights of Fourth Quarter 2014

Operational Highlights of Full Year 2014

"We are excited about our rapid build-up of hotel network in 2014, largely driven by our solid growth in manachise business and wide choice of brands. A record high of net 570 hotels were added into our system in a single year, more than 90% of which are under manachise model and more than 25% are under new brands." said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group.

Mr. Ji continued, "On the front of digital innovation, we have implemented the proprietary Cloud-based HPMS across our entire hotel network, and introduced new functionalities on Huazhu.com and Huazhu mobile apps. These digital initiatives will enable us to further enhance customer experience and improve hotel operational efficiency on a large scale. Looking ahead, we are confident to fortify our leading position as a hotel management group in China by executing our strategies."

"In the fourth quarter, we signed agreements to form a strategic alliance with Accor. Under the agreements, Accor's economy and midscale hotel platform will become part of our network. We will receive the exclusive rights as a master franchisee for brands, including Grand Mercure, Novotel, Mercure, Ibis and Ibis Styles, in mainland China, Taiwan region and Mongolia. We believe the collaboration will create the most successful hotel business in China, and make the Accor-Huazhu alliance an unprecedented success." Mr. Ji added.

Fourth Quarter and Full Year of 2014 Financial Results

(RMB in thousands) Q4 2013 Q3 2014 Q4 2014 2013 FY 2014 FY
Revenues:          
Leased hotels  1,036,650  1,256,926  1,160,852  3,870,887  4,522,431
Manachised and franchised hotels  151,736  214,577  212,059  549,958  742,797
Total revenues  1,188,386  1,471,503  1,372,911  4,420,845  5,265,228
Less: business tax and related surcharges  (68,172)  (84,002)  (76,674)  (252,216)  (300,500)
Net revenues  1,120,214  1,387,501  1,296,237  4,168,629  4,964,728

Total revenues for the fourth quarter of 2014 were RMB1,372.9 million (US$221.3 million), representing a 15.5% year-over-year increase and an 6.7% sequential decrease. The year-over-year increase was primarily due to our hotel network expansion. The sequential decrease was due to seasonality.

Total revenues for the full year of 2014 were RMB5,265.2 million (US$848.6 million), representing an increase of 19.1% from the full year of 2013.

Total revenues from leased hotels for the fourth quarter of 2014 were RMB1,160.9 million (US$187.1 million), representing a 12.0% year-over-year increase and a 7.6% sequential decrease.

For the full year of 2014, total revenues from leased hotels were RMB4,522.4 million (US$728.9 million), representing a 16.8% year-over-year increase.

Total revenues from manachised and franchised hotels for the fourth quarter of 2014 were RMB212.1 million (US$34.2 million), representing a 39.8% year-over-year increase and a 1.2% sequential decrease.

For the full year of 2014, total revenues from manachised and franchised hotels were RMB 742.8 million (US$119.7 million), representing a 35.1% year-over-year increase. It accounts for 14.1% of total revenues, compared to 12.4% of total revenues for the year of 2013. 

Net revenues for the fourth quarter of 2014 were RMB1,296.2 million (US$208.9 million), representing a 15.7% year-over-year increase and a 6.6% sequential decrease.

Net revenues for the full year of 2014 were RMB4,964.7 million (US$800.2 million), representing a 19.1% year-over-year increase.

(RMB in thousands) Q4 2013 Q3 2014 Q4 2014 2013 FY 2014 FY
Operating costs and expenses:          
Hotel operating costs  876,713  983,259  1,048,926  3,181,666  3,878,027
Selling and marketing expenses  45,088  53,610  65,179  138,129  187,435
General and administrative expenses  80,765  99,520  102,985  284,756  342,128
Pre-opening expenses  48,999  44,983  43,246  211,284  186,325
Total operating costs and expenses  1,051,565  1,181,372  1,260,336  3,815,835  4,593,915

Hotel operating costs for the fourth quarter of 2014 were RMB1,048.9 million (US$169.1 million), compared to RMB876.7 million (US$144.8 million) in the fourth quarter of 2013 and RMB983.3 million (US$160.2 million) in the previous quarter, representing a 19.6% year-over-year increase and a 6.7% sequential increase. The Company's hotel network expansion, especially the increased number of midscale leased hotel rooms which incurred a significant amount of rental and depreciation costs, was the main driver for the increase in hotel operating costs. Total hotel operating costs excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2014 were RMB1,046.9 million (US$168.7 million), representing 80.7% of net revenues, compared to 78.2% for the fourth quarter in 2013 and 70.7% for the previous quarter. The year-over-year increase in the percentage was mainly attributable to the decrease of RevPAR and the cost inflation. The sequential increase in the percentage was mainly due to seasonality.

For the full year of 2014, total hotel operating costs were RMB3,878.0 million (US$625.0 million), compared to RMB3,181.7 million (US$525.6 million) in 2013. Excluding share-based compensation, hotel operating costs (non-GAAP) were RMB3,871.2 million (US$623.9 million), representing 78.0% of net revenues, compared to 76.2% in 2013. The year-over-year increase was mainly driven by the decrease in RevPAR and the cost inflation.

Selling and marketing expenses for the fourth quarter of 2014 were RMB65.2 million (US$10.5 million), compared to RMB45.1 million (US$7.4 million) in the fourth quarter of 2013 and RMB53.6 million (US$8.7 million) in the previous quarter. Selling and marketing expenses excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2014 were RMB64.9 million (US$10.5 million), or 5.0% of net revenues, compared to 4.0% for the fourth quarter of 2013 and 3.9% for the previous quarter. The year-over-year and sequential increase was mainly due to various promotional activities to attract more new members. During the fourth quarter of 2014, the Company acquired 6.9 million new members, compared with 2.0 million in the fourth quarter of 2013 and 4.9 million in the previous quarter.

For the full year of 2014, total selling and marketing expenses were RMB187.4 million (US$30.2 million), compared to RMB138.1 million (US$22.8 million) in 2013. Selling and marketing expenses excluding share-based compensation expenses (non-GAAP) were RMB186.5 million (US$30.1 million), representing 3.8% of net revenues, compared to 3.3% in 2013. The year-over-year increase in the percentage was mainly due to various promotional activities to attract more new members and higher portion of reservations through third-party agencies from new brands.

General and administrative expenses for the fourth quarter of 2014 were RMB103.0 million (US$16.6 million), compared to RMB80.8 million (US$13.3 million) in the fourth quarter of 2013 and RMB99.5 million (US$16.2 million) in the previous quarter. General and administrative expenses excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2014 were RMB103.2 million (US$16.6 million), representing 7.9% of net revenues, compared with 6.8% of net revenues in the fourth quarter of 2013 and 6.2% in the previous quarter. The year-over-year increase in the percentage was mainly attributable to our investments in technology for digital related initiatives and new brands and a significant growth in the number of manachised hotels.

General and administrative expenses were RMB342.1 million (US$55.1 million) for the year of 2014, compared to RMB284.8 million (US$47.0 million) in 2013. General and administrative expenses excluding share-based compensation expenses (non-GAAP) were RMB318.0 million (US$51.2 million), representing 6.4% of net revenues, compared to 6.2% in 2013. The year-over-year increase in the percentage was mainly attributable to our investments in technology personnel for digital related initiatives and new brands and a significant growth in the number of manachised hotels.

Pre-opening expenses for the fourth quarter of 2014 were RMB43.2 million (US$7.0 million), representing an 11.7% year-over-year decrease and a 3.9% sequential decrease. The decrease was mainly due to fewer leased hotels opened and in the pipeline in the fourth quarter of 2014.

Pre-opening expenses for the full year of 2014 were RMB186.3 million (US$30.0 million), compared to RMB211.3 million (US$34.9 million) in 2013, representing a year-over-year decrease of 11.8%. The decrease in pre-opening expenses was mainly due to fewer leased hotel opened and in the pipeline in 2014. The pre-opening expenses as a percentage of net revenues decreased to 3.8% in 2014 from 5.1% in 2013.

Income from operations for the fourth quarter of 2014 was RMB48.8 million (US$7.9 million), compared to RMB85.2 million (US$14.1 million) in the fourth quarter of 2013 and RMB202.1 million (US$32.9 million) in the previous quarter. Excluding share-based compensation expenses, adjusted income from operations (non-GAAP) for the fourth quarter of 2014 was RMB51.0 million (US$8.2 million), compared to adjusted income from operation (non-GAAP) of RMB91.4 million (US$15.1 million) for the fourth quarter of 2013 and RMB218.0 million (US$35.5 million) for the previous quarter. The adjusted operating margin for the fourth quarter of 2014 was 4.0%, compared with 8.1% in the fourth quarter of 2013 and 15.8% in the previous quarter.

Income from operations for the year was RMB389.4 million (US$62.8 million), compared to RMB380.5 million (US$62.9 million) in 2013. Excluding share-based compensation expenses, adjusted income from operations (non-GAAP) for the year of 2014 was RMB421.3 million (US$67.9 million), compared to RMB411.0 million (US$67.9 million) for the year of 2013. The growth in income from operations was attributable to rapid expansion of our hotel network and lower pre-opening expenses in 2014. The adjusted operating margin (non-GAAP) for the year of 2014 was 8.5%, compared with 9.8% for the year of 2013.

Net income attributable to China Lodging Group, Limited for the fourth quarter of 2014 was RMB46.8 million (US$7.5 million), compared to RMB58.5 million (US$9.7 million) in the fourth quarter of 2013 and RMB149.6 million (US$24.4 million) in the previous quarter. Excluding share-based compensation expenses, adjusted net income attributable to China Lodging Group, Limited (non-GAAP) for the fourth quarter of 2014 was RMB49.0 million (US$7.9 million), representing a 24.3% year-over-year decrease and a 70.4% sequential decrease.

Net income attributable to China Lodging Group, Limited for the full year of 2014 was RMB307.3 million (US$49.5 million), compared to RMB279.9 million (US$46.2 million) in 2013. Excluding share-based compensation expenses, adjusted net income attributable to China Lodging Group (non-GAAP) for the full year of 2014 was RMB339.3 million (US$54.7 million), compared to RMB310.3 million (US$51.3 million) in 2013. The year-over-year increase of 9.3% was mainly attributable to the expansion of our hotel network and lower pre-opening expenses.

Basic and diluted earnings per share/ADS. For the fourth quarter of 2014, basic earnings per share were RMB0.19 (US$0.03) and diluted earnings per share were RMB0.18 (US$0.03); basic earnings per ADS were RMB0.75 (US$0.12) and diluted earnings per ADS were RMB0.74 (US$0.12). For the fourth quarter of 2014, excluding share-based compensation expenses, adjusted basic earnings per share were RMB0.20 (US$0.03) and adjusted diluted earnings per share (non-GAAP) were RMB0.19 (US$0.03); adjusted basic earnings per ADS (non-GAAP) were RMB0.79 (US$0.13) and adjusted diluted earnings per ADS (non-GAAP) were RMB0.77 (US$0.12).

For the full year of 2014, basic earnings per share were RMB1.23 (US$0.20) and diluted earnings per share were RMB1.21 (US$0.20); basic earnings per ADS were RMB4.94 (US$0.80), while diluted earnings per ADS were RMB4.86 (US$0.78). For the full year of 2014, excluding share-based compensation expenses, adjusted basic earnings per share (non-GAAP) were RMB1.36 (US$0.22), while adjusted diluted earnings per share (non-GAAP) were RMB1.34 (US$0.22), and adjusted basic earnings per ADS (non-GAAP) were RMB5.45 (US$0.88), while adjusted diluted earnings per ADS (non-GAAP) were RMB5.36 (US$0.86).

EBITDA (non-GAAP) for the fourth quarter of 2014 was RMB204.0 million (US$32.9 million), compared with RMB210.5 million (US$34.8 million) in the fourth quarter of 2013 and RMB349.5 million (US$56.9 million) in the previous quarter. Excluding share-based compensation expenses, adjusted EBITDA (non-GAAP) for the fourth quarter of 2014 was RMB206.2 million (US$33.2 million), compared with RMB216.7 million (US$35.8 million) for the fourth quarter of 2013 and RMB365.4 million (US$59.5 million) for the previous quarter.

EBITDA (non-GAAP) for the full year of 2014 was RMB969.5 million (US$156.3 million), compared to RMB841.8 million (US$139.1 million) in 2013. Excluding share-based compensation expenses, adjusted EBITDA (non-GAAP) for the full year of 2014 was RMB1,001.5 million (US$161.4 million), compared with RMB872.2 million (US$144.1 million) in 2013, representing a 14.8% year-on-year increase. The year-over-year increase was mainly due to the expansion of the Company's hotel network. The adjusted EBITDA margin (non-GAAP) for the year of 2014 was 20.2%, compared with 20.9% for the year of 2013.

Hotel income (non-GAAP), which is the difference between net revenues and hotel operating costs, was RMB247.3 million (US$39.9 million) for the fourth quarter of 2014, compared with RMB243.5 million (US$40.2 million) in the fourth quarter of 2013 and RMB404.2 million (US$65.9 million) in the previous quarter. The hotel income from the leased hotels was RMB93.2 million (US$15.0 million) during the fourth quarter of 2014. The hotel income from the manachised and franchised hotels was RMB154.1 million (US$24.9 million) during the fourth quarter of 2014, or accounting for approximately 62% of total hotel income.

Hotel income (non-GAAP) for the full year of 2014 was RMB1,086.7 million (US$175.1 million), compared with RMB987.0 million (US$163.0 million) for 2013. The hotel income from the leased hotels was RMB548.4 million (US$88.4 million) for the full year of 2014. The hotel income from the manachised and franchised hotels was RMB538.3 million (US$86.7 million) during the full year of 2014, or accounting for approximately 50% of total hotel income.

Cash flow. Operating cash inflow for the fourth quarter of 2014 was RMB457.5 million (US$73.7 million). Investing cash outflow for the fourth quarter was RMB201.2 million (US$32.4 million).

Operating cash inflow for the full year of 2014 was RMB1,454.0 million (US$234.3 million), representing an increase of 36% from 2013. The significant growth was mainly due to the Company's fast network expansion with manachise model. Investing cash outflow for the full year of 2014 was RMB1,063.2 million (US$171.4 million), representing a decrease of 8% from 2013. The Company's free cash flow turned positive.

Cash and cash equivalents. As of December 31, 2014, the Company had a total balance of cash and cash equivalents of RMB808.9 million (US$130.4 million).

Debt financing

In the fourth quarter of 2014, the company repaid the loan of RMB300 million. As of December 31, 2014, the Company had a total credit facility of RMB898.3 million available and had not drawn down any of the credit facility.

Business Outlook and Guidance for 2015

"We remain confident about the long-term growth potential of travel demand in China. We will continue to invest in our new brands to meet diversified needs. In 2015, we plan to add 680 to 730 leased and manachised hotels, with 20 to 30 leased hotels and 660 to 700 manachised and franchised hotels. Among these new hotels, 80% will be economy hotels, and 20% will be midscale and upscale hotels." commented Mr. Ji.

In the first quarter of 2015, the Company expects net revenues to grow 12% to 14% year-over-year. For the full year 2015, the Company expects net revenues to grow 7.5% to 11.5% from 2014.

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

Conference Call

China Lodging Group's management will host a conference call at 9 p.m. ET, Tuesday, March 10, 2015 (or 9 a.m. on Wednesday, March 11, 2015 in the Shanghai/Hong Kong time zone) following the announcement. To participate in the event by telephone, please dial +1 (855) 500 8701 (for callers in the US), +86 400 120 0654 (for callers in China Mainland), +852 3018 6776 (for callers in Hong Kong) or +65 6723 9385 (for callers outside of the US, China Mainland, and Hong Kong) and entering pass code 8517 6017. 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 March 18, 2015. Please dial +1 (855) 452 5696 (for callers in the US) or +61 2 9003 4211 (for callers outside the US) and entering pass code 8517 6017.

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.huazhu.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 operating margin excluding share-based compensation expenses; adjusted net income attributable to China Lodging Group, Limited excluding share-based compensation expenses; adjusted basic and diluted earnings per share and per ADS excluding share-based compensation expenses; EBITDA; adjusted EBITDA excluding share-based compensation expenses; and hotel income. 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 Company performance by excluding share-based compensation expenses that may not be indicative of Company operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Company 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 also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in 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 the Company's 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 that comprise a significant portion of the Company's 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 adjusted EBITDA, which is defined as EBITDA before share-based compensation expenses, to assess operating results of the hotels in operation. The Company believes that the exclusion of share-based compensation expenses helps facilitate year-on-year comparison of the results of operations as the share-based compensation expenses may not be indicative of Company operating performance. Therefore, the Company believes adjusted EBITDA more closely reflects the performance capability of hotels currently in operation. The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that the Company's future results will be unaffected by other charges and gains considered to be outside the ordinary course of business.

The use of EBITDA and adjusted EBITDA 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. Share-based compensation expenses have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. 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 income, interest expense, income tax expense, share-based compensation 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 of the Company.

The terms EBITDA and adjusted EBITDA are not defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA 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, investors should not consider these data in isolation or as a substitute for the Company's 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 adjusted EBITDA may not be comparable to EBITDA or adjusted EBITDA – or similarly titled measures utilized by other companies – since such other companies may not calculate EBITDA or adjusted EBITDA in the same manner as the Company does.

To monitor performance of hotels at different maturity level and of different form, the Company also tracks hotel income, which is the difference between net revenues and hotel operating costs.

Reconciliations of the Company's non-GAAP financial measures, including EBITDA, adjusted EBITDA, and hotel income, to the consolidated statement of operations information are included at the end of this press release.

About China Lodging Group, Limited

China Lodging Group, Limited is a leading and fast-growing multi-brand hotel group in China. The Company provides business and leisure travelers with high-quality, and conveniently-located hotel products under seven brands, namely, Joya Hotel, Manxin Hotels & Resorts, JI Hotel, Starway Hotel, HanTing Hotel, Elan Hotel and Hi Inn. 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, 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 anticipated growth strategies of the Company, the future results of operations and financial condition of the Company, the economic conditions of China, the regulatory environment in China, the Company's ability to attract customers and leverage its brand, trends and competition in the lodging industry, the expected growth of the lodging market in China and other factors and risks outlined in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F and other filings. 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. This release also contains statements or projections that are based upon information available to the public, as well as other information from sources which the Company believes to be reliable, but it is not guaranteed by the Company to be accurate, nor does the Company purport it to be complete. 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.

1 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.2046 on December 31, 2014 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.

2 Each ADS represents four of the Company's ordinary shares.

--Financial Tables and Operational Data Follow—

 

China Lodging Group, Limited
Unaudited Condensed Consolidated Balance Sheets
  December 31, 2013 September 30, 2014 December 31, 2014
  RMB RMB RMB US$
  (in thousands)
ASSETS        
Current assets:        
Cash and cash equivalents  397,435  849,522  808,865  130,365
Restricted cash  3,317  --   --   -- 
Short-term investments  --   60,900  26,615  4,290
Accounts receivable, net  74,646  101,196  89,243  14,384
Amounts due from related parties  658  15,560  16,293  2,626
Prepaid rent  363,581  371,804  385,158  62,076
Inventories  34,013  32,758  29,882  4,816
Other current assets  116,979  171,339  160,582  25,881
Deferred tax assets  51,759  51,759  80,026  12,898
Total current assets  1,042,388  1,654,838  1,596,664  257,336
         
Property and equipment, net  3,634,039  3,860,165  3,907,343  629,749
Intangible assets, net  101,845  101,962  104,537  16,848
Long-term investments  90,517  242,325  229,005  36,909
Goodwill  64,842  64,842  64,654  10,421
Other assets  184,013  190,372  197,233  31,788
Deferred tax assets  67,408  67,408  83,470  13,453
Total assets  5,185,052  6,181,912  6,182,906  996,504
         
LIABILITIES AND EQUITY        
Current liabilities:        
Short-term debt  --   300,000  --   -- 
Accounts payable  677,305  641,216  640,691  103,261
Amounts due to a related party  5,593  6,957  6,403  1,032
Salary and welfare payable  147,238  102,610  186,051  29,986
Deferred revenue  297,284  459,361  514,268  82,885
Accrued expenses and other current liabilities  249,185  288,798  313,017  50,449
Income tax payable  26,053  45,636  59,630  9,610
Deferred tax liabilities  151  151  701  113
Total current liabilities  1,402,809  1,844,729  1,720,761  277,336
         
Deferred rent  653,831  774,581  830,414  133,838
Deferred revenue  118,818  147,068  155,395  25,046
Amounts due to a related party  8,167  6,125  4,083  658
Other long-term liabilities  147,565  189,888  215,762  34,774
Deferred tax liabilities  26,071  26,071  37,778  6,089
Total liabilities  2,357,261  2,988,462  2,964,193  477,741
         
Equity:        
Ordinary shares  182  183  184  30
Additional paid-in capital  2,315,083  2,362,780  2,381,568  383,839
Retained earnings  539,872  800,380  847,221  136,547
Accumulated other comprehensive income (loss)  (39,384)  20,543  (12,008)  (1,935)
Total China Lodging Group, Limited shareholders' equity  2,815,753  3,183,886  3,216,965  518,481
Noncontrolling interest  12,038  9,564  1,748  282
Total equity  2,827,791  3,193,450  3,218,713  518,763
Total liabilities and equity  5,185,052  6,181,912  6,182,906  996,504
 
China Lodging Group, Limited
Unaudited Condensed Consolidated Statements of Comprehensive Income
  Quarter Ended Year Ended
  December 31, 2013 September 30, 2014 December 31, 2014 December 31, 2013  December 31, 2014    
  RMB RMB RMB US$ RMB RMB US$
  (in thousands, except per share and per ADS data)
Revenues:              
Leased hotels  1,036,650  1,256,926  1,160,852  187,095  3,870,887  4,522,431  728,884
Manachised and franchised hotels  151,736  214,577  212,059  34,178  549,958  742,797  119,717
Total revenues  1,188,386  1,471,503  1,372,911  221,273  4,420,845  5,265,228  848,601
Less: business tax and related surcharges  (68,172)  (84,002)  (76,674)  (12,358)  (252,216)  (300,500)  (48,432)
Net revenues  1,120,214  1,387,501  1,296,237  208,915  4,168,629  4,964,728  800,169
               
Operating costs and expenses:              
Hotel operating costs:              
Rents  (350,073)  (382,417)  (414,525)  (66,809)  (1,255,663)  (1,543,651)  (248,791)
Utilities  (69,941)  (78,692)  (83,723)  (13,494)  (273,314)  (323,837)  (52,193)
Personnel costs  (171,673)  (206,731)  (210,210)  (33,880)  (638,511)  (788,973)  (127,159)
Depreciation and amortization  (124,077)  (142,767)  (152,386)  (24,560)  (453,062)  (558,833)  (90,068)
Consumables, food and beverage  (108,758)  (119,572)  (121,754)  (19,623)  (391,715)  (454,795)  (73,300)
Others  (52,191)  (53,080)  (66,328)  (10,690)  (169,401)  (207,938)  (33,514)
Total hotel operating costs  (876,713)  (983,259)  (1,048,926)  (169,056)  (3,181,666)  (3,878,027)  (625,025)
Selling and marketing expenses  (45,088)  (53,610)  (65,179)  (10,505)  (138,129)  (187,435)  (30,209)
General and administrative expenses  (80,765)  (99,520)  (102,985)  (16,598)  (284,756)  (342,128)  (55,141)
Pre-opening expenses  (48,999)  (44,983)  (43,246)  (6,970)  (211,284)  (186,325)  (30,030)
Total operating costs and expenses  (1,051,565)  (1,181,372)  (1,260,336)  (203,129)  (3,815,835)  (4,593,915)  (740,405)
Other operating income  16,553  (4,018)  12,947  2,087  27,750  18,551  2,990
Income from operations  85,202  202,111  48,848  7,873  380,544  389,364  62,754
Interest income  2,319  5,798  7,872  1,269  6,856  23,162  3,733
Interest expense  (197)  (631)  (173)  (28)  (813)  (1,533)  (247)
Other income (expense)  22  (316)  (417)  (67)  1,907  4,749  765
Foreign exchange gain (loss)  (40)  (25)  (17)  (3)  21  (246)  (39)
Income before income taxes  87,306  206,937  56,113  9,044  388,515  415,496  66,966
Income tax expense  (27,348)  (59,512)  (8,755)  (1,411)  (104,820)  (113,105)  (18,229)
Net income  59,958  147,425  47,358  7,633  283,695  302,391  48,737
Less: net loss (income) attributable to noncontrolling interests  (1,418)  2,174  (517)  (84)  (3,837)  4,957  799
Net income attributable to China Lodging Group, Limited  58,540  149,599  46,841  7,549  279,858  307,348  49,536
Other comprehensive income              
Unrealized securities holding gains (losses), net of tax  --   32,223  (30,847)  (4,972)  --   28,458  4,587
Foreign currency translation adjustments, net of tax  113  (606)  (1,126)  (181)  (976)  (1,082)  (175)
Comprehensive income  60,071  179,042  15,385  2,480  282,719  329,767  53,149
Comprehensive loss (income) attributable to the noncontrolling interest  (1,418)  2,174  (517)  (84)  (3,837)  4,957  799
Comprehensive income attributable to China Lodging Group, Limited  58,653  181,216  14,868  2,396  278,882  334,724  53,948
               
Earnings per share:              
Basic  0.24  0.60  0.19  0.03  1.14  1.23  0.20
Diluted  0.23  0.59  0.18  0.03  1.12  1.21  0.20
               
Earnings per ADS:              
Basic  0.95  2.40  0.75  0.12  4.57  4.94  0.80
Diluted  0.93  2.36  0.74  0.12  4.49  4.86  0.78
               
Weighted average number of shares used in computation:              
Basic  246,162  249,552  249,642  249,642  245,187  248,958  248,958
Diluted  250,748  253,608  253,906  253,906  249,486  253,004  253,004
 
China Lodging Group, Limited
Unaudited Condensed Consolidated Statements of Cash Flows
  Quarter Ended Year Ended
  December 31, 2013 September 30, 2014 December 31, 2014 December 31, 2013  December 31, 2014    
  RMB RMB RMB US$ RMB RMB US$
  (in thousands)
Operating activities:              
Net income (loss)  59,958  147,425  47,358  7,633  283,695  302,391  48,737
Adjustments to reconcile net income to net cash provided by operating activities:            
Share-based compensation  6,211  15,891  2,199  354  30,468  31,937  5,147
Depreciation and amortization  126,700  145,568  156,096  25,158  463,146  570,722  91,984
Deferred taxes  (22,619)  --   (42,391)  (6,832)  (22,619)  (42,391)  (6,832)
Bad debt expenses  281  754  3,022  487  4,573  4,770  769
Deferred rent  41,709  35,514  58,172  9,375  187,214  182,580  29,427
Gain (loss) from disposal of property and equipment  (10,734)  2,836  (522)  (84)  (10,734)  803  129
Impairment loss  7,965  10,820  13,868  2,235  7,965  27,391  4,415
Investment income (loss)  308  666  898  145  430  (4,902)  (790)
Excess tax benefit from share-based compensation  (11,473)  (3,305)  (2,867)  (462)  (14,582)  (11,697)  (1,885)
               
Changes in operating assets and liabilities, net of effect of acquisitions:              
Accounts receivable  1,379  (10,057)  9,119  1,470  (28,270)  (18,773)  (3,026)
Prepaid rent  (2,637)  12,543  (13,353)  (2,152)  (42,276)  (21,577)  (3,478)
Inventories  (2,817)  (3,373)  2,876  463  4,043  4,130  665
Amounts due from related parties  (658)  --   --   --   (658)  256  41
Other current assets  (13,223)  (27,262)  11,669  1,881  (26,400)  (42,369)  (6,829)
Other assets  (901)  3,299  (6,861)  (1,106)  (50,228)  (13,220)  (2,131)
Accounts payable  7,913  11,243  4,045  652  3,605  18,016  2,904
Amounts due to a related party  (1,856)  514  (554)  (89)  708  810  131
Salary and welfare payables  70,124  (28,417)  83,441  13,448  28,768  38,813  6,256
Deferred revenue  37,272  72,265  63,235  10,192  115,787  253,562  40,867
Accrued expenses and other current liabilities  17,450  12,399  24,380  3,929  62,545  58,995  9,508
Income tax payable and receivable  17,591  23,778  17,693  2,851  17,493  45,274  7,297
Other long-term liabilities  17,898  15,946  25,949  4,182  55,496  68,494  11,039
Net cash provided by operating activities  345,841  439,047  457,472  73,730  1,070,169  1,454,015  234,345
               
Investing activities:              
Purchases of property and equipment  (285,973)  (225,314)  (219,024)  (35,300)  (1,072,647)  (930,922)  (150,037)
Purchases of intangibles  (3,395)  (1,513)  (5,629)  (907)  (4,290)  (10,423)  (1,680)
Amount received as a result of government zoning  12,530  4,004  --   --   15,030  10,557  1,701
Acquisitions, net of cash received  --   (460)  (2,160)  (348)  (34,070)  (16,050)  (2,587)
Proceeds from disposal of subsidiary and branch  --   17,484  1,000  161  --   18,484  2,979
Purchase of long-term investments  (54,314)  (20,000)  (14,789)  (2,384)  (54,744)  (191,064)  (30,794)
Payment for shareholder loan to joint venture  --   (699)  (734)  (118)  --   (15,640)  (2,521)
Proceeds from sale of long-term investments  --   1,135  4,345  700  --   88,266  14,226
Purchase of short-term investments  4,314  (55,499)  (19,710)  (3,177)  --   (75,210)  (12,122)
Proceeds from sales of short-term investments  --   --   55,499  8,945  --   55,499  8,945
Increase in restricted cash  930  755  --   --   (1,527)  3,317  535
Net cash used in investing activities  (325,908)  (280,107)  (201,202)  (32,428)  (1,152,248)  (1,063,186)  (171,355)
               
Financing activities:              
Net proceeds from issuance of ordinary shares upon exercise of option  18,834  1,427  12,624  2,035  28,122  20,985  3,382
Proceeds from short-term debt  --   --   --   --   105,796  300,000  48,351
Repayment of short-term debt  (1,256)  --   (300,000)  (48,351)  (105,796)  (300,000)  (48,351)
Funds advanced from noncontrolling interest holders  --   --   --   --   1,945  --   -- 
Repayment of funds advanced from noncontrolling interest holders  (1,105)  (580)  (340)  (55)  (6,564)  (1,560)  (251)
Acquisition of noncontrolling interest  (4,210)  --   (2,042)  (329)  (4,210)  (4,083)  (658)
Contribution from noncontrolling interest holders  --   7,000  (7,000)  (1,128)  200  --   -- 
Repayment to noncontrolling interest holders  --   --   --   --   (200)  --   -- 
Dividend paid to noncontrolling interest holders  (177)  (2,813)  (1,333)  (215)  (3,229)  (5,356)  (863)
Excess tax benefit from share-based compensation  11,473  3,305  2,867  462  14,582  11,697  1,885
Net cash provided by (used in) financing activities  23,559  8,339  (295,224)  (47,581)  30,646  21,683  3,495
               
Effect of exchange rate changes on cash and cash equivalents  140  (29)  (1,703)  (274)  (976)  (1,082)  (175)
               
Net increase in cash and cash equivalents  43,632  167,250  (40,657)  (6,553)  (52,409)  411,430  66,310
Cash and cash equivalents at the beginning of the period  353,803  682,272  849,522  136,918  449,844  397,435  64,055
Cash and cash equivalents at the end of the period  397,435  849,522  808,865  130,365  397,435  808,865  130,365
 
China Lodging Group, Limited
Unaudited reconciliation of GAAP and Non-GAAP Results
  Quarter Ended December 31, 2014
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  RMB   RMB   RMB  
  (in thousands)
             
Hotel operating costs  1,048,926 80.9%  2,075 0.2%  1,046,851 80.7%
Selling and marketing expenses  65,179 5.0%  289 0.0%  64,890 5.0%
General and administrative expenses  102,985 7.9%  (165) 0.0%  103,150 7.9%
Pre-opening expenses  43,246 3.3%  --  0.0%  43,246 3.3%
Total operating costs and expenses  1,260,336 97.1%  2,199 0.2%  1,258,137 96.9%
Income from operations  48,848 3.8%  2,199 0.2%  51,047 4.0%
             
  Quarter Ended December 31, 2014          
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  US$   US$   US$  
  (in thousands)
             
Hotel operating costs  169,056 80.9%  334 0.2%  168,722 80.7%
Selling and marketing expenses  10,505 5.0%  47 0.0%  10,458 5.0%
General and administrative expenses  16,598 7.9%  (27) 0.0%  16,625 7.9%
Pre-opening expenses  6,970 3.3%  --  0.0%  6,970 3.3%
Total operating costs and expenses  203,129 97.1%  354 0.2%  202,775 96.9%
Income from operations  7,873 3.8%  354 0.2%  8,227 4.0%
             
  Quarter Ended September 30, 2014          
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  RMB   RMB   RMB  
  (in thousands)
             
Hotel operating costs  983,259 70.9%  2,142 0.2%  981,117 70.7%
Selling and marketing expenses  53,610 3.9%  286 0.0%  53,324 3.9%
General and administrative expenses  99,520 7.2%  13,463 1.0%  86,057 6.2%
Pre-opening expenses  44,983 3.2%  --  0.0%  44,983 3.2%
Total operating costs and expenses  1,181,372 85.2%  15,891 1.2%  1,165,481 84.0%
Income from operations  202,111 14.6%  15,891 1.2%  218,002 15.8%
             
  Quarter Ended December 31, 2013          
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  RMB   RMB   RMB  
  (in thousands)
             
Hotel operating costs  876,713 78.3%  1,443 0.1%  875,270 78.2%
Selling and marketing expenses  45,088 4.0%  203 0.0%  44,885 4.0%
General and administrative expenses  80,765 7.2%  4,565 0.4%  76,200 6.8%
Pre-opening expenses  48,999 4.4%  --  0.0%  48,999 4.4%
Total operating costs and expenses  1,051,565 93.9%  6,211 0.5%  1,045,354 93.4%
Income from operations  85,202 7.6%  6,211 0.5%  91,413 8.1%
             
  Year Ended December 31, 2014          
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  RMB   RMB   RMB  
  (in thousands)
             
Hotel operating costs  3,878,027 78.1%  6,830 0.1%  3,871,197 78.0%
Selling and marketing expenses  187,435 3.8%  939 0.0%  186,496 3.8%
General and administrative expenses  342,128 6.9%  24,168 0.5%  317,960 6.4%
Pre-opening expenses  186,325 3.8%  --  0.0%  186,325 3.8%
Total operating costs and expenses  4,593,915 92.6%  31,937 0.6%  4,561,978 92.0%
Income from operations  389,364 7.9%  31,937 0.6%  421,301 8.5%
             
  Year Ended December 31, 2014          
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  US$   US$   US$  
  (in thousands)
Hotel operating costs  625,025 78.1%  1,101 0.1%  623,924 78.0%
Selling and marketing expenses  30,209 3.8%  151 0.0%  30,058 3.8%
General and administrative expenses  55,141 6.9%  3,895 0.5%  51,246 6.4%
Pre-opening expenses  30,030 3.8%  --  0.0%  30,030 3.8%
Total operating costs and expenses  740,405 92.6%  5,147 0.6%  735,258 92.0%
Income from operations  62,754 7.9%  5,147 0.6%  67,901 8.5%
             
  Year Ended December 31, 2013          
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  RMB   RMB   RMB  
  (in thousands)          
Hotel operating costs  3,181,666 76.3%  4,948 0.1%  3,176,718 76.2%
Selling and marketing expenses  138,129 3.3%  973 0.0%  137,156 3.3%
General and administrative expenses  284,756 6.8%  24,547 0.6%  260,209 6.2%
Pre-opening expenses  211,284 5.1%  --  0.0%  211,284 5.1%
Total operating costs and expenses  3,815,835 91.5%  30,468 0.7%  3,785,367 90.8%
Income from operations  380,544 9.1%  30,468 0.7%  411,012 9.8%
 
China Lodging Group, Limited
Unaudited reconciliation of GAAP and Non-GAAP Results
  Quarter Ended Year Ended
  December 31, 2013 September 30, 2014 December 31, 2014 December 31, 2013 December 31, 2014
  RMB RMB RMB US$ RMB RMB US$
  (in thousands, except per share and per ADS data)      
               
Net income attributable to China Lodging Group, Limited (GAAP) 58,540 149,599 46,841 7,549 279,858 307,348 49,536
Share-based compensation expenses 6,211 15,891 2,199 354 30,468 31,937 5,147
Adjusted net income attributable to China Lodging Group, Limited (non-GAAP) 64,751 165,490 49,040 7,903 310,326 339,285 54,683
               
Earnings per share (GAAP)              
Basic 0.24 0.60 0.19 0.03 1.14 1.23 0.20
Diluted 0.23 0.59 0.18 0.03 1.12 1.21 0.20
               
Earnings per ADS (GAAP)              
Basic 0.95 2.40 0.75 0.12 4.57 4.94 0.80
Diluted 0.93 2.36 0.74 0.12 4.49 4.86 0.78
               
Adjusted earnings per share (non-GAAP)            
Basic 0.26 0.66 0.20 0.03 1.27 1.36 0.22
Diluted 0.26 0.65 0.19 0.03 1.24 1.34 0.22
               
Adjusted earnings per ADS (non-GAAP)            
Basic 1.05 2.65 0.79 0.13 5.06 5.45 0.88
Diluted 1.03 2.61 0.77 0.12 4.98 5.36 0.86
               
Weighted average number of shares used in computation          
Basic 246,162 249,552 249,642 249,642 245,187 248,958 248,958
Diluted 250,748 253,608 253,906 253,906 249,486 253,004 253,004
               
  Quarter Ended  Year Ended    
  December 31, 2013 September 30, 2014 December 31, 2014 December 31, 2013 December 31, 2014
  RMB RMB RMB US$ RMB RMB US$
  (in thousands)      
               
Net income attributable to China Lodging Group, Limited (GAAP) 58,540 149,599 46,841 7,549 279,858 307,348 49,536
Interest income (2,319) (5,798) (7,872) (1,269) (6,856) (23,162) (3,733)
Interest expenses 197 631 173 28 813 1,533 247
Income tax expense 27,348 59,512 8,755 1,411 104,820 113,105 18,229
Depreciation and amortization 126,700 145,568 156,096 25,158 463,146 570,722 91,984
EBITDA (non-GAAP) 210,466 349,512 203,993 32,877 841,781 969,546 156,263
Share-based Compensation 6,211 15,891 2,199 354 30,468 31,937 5,147
Adjusted EBITDA (non-GAAP) 216,677 365,403 206,192 33,231 872,249 1,001,483 161,410
               
  Quarter Ended Year Ended
  December 31, 2013 September 30, 2014 December 31, 2014 December 31, 2013 December 31, 2014
  RMB RMB RMB US$ RMB RMB US$
  (in thousands)
               
Net revenues (GAAP) 1,120,214 1,387,501 1,296,237 208,915 4,168,629 4,964,728 800,169
Less: Hotel operating costs (876,713) (983,259) (1,048,926) (169,056) (3,181,666) (3,878,027) (625,025)
Hotel income (non-GAAP) 243,501 404,242 247,311 39,859 986,963 1,086,701 175,144
   
  China Lodging Group, Limited
       
Operational Data      
  As of
  December 31, September 30, December 31,
  2013 2014 2014
Total hotels in operation:  1,425  1,849  1,995
Leased hotels  565  604  611
Manachised hotels  835  1,237  1,376
Franchised hotels*  25  8  8
Total hotel rooms in operation  152,879  197,674  209,955
Leased hotels  65,836  71,999  72,335
Manachised hotels  84,437  124,744  136,689
Franchised hotels*  2,606  931  931
Number of cities  249  282  300
       
* refers to franchised Starway hotels      
       
  For the quarter ended
  December 31, September 30, December 31,
  2013 2014 2014
Occupancy rate (as a percentage)      
Leased hotels 89.2% 92.7% 87.2%
Manachised hotels 90.6% 92.4% 86.2%
Blended 90.0% 92.5% 86.5%
Average daily room rate (in RMB)      
Leased hotels 187 198 190
Manachised hotels 171 180 169
Blended 178 187 176
RevPAR (in RMB)      
Leased hotels 166 184 166
Manachised hotels 155 166 145
Blended 160 173 153
       
  For the full year ended  
  December 31, December 31,  
  2013 2014  
Occupancy rate (as a percentage)      
Leased hotels 89.5% 88.9%  
Manachised hotels 91.6% 89.0%  
Blended 90.7% 89.0%  
Average daily room rate (in RMB)      
Leased hotels 187 190  
Manachised hotels 174 172  
Blended 180 179  
RevPAR (in RMB)      
Leased hotels 168 169  
Manachised hotels 159 153  
Blended 163 159  
       
Same-hotel Operational Data: like-for-like performance for leased and manachised hotels opened for at least 18 months during the current quarter and full year      
       
  As of and for the quarter ended  
  December 31,  
  2013 2014  
Total  1,178  1,178  
Leased hotels  505  505  
Manachised hotels  673  673  
Total  84,496  84,496  
Leased hotel rooms  45,574  45,574  
Manachised hotel rooms  38,922  38,922  
Occupancy rate (as a percentage) 92.6% 89.7%  
Average daily room rate (in RMB) 179 179  
RevPAR (in RMB) 165 161  
       
  As of and for full year ended  
  December 31,  
  2013 2014  
Total  1,178  1,178  
Leased hotels  505  505  
Manachised hotels  673  673  
Total  84,496  84,496  
Leased hotel rooms  45,574  45,574  
Manachised hotel rooms  38,922  38,922  
Occupancy rate (as a percentage) 94.3% 92.8%  
Average daily room rate (in RMB) 182 183  
RevPAR (in RMB) 171 170  
Hotel breakdown by segment      
       
       
  Number of Hotels in Operation Number of Hotel Rooms in Operation Number of Hotels
  As of December 31, 2014 As of December 31, 2014 Net Added in 2014
Economy hotels  1,819  185,959  510
Hanting Hotel  1,648  172,341  422
Leased hotels  502  57,306  29
Manachised hotels  1,146  115,035  393
Hi Inn  158  12,551  75
Leased hotels  41  3,895  --
Manachised hotels  117  8,656  75
Elan Hotel  13  1,067  13
Leased hotels  --  --  --
Manachised hotels  13  1,067  13
Midscale and upscale hotels  176  23,996  60
JI Hotel  117  17,052  49
Leased hotels  62  10,260  14
Manachised hotels  55  6,792  35
Starway Hotel  55  6,321  9
Leased hotels  3  451  2
Manachised hotels  44  4,939  24
Franchised hotels  8  931  -17
Joya Hotel  3  515  2
Leased hotels  2  315  1
Manachised hotels  1  200  1
Manxin Hotels & Resorts  1  108  --
Leased hotels  1  108  --
Total  1,995  209,955  570
                       
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  
  December 31, December 31,   December 31,   December 31,  
  2013 2014 2013 2014  yoy
change
2013 2014  yoy
change
2013 2014  yoy
change
Economy hotels  1,117  1,117 161 155 -4% 173 173 0% 93% 90% -3%
Leased hotels  473  473 163 158 -3% 178 176 -1% 92% 90% -2%
Manachised hotels  644  644 159 153 -4% 170 170 0% 94% 90% -4%
Midscale hotels  61  61 241 251 4% 273 288 6% 88% 87% -1%
Leased hotels  32  32 270 278 3% 291 312 7% 93% 89% -4%
Manachised hotels  29  29 201 212 5% 245 251 2% 82% 85% 2%
Total  1,178  1,178 165 161 -3% 179 179 0% 93% 90% -3%
                       
                       
  Number of hotels in operation Same-hotel RevPAR   Same-hotel ADR   Same-hotel Occupancy  
  As of For the full year ended   For the full year ended   For the full year ended  
  December 31, December 31,   December 31,   December 31,  
  2013 2014 2013 2014  yoy
change
2013 2014  yoy
change
2013 2014  yoy
change
Economy hotels  1,117  1,117 167 164 -2% 177 177 0% 95% 93% -2%
Leased hotels  473  473 168 165 -2% 180 179 -1% 93% 92% -1%
Manachised hotels  644  644 167 164 -2% 174 175 1% 96% 94% -2%
Midscale hotels  61  61 251 272 8% 279 296 6% 90% 92% 2%
Leased hotels  32  32 270 297 10% 292 316 8% 92% 94% 2%
Manachised hotels  29  29 211 221 5% 249 252 1% 85% 87% 3%
Total  1,178  1,178 171 170 -1% 182 183 1% 94% 93% -2%
CONTACT: Ida Yu
         Sr. Manager of Investor Relations
         Tel:  +86 (21) 6195 9561
         Email: ir@huazhu.com
         http://ir.huazhu.com