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Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	China Lodging Group, Ltd
Entity Central Index Key	0001483994
Document Type	6-K
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Trading Symbol	HTHT

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Current assets:
Cash and cash equivalents	$ 439,629	¥ 2,980,375	¥ 3,235,007
Restricted cash	68,960	467,500	500
Accounts receivable, net of allowance of RMB11,424 and RMB10,122 as of December 31, 2016 and June 30, 2017, respectively	24,152	163,737	141,649
Loan receivables	9,719	65,885	22,410
Amounts due from related parties	18,335	124,301	98,453
Prepaid rent	74,115	502,447	446,127
Inventories	4,903	33,239	21,606
Other current assets	35,418	240,112	208,929
Total current assets	675,231	4,577,596	4,174,681
Property and equipment, net	658,320	4,462,948	3,710,468
Intangible assets, net	266,456	1,806,383	342,694
Land use rights	21,068	142,826	145,521
Long-term investments, including marketable securities measured at fair value of RMB204,945 and RMB146,633 as of December 31, 2016 and June 30, 2017, respectively	189,210	1,282,714	1,064,321
Goodwill	315,181	2,136,710	171,504
Loan receivables	1,011	6,856	7,269
Other assets	50,988	345,655	200,492
Deferred tax assets	35,667	241,795	176,414
Total assets	2,213,132	15,003,483	9,993,364
Current liabilities:
Short-term debt	23,983	162,586	298,291
Long-term debt, current portion	20	135
Accounts payable	88,553	600,330	584,731
Amounts due to related parties	1,417	9,606	11,058
Salary and welfare payables	36,336	246,335	274,259
Deferred revenue	117,894	799,238	749,793
Accrued expenses and other current liabilities	157,212	1,065,785	895,837
Income tax payable	28,784	195,137	152,112
Total current liabilities	454,199	3,079,152	2,966,081
Long-term debt	539,590	3,658,041
Deferred rent	183,248	1,242,292	1,023,843
Deferred revenue	24,669	167,241	166,963
Other long-term liabilities	51,668	350,273	323,991
Deferred tax liabilities	67,671	458,760	96,329
Total liabilities	1,321,045	8,955,759	4,577,207
Commitments and contingencies (Note 13)
Equity:
Ordinary shares (US$0.0001 par value per share; 8,000,000,000 shares authorized; 281,379,130 and 282,323,910 shares issued as of December 31, 2016 and June 30, 2017, and 278,282,366 and 279,227,146 shares outstanding as of December 31, 2016 and June 30, 2017, respectively)	30	204	204
Treasury shares (3,096,764 and 3,096,764 shares as of December 31 2016 and June 30, 2017, respectively)	(15,832)	(107,331)	(107,331)
Additional paid-in capital	553,671	3,753,504	3,699,056
Retained earnings	346,628	2,349,896	1,812,174
Accumulated other comprehensive (loss) income	4,830	32,743	(4,503)
Total China Lodging Group, Limited shareholders' equity	889,327	6,029,016	5,399,600
Noncontrolling interest	2,760	18,708	16,557
Total equity	892,087	6,047,724	5,416,157
Total liabilities and equity	$ 2,213,132	¥ 15,003,483	¥ 9,993,364

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands	Jun. 30, 2017 $ / shares	Jun. 30, 2017 CNY (¥) shares	Dec. 31, 2016 $ / shares	Dec. 31, 2016 CNY (¥) shares
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance \| ¥		¥ 10,122		¥ 11,424
Long-term investments, marketable securities measured at fair value \| ¥		¥ 146,633		¥ 204,945
Ordinary shares, par value (in dollars per share) \| $ / shares	$ 0.0001		$ 0.0001
Ordinary shares, shares authorized		8,000,000,000		8,000,000,000
Ordinary shares, shares issued		282,323,910		281,379,130
Ordinary shares, shares outstanding		279,227,146		278,282,366
Treasury stock, shares		3,096,764		3,096,764

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($) $ / shares shares	Jun. 30, 2017 CNY (¥) ¥ / shares shares	Jun. 30, 2016 CNY (¥) ¥ / shares shares
Revenues:
Leased and owned hotels	$ 408,094	¥ 2,766,593	¥ 2,531,497
Manachised and franchised hotels	117,551	796,914	669,934
Others	2,770	18,780	9,622
Total revenues	528,415	3,582,287	3,211,053
Less: Business tax and related taxes \| ¥			116,149
Net revenues	528,415	3,582,287	3,094,904
Operating costs and expenses:
Hotel operating costs	375,737	2,547,232	2,417,871
Other operating costs	837	5,672	3,029
Selling and marketing expenses	11,731	79,530	69,119
General and administrative expenses	44,405	301,032	225,475
Pre-opening expenses	9,919	67,246	35,390
Total operating costs and expenses	442,629	3,000,712	2,750,884
Other operating (expenses) income, net	4,200	28,474	(9,878)
Income from operations	89,986	610,049	334,142
Interest income	5,919	40,124	25,273
Interest expense	(2,689)	(18,228)	(6,608)
Other income, net	14,952	101,361	125,385
Foreign exchange gain (loss)	(1,468)	(9,955)	4,340
Income before income taxes	106,700	723,351	482,532
Income tax expense	(26,924)	(182,526)	(105,170)
Income (loss) from equity method investments	(831)	(5,632)	145
Net income	78,945	535,193	377,507
Less: net (loss) attributable to noncontrolling interest	(373)	(2,529)	(7,381)
Net income attributable to China Lodging Group, Limited	79,318	537,722	384,888
Other comprehensive income
Unrealized securities holding gains (loss), net of tax of (6,173) and (3,168) for six-month period ended June 30, 2016 and 2017	(704)	(4,775)	2,776
Reclassification of realized gains to net income, net of tax	(779)	(5,282)	(67,921)
Foreign currency translation adjustments, net of tax of nil for six-month period ended June 30, 2016 and 2017	6,978	47,303	(4,169)
Comprehensive income	84,440	572,439	308,193
Comprehensive (loss) attributable to the noncontrolling interest	(373)	(2,529)	(7,381)
Comprehensive income attributable to China Lodging Group, Limited	$ 84,813	¥ 574,968	¥ 315,574
Earnings per share:
Basic (in RMB and dollars per share) \| (per share)	$ 0.28	¥ 1.93	¥ 1.41
Diluted (in RMB and dollars per share) \| (per share)	$ 0.28	¥ 1.87	¥ 1.37
Weighted average number of shares used in computation:
Basic (in shares)	278,785,660	278,785,660	272,932,730
Diluted (in shares)	287,813,552	287,813,552	280,097,957
ADS
Earnings per share:
Basic (in RMB and dollars per share) \| (per share)	$ 1.14	¥ 7.72	¥ 5.64
Diluted (in RMB and dollars per share) \| (per share)	$ 1.10	¥ 7.47	¥ 5.50

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized securities holding gains (loss), tax	¥ (3,168)	¥ (6,173)
Foreign currency translation adjustments, tax	¥ 0	¥ 0

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Jun. 30, 2016 CNY (¥)
Operating activities:
Net income	$ 78,945	¥ 535,193	¥ 377,507
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation	4,694	31,820	31,095
Depreciation and amortization	53,459	362,414	345,430
Deferred taxes	301	2,039	(3,789)
Bad debt expenses	150	1,014	846
Deferred rent	9,340	63,322	52,635
Loss from disposal of property and equipment	2,313	15,679	6,841
Impairment loss	6,555	44,439	39,615
(Income) Loss from equity method investments	831	5,632	(145)
Investment gain	(9,557)	(64,789)	(118,752)
Excess tax benefit from share-based compensation	(2,320)	(15,725)	(3,519)
Changes in operating assets and liabilities net of effect of acquisitions:
Accounts receivable	187	1,270	(43,020)
Prepaid rent	(4,591)	(31,127)	40,077
Inventories	(951)	(6,445)	4,321
Amounts due from related parties	(106)	(718)	(4,778)
Other current assets	(409)	(2,772)	(7,330)
Other assets	(5,223)	(35,405)	(3,958)
Accounts payable	(5,664)	(38,390)	20,546
Amounts due to related parties	(214)	(1,452)	3,929
Salary and welfare payables	(7,001)	(47,463)	(23,185)
Deferred revenue	(4,909)	(33,280)	151,748
Accrued expenses and other current liabilities	20,968	142,146	71,716
Income tax payable	5,406	36,647	20,755
Other long-term liabilities	3,019	20,469	26,414
Net cash provided by operating activities	145,223	984,518	984,999
Investing activities:
Purchases of property and equipment	(50,441)	(341,956)	(285,187)
Purchases of intangibles	(158)	(1,073)	(4,917)
Amount received as a result of government zoning			2,099
Acquisitions, net of cash received	(552,455)	(3,745,259)	136,110
Proceeds from disposal of subsidiary and branch net of cash disposed			(20,667)
Purchases of long-term investments	(43,593)	(295,526)	(123,674)
Proceeds from maturity/sale of long-term investments	18,616	126,206	10,289
Payment for shareholder loan to joint venture	(11,322)	(76,755)	(38,092)
Collection of shareholder loan from joint venture	7,154	48,500
Proceeds from maturity/sale of short-term investments			526,443
Payment for the origination of loan receivables	(7,434)	(50,400)	(33,400)
Proceeds from collection of loan receivables	1,525	10,338	14,862
Increase in restricted cash	(68,886)	(467,000)
Net cash provided by (used in) investing activities	(706,994)	(4,792,925)	183,866
Financing activities:
Net proceeds from issuance of ordinary shares upon exercise of options	976	6,618	5,241
Proceeds from short-term debt	20,133	136,488	281,719
Repayment of short-term debt	(39,497)	(267,764)
Proceeds from long-term debt	535,922	3,633,174
Funds advanced from noncontrolling interest holders	5,412	36,689	4,000
Repayment of funds advanced from noncontrolling interest holders	(247)	(1,677)	(200)
Acquisitions of noncontrolling interest	(553)	(3,750)
Contribution from noncontrolling interest holders	1,024	6,941	34,304
Dividend paid to noncontrolling interest holders	(344)	(2,330)	(1,130)
Dividend paid			(276,262)
Excess tax benefit from share-based compensation	2,320	15,725	3,519
Net cash provided by financing activities	525,146	3,560,114	51,191
Effect of exchange rate changes on cash and cash equivalents	(935)	(6,339)	8,458
Net increase (decrease) in cash and cash equivalents	(37,560)	(254,632)	1,228,514
Cash and cash equivalents at the beginning of the period	477,189	3,235,007	1,237,838
Cash and cash equivalents at the end of the period	439,629	2,980,375	2,466,352
Supplemental disclosure of cash flow information:
Interest paid, net of amounts capitalized	984	6,673	5,091
Income taxes paid	21,276	144,237	88,204
Supplemental schedule of non-cash investing and financing activities:
Purchases of property and equipment included in payables	74,304	503,727	409,560
Consideration payable for business acquisition	17,474	118,459	59,490
Purchase of intangible assets included in payables	982	6,655	10,110
Reimbursement of government zoning included in receivables	$ 398	¥ 2,700
Issuance of ordinary shares for acquisition			¥ 1,143,521

ORGANIZATION AND PRINCIPAL ACTIVITIES	6 Months Ended
ORGANIZATION AND PRINCIPAL ACTIVITIES	Jun. 30, 2017
ORGANIZATION AND PRINCIPAL ACTIVITIES
ORGANIZATION AND PRINCIPAL ACTIVITIES	1. ORGANIZATION AND PRINCIPAL ACTIVITIES China Lodging Group, Limited (the "Company") was incorporated in the Cayman Islands under the laws of the Cayman Islands on January 4, 2007. The principal business activities of the Company and its subsidiaries (the "Group") are to develop leased and owned, manachised and franchised hotels under the "Joya Hotel", "Manxin Hotel", "JI Hotel", "Starway Hotel", "HanTing Hotel", "Elan Hotel", "Hi Inn", "VUE Hotel", "Crystal Orange Hotel", "Orange Hotel Select", and "Orange Hotel" brands in the People's Republic of China ("PRC"). The Group also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in Pan-China region. Leased and owned hotels The Group leases hotel properties from property owners or purchases properties directly and is responsible for all aspects of hotel operations and management, including hiring, training and supervising the managers and employees required to operate the hotels. In addition, the Group is responsible for hotel development and customization to conform to the standards of the Group brands at the beginning of the lease or the construction, as well as repairs and maintenance, operating expenses and management of properties over the term of the lease or the land and building certificate. Under the lease arrangements, the Group typically receives rental holidays of two to six months and pays rent on a quarterly or biannual basis. Rent is typically subject to the fixed escalations of three to five percent every three to five years. The Group recognizes rental expense on a straight-line basis over the lease term. As of December 31, 2016 and June 30, 2017, the Group had 624 and 686 leased and owned hotels in operation, respectively. Manachised and franchised hotels Typically the Group enters into certain franchise and management arrangements with franchisees for which the Group is responsible for providing branding, quality assurance, training, reservation, hiring and appointing of the hotel general manager and various other support services relating to the hotel renovation and operation. Those hotels are classified as manachised hotels. Under typical franchise and management agreements, the franchisee is required to pay an initial franchise fee and ongoing franchise and management service fees, the majority of which are equal to a certain percentage of the revenues of the hotel. The franchisee is responsible for the costs of hotel development, renovation and the costs of its operations. The term of the franchise and management agreements are typically eight to ten years and are renewable upon mutual agreement between the Group and the franchisee. The Group also has some franchised hotels in which cases the Group does not provide a hotel general manager. As of December 31, 2016 and June 30, 2017, the Group had 2,471 and 2,654 manachised hotels in operation and 174 and 201 franchised hotels in operation, respectively.

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2017

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Basis of presentation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP") and applicable rules and regulations of the Securities and Exchange Commission, regarding financial reporting, and include all normal and recurring adjustments that management of the Group considers necessary for a fair presentation of its financial position and operation results. Certain information and footnote disclosures normally included in financial statements prepared in conformity with US GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these statements should be read in conjunction with the Group's consolidated financial statements as of and for the year ended December 31, 2016 included in the Group's 2016 20-F.

Basis of consolidation

The unaudited condensed consolidated financial statements include the financial statements of the Company and its majority-owned subsidiaries. All intercompany transactions and balances are eliminated on consolidation.

The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support.

The Group is deemed as the primary beneficiary of and consolidates variable interest entities when the Group has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities.

The Group evaluates its business activities and arrangements with the entities that operate the manachised and franchised hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception, therefore consolidation is not appropriate under the variable interest entity consolidation guidance.

Impairment of long-lived assets

The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets.

The Group performed a recoverability test of its long-lived assets associated with certain hotels due to the continued underperformance relative to the projected operating results, of which the carrying amount of the property and equipment exceed the future undiscounted net cash flows, and recognized an impairment loss of RMB39,615 and RMB44,439 for the six-month period ended June 30, 2016 and 2017, respectively.

Fair value of the property and equipment was determined by the Group based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected hotels' revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results.

Revenue recognition

Revenue from leased and owned hotels is derived from hotel operations, mainly including the rental of rooms, food and beverage sales and souvenir sales. Revenue is recognized when rooms are occupied and food and beverages and souvenirs are sold.

Revenues from manachised and franchised hotels are derived from franchise agreements where the franchisees are primarily required to pay (i) an initial one-time franchise fee, and (ii) continuing franchise fees, which mainly consist of (a) on-going management and service fees mainly based on a certain percentage of the room revenues of the franchised hotels, and (b) system maintenance, support fees and central reservation system usage fees. The one-time franchise fee is recognized when the manachised and franchised hotel opens for business, the fee becomes non-refundable, and the Group has fulfilled all its commitments and obligations, including the assistance to the franchisees in property design, leasehold improvement construction project management, systems installation and personnel recruiting and training. The ongoing management and service fees are recognized when the underlying service revenue is recognized by the franchisees' operations. The system maintenance, support fee and central reservation system usage fee is recognized over the period when services are provided.

In addition, the Group accounts for hotel manager fees related to the manachised hotels under the franchise program as revenues. Pursuant to the franchise agreements, the Group charges the franchisees fixed hotel manager fees to cover the manachised hotel managers' payroll, social welfare benefits and certain other out-of-pocket expenses that the Group incurs on behalf of the manachised hotels. The hotel manager fee is recognized as revenue monthly. During the six-month period ended June 30, 2016 and 2017, the hotel manager fees that were recognized as revenue were RMB 155,633 and RMB176,517, respectively

Membership fees from the Group's customer loyalty program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group's and management's experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be two to five years which reflects the expected membership retention. Revenues recognized from the customer loyalty program were RMB70,815, and RMB77,376 for the six-month period ended June 30, 2016 and 2017, respectively.

Other revenues are derived from activities other than the operation of hotel businesses, which mainly include revenues from Hua Zhu mall and the provision of IT products and services to hotels. Revenues from Hua Zhu mall are commissions charged from suppliers for goods sold through the platform and are recognized upon delivery of goods to end customers when its suppliers' obligation is fulfilled and collectability is reasonably assured. Revenues from IT products are recognized when goods are delivered and revenues from IT services are recognized when services are rendered.

Leases

A lease of which substantially all the benefits and risks incidental to ownership remain with the lessor is classified as an operating lease. All leases of the Group are currently classified as operating leases. When a lease contains rent holidays or requires fixed escalations of the minimum lease payments, the Group records the total rental expense on a straight-line basis over the initial lease term and the difference between the straight-line rental expense and cash payment under the lease is recorded as deferred rent. As of December 31, 2016 and June 30, 2017, deferred rent of RMB37,648 and RMB41,595 were recorded as other current liabilities and RMB1,023,843 and RMB1,242,292 were recorded as long-term liabilities, respectively.

Fair value

The Group defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include:

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The estimated fair value of the Group's financial instruments of which the inputs used to value are classified as Level 2 and are not reported at fair value, including cash, restricted cash, loan receivables, receivables, payables and accruals, approximates their carrying value due to their short-term nature or because the interest rate approximates market rate. Cost-method investments are presented at cost unless impaired based on the result of impairment assessment, as the investees are all private entities and their fair values are not practicable to obtain without undue cost. As of December 31, 2016 and June 30, 2017, cost-method investments were RMB172,571 and RMB246,971 respectively.

When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group measures fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates.

As of December 31, 2016 and June 30, 2017, information about inputs into the fair value measurements of the Group's assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:

Fair Value Measurements at Reporting Date Using

Date

Description

Fair
Value

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

Significant Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Year Ended December 31, 2016

Long-term available-for-sale securities

247,085

204,945

42,140

Six-month Period Ended June 30, 2017

Long-term available-for-sale securities

373,163

146,633

226,530

The following table presents the Group's assets measured at fair value on a non-recurring basis for the year ended December 31, 2016 and six-month period ended June 30, 2017:

Fair Value Measurements at Reporting Date
Using

Date

Description

Fair
Value

Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Total
Loss
for the
Period

Year Ended December 31, 2016

Property and equipment

20,706

150,533

Year Ended December 31, 2016

Long-term investments

—

3,208

Six-month Period Ended June 30, 2017

Property and equipment

12,423

44,439

As a result of reduced expectations of future cash flows from certain leased hotels, the Group determined that the hotels property and equipment with a carrying amount of RMB171,239 and RMB56,862 was not fully recoverable and consequently recorded an impairment charge of RMB150,533, and RMB44,439 for the year ended December 31, 2016, and the six-month period ended June 30, 2017 respectively. As a result of the impairment assessment, the Group determined that the long term investment with a carrying amount of RMB3,208 was impaired for the year ended December 31, 2016.

Fair value of the property and equipment as well as the reporting units was determined by the Group based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected hotels' revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. As a result, the Group has determined that the majority of the inputs used to value its long-lived assets held and used and its reporting units are unobservable inputs that fall within Level 3 of the fair value hierarchy. The revenue growth rate and the discount rate were the significant unobservable input used in the fair value measurement, which are 4% and 20%, respectively, for the year ended December 31, 2016 and the six-month period ended June 30, 2017.

Translation into United States Dollars

The financial statements of the Group are stated in RMB. Translations of amounts from RMB into United States dollars are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.7793, on June 30, 2017, as set forth in H.10 statistical release of the Federal Reserve Board. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into United States dollars at that rate on June 30, 2017, or at any other rate.

Recently issued accounting pronouncements

In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): "Scope of Modification Accounting". This update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The amendments affect any entity that changes the terms or conditions of a share-based payment award. The amendments are effective for fiscal years beginning after December 15, 2017. For the Group, the amendments are effective January 1, 2018. The Group has not made any changes to the terms or conditions of share-based payment awards but will refer to the guidance in ASU 2017-09 should that occur. The Group is currently evaluating the impact of this ASU on its consolidated financial statements.

ACQUISITIONS

6 Months Ended

Jun. 30, 2017

ACQUISITIONS

ACQUISITIONS

3. ACQUISITIONS

(i) In January 2016, the Group completed the transaction of strategic alliance with AccorHotels ("Accor"). Pursuant to the master purchase agreement, the Group acquired 100% equity interest of certain wholly-owned subsidiaries of Accor engaged in the business of owning, leasing franchising, operating and managing hotels under Accor brands in the midscale and economy market in the PRC, Taiwan and Mongolia, as well as a non-controlling stake of 28% for Accor Luxury and Upscale hotel operating platform, held by AAPC Hotel Management Limited ("AAPC LUB") in Greater China. The total consideration consists of cash consideration of RMB120,439 and consideration amounted to RMB1,143,521 which was measured at the market price of the 24,895,543 ordinary shares on the issuance date.

The net revenue and net income of the acquirees included in the consolidated statements of comprehensive income for the year ended December 31, 2016 were RMB152,595, and RMB64,047, respectively.

The following table summarizes unaudited pro forma results of operation for the year ended December 31, 2016 assuming that the acquisition occurred as of January 1, 2016. The pro forma results have been prepared for comparative purpose only based on management's best estimate and do not purport to be indicative of the results of operations which actually would have resulted had the acquisition occurred as of January 1, 2016.

	Year Ended December 31, 2016
Pro forma net revenue		6,548,083
Pro forma net income		806,921

The following is a summary of the fair values of the assets acquired and liabilities assumed:

	2016			Amortization Period
Current assets		207,396
Property and equipment		311,045		5 - 30 years
Favorable leases		3,009		remaining lease terms
Master brand agreement		192,000		Indefinite
Land use rights		149,668		remaining contracts terms
Long-term investments		417,604
Goodwill		63,160
Other noncurrent assets		1,664
Current liabilities		(38,634	)
Deferred tax liabilities		(42,952	)

Total		1,263,960

(ii) The Group acquired 100% of the equity interest of Crystal Orange Hotel Holdings Limited (the "Crystal Orange") on May 25, 2017.

The total purchase price consisted of the following:

	Amount(RMB'000)
Initial Consideration		3,718,673
Pre-combination compensation cost		50,000
Closing Adjustment			*
Total purchase price		3,768,673


*	Closing adjustment is determined by several complex adjustment clauses relating net cash, net working capital amount and income tax payable amount of Crystal Orange as of closing date, which were defined in the share purchase agreement. The closing adjustment amount is immaterial based on the preliminary result, while not finalized till this report date.

Under the acquisition method of accounting, the net assets of Crystal Orange acquired pursuant to the acquisition were recorded at their fair values as of the date of the closing of the acquisition based on a preliminary purchase price allocation report prepared by a third-party appraiser. The following is a summary of the fair values of the assets acquired and liabilities assumed based on the preliminary purchase price allocation report:

	May 25, 2017			Amortization Period
Current assets		137,314
Property and equipment		842,102		3 - 20 years
Favorable leases		97,480		remaining lease terms
Franchise agreement		63,000		remaining contract terms
Brand Name		1,305,699		indefinite life
Goodwill		1,965,206
Other noncurrent assets		130,813
Current liabilities		(222,205	)
Noncurrent liabilities		(179,985	)
Deferred tax liabilities		(366,545	)
Noncontrolling interest		(4,206	)

Total		3,768,673

Goodwill was recognized as a result of expected synergies from combining operations of the Group and acquired business and other intangible assets that don't qualify for separate recognition. Goodwill is not amortized and is not deductible for tax purposes.

The net revenue and net income of the acquirees included in the consolidated statements of operations for the six-month period ended June 30, 2017 were RMB 119,050, and RMB 14,029 respectively.

The following table summarizes unaudited pro forma results of operation for the year ended December 31, 2016 and six-month period ended June 30, 2017 assuming that the acquisition occurred as of January 1, 2016. The pro forma results have been prepared for comparative purpose only based on management's best estimate and do not purport to be indicative of the results of operations which actually would have resulted had the acquisition occurred as of January 1, 2016.

	Year Ended December 31, 2016		Six-month Period Ended June 30, 2017
Pro forma net revenue		7,473,851		3,983,463
Pro forma net income		857,213		577,878

As the total cost incurred by Crystal Orange directly attributable to the business combination includes RMB256.3 million related to the consultation services agreements and option cancellation agreement and transaction cost of RMB 46 million are non-recurring in nature, they were eliminated from the calculation of pro forma net income.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

PROPERTY AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2017

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

4. PROPERTY AND EQUIPMENT, NET

Property and equipment, net consist of the following:

	December 31, 2016			June 30, 2017
Cost:
Buildings		255,646			255,646
Leasehold improvements		5,563,815			6,319,366
Furniture, fixtures and equipment		925,174			1,036,578
Motor vehicles		820			820

		6,745,455			7,612,410
Less: Accumulated depreciation		(3,196,496	)		(3,427,329	)

		3,548,959			4,185,081
Construction in progress		161,509			277,867

Property and equipment, net		3,710,468			4,462,948

Depreciation expense was RMB334,735 and RMB349,008 for the six-month periods ended June 30, 2016 and 2017, respectively.

The Group occasionally demolishes certain leased hotels due to local government zoning requirements, which typically results in receiving compensation from the government.

In 2016, the Group demolished two leased hotels due to local government zoning requirements. As a result, the Group wrote off property and equipment of RMB9,905 associated with these hotels and recognized loss of RMB7,205 as other operating loss, which is net of RMB2,700 has been recorded as a receivable in other current assets as of December 31, 2016.

As of June 30, 2017, the Group has been formally notified by local government authorities that four additional leased hotels of the Group will likely be demolished due to local government zoning requirements. The aggregate carrying amount of property and equipment at the associated hotels was RMB 14,605 as of June 30, 2017. Neither of the associated hotels has recorded intangible assets or goodwill. The Group has not recognized any impairment as expected cash flows from the hotels' operations prior to demolition and expected amounts to be received as a result of the demolition will likely exceed the carrying value of such assets. The Group estimated amounts to be received based on the relevant PRC laws and regulations, terms of the lease agreements, and the prevailing market practice.

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE

6 Months Ended

Jun. 30, 2017

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE

5. INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE

Intangible assets, net consist of the following:

	As of
	December 31, 2016			June 30, 2017
Intangible assets with indefinite life:
Brand name		28,600			1,334,299
Master brand agreement (Note 3)		192,000			192,000
Intangible assets with definite life:
Manachised & Franchise hotel agreements		11,000			74,000
Non-compete agreement		400			400
Favorable lease agreements		135,874			239,569
Purchased software		55,101			57,218

Total		422,975			1,897,486
Less: Accumulated amortization		(80,281	)		(91,103	)

Total		342,694			1,806,383

	As of
	December 31, 2016			June 30, 2017
Unfavorable lease agreements		3,924			3,924
Less: Accumulated amortization		(3,102	)		(3,167	)

Unfavorable lease agreements, net		822			757

The values of favorable lease agreements were determined based on the estimated present value of the amount the Group has avoided paying as a result of entering into the lease agreements. Unfavorable lease agreements were determined based on the estimated present value of the acquired lease that exceeded market prices and are recognized as other long-term liabilities. The value of favorable and unfavorable lease agreements is amortized using the straight-line method over the remaining lease term.

Amortization expense of intangible assets for the six-month period ended June 30, 2016 and 2017 amounted to RMB8,575 and RMB10,776, respectively.

LONG-TERM INVESTMENTS

6 Months Ended

Jun. 30, 2017

LONG-TERM INVESTMENTS

LONG-TERM INVESTMENTS

6. LONG-TERM INVESTMENTS

The long-term investments as of December 31, 2016 and June 30, 2017 were as follows:

	As of
	December 31, 2016		June 30, 2017
Available-for-sale securities:
Quanjude		159,305		146,633
Tang Palace		18,856		—
Banyan Tree		26,784		—
Cjia		42,140		226,530
Cost-method investments:
UBOX/BJ UBOX		48,220		33,822
BJ GOOAGOO/GOOAGOO		60,000		60,000
Founder Service		45,000		45,000
Qingpu		17,143		17,143
Mobike		—		69,009
Blossomhill		—		15,194
Other investments		2,208		6,803
Equity-method investments:
Sheen Star		20,862		20,862
Distrii		28,562		30,750
AAPC LUB		446,100		462,667
China Young		43,054		40,957
CREATER		100,000		101,154
Other investments		6,087		6,190

Total		1,064,321		1,282,714

Available-for-sale securities

In June 2014, the Group purchased 7,241,131 ordinary shares of China Quanjude (Group) Co., Ltd. ("Quanjude"), a top restaurant brand listed in Shenzhen Stock Exchange in China, through a private placement. The purchase price was set at RMB13.81 per ordinary share and the total purchase cost was RMB100 million. Upon the closing of the transaction described above, the Group holds approximately 2% of Quanjude's total outstanding shares.

In 2016, the Group purchased 8,430,000 ordinary shares of Hong Kong Tang Palace Food & Beverage Group ("Tang Palace"), a top restaurant brand listed in Hong Kong Stock Exchange in China, from open market for consideration of RMB16,887. As of December 31, 2016, the Group holds approximately 2% of Tang Palace's total outstanding shares. In the six-month period ended June 30, 2017, the Group sold all the 8,430,000 ordinary shares and reclassified the accumulated unrealized gain of RMB3,813 from other comprehensive income to other income accordingly.

In December 2016, the Group purchased 11,635,400 ordinary shares of Banyan Tree Holdings Limited ("Banyan Tree"), a leading, international hospitality brand that manages and develops premium resorts, hotels and spas listed in Singapore Stock Exchange in Singapore, from open market for consideration of RMB27,328. As of December 31, 2016, the Group holds approximately 2% of Banyan Tree's total outstanding shares. In January 2017, the Group purchased 3,000,000 ordinary shares of Banyan Tree from open market for consideration of RMB7,020. In April 2017, the Group sold all the 14,635,400 ordinary shares and reclassified the accumulated unrealized gain of RMB1,469 from other comprehensive income to other income accordingly.

Given the level of investments, the Group accounts for its investments in Quanjude, Tang Palace, and Banyan Tree as "available-for-sale" and measured the fair value at every period end. The unrealized holding gains and losses for available-for-sale securities are reported in other comprehensive income until realized.

In 2016, the Group sold its subsidiary- Chengjia Hotel Management Co., Ltd. to Chengjia (Shanghai) Apartment Management Co., Limited ("Cjia"), the Group's equity investee. As a result, the Group recognized a gain of RMB49,630 in other income. As of December 31, 2016, the Group had approximately 23% equity interest of Cjia and convertible note with original value of RMB51,200. In the six-month period ended June 30, 2017, the Group invested in Cjia for another two set of convertible notes totaled RMB200,300. As of June 30, 2017, the Group had approximately 23% equity interest of Cjia and convertible notes with original value of RMB251,500. The convertible notes are recorded as available-for-sale investments. The Group recognized its share of loss in Cjia of RMB15,737 in income (loss) from equity method investments for the six-month period ended June 30, 2017, which reduced the cost of equity-method investment to zero and further adjusted the carrying amount of convertible notes balance to RMB226,530 as of June 30, 2017. The remaining carrying amount of the convertible notes approximated its fair value as of June 30, 2017.

Cost-method investments:

From 2012 to 2013, the Group invested in preferred shares and convertible promissory notes of UBOX International Holdings Co., Limited ("UBOX"), a privately-held company, with the total consideration of RMB40,517. The convertible notes were subsequently converted to ordinary shares of UBOX in 2013 and 2014. As a result of restructuring of UBOX group, the investment in UBOX has been converted to the investment of ordinary shares of Beijing UBOX On-line Technology Co., Ltd. ("BJ UBOX"). The Group has additionally injected RMB7,703 to BJ UBOX in 2015. In April 2017, the Group sold 4,810,000 shares of BJ UBOX and recognized gain of RMB35,545 in other income. As of December 31, 2016 and June 30, 2017, the Group had approximately 3% and 2% equity interest of BJ UBOX, respectively. The investments were accounted for using the cost method since the Group does not have the ability to exert significant influence over the operating and financing activities of UBOX or BJ UBOX.

In January 2017, the Group purchased 1,316,205 preferred shares for consideration of US$5.0 million (equivalently RMB34,294) and invested in convertible notes with principal amount of US$5.0 million (equivalently RMB34,294) and interest rate of 8% of Mobike Ltd. ("Mobike"), a Chinese bike-sharing company. In May 2017, the Group converted the entire outstanding principal amount and accrued interest of the convertible notes into 648,559 preferred shares. As of June 30, 2017, the Group had less than 1% equity interest of Mobike. The Group accounted the investment under cost method since the Group does not have the ability to exert significant influence over Mobike.

In May 2017, the Group purchased approximately 4% equity interest of Blossom Hill Hotel Investment & Management (Kunshan) Co., Ltd ("Blossom Hill"), a Chinese hospitality brand that manages and develops premium resorts and hotels with strong features of traditional Chinese culture, for the consideration of RMB15,194. The Group accounted the investment under cost method since the Group does not have the ability to exert significant influence over Blossom Hill.

Other investments included several insignificant cost method investments in certain privately-held companies.

Equity-method investments:

In January 2016, the Group set up Shanghai Distrii Technology Development Co., Ltd. ("Distrii") together with another founder. Distrii is an office rental service company in which the Group contributed RMB35,000 and owned equity interest of 39%. In January 2017, another unrelated investor injected in Distrii which diluted the Group's share of equity interest to 32%, and afterwards the Group sold 6% of Distrii's equity interest for consideration of RMB18,000 and recognized gain of RMB22,682 in other income. As of June 30, 2017, the Group had approximately 26% equity interest of Distrii. The Group accounted for the investment in Distrii under equity-method as the Group has the ability to exert significant influence.

Other investments included several insignificant equity investments in certain privately-held companies.

GOODWILL

6 Months Ended

Jun. 30, 2017

GOODWILL

GOODWILL

7. GOODWILL

The changes in the carrying amount of goodwill for the year ended December 31, 2016 and June 30, 2017 were as follows:

	Gross Amount		Accumulated Impairment Loss			Net Amount
Balance at December 31, 2015		112,785		(4,441	)		108,344
Increase in goodwill related to acquisitions		63,160		—			63,160

Balance at December 31, 2016		175,945		(4,441	)		171,504

Increase in goodwill related to acquisitions (Note 3)		1,965,206		—			1,965,206

Balance at June 30, 2017		2,141,151		(4,441	)		2,136,710

DEBT	6 Months Ended
DEBT	Jun. 30, 2017
DEBT
DEBT	8. DEBT In April 2017, the Group entered into a three-year bank loan contract, under which the Group can borrow up to US$40 million (equivalently RMB270,976) for the period ended September 30, 2017, and the Group had a RMB307,000 deposit pledged accordingly. The interest rate of this borrowing is based on the three-month Libor on draw-down date plus 1.4%. In the six-month period ended June 30, 2017, the Group had drawn down US$40 million (equivalently RMB270,976) under this contract and repaid nil. As of June 30, 2017, a portion of loan of US$0.02 million (equivalently RMB135) was recorded under "short-term debt" and the carrying amount of the remaining long term loan was US$39.98 million (equivalently RMB270,841). The weighted average interest rate for borrowings drawn under such credit facility was 2.57% for the six-month period ended June 30, 2017. In May 2017, the Group entered into an US$250 million (equivalently RMB1,693,600) term facility and US$250 million (equivalently RMB1,693,600) revolving credit facility agreement with several banks. The US$250 million (equivalently RMB1,693,600) revolving credit facility is available for 35 months after the date of the agreement. The interest rate on the loan is Libor plus 1.75%. There are some financial covenants including interest cover, leverage and tangible net worth related to this facility. In the six-month period ended June 30, 2017, the Group had drawn down US$500 million (equivalently RMB3,387,200) under this contract and repaid nil. As of June 30, 2017, the carrying amount of this long term loan was US$500 million (equivalently RMB3,387,200). The weighted average interest rate for the loan was 2.94% for the six-month period ended June 30, 2017. The Group is in compliance with all the financial covenants as of June 30, 2017.

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2017
INCOME TAXES
INCOME TAXES	9. INCOME TAXES The effective tax rate is based on expected income and statutory tax rates. For interim financial reporting, the Group estimates the annual tax rate based on projected taxable income for the full year and records a quarterly income tax provision in accordance with ASC No. 740-270 "Income tax—Interim reporting". As the year progresses, the Group refines the estimates of the year's taxable income as new information becomes available. This continual estimation process often results in a change to the expected effective tax rate for the year. When this occurs, the Group adjusts the income tax provision (benefit) during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual tax rate. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carryforward periods, the Group's experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more-likely-than-not threshold. The Group's ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carryforward periods provided for in the tax law. The Group's effective tax rate for the six months periods ended June 30, 2016 and 2017 was 21.8% and 25.2% respectively.

SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2017

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

10. SHARE-BASED COMPENSATION

The Group measures share-based compensation in the consolidated statements of comprehensive income based on the fair value of equity awards on the date of the grant, with compensation expenses recognized typically on a straight-line basis over the period in which the grantee is required to provide service to the Group in exchange for the equity award. The Group estimates the fair value of stock options using the binomial option pricing model. The fair value of nonvested restricted stock with service conditions or performance conditions is based on the fair market value of the underlying ordinary shares on the date of grant.

The share-based compensation expenses have been categorized as either hotel operating costs, general and administrative expenses or selling and marketing expenses, depending on the job functions of the grantees. For the six month period ended June 30, 2016 and 2017, the Group recognized share-based compensation expenses of RMB31,095 and RMB31,820, respectively, which was classified as follows:

	Six-month Period Ended June 30,
	2016		2017
Hotel operating costs		5,998		9,174
Selling and marketing expenses		515		658
General and administrative expenses		24,582		21,988

Total		31,095		31,820

During the six months period ended June 30, 2016 and 2017, the Group granted the following share-based compensation:

	Six-month Period Ended June 30,
	2016				2017
	Number of Restricted Stocks		Weighted Average Grant Date Fair Value		Number of Restricted Stocks		Weighted Average Grant Date Fair Value
			US$				US$
Restricted stocks		1,176,834		6.50		214,099		15.26

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2017

EARNINGS PER SHARE

EARNINGS PER SHARE

11. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated:

	Six-month Period Ended June 30,
	2016		2017
Net income attributable to ordinary shareholders—basic		384,888		537,722

Net income attributable to ordinary shareholders—diluted		384,888		537,722


Weighted average ordinary shares outstanding—basic		272,932,730		278,785,660
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method		7,165,227		9,027,892

Weighted average ordinary shares outstanding—diluted		280,097,957		287,813,552


Basic earnings per share		1.41		1.93


Diluted earnings per share		1.37		1.87

For the six month period ended June 30, 2016 and 2017, the Group had securities which could potentially dilute basic earnings per share in the future, but which were excluded from the computation of diluted earnings per share as their effects would have been anti-dilutive. Such outstanding securities consist of the following:

	Six-month Period Ended June 30,
	2016		2017
Outstanding employee options and nonvested restricted stocks		35,171		—

RELATED PARTY TRANSACTIONS AND BALANCES

6 Months Ended

Jun. 30, 2017

RELATED PARTY TRANSACTIONS AND BALANCES

12. RELATED PARTY TRANSACTIONS AND BALANCES

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities.

The following entities are considered to be related parties to the Group. The related parties only act as service providers and service recipients to the Group and there is no other relationship wherein the Group has the ability to exercise significant influence over the operating and financial policies of these parties. The Group is not obligated to provide any type of financial support to these related parties.

Related Party	Nature of the Party	Relationship with the Group
Ctrip.com International, Ltd. ("Ctrip")	Online travel services provider	Mr. Qi Ji is a director
Lijiang Yibang Changchunteng Hotel Co Limited ("Yibang")*	Hotel	Equity method investee of the Group
Sheen Star Group Limited ("Sheen Star")	Investment holding company	Equity method investee of the Group, controlled by Mr. Qi Ji
Shanghai Qianya Hotel Management Co., Ltd ("Qianya")	Hotels management	Investee of the Group
Accor Hotels ("Accor")	Hotel Group	Shareholder of the Group
Chengjia (Shanghai) Apartment Management Co., Ltd. ("Cjia")	Apartment Management Group	Equity method investee of the Group
Jiyuan Zhongzhou Express Hotel Co., Ltd. ("Jiyuan")	Hotel	Equity method investee of the Group
Shanghai Yechun Catering Co., Ltd. ("Yechun")	Catering Management Company	Equity method investee of the Group


*	In June 2016, the Group disposed the equity investment in Yibang, subsequent to which Yibang is no longer a related party of the Group.

(a) Related party balances

Amounts due from related parties were comprised of shareholder loans to Sheen Star, Cjia, Jiyuan and Yechun, which are short-term in nature and payable on demand, and receivable for service fee from Accor and room charges withheld by Ctrip.

	As of
	December 31, 2016		June 30, 2017
Sheen Star		37,060		37,060
Accor		4,052		4,771
Cjia		50,365		81,772
Jiyuan		3,398		665
Yechun		375		33
Ctrip		3,203		—

Total		98,453		124,301

Amounts due to related parties were comprised of the following. These payables were interest free and payable upon demand.

	As of
	December 31, 2016		June 30, 2017
Ctrip
—Payables for hotel reservation services		3,291		5,041
Qianya
—Payables for service fee		164		141
Accor
—Payables for brand use fee, reservation fee and other related service fee		6,019		3,004
Jiyuan
—Payables for cash collected on behalf		59		66
Yechun
—Payables for cash collected on behalf		1,525		1,354

Total		11,058		9,606

(b) Related party transactions

During the six-month period ended June 30, 2016 and 2017, related party transactions consisted of the following:

	Six-month Period Ended June 30,
	2016		2017
Commission expenses to Ctrip		19,815		24,682
Service fee from Yibang		292		—
Service fee to Qianya		487		—
Brand use fee, reservation fee and other related service fee to Accor		2,688		4,695
Marketing and training fee from Ctrip		3,167		6,333
Service fee from Accor		2,718		5,907
Goods sold and service provided to Cjia		—		702
Interest income from Sheen Star		2,060		—
Rental income from Cjia		—		1,450

In 2016, the Group sold its subsidiary Chengjia Hotel Management Co., Ltd. to Cjia for consideration of RMB10,000.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2017

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

13. COMMITMENTS AND CONTINGENCIES

(a) Operating lease commitments

The Group has entered into lease agreements for certain hotels which it operates. Such leases are classified as operating leases.

The Group generally is able to terminate these lease agreements by paying penalties to the lessors, in most cases up to six months of rental pursuant to the terms of the lease agreements or based on the group's past experience. Future minimum lease payments under operating lease agreements at June 30, 2017 were as follows:

Remaining of 2017			1,236,599
2018			2,393,534
2019			2,373,897
2020			2,313,127
2021			2,191,614
2022			2,060,981
2023			1,909,230
2024			1,783,423
2025			1,612,346
2026			1,409,048
Thereafter			5,091,718

Total			24,375,517

(b) Purchase Commitments

As of June 30, 2017, the Group's commitments related to leasehold improvements and installation of equipment for hotel operations was RMB120,481, which is expected to be incurred within one year.

The Group is subject to periodic legal or administrative proceedings in the ordinary course of our business. As of December 31, 2016, the Group had several cases outstanding, including lease contract terminations and disputes, and construction contract disputes. The Group believed it is probable that settlement liabilities will be involved, and therefore accrued contingencies of RMB66,234 in other operating expense based on the terms of contract, laws and regulations and latest negotiation result. In May and June 2017, the Group had settled several cases and therefore reversed contingencies of RMB32,230 based on latest negotiation or arbitration result with the remaining accrued contingencies of RMB34,004. The Group does not believe that any other currently pending legal or administrative proceeding to which the Group is a party will have a material adverse effect on the financial statements.

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS On September 8, 2017 the Group entered into a five-year Memorandum of Understanding ("MoU") with Oravel Stays Private Ltd. ("OYO"), India's leading hospitality company, to facilitate and strengthen collaboration to build a global market leading hospitality business. As part of this collaboration, the Group has agreed to make an approximately US$10.0 million (equivalently RMB67,744) investment in preferred stock of OYO to become a minority shareholder (less than 5%). The Group and OYO will also discuss collaboration in a variety of other areas of mutual interests pursuant to the MoU. On September 28, 2017, the Group's board of directors approved to pay dividends of around RMB300,000 to the shareholders. As of the report date, the Group has not paid any such dividends.

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2017

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Basis of presentation

Basis of consolidation

Impairment of long-lived assets

Revenue recognition

Leases

Fair value

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Fair Value Measurements at Reporting Date Using

Date

Description

Fair
Value

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

Significant Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Year Ended December 31, 2016

Long-term available-for-sale securities

247,085

204,945

42,140

Six-month Period Ended June 30, 2017

Long-term available-for-sale securities

373,163

146,633

226,530

The following table presents the Group's assets measured at fair value on a non-recurring basis for the year ended December 31, 2016 and six-month period ended June 30, 2017:

Fair Value Measurements at Reporting Date
Using

Date

Description

Fair
Value

Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Total
Loss
for the
Period

Year Ended December 31, 2016

Property and equipment

20,706

150,533

Year Ended December 31, 2016

Long-term investments

—

3,208

Six-month Period Ended June 30, 2017

Property and equipment

12,423

44,439

Translation into United States Dollars

Recently issued accounting pronouncements

- Definition

Disclosure of accounting policy for leasing arrangements (both lessor and lessee). This disclosure may address (1) lease classification (that is, operating versus capital), (2) how the term of a lease is determined (for example, the circumstances in which a renewal option is considered part of the lease term), (3) how rental revenue or expense is recognized for a lease that contains rent escalations, (4) an entity's accounting treatment for deferred rent, including that which arises from lease incentives, rent abatements, rent holidays, or tenant allowances (5) an entity's accounting treatment for contingent rental payments and (6) an entity's policy for reviewing, at least annually, the residual values of sales-type and direct-finance leases. The disclosure also may indicate how the entity accounts for its capital leases, leveraged leases or sale-leaseback transactions.

+ References + Details

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2017

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Schedule of information about inputs into the fair value measurements of the assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition

Fair Value Measurements at Reporting Date Using

Date

Description

Fair
Value

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

Significant Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Year Ended December 31, 2016

Long-term available-for-sale securities

247,085

204,945

42,140

Six-month Period Ended June 30, 2017

Long-term available-for-sale securities

373,163

146,633

226,530

Schedule of assets measured at fair value on a non-recurring basis

Fair Value Measurements at Reporting Date
Using

Date

Description

Fair
Value

Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Total
Loss
for the
Period

Year Ended December 31, 2016

Property and equipment

20,706

150,533

Year Ended December 31, 2016

Long-term investments

—

3,208

Six-month Period Ended June 30, 2017

Property and equipment

12,423

44,439

ACQUISITIONS (Tables)

6 Months Ended

Jun. 30, 2017

Accor

Acquisitions

Summary of pro forma information

	Year Ended December 31, 2016
Pro forma net revenue		6,548,083
Pro forma net income		806,921

Summary of fair values of the assets acquired and liabilities assumed

	2016			Amortization Period
Current assets		207,396
Property and equipment		311,045		5 - 30 years
Favorable leases		3,009		remaining lease terms
Master brand agreement		192,000		Indefinite
Land use rights		149,668		remaining contracts terms
Long-term investments		417,604
Goodwill		63,160
Other noncurrent assets		1,664
Current liabilities		(38,634	)
Deferred tax liabilities		(42,952	)

Total		1,263,960

Crystal Orange

Acquisitions

Schedule of total purchase price

	Amount(RMB'000)
Initial Consideration		3,718,673
Pre-combination compensation cost		50,000
Closing Adjustment			*
Total purchase price		3,768,673


*	Closing adjustment is determined by several complex adjustment clauses relating net cash, net working capital amount and income tax payable amount of Crystal Orange as of closing date, which were defined in the share purchase agreement. The closing adjustment amount is immaterial based on the preliminary result, while not finalized till this report date.

Summary of pro forma information

	Year Ended December 31, 2016		Six-month Period Ended June 30, 2017
Pro forma net revenue		7,473,851		3,983,463
Pro forma net income		857,213		577,878

Summary of fair values of the assets acquired and liabilities assumed

	May 25, 2017			Amortization Period
Current assets		137,314
Property and equipment		842,102		3 - 20 years
Favorable leases		97,480		remaining lease terms
Franchise agreement		63,000		remaining contract terms
Brand Name		1,305,699		indefinite life
Goodwill		1,965,206
Other noncurrent assets		130,813
Current liabilities		(222,205	)
Noncurrent liabilities		(179,985	)
Deferred tax liabilities		(366,545	)
Noncontrolling interest		(4,206	)

Total		3,768,673

PROPERTY AND EQUIPMENT, NET (Tables)

6 Months Ended

Jun. 30, 2017

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment, net

	December 31, 2016			June 30, 2017
Cost:
Buildings		255,646			255,646
Leasehold improvements		5,563,815			6,319,366
Furniture, fixtures and equipment		925,174			1,036,578
Motor vehicles		820			820

		6,745,455			7,612,410
Less: Accumulated depreciation		(3,196,496	)		(3,427,329	)

		3,548,959			4,185,081
Construction in progress		161,509			277,867

Property and equipment, net		3,710,468			4,462,948

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE (Tables)

6 Months Ended

Jun. 30, 2017

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE

Schedule of intangible assets, net

	As of
	December 31, 2016			June 30, 2017
Intangible assets with indefinite life:
Brand name		28,600			1,334,299
Master brand agreement (Note 3)		192,000			192,000
Intangible assets with definite life:
Manachised & Franchise hotel agreements		11,000			74,000
Non-compete agreement		400			400
Favorable lease agreements		135,874			239,569
Purchased software		55,101			57,218

Total		422,975			1,897,486
Less: Accumulated amortization		(80,281	)		(91,103	)

Total		342,694			1,806,383

Schedule of unfavorable lease

	As of
	December 31, 2016			June 30, 2017
Unfavorable lease agreements		3,924			3,924
Less: Accumulated amortization		(3,102	)		(3,167	)

Unfavorable lease agreements, net		822			757

LONG-TERM INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2017

LONG-TERM INVESTMENTS

Schedule of long-term investments

	As of
	December 31, 2016		June 30, 2017
Available-for-sale securities:
Quanjude		159,305		146,633
Tang Palace		18,856		—
Banyan Tree		26,784		—
Cjia		42,140		226,530
Cost-method investments:
UBOX/BJ UBOX		48,220		33,822
BJ GOOAGOO/GOOAGOO		60,000		60,000
Founder Service		45,000		45,000
Qingpu		17,143		17,143
Mobike		—		69,009
Blossomhill		—		15,194
Other investments		2,208		6,803
Equity-method investments:
Sheen Star		20,862		20,862
Distrii		28,562		30,750
AAPC LUB		446,100		462,667
China Young		43,054		40,957
CREATER		100,000		101,154
Other investments		6,087		6,190

Total		1,064,321		1,282,714

GOODWILL (Tables)

6 Months Ended

Jun. 30, 2017

GOODWILL

Schedule of changes in the carrying amount of goodwill

	Gross Amount		Accumulated Impairment Loss			Net Amount
Balance at December 31, 2015		112,785		(4,441	)		108,344
Increase in goodwill related to acquisitions		63,160		—			63,160

Balance at December 31, 2016		175,945		(4,441	)		171,504

Increase in goodwill related to acquisitions (Note 3)		1,965,206		—			1,965,206

Balance at June 30, 2017		2,141,151		(4,441	)		2,136,710

SHARE-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2017

SHARE-BASED COMPENSATION

Schedule of share-based compensation expense recognized

	Six-month Period Ended June 30,
	2016		2017
Hotel operating costs		5,998		9,174
Selling and marketing expenses		515		658
General and administrative expenses		24,582		21,988

Total		31,095		31,820

Schedule of the granted restricted stock

	Six-month Period Ended June 30,
	2016				2017
	Number of Restricted Stocks		Weighted Average Grant Date Fair Value		Number of Restricted Stocks		Weighted Average Grant Date Fair Value
			US$				US$
Restricted stocks		1,176,834		6.50		214,099		15.26

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2017

EARNINGS PER SHARE

Schedule of computation of basic and diluted earnings per share

	Six-month Period Ended June 30,
	2016		2017
Net income attributable to ordinary shareholders—basic		384,888		537,722

Net income attributable to ordinary shareholders—diluted		384,888		537,722


Weighted average ordinary shares outstanding—basic		272,932,730		278,785,660
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method		7,165,227		9,027,892

Weighted average ordinary shares outstanding—diluted		280,097,957		287,813,552


Basic earnings per share		1.41		1.93


Diluted earnings per share		1.37		1.87

Schedule of outstanding securities excluded from the computation of diluted earnings per share

	Six-month Period Ended June 30,
	2016		2017
Outstanding employee options and nonvested restricted stocks		35,171		—

RELATED PARTY TRANSACTIONS AND BALANCES (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of related parties

Related Party	Nature of the Party	Relationship with the Group
Ctrip.com International, Ltd. ("Ctrip")	Online travel services provider	Mr. Qi Ji is a director
Lijiang Yibang Changchunteng Hotel Co Limited ("Yibang")*	Hotel	Equity method investee of the Group
Sheen Star Group Limited ("Sheen Star")	Investment holding company	Equity method investee of the Group, controlled by Mr. Qi Ji
Shanghai Qianya Hotel Management Co., Ltd ("Qianya")	Hotels management	Investee of the Group
Accor Hotels ("Accor")	Hotel Group	Shareholder of the Group
Chengjia (Shanghai) Apartment Management Co., Ltd. ("Cjia")	Apartment Management Group	Equity method investee of the Group
Jiyuan Zhongzhou Express Hotel Co., Ltd. ("Jiyuan")	Hotel	Equity method investee of the Group
Shanghai Yechun Catering Co., Ltd. ("Yechun")	Catering Management Company	Equity method investee of the Group


*	In June 2016, the Group disposed the equity investment in Yibang, subsequent to which Yibang is no longer a related party of the Group.

Schedule of amounts due from related parties

	As of
	December 31, 2016		June 30, 2017
Sheen Star		37,060		37,060
Accor		4,052		4,771
Cjia		50,365		81,772
Jiyuan		3,398		665
Yechun		375		33
Ctrip		3,203		—

Total		98,453		124,301

Schedule of amounts due to related party

	As of
	December 31, 2016		June 30, 2017
Ctrip
—Payables for hotel reservation services		3,291		5,041
Qianya
—Payables for service fee		164		141
Accor
—Payables for brand use fee, reservation fee and other related service fee		6,019		3,004
Jiyuan
—Payables for cash collected on behalf		59		66
Yechun
—Payables for cash collected on behalf		1,525		1,354

Total		11,058		9,606

Schedule of related party transactions

	Six-month Period Ended June 30,
	2016		2017
Commission expenses to Ctrip		19,815		24,682
Service fee from Yibang		292		—
Service fee to Qianya		487		—
Brand use fee, reservation fee and other related service fee to Accor		2,688		4,695
Marketing and training fee from Ctrip		3,167		6,333
Service fee from Accor		2,718		5,907
Goods sold and service provided to Cjia		—		702
Interest income from Sheen Star		2,060		—
Rental income from Cjia		—		1,450

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2017

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum lease payments under operating lease agreements

Future minimum lease payments under operating lease agreements at June 30, 2017 were as follows:

Remaining of 2017			1,236,599
2018			2,393,534
2019			2,373,897
2020			2,313,127
2021			2,191,614
2022			2,060,981
2023			1,909,230
2024			1,783,423
2025			1,612,346
2026			1,409,048
Thereafter			5,091,718

Total			24,375,517

ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - item	6 Months Ended
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - item	Jun. 30, 2017	Dec. 31, 2016
Leased and owned hotels
Organization and presentation activities
Number of hotels	686	624
Manachised hotels
Organization and presentation activities
Number of hotels	2,654	2,471
Franchised hotels
Organization and presentation activities
Number of hotels	201	174
Minimum
Organization and presentation activities
Term of franchise and management agreement	8 years
Minimum \| Leased and owned hotels
Organization and presentation activities
Period of rental holiday	2 months
Fixed escalation in rent (as a percent)	3.00%
Period before rent escalations	3 years
Maximum
Organization and presentation activities
Term of franchise and management agreement	10 years
Maximum \| Leased and owned hotels
Organization and presentation activities
Period of rental holiday	6 months
Fixed escalation in rent (as a percent)	5.00%
Period before rent escalations	5 years

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017 CNY (¥)	Jun. 30, 2016 CNY (¥)	Dec. 31, 2016 CNY (¥)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)
Accounting policies
Long-lived asset impairment loss	¥ 44,439	¥ 39,615	¥ 150,533
Hotel manager fees recognized as revenue	176,517	155,633
Revenue recognized from customer loyalty program	¥ 77,376	¥ 70,815
Deferred rent current			37,648		¥ 41,595
Deferred rent long-term			¥ 1,023,843	$ 183,248	¥ 1,242,292
Minimum
Accounting policies
Estimated customer loyalty program membership duration	2 years
Maximum
Accounting policies
Estimated customer loyalty program membership duration	5 years

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Fair value (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Fair value
Cost-method investments	¥ 246,971		¥ 172,571
Long-lived asset impairment loss	¥ 44,439	¥ 39,615	150,533
Long-term investments, impairment loss			¥ 3,208
Revenue growth rate used for level 3 measurement (as a percent)	4.00%		4.00%
Discount rate used for level 3 measurement (as a percent)	20.00%		20.00%
Recurring basis
Fair value
Long-term available-for-sale securities	¥ 373,163		¥ 247,085
Recurring basis \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair value
Long-term available-for-sale securities	146,633		204,945
Recurring basis \| Significant Other Observable Inputs (Level 2)
Fair value
Long-term available-for-sale securities	226,530		42,140
Non-recurring basis
Fair value
Property and equipment	12,423		20,706
Non-recurring basis \| Carrying value
Fair value
Property and equipment	56,862		171,239
Non-recurring basis \| Significant Unobservable Inputs (Level 3)
Fair value
Property and equipment	¥ 12,423		¥ 20,706

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Translation into united states dollars (Details)	Jun. 30, 2017 ¥ / $
Translation into United States Dollars
Foreign exchange rate used to translate amounts denominated in RMB to US dollar	6.7793

ACQUISITIONS - AccorHotels (Details) ¥ in Thousands, $ in Thousands	1 Months Ended	6 Months Ended			12 Months Ended
	Jan. 31, 2016 CNY (¥) shares	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Jun. 30, 2016 CNY (¥)	Dec. 31, 2016 CNY (¥)	Jun. 30, 2017 CNY (¥)	Dec. 31, 2015 CNY (¥)
Acquisitions
Total consideration				¥ 1,143,521
Net revenue		$ 528,415	¥ 3,582,287	3,094,904
Net income		79,318	¥ 537,722	¥ 384,888
Fair values of assets acquired and liabilities assumed:
Goodwill		$ 315,181			¥ 171,504	¥ 2,136,710	¥ 108,344
AAPC LUB
Acquisitions
Noncontrolling interest (as a percent)	28.00%
Accor
Acquisitions
Percentage of ownership interest acquired	100.00%
Cash consideration	¥ 120,439
Total consideration	¥ 1,143,521
Number of shares issued as share consideration \| shares	24,895,543
Net revenue					152,595
Net income					64,047
Business acquisition, pro forma information
Pro forma net revenue					6,548,083
Pro forma net income					806,921
Fair values of assets acquired and liabilities assumed:
Current assets					207,396
Property and equipment					311,045
Long-term investments					417,604
Goodwill					63,160
Other noncurrent assets					1,664
Current liabilities					(38,634)
Deferred tax liabilities					(42,952)
Total					¥ 1,263,960
Accor \| Minimum
Fair values of assets acquired and liabilities assumed:
Amortization period of property and equipment					5 years
Accor \| Maximum
Fair values of assets acquired and liabilities assumed:
Amortization period of property and equipment					30 years
Accor \| Master brand agreement
Fair values of assets acquired and liabilities assumed:
Intangible assets					¥ 192,000
Accor \| Favorable lease agreements
Fair values of assets acquired and liabilities assumed:
Intangible assets					3,009
Accor \| Land use rights
Fair values of assets acquired and liabilities assumed:
Intangible assets					¥ 149,668

ACQUISITIONS - Crystal Orange (Details) ¥ in Thousands, $ in Thousands		6 Months Ended			12 Months Ended
	May 25, 2017 CNY (¥)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Jun. 30, 2016 CNY (¥)	Dec. 31, 2016 CNY (¥)	Jun. 30, 2017 CNY (¥)	Dec. 31, 2015 CNY (¥)
Summary of the fair values of the assets acquired and liabilities assumed
Goodwill		$ 315,181			¥ 171,504	¥ 2,136,710	¥ 108,344
Net revenue		528,415	¥ 3,582,287	¥ 3,094,904
Net income		$ 79,318	537,722	¥ 384,888
Crystal Orange
Acquisitions
Percentage of ownership interest acquired	100.00%
Initial Consideration	¥ 3,718,673
Pre-combination compensation cost	50,000
Total purchase price	3,768,673
Summary of the fair values of the assets acquired and liabilities assumed
Current assets	137,314
Property and equipment	842,102
Goodwill	1,965,206
Other noncurrent assets	130,813
Current liabilities	(222,205)
Noncurrent liabilities	(179,985)
Deferred tax liabilities	(366,545)
Noncontrolling interest	(4,206)
Total	¥ 3,768,673
Net revenue			119,050
Net income			14,029
Business acquisition, pro forma information
Pro forma net revenue			3,983,463		7,473,851
Pro forma net income			577,878		¥ 857,213
Transaction costs						¥ 46,000
Crystal Orange \| Minimum
Summary of the fair values of the assets acquired and liabilities assumed
Amortization period of property and equipment	3 years
Crystal Orange \| Maximum
Summary of the fair values of the assets acquired and liabilities assumed
Amortization period of property and equipment	20 years
Crystal Orange \| Favorable lease agreements
Summary of the fair values of the assets acquired and liabilities assumed
Intangible assets	¥ 97,480
Crystal Orange \| Franchise agreements
Summary of the fair values of the assets acquired and liabilities assumed
Intangible assets	63,000
Brand name \| Crystal Orange
Summary of the fair values of the assets acquired and liabilities assumed
Intangible assets	¥ 1,305,699
Crystal Orange \| Consultation services agreements and option cancellation agreement
Business acquisition, pro forma information
Acquisition related costs			¥ 256,300

PROPERTY AND EQUIPMENT, NET - Schedule (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Cost:
Property and equipment, gross		¥ 7,612,410	¥ 6,745,455
Less: Accumulated depreciation		(3,427,329)	(3,196,496)
Property and equipment net excluding construction in process		4,185,081	3,548,959
Construction in progress		277,867	161,509
Property and equipment, net	$ 658,320	4,462,948	3,710,468
Buildings
Cost:
Property and equipment, gross		255,646	255,646
Leasehold improvements
Cost:
Property and equipment, gross		6,319,366	5,563,815
Furniture, fixtures and equipment
Cost:
Property and equipment, gross		1,036,578	925,174
Motor vehicles
Cost:
Property and equipment, gross		¥ 820	¥ 820

PROPERTY AND EQUIPMENT, NET - Narrative (Details) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017 CNY (¥) item	Jun. 30, 2016 CNY (¥)	Dec. 31, 2016 CNY (¥) item
PROPERTY AND EQUIPMENT, NET
Depreciation expense	¥ 349,008	¥ 334,735
Number of hotels demolished \| item			2
Property and equipment written off			¥ 9,905
Gain (loss) on demolition of property and equipment			(7,205)
Reimbursements receivable			¥ 2,700
Number of hotels likely to be demolished \| item	4
Property and equipment aggregate carrying amount	¥ 14,605

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE - Schedule (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2017 CNY (¥)	Jun. 30, 2016 CNY (¥)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Intangible assets, net
Intangible assets, gross				¥ 1,897,486	¥ 422,975
Less: Accumulated amortization				(91,103)	(80,281)
Total			$ 266,456	1,806,383	342,694
Unfavorable lease
Unfavorable lease agreements				3,924	3,924
Less: Accumulated amortization				(3,167)	(3,102)
Unfavorable lease agreements, net				757	822
Amortization expense of intangible assets	¥ 10,776	¥ 8,575
Manachised & Franchise hotel agreements
Intangible assets, net
Intangible assets, gross				74,000	11,000
Non-compete agreement
Intangible assets, net
Intangible assets, gross				400	400
Favorable lease agreements
Intangible assets, net
Intangible assets, gross				239,569	135,874
Purchased software
Intangible assets, net
Intangible assets, gross				57,218	55,101
Brand name
Intangible assets, net
Intangible assets, gross				1,334,299	28,600
Master brand agreement
Intangible assets, net
Intangible assets, gross				¥ 192,000	¥ 192,000

LONG-TERM INVESTMENTS - Schedule (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Investment holdings
Long-term investments	$ 189,210	¥ 1,282,714	¥ 1,064,321
Available-for-sale securities \| Quanjude
Investment holdings
Long-term investments		146,633	159,305
Available-for-sale securities \| Tang Palace
Investment holdings
Long-term investments			18,856
Available-for-sale securities \| Banyan Tree
Investment holdings
Long-term investments			26,784
Available-for-sale securities \| Cjia
Investment holdings
Long-term investments		226,530	42,140
Cost-method investments \| BJ UBOX
Investment holdings
Long-term investments		33,822	48,220
Cost-method investments \| BJ GOOAGOO
Investment holdings
Long-term investments		60,000	60,000
Cost-method investments \| Founder Service
Investment holdings
Long-term investments		45,000	45,000
Cost-method investments \| Qingpu
Investment holdings
Long-term investments		17,143	17,143
Cost-method investments \| Mobike
Investment holdings
Long-term investments		69,009
Cost-method investments \| Blossomhill
Investment holdings
Long-term investments		15,194
Cost-method investments \| Other investments
Investment holdings
Long-term investments		6,803	2,208
Equity-method investments \| Sheen Star
Investment holdings
Long-term investments		20,862	20,862
Equity-method investments \| Distrii
Investment holdings
Long-term investments		30,750	28,562
Equity-method investments \| AAPC LUB
Investment holdings
Long-term investments		462,667	446,100
Equity-method investments \| China Young
Investment holdings
Long-term investments		40,957	43,054
Equity-method investments \| CREATER
Investment holdings
Long-term investments		101,154	100,000
Equity-method investments \| Other investments
Investment holdings
Long-term investments		¥ 6,190	¥ 6,087

LONG-TERM INVESTMENTS - Available-for-sale securities (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands	1 Months Ended			6 Months Ended			12 Months Ended
	Apr. 30, 2017 CNY (¥) shares	Jan. 31, 2017 CNY (¥) shares	Jun. 30, 2014 CNY (¥) ¥ / shares shares	Jun. 30, 2017 USD ($) item shares	Jun. 30, 2017 CNY (¥) item shares	Jun. 30, 2016 CNY (¥)	Dec. 31, 2016 CNY (¥) shares
Available-for-sale securities
Loss from equity method investments				$ 831	¥ 5,632	¥ (145)
Quanjude
Available-for-sale securities
Ordinary shares acquired in investment of available-for-sale (in shares) \| shares			7,241,131
Price of investment (in RMB per share) \| ¥ / shares			¥ 13.81
Consideration/purchase cost			¥ 100,000
Percentage of equity interest acquired			2.00%
Tang Palace
Available-for-sale securities
Ordinary shares acquired in investment of available-for-sale (in shares) \| shares							8,430,000
Consideration/purchase cost							¥ 16,887
Percentage of equity interest acquired							2.00%
Number of shares sold \| shares				8,430,000	8,430,000
Recognized gain on sale					¥ 3,813
Banyan Tree
Available-for-sale securities
Ordinary shares acquired in investment of available-for-sale (in shares) \| shares		3,000,000					11,635,400
Consideration/purchase cost		¥ 7,020					¥ 27,328
Percentage of equity interest acquired							2.00%
Number of shares sold \| shares	14,635,400
Recognized gain on sale	¥ 1,469
Cjia
Available-for-sale securities
Percentage of equity interest owned					23.00%		23.00%
Original value of convertible note					¥ 251,500		¥ 51,200
Original value of convertible note purchased					¥ 200,300
Number of convertible notes sets \| item				2	2
Loss from equity method investments					¥ 15,737
Cost of equity-method investment					0
Carrying amount of convertible note					¥ 226,530
Chengjia Hotel Management Co., Ltd.
Available-for-sale securities
Investment income from deconsolidation							¥ 49,630

LONG-TERM INVESTMENTS - Cost-method investments (Details) ¥ in Thousands, $ in Thousands	1 Months Ended					6 Months Ended			12 Months Ended
	Jun. 30, 2017	May 31, 2017 CNY (¥) shares	Apr. 30, 2017 CNY (¥) shares	Jan. 31, 2017 USD ($) shares	Jan. 31, 2017 CNY (¥) shares	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Jun. 30, 2016 CNY (¥)	Dec. 31, 2016	Dec. 31, 2015 CNY (¥)	Dec. 31, 2013 CNY (¥)
Cost-method investments
Consideration for purchase of investments						$ 43,593	¥ 295,526	¥ 123,674
BJ UBOX
Cost-method investments
Consideration of cost method investment										¥ 7,703
Number of shares sold \| shares			4,810,000
Percentage of equity interest acquired						2.00%	2.00%		3.00%
Recognized gain			¥ 35,545
UBOX
Cost-method investments
Consideration of cost method investment											¥ 40,517
Mobike \| Maximum
Cost-method investments
Percentage of equity interest acquired	1.00%
Mobike \| Preferred shares
Cost-method investments
Preferred shares purchased \| shares				1,316,205	1,316,205
Consideration for purchase of investments				$ 5,000	¥ 34,294
Convertible notes converted (in shares) \| shares		648,559
Mobike \| Convertible notes
Cost-method investments
Consideration for purchase of investments				$ 5,000	¥ 34,294
Interest rate				8.00%	8.00%
Blossomhill
Cost-method investments
Percentage of equity interest acquired		4.00%
Consideration for purchase of investments		¥ 15,194

LONG-TERM INVESTMENTS - Equity-method investments (Details) - Distrii - CNY (¥) ¥ in Thousands	1 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jun. 30, 2017
Equity-method investments
Consideration paid for acquisition of equity method investments		¥ 35,000
Percentage of equity interest owned	32.00%	39.00%	26.00%
Percentage of equity interest sold	6.00%
Consideration for transfer of investment	¥ 18,000
Recognized gain on disposal of equity-method investment	¥ 22,682

GOODWILL (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
GOODWILL (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Changes in carrying amount of goodwill
Balance at the beginning of the period, Gross Amount		¥ 175,945	¥ 112,785
Balance at the beginning of the period, Accumulated Impairment Loss		(4,441)	(4,441)
Balance at the beginning of the period, Net Amount		171,504	108,344
Increase in goodwill related to acquisitions		1,965,206	63,160
Balance at the end of the period, Gross Amount		2,141,151	175,945
Balance at the end of the period, Accumulated Impairment Loss		(4,441)	(4,441)
Balance at the end of the period, Net Amount	$ 315,181	¥ 2,136,710	¥ 171,504

DEBT (Details) ¥ in Thousands, $ in Thousands	1 Months Ended		6 Months Ended
DEBT (Details) ¥ in Thousands, $ in Thousands	May 31, 2017 USD ($)	Apr. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Jun. 30, 2017 CNY (¥)	May 31, 2017 CNY (¥)	Apr. 30, 2017 CNY (¥)
Debt
Long-term debt, current portion			$ 20		¥ 135
Long-term debt			539,590		3,658,041
Three-year bank loan contract
Debt
Term of debt instrument		3 years
Maximum borrowing amount		$ 40,000					¥ 270,976
Deposit pledged \| ¥							¥ 307,000
Line of credit draw down amount			40,000	¥ 270,976
Repayment of line of credit facility			0
Short-term debt			20		135
Long term loan			$ 39,980		270,841
Weighted average interest rate (as a percent)			2.57%	2.57%
Three-year bank loan contract \| Libor
Debt
Percentage points added to the reference rate		1.40%
Term facility and revolving credit facility
Debt
Line of credit draw down amount			$ 500,000	¥ 3,387,200
Repayment of line of credit facility			0
Long term loan			$ 500,000		¥ 3,387,200
Weighted average interest rate (as a percent)			2.94%	2.94%
Term facility and revolving credit facility \| Libor
Debt
Percentage points added to the reference rate	1.75%
Term facility
Debt
Maximum borrowing amount	$ 250,000					¥ 1,693,600
Revolving bank credit facility
Debt
Maximum borrowing amount	$ 250,000					¥ 1,693,600
Line of credit facility available period	35 months

INCOME TAXES (Details)	6 Months Ended
INCOME TAXES (Details)	Jun. 30, 2017	Jun. 30, 2016
INCOME TAXES
Effective tax rate (as a percent)	25.20%	21.80%

SHARE-BASED COMPENSATION - Plan (Details) ¥ in Thousands	6 Months Ended
SHARE-BASED COMPENSATION - Plan (Details) ¥ in Thousands	Jun. 30, 2017 $ / shares	Jun. 30, 2017 CNY (¥) shares	Jun. 30, 2016 $ / shares	Jun. 30, 2016 CNY (¥) shares
Share based compensation
Recognized share-based compensation expenses		¥ 31,820		¥ 31,095
Hotel operating costs
Share based compensation
Recognized share-based compensation expenses		9,174		5,998
Selling and marketing expenses
Share based compensation
Recognized share-based compensation expenses		658		515
General and administrative expenses
Share based compensation
Recognized share-based compensation expenses		¥ 21,988		¥ 24,582
Restricted stocks
Share based compensation
Number of Restricted Stocks (in shares) \| shares		214,099		1,176,834
Weighted Average Grant Date Fair Value (in dollars per share) \| $ / shares	$ 15.26		$ 6.50

EARNINGS PER SHARE (Details) ¥ / shares in Units, ¥ in Thousands	6 Months Ended
	Jun. 30, 2017 $ / shares	Jun. 30, 2017 CNY (¥) ¥ / shares shares	Jun. 30, 2016 CNY (¥) ¥ / shares shares
EARNINGS PER SHARE
Net income attributable to ordinary shareholders - basic \| ¥		¥ 537,722	¥ 384,888
Net income attributable to ordinary shareholders - diluted \| ¥		¥ 537,722	¥ 384,888
Weighted average ordinary shares outstanding - basic		278,785,660	272,932,730
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method		9,027,892	7,165,227
Weighted average ordinary shares outstanding - diluted		287,813,552	280,097,957
Basic earnings per share (in RMB and USD per share) \| (per share)	$ 0.28	¥ 1.93	¥ 1.41
Diluted earnings per share (in RMB and USD per share) \| (per share)	$ 0.28	¥ 1.87	¥ 1.37
Outstanding employee options and nonvested restricted stocks (in shares)			35,171

RELATED PARTY TRANSACTIONS AND BALANCES (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017 CNY (¥)	Jun. 30, 2016 CNY (¥)	Dec. 31, 2016 CNY (¥)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)
Related party transaction
Amount due from related parties			¥ 98,453	$ 18,335	¥ 124,301
Due to related party			11,058		9,606
Sheen Star
Related party transaction
Amount due from related parties			37,060		37,060
Interest income from related party		¥ 2,060
Accor
Related party transaction
Amount due from related parties			4,052		4,771
Accor \| Service fee
Related party transaction
Revenue from related parties	¥ 5,907	2,718
Accor \| Brand use fee, reservation fee and other related service fee
Related party transaction
Due to related party			6,019		3,004
Expenses with related parties	4,695	2,688
Cjia
Related party transaction
Amount due from related parties			50,365		81,772
Cjia \| Goods sold and service provided
Related party transaction
Revenue from related parties	702
Cjia \| Rental income
Related party transaction
Revenue from related parties	1,450
Cjia \| Chengjia Hotel Management Co., Ltd.
Related party transaction
Consideration from sale of subsidiary			10,000
Jiyuan
Related party transaction
Amount due from related parties			3,398		665
Jiyuan \| Cash collected
Related party transaction
Due to related party			59		66
Yechun
Related party transaction
Amount due from related parties			375		33
Yechun \| Cash collected
Related party transaction
Due to related party			1,525		1,354
Ctrip
Related party transaction
Amount due from related parties			3,203
Ctrip \| Hotel reservation services
Related party transaction
Due to related party			3,291		5,041
Ctrip \| Marketing and training fee
Related party transaction
Revenue from related parties	6,333	3,167
Ctrip \| Commission expenses
Related party transaction
Expenses with related parties	¥ 24,682	19,815
Yibang \| Service fee
Related party transaction
Revenue from related parties		292
Qianya \| Service fee
Related party transaction
Due to related party			¥ 164		¥ 141
Expenses with related parties		¥ 487

COMMITMENTS AND CONTINGENCIES - Operating lease and purchase commitments (Details) ¥ in Thousands	Jun. 30, 2017 CNY (¥)
Operating lease commitments
Remaining of 2017	¥ 1,236,599
2018	2,393,534
2019	2,373,897
2020	2,313,127
2021	2,191,614
2022	2,060,981
2023	1,909,230
2024	1,783,423
2025	1,612,346
2026	1,409,048
Thereafter	5,091,718
Total	24,375,517
Purchase commitments
Purchase commitments expected to be incurred within one year related to leasehold improvements and installation of equipment for hotel operations	¥ 120,481

COMMITMENTS AND CONTINGENCIES - Contingencies (Details) - CNY (¥) ¥ in Thousands	2 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Contingencies
Accrued contingencies in other operating expense		¥ 66,234
Reversed contingencies	¥ 32,230
Accrued contingencies	¥ 34,004

SUBSEQUENT EVENTS (Details) - Subsequent Events ¥ in Thousands, $ in Millions	Sep. 28, 2017 CNY (¥)	Sep. 08, 2017 USD ($)	Sep. 08, 2017 CNY (¥)
SUBSEQUENT EVENTS
Aggregate amount of dividends declared to the shareholders	¥ 300,000
OYO
SUBSEQUENT EVENTS
Term of Memorandum of Understanding ("MoU")		5 years
Forecast \| OYO
SUBSEQUENT EVENTS
Consideration of cost method investment		$ 10.0	¥ 67,744
Forecast \| Maximum \| OYO
SUBSEQUENT EVENTS
Percentage of equity interest acquired		5.00%