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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

For the month of: May 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: May 15, 2015

EXHIBIT INDEX

Exhibit Number


Description

Exhibit 99.1


China Lodging Group, Limited Reports First Quarter of 2015 Financial Results

China Lodging Group, Limited Reports First Quarter of 2015 Results

EXHIBIT 99.1

China Lodging Group, Limited Reports First Quarter of 2015 Results

SHANGHAI, China, May 14, 2015 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (Nasdaq:HTHT) ("China Lodging Group" or the "Company"), a leading and fast-growing multi-brand hotel group in China, today announced its unaudited financial results for the first quarter ended March 31, 2015.                            

Operational Highlights of First Quarter 2015

"In the first quarter, we continued our hotel network expansion, mainly driven by the growth of asset-light business models across our brand portfolio. A record high of net 176 manachised and franchised hotels were added into our system in a single quarter, and in addition, we had a total of 664 manachised and franchised hotels in the pipeline. The fast expansion has demonstrated our growing popularity among customers and franchisees," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group.

First Quarter of 2015 Financial Results

(RMB in thousands) Q1 2014 Q4 2014 Q1 2015
Revenues:      
Leased hotels 959,056 1,160,852 1,055,541
Manachised and franchised hotels 138,752 212,059 226,283
Total revenues 1,097,808 1,372,911 1,281,824
Less: business tax and related surcharges (63,789) (76,674) (71,454)
Net revenues 1,034,019 1,296,237 1,210,370

Total revenues for the first quarter of 2015 were RMB1,281.8 million (US$206.8 million), representing a 16.8% year-over-year increase and a 6.6% sequential decrease. The year-over-year increase was primarily due to our hotel network expansion. The sequential decrease was due to seasonality.

Total revenues from leased hotels for the first quarter of 2015 were RMB1,055.5 million (US$170.3 million), representing a 10.1% year-over-year increase and a 9.1% sequential decrease.

Total revenues from manachised and franchised hotels for the first quarter of 2015 were RMB226.3 million (US$36.5 million), representing a 63.1% year-over-year increase and a 6.7% sequential increase. Total revenues from manachised and franchised hotels accounted for 17.7% for the first quarter of 2015, compared to 12.6% for the first quarter of 2014.

Net revenues for the first quarter of 2015 were RMB1,210.4 million (US$195.3 million), representing a 17.1% year-over-year increase and a 6.6% sequential decrease.

(RMB in thousands) Q1 2014 Q4 2014 Q1 2015
Operating costs and expenses:      
 Hotel operating costs  916,982  1,048,926  1,058,624
 Selling and marketing expenses  31,394  65,179  45,828
 General and administrative expenses   61,344  102,985  77,942
 Pre-opening expenses  48,023  43,246  34,593
Total operating costs and expenses  1,057,743  1,260,336  1,216,987

Hotel operating costs for the first quarter of 2015 were RMB1,058.6 million (US$170.8 million), compared to RMB917.0 million (US$147.5 million) in the first quarter of 2014 and RMB1,048.9 million (US$169.1 million) in the previous quarter, representing a 15.4% year-over-year increase and a 0.9% sequential increase. The Company's hotel network expansion, especially the increased number of midscale leased hotel rooms in operation 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 first quarter of 2015 were RMB1,056.9 million (US$170.5 million), representing 87.4% of net revenues, compared to 88.6% for the first quarter in 2014 and 80.7% for the previous quarter. The year-over-year decrease in the percentage was mainly attributable to the increased proportion of revenues from manachised and franchised hotels. The sequential increase in the percentage was mainly due to seasonality.

Selling and marketing expenses for the first quarter of 2015 were RMB45.8 million (US$7.4 million), compared to RMB31.4 million (US$5.1 million) in the first quarter of 2014 and RMB65.2 million (US$10.5 million) in the previous quarter. Selling and marketing expenses excluding share-based compensation expenses (non-GAAP) for the first quarter of 2015 were RMB45.5 million (US$7.3 million), or 3.8% of net revenues, compared to 3.0% for the first quarter of 2014 and 5.0% for the previous quarter. The year-over-year increase was mainly due to increased online marketing expenses to attract more new members.

General and administrative expenses for the first quarter of 2015 were RMB77.9 million (US$12.6 million), compared to RMB61.3 million (US$9.9 million) in the first quarter of 2014 and RMB103.0 million (US$16.6 million) in the previous quarter. General and administrative expenses excluding share-based compensation expenses (non-GAAP) for the first quarter of 2015 were RMB67.5 million (US$10.9 million), representing 5.5% of net revenues, compared with 5.4% of net revenues in the first quarter of 2014 and 7.9% in the previous quarter. The sequential decrease was mainly due to cost control efforts in the first quarter of 2015.

Pre-opening expenses for the first quarter of 2015 were RMB34.6 million (US$5.6 million), representing a 28.0% year-over-year decrease and a 20.0% sequential decrease. The decreases were mainly due to fewer leased hotels opened and in the pipeline in the first quarter of 2015.

Loss from operations for the first quarter of 2015 was RMB10.8 million (US$1.7 million), compared to loss from operations of RMB19.8 million (US$3.2 million) in the first quarter of 2014 and income from operations of RMB48.8 million (US$7.9 million) in the previous quarter. Excluding share-based compensation expenses, adjusted income from operations (non-GAAP) for the first quarter of 2015 was RMB1.6 million (US$0.3 million), compared to adjusted loss from operation (non-GAAP) of RMB12.9 million (US$2.1 million) for the first quarter of 2014 and adjusted income from operation (non-GAAP) of RMB51.0 million (US$8.2 million) for the previous quarter. The adjusted operating margin (non-GAAP), defined as adjusted income from operations as percentage of net revenues, for the first quarter of 2015 was 0.1%, compared with -1.3% in the first quarter of 2014. The improved adjusted operating margin (non-GAAP) was mainly due to the increased proportion of revenues from manachised and franchised hotels, which are high-margin businesses.

Net loss attributable to China Lodging Group, Limited for the first quarter of 2015 was RMB7.0 million (US$1.1 million), compared to net loss attributable to China Lodging Group, Limited of RMB13.3 million (US$2.1 million) in the first quarter of 2014 and net income attributable to China Lodging Group, Limited of RMB46.8 million (US$7.5 million) in the previous quarter. Excluding share-based compensation expenses, adjusted net income attributable to China Lodging Group, Limited (non-GAAP) for the first quarter of 2015 was RMB5.4 million (US$0.9 million), compared to adjusted net loss attributable to China Lodging Group, Limited (non-GAAP) of RMB6.4 million (US$1.0 million) in the first quarter of 2014 and adjusted net income attributable to China Lodging Group, Limited (non-GAAP) of RMB49.0 million (US$7.9 million) in the previous quarter.

Basic and diluted loss per share/ADS. For the first quarter of 2015, basic and diluted loss per share were RMB0.03 (US$0.004); basic and diluted loss per ADS were RMB0.11 (US$0.02). For the first quarter of 2015, excluding share-based compensation expenses, adjusted basic and diluted earnings per share (non-GAAP) were RMB0.02 (US$0.003); adjusted basic and diluted earnings per ADS (non-GAAP) were RMB0.09 (US$0.01).

EBITDA (non-GAAP) for the first quarter of 2015 was RMB148.8 million (US$24.0 million), compared with RMB111.7 million (US$18.0 million) in the first quarter of 2014 and RMB204.0 million (US$32.9 million) in the previous quarter. Excluding share-based compensation expenses, adjusted EBITDA (non-GAAP) for the first quarter of 2015 was RMB161.2 million (US$26.0 million), compared with RMB118.6 million (US$19.1 million) for the first quarter of 2014 and RMB206.2 million (US$33.2 million) for the previous quarter, representing a 35.8% year-over-year increase and 21.8% sequential decrease. Adjusted EBITDA margin (non-GAAP), defined as adjusted EBITDA as percentage of net revenues, was 13.3%, improving from 11.5% in the first quarter of 2014.

Hotel income (non-GAAP), which is the difference between net revenues and hotel operating costs, was RMB151.7 million (US$24.5 million) for the first quarter of 2015, compared with RMB117.0 million (US$18.8 million) in the first quarter of 2014 and RMB247.3 million (US$39.9 million) in the previous quarter. During the first quarter of 2015, the hotel income from the mature leased hotels (in operation for at least 6 months) was RMB14.8 million (US$2.4 million), and the hotel loss from the new leased hotels (in operation for less than 6 months) was RMB20.2 (US$3.2 million). The hotel income from the manachised and franchised hotels was RMB157.1 million (US$25.3 million) during the first quarter of 2015.

Cash flow. Operating cash inflow for the first quarter of 2015 was RMB184.9 million (US$29.8 million). Investing cash outflow for the first quarter of 2015 was RMB330.9 million (US$53.4 million).

Cash and cash equivalents. As of March 31, 2015, the Company had a total balance of cash and cash equivalents of RMB663.2 million (US$107.0 million).

Debt financing. As of March 31, 2015, the Company had a total credit facility of RMB898.3 million available and had not drawn down any of the credit facility.

Guidance for Second Quarter of 2015

For the second quarter of 2015, the Company expects net revenues to grow 13% to 16% year-over-year.

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

Recent Development

In March, China Lodging Group received antitrust approval for the proposed transaction between Accor and the Company. The interim management period started from April 1st, 2015.

In April, China Lodging Group announced its first share repurchase program. Under the program, the Company is authorized to repurchase through open market its own outstanding ADSs with an aggregate value of up to US$40 million, depending on market conditions and other factors, as well as in accordance with relevant rules under United States securities regulations.

Conference Call

China Lodging Group's management will host a conference call at 9 p.m. ET, Thursday, May 14, 2015 (or 9 a.m. on Friday, May 15, 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 2896 8713. 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 May 21, 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 2896 8713.

The conference call will also be webcast live over the Internet and can be accessed by all interested parties at the Company's website, 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; adjusted EBITDA margin 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. 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. 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=RMB6.1990 on March 31, 2015 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, 2014 March 31, 2015  
  RMB RMB US$
  (in thousands)
ASSETS      
Current assets:      
 Cash and cash equivalents  808,865  663,150  106,977
 Short-term investments  26,615  40,408  6,518
 Accounts receivable, net  89,243  90,318  14,570
 Amounts due from related parties  16,293  17,545  2,830
 Prepaid rent  385,158  391,652  63,180
 Inventories  29,882  29,087  4,692
 Other current assets  160,582  152,179  24,549
 Deferred tax assets  80,026  80,026  12,910
 Total current assets  1,596,664  1,464,365  236,226
       
Property and equipment, net  3,907,343  3,934,551  634,708
Intangible assets, net  104,537  112,786  18,194
Long-term investments  229,005  266,650  43,015
Goodwill  64,654  64,654  10,430
Other assets  197,233  202,981  32,744
Deferred tax assets  83,470  83,470  13,465
Total assets  6,182,906  6,129,457  988,782
       
LIABILITIES AND EQUITY      
Current liabilities:      
 Accounts payable  640,691  548,633  88,503
 Amounts due to a related party  6,403  6,248  1,008
 Salary and welfare payables  186,051  115,655  18,657
 Deferred revenue  514,268  514,579  83,010
 Accrued expenses and other current liabilities  313,017  373,674  60,280
 Income tax payable  59,630  22,712  3,664
 Deferred tax liabilities  701  701  113
 Total current liabilities  1,720,761  1,582,202  255,235
       
Deferred rent  830,414  861,869  139,034
Deferred revenue  155,395  162,347  26,189
Amounts due to a related party  4,083  4,083  659
Other long-term liabilities  215,762  235,302  37,958
Deferred tax liabilities  37,778  37,778  6,094
Total liabilities  2,964,193  2,883,581  465,169
       
Equity:      
 Ordinary shares  184  184  30
 Additional paid-in capital  2,381,568  2,396,225  386,550
 Retained earnings  847,220  840,227  135,542
 Accumulated other comprehensive income (loss)  (12,008)  8,509  1,373
Total China Lodging Group, Limited shareholders' equity  3,216,964  3,245,145  523,495
 Noncontrolling interest  1,749  731  118
Total equity  3,218,713  3,245,876  523,613
Total liabilities and equity  6,182,906  6,129,457  988,782
 
China Lodging Group, Limited 
Unaudited Condensed Consolidated Statements of Comprehensive Income
  Quarter Ended      
  March 31, 2014 December 31, 2014 March 31, 2015
  RMB RMB RMB US$
  (in thousands, except per share and per ADS data)
Revenues:        
 Leased hotels  959,056  1,160,852  1,055,541  170,276
 Manachised and franchised hotels  138,752  212,059  226,283  36,503
Total revenues  1,097,808  1,372,911  1,281,824  206,779
 Less: business tax and related surcharges  (63,789)  (76,674)  (71,454)  (11,527)
Net revenues  1,034,019  1,296,237  1,210,370  195,252
         
Operating costs and expenses:        
 Hotel operating costs:        
 Rents  (365,999)  (414,525)  (432,697)  (69,801)
 Utilities  (100,794)  (83,723)  (108,454)  (17,495)
 Personnel costs  (182,379)  (210,210)  (207,650)  (33,498)
 Depreciation and amortization   (129,474)  (152,386)  (156,417)  (25,233)
 Consumables, food and beverage   (99,070)  (121,754)  (105,675)  (17,047)
 Others  (39,266)  (66,328)  (47,731)  (7,700)
 Total hotel operating costs  (916,982)  (1,048,926)  (1,058,624)  (170,774)
 Selling and marketing expenses  (31,394)  (65,179)  (45,828)  (7,393)
 General and administrative expenses   (61,344)  (102,985)  (77,942)  (12,573)
 Pre-opening expenses  (48,023)  (43,246)  (34,593)  (5,580)
Total operating costs and expenses  (1,057,743)  (1,260,336)  (1,216,987)  (196,320)
 Other operating income (expense), net  3,879  12,947  (4,152)  (669)
Income (loss) from operations  (19,845)  48,848  (10,769)  (1,737)
Interest income  4,653  7,872  3,671  592
Interest expense  (408)  (173)  (173)  (28)
Other income (expense), net  (63)  (417)  (1,030)  (166)
Foreign exchange gain (loss)  (242)  (17)  151  24
Income (loss) before income taxes  (15,905)  56,113  (8,150)  (1,315)
Income tax benefit (expense)  2,791  (8,755)  934  151
Net income (loss)  (13,114)  47,358  (7,216)  (1,164)
Less: net loss (income) attributable to noncontrolling interests  (220)  (517)  223  36
Net income (loss) attributable to China Lodging Group, Limited  (13,334)  46,841  (6,993)  (1,128)
Other comprehensive income (loss)        
Unrealized securities holding gains (loss), net of tax  --   (30,847)  22,429  3,618
Foreign currency translation adjustments, net of tax   602  (1,126)  (1,912)  (308)
Comprehensive income (loss)  (12,512)  15,385  13,301  2,146
Comprehensive loss (income) attributable to the noncontrolling interest  (220)  (517)  223  36
Comprehensive income (loss) attributable to China Lodging Group, Limited  (12,732)  14,868  13,524  2,182
         
Earnings (loss) per share:        
 Basic  (0.05)  0.19  (0.03)  (0.004)
 Diluted  (0.05)  0.18  (0.03)  (0.004)
         
Earnings (loss) per ADS:        
 Basic  (0.22)  0.75  (0.11)  (0.02)
 Diluted  (0.22)  0.74  (0.11)  (0.02)
         
Weighted average number of shares used in computation:        
 Basic  247,955  249,642  251,042  251,042
 Diluted  247,955  253,906  251,042  251,042
 
China Lodging Group, Limited 
Unaudited Condensed Consolidated Statements of Cash Flows
  Quarter Ended
  March 31, 2014 December 31, 2014 March 31, 2015
  RMB RMB RMB US$
  (in thousands)
Operating activities:        
 Net income (loss)  (13,114)  47,358  (7,216)  (1,164)
 Adjustments to reconcile net income to net cash provided by operating activities:        
 Share-based compensation  6,932  2,199  12,376  1,996
 Depreciation and amortization  132,085  156,096  160,213  25,845
 Deferred taxes  --   (42,391)  (7,476)  (1,206)
 Bad debt expenses  128  3,022  1,186  191
 Deferred rent  42,677  58,172  32,979  5,319
 Gain from disposal of property and equipment  (1,511)  (522)  --   -- 
 Impairment loss  --   13,868  --   -- 
 Investment loss  428  898  1,455  235
 Excess tax benefit from share-based compensation  (5,319)  (2,867)  (1,197)  (193)
         
 Changes in operating assets and liabilities, net of effect of acquisitions:        
 Accounts receivable  (15,849)  9,119  (2,232)  (360)
 Prepaid rent  (9,001)  (13,353)  (6,494)  (1,048)
 Inventories  3,043  2,876  795  128
 Amounts due from related parties  (3,140)  --   --   -- 
 Other current assets  3,714  11,669  6,458  1,042
 Other assets  (2,606)  (6,861)  (5,748)  (927)
 Accounts payable  990  4,045  21,390  3,451
 Amounts due to a related party  535  (554)  (155)  (25)
 Salary and welfare payables  (44,312)  83,441  (70,396)  (11,356)
 Deferred revenue  39,737  63,235  7,262  1,172
 Accrued expenses and other current liabilities  7,281  24,380  59,689  9,629
 Income tax payable and receivable  (25,043)  17,693  (37,536)  (6,055)
 Other long-term liabilities  12,547  25,949  19,588  3,160
Net cash provided by operating activities   130,202  457,472  184,941  29,834
         
Investing activities:        
 Purchases of property and equipment  (333,008)  (219,024)  (290,967)  (46,938)
 Purchases of intangibles  (2,352)  (5,629)  (3,384)  (546)
 Amount received as a result of government zoning  6,553  --   1,000  161
 Acquisitions, net of cash received  (4,972)  (2,160)  (13,316)  (2,148)
 Proceeds from disposal of subsidiary and branch  --   1,000  --   -- 
 Purchases of long-term investments  (30,000)  (14,789)  (16,500)  (2,662)
 Payment for shareholder loan to joint venture  --   (734)  (1,252)  (202)
 Proceeds from maturity/sale of long-term investments  --   4,345  2,513  405
 Purchases of short-term investments  --   (19,710)  (10,000)  (1,613)
 Proceeds from sales of short-term investments  --   55,499  1,001  162
 Decrease in restricted cash  1,562  --   --   -- 
Net cash used in investing activities  (362,217)  (201,202)  (330,905)  (53,381)
         
Financing activities:        
 Net proceeds from issuance of ordinary shares upon exercise of option  6,451  12,624  2,000  323
 Proceeds from short-term debt  300,000  --   --   -- 
 Repayment of short-term debt  --   (300,000)  --   -- 
 Repayment of funds advanced from noncontrolling interest holders  (240)  (340)  (240)  (39)
 Acquisition of noncontrolling interest  --   (2,042)  --   -- 
 Contribution from noncontrolling interest holders  --   (7,000)  --   -- 
 Dividend paid to noncontrolling interest holders  (841)  (1,333)  (796)  (128)
 Excess tax benefit from share-based compensation  5,319  2,867  1,197  193
Net cash provided by (used in) financing activities  310,689  (295,224)  2,161  349
         
Effect of exchange rate changes on cash and cash equivalents  602  (1,703)  (1,912)  (308)
         
Net increase (decrease) in cash and cash equivalents  79,276  (40,657)  (145,715)  (23,506)
Cash and cash equivalents at the beginning of the period  397,435  849,522  808,865  130,483
Cash and cash equivalents at the end of the period  476,711  808,865  663,150  106,977
 
China Lodging Group, Limited 
Unaudited reconciliation of GAAP and Non-GAAP Results
  Quarter Ended March 31, 2015
  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  1,058,624 87.5%  1,675 0.1%  1,056,949 87.4%
Selling and marketing expenses  45,828 3.8%  280 0.0%  45,548 3.8%
General and administrative expenses  77,942 6.4%  10,421 0.9%  67,521 5.5%
Pre-opening expenses  34,593 2.9%  --  0.0%  34,593 2.9%
Total operating costs and expenses  1,216,987 100.6%  12,376 1.0%  1,204,611 99.6%
Income (loss) from operations  (10,769) -0.9%  12,376 1.0%  1,607 0.1%
             
  Quarter Ended March 31, 2015
  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  170,774 87.5%  270 0.1%  170,504 87.4%
Selling and marketing expenses  7,393 3.8%  45 0.0%  7,348 3.8%
General and administrative expenses  12,573 6.4%  1,681 0.9%  10,892 5.5%
Pre-opening expenses  5,580 2.9%  --  0.0%  5,580 2.9%
Total operating costs and expenses  196,320 100.6%  1,996 1.0%  194,324 99.6%
Income (loss) from operations  (1,737) -0.9%  1,996 1.0%  259 0.1%
             
  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 (loss) from operations  48,848 3.8%  2,199 0.2%  51,047 4.0%
             
  Quarter Ended March 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  916,982 88.7%  1,350 0.1%  915,632 88.6%
Selling and marketing expenses  31,394 3.0%  163 0.0%  31,231 3.0%
General and administrative expenses  61,344 5.9%  5,419 0.5%  55,925 5.4%
Pre-opening expenses  48,023 4.6%  --  0.0%  48,023 4.6%
Total operating costs and expenses  1,057,743 102.2%  6,932 0.6%  1,050,811 101.6%
Income (loss) from operations  (19,845) -1.9%  6,932 0.6%  (12,913) -1.3%
 
China Lodging Group, Limited 
 Unaudited reconciliation of GAAP and Non-GAAP Results 
  Quarter Ended
  March 31, 2014 December 31, 2014 March 31, 2015  
  RMB RMB RMB US$
  (in thousands, except per share and per ADS data)
         
Net income (loss) attributable to China Lodging Group, Limited (GAAP)  (13,334)  46,841  (6,993)  (1,128)
Share-based compensation expenses  6,932  2,199  12,376  1,996
Adjusted net income (loss) attributable to China Lodging Group, Limited (non-GAAP)  (6,402)  49,040  5,383  868
         
Earnings (loss) per share (GAAP)        
 Basic  (0.05)  0.19  (0.03)  (0.004)
 Diluted  (0.05)  0.18  (0.03)  (0.004)
         
Earnings (loss) per ADS (GAAP)        
 Basic  (0.22)  0.75  (0.11)  (0.02)
 Diluted  (0.22)  0.74  (0.11)  (0.02)
         
Adjusted earnings (loss) per share (non-GAAP)        
 Basic  (0.03)  0.20  0.02  0.003
 Diluted  (0.03)  0.19  0.02  0.003
         
Adjusted earnings (loss) per ADS (non-GAAP)        
 Basic  (0.10)  0.79  0.09  0.01
 Diluted  (0.10)  0.77  0.09  0.01
         
Weighted average number of shares used in computation        
 Basic  247,955  249,642  251,042  251,042
 Diluted  247,955  253,906  251,042  251,042
         
  Quarter Ended
  March 31, 2014 December 31, 2014 March 31, 2015  
  RMB RMB RMB US$
  (in thousands)
         
Net income (loss) attributable to China Lodging Group, Limited (GAAP)  (13,334)  46,841  (6,993)  (1,128)
Interest income  (4,653)  (7,872)  (3,671)  (592)
Interest expenses  408  173  173  28
Income tax expense (benefit)  (2,791)  8,755  (934)  (151)
Depreciation and amortization  132,085  156,096  160,213  25,845
EBITDA (non-GAAP)  111,715  203,993  148,788  24,002
Share-based Compensation  6,932  2,199  12,376  1,996
Adjusted EBITDA (non-GAAP)  118,647  206,192  161,164  25,998
         
  Quarter Ended
  March 31, 2014 December 31, 2014 March 31, 2015  
  RMB RMB RMB US$
  (in thousands)
         
Net revenues (GAAP)  1,034,019  1,296,237  1,210,370  195,252
Less: Hotel operating costs  (916,982)  (1,048,926)  (1,058,624)  (170,774)
Hotel income (non-GAAP)  117,037  247,311  151,746  24,478
     
  China Lodging Group, Limited  
Operational Data       
  As of     
  March 31,  December 31,  March 31, 
  2014 2014 2015
Total hotels in operation:  1,530  1,995  2,177
 Leased hotels  575  611  617
 Manachised hotels  944  1,376  1,533
 Franchised hotels  11  8  27
Total hotel rooms in operation  164,192  209,955  227,542
 Leased hotels  67,432  72,335  74,180
 Manachised hotels  95,465  136,689  150,782
 Franchised hotels  1,295  931  2,580
Number of cities  258  300 314
       
       
       
  For the quarter ended
  March 31,  December 31,  March 31, 
  2014 2014 2015
Occupancy rate (as a percentage)      
 Leased hotels 84.5% 87.2% 82.7%
 Manachised hotels 86.3% 86.2% 81.1%
 Franchised hotels N/A N/A 66.1%
 Blended 85.5% 86.5% 81.6%
Average daily room rate (in RMB)      
 Leased hotels 179 190 182
 Manachised hotels 165 169 161
 Franchised hotels N/A N/A 174
 Blended 171 176 168
RevPAR (in RMB)      
 Leased hotels 151 166 150
 Manachised hotels 143 145 131
 Franchised hotels N/A N/A 115
 Blended 146 153 137
       
       
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  
  March 31,   
  2014 2015  
Total Number of hotels  1,280  1,280  
 Leased hotels  527  527  
 Manachised hotels  753  753  
Occupancy rate (as a percentage) 88.1% 84.6%  
Average daily room rate (in RMB)  172  171  
RevPAR (in RMB)  152  145  
     
Hotel breakdown by segment    
     
  Number of hotels in operation
  Net added  As of 
  in Q1 2015 March 31, 2015
Economy hotels  154  1,973
 HanTing Hotel  90  1,738
 Leased hotels  1  503
 Manachised hotels  89  1,235
 Hi Inn  31  189
 Leased hotels  --   41
 Manachised hotels  25  142
 Franchised hotels  6  6
 Elan Hotel  33  46
 Manachised hotels  29  42
 Franchised hotels  4  4
Midscale and upscale hotels  28  204
 JI Hotel  13  130
 Leased hotels  4  66
 Manachised hotels  9  64
 Starway Hotel  14  69
 Leased hotels  1  4
 Manachised hotels  4  48
 Franchised hotels  9  17
 Joya Hotel  --   3
 Leased hotels  --   2
 Manachised hotels  --   1
 Manxin Hotels & Resorts  1  2
 Leased hotels  --   1
 Manachised hotels  1  1
Total  182  2,177
 
Same-hotel operational data by segment
  Number of hotels in operation Same-hotel RevPAR Same-hotel ADR Same-hotel Occupancy
  As of For the quarter ended For the quarter ended For the quarter ended
  March 31, March 31, March 31, March 31,
  2014 2015 2014 2015 2014 2015 2014 2015
Economy hotels  1,207  1,207 148 139 167 164 89% 85%
 Leased hotels  488  488 149 141 170 167 87% 84%
 Manachised and franchised hotels  719  719 147 137 164 161 89% 85%
Midscale hotels  73  73 214 225 267 277 80% 81%
 Leased hotels  39  39 233 245 282 295 83% 83%
 Manachised hotels  34  34 187 194 243 249 77% 78%
Total  1,280  1,280 152 145 172 171 88% 85% 
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