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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2017 shares
Document and Entity Information
Entity Registrant Name	China Lodging Group, Ltd
Entity Central Index Key	0001483994
Document Type	20-F
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	290,943,470
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	htht

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Current assets:
Cash and cash equivalents	$ 534,054	¥ 3,474,719	¥ 3,235,007
Restricted cash	73,982	481,348	500
Short-term investments measured at fair value	19,967	129,911
Accounts receivable, net of allowance of RMB11,424 and RMB10,277 as of December 31, 2016 and 2017, respectively	25,039	162,910	141,649
Loan receivables	58,494	380,580	22,410
Amounts due from related parties	18,219	118,537	98,453
Prepaid rent	101,436	659,973	446,127
Inventories	3,690	24,006	21,606
Other current assets	50,588	329,140	208,929
Total current assets	885,469	5,761,124	4,174,681
Property and equipment, net	695,154	4,522,878	3,710,468
Intangible assets, net	252,674	1,643,972	342,694
Land use rights	21,534	140,108	145,521
Long-term investments, including marketable securities measured at fair value of RMB204,945 and RMB907,716 as of December 31, 2016 and 2017, respectively	363,028	2,361,969	1,064,321
Goodwill	348,087	2,264,758	171,504
Loan receivables	6,506	42,330	7,269
Other assets	56,047	364,660	200,492
Deferred tax assets	50,050	325,643	176,414
Total assets	2,678,549	17,427,442	9,993,364
Current liabilities:
Short-term debt	20,106	130,815	298,291
Accounts payable	117,819	766,565	584,731
Amounts due to related parties	5,670	36,890	11,058
Salary and welfare payables	65,640	427,070	274,259
Deferred revenue	127,879	832,021	749,793
Accrued expenses and other current liabilities	194,412	1,264,902	895,837
Income tax payable	33,542	218,238	152,112
Total current liabilities	565,068	3,676,501	2,966,081
Long-term debt	756,463	4,921,774
Deferred rent	212,177	1,380,484	1,023,843
Deferred revenue	26,394	171,735	166,963
Other long-term liabilities	58,494	380,578	323,991
Deferred tax liabilities	64,874	422,090	96,329
Total liabilities	1,683,470	10,953,162	4,577,207
Commitments and contingencies (Note 22)
Equity:
Ordinary shares (US$0.0001 par value per share; 8,000,000,000 shares authorized; 281,379,130 and 294,040,234 shares issued as of December 31, 2016 and 2017, and 278,282,366 and 280,518,358 shares outstanding as of December 31, 2016 and 2017, respectively)	33	212	204
Treasury shares (3,096,764 and 3,096,764 shares as of December 31 2016 and 2017, respectively)	(16,496)	(107,331)	(107,331)
Additional paid-in capital	557,019	3,624,135	3,699,056
Retained earnings	423,238	2,753,715	1,812,174
Accumulated other comprehensive (loss) income	25,816	167,965	(4,503)
Total China Lodging Group, Limited shareholders' equity	989,610	6,438,696	5,399,600
Noncontrolling interest	5,469	35,584	16,557
Total equity	995,079	6,474,280	5,416,157
Total liabilities and equity	$ 2,678,549	¥ 17,427,442	¥ 9,993,364

CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands	Dec. 31, 2017 CNY (¥) shares	Dec. 31, 2016 CNY (¥) shares
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance \| ¥	¥ 10,277	¥ 11,424
Long-term investments, marketable securities measured at fair value \| ¥	¥ 907,716	¥ 204,945
Ordinary shares, shares authorized	8,000,000,000	8,000,000,000
Ordinary shares, shares issued	294,040,234	281,379,130
Ordinary shares, shares outstanding	280,518,358	278,282,366
Treasury stock, shares	3,096,764	3,096,764

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2017 CNY (¥) ¥ / shares shares	Dec. 31, 2016 CNY (¥) ¥ / shares shares	Dec. 31, 2015 CNY (¥) ¥ / shares shares
Revenues:
Leased and owned hotels	$ 974,944	¥ 6,343,279	¥ 5,212,405	¥ 4,986,872
Manachised and franchised hotels	274,605	1,786,660	1,411,156	1,123,979
Others	6,187	40,257	31,219
Total revenues	1,255,736	8,170,196	6,654,780	6,110,851
Less: Business tax and related taxes \| ¥			116,149	336,227
Net revenues	1,255,736	8,170,196	6,538,631	5,774,624
Operating costs and expenses:
Hotel operating costs	872,101	5,674,151	4,932,173	4,512,147
Other operating costs	2,663	17,324	7,606
Selling and marketing expenses	33,039	214,959	146,525	179,568
General and administrative expenses	106,200	690,970	492,141	403,008
Pre-opening expenses	31,731	206,454	71,847	110,011
Total operating costs and expenses	1,045,734	6,803,858	5,650,292	5,204,734
Other operating income (expenses), net	10,940	71,175	(17,440)	31,264
Income from operations	220,942	1,437,513	870,899	601,154
Interest income	17,313	112,645	67,366	26,712
Interest expense	(13,421)	(87,320)	(11,056)	(3,854)
Other income (expense), net	25,157	163,678	133,755	6,979
Foreign exchange gain (loss)	(2,786)	(18,128)	16,481	7,814
Income before income taxes	247,205	1,608,388	1,077,445	638,805
Income tax expense	(55,325)	(359,958)	(287,120)	(196,529)
Income (loss) from equity method investments	(1,811)	(11,783)	6,157	(2,896)
Net income	190,069	1,236,647	796,482	439,380
Less: net income (loss) attributable to noncontrolling interest	(86)	(555)	(8,133)	2,780
Net income attributable to China Lodging Group, Limited	190,155	1,237,202	804,615	436,600
Other comprehensive income
Unrealized securities holding gains, net of tax of 7,151, (1,810) and (7,965) for 2015, 2016 and 2017	133	868	16,449	68,069
Reclassification of realized gains to net income, net of tax	(812)	(5,282)	(67,921)
Foreign currency translation adjustments, net of tax of nil for 2015, 2016 and 2017	27,186	176,882	(12,627)	3,535
Comprehensive income	216,576	1,409,115	732,383	510,984
Comprehensive income (loss) attributable to the noncontrolling interest	(86)	(555)	(8,133)	2,780
Comprehensive income attributable to China Lodging Group, Limited	$ 216,662	¥ 1,409,670	¥ 740,516	¥ 508,204
Earnings per share:
Basic (in RMB and dollars per share) \| (per share)	$ 0.68	¥ 4.43	¥ 2.92	¥ 1.74
Diluted (in RMB and dollars per share) \| (per share)	$ 0.65	¥ 4.24	¥ 2.84	¥ 1.70
Weighted average number of shares used in computation:
Basic (in shares)	279,272,140	279,272,140	275,139,070	250,533,204
Diluted (in shares)	293,073,978	293,073,978	282,889,494	256,104,167

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized securities holding gains (loss), tax	¥ (7,965)	¥ (1,810)	¥ 7,151
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ¥ in Thousands, $ in Thousands	Ordinary Shares CNY (¥) shares	Treasury Shares CNY (¥) shares	Additional Paid-in Capital CNY (¥)	Retained Earnings CNY (¥)	Accumulated Other Comprehensive (Loss) Income CNY (¥)	Noncontrolling Interest CNY (¥)	USD ($) shares	CNY (¥) shares
Balance at Dec. 31, 2014	¥ 184		¥ 2,381,568	¥ 847,220	¥ (12,008)	¥ 1,749		¥ 3,218,713
Balance issued (in shares) at Dec. 31, 2014 \| shares	250,747,255
Balance outstanding (in shares) at Dec. 31, 2014 \| shares							250,747,255	250,747,255
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks	¥ 2		23,158					¥ 23,160
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks (in shares) \| shares	3,231,068						3,231,068	3,231,068
Share-based compensation			52,535					¥ 52,535
Excess tax benefit from share-based compensation			12,838					12,838
Noncontrolling interest recognized in connection with acquisitions						8,264		8,264
Net income				436,600		2,780		439,380
Cash dividends declared/paid				(276,261)				(276,261)
Unrealized securities holding gains, net of tax					68,069			68,069
Dividends paid to noncontrolling interest holders						(4,604)		(4,604)
Capital contribution from noncontrolling interest holders						2,450		2,450
Repurchase of shares		¥ (107,331)						¥ (107,331)
Repurchase of shares (in shares) \| shares		3,096,764					(3,096,764)	(3,096,764)
Foreign currency translation adjustments					3,535			¥ 3,535
Balance at Dec. 31, 2015	¥ 186	¥ (107,331)	2,470,099	1,007,559	59,596	10,639		¥ 3,440,748
Balance issued (in shares) at Dec. 31, 2015 \| shares	253,978,323
Balance outstanding (in shares) at Dec. 31, 2015 \| shares							250,881,559	250,881,559
Treasury shares, balance (in shares) at Dec. 31, 2015 \| shares		3,096,764
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks	¥ 2		10,581					¥ 10,583
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks (in shares) \| shares	2,505,264						2,505,264	2,505,264
Issuance of ordinary shares for acquisition	¥ 16		1,143,505					¥ 1,143,521
Issuance of ordinary shares for acquisition (in shares) \| shares	24,895,543						24,895,543	24,895,543
Share-based compensation			55,436					¥ 55,436
Excess tax benefit from share-based compensation			18,645					18,645
Net income				804,615		(8,133)		796,482
Unrealized securities holding gains, net of tax					16,449			16,449
Reclassification of realized gains to net income, net of tax					(67,921)			(67,921)
Dividends paid to noncontrolling interest holders						(3,677)		(3,677)
Capital contribution from noncontrolling interest holders			790			44,814		45,604
Disposal of noncontrolling interest for deconsolidation						(27,086)		(27,086)
Foreign currency translation adjustments					(12,627)			(12,627)
Balance at Dec. 31, 2016	¥ 204	¥ (107,331)	3,699,056	1,812,174	(4,503)	16,557		¥ 5,416,157
Balance issued (in shares) at Dec. 31, 2016 \| shares	281,379,130						281,379,130	281,379,130
Balance outstanding (in shares) at Dec. 31, 2016 \| shares							278,282,366	278,282,366
Treasury shares, balance (in shares) at Dec. 31, 2016 \| shares		3,096,764					(3,096,764)	(3,096,764)
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks	¥ 1		9,301					¥ 9,302
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks (in shares) \| shares	2,235,992						2,235,992	2,235,992
Share-based compensation			66,367					¥ 66,367
Issuance of ordinary shares under ADS lending arrangement	¥ 7							7
Issuance of ordinary shares under ADS lending arrangement (in shares) \| shares	10,425,112
Capped Call options in connection with issuance of convertible senior notes			(177,476)					(177,476)
ADS lending arrangement in connection with issuance of convertible senior notes			26,499					26,499
Noncontrolling interest recognized in connection with acquisitions						4,206		4,206
Net income				1,237,202		(555)	$ 190,069	1,236,647
Cash dividends declared/paid				(295,661)				(295,661)
Unrealized securities holding gains, net of tax					868		133	868
Reclassification of realized gains to net income, net of tax					(5,282)		(812)	(5,282)
Dividends paid to noncontrolling interest holders						(2,810)		(2,810)
Capital contribution from noncontrolling interest holders						25,575		25,575
Disposal of noncontrolling interest for deconsolidation						(3,488)		(3,488)
Noncontrolling interest recognized from partial disposal						237		237
Acquisition of noncontrolling interest			388			(4,138)		(3,750)
Foreign currency translation adjustments					176,882		27,186	176,882
Balance at Dec. 31, 2017	¥ 212	¥ (107,331)	¥ 3,624,135	¥ 2,753,715	¥ 167,965	¥ 35,584	$ 995,079	¥ 6,474,280
Balance issued (in shares) at Dec. 31, 2017 \| shares	294,040,234						294,040,234	294,040,234
Balance outstanding (in shares) at Dec. 31, 2017 \| shares							280,518,358	280,518,358
Treasury shares, balance (in shares) at Dec. 31, 2017 \| shares		3,096,764					(3,096,764)	(3,096,764)

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Operating activities:
Net income	$ 190,069	¥ 1,236,647	¥ 796,482	¥ 439,380
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation	10,200	66,367	55,436	52,535
Depreciation and amortization	121,306	789,252	694,894	661,404
Amortization of issuance cost of convertible senior notes	399	2,598
Deferred taxes	(11,717)	(76,237)	33,446	(50,149)
Bad debt expenses	376	2,446	1,082	1,997
Deferred rent	32,134	209,074	103,322	130,301
(Gain) loss from disposal of property and equipment	1,980	12,884	9,333	(5,519)
Impairment loss	26,008	169,213	153,741	95,608
Loss (Income) from equity method investments	1,811	11,783	(6,157)	2,896
Investment (income) loss	(24,588)	(159,974)	(116,763)	(2,767)
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	647	4,207	(46,211)	(5,749)
Prepaid rent	(28,995)	(188,653)	(25,380)	(44,430)
Inventories	425	2,766	3,923	5,952
Amounts due from related parties	(4,788)	(31,151)	(9,314)
Other current assets	(11,730)	(76,320)	(40,813)	(15,518)
Other assets	(8,363)	(54,411)	(5,046)	1,787
Accounts payable	1,251	8,141	59,129	14,194
Amounts due to related parties	475	3,093	7,489	1,250
Salary and welfare payables	20,464	133,142	60,669	24,532
Deferred revenue	617	4,016	19,529	216,805
Accrued expenses and other current liabilities	44,293	288,185	202,351	121,502
Income tax payable	6,868	44,688	64,087	56,019
Other long-term liabilities	7,813	50,840	51,072	60,481
Net cash provided by (used in) operating activities	376,955	2,452,596	2,066,301	1,762,511
Investing activities:
Purchases of property and equipment for hotels in operation and headquarters	(62,273)	(405,166)	(296,353)	(315,117)
Purchases of property and equipment for hotels under development	(63,685)	(414,357)	(206,783)	(325,105)
Purchases of intangibles	(1,207)	(7,854)	(13,557)	(8,818)
Amount received as a result of government zoning	399	2,593	2,099	6,721
Acquisitions, net of cash received	(575,686)	(3,745,588)	131,501	(19,153)
Proceeds from disposal of subsidiary and branch, net of cash disposed	2,103	13,684	(20,668)	5,000
Purchases of long-term investments	(204,034)	(1,327,508)	(293,125)	(105,707)
Proceeds from maturity/sale of long-term investments	19,700	128,174	14,842	14,410
Payment for shareholder loan to equity investees	(17,399)	(113,206)	(39,387)	(1,386)
Collection of shareholder loan from equity investees	18,421	119,855	9,285	1,522
Purchases of short-term investments	(14,724)	(95,802)		(434,811)
Proceeds from maturity/sale of short-term investments			526,443
Payment for the origination of loan receivables	(68,532)	(445,892)	(36,420)	(53,000)
Proceeds from collection of loan receivables	8,554	55,662	45,885	45,587
(Increase) decrease in restricted cash	(73,905)	(480,849)	360,000	(360,500)
Net cash (used in) provided by investing activities	(1,032,268)	(6,716,254)	183,762	(1,550,357)
Financing activities:
Net proceeds from issuance of ordinary shares upon exercise of options	1,394	9,073	12,206	22,619
Payment of share repurchase				(107,331)
Proceeds from short-term bank borrowings	20,978	136,488	281,719	589,376
Repayment of short-term bank borrowings	(45,291)	(294,677)	(332,555)	(283,516)
Proceeds from long-term bank borrowings	558,409	3,633,174
Repayment of long-term bank borrowings	(253,741)	(1,650,917)
Funds advanced from noncontrolling interest holders	12,845	83,573	11,453	5,432
Repayment of funds advanced from noncontrolling interest holders	(1,342)	(8,730)	(600)	(900)
Acquisitions of noncontrolling interest	(576)	(3,750)	(4,083)	(4,083)
Contribution from noncontrolling interest holders	3,931	25,575	45,604	2,450
Dividends paid to noncontrolling interest holders	(432)	(2,810)	(3,677)	(4,604)
Dividends paid	(47,084)	(306,343)	(276,261)
Proceeds from issuance of convertible senior notes, net of issuance cost and capped call option	449,595	2,925,203
Debt financing costs paid	(1,501)	(9,763)
Proceeds from ADS lending	1	7
Net cash provided by (used in) financing activities	697,186	4,536,103	(266,194)	219,443
Effect of exchange rate changes on cash and cash equivalents	(5,031)	(32,733)	13,300	(2,624)
Net (decrease) increase in cash and cash equivalents	36,842	239,712	1,997,169	428,973
Cash and cash equivalents at the beginning of the period	497,212	3,235,007	1,237,838	808,865
Cash and cash equivalents at the end of the period	534,054	3,474,719	3,235,007	1,237,838
Supplemental disclosure of cash flow information:
Interest paid, net of amounts capitalized	28,687	186,648	9,415	3,854
Income taxes paid	58,447	380,272	184,414	190,660
Supplemental schedule of non-cash investing and financing activities:
Purchases of property and equipment included in payables	94,140	612,503	453,281	513,168
Consideration payable for business acquisition	18,173	118,242	172,813	113,458
Purchase of intangible assets included in payables	924	6,015	7,267	7,646
Reimbursement of government zoning included in receivables	318	2,068	2,700	2,099
Proceeds from disposal of subsidiary and branch included in receivables	$ 46	¥ 300
Acquisition of noncontrolling interest included in payables				¥ 4,083
Issuance of ordinary shares for acquisition of AccorHotels (Note 3)			¥ 1,143,521

ORGANIZATION AND PRINCIPAL ACTIVITIES	12 Months Ended
ORGANIZATION AND PRINCIPAL ACTIVITIES	Dec. 31, 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”, “Crystal Orange”, “Manxin Hotel”, “Orange Hotel Select”, “Orange Hotel”, “JI Hotel”, “Starway Hotel”, “HanTing Hotel”, “HanTing Premium”, “Elan Hotel” and “Hi Inn” 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 2017, the Group had 624 and 671 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 2017, the Group had 2,471 and 2,874 manachised hotels in operation and 174 and 201 franchised hotels in operation, respectively.

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2017

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

2.SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”).

Basis of consolidation

The consolidated financial statements include the financial statements of the Company, its majority-owned subsidiaries and consolidated variable interest entities (the “VIEs”). All intercompany transactions and balances are eliminated on consolidation.

Variable Interest Entities

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 Company is deemed as the primary beneficiary of and consolidates variable interest entities when the Company 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. In November 2017, the Company through one of its subsidiaries entered into a series of contractual agreements with Tianjin Mengguang Information Technology Co., Ltd. (“TJ Mengguang”), a newly established limited liability company, and its shareholder, pursuant to which the Company has obtained control over the VIE of TJ Mengguang and is entitled to receive effectively all economic benefits generated from TJ Mengguang. Accordingly, the Company consolidates TJ Mengguang in the consolidated financial statements. The Company can have assets transferred freely out of TJ Mengguang without any restrictions. Therefore, the Group considers that there is no asset of a consolidated TJ Mengguang that can be used only to settle obligations of TJ Mengguang, except for registered capital and PRC statutory reserves of TJ Mengguang amounting to a total of RMB12,059 as of December 31, 2017. As the consolidated TJ Mengguang is incorporated as a limited liability company under the PRC Company Law, creditors of TJ Mengguang do not have recourse to the general credit of the Company for any of the liabilities of the consolidated TJ Mengguang.

As of December 31, 2017, excluding inter-group balance, the assets of VIE of TJ Mengguang mainly consisted of cash and cash equivalent RMB21,353 and other current assets RMB3,095, and this VIE’s liabilities of RMB2,585 mainly consisted of deferred revenue RMB1,371 and accrued expenses and other current liabilities RMB1,032. For the year ended December 31, 2017, excluding inter-group transactions, net revenues and cost of revenues generated by this VIE of TJ Mengguang are RMB534 and RMB653, respectively.

In addition, the Group, as general partner, has the power to direct the activities that most significantly impact the economic success of the fund of Ningbo Hongting Investment Management LLP (“NB Hongting”, the “Fund”) and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the Fund. As of December 31, 2017, the assets of NB Hongting mainly consisted of cash and cash equivalent RMB8,816 and long term investment RMB25,000, and the Fund’s liabilities is RMB461. For the year ended December 31, 2017, the net loss of RMB398 is due to some pre-operation expenses.

The Group evaluates its business activities and arrangements with the entities that operate the manachised and franchised hotels and the funds that it serves as general partner or fund manager to identify potential variable interest entities. Generally, these entities that operate the manachised and franchised hotels qualify for the business scope exception, therefore consolidation is not appropriate under the variable interest entity consolidation guidance. For the disclosure of significant non-consolidated variable interest entities, see Note.9 Long-Term Investments.

Use of estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include the useful lives and impairment of property and equipment and intangible assets, valuation allowance of deferred tax assets, purchase price allocation, impairment of goodwill, fair value measurement and impairment of investments, share-based compensation, costs related to its customer loyalty program and contingent liabilities.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased.

Restricted cash

Restricted cash mainly represents deposits used as security against borrowings and deposits restricted due to contract disputes or lawsuit.

Investments

Investments represent trading securities, available-for-sale securities, cost-method investments, and equity-method investments.

Investments in equity securities that have readily determinable fair values are classified as either trading securities or available-for-sale securities depending on the Group’s intention. Trading securities are equity securities of public companies that are bought and held principally for the purpose of selling them in the near term, and are reported at fair value, with unrealized gains and losses included in other income (loss) in the consolidated statements of comprehensive income. The fair value of the Company’s investments in trading securities is based on the quoted market price on the last business day of the fiscal year.

Available-for-sale securities are investments in equity securities that the Group does not have intention to sell in near term, reported at fair value, with unrealized gains and losses recorded as a component of other comprehensive income or loss. Realized gains or losses are recognized in the consolidated statements of comprehensive income during the period in which the gains or losses are realized. If the Group determines that a decline in the fair value of the individual available-for-sale security is other-than-temporary, the cost basis of the security is written down to the fair value as a new cost basis and the amount of the write-down is accounted for as a realized loss. The new cost basis will not be changed for subsequent recoveries in fair value. The Group reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to: (1) the nature of the investment; (2) the cause and duration of the impairment; (3) the extent to which fair value is less than cost; (4) financial conditions and near term prospects of the issuers; and (5) the Group’s ability to hold the security for a period of time sufficient to allow for any anticipated recovery of its amortized cost or fair value.

The Group accounts for equity investment in a private entity of which the Group owns less than 20% of the voting securities and does not have the ability to exercise significant influence over operating and financial policies of the entity as cost-method investment. The Group’s cost-method investment is carried at historical cost in its consolidated financial statements and measured at fair value on a nonrecurring basis when there are events or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements of comprehensive income equal to the excess of the investment’s cost over its fair value when the impairment is deemed other-than-temporary.

The Group accounts for equity investment in entities with significant influence under equity-method accounting. Under this method, the Group’s pro rata share of income (loss) from investment is recognized in the consolidated statements of comprehensive income. Dividends received reduce the carrying amount of the investment. When the Group’s share of loss in an equity-method investee equals or exceeds its carrying value of the investment in that entity, the Group continues to report its share of equity method losses in the statements of comprehensive income to the extent and as an adjustment to the carrying amount of its other investments in the investee. Equity-method investment is reviewed for impairment by assessing if the decline in market value of the investment below the carrying value is other-than-temporary. In making this determination, factors are evaluated in determining whether a loss in value should be recognized. These include consideration of the intent and ability of the Group to hold investment and the ability of the investee to sustain an earnings capacity, justifying the carrying amount of the investment. Impairment losses are recognized in other expense when a decline in value is deemed to be other-than- temporary.

The Group also considers it has significant influence over the funds that it serves as general partner or fund manager. For funds that the Group is not deemed as the primary beneficiary, the equity method of accounting is accordingly used for these investments by the Group. In addition, the investee funds do not meet the definition of an Investment Company and are not required to report their investment assets at fair value. The Group records its equity pick-up based on its percentage ownership of the investee funds’ operating result.

As a result of the impairment analysis, the Group recorded an impairment of nil, RMB3,208 and nil in 2015, 2016 and 2017, respectively.

Accounts receivable, net of allowance

Accounts receivable mainly consist of franchise fee receivables, amounts due from corporate customers, travel agents, hotel guests and credit card receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific customers.

Loan receivables

Loan receivables are measured at amortized cost with interest accrued based on the contract rate. The Group classified loan receivables as long-term or short-term investments according to their contractual maturity or expected holding time. The Group evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the life of loans on an individual basis based on the Group’s past experiences, the borrowers’ financial position, their financial performance and their ability to continue to generate sufficient cash flows. A valuation allowance will be established for the loans unable to collect. No valuation allowance has been recorded in 2015, 2016 or 2017 based on the result of the assessment.

Inventories

Inventories mainly consist of small appliances, bedding and daily consumables. Small appliances and bedding for new hotels opened are stated at cost, less accumulated amortization, and are amortized over their estimated useful lives, generally one year, from the time they are put into use. Daily consumables and beddings replacement are expensed when used.

Property and equipment, net

Property and equipment, net are stated at cost less accumulated depreciation and amortization. The renovations, betterments and interest cost incurred during construction are capitalized. Depreciation and amortization of property and equipment is provided using the straight line method over their expected useful lives. The expected useful lives are as follows:

Leasehold improvements		Shorter of the lease term or their estimated useful lives
Buildings		20-40 years
Furniture, fixtures and equipment		3-10 years
Motor vehicles		5 years

Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use.

Expenditures for repairs and maintenance are expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive income as the difference between the net sales proceeds and the carrying amount of the underlying asset.

Intangible assets, net and unfavorable lease

Intangible assets consist primarily of brand name, master brand agreement, non-compete agreements, franchise agreements and favorable leases acquired in business combinations and purchased software. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets, including brand name, master brand agreement, non-compete agreements, franchise agreements and favorable lease agreements acquired from business combination are recognized and measured at fair value upon acquisition.

Non-compete agreements, franchise agreements and favorable lease agreements are amortized over the expected useful life, remaining franchise contract terms and remaining operating lease terms respectively. Unfavorable lease agreements from business combination transactions are recognized as other long-term liabilities and are amortized over the remaining operating lease terms. Purchased software is stated at cost less accumulated amortization.

Brand name is considered to have an indefinite life. Master brand agreement, acquired in Accor acquisition (Note 3), granted the Group the exclusive franchise rights in respect of “Mercure”, “Ibis” and “Ibis Styles” in the PRC, Taiwan and Mongolia and the non-exclusive franchise rights in respect of “Grand Mercure” and “Novotel” in the PRC, Taiwan and Mongolia with initial term of 70 years, and can be renewed without substantial obstacles. As a result, the useful life is also determined to be indefinite. Brand name of Crystal Orange is considered to have an indefinite life which granted the Group to use for its products and provide to other market players. The Group evaluates the brand name and master brand agreement each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group measures the impairment by comparing the fair value of brand name and master brand agreement with its carrying amount. If the carrying amount of brand name and master brand agreement exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. The Group measures the fair value of the brand name under the relief-from-royalty method, the master brand agreement under the multi-period excess earnings method. Management performs its annual brand name and master brand agreement impairment test on November 30.

Land use rights

Land use rights, which are all located in PRC, are recorded at cost and amortized on a straight-line basis over the remaining term of the land certificates, between 30 to 50 years.

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 RMB93,163, RMB150,533 and RMB169,213 during the years ended December 31, 2015, 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.

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets less liabilities acquired.

Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group completes a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. A reporting unit is identified as a component for which discrete financial information is available and is regularly reviewed by management. All the acquired business has been migrated to the Group’s business, and the Group’s management regularly reviews operation data including industrial metrics of revenue per available room, occupancy rate, and number of hotels by scale/brand, rather than discrete financial information for the purpose of performance evaluation and resource allocation. The Company concluded that it had only one reporting unit, and therefore the goodwill impairment testing was performed on consolidation level. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized in general and administrative expenses for any excess in the carrying value of goodwill over the implied fair value of goodwill. Management performs its annual goodwill impairment test on November 30.

The Group recognized goodwill impairment of RMB2,445, nil and nil for years ended December 31, 2015, 2016 and 2017, respectively.

Accruals for customer loyalty program

The Group invites its customers to participate in a customer loyalty program. The membership has an unlimited life. Members enjoy favorable treatment such as more convenient check-out procedures and late check-out, discounts on room rates and accumulate membership points for their paid stays or their purchasing of products and services provided in the hotels, which can be redeemed for offset the room charges, or used to buy products in Hua Zhu mall within two years after the points are earned. The estimated incremental costs to provide room night awards and other products are accrued and recorded as accruals for customer loyalty program as members accumulate points and are recognized as cost and expense in the accompanying consolidated statements of comprehensive income. As members redeem awards or their entitlements expire, the provision is reduced correspondingly. As of December 31, 2016 and 2017, the accruals for estimated liabilities under the customer loyalty program amounted to RMB121,066 and RMB156,092, respectively.

Deferred revenue

Deferred revenue generally consists of non-refundable advances received from customers for rental of rooms, cash received for membership fees and initial franchise fees received prior to the Group fulfilling its commitments to the franchisees.

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 years ended December 31, 2015, 2016 and 2017, the hotel manager fees that were recognized as revenue were RMB261,743, RMB321,346 and RMB371,625, 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 RMB130,644, RMB145,459 and RMB160,200 for the years ended December 31, 2015, 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.

Business tax and related taxes

The Group is subject to business tax, education surtax and urban maintenance and construction tax, on the services provided in the PRC. Such taxes are primarily levied based on revenue at applicable rates and are recorded as a reduction of revenues.

On 24 March 2016, the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) jointly published Caishui [2016] No. 36 (Circular 36), which provides the detailed implementation guidance on the further rollout of the Value-Added Tax (VAT) reform to sectors such as construction, real estate, financial services and lifestyle services. Circular 36 takes effect from 1 May 2016. Lifestyle services have a broad coverage to include a variety of services which are to meet the daily needs of the residents, and accommodation and associated services are included in such category with the applicable tax rate of 6%. As such, starting from May 2016, the accommodation services of the Group are subject to 6% of VAT.

Advertising and promotional expenses

Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income as incurred, and amounted to RMB47,971, RMB64,666 and RMB90,578 for the years ended December 31, 2015, 2016 and 2017, respectively.

Government grants

Government grants represent cash received by the Group in the PRC from local governments as incentives for investing in certain local districts, and are typically granted based on the amount of investments the Group made as well as income generated by the Group in such districts. Such subsidies allow the Group full discretion to utilize the funds and are used by the Group for general corporate purposes. The local governments have final discretion as to whether the Group has met all criteria to be entitled to the subsidies. Normally, the Group does not receive written confirmation from local governments indicating the approval of the cash subsidy before cash is received, and therefore cash subsidies are recognized when received and when all the conditions for their receipts have been satisfied. Government grants recognized were RMB28,188, RMB83,498 and RMB55,389 for the years ended December 31, 2015, 2016 and 2017, respectively, which were recorded as other operating income.

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 2017, deferred rent of RMB37,648 and RMB49,857 were recorded as other current liabilities and RMB1,023,843 and RMB1,380,484 were recorded as long-term liabilities, respectively.

Capitalization of interest

Interest cost incurred on funds used to construct leasehold improvements during the active construction period is capitalized. The interest capitalized is determined by applying the borrowing interest rate to the average amount of accumulated capital expenditures for the assets under construction during the period. The interest expense incurred for the years ended December 31, 2015, 2016 and 2017 were RMB5,383, RMB11,056 and RMB87,320, of which RMB1,529, nil and nil were capitalized as additions to assets under construction, respectively.

Income taxes

Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations.

Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. Net operating losses are carried forward and credited by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of the Group, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized.

Foreign currency translation

The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company is the United States dollar (“US dollar”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing on the day transactions occurred. Transaction gains and losses are recognized in the statements of comprehensive income.

Assets and liabilities are translated into RMB at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss in the consolidated statements of comprehensive income.

The financial records of the Group’s subsidiaries are maintained in local currencies, which are the functional currencies.

Comprehensive income

Comprehensive income includes all changes in equity except for those resulting from investments by owners and distributions to owners and is comprised of net income, foreign-currency translation adjustments and unrealized securities holding gains (losses).

Concentration of credit risk

Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term and long-term investments, loan receivables, amount due from related parties and accounts receivable.

All of the Group’s cash and cash equivalents and restricted cash are held with financial institutions that Group management believes to be high credit quality. In addition, the Group’s investment policy limits its exposure to concentrations of credit risk and the Group’s short-term and long-term investments consist of equity investments in listing and private companies. The Group’s loan receivables are lent to entities with high credit quality. The Group conducts credit evaluations on its group and agency customers and generally does not require collateral or other security from such customers. The Group periodically evaluates the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers.

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 Group’s financial instruments include cash and cash equivalent, restricted cash, loan receivables current and non-current portion, receivables, payables, short-term debt and long-term debt. The carrying amounts of these short-term financial instruments approximates their carrying value due to their short-term nature. The long-term debt and long-term loan receivable approximate their fair values, because the bearing interest rate approximates market interest rate, and market interest rates have not fluctuated significantly since the commencement of loan contracts signed. 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 2017, cost-method investments were RMB172,571 and RMB355,717, 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 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
Years Ended December 31,	Description	Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
2016	Long-term available-for-sale securities	247,085	204,945	42,140
2017	Short-term trading securities	129,911	129,911
2017	Long-term available-for-sale securities	1,253,786	907,716	346,070

The following table presents the Group’s assets measured at fair value on a non-recurring basis for the years ended December 31, 2015, 2016 and 2017:

			Fair Value Measurements at Reporting Date Using
Years Ended December 31,	Description	Fair Value for Years Ended December 31	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 Year
2015	Property and equipment	21,879			21,879	93,163
2015	Goodwill	—			—	2,445
2016	Property and equipment	20,706			20,706	150,533
2016	Long-term investments	—			—	3,208
2017	Property and equipment	51,750			51,750	169,213

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 RMB115,042, RMB171,239 and RMB220,963 was not fully recoverable and consequently recorded an impairment charge of RMB93,163, RMB150,533 and RMB169,213 for the years ended December 31, 2015, 2016 and 2017, respectively. The Group also determined that the goodwill amount with a carrying amount of RMB2,445, nil and nil was impaired as a result of the impairment assessment for the years ended December 31, 2015, 2016 and 2017. As a result of the impairment assessment, the Group determined that the long term investment amount with a carrying amount of nil, RMB3,208 and nil was impaired as a result of the impairment assessment for the years ended December 31, 2015, 2016 and 2017.

Fair value of the property and equipment as well as the reporting units for goodwill impairment testing 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 years ended December 31, 2015, 2016 and 2017.

Share-based compensation

The Group recognizes 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 over the period in which the grantee is required to provide service to the Group in exchange for the equity award. Vesting of certain equity awards are based on the performance conditions for a period of time following the grant date. Share-based compensation expense is recognized according to the Group’s judgement of likely future performance and will be adjusted in future periods based on the actual performance. 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 years ended December 31, 2015, 2016 and 2017, the Group recognized share-based compensation expenses of RMB52,535, RMB55,436 and RMB66,367, respectively, which was classified as follows:

	Years Ended December 31,
	2015	2016	2017
Hotel operating costs	8,835	13,603	19,725
Selling and marketing expenses	907	811	1,530
General and administrative expenses	42,793	41,022	45,112

Total	52,535	55,436	66,367

Earnings per share

Basic earnings per share is computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares, which consist of the ordinary shares issuable upon the conversion of the convertible senior notes (using the if-converted method) and ordinary shares issuable upon the exercise of stock options and vest of nonvested restricted stocks (using the treasury stock method).

The loaned shares under the ADS Lending Agreement are excluded from both the basic and diluted earnings per share calculation unless default of the ADS lending arrangement occurs which the Group considered the possibility is remote.

Segment reporting

The Group identifies a business as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information. The Group’s chief operating decision maker has been identified as the chief executive officer. CODM regularly reviews the operation data, such as industrial metrics of revenue per available room, occupancy rate, and number of hotels by scale/brand, to assess the performance and allocate the resources. All the acquired business including Accor and Crystal Orange has been migrated to the Group’s business, and the Group operates and manages its business as a single segment. Therefore, the Group has one single operating segment.

The Group primarily generates its revenues from customers in the PRC. Substantially all of the Group’s long-lived assets are located in the PRC.

Treasury shares

Treasury shares represent shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury shares are accounted for under the cost method. As of December 31, 2017, under the repurchase plan, the Company had repurchased an aggregate of 3,096,764 ordinary shares on the open market for total cash consideration of RMB107,331. The repurchased shares were presented as “treasury shares” in shareholders’ equity on the Group’s consolidated balance sheets.

New Accounting Pronouncements Recently Adopted

In March 2016, the FASB issued ASU 2016-07, which eliminates the requirement to retroactively adopt the equity method of accounting. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Group adopted the ASU effective January 1, 2017 and there was no impact on the Group’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. For public entities, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. The new standard requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid in capital pools, prospectively. In addition, excess tax benefits shall be classified as an operating activity rather than financing activity flows using either a prospective transition method or a retrospective transition method. The Group adopt the ASU on January 1, 2017. The adoption of ASU 2016-09 resulted in a decrease in our provision for income taxes of RMB46,235 in fiscal year 2017, due to the recognition of excess of tax benefits for options exercised and the vesting of equity awards in year 2017. The Group adopted the cash flow presentation retrospectively and accordingly, excess tax benefits from equity-based compensation of RMB46,235 in fiscal year 2017 are presented as an operating activity, and RMB12,838 and RMB18,645 for fiscal years 2015 and 2016 were reclassified from financing activities to operating activities.

New Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) which amended the existing accounting standards for revenue recognition. The core principle of the new guidance is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new guidance also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple element arrangements. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . The Company must adopt ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). The new revenue standards may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (the modified retrospective method). The new revenue standards become effective for the Group on January 1, 2018. The Group currently anticipates adopting the new revenue standards using the full retrospective method. While the Group continue to evaluate possible impacts on our consolidated financial statements, ASU 2014-09 and the related ASUs are currently expected to impact either the amount or timing of revenue recognition as follows:

Under existing guidance, initial one-time franchise fee was recognized when the hotels opened for business and the Group had fulfilled its commitments and obligations. Upon adoption of new revenue standards the one-time franchise fee will be recognized over the term of the franchise contract. This change is expected to reduce franchise revenue by approximately RMB17,003 for year 2017.

Under existing guidance, the Group adopted the incremental cost model to account for customer loyalty program. The estimated incremental costs, net of the reimbursement received from the franchisees, are accrued and recorded as accruals for customer loyalty program as members accumulate points and are recognized as cost and expense in the accompanying consolidated statements of comprehensive income. Under the new revenue standards, loyalty program is considered a separate performance obligation and the consideration allocated to the loyalty program will be recognized as revenue upon point redemption, net of any cost paid to the franchisees and other third parties. These changes are expected to increase total revenues and operating expenses by RMB68,607 and RMB63,469 respectively for year 2017.

The new standard will require the Group to provide more robust disclosures than required by previous guidance, including disclosures related to disaggregation of revenue into appropriate categories, performance obligations, and the judgments made in revenue recognition determinations.

In January, 2016, the FASB issued ASU No. 2016-01, to improve the recognition and measurement of financial instruments. The new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The guidance also eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities and the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Upon adoption, the unrealized gains (losses), net of tax, on the Available-for-Sale Securities will be reclassified from accumulated other comprehensive loss to retained earnings as of January 1 2018. The reclassification is estimated to be approximately RMB40,640 at January 1, 2018. Subsequent changes in fair value will be recognized in net income on the consolidated statements of income. The Group does not expect that other requirements of ASU 2016-01 will have a material impact on the consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU will be effective for fiscal years beginning after December 15, 2018 for public entities, and for all other organizations, it will be effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Group expects material changes to its consolidated balance sheet. As of December 31, 2017, the Group has RMB25,087,674 of future minimum operating lease commitments that are not currently recognized on its consolidated balance sheets (Note 22).

In August, 2016, the FASB issued ASU 2016-15, which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The ASU’s amendments add or clarify guidance on eight cash flow issues, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for all entities. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively from the earliest date practicable if retrospective application would be impracticable. The Group does not expect the adoption of this ASU will have a significant impact on the consolidated financial statements.

In October, 2016, the FASB issued ASU 2016-16, which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The ASU, which is part of the Board’s simplification initiative, is intended to reduce the complexity of U.S. GAAP and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property. For public business entities, the ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of a fiscal year for which neither the annual or interim (if applicable) financial statements have been issued or made available for issuance. The Group does not expect the adoption of this ASU will have significant impact on the consolidated financial statements.

In November, 2016, the FASB issued ASU 2016-18, which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. Under ASU 2016-18, restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statements of cash flows. This ASU should be applied retrospectively and becomes effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, but early adoption is permitted. As a result of this update, restricted cash will be included within cash and cash equivalents on the statements of consolidated cash flows. The Group expects the adoption of this ASU will impact its cash flow statements to the extent of restricted cash. The balance of restricted cash of the Group are RMB500 and RMB481,348 as of December 31, 2016 and 2017, respectively.

In January 2017, the FASB issued ASU No. 2017-01, which clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework establishes a screen for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. This ASU is effective for fiscal years, and for interim periods within those fiscal years beginning after December 15, 2017. The Group does not expect the adoption of this ASU will have a significant impact on the consolidated financial statements.

In January, 2017, the FASB issued ASU 2017-04, which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the ASU clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units in connection with an entity’s testing of reporting units for goodwill impairment. The ASU also clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. For public business entities, the ASU is effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group is in the process of evaluating the impact on the consolidated financial statements.

In May, 2017, the FASB issued ASU 2017-09, which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The statement is effective for annual periods beginning after December 15, 2017. Early adoption is permitted in any interim or annual period for which financial statements have not yet been issued. The Group does not expect the adoption of this ASU will have significant impact on the consolidated financial statements.

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 = RMB6.5063, on December 31, 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 December 31, 2017, or at any other rate.

ACQUISITIONS

12 Months Ended

Dec. 31, 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 consideration amounted to RMB1,143,521, which was measured at the market price of the 24,895,543 ordinary shares on the issuance date and cash consideration of RMB120,439.

The net revenue and net income of the acquiree included in the consolidated statements of operations 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 years ended December 31, 2015 and 2016 assuming that the acquisition occurred as of January 1, 2015. 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, 2015.

	Year Ended December 31, 2015	Year Ended December 31, 2016
Pro forma net revenue	5,955,538	6,548,083
Pro forma net income	478,770	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
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) On May 25, 2017, the Group completed the acquisition of 100% of the equity interest of Crystal Orange Hotel Holdings Limited (the “Crystal Orange”) engaged in the business of owning, leasing, franchising, operating and managing hotels under Crystal Orange brands in the midscale market in the PRC, with an aggregated consideration in cash of approximately RMB3.76 billion.

The net revenue and net income of the acquiree included in the consolidated statements of operations for the year ended December 31, 2017 were RMB776,922, and RMB100,197, respectively.

The following table summarizes unaudited pro forma results of operation for the years ended December 31, 2016 and 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.

	Years Ended December 31,
	2016	2017
Pro forma net revenue	7,473,851	8,571,372
Pro forma net income	858,012	1,275,788

The Group incurred transaction cost of RMB46 million for the acquisition, which was expensed in 2017. In addition, Crystal Orange incurred certain costs directly attributable to the business combination including RMB256.3 million related to the consultation services agreements and option cancellation agreement. These expenses are non-recurring in nature, and were eliminated from the calculation of pro forma net income above.

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

	2017		Amortization Period
Current assets	137,314
Property and equipment	842,102		3-20 years
Favorable leases	90,704		remaining lease terms
Franchise agreement	58,691		remaining contract terms
Brand Name	1,141,793		indefinite life
Goodwill	2,093,254
Other noncurrent assets	130,813
Current liabilities	(222,205	)
Noncurrent liabilities	(179,985	)
Deferred tax liabilities	(322,797	)
Noncontrolling interest	(4,206	)

Total	3,765,478

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. In accordance with ASC 350, the Group assigned and assessed goodwill for impairment at the reporting unit level. All the acquired business has been migrated to the Group’s business. The Group concluded that it had only one reporting unit. Accordingly goodwill is allocated to one single reporting unit.

(iii) During the years ended December 31, 2015, 2016 and 2017, the Group acquired one hotel chain and two individual hotels, two individual hotels, and two individual hotels for total cash consideration of RMB127,226, RMB3,000 and nil, respectively. The individual hotels were in the form of leased hotel and the hotel chain acquired contained 13 leased hotels and several manachised and franchised hotels. The business acquisitions were accounted for under purchase accounting.

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

	2015		2016		2017		Amortization Period
Current assets	3,382		5,330		8,018
Property and equipment	74,222		28,412		33,965		5-10 years
Favorable leases	41,283		5,004		31,508		remaining lease terms
Deferred tax assets	515		—		—
Franchise agreements	3,300		—		—		remaining contracts terms
Goodwill	46,135		—		—
Other noncurrent assets	663		—		—
Current liabilities	(22,864	)	(34,495	)	(65,614	)
Deferred tax liabilities	(11,146	)	(1,251	)	(7,877	)
Noncontrolling interest	(8,264	)	—		—

Total	127,226		3,000		—

SHORT-TERM INVESTMENTS MEASURED AT FAIR VALUE

12 Months Ended

Dec. 31, 2017

SHORT-TERM INVESTMENTS MEASURED AT FAIR VALUE

SHORT-TERM INVESTMENTS MEASURED AT FAIR VALUE

4.SHORT -TERM INVESTMENTS MEASURED AT FAIR VALUE

The short-term investments measured at fair value as of December 31, 2016 and 2017 were as follows:

	As of December 31,
	2016	2017
Hotel Group A	—	129,911

In 2015, the Group purchased 2,282,951 ADS of HOMEINNS HOTEL GROUP (“HMIN”), a hotel chain listed in NASDAQ in the USA, from open market for consideration of RMB434,811. As of December 31, 2015, the Group holds approximately 5% of HMIN’s total outstanding shares. Given the level of investment, the Group accounts for its investment in HMIN 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 all the 2,282,951 ADS and reclassified the accumulated unrealized gain of RMB67,921 from other comprehensive income to other income accordingly.

In 2017, the Group purchased 8,756,000 shares of Hotel Group A, a public listed hotel group, from open market for consideration of RMB95,802. As of December 31, 2017, the Group holds less than 1% of Hotel Group A’s total outstanding shares. Considering the purpose of the investment, the Group accounts for its investment in Hotel Group A as “trading securities” and measured the fair value at every period end. The changes of fair value for trading securities are reported in other income. As of December 31, 2017, the Group recorded the investment in Hotel Group A at the fair value of RMB129,911, with the fair value increase of RMB35,540 recorded to other income.

LOAN RECEIVABLES

12 Months Ended

Dec. 31, 2017

LOAN RECEIVABLES

LOAN RECEIVABLES

5.LOAN RECEIVABLES

The loan receivables, current and non-current portion, as of December 31, 2016 and 2017 were as follows:

	As of December 31,
	2016	2017
Loan receivables, current portion
Loan receivables from franchisees	14,649	29,754
Loan receivables from other entities	7,761	350,826

Total	22,410	380,580

Loan receivables, non-current portion
Loan receivables from franchisees	7,269	31,534
Loan receivables from other entities	—	10,796

Total	7,269	42,330

The Group entered into entrusted loan agreements with certain franchisees with the typical terms to be two to three years and annual interest rates ranging from 8.0% to 8.5%. The Group recognized RMB2,110, RMB2,383 and RMB2,608 interest income for these entrusted loans in 2015, 2016 and 2017, respectively.

Loan receivables from other entities represent the loans the Group lent to other un-related third-parties with the annual interest rates ranging from 6% to 12%. The Group recognized RMB2,273, RMB1,186 and RMB8,471 interest income for the loans in 2015, 2016 and 2017, respectively.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2017

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

6.PROPERTY AND EQUIPMENT, NET

Property and equipment, net consist of the following:

	As of December 31,
	2016		2017
Cost:
Buildings	255,646		247,406
Leasehold improvements	5,563,815		6,452,472
Furniture, fixtures and equipment	925,174		1,033,941
Motor vehicles	820		820

	6,745,455		7,734,639
Less: Accumulated depreciation	(3,196,496	)	(3,706,856	)

	3,548,959		4,027,783
Construction in progress	161,509		495,095

Property and equipment, net	3,710,468		4,522,878

Depreciation expense was RMB648,277, RMB673,784 and RMB752,960 for the years ended December 31, 2015, 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.

The Group demolished one, two and three leased hotels due to local government zoning requirements in 2015, 2016 and 2017, respectively. As a result, the Group wrote off property and equipment of RMB2,301, RMB9,905 and RMB2,829 associated with respective hotels and recognized a gain of RMB5,519 and losses of RMB7,205 and RMB868 as other operating income (expenses) in 2015, 2016 and 2017, respectively.

As of December 31, 2017, the Group has been formally notified by local government authorities that seven additional leased hotels of the Group will be demolished due to local government zoning requirements. The aggregate carrying amount of property and equipment at the associated hotels was RMB21,792 as of December 31, 2017. Neither of the associated hotels has recorded intangible assets or goodwill. No impairment was recognized because the expected cash flow to be received as a result of the demolition will 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

12 Months Ended

Dec. 31, 2017

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE

7.INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE

Intangible assets, net consist of the following:

	As of December 31,
	2016		2017
Intangible assets with indefinite life:
Brand name (Note 3)	28,600		1,170,393
Master brand agreement (Note 3)	192,000		192,000
Intangible assets with definite life:
Franchise agreements	11,000		69,691
Non-compete agreement	400		400
Favorable lease agreements	135,874		255,657
Purchased software	55,101		64,694

Total	422,975		1,752,835
Less: Accumulated amortization	(80,281	)	(108,863	)

Total	342,694		1,643,972

Unfavorable lease

	As of December 31,
	2016		2017
Unfavorable lease agreements	3,924		3,924
Less: Accumulated amortization	(3,102	)	(3,232	)

Unfavorable lease agreements, net	822		692

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 years ended December 31, 2015, 2016 and 2017 amounted to RMB13,415, RMB17,173 and RMB31,009, respectively.

The annual estimated amortization expense for the above intangible assets and unfavorable lease excluding brand name and master brand agreement for the following years is as follows:

	Amortization for Intangible Assets	Amortization for Unfavorable Lease		Net Amortization
2018	33,404	(130	)	33,274
2019	31,885	(130	)	31,755
2020	30,830	(130	)	30,700
2021	29,490	(130	)	29,360
2022	27,440	(130	)	27,310
Thereafter	128,530	(42	)	128,488

Total	281,579	(692	)	280,887

LAND USE RIGHTS

12 Months Ended

Dec. 31, 2017

LAND USE RIGHTS

LAND USE RIGHTS

8.LAND USE RIGHTS

Land use rights consist of the following:

	As of December 31,
	2016		2017
Land use rights (Note 3)	149,668		149,668
Less: Accumulated amortization	(4,147	)	(9,560	)

Total	145,521		140,108

Amortization expense of land use rights for the years ended December 31, 2016 and 2017 amounted to RMB4,147 and RMB5,413, respectively.

LONG-TERM INVESTMENTS

12 Months Ended

Dec. 31, 2017

LONG-TERM INVESTMENTS

LONG-TERM INVESTMENTS

9.LONG-TERM INVESTMENTS

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

	As of December 31,
	2016			2017
	Ownership%		Amount	Ownership%		Amount
Available-for-sale securities:
Quanjude			159,305			127,444
Tang Palace			18,856			—
Banyan Tree			26,784			—
Hotel Group B			—			780,272
Cjia			42,140			246,070
CREATER			—			100,000
Cost-method investments:
UBOX/BJ UBOX	3	%	48,220	2	%	33,822
BJ GOOAGOO/GOOAGOO	19	%	60,000	19	%	60,000
Founder Service	11	%	45,000	11	%	45,000
Qingpu	10	%	17,143	5	%	17,143
Mobike	—		—	Less than 1	%	66,288
Blossom Hill	—		—	11	%	60,194
OYO	—		—	1	%	66,467
Other investments			2,208			6,803
Equity-method investments:
Sheen Star	20	%	20,862	20	%	20,864
Distrii	39	%	28,562	18	%	45,156
AAPC LUB	28	%	446,100	28	%	477,560
China Young	37	%	43,054	37	%	40,811
CREATER	20	%	100,000	20	%	102,709
Hitone	—		—	20	%	30,300
Hanmo	—		—	60	%	26,000
Other investments			6,087			9,066

Total			1,064,321			2,361,969

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 RMB100,000. Upon the closing of the transaction described above, the Group holds approximately 2% of Quanjude’s total outstanding shares.

In December 2017, the Group purchased 2,309,981 ordinary shares of Hotel Group B, a public listed hotel group, from open market for consideration of RMB760,215. As of December 31, 2017, the Group holds less than 1% of Hotel Group B’s total outstanding shares.

Given the level of investments, the Group accounts for its investments in Quanjude, Tang Palace, Banyan Tree, and Hotel Group B 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. For the years ended December 31, 2016 and 2017, the Group recorded RMB4,856 decrease and RMB868 increase in fair value of these available-for-sale securities, net of tax, in other comprehensive income, respectively.

In May 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 a sixty-month convertible note with original value of RMB51,200. In 2017, the Group invested in Cjia for another two convertible notes totaled RMB200,300. With the injection from an unrelated investor to Cjia, the Group recognized gain on deemed disposal of RMB40,148 in other income in 2017. As of December 31, 2017, the Group had approximately 17% equity interest and three convertible notes with original value totaled RMB251,500 of Cjia. The Group accounted for the equity investment in Cjia under equity-method as the Group has the ability to exert significant influence. The convertible notes are convertible upon satisfaction of certain conditions or at the option of the Group to ordinary shares at any time, while other investors can also require the Group to convert within the last twelve months of the notes. The convertible note is recorded as an available-for-sale investment. Meanwhile, the Group recognized investment loss of RMB24,615 and RMB32,711 in income (loss) from equity method investments in 2016 and 2017, respectively. Loss from equity method investments reduced the cost of equity-method investment to zero and further adjusted the carrying amount of convertible notes balance to RMB42,140 and RMB246,070 for the years ended December 31, 2016 and 2017, respectively. The remaining carrying amount of the convertible notes approximated its fair value as of December 31, 2016 and 2017.

In September 2017, the Group invested in Shanghai CREATER Industrial Co., Ltd. (“CREATER”), a staged office space company in China, for two-year convertible notes amounted RMB100,000 with the interest rate of 10% per year. The convertible notes with equity pledge are convertible upon satisfaction of certain conditions or at the option of the Group to ordinary shares in the last month before the expiration. The convertible notes are recorded as available-for-sale investments.

Cost-method investments:

In November 2014, the Group purchased approximately 8% equity interest in Beijing GOOAGOO Technology Service Co., Ltd. (“BJ GOOAGOO”), a high-tech service provider for Offline-To-Online data processing and platform operation, for the consideration of RMB10,289. BJ GOOAGOO started restructuring process in 2015. In September 2015, the Group purchased 45,000,000 series A preferred share for the consideration of RMB45,000 and RMB4,650 convertible notes in Gooagoo Group Holdings Limited (“GOOAGOO”). Each series A preferred share and convertible note shall be convertible at the option of the holder at any time to ordinary shares. As a result of restructuring of GOOAGOO group in 2016, the Group’s investments in BJ GOOAGOO had been all converted to equity interest of GOOAGOO. As of December 31, 2016 and 2017, the Group had approximately 19% equity interest of GOOAGOO. The Group accounted for the investment under cost method since the Group does not have the ability to exert significant influence over those companies.

In January 2017, the Group purchased 1,316,205 preferred shares for consideration of US$5.0 million and invested in convertible notes with principal amount of US$5.0 million 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. In November 2017, the Group disposed 55,015 shares, and recognized a loss of RMB53 in other income, net. As of December 31, 2017, the Group had less than 1% equity interest of Mobike. The investment in preferred shares of Mobike is not considered to be in-substance common stock. As a result, the Group accounted the investment under cost method.

In September 2017, the Group purchased approximately 1% equity interest of Oravel Stays Private limited (“OYO”), an India leading hospitality company, for the consideration of RMB66,467. The Group accounted the investment under cost method since the Group does not have the ability to exert significant influence over OYO.

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 2017, the Group sold 6% of Distrii’s equity interest for consideration of RMB18,000 and aggregately recognized gain of RMB42,097 along with the deemed disposal as a result of the capital injection from unrelated investors. As of December 31, 2017, the Group had approximately 18% 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 through the Group’s board member, and recognized investment loss of RMB6,438 and RMB7,503 in income (loss) from equity method investments in 2016 and 2017, respectively.

In January 2016, the Group acquired approximately 28% equity interest in AAPC LUB (Note 3). The Group accounted for the investment in AAPC LUB under equity-method as the Group has the ability to exert significant influence. The Group recognized investment income of RMB28,496 and RMB31,459 in income (loss) from equity method investments in 2016 and 2017, respectively.

In 2016, the Group accumulatively purchased 982 ordinary shares and 5,610 Series B Preferred Shares of China Young Professionals Apartment Management Limited (“China Young”), which in total accounts for approximately 37% of its equity interest, for consideration of RMB44,904. Each series B preferred shares shall be convertible at the option of the holder at any time to ordinary shares. The Group accounted for the investment in China Young under equity-method as the Group has the ability to exert significant influence. The Group recognized investment loss of RMB1,851 and RMB2,243 in income (loss) from equity method investments in 2016 and 2017, respectively.

In December 2016, the Group acquired approximately 20% equity interest in CREATER for consideration of RMB100,000. The Group accounted for the investment under equity-method because the Group has the ability to exert significant influence over CREATER. The Group recognized investment gain of nil and RMB2,709 in income (loss) from equity method investments in 2016 and 2017, respectively.

In September 2017, the Group invested approximately 20% and 60% equity interest in Shenzhen Hitone Investment Fund (“Hitone”) and Shenzhen Hanmo Investment Fund (“Hanmo”), limited partnership enterprises, for consideration of RMB30,300 and RMB26,000, respectively. Hitone and Hanmo were VIEs. However, the Group determined that they were not the primary beneficiary of this VIE since the Group did not have the power to direct the activities of these VIEs that most significantly impacted its economic performance. The Group accounted for the investment under equity-method because the Group has the ability to exert significant influence over Hitone and Hanmo. The Group recognized investment gain of nil in income (loss) from equity method investments in 2017. The maximum potential financial statement loss the Group could incur if the investment funds were to default on all of their obligations is the loss of value of the interests in such investments of RMB56,300 that the Group holds as of December 31, 2017.

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

GOODWILL

12 Months Ended

Dec. 31, 2017

GOODWILL

GOODWILL

10.GOODWILL

The changes in the carrying amount of goodwill for the years ended December 31, 2015, 2016 and 2017 were as follows:

	Gross Amount	Accumulated Impairment Loss		Net Amount
Balance at January 1, 2015	66,650	(1,996	)	64,654
Increase in goodwill related to acquisitions	46,135	—		46,135
Impairment losses recognized	—	(2,445	)	(2,445	)

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	2,093,254	—		2,093,254

Balance at December 31, 2017	2,269,199	(4,441	)	2,264,758

DEBT

12 Months Ended

Dec. 31, 2017

DEBT

DEBT

11.DEBT

The short-term and long-term debt as of December 31, 2016 and 2017 were as follows:

	As of December 31,
	2016	2017
Short-term debt:
Long-term bank borrowings, current portion	—	131
Short-term bank borrowings	298,291	130,684

Total	298,291	130,815


Long-term debt:
Long-term bank borrowings, non-current portion	—	1,894,722
Convertible senior notes	—	3,027,052

Total	—	4,921,774

Bank borrowings

In September 2012, the Group entered into a three-year revolving bank credit facility under which the Group can draw-down up to RMB300,000 by October 9, 2015. In December 2013, the Group renewed the bank credit facility under which the Group can borrow up to RMB500,000 by December 11, 2016. The interest rate for this credit facility was determined on the draw-down date and the credit facility was not collateralized. From 2013 to 2015, the Group has drawn down the credit facility of RMB204,540 and repaid all of them. The weighted average interest rate for borrowings drawn under such credit facility was 6.0% and 5.61% for the years ended December 31, 2013 and 2015, respectively. This facility expired on December 11, 2016.

In July 2015, the Group entered into a one-year bank loan contract, under which the Group can borrow up to US$50 million for the period ended June 30, 2016, and the Group had a RMB360,000 deposit pledged accordingly. The interest rate of this borrowing is based on the three-month London Interbank Offered Rate (“Libor”) on draw-down date plus 1.2%. In 2015, the Group had drawn down US$50 million under this contract and fully repaid the amount in 2016. The weighted average interest rate for borrowings drawn under such credit facility was 1.50% and 1.81% for the years ended December 31, 2015 and 2016, respectively.

In January 2016, the Group entered into a one-year bank revolving loan contract under which the Group can borrow up to US$43 million for the period ended January 1, 2017. The interest rate is based on the one-, two- or three-month Libor on draw-down date plus no less than 2%. In 2016, the Group had drawn down US$43 million under this agreement and fully repaid the amount in 2017. The weighted average interest rate of borrowings drawn under this agreement was 2.70% and 2.88% for the years ended December 31, 2016 and 2017, respectively.

In May 2016, the Group entered into a one-year revolving corporation overdraft facility agreement under which the Group can borrow up to RMB50,000, of which each draw-down should last no longer than three months, by May 16, 2017. The interest rate for each draw-down is established on the draw-down date and is based on the People’s Bank of China’s one-year benchmark interest rate for loans on the draw-down date. As of December 31, 2016, the Group had drawn down nil under this agreement. This facility expired on May 17,2017.

In September 2016, the Group entered into a one-year revolving general credit facility under which the Group can borrow up to RMB200,000 by September 30, 2017. The interest rate for each draw-down will be established in each draw-down agreement. In 2017, the Group had drawn down RMB1,000 under this contract and fully repaid the amount. The interest rate was 4.4%. This facility expired on September 30, 2017.

In February 2017, the Group entered into a three-year revolving general credit facility under which the Group can borrow up to RMB500,000 by February 2020. The interest rate for each draw-down will be established in each draw-down agreement. As of December 31, 2017, the Group had not drawn down any amount under this contract.

In April 2017, the Group entered into a three-year bank loan contract under which the Group can borrow up to US$40 million by September 30, 2017, and the Group had a RMB307,000 deposit pledged accordingly. The interest rate is based on the three-month Libor on draw-down date plus 1.4%. In 2017, the Group had drawn down US$40 million under this agreement and repaid US$0.01 million. As of December 31,2017, according to the contract, there are US$0.02 million needs to be repaid within one year, which was recorded in current portion. The weighted average interest rate of borrowings drawn under this agreement was 2.68% for the years ended December 31, 2017.

In May 2017, the Group entered into an US$250 million term facility and US$250 million revolving credit facility agreement with several banks. The US$250 million 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 coverage ratio, leverage and tangible net worth related to this facility and the Group was in compliance as of December 31, 2017. In 2017, the Group had drawn down US$250 million under the term facility agreement and repaid nil. For revolving credit facility agreement, the Group had drawn down US$250 million in May 2017 and fully repaid the amount in November 2017. The weighted average interest rate of borrowings drawn under this agreement was 3.04% for the years ended December 31, 2017.

In June 2017, the Group entered into a one-year bank loan contract under which the Group can borrow up to US$20 million for the period ended May 31, 2018, and the Group had a RMB160,000 deposit pledged accordingly. The interest rate is based on the twelve-month Libor on draw-down date plus 1.5%. In 2017, the Group had drawn down US$20 million under this agreement and repaid nil. The weighted average interest rate of borrowings drawn under this agreement was 3.22% for the years ended December 31, 2017.

Convertible Senior Notes due 2022

On November 3, 2017, the Company issued US$475 million of Convertible Senior Notes (“the Notes”). The Notes mature on November 1, 2022 and bear interest at a rate of 0.375% per annum, payable in arrears semi-annually on May 1 and November 1, beginning May 1, 2018.

Holders of the Notes have the option to convert their Notes at any time prior to the close of business on the second business day immediately preceding the maturity date. The Notes can be converted into the Company’s ADSs at an initial conversion rate of 5.4869 of the Company’s ADSs per US$1,000 principal amount of the Notes (equivalent to an initial conversion price of US $182.25 per ADS). The conversion rate is subject to adjustment in some events but is not adjusted for any accrued and unpaid interest. In addition, following a make-whole fundamental change (as defined in the Indenture) that occur prior to the maturity date or following the Company’s delivery of a notice of a tax redemption, the Company will increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or such tax redemption.

The holders may require the Company to repurchase all or portion of the Notes for cash on November 3, 2020, or upon a fundamental change, at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest. The Company believes that the likelihood of occurrence of events considered a fundamental change is remote.

The conversion option meets the definition of a derivative. However, since the conversion option is considered indexed to the Company’s own stock and classified in stockholders’ equity, the scope exception is met, accordingly the bifurcation of conversion option from the Notes is not required. There is no beneficial conversion feature (“BCF”) attribute to the Notes as the set conversion prices for the Notes are greater than the respective fair values of the ordinary share price at date of issuance.

The feature of mandatory redemption upon maturity is clearly and closely related to the debt host and this feature is no need to be bifurcated. Furthermore, the Company concluded that the feature of contingent put options upon tax events or fundamental changes does not need to be considered as an embedded derivative to be bifurcated.

Therefore, the Company accounted for the Notes in accordance with ASC 470, as a single instrument under long-term debt. Issuance costs related to the Notes is recorded in consolidated balance sheet as a direct deduction from the principal amount of the Notes, and is amortized over the period from November 3, 2017, the date of issuance, to November 1, 2020, the first put date of the Notes, using the effective interest method.

Proceeds to the Company were RMB3,092,850 (equivalently US$466,866,463), net of issuance costs of RMB53,882 (equivalently US$8,133,537).

ADS Lending Arrangement

Concurrent with the offering of the Notes, the Company entered into ADS lending agreements with the affiliates of the initial purchasers of the Notes (“ADS Borrowers”), pursuant to which the Company lent to the ADS Borrowers 2,606,278 ADSs (the “Loaned ADSs”) at a price equal to par, or $0.0004 per ADS (“ADS lending arrangement”). The purpose of the ADS lending arrangements is to facilitate privately negotiated transactions in which the ultimate holders of the Notes may elect to hedge their investment in the related notes. As of December 31, 2017, the outstanding number of Loaned ADSs was 2,606,278.

The Loaned ADSs must be returned to the Company by the earliest of (a) the maturity date of the Notes, November 1, 2022, (b) upon the Company’s election to terminate the ADS lending agreement at any time after the later of (x) the date on which the entire principal amount of the Notes ceases to be outstanding, and (y) the date on which the entire principal amount of any additional convertible securities that the Company has in writing consented to permit the ADS Borrower to hedge under the ADS lending agreement ceases to be outstanding, in each case, whether as a result of conversion, redemption, repurchase, cancellation or otherwise; and (c) the termination of the ADS lending agreement. The Company is not required to make any payment to the initial purchasers or ADS Borrower upon the return of the Loaned ADSs. The ADS Borrowers do not have the choice or option to pay cash in exchange for the return of the Loaned ADSs.

No collateral is required to be posted for the Loaned ADSs. The initial purchasers are required to remit to the Company any dividends paid to the holders of the Loaned ADSs. An ADS Borrower has the ability to vote without restriction. However, the ADS Borrowers have agreed not to vote on the Loaned ADSs.

In accordance with FASB ASC Sub-topic 470-20, the Company has accounted for the ADS lending agreement initially at fair value and recognized it as an issuance cost associated with the convertible debt offering. As a result, additional debt issuance costs of RMB26,499 (equivalently US$4,000,000) were recorded on the issuance date with a corresponding increase to additional paid-in-capital. This debt issuance costs have also been amortized from the date of issuance to the put date of Notes, using the effective interest method.

In accordance with ASC Topic 470-20, although legally issued, the Loaned ADSs are not considered outstanding, and then excluded from basic and diluted earnings per share unless default of the ADS lending arrangement occurs, at which time the Loaned ADSs would be included in the basic and diluted earnings per share calculation. As of December 31, 2017, it is not probable that the ADS Borrower or the counterparty to the ADS lending arrangement will default.

Capped Call Options

In connection with the issuance of the Notes, the Company has entered into capped call option transactions with some of the initial purchasers or their affiliates (the “Option Counterparties”) to reduce the potential dilution to existing shareholders of the Company upon conversion of the Notes. The cap price of the capped call transactions will initially be US$221.31 per ADS, subject to adjustment under the terms of the capped call transactions. The total premium paid by the Company for the capped call transactions was RMB177,476 (equivalently US$26,790,000) on the purchased date. The capped call option is classified in stockholders’ equity, recorded at the cost with no subsequent changes in fair value be recorded.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2017

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

	As of December 31,
	2016	2017
Payable for business acquisitions	171,484	117,617
Accrual for customer loyalty program	121,066	156,092
Payable to noncontrolling interest holders	34,791	86,896
Payable to franchisees	212,242	418,293
Other payables	170,944	262,086
Accrued rental	66,804	84,423
Accrued utilities	46,379	61,748
Deferred rent, current	37,648	49,857
Other accrued expenses	34,479	27,890

Total	895,837	1,264,902

From time to time, the Group receives cash advances from noncontrolling interest holders of hotels that are not wholly owned by the Group. Such advances are non-interest bearing and are payable within one year. Payable to franchisees mainly represents room charges received on behalf of franchisees and are payable within one year.

HOTEL OPERATING COSTS

12 Months Ended

Dec. 31, 2017

HOTEL OPERATING COSTS

HOTEL OPERATING COSTS

13.HOTEL OPERATING COSTS

Hotel operating costs include all direct costs incurred in the operation of the leased and owned hotels, manachised and franchised hotels and consist of the following:

	Years Ended December 31,
	2015	2016	2017
Rents	1,804,532	1,870,879	2,058,954
Utilities	341,620	345,615	365,100
Personnel costs	919,555	1,088,380	1,388,284
Depreciation and amortization	645,058	676,996	773,202
Consumable, food and beverage	485,099	494,764	550,513
Others	316,283	455,539	538,098

Total	4,512,147	4,932,173	5,674,151

PRE-OPENING EXPENSES

12 Months Ended

Dec. 31, 2017

PRE-OPENING EXPENSES

PRE-OPENING EXPENSES

14.PRE-OPENING EXPENSES

The Group expenses all costs incurred in connection with start-up activities, including pre-operating costs associated with new hotel facilities and costs incurred with the formation of the subsidiaries, such as organization costs. Pre-opening expenses primarily include rental expenses and employee costs incurred during the hotel pre-opening period.

	Years Ended December 31,
	2015	2016	2017
Rents	95,977	67,277	191,502
Personnel costs	5,903	1,560	6,221
Others	8,131	3,010	8,731

Total	110,011	71,847	206,454

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2017

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

15.SHARE-BASED COMPENSATION

In February 2007, the Group adopted the 2007 Global Share Plan which allows the Group to offer incentive awards to employees, officers, directors and consultants or advisors (the “Participants”). Under the 2007 Global Share Plan, the Group may issue incentive awards to the Participants to purchase not more than 10,000,000 ordinary shares. In June 2007, the Group adopted the 2008 Global Share Plan which allows the Group to offer incentive awards to Participants to purchase up to 3,000,000 ordinary shares. In October 2008, the Group increased the maximum number of incentive awards available under the 2008 Global Share Plan to 7,000,000. In September 2009, the Group adopted the 2009 Share Incentive Plan which allows the Group to offer incentive awards to Participants. Under the 2009 Share Incentive Plan, the Group may issue incentive awards to purchase up to 3,000,000 ordinary shares. In August 2010, the Group increased the maximum number of incentive awards available under the 2009 Share Incentive Plan to 15,000,000. In March 2015, the Group increased the maximum number of incentive awards available under the 2009 Share Incentive Plan to 43,000,000. The 2007 and 2008 Global Share Plans and 2009 Share Incentive Plan (collectively, the “Incentive Award Plans”) contain the same terms and conditions. The incentive awards granted under the Incentive Award Plans typically have a maximum life of ten years and vest in typical ways as listed below:

a.) Vest 50% on the second anniversary of the stated vesting commencement date with the remaining 50% vesting ratably over the following two years;

b.) Vest over a period of ten years in equal yearly installments;

As of December 31, 2017, the Group had granted 24,577,669 options and 22,256,782 nonvested restricted stocks.

Share options

In 2015, the Group granted 85,292 options with performance conditions to senior officers. The actual number of the options each grantee is entitled to is indexed to performance conditions of the grantees including various annual performance target, i.e. number of hotel rooms added, revenue etc., in the coming two years. As of December 31, 2016, the Group has adjusted the number of options granted to 88,224 based on the actual performance.

The weighted-average grant date fair value for options granted during the year ended December 31, 2015 was RMB11.73 (US$1.88), computed using the binomial option pricing model. The binomial model requires the input of subjective assumptions including the expected stock price volatility and the expected price multiple at which employees are likely to exercise stock options. The Group uses historical data to estimate forfeiture rate. Expected volatilities are based on the average volatility of the Group and comparable companies. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

The fair value of stock options was estimated using the following significant assumptions:

		2015
Suboptimal exercise factor		4.16
Risk-free interest rate		1.49 to 1.74%
Volatility		38.88 to 39.25%
Dividend yield		—
Life of option		6 years

The following table summarized the Group’s share option activity under the option plans:

	Number of Options		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
			US$	Years	US$’000
Share options outstanding at January 1, 2017	2,656,244		2.15
Forfeited	(2,296	)	1.82
Exercised	(609,224	)	2.25

Share options outstanding at December 31, 2017	2,044,724		2.12	1.45	69,500

Share options vested or expected to vest at December 31, 2017	2,026,971		2.09	1.44	68,950

Share options exercisable at December 31, 2017	1,969,391		2.01	1.38	67,148

As of December 31, 2017, there was RMB844 in total unrecognized compensation expense related to unvested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 1.07 years.

During the years ended December 31, 2015, 2016 and 2017, 1,528,104, 684,632 and 609,224 options were exercised having an aggregate intrinsic value of RMB46,433, RMB40,717 and RMB77,302, respectively.

Nonvested restricted stocks

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.

In 2015 and 2016, the Group granted 6,599,106 and 1,876,975 nonvested restricted stocks, respectively to senior officers, each was in ten tranches with performance conditions. Each tranche is accounted for as a separate award with the same grant date, its own service inception date and requisite service period. The share-based compensation cost is recognized for each vesting tranche during the respective service period based on the estimated performance conditions at the service inception date. The Group reassesses the performance condition at each reporting period for true up. For each tranche, 50% vests on the second anniversary of the vesting commencement date with the remaining 50% vesting ratably over the following two years.

The following table summarized the Group’s nonvested restricted stock activity in 2017.

	Number of Restricted Stocks		Weighted Average Grant Date Fair Value
			US$
Nonvested restricted stocks outstanding at January 1, 2017	13,540,557		5.20
Granted	493,972		21.78
Forfeited	(174,984	)	6.43
Vested	(1,626,768	)	4.99
Adjusted	259,793		5.11

Nonvested restricted stocks outstanding at December 31, 2017	12,492,570		5.86

As of December 31, 2017, there was RMB433,474 in unrecognized compensation costs, net of estimated forfeitures, related to unvested restricted stocks, which is expected to be recognized over a weighted-average period of 4.43 years.

The total fair value of nonvested restricted stocks vested in 2015, 2016 and 2017 was RMB69,130, RMB123,129 and RMB273,800, respectively.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2017

EARNINGS PER SHARE

EARNINGS PER SHARE

16.EARNINGS PER SHARE

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

	Years Ended December 31,
	2015	2016	2017
Net income attributable to ordinary shareholders — basic	436,600	804,615	1,237,202
Eliminate the dilutive effect of interest expense of convertible senior notes	—	—	4,549

Net income attributable to ordinary shareholders — diluted	436,600	804,615	1,241,751

Weighted average ordinary shares outstanding — basic	250,533,204	275,139,070	279,272,140
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method	5,570,963	7,750,424	12,202,369
Dilutive effect of convertible senior notes	—	—	1,599,469
Weighted average ordinary shares outstanding — diluted	256,104,167	282,889,494	293,073,978

Basic earnings per share	1.74	2.92	4.43

Diluted earnings per share	1.70	2.84	4.24

For the years ended December 31, 2015, 2016 and 2017, the Group had no 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.

Cash Dividend	12 Months Ended
Cash Dividend	Dec. 31, 2017
Cash Dividend
Cash Dividend	17. Cash Dividend On December 21, 2015, the Group approved and declared a cash dividend of US$0.17 per ordinary share on its outstanding shares as of the close of trading on December 31, 2015. Such dividend of RMB276,261 was recorded as a reduction against retained earnings as of December 31, 2015. On October 23, 2017, the Group approved and declared a cash dividend of US$0.16 per ordinary share on its outstanding shares as of the close of trading on December 15, 2017. Such dividend of RMB295,661 was recorded as a reduction against retained earnings, and the dividend of RMB10,682 attributable to ADS issued under the ADS lending arrangement was recorded as a receivable in other current assets as of December 31, 2017.

INCOME TAXES

12 Months Ended

Dec. 31, 2017

INCOME TAXES

INCOME TAXES

18.INCOME TAXES

Cayman Islands

Under the current laws of the Cayman Islands, the Company, China Lodging Investment Limited, City Home Group Limited and CLG Special Investments Limited are not subject to tax on income or capital gain.

Hong Kong

China Lodging Holdings (HK) Limited, Starway Hotels (Hong Kong) Limited, IBIS China Investment Limited, ACL Greater China Limited, TAHM Investment Limited, City Home Investment Limited, Orange Hotel Hong Kong Limited, Huazhu Investment I Limited and Huazhu Investment II Limited are subject to Hong Kong profit tax at a rate of 16.5%. No Hong Kong profit tax has been provided as the Group has not had assessable profit that was earned in or derived from Hong Kong during the years presented.

Singapore

China Lodging Holdings Singapore Pte. Ltd. is subject to Singapore corporate income tax at a rate of 17% in 2015, 2016 and 2017. No Singapore profit tax has been provided as the Group has not had assessable profit that was earned in or derived from Singapore during the years presented.

British Virgin Islands

Under the current tax laws of the British Virgin Islands, Crystal Orange Hotel Holdings Limited is not subject to tax on income or capital gain.

Seychelles

Under the current tax laws of Seychelles, Sheen Step Group Limited is not subject to tax on income or capital gain.

PRC

Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%.

Hanting Technology (Suzhou) Co., Ltd (“Hanting Suzhou”), as a recognized software development entity located at Suzhou Industrial Park in Suzhou of PRC, is entitled to a two-year exemption and three-year 50% reduction starting from the first profit making year after absorbing all prior years’ tax losses. Hanting Suzhou has entered into the first tax profitable year in 2011. Therefore, Hanting Suzhou applied tax exemption from 2011 to 2012, and tax rate of 12.5% from 2013 to 2015. Since 2016, Hanting Suzhou is entitled tax rate of 15% as it is qualified as high and new tech enterprise. The high and new tech enterprise qualification is expired in September, 2017, resulting Hanting Suzhou subject to a uniform tax rate of 25% in 2017.

Jizhu Information and Technology (Shanghai) Co., Ltd. (“Jizhu Shanghai”), which once called Mengguang Information and Technology (Shanghai) Co., Ltd, is a recognized software development entity located in Shanghai of PRC. Jizhu Shanghai are entitled to a two-year exemption and three-year 50% reduction starting from the first profit making year after absorbing all prior years’ tax losses, and has entered into the first tax profitable year in 2014. Therefore, Jizhu Shanghai applied tax exemption from 2014 to 2015, and tax rate of 12.5% from 2016 to 2018.

Tax expense (benefit) is comprised of the following:

	Years Ended December 31,
	2015		2016	2017
Current Tax	246,678		253,674	436,195
Deferred Tax	(50,149	)	33,446	(76,237	)

Total	196,529		287,120	359,958

A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows:

	Years Ended December 31,
	2015		2016		2017
PRC statutory tax rate	25	%	25	%	25	%
Tax effect of other expenses that are not deductible in determining taxable profit	3	%	3	%	1	%
Effect of different tax rate of group entities operating in other jurisdictions	—		(1	)%	1	%
Effect of change in valuation allowance	5	%	1	%	—
Effect of tax holiday	(7	)%	(3	)%	(1	)%
Effect of cash dividends	5	%	3	%	(1	)%
Effect of disposal of subsidiary	—		(1	)%	—
Effect of excess tax benefit of rewards	—		—		(3	)%

Effective tax rate	31	%	27	%	22	%

The aggregate amount and per share effect of the tax holidays are as follows:

	Years Ended December 31,
	2015	2016	2017
Aggregate amount	41,288	27,224	24,424
Per share effect—basic	0.16	0.10	0.09
Per share effect—diluted	0.16	0.10	0.08

The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2016 and 2017 are as follows:

	As of December 31,
	2016		2017
Deferred tax assets:
Net loss carryforward	97,219		139,650
Deferred revenue	71,517		78,788
Deferred rent	2,968		8,763
Long-term assets	51,579		130,112
Bad debt provision	2,856		4,437
Accrual for customer loyalty program	30,267		37,298
Accrued payroll	3,588		14,155
Other accrued expenses	17,688		20,706
Share-based compensation	10,978		13,447
Others	2,379		1,425
Valuation allowance	(114,625	)	(123,138	)

Total deferred tax assets	176,414		325,643

Deferred tax liabilities:
Favorable lease, building and land use rights-fair value adjustment	67,167		398,761
Capitalized interest	3,519		2,929
Unrealized gain for investment	14,826		6,861
Others	10,817		13,539

Total deferred tax liabilities	96,329		422,090

For the years ended December 31, 2016 and 2017, valuation allowance of RMB55,757 and RMB59,929 were provided, respectively, RMB11,724 and RMB2,963 were added due to acquisition, respectively, RMB17,064 and RMB46,903 were reversed, respectively, and RMB28,319 and RMB7,476 were written off, respectively. 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.

As of December 31, 2017, the Group had tax loss carryforwards of RMB558,598 which will expire between 2018 and 2022 if not used.

The Group determines whether or not a tax position is “more-likely-than-not” of being sustained upon audit based solely on the technical merits of the position. At December 31, 2016 and 2017, the Group had recorded liabilities for uncertain tax benefit of approximately RMB19,787 and RMB26,410 associated with the interests on intercompany loans, respectively. No interest or penalty expense was recorded for the years ended December 31, 2015, 2016 and 2017. The Group does not anticipate any significant changes to its liability for unrecognized tax benefits within the next 12 months.

	Years Ended December 31,
	2015	2016	2017
Balance at January 1	8,345	14,755	19,787
Addition for tax positions	6,410	5,032	6,623

Balance at December 31	14,755	19,787	26,410

In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. A lower withholding tax rate may be applied if there is a favorable tax treaty between mainland China and the jurisdiction of the foreign holding company. For example, holding companies in Hong Kong that are also tax residents in Hong Kong are eligible for a 5% withholding tax on dividends under the Tax Memorandum between China and the Hong Kong Special Administrative Region if the holding company is the beneficial owner of the dividends. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting basis over tax basis in a domestic subsidiary. The cumulated undistributed earnings of the Group’s PRC subsidiaries were RMB2,761,814 as of December 31, 2017. To facilitate the Company’s declaration of a special cash dividend, PRC dividend withholding tax of RMB30,696 and RMB32,570 was accrued in years 2015 and 2016 along with the declaration of special cash dividends from the Group’s PRC subsidiaries to the Company. As of December 31, 2017, the accrued PRC dividend withholding tax liability was RMB8,552. Going forward the Group plans to maintain a moderate dividend distribution of approximately RMB300,000 a year from current year net income starting from 2018. Other than these dividends distributions, the Group intends to indefinitely reinvest the remaining undistributed earnings of the Group’s PRC subsidiaries, and therefore, no additional provision for PRC dividend withholding tax was accrued.

According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding RMB100 is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The Group’s PRC subsidiaries are therefore subject to examination by the PRC tax authorities from 2013 through 2017 on non-transfer pricing matters, and from 2008 through 2017 on transfer pricing matters.

MAINLAND CHINA CONTRIBUTION PLAN	12 Months Ended
MAINLAND CHINA CONTRIBUTION PLAN	Dec. 31, 2017
MAINLAND CHINA CONTRIBUTION PLAN
MAINLAND CHINA CONTRIBUTION PLAN	19.MAINLAND CHINA CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on a certain percentage of the employees’ salaries. The total contribution for such employee benefits were RMB182,321, RMB212,723 and RMB264,258 for the years ended December 31, 2015, 2016 and 2017, respectively. The Group has no ongoing obligation to its employees subsequent to its contributions to the PRC plan.

RESTRICTED NET ASSETS	12 Months Ended
RESTRICTED NET ASSETS	Dec. 31, 2017
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS	20.RESTRICTED NET ASSETS Pursuant to laws applicable to entities incorporated in the PRC, the subsidiaries of the Group in the PRC must make appropriations from after-tax profit to non-distributable reserve funds. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires annual appropriation of 10% of after tax profit (as determined under accounting principles generally accepted in the PRC at each year-end) until the accumulative amount of such reserve fund reaches 50% of their registered capital; the other fund appropriations are at the subsidiaries’ discretion. These reserve funds can only be used for specific purposes of offsetting future losses, enterprise expansion and staff bonus and welfare and are not distributable as cash dividends and amounted to RMB209,782, RMB277,342 and RMB378,591 as of December 31, 2015, 2016 and 2017, respectively. In addition, due to restrictions on the distribution of share capital from the Company’s PRC subsidiaries, the PRC subsidiaries share capital of RMB3,102,568 at December 31, 2017 is considered restricted. As a result of these PRC laws and regulations, as of December 31, 2017, approximately RMB3,481,159 is not available for distribution to the Company by its PRC subsidiaries in the form of dividends, loans or advances.

RELATED PARTY TRANSACTIONS AND BALANCES

12 Months Ended

Dec. 31, 2017

RELATED PARTY TRANSACTIONS AND BALANCES

21.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 mainly act as service providers and service recipients to the Group. 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
Sheen Star Group Limited (“Sheen Star”)	Investment holding company	Equity method investee of the Group, controlled by Mr. Qi Ji
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
Shanghai CREATER Industrial Co., Ltd. (“CREATER”)	Staged office space company	Equity method investee of the Group

(a) Related party balances

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

	As of December 31,
	2016	2017
Sheen Star	37,060	39,172
Accor	4,052	2,040
Cjia	50,365	15,460
Ctrip	3,203	31,754
CREATER	—	26,979
Others	3,773	3,132

Total	98,453	118,537

Amounts due to related parties were mainly comprised of payables for brand use fee, reservation fee and other service fee from Ctrip and Accor, which are short-term in nature and payable on demand.

	As of December 31,
	2016	2017
Ctrip	3,291	28,651
Accor	6,019	6,684
Others	1,748	1,555

Total	11,058	36,890

(b) Related party transactions

During the years ended December 31, 2015, 2016 and 2017, significant related party transactions were as follows:

	Years Ended December 31,
	2015	2016	2017
Commission expenses to Ctrip	17,740	44,119	76,792
Brand use fee, reservation fee and other related service fee to Accor	—	6,019	10,786
Marketing and training fee from Ctrip	—	12,667	23,659
Service fee from Accor	—	4,052	7,729
Goods sold and service provided to Cjia	—	353	8,486
Interest income from Sheen Star	—	2,060	—
Loan payment to Sheen Star	—	35,000	—
Loan payment to Cjia	—	—	84,950
Loan payment to CREATER	—	—	26,979

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

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2017

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

22.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.

Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2017 were as follows:

Year Ending December 31,
2018		1,823,626
2019		2,539,224
2020		2,518,195
2021		2,413,641
2022		2,284,216
Thereafter		13,508,772

Total		25,087,674

(b) Purchase Commitments

As of December 31, 2017, the Group’s commitments related to leasehold improvements and installation of equipment for hotel operations was RMB160,334, 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. For the year ended December 31, 2017, the Group had settled several cases and undergoes new cases. Therefore, the Group reversed contingencies of RMB35,969 and further accrued RMB10,719 based on latest negotiation or arbitration result with the remaining accrued contingencies of RMB40,984. 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	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	23.SUBSEQUENT EVENTS In January 2018, the Group had drawn down US$250 million under a revolving credit facility agreement signed in 2017. Further in early 2018, the Group entered into one three-year facility agreement of total amount of EUR260 million with banks, among which EUR241 million was drawn down in first quarter of 2018. In first quarter of 2018, the Group further purchased 10,782,131 shares of Hotel Group B from public market at cash consideration of EUR489 million. As of March 31, 2018, the Group accumulatively hold 13,092,112 shares of Hotel Group B, and all of these shares was pledged by the Group for the three-year facility agreement of total amount of EUR260 million.

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY

12 Months Ended

Dec. 31, 2017

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY

ADDITIONAL FINANCIAL INFORMATION — FINANCIAL STATEMENTS SCHEDULE I

CHINA LODGING GROUP, LIMITED

FINANCIAL INFORMATION FOR PARENT COMPANY

BALANCE SHEETS

(Renminbi in thousands, except share data and per share data, unless otherwise stated)

	As of December 31,
	2016		2017		2017
					US$’000
Assets
Current assets:
Cash and cash equivalents	374,036		556,604		85,548
Short-term investments	—		129,911		19,967
Other current assets	173		37,030		5,691

Total current assets	374,209		723,545		111,206
Other assets	—		32,916		5,059
Investment in subsidiaries	5,512,131		10,302,818		1,583,514
Long-term investments	45,640		780,272		119,926

Total assets	5,931,980		11,839,551		1,819,705

Liabilities and equity
Current liabilities:
Short-term debt	298,291		130,815		20,106
Amount due to related parties	222,402		312,871		48,087
Accrued expenses and other current liabilities	11,687		35,395		5,439

Total current liabilities	532,380		479,081		73,632

Long-term debt	—		4,921,774		756,463

Total liabilities	532,380		5,400,855		830,095

Equity:
Ordinary shares(US$0.0001 par value per share; 8,000,000,000 shares authorized; 281,379,130 and 294,040,234 shares issued as of December 31, 2016 and 2017, and 278,282,366 and 280,518,358 shares outstanding as of December 31, 2016 and 2017, respectively)	204		212		33
Treasury shares (3,096,764 and 3,096,764 shares as of December 31 2016 and 2017, respectively)	(107,331	)	(107,331	)	(16,496	)
Additional paid-in capital	3,699,056		3,624,135		557,019
Retained earnings	1,812,174		2,753,715		423,238
Accumulated other comprehensive (loss) income	(4,503	)	167,965		25,816

Total equity	5,399,600		6,438,696		989,610

Total liabilities and equity	5,931,980		11,839,551		1,819,705

ADDITIONAL FINANCIAL INFORMATION — FINANCIAL STATEMENTS SCHEDULE I
CHINA LODGING GROUP, LIMITED
FINANCIAL INFORMATION FOR PARENT COMPANY

STATEMENTS OF COMPREHENSIVE INCOME
(Renminbi in thousands, unless otherwise stated)

	Years Ended December 31,
	2015		2016		2017		2017
							US$’000
Operating costs and expenses:
Selling and marketing expenses	157		—		—		—
General and administrative expenses	59,236		60,075		68,720		10,561

Total operating costs and expenses	59,393		60,075		68,720		10,561

Loss from operations	(59,393	)	(60,075	)	(68,720	)	(10,561	)
Interest income	30		273		1,606		247
Interest expense	3,198		10,453		86,570		13,306
Foreign exchange gain (loss)	7,477		14,750		(14,382	)	(2,210	)
Other income, net	2,488		69,919		43,666		6,711
Income in investment in subsidiaries	489,196		790,201		1,361,602		209,274

Net income attributable to China Lodging Group, Limited	436,600		804,615		1,237,202		190,155


Other comprehensive income
Unrealized securities holding gains, net of tax of 7,151, (1,810) and (7,965) for 2015, 2016 and 2017	68,069		16,449		868		133
Reclassification of realized gains to net income, net of tax	—		(67,921	)	(5,282	)	(812	)
Foreign currency translation adjustments, net of tax of nil for 2015, 2016 and 2017	3,535		(12,627	)	176,882		27,186

Comprehensive income	508,204		740,516		1,409,670		216,662

ADDITIONAL FINANCIAL INFORMATION — FINANCIAL STATEMENTS SCHEDULE I
CHINA LODGING GROUP, LIMITED
FINANCIAL INFORMATION FOR PARENT COMPANY

STATEMENTS OF CASH FLOWS
(Renminbi in thousands, unless otherwise stated)

	Years Ended December 31,
	2015		2016		2017		2017
							US$’000
Operating activities:
Net income	436,600		804,615		1,237,202		190,155
Adjustments to reconcile net income to net cash used in operating activities:
Share-based compensation	52,535		55,436		66,367		10,200
Income in investment in subsidiaries	(489,196	)	(790,201	)	(1,361,602	)	(209,274	)
Investment income	—		(51,123	)	(40,822	)	(6,274	)
Amortization of issuance cost of convertible notes	—		—		2,598		399
Changes in operating assets and liabilities:
Deferred revenue	(364	)	—		—		—
Other current assets	2,312		776		(25,946	)	(3,988	)
Other assets	—		—		(32,916	)	(5,059	)
Salary and welfare payable	(86	)	(25	)	—		—
Accrued expenses and other current liabilities	15,463		(16,618	)	23,710		3,644

Net cash provided by (used in) operating activities	17,264		2,860		(131,409	)	(20,197	)

Investing activities:
Investment in subsidiaries	(168,709	)	—		(3,251,346	)	(499,723	)
Receipt of investment in subsidiaries	—		236,238		—		—
Purchase of long-term investments	—		(47,859	)	(760,215	)	(116,843	)
Proceeds from sale of long-term investments	—		3,845		58,264		8,955
Purchase of short-term investments	(271,630	)	—		(95,802	)	(14,724	)
Proceeds from sale of short-term investment	—		337,189		—		—

Net cash (used in) provided by investing activities	(440,339	)	529,413		(4,049,099	)	(622,335	)

Financing activities:
Net proceeds from issuance of ordinary shares upon exercise of option	22,619		12,206		9,073		1,394
Payment of share repurchase	(107,331	)	—		—		—
Proceeds of advances from subsidiaries	222,403		—		90,468		13,905
Proceeds from short-term bank borrowings	489,376		281,719		135,488		20,824
Repayment of short-term bank borrowings	(183,516	)	(332,555	)	(293,677	)	(45,137	)
Proceeds from long-term bank borrowings	—		—		3,633,174		558,409
Repayment of long-term bank borrowings	—		—		(1,650,917	)	(253,741	)
Proceeds from issuance of convertible senior notes, net of issuance cost and capped call option	—		—		2,925,203		449,595
Debt financing costs paid	—		—		(9,763	)	(1,501	)
Proceeds from ADS lending	—		—		7		1
Dividends paid	—		(276,261	)	(306,343	)	(47,084	)

Net cash provided by (used in) financing activities	443,551		(314,891	)	4,532,713		696,665

Effect of exchange rate changes on cash and cash equivalents	5,800		35,629		(169,637	)	(26,073	)

Net increase in cash and cash equivalents	26,276		253,011		182,568		28,060
Cash and cash equivalents at the beginning of the year	94,749		121,025		374,036		57,488

Cash and cash equivalents at the end of the year	121,025		374,036		556,604		85,548

The accompanying notes are an integral part of these consolidated financial statements

ADDITIONAL FINANCIAL INFORMATION — FINANCIAL STATEMENTS SCHEDULE I
CHINA LODGING GROUP, LIMITED
FINANCIAL INFORMATION FOR PARENT COMPANY

Note to Schedule I

Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04-(c) of Regulation S-X, which require condensed financial information as to the financial position, change in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

The condensed financial information has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. Such investments in subsidiaries are presented on the balance sheets as investment in subsidiaries and the profit of the subsidiaries is presented as income in investment in subsidiaries.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying consolidated financial statements.

As of December 31, 2017, there are no material contingencies, mandatory dividend, and significant provision of long-term obligation or guarantee of the Company, except for those which have separately disclosed in the consolidated financial statements.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2017

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

ADDITIONAL INFORMATION — FINANCIAL STATEMENTS SCHEDULE II

CHINA LODGING GROUP, LIMITED

This financial information has been prepared in conformity with accounting principles generally accepted in the United States.

VALUATION AND QUALIFYING ACCOUNT S

	Balance at Beginning of Year	Charge to Costs and Expenses	Addition Due to Acquisition	Charge Taken Against Allowance		Write off		Balance at End of Year
	(Renminbi in thousands)
Allowance for doubtful accounts of accounts receivables and other receivables:
2015	6,477	1,997	—	—		(2,415	)	6,059
2016	6,059	1,082	7,151	—		(2,368	)	11,924
2017	11,924	2,446	—	—		(3,593	)	10,777
Valuation allowance for deferred tax assets

2015	62,868	47,122	—	(15,508	)	(1,955	)	92,527
2016	92,527	55,757	11,724	(17,064	)	(28,319	)	114,625
2017	114,625	59,929	2,963	(46,903	)	(7,476	)	123,138

******

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2017

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”).

Basis of consolidation

Variable Interest Entities

Use of estimates

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased.

Restricted cash

Restricted cash mainly represents deposits used as security against borrowings and deposits restricted due to contract disputes or lawsuit.

Investments

Investments represent trading securities, available-for-sale securities, cost-method investments, and equity-method investments.

As a result of the impairment analysis, the Group recorded an impairment of nil, RMB3,208 and nil in 2015, 2016 and 2017, respectively.

Accounts receivable, net of allowance

Loan receivables

Inventories

Property and equipment, net

Leasehold improvements		Shorter of the lease term or their estimated useful lives
Buildings		20-40 years
Furniture, fixtures and equipment		3-10 years
Motor vehicles		5 years

Intangible assets, net and unfavorable lease

Land use rights

Land use rights, which are all located in PRC, are recorded at cost and amortized on a straight-line basis over the remaining term of the land certificates, between 30 to 50 years.

Impairment of long-lived assets

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets less liabilities acquired.

The Group recognized goodwill impairment of RMB2,445, nil and nil for years ended December 31, 2015, 2016 and 2017, respectively.

Accruals for customer loyalty program

Deferred revenue

Revenue recognition

Business tax and related taxes

Advertising and promotional expenses

Government grants

Leases

Capitalization of interest

Income taxes

Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations.

Foreign currency translation

The financial records of the Group’s subsidiaries are maintained in local currencies, which are the functional currencies.

Comprehensive income

Concentration of credit risk

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
Years Ended December 31,	Description	Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
2016	Long-term available-for-sale securities	247,085	204,945	42,140
2017	Short-term trading securities	129,911	129,911
2017	Long-term available-for-sale securities	1,253,786	907,716	346,070

The following table presents the Group’s assets measured at fair value on a non-recurring basis for the years ended December 31, 2015, 2016 and 2017:

			Fair Value Measurements at Reporting Date Using
Years Ended December 31,	Description	Fair Value for Years Ended December 31	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 Year
2015	Property and equipment	21,879			21,879	93,163
2015	Goodwill	—			—	2,445
2016	Property and equipment	20,706			20,706	150,533
2016	Long-term investments	—			—	3,208
2017	Property and equipment	51,750			51,750	169,213

Share-based compensation

	Years Ended December 31,
	2015	2016	2017
Hotel operating costs	8,835	13,603	19,725
Selling and marketing expenses	907	811	1,530
General and administrative expenses	42,793	41,022	45,112

Total	52,535	55,436	66,367

Earnings per share

Segment reporting

The Group primarily generates its revenues from customers in the PRC. Substantially all of the Group’s long-lived assets are located in the PRC.

Treasury shares

New Accounting Pronouncements Recently Adopted or Not Yet Adopted

New Accounting Pronouncements Recently Adopted

New Accounting Pronouncements Not Yet Adopted

Translation into United States Dollars

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2017

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Schedule of expected useful lives of property and equipment

Leasehold improvements		Shorter of the lease term or their estimated useful lives
Buildings		20-40 years
Furniture, fixtures and equipment		3-10 years
Motor vehicles		5 years

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
Years Ended December 31,	Description	Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
2016	Long-term available-for-sale securities	247,085	204,945	42,140
2017	Short-term trading securities	129,911	129,911
2017	Long-term available-for-sale securities	1,253,786	907,716	346,070

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

			Fair Value Measurements at Reporting Date Using
Years Ended December 31,	Description	Fair Value for Years Ended December 31	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 Year
2015	Property and equipment	21,879			21,879	93,163
2015	Goodwill	—			—	2,445
2016	Property and equipment	20,706			20,706	150,533
2016	Long-term investments	—			—	3,208
2017	Property and equipment	51,750			51,750	169,213

Schedule of share-based compensation expense recognized

	Years Ended December 31,
	2015	2016	2017
Hotel operating costs	8,835	13,603	19,725
Selling and marketing expenses	907	811	1,530
General and administrative expenses	42,793	41,022	45,112

Total	52,535	55,436	66,367

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2017

Accor

Acquisitions

Summary of pro forma information

	Year Ended December 31, 2015	Year Ended December 31, 2016
Pro forma net revenue	5,955,538	6,548,083
Pro forma net income	478,770	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
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

Summary of pro forma information

	Years Ended December 31,
	2016	2017
Pro forma net revenue	7,473,851	8,571,372
Pro forma net income	858,012	1,275,788

Summary of fair values of the assets acquired and liabilities assumed

	2017		Amortization Period
Current assets	137,314
Property and equipment	842,102		3-20 years
Favorable leases	90,704		remaining lease terms
Franchise agreement	58,691		remaining contract terms
Brand Name	1,141,793		indefinite life
Goodwill	2,093,254
Other noncurrent assets	130,813
Current liabilities	(222,205	)
Noncurrent liabilities	(179,985	)
Deferred tax liabilities	(322,797	)
Noncontrolling interest	(4,206	)

Total	3,765,478

Individual hotels acquired

Acquisitions

Summary of fair values of the assets acquired and liabilities assumed

	2015		2016		2017		Amortization Period
Current assets	3,382		5,330		8,018
Property and equipment	74,222		28,412		33,965		5-10 years
Favorable leases	41,283		5,004		31,508		remaining lease terms
Deferred tax assets	515		—		—
Franchise agreements	3,300		—		—		remaining contracts terms
Goodwill	46,135		—		—
Other noncurrent assets	663		—		—
Current liabilities	(22,864	)	(34,495	)	(65,614	)
Deferred tax liabilities	(11,146	)	(1,251	)	(7,877	)
Noncontrolling interest	(8,264	)	—		—

Total	127,226		3,000		—

SHORT-TERM INVESTMENTS MEASURED AT FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2017

SHORT-TERM INVESTMENTS MEASURED AT FAIR VALUE

Schedule of short-term investments measured at fair value

	As of December 31,
	2016	2017
Hotel Group A	—	129,911

LOAN RECEIVABLES (Tables)

12 Months Ended

Dec. 31, 2017

LOAN RECEIVABLES

Schedule of current and non-current portion of loans receivables

	As of December 31,
	2016	2017
Loan receivables, current portion
Loan receivables from franchisees	14,649	29,754
Loan receivables from other entities	7,761	350,826

Total	22,410	380,580

Loan receivables, non-current portion
Loan receivables from franchisees	7,269	31,534
Loan receivables from other entities	—	10,796

Total	7,269	42,330

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2017

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment, net

	As of December 31,
	2016		2017
Cost:
Buildings	255,646		247,406
Leasehold improvements	5,563,815		6,452,472
Furniture, fixtures and equipment	925,174		1,033,941
Motor vehicles	820		820

	6,745,455		7,734,639
Less: Accumulated depreciation	(3,196,496	)	(3,706,856	)

	3,548,959		4,027,783
Construction in progress	161,509		495,095

Property and equipment, net	3,710,468		4,522,878

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE (Tables)

12 Months Ended

Dec. 31, 2017

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE

Schedule of intangible assets with indefinite life

	As of December 31,
	2016	2017
Intangible assets with indefinite life:
Brand name (Note 3)	28,600	1,170,393
Master brand agreement (Note 3)	192,000	192,000

Schedule of intangible assets with definite life

Intangible assets with definite life:
Franchise agreements	11,000		69,691
Non-compete agreement	400		400
Favorable lease agreements	135,874		255,657
Purchased software	55,101		64,694

Total	422,975		1,752,835
Less: Accumulated amortization	(80,281	)	(108,863	)

Total	342,694		1,643,972

Schedule of unfavorable lease

	As of December 31,
	2016		2017
Unfavorable lease agreements	3,924		3,924
Less: Accumulated amortization	(3,102	)	(3,232	)

Unfavorable lease agreements, net	822		692

Schedule of annual estimated amortization expense for intangible assets and unfavorable lease excluding brand name and master brand agreement

	Amortization for Intangible Assets	Amortization for Unfavorable Lease		Net Amortization
2018	33,404	(130	)	33,274
2019	31,885	(130	)	31,755
2020	30,830	(130	)	30,700
2021	29,490	(130	)	29,360
2022	27,440	(130	)	27,310
Thereafter	128,530	(42	)	128,488

Total	281,579	(692	)	280,887

LAND USE RIGHTS (Tables)

12 Months Ended

Dec. 31, 2017

LAND USE RIGHTS

Schedule of land use rights

	As of December 31,
	2016		2017
Land use rights (Note 3)	149,668		149,668
Less: Accumulated amortization	(4,147	)	(9,560	)

Total	145,521		140,108

LONG-TERM INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2017

LONG-TERM INVESTMENTS

Schedule of long-term investments

	As of December 31,
	2016			2017
	Ownership%		Amount	Ownership%		Amount
Available-for-sale securities:
Quanjude			159,305			127,444
Tang Palace			18,856			—
Banyan Tree			26,784			—
Hotel Group B			—			780,272
Cjia			42,140			246,070
CREATER			—			100,000
Cost-method investments:
UBOX/BJ UBOX	3	%	48,220	2	%	33,822
BJ GOOAGOO/GOOAGOO	19	%	60,000	19	%	60,000
Founder Service	11	%	45,000	11	%	45,000
Qingpu	10	%	17,143	5	%	17,143
Mobike	—		—	Less than 1	%	66,288
Blossom Hill	—		—	11	%	60,194
OYO	—		—	1	%	66,467
Other investments			2,208			6,803
Equity-method investments:
Sheen Star	20	%	20,862	20	%	20,864
Distrii	39	%	28,562	18	%	45,156
AAPC LUB	28	%	446,100	28	%	477,560
China Young	37	%	43,054	37	%	40,811
CREATER	20	%	100,000	20	%	102,709
Hitone	—		—	20	%	30,300
Hanmo	—		—	60	%	26,000
Other investments			6,087			9,066

Total			1,064,321			2,361,969

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2017

GOODWILL

Schedule of changes in the carrying amount of goodwill

	Gross Amount	Accumulated Impairment Loss		Net Amount
Balance at January 1, 2015	66,650	(1,996	)	64,654
Increase in goodwill related to acquisitions	46,135	—		46,135
Impairment losses recognized	—	(2,445	)	(2,445	)

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	2,093,254	—		2,093,254

Balance at December 31, 2017	2,269,199	(4,441	)	2,264,758

DEBT (Tables)

12 Months Ended

Dec. 31, 2017

DEBT

Schedule of short-term and long-term debt

	As of December 31,
	2016	2017
Short-term debt:
Long-term bank borrowings, current portion	—	131
Short-term bank borrowings	298,291	130,684

Total	298,291	130,815


Long-term debt:
Long-term bank borrowings, non-current portion	—	1,894,722
Convertible senior notes	—	3,027,052

Total	—	4,921,774

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2017

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities

	As of December 31,
	2016	2017
Payable for business acquisitions	171,484	117,617
Accrual for customer loyalty program	121,066	156,092
Payable to noncontrolling interest holders	34,791	86,896
Payable to franchisees	212,242	418,293
Other payables	170,944	262,086
Accrued rental	66,804	84,423
Accrued utilities	46,379	61,748
Deferred rent, current	37,648	49,857
Other accrued expenses	34,479	27,890

Total	895,837	1,264,902

HOTEL OPERATING COSTS (Tables)

12 Months Ended

Dec. 31, 2017

HOTEL OPERATING COSTS

Schedule of hotel operating costs

	Years Ended December 31,
	2015	2016	2017
Rents	1,804,532	1,870,879	2,058,954
Utilities	341,620	345,615	365,100
Personnel costs	919,555	1,088,380	1,388,284
Depreciation and amortization	645,058	676,996	773,202
Consumable, food and beverage	485,099	494,764	550,513
Others	316,283	455,539	538,098

Total	4,512,147	4,932,173	5,674,151

PRE-OPENING EXPENSES (Tables)

12 Months Ended

Dec. 31, 2017

PRE-OPENING EXPENSES

Schedule of pre-opening expenses incurred during the hotel pre-opening period

	Years Ended December 31,
	2015	2016	2017
Rents	95,977	67,277	191,502
Personnel costs	5,903	1,560	6,221
Others	8,131	3,010	8,731

Total	110,011	71,847	206,454

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2017

SHARE-BASED COMPENSATION

Summary of significant assumptions used for estimating fair value of stock options

		2015
Suboptimal exercise factor		4.16
Risk-free interest rate		1.49 to 1.74%
Volatility		38.88 to 39.25%
Dividend yield		—
Life of option		6 years

Summary of the Group's share option activity under the option plans

	Number of Options		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
			US$	Years	US$’000
Share options outstanding at January 1, 2017	2,656,244		2.15
Forfeited	(2,296	)	1.82
Exercised	(609,224	)	2.25

Share options outstanding at December 31, 2017	2,044,724		2.12	1.45	69,500

Share options vested or expected to vest at December 31, 2017	2,026,971		2.09	1.44	68,950

Share options exercisable at December 31, 2017	1,969,391		2.01	1.38	67,148

Summary of the Group's nonvested restricted stock activity

	Number of Restricted Stocks		Weighted Average Grant Date Fair Value
			US$
Nonvested restricted stocks outstanding at January 1, 2017	13,540,557		5.20
Granted	493,972		21.78
Forfeited	(174,984	)	6.43
Vested	(1,626,768	)	4.99
Adjusted	259,793		5.11

Nonvested restricted stocks outstanding at December 31, 2017	12,492,570		5.86

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2017

EARNINGS PER SHARE

Schedule of computation of basic and diluted earnings per share

	Years Ended December 31,
	2015	2016	2017
Net income attributable to ordinary shareholders — basic	436,600	804,615	1,237,202
Eliminate the dilutive effect of interest expense of convertible senior notes	—	—	4,549

Net income attributable to ordinary shareholders — diluted	436,600	804,615	1,241,751

Weighted average ordinary shares outstanding — basic	250,533,204	275,139,070	279,272,140
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method	5,570,963	7,750,424	12,202,369
Dilutive effect of convertible senior notes	—	—	1,599,469
Weighted average ordinary shares outstanding — diluted	256,104,167	282,889,494	293,073,978

Basic earnings per share	1.74	2.92	4.43

Diluted earnings per share	1.70	2.84	4.24

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of tax expense (benefit)

	Years Ended December 31,
	2015		2016	2017
Current Tax	246,678		253,674	436,195
Deferred Tax	(50,149	)	33,446	(76,237	)

Total	196,529		287,120	359,958

Schedule of a reconciliation between the effective income tax rate and PRC statutory income tax rate

	Years Ended December 31,
	2015		2016		2017
PRC statutory tax rate	25	%	25	%	25	%
Tax effect of other expenses that are not deductible in determining taxable profit	3	%	3	%	1	%
Effect of different tax rate of group entities operating in other jurisdictions	—		(1	)%	1	%
Effect of change in valuation allowance	5	%	1	%	—
Effect of tax holiday	(7	)%	(3	)%	(1	)%
Effect of cash dividends	5	%	3	%	(1	)%
Effect of disposal of subsidiary	—		(1	)%	—
Effect of excess tax benefit of rewards	—		—		(3	)%

Effective tax rate	31	%	27	%	22	%

Schedule of the aggregate amount and per share effect of the tax holidays

	Years Ended December 31,
	2015	2016	2017
Aggregate amount	41,288	27,224	24,424
Per share effect—basic	0.16	0.10	0.09
Per share effect—diluted	0.16	0.10	0.08

Schedule of the principal components of the Group's deferred income tax assets and liabilities

	As of December 31,
	2016		2017
Deferred tax assets:
Net loss carryforward	97,219		139,650
Deferred revenue	71,517		78,788
Deferred rent	2,968		8,763
Long-term assets	51,579		130,112
Bad debt provision	2,856		4,437
Accrual for customer loyalty program	30,267		37,298
Accrued payroll	3,588		14,155
Other accrued expenses	17,688		20,706
Share-based compensation	10,978		13,447
Others	2,379		1,425
Valuation allowance	(114,625	)	(123,138	)

Total deferred tax assets	176,414		325,643

Deferred tax liabilities:
Favorable lease, building and land use rights-fair value adjustment	67,167		398,761
Capitalized interest	3,519		2,929
Unrealized gain for investment	14,826		6,861
Others	10,817		13,539

Total deferred tax liabilities	96,329		422,090

Schedule of unrecognized tax benefits

	Years Ended December 31,
	2015	2016	2017
Balance at January 1	8,345	14,755	19,787
Addition for tax positions	6,410	5,032	6,623

Balance at December 31	14,755	19,787	26,410

RELATED PARTY TRANSACTIONS AND BALANCES (Tables)

12 Months Ended

Dec. 31, 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
Sheen Star Group Limited (“Sheen Star”)	Investment holding company	Equity method investee of the Group, controlled by Mr. Qi Ji
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
Shanghai CREATER Industrial Co., Ltd. (“CREATER”)	Staged office space company	Equity method investee of the Group

Schedule of amounts due from related parties

	As of December 31,
	2016	2017
Sheen Star	37,060	39,172
Accor	4,052	2,040
Cjia	50,365	15,460
Ctrip	3,203	31,754
CREATER	—	26,979
Others	3,773	3,132

Total	98,453	118,537

Schedule of amounts due to related party

	As of December 31,
	2016	2017
Ctrip	3,291	28,651
Accor	6,019	6,684
Others	1,748	1,555

Total	11,058	36,890

Schedule of significant related party transactions

	Years Ended December 31,
	2015	2016	2017
Commission expenses to Ctrip	17,740	44,119	76,792
Brand use fee, reservation fee and other related service fee to Accor	—	6,019	10,786
Marketing and training fee from Ctrip	—	12,667	23,659
Service fee from Accor	—	4,052	7,729
Goods sold and service provided to Cjia	—	353	8,486
Interest income from Sheen Star	—	2,060	—
Loan payment to Sheen Star	—	35,000	—
Loan payment to Cjia	—	—	84,950
Loan payment to CREATER	—	—	26,979

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2017

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum lease payments under operating lease agreements

Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2017 were as follows:

Year Ending December 31,
2018		1,823,626
2019		2,539,224
2020		2,518,195
2021		2,413,641
2022		2,284,216
Thereafter		13,508,772

Total		25,087,674

ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - item	12 Months Ended
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - item	Dec. 31, 2017	Dec. 31, 2016
Leased and owned hotels
Organization and presentation activities
Number of hotels	671	624
Manachised hotels
Organization and presentation activities
Number of hotels	2,874	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 - Variable Interest Entities (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)
TJ Mengguang
Variable Interest Entities
Total of registered capital and PRC statutory reserves	¥ 12,059
Cash and cash equivalents	21,353
Other current assets	3,095
Liabilities	2,585
Deferred revenue	1,371
Accrued expense and other current liabilities	1,032
Net revenue	534
Cost of revenues	653
NB Hongting
Variable Interest Entities
Cash and cash equivalents	8,816
Long term investment	25,000
Liabilities	461
Net loss due to some pre-operation expenses	¥ 398

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Investments, Loan receivables and Inventories (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investments
Impairment loss	¥ 0	¥ 3,208	¥ 0
Loan receivables
Valuation allowance for uncollectible loans	¥ 0	¥ 0	¥ 0
Inventories
Estimated useful life of small appliances and bedding	1 year

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Property and equipment, net (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Minimum
Property and equipment, net
Property and equipment, estimated useful life	5 years	5 years	5 years
Maximum
Property and equipment, net
Property and equipment, estimated useful life	10 years	10 years	10 years
Leasehold improvements
Property and equipment, net
Property and equipment, estimated useful life	Shorter of the lease term or their estimated useful lives
Buildings \| Minimum
Property and equipment, net
Property and equipment, estimated useful life	20 years
Buildings \| Maximum
Property and equipment, net
Property and equipment, estimated useful life	40 years
Furniture, fixtures and equipment \| Minimum
Property and equipment, net
Property and equipment, estimated useful life	3 years
Furniture, fixtures and equipment \| Maximum
Property and equipment, net
Property and equipment, estimated useful life	10 years
Motor vehicles
Property and equipment, net
Property and equipment, estimated useful life	5 years

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥) segment item	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	May 31, 2016
Accounting policies
Long-lived asset impairment loss	¥ 169,213	¥ 150,533	¥ 93,163
Number of reporting units \| item	1
Goodwill Impairment Loss	¥ 0	0	2,445
Estimated liability accruals under customer loyalty program		121,066			¥ 156,092
Hotel manager fees recognized as revenue	371,625	321,346	261,743
Revenue recognized from customer loyalty program	160,200	145,459	130,644
VAT (as a percent)						6.00%
Advertising related expenses	90,578	64,666	47,971
Unrestricted government subsidies from local governmental agencies	55,389	83,498	28,188
Deferred rent current		37,648			49,857
Deferred rent long-term		1,023,843		$ 212,177	¥ 1,380,484
Interest cost incurred	87,320	11,056	5,383
Interest cost capitalized	¥ 0	¥ 0	¥ 1,529
Number of operating segments \| segment	1
Master brand agreement
Accounting policies
Initial term	70 years
Minimum
Accounting policies
Estimated customer loyalty program membership duration	2 years
Minimum \| Land use rights
Accounting policies
Remaining contractual term	30 years
Maximum
Accounting policies
Redemption period for points earned by members on paid stays	2 years
Estimated customer loyalty program membership duration	5 years
Maximum \| Land use rights
Accounting policies
Remaining contractual term	50 years

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Fair value (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)
Fair value
Cost-method investments		¥ 172,571			¥ 355,717
Short-term trading securities				$ 19,967	129,911
Long-lived asset impairment loss	¥ 169,213	150,533	¥ 93,163
Goodwill impairment loss	0	0	2,445
Long-term investments, impairment loss	¥ 0	¥ 3,208	¥ 0
Revenue growth rate used for level 3 measurement (as a percent)	4.00%	4.00%	4.00%
Discount rate used for level 3 measurement (as a percent)	20.00%	20.00%	20.00%
Recurring basis
Fair value
Short-term trading securities					129,911
Long-term available-for-sale securities		¥ 247,085			1,253,786
Recurring basis \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair value
Short-term trading securities					129,911
Long-term available-for-sale securities		204,945			907,716
Recurring basis \| Significant Other Observable Inputs (Level 2)
Fair value
Long-term available-for-sale securities		42,140			346,070
Non-recurring basis
Fair value
Property and equipment		20,706	¥ 21,879		51,750
Non-recurring basis \| Carrying value
Fair value
Property and equipment		171,239	115,042		220,963
Non-recurring basis \| Significant Unobservable Inputs (Level 3)
Fair value
Property and equipment		¥ 20,706	¥ 21,879		¥ 51,750

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Share-based compensation and Treasury shares (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based compensation
Recognized share-based compensation expenses	¥ 66,367	¥ 55,436	¥ 52,535
Treasury shares
Repurchase of ordinary shares (in shares)	3,096,764	3,096,764
Cash consideration paid for ordinary shares repurchased			107,331
Hotel operating costs
Share-based compensation
Recognized share-based compensation expenses	¥ 19,725	¥ 13,603	8,835
Selling and marketing expenses
Share-based compensation
Recognized share-based compensation expenses	1,530	811	907
General and administrative expenses
Share-based compensation
Recognized share-based compensation expenses	¥ 45,112	¥ 41,022	¥ 42,793

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - New Accounting Pronouncements Recently Adopted or Not Yet Adopted (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) ¥ / $	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Jan. 01, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥) ¥ / $
Recently issued accounting pronouncements
Income tax expense	$ 55,325	¥ 359,958	¥ 287,120	¥ 196,529
Franchisor Revenue	274,605	1,786,660	1,411,156	1,123,979
Net revenue	1,255,736	8,170,196	6,538,631	5,774,624
Retained earnings	423,238		1,812,174			¥ 2,753,715
Accumulated other comprehensive income (loss)	25,816		(4,503)			167,965
Future minimum operating lease commitments						25,087,674
Restricted cash	$ 73,982		500			¥ 481,348
Translation into United States Dollars
Foreign exchange rate used to translate amounts denominated in RMB to US dollar \| ¥ / $	6.5063					6.5063
ASU 2016-09 \| Adjustment
Recently issued accounting pronouncements
Income tax expense		(46,235)
Excess tax benefits from equity-based compensation presented as an operating activity		46,235	18,645	12,838
Excess tax benefits from equity-based compensation reclassified from financing activity to operating activities			¥ (18,645)	¥ (12,838)
ASU 2014-09 \| Proforma adjustment
Recently issued accounting pronouncements
Franchisor Revenue		(17,003)
Net revenue		68,607
Operating expenses		¥ 63,469
ASU 2016-01 \| Proforma adjustment
Recently issued accounting pronouncements
Retained earnings					¥ 40,640
Accumulated other comprehensive income (loss)					¥ (40,640)

ACQUISITIONS - AccorHotels (Details) ¥ in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2016 CNY (¥) shares	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2014 CNY (¥)
Acquisitions
Issuance of ordinary shares for acquisition of AccorHotels (Note 3)				¥ 1,143,521
Net revenue		$ 1,255,736	¥ 8,170,196	6,538,631	¥ 5,774,624
Net income		190,155	¥ 1,237,202	804,615	436,600
Fair values of assets acquired and liabilities assumed:
Goodwill		$ 348,087		¥ 171,504	¥ 108,344	¥ 2,264,758	¥ 64,654
Minimum
Fair values of assets acquired and liabilities assumed:
Amortization period of property and equipment		5 years	5 years	5 years	5 years
Maximum
Fair values of assets acquired and liabilities assumed:
Amortization period of property and equipment		10 years	10 years	10 years	10 years
AAPC LUB
Acquisitions
Noncontrolling interest (as a percent)	28.00%
Accor
Acquisitions
Percentage of ownership interest acquired	100.00%
Issuance of ordinary shares for acquisition of AccorHotels (Note 3)	¥ 1,143,521
Cash consideration	¥ 120,439
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	¥ 5,955,538
Pro forma net income				806,921	¥ 478,770
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		12 Months Ended
	May 25, 2017 CNY (¥)	Dec. 31, 2017 USD ($) segment item	Dec. 31, 2017 CNY (¥) segment item	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2014 CNY (¥)
Acquisitions
Net revenue		$ 1,255,736	¥ 8,170,196	¥ 6,538,631	¥ 5,774,624
Net income		190,155	¥ 1,237,202	804,615	436,600
Summary of the fair values of the assets acquired and liabilities assumed
Goodwill		$ 348,087		¥ 171,504	¥ 108,344	¥ 2,264,758	¥ 64,654
Number of operating segments \| segment		1	1
Number of reporting units \| item		1	1
Minimum
Summary of the fair values of the assets acquired and liabilities assumed
Amortization period of property and equipment		5 years	5 years	5 years	5 years
Maximum
Summary of the fair values of the assets acquired and liabilities assumed
Amortization period of property and equipment		10 years	10 years	10 years	10 years
Crystal Orange
Acquisitions
Percentage of ownership interest acquired	100.00%
Cash consideration	¥ 3,760,000
Net revenue			¥ 776,922
Net income			100,197
Business acquisition, pro forma information
Pro forma net revenue			8,571,372	¥ 7,473,851
Pro forma net income			¥ 1,275,788	¥ 858,012
Summary of the fair values of the assets acquired and liabilities assumed
Current assets						137,314
Property and equipment						842,102
Goodwill						2,093,254
Other noncurrent assets						130,813
Current liabilities						(222,205)
Noncurrent liabilities						(179,985)
Deferred tax liabilities						(322,797)
Noncontrolling interest						(4,206)
Total						3,765,478
Number of reporting units \| item		1	1
Number of reporting unit goodwill allocated to \| item		1	1
Business combination cost related to consultation services agreements and option cancellation agreement	¥ 256,300
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	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	20 years
Crystal Orange \| Favorable lease agreements
Summary of the fair values of the assets acquired and liabilities assumed
Intangible assets						90,704
Crystal Orange \| Franchise agreement
Summary of the fair values of the assets acquired and liabilities assumed
Intangible assets						58,691
Brand name \| Crystal Orange
Summary of the fair values of the assets acquired and liabilities assumed
Intangible assets						¥ 1,141,793

ACQUISITIONS - Hotels (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 CNY (¥) item	Dec. 31, 2015 CNY (¥) item	Dec. 31, 2017 CNY (¥)	Dec. 31, 2014 CNY (¥)
Acquisitions
Goodwill	$ 348,087	¥ 171,504	¥ 108,344	¥ 2,264,758	¥ 64,654
Minimum
Acquisitions
Amortization period of property and equipment	5 years	5 years	5 years
Maximum
Acquisitions
Amortization period of property and equipment	10 years	10 years	10 years
One hotel chain and two individual hotels acquired in 2015
Acquisitions
Current assets			¥ 3,382
Property and equipment			74,222
Deferred tax assets			515
Goodwill			46,135
Other noncurrent assets			663
Current liabilities			(22,864)
Deferred tax liabilities			(11,146)
Noncontrolling interest			(8,264)
Total			127,226
One hotel chain and two individual hotels acquired in 2015 \| Favorable lease agreements
Acquisitions
Intangible assets			41,283
One hotel chain and two individual hotels acquired in 2015 \| Franchise agreement
Acquisitions
Intangible assets			¥ 3,300
One hotel chain and two individual hotels acquired in 2015 \| Hotel chain
Acquisitions
Number of acquisitions \| item			1
Number of hotels \| item			13
One hotel chain and two individual hotels acquired in 2015 \| Individual hotel
Acquisitions
Number of acquisitions \| item			2
Two individual hotels acquired in 2016
Acquisitions
Current assets		¥ 5,330
Property and equipment		28,412
Current liabilities		(34,495)
Deferred tax liabilities		(1,251)
Total		3,000
Two individual hotels acquired in 2016 \| Favorable lease agreements
Acquisitions
Intangible assets		¥ 5,004
Two individual hotels acquired in 2016 \| Individual hotel
Acquisitions
Number of acquisitions \| item		2
Two individual hotels acquired in 2017
Acquisitions
Current assets				8,018
Property and equipment				33,965
Current liabilities				(65,614)
Deferred tax liabilities				(7,877)
Total				0
Two individual hotels acquired in 2017 \| Favorable lease agreements
Acquisitions
Intangible assets				¥ 31,508
Two individual hotels acquired in 2017 \| Individual hotel
Acquisitions
Number of acquisitions \| item	2

SHORT-TERM INVESTMENTS MEASURED AT FAIR VALUE (Details) - Dec. 31, 2017 ¥ in Thousands, $ in Thousands	USD ($)	CNY (¥)
Investment holdings
Short-term investments measured at fair value	$ 19,967	¥ 129,911
Hotel Group A
Investment holdings
Short-term investments measured at fair value		¥ 129,911

SHORT-TERM INVESTMENTS MEASURED AT FAIR VALUE - Loans and Equity Investments (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) shares	Dec. 31, 2017 CNY (¥) shares	Dec. 31, 2016 CNY (¥) shares	Dec. 31, 2015 CNY (¥) shares
Investment holdings
Classification of the accumulated unrealized gain from other comprehensive income to other income	$ 812	¥ 5,282	¥ 67,921
HMIN
Investment holdings
American depositary shares acquired \| shares				2,282,951
Consideration				¥ 434,811
Percentage of equity interest acquired				5.00%
American depositary shares sold \| shares			2,282,951
Classification of the accumulated unrealized gain from other comprehensive income to other income			¥ 67,921
Hotel Group A
Investment holdings
Ordinary shares acquired \| shares	8,756,000	8,756,000
Consideration for purchase of shares		¥ 95,802
Trading securities at fair value		129,911
Amount of increase in fair value recorded to other income		¥ 35,540
Hotel Group A \| Maximum
Investment holdings
Percentage of equity interest acquired		1.00%

LOAN RECEIVABLES (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
LOAN RECEIVABLES (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)
LOAN RECEIVABLES
Loan receivables, current portion		¥ 22,410		$ 58,494	¥ 380,580
Loan receivables, non-current portion		7,269		$ 6,506	42,330
Franchisees
LOAN RECEIVABLES
Loan receivables, current portion		14,649			29,754
Loan receivables, non-current portion		7,269			31,534
Other entities
LOAN RECEIVABLES
Loan receivables, current portion		7,761			350,826
Loan receivables, non-current portion					¥ 10,796
Loans receivables \| Franchisees
LOAN RECEIVABLES
Interest income	¥ 2,608	2,383	¥ 2,110
Loans receivables \| Franchisees \| Minimum
LOAN RECEIVABLES
Term of loan agreement	2 years
Interest rate				8.00%	8.00%
Loans receivables \| Franchisees \| Maximum
LOAN RECEIVABLES
Term of loan agreement	3 years
Interest rate				8.50%	8.50%
Loans receivables \| Other entities
LOAN RECEIVABLES
Interest income	¥ 8,471	¥ 1,186	¥ 2,273
Loans receivables \| Other entities \| Minimum
LOAN RECEIVABLES
Interest rate				6.00%	6.00%
Loans receivables \| Other entities \| Maximum
LOAN RECEIVABLES
Interest rate				12.00%	12.00%

PROPERTY AND EQUIPMENT, NET - Schedule (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Cost:
Property and equipment, gross		¥ 7,734,639	¥ 6,745,455
Less: Accumulated depreciation		(3,706,856)	(3,196,496)
Property and equipment net excluding construction in process		4,027,783	3,548,959
Construction in progress		495,095	161,509
Property and equipment, net	$ 695,154	4,522,878	3,710,468
Buildings
Cost:
Property and equipment, gross		247,406	255,646
Leasehold improvements
Cost:
Property and equipment, gross		6,452,472	5,563,815
Furniture, fixtures and equipment
Cost:
Property and equipment, gross		1,033,941	925,174
Motor vehicles
Cost:
Property and equipment, gross		¥ 820	¥ 820

PROPERTY AND EQUIPMENT, NET - Narrative (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥) item	Dec. 31, 2016 CNY (¥) item	Dec. 31, 2015 CNY (¥) item
PROPERTY AND EQUIPMENT, NET
Depreciation expense	¥ 752,960	¥ 673,784	¥ 648,277
Number of hotels demolished \| item	3	2	1
Property and equipment written off	¥ 2,829	¥ 9,905	¥ 2,301
Gain (loss) on demolition of property and equipment	¥ (868)	¥ (7,205)	¥ 5,519
Number of leased hotels likely to be demolished \| item	7
Aggregate carrying amount of property and equipment at the leased hotels likely to be demolished	¥ 21,792
Impairment loss	¥ 0

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE - Schedule (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)
Intangible assets, net
Intangible assets, gross		¥ 422,975			¥ 1,752,835
Less: Accumulated amortization		(80,281)			(108,863)
Total		342,694		$ 252,674	1,643,972
Unfavorable lease
Unfavorable lease agreements		3,924			3,924
Less: Accumulated amortization		(3,102)			(3,232)
Unfavorable lease agreements, net		822			692
Amortization expense of intangible assets	¥ 31,009	17,173	¥ 13,415
Franchise agreement
Intangible assets, net
Intangible assets, gross		11,000			69,691
Non-compete agreement
Intangible assets, net
Intangible assets, gross		400			400
Favorable lease agreements
Intangible assets, net
Intangible assets, gross		135,874			255,657
Purchased software
Intangible assets, net
Intangible assets, gross		55,101			64,694
Brand name
Intangible assets, net
Intangible assets, gross		28,600			1,170,393
Master brand agreement
Intangible assets, net
Intangible assets, gross		¥ 192,000			¥ 192,000

INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE - Amortization (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Amortization for Intangible Assets
2018	¥ 33,404
2019	31,885
2020	30,830
2021	29,490
2022	27,440
Thereafter	128,530
Amortization for Intangible Assets, Total	281,579
Amortization for Unfavorable Lease
2018	(130)
2019	(130)
2020	(130)
2021	(130)
2022	(130)
Thereafter	(42)
Amortization for Unfavorable Lease, Total	(692)	¥ (822)
Net Amortization
2018	33,274
2019	31,755
2020	30,700
2021	29,360
2022	27,310
Thereafter	128,488
Net Amortization, Total	¥ 280,887

LAND USE RIGHTS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
LAND USE RIGHTS (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)
LAND USE RIGHTS
Land use rights (Note 3)		¥ 149,668		¥ 149,668
Less: Accumulated amortization		(4,147)		(9,560)
Total		145,521	$ 21,534	¥ 140,108
Amortization expense of land use rights	¥ 5,413	¥ 4,147

LONG-TERM INVESTMENTS - Schedule (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Jan. 31, 2016
Investment holdings
Long-term investments	$ 363,028	¥ 2,361,969	¥ 1,064,321
Cjia
Investment holdings
Equity-method investments ownership percentage	17.00%	17.00%	23.00%
Mobike \| Maximum
Investment holdings
Cost-method investments ownership percentage	1.00%	1.00%
Distrii
Investment holdings
Equity-method investments ownership percentage	18.00%	18.00%		39.00%
Available-for-sale securities \| Quanjude
Investment holdings
Long-term investments		¥ 127,444	¥ 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 \| Hotel Group B
Investment holdings
Long-term investments		780,272
Available-for-sale securities \| Cjia
Investment holdings
Long-term investments		246,070	¥ 42,140
Available-for-sale securities \| CREATER
Investment holdings
Long-term investments		¥ 100,000
Cost-method investments \| BJ UBOX
Investment holdings
Cost-method investments ownership percentage	2.00%	2.00%	3.00%
Long-term investments		¥ 33,822	¥ 48,220
Cost-method investments \| BJ GOOAGOO
Investment holdings
Cost-method investments ownership percentage	19.00%	19.00%	19.00%
Long-term investments		¥ 60,000	¥ 60,000
Cost-method investments \| Founder Service
Investment holdings
Cost-method investments ownership percentage	11.00%	11.00%	11.00%
Long-term investments		¥ 45,000	¥ 45,000
Cost-method investments \| Qingpu
Investment holdings
Cost-method investments ownership percentage	5.00%	5.00%	10.00%
Long-term investments		¥ 17,143	¥ 17,143
Cost-method investments \| Mobike
Investment holdings
Long-term investments		¥ 66,288
Cost-method investments \| Mobike \| Maximum
Investment holdings
Cost-method investments ownership percentage	1.00%	1.00%
Cost-method investments \| Blossom Hill
Investment holdings
Cost-method investments ownership percentage	11.00%	11.00%
Long-term investments		¥ 60,194
Cost-method investments \| OYO
Investment holdings
Cost-method investments ownership percentage	1.00%	1.00%
Long-term investments		¥ 66,467
Cost-method investments \| Other investments
Investment holdings
Long-term investments		¥ 6,803	¥ 2,208
Equity-method investments \| CREATER
Investment holdings
Equity-method investments ownership percentage	20.00%	20.00%	20.00%
Long-term investments		¥ 102,709	¥ 100,000
Equity-method investments \| Sheen Star
Investment holdings
Equity-method investments ownership percentage	20.00%	20.00%	20.00%
Long-term investments		¥ 20,864	¥ 20,862
Equity-method investments \| Distrii
Investment holdings
Equity-method investments ownership percentage	18.00%	18.00%	39.00%
Long-term investments		¥ 45,156	¥ 28,562
Equity-method investments \| AAPC LUB
Investment holdings
Equity-method investments ownership percentage	28.00%	28.00%	28.00%
Long-term investments		¥ 477,560	¥ 446,100
Equity-method investments \| China Young
Investment holdings
Equity-method investments ownership percentage	37.00%	37.00%	37.00%
Long-term investments		¥ 40,811	¥ 43,054
Equity-method investments \| Hitone
Investment holdings
Equity-method investments ownership percentage	20.00%	20.00%
Long-term investments		¥ 30,300
Equity-method investments \| Hanmo
Investment holdings
Equity-method investments ownership percentage	60.00%	60.00%
Long-term investments		¥ 26,000
Equity-method investments \| Other investments
Investment holdings
Long-term investments		¥ 9,066	¥ 6,087

LONG-TERM INVESTMENTS - Available-for-sale securities (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands	1 Months Ended			12 Months Ended
	Dec. 31, 2017 CNY (¥) item shares	Sep. 30, 2017 CNY (¥)	Jun. 30, 2014 CNY (¥) ¥ / shares shares	Dec. 31, 2017 USD ($) item	Dec. 31, 2017 CNY (¥) item	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Available-for-sale securities
Unrealized securities holding gains, net of tax				$ 133	¥ 868	¥ 16,449	¥ 68,069
Investment income (loss)				$ (1,811)	¥ (11,783)	¥ 6,157	¥ (2,896)
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%
Hotel Group B
Available-for-sale securities
Ordinary shares acquired in investment of available-for-sale (in shares) \| shares	2,309,981
Consideration/purchase cost	¥ 760,215
Cjia
Available-for-sale securities
Equity interest owned (as a percent)	17.00%				17.00%	23.00%
Convertible notes term						60 months
Original value of three convertible notes invested	¥ 251,500				¥ 251,500	¥ 51,200
Original number of convertible notes sets \| item	3				3
Convertible notes purchase					¥ 200,300
Additional number of convertible notes sets \| item				2	2
Gain recognized on deemed disposal					¥ 40,148
Investment income (loss)					(32,711)	(24,615)
Cost of equity-method investment	¥ 0				0
Carrying amount of convertible note	¥ 246,070				246,070	¥ 42,140
Chengjia Hotel Management Co., Ltd. \| Cjia
Available-for-sale securities
Investment income from deconsolidation					49,630
CREATER
Available-for-sale securities
Percentage of equity interest acquired						20.00%
Convertible notes term		2 years
Convertible notes purchase		¥ 100,000
Investment income (loss)					2,709	¥ 0
Interest rate		1000.00%
Available-for-sale securities
Available-for-sale securities
Unrealized securities holding gains, net of tax					¥ 868	¥ (4,856)
Maximum \| Hotel Group B
Available-for-sale securities
Percentage of equity interest acquired	1.00%				1.00%

LONG-TERM INVESTMENTS - Cost-method investments (Details) ¥ in Thousands, $ in Millions	1 Months Ended
	Nov. 30, 2017 CNY (¥) shares	May 31, 2017 shares	Jan. 31, 2017 USD ($) shares	Sep. 30, 2015 CNY (¥) shares	Dec. 31, 2017	Sep. 30, 2017 CNY (¥)	Dec. 31, 2016	Nov. 30, 2014 CNY (¥)
BJ GOOAGOO
Cost-method investments
Percentage of equity interest acquired								8.00%
Consideration for purchase of investments								¥ 10,289
GOOAGOO
Cost-method investments
Percentage of equity interest hold in cost method investment					19.00%		19.00%
GOOAGOO \| Series A preferred shares
Cost-method investments
Shares purchased (in shares) \| shares				45,000,000
Consideration for purchase of investments				¥ 45,000
GOOAGOO \| Convertible notes
Cost-method investments
Consideration for purchase of investments				¥ 4,650
Mobike
Cost-method investments
Recognized gain	¥ 53
Number of shares sold \| shares	55,015
Mobike \| Maximum
Cost-method investments
Percentage of equity interest hold in cost method investment					1.00%
Mobike \| Preferred shares
Cost-method investments
Shares purchased (in shares) \| shares			1,316,205
Consideration for purchase of investments \| $			$ 5.0
Convertible notes converted (in shares) \| shares		648,559
Mobike \| Convertible notes
Cost-method investments
Consideration for purchase of investments \| $			$ 5.0
Interest rate			800.00%
OYO
Cost-method investments
Percentage of equity interest acquired						1.00%
Consideration for purchase of investments						¥ 66,467

LONG-TERM INVESTMENTS - Equity-method investments (Details) ¥ in Thousands, $ in Thousands	1 Months Ended			12 Months Ended
	Sep. 30, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Jan. 31, 2016 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥) shares	Dec. 31, 2015 CNY (¥)
Equity-method investments
Investment income (loss)				$ (1,811)	¥ (11,783)	¥ 6,157	¥ (2,896)
Maximum potential loss, in loss of value of interests in investments					¥ 56,300
Distrii
Equity-method investments
Consideration paid for acquisition of equity method investments			¥ 35,000
Equity-method investments ownership percentage			39.00%		18.00%
Percentage of equity interest sold				6.00%	6.00%
Consideration for transfer of investment					¥ 18,000
Recognized gain on disposal of equity-method investment					42,097
Investment income (loss)			¥ (6,438)		(7,503)
AAPC LUB
Equity-method investments
Percentage of equity interest acquired			28.00%
Investment income (loss)			¥ 28,496		31,459
China Young
Equity-method investments
Percentage of equity interest acquired		37.00%				37.00%
Consideration paid for acquisition of equity method investments						¥ 44,904
Investment income (loss)					(2,243)	¥ (1,851)
China Young \| Ordinary Shares
Equity-method investments
Shares acquired in investment of equity method investments (in shares) \| shares						982
China Young \| Series B preferred shares
Equity-method investments
Shares acquired in investment of equity method investments (in shares) \| shares						5,610
CREATER
Equity-method investments
Percentage of equity interest acquired		20.00%				20.00%
Consideration paid for acquisition of equity method investments		¥ 100,000
Investment income (loss)					2,709	¥ 0
Hitone
Equity-method investments
Percentage of equity interest acquired	20.00%
Consideration paid for acquisition of equity method investments	¥ 30,300
Investment income (loss)					0
Hanmo
Equity-method investments
Percentage of equity interest acquired	60.00%
Consideration paid for acquisition of equity method investments	¥ 26,000
Investment income (loss)					¥ 0

GOODWILL (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
GOODWILL (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Changes in carrying amount of goodwill
Balance at the beginning of the period, Gross Amount		¥ 175,945	¥ 112,785	¥ 66,650
Balance at the beginning of the period, Accumulated Impairment Loss		(4,441)	(4,441)	(1,996)
Balance at the beginning of the period, Net Amount		171,504	108,344	64,654
Impairment losses recognized		0	0	(2,445)
Increase in goodwill related to acquisitions		2,093,254	63,160	46,135
Balance at the end of the period, Gross Amount		2,269,199	175,945	112,785
Balance at the end of the period, Accumulated Impairment Loss		(4,441)	(4,441)	(4,441)
Balance at the end of the period, Net Amount	$ 348,087	¥ 2,264,758	¥ 171,504	¥ 108,344

DEBT - Components (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Debt
Short-term Debt	$ 20,106	¥ 130,815	¥ 298,291
Total		130,815	298,291
Long-term bank borrowings, non-current portion	$ 756,463	4,921,774
Long-term debt		4,921,774
Bank borrowings
Debt
Long-term bank borrowings, current portion		131
Short-term Debt		130,684	¥ 298,291
Bank borrowings
Debt
Long-term bank borrowings, non-current portion		1,894,722
Convertible senior notes
Debt
Long-term debt		¥ 3,027,052

DEBT - Bank borrowings (Details) ¥ in Thousands, $ in Thousands	1 Months Ended										12 Months Ended						36 Months Ended
	Nov. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	May 31, 2017 USD ($)	Apr. 30, 2017 CNY (¥)	Feb. 28, 2017 CNY (¥)	Sep. 30, 2016 CNY (¥)	May 31, 2016 CNY (¥)	Jan. 31, 2016 USD ($)	Jul. 31, 2015 USD ($)	Sep. 30, 2012 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 USD ($)	Dec. 31, 2013 CNY (¥)	Dec. 31, 2015 CNY (¥)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Jul. 31, 2015 CNY (¥)
Revolving bank credit facility
Debt
Term of debt instrument			35 months							3 years
Maximum borrowing amount			$ 250,000							¥ 300,000						¥ 500,000
Line of credit draw down amount			$ 250,000														¥ 204,540
Repayment of line of credit facility	$ 250,000																¥ 204,540
Weighted average interest rate (as a percent)											3.04%	3.04%			5.61%	6.00%
Revolving bank credit facility \| Libor
Debt
Percentage points added to the reference rate			1.75%
Term facility
Debt
Term of debt instrument					3 years
Maximum borrowing amount			$ 250,000		¥ 500,000
Line of credit draw down amount											$ 250,000
Repayment of line of credit facility											0
Three-year bank loan contract
Debt
Term of debt instrument				3 years
Maximum borrowing amount																		$ 40,000
Deposit pledged \| ¥				¥ 307,000
Line of credit draw down amount											40,000
Repayment of line of credit facility											10
Loan to be repaid within one year											$ 20
Weighted average interest rate (as a percent)											2.68%	2.68%
Three-year bank loan contract \| Libor
Debt
Percentage points added to the reference rate				1.40%
One-year bank loan due June 30, 2016
Debt
Term of debt instrument									1 year
Maximum borrowing amount									$ 50,000
Deposit pledged \| ¥																				¥ 360,000
Interest rate (as a percent)													1.81%	1.81%	1.50%		1.50%
Line of credit draw down amount															$ 50,000
Repayment of line of credit facility													$ 50,000
One-year bank loan due June 30, 2016 \| Libor
Debt
Percentage points added to the reference rate									1.20%
One-year bank loan due May 31, 2018
Debt
Term of debt instrument		1 year
Maximum borrowing amount		$ 20,000
Deposit pledged \| ¥																			¥ 160,000
Line of credit draw down amount		20,000
Repayment of line of credit facility		$ 0
Weighted average interest rate (as a percent)											3.22%	3.22%
One-year bank loan due May 31, 2018 \| Libor
Debt
Percentage points added to the reference rate		1.50%
One-year bank revolving loan
Debt
Term of debt instrument								1 year
Maximum borrowing amount								$ 43,000
Interest rate (as a percent)											2.88%		2.70%	2.70%
Line of credit draw down amount													$ 43,000
Repayment of line of credit facility											$ 43,000
One-year revolving corporation overdraft facility
Debt
Term of debt instrument							1 year
Maximum borrowing amount \| ¥							¥ 50,000
Line of credit draw down amount \| ¥														¥ 0
One-year revolving general credit facility
Debt
Term of debt instrument						1 year
Maximum borrowing amount \| ¥						¥ 200,000
Interest rate (as a percent)						4.40%
Line of credit draw down amount \| ¥												¥ 1,000
Repayment of line of credit facility \| ¥												¥ 1,000
Minimum \| One-year bank revolving loan \| Libor
Debt
Percentage points added to the reference rate								2.00%

DEBT - Convertible Senior Notes due 2022 (Details) - Convertible senior notes - The Notes $ / shares in Units, ¥ in Thousands	Nov. 03, 2017 USD ($) $ / shares	Nov. 03, 2017 CNY (¥)	Nov. 03, 2017 CNY (¥)
Debt Instrument [Line Items]
Aggregate principal amount	$ 475,000,000
Fixed interest rate (as a percent)	0.375%		0.375%
Initial conversion rate per ADS	5.4869	5.4869
Increment used for debt conversion	$ 1,000
Initial conversion price \| $ / shares	$ 182.25
Repurchase price as a percentage of principal amount	100.00%	100.00%
Proceeds from issuance of debt	$ 466,866,463	¥ 3,092,850
Debt issuance costs	$ 8,133,537		¥ 53,882

DEBT - ADS Lending Arrangement (Details) - ADS Lending Arrangement $ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2017 CNY (¥) shares
Debt Instrument [Line Items]
Number of Loaned ADS lent	2,606,278
ADS par value per share \| $ / shares	$ 0.0004
ADS outstanding	2,606,278	2,606,278
Debt issuance costs	$ 4,000,000	¥ 26,499

DEBT - Capped Call Options (Details) - Call Option ¥ in Thousands		12 Months Ended
	Oct. 26, 2017 USD ($)	Dec. 31, 2017 CNY (¥) $ / item
Debt Instrument [Line Items]
Cap price of the capped call transactions per ADS		221.31
Premium paid for capped call transactions	$ 26,790,000	¥ 177,476

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Payable for business acquisitions		¥ 117,617	¥ 171,484
Accrual for customer loyalty program		156,092	121,066
Payable to noncontrolling interest holders		86,896	34,791
Payable to franchisees		418,293	212,242
Other payables		262,086	170,944
Accrued rental		84,423	66,804
Accrued utilities		61,748	46,379
Deferred rental, current		49,857	37,648
Other accrued expenses		27,890	34,479
Total	$ 194,412	¥ 1,264,902	¥ 895,837
Additional disclosures
Payable to franchisees, term (in years)	1 year

HOTEL OPERATING COSTS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
HOTEL OPERATING COSTS
Rents		¥ 2,058,954	¥ 1,870,879	¥ 1,804,532
Utilities		365,100	345,615	341,620
Personnel costs		1,388,284	1,088,380	919,555
Depreciation and amortization		773,202	676,996	645,058
Consumable, food and beverage		550,513	494,764	485,099
Others		538,098	455,539	316,283
Total	$ 872,101	¥ 5,674,151	¥ 4,932,173	¥ 4,512,147

PRE-OPENING EXPENSES (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
PRE-OPENING EXPENSES
Rents		¥ 191,502	¥ 67,277	¥ 95,977
Personnel costs		6,221	1,560	5,903
Others		8,731	3,010	8,131
Total	$ 31,731	¥ 206,454	¥ 71,847	¥ 110,011

SHARE-BASED COMPENSATION - Plan (Details)	12 Months Ended
SHARE-BASED COMPENSATION - Plan (Details)	Dec. 31, 2017 shares	Dec. 31, 2016 shares	Dec. 31, 2015 ¥ / shares shares	Dec. 31, 2015 $ / shares shares	Mar. 31, 2015 shares	Aug. 31, 2010 shares	Sep. 30, 2009 shares	Oct. 31, 2008 shares	Jun. 30, 2007 shares	Feb. 28, 2007 shares
Share options
Share based compensation
Weighted-average grant date fair value for options granted (in CNY or dollars per share) \| (per share)			¥ 11.73	$ 1.88
Share options \| Performance Condition
Share based compensation
Vesting period			2 years	2 years
Number of options, granted (in shares)			85,292	85,292
Number of options granted based on the actual performance		88,224
Second anniversary of the stated vesting commencement date \| Restricted stocks \| Performance Condition
Share based compensation
Share-based payment award, vesting percentage	50.00%
Vesting ratably over the following two years \| Restricted stocks \| Performance Condition
Share based compensation
Share-based payment award, vesting percentage	50.00%
Vesting period	2 years
Incentive Award Plans
Share based compensation
Vesting period	10 years
Incentive Award Plans \| Maximum
Share based compensation
Share-based payment award, contractual term	10 years
Incentive Award Plans \| Share options
Share based compensation
Share-based payment award, option granted (in shares)	24,577,669
Incentive Award Plans \| Restricted stocks
Share based compensation
Share-based payment award, nonvested restricted stocks (in shares)	22,256,782
Incentive Award Plans \| Second anniversary of the stated vesting commencement date
Share based compensation
Share-based payment award, vesting percentage	50.00%
Incentive Award Plans \| Vesting ratably over the following two years
Share based compensation
Share-based payment award, vesting percentage	50.00%
Vesting period	2 years
2007 Global Share Plan
Share based compensation
Share-based payment award, maximum number of incentive award available (in shares)										10,000,000
2008 Global Share Plan
Share based compensation
Share-based payment award, maximum number of incentive award available (in shares)								7,000,000	3,000,000
2009 Share Incentive Plan
Share based compensation
Share-based payment award, maximum number of incentive award available (in shares)					43,000,000	15,000,000	3,000,000

SHARE-BASED COMPENSATION - Option assumptions and Activity (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2017 CNY (¥) shares	Dec. 31, 2016 CNY (¥) shares	Dec. 31, 2015 CNY (¥) shares	Dec. 31, 2017 CNY (¥) shares
Number of Options
Exercised (in shares)			(609,224)
Share options
Share based compensation
Suboptimal exercise factor				4.16
Risk-free interest rate, minimum (as a percent)				1.49%
Risk-free interest rate, maximum (as a percent)				1.74%
Volatility, minimum (as a percent)				38.88%
Volatility, maximum (as a percent)				39.25%
Life of option				6 years
Number of Options
Share options outstanding at the beginning of the period (in shares)		2,656,244
Forfeited (in shares)		(2,296)
Exercised (in shares)		(609,224)	(684,632)	(1,528,104)
Share options outstanding at the end of the period (in shares)		2,044,724	2,656,244
Share options vested or expected to vest (in shares)	2,026,971				2,026,971
Share options exercisable (in shares)	1,969,391				1,969,391
Weighted Average Exercise Price
Share options outstanding at the beginning of the period (in dollars per shares) \| $ / shares	$ 2.15
Forfeited (in dollars per shares) \| $ / shares	1.82
Exercised (in dollars per shares) \| $ / shares	2.25
Share options outstanding at the end of the period (in dollars per shares) \| $ / shares	2.12
Share options vested or expected to vest (in dollars per shares) \| $ / shares	2.09
Share options exercisable (in dollars per shares) \| $ / shares	$ 2.01
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value
Share options outstanding, Weighted average remaining contractual life		1 year 5 months 12 days
Share options vested or expected to vest, Weighted average remaining contractual life		1 year 5 months 9 days
Share options exercisable, Weighted average remaining contractual life		1 year 4 months 17 days
Share options outstanding, Aggregate intrinsic value \| $	$ 69,500
Share options vested or expected to vest, Aggregate intrinsic value \| $	68,950
Share options exercisable, Aggregate intrinsic value \| $	$ 67,148
Total unrecognized compensation expense \| ¥					¥ 844
Weighted-average period for recognition of unrecognized compensation costs		1 year 26 days
Aggregate intrinsic value of options exercised \| ¥		¥ 77,302	¥ 40,717	¥ 46,433

SHARE-BASED COMPENSATION - Nonvested restricted stocks (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥) $ / shares	Dec. 31, 2017 CNY (¥) shares	Dec. 31, 2016 CNY (¥) tranche shares	Dec. 31, 2015 CNY (¥) tranche shares
Share based compensation
Number of tranche \| tranche			10	10
Restricted stocks
Number of Restricted Stocks
Nonvested restricted stocks outstanding at the beginning of the period (in shares)		13,540,557
Granted (in shares)		493,972
Forfeited (in shares)		(174,984)
Vested (in shares)		(1,626,768)
Adjusted (in shares)		259,793
Nonvested restricted stocks outstanding at the end of the period (in shares)		12,492,570	13,540,557
Weighted Average Grant Date Fair Value
Nonvested restricted stocks outstanding at the beginning of the period (in dollars per shares) \| $ / shares	$ 5.20
Granted (in dollars per shares) \| $ / shares	21.78
Forfeited (in dollars per shares) \| $ / shares	6.43
Vested (in dollars per shares) \| $ / shares	4.99
Adjusted (in dollars per share) \| $ / shares	5.11
Nonvested restricted stocks outstanding at the end of the period (in dollars per shares) \| $ / shares	$ 5.86
Total unrecognized compensation expense \| ¥	$ 433,474	¥ 433,474
Weighted-average period for recognition of unrecognized compensation costs		4 years 5 months 5 days
Total fair value of nonvested restricted stocks, vested \| ¥		¥ 273,800	¥ 123,129	¥ 69,130
Restricted stocks \| Performance Condition
Number of Restricted Stocks
Granted (in shares)			1,876,975	6,599,106
Restricted stocks \| Performance Condition \| Second anniversary of the stated vesting commencement date
Share based compensation
Share-based payment award, vesting percentage		50.00%
Restricted stocks \| Performance Condition \| Vesting ratably over the following two years
Share based compensation
Share-based payment award, vesting percentage		50.00%
Period for remaining percentage vested		2 years

EARNINGS PER SHARE (Details) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2017 $ / shares	Dec. 31, 2017 CNY (¥) ¥ / shares shares	Dec. 31, 2016 CNY (¥) ¥ / shares shares	Dec. 31, 2015 CNY (¥) ¥ / shares shares
EARNINGS PER SHARE
Net income attributable to ordinary shareholders - basic \| ¥		¥ 1,237,202	¥ 804,615	¥ 436,600
Eliminate the dilutive effect of interest expense of convertible senior notes \| ¥		4,549
Net income attributable to ordinary shareholders - diluted \| ¥		¥ 1,241,751	¥ 804,615	¥ 436,600
Weighted average ordinary shares outstanding - basic		279,272,140	275,139,070	250,533,204
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method		12,202,369	7,750,424	5,570,963
Dilutive effect of convertible senior notes		1,599,469
Weighted average ordinary shares outstanding - diluted		293,073,978	282,889,494	256,104,167
Basic earnings per share (in RMB and USD per share) \| (per share)	$ 0.68	¥ 4.43	¥ 2.92	¥ 1.74
Diluted earnings per share (in RMB and USD per share) \| (per share)	$ 0.65	¥ 4.24	¥ 2.84	¥ 1.70

Cash Dividend (Details) ¥ in Thousands			12 Months Ended
Cash Dividend (Details) ¥ in Thousands	Oct. 23, 2017 $ / shares	Dec. 21, 2015 $ / shares	Dec. 31, 2017 CNY (¥)	Dec. 31, 2015 CNY (¥)
Cash Dividend
Cash dividends declared (Per share) \| $ / shares	$ 0.16	$ 0.17
Cash dividends recorded as a reduction against retained earnings			¥ 295,661	¥ 276,261
Cash dividends recorded as a receivable in other current assets			¥ 10,682

INCOME TAXES (Details) ¥ in Thousands, $ in Thousands	12 Months Ended											24 Months Ended	36 Months Ended
INCOME TAXES (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2015
Income tax
Effective tax rate (as a percent)	25.00%	25.00%	25.00%	25.00%
Profit tax	$ 55,325	¥ 359,958	¥ 287,120	¥ 196,529
PRC
Income tax
Effective tax rate (as a percent)	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%
China Lodging Holdings (HK) Limited \| Hong Kong
Income tax
Effective tax rate (as a percent)	16.50%	16.50%
Profit tax		¥ 0
Starway \| Hong Kong
Income tax
Effective tax rate (as a percent)	16.50%	16.50%
IBIS China Investment Limited \| Hong Kong
Income tax
Effective tax rate (as a percent)	16.50%	16.50%
ACL Greater China Limited \| Hong Kong
Income tax
Effective tax rate (as a percent)	16.50%	16.50%
TAHM Investment Limited \| Hong Kong
Income tax
Effective tax rate (as a percent)	16.50%	16.50%
City Home Investment Limited \| Hong Kong
Income tax
Effective tax rate (as a percent)	16.50%	16.50%
Orange Hotel HongKong Limited \| Hong Kong
Income tax
Effective tax rate (as a percent)	16.50%	16.50%
Huazhu Investment I Limited \| Hong Kong
Income tax
Effective tax rate (as a percent)	16.50%	16.50%
Huazhu Investment II Limited \| Hong Kong
Income tax
Effective tax rate (as a percent)	16.50%	16.50%
China Lodging Holdings Singapore Pte. Ltd. \| Singapore
Income tax
Effective tax rate (as a percent)	17.00%	17.00%	17.00%	17.00%
Profit tax		¥ 0	¥ 0	¥ 0
Hanting Suzhou \| PRC
Income tax
Effective tax rate (as a percent)	25.00%	25.00%										15.00%		12.50%
Income tax exemption period	2 years	2 years
Period of income tax rate reduction	3 years	3 years
Percentage of tax reduction	50.00%	50.00%
Jizhu Shanghai \| PRC
Income tax
Effective tax rate (as a percent)													12.50%
Income tax exemption period	2 years	2 years
Period of income tax rate reduction	3 years	3 years
Percentage of tax reduction	50.00%	50.00%

INCOME TAXES - Reconciliation (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥) ¥ / shares	Dec. 31, 2016 CNY (¥) ¥ / shares	Dec. 31, 2015 CNY (¥) ¥ / shares
Tax expense (benefit)
Current Tax \| ¥		¥ 436,195	¥ 253,674	¥ 246,678
Deferred Tax	$ (11,717)	(76,237)	33,446	(50,149)
Total	$ 55,325	¥ 359,958	¥ 287,120	¥ 196,529
Reconciliation between the effective income tax rate and the PRC statutory income tax rate
PRC statutory tax rate	25.00%	25.00%	25.00%	25.00%
Tax effect of other expenses that are not deductible in determining taxable profit	1.00%	1.00%	3.00%	3.00%
Effect of different tax rate of group entities operating in other jurisdictions	1.00%	1.00%	(1.00%)
Effect of change in valuation allowance			1.00%	5.00%
Effect of tax holiday	(1.00%)	(1.00%)	(3.00%)	(7.00%)
Effect of cash dividends	(1.00%)	(1.00%)	3.00%	5.00%
Effect of disposal of subsidiary			(1.00%)
Effect of excess tax benefit of rewards	(3.00%)	(3.00%)
Effective tax rate	22.00%	22.00%	27.00%	31.00%
Aggregate amount and per share effect of the tax holidays
Aggregate amount \| ¥		¥ 24,424	¥ 27,224	¥ 41,288
Per share effect - basic (in RMB per share) \| ¥ / shares		¥ 0.09	¥ 0.10	¥ 0.16
Per share effect - diluted (in RMB per share) \| ¥ / shares		¥ 0.08	¥ 0.10	¥ 0.16

INCOME TAXES - Deferred income tax assets and liabilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Net loss carryforward	¥ 139,650	¥ 97,219
Deferred revenue	78,788	71,517
Deferred rent	8,763	2,968
Long-term assets	130,112	51,579
Bad debt provision	4,437	2,856
Accrual for customer loyalty program	37,298	30,267
Accrued payroll	14,155	3,588
Other accrued expenses	20,706	17,688
Share-based compensation	13,447	10,978
Others	1,425	2,379
Valuation allowance	(123,138)	(114,625)
Total deferred tax assets	325,643	176,414
Deferred tax liabilities:
Favorable lease, building and land use rights-fair value adjustment	398,761	67,167
Capitalized interest	2,929	3,519
Unrealized gain for investment	6,861	14,826
Others	13,539	10,817
Total deferred tax liabilities	¥ 422,090	¥ 96,329

INCOME TAXES - Valuation allowance (Details) - CNY (¥) ¥ in Thousands	2 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Valuation allowance
Valuation allowance additions due to acquisition		¥ 2,963	¥ 11,724
Loss carryforwards	¥ 558,598	558,598
Uncertain tax benefits
Interest or penalty expense		0	0	¥ 0
Roll-forward of the unrecognized tax benefits
Beginning balance		19,787	14,755	8,345
Addition for tax positions		6,623	5,032	6,410
Ending balance	26,410	¥ 26,410	19,787	14,755
Withholding income tax rate (as a percentage)		10.00%
Withholding income tax rate with Hong Kong as holding company (as a percentage)		5.00%
Cumulated undistributed earnings of the Group's PRC subsidiaries	2,761,814	¥ 2,761,814
PRC dividend withholding tax accrued			32,570	30,696
PRC dividend withholding tax liability	8,552	8,552
Additional provision for PRC dividend withholding tax accrued		¥ 0
Future annual dividend distribution	¥ 300,000
Period of statute of limitations		3 years
Period of statute of limitations, if the underpayment is more than the specified amount		5 years
Minimum amount of underpayment of taxes for statute of limitations to be extended to five years		¥ 100
Period of statute of limitations for transfer pricing issues		10 years
Valuation allowance for deferred tax assets
Valuation allowance
Charge to costs and expenses		¥ 59,929	55,757	47,122
Valuation allowance additions due to acquisition		2,963	11,724
Charge taken against allowance		46,903	17,064	15,508
Write off		¥ 7,476	¥ 28,319	¥ 1,955

MAINLAND CHINA CONTRIBUTION PLAN (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
MAINLAND CHINA CONTRIBUTION PLAN
Employee benefit contributions	¥ 264,258	¥ 212,723	¥ 182,321

RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
RESTRICTED NET ASSETS
Minimum required percentage of after tax profit appropriated to general reserve fund	10.00%
Threshold percentage of general reserve fund to registered capital	50.00%
Reserve funds not distributed as cash dividends	¥ 378,591	¥ 277,342	¥ 209,782
Restricted share capital of PRC subsidiaries	3,102,568
Restricted net assets not available for distribution to the Company in the form of dividends, loans or advances	¥ 3,481,159

RELATED PARTY TRANSACTIONS AND BALANCES (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 CNY (¥)
Related party transaction
Amount due from related parties	$ 18,219		¥ 98,453		¥ 118,537
Due to related party			11,058		36,890
Loan payment	17,399	¥ 113,206	39,387	¥ 1,386
Loan collection	$ 18,421	119,855	9,285	1,522
Sheen Star
Related party transaction
Amount due from related parties			37,060		39,172
Interest income from related party			2,060
Loan payment			35,000
Accor
Related party transaction
Amount due from related parties			4,052		2,040
Due to related party			6,019		6,684
Accor \| Service fee
Related party transaction
Revenue from related parties		7,729	4,052
Accor \| Brand use fee, reservation fee and other related service fee
Related party transaction
Expenses with related parties		10,786	6,019
Cjia
Related party transaction
Amount due from related parties			50,365		15,460
Loan payment		84,950
Cjia \| Goods sold and service provided
Related party transaction
Revenue from related parties		8,486	353
Cjia \| Chengjia Hotel Management Co., Ltd.
Related party transaction
Consideration from sale of subsidiary			10,000
Ctrip
Related party transaction
Amount due from related parties			3,203		31,754
Due to related party			3,291		28,651
Ctrip \| Marketing and training fee
Related party transaction
Revenue from related parties		23,659	12,667
Ctrip \| Commission expenses
Related party transaction
Expenses with related parties		76,792	44,119	¥ 17,740
CREATER
Related party transaction
Amount due from related parties					26,979
Loan payment		¥ 26,979
Others
Related party transaction
Amount due from related parties			3,773		3,132
Due to related party			¥ 1,748		¥ 1,555

COMMITMENTS AND CONTINGENCIES - Operating lease and purchase commitments (Details) ¥ in Thousands	Dec. 31, 2017 CNY (¥)
Operating lease commitments
2018	¥ 1,823,626
2019	2,539,224
2020	2,518,195
2021	2,413,641
2022	2,284,216
Thereafter	13,508,772
Total	25,087,674
Purchase commitments
Purchase commitments expected to be incurred within one year related to leasehold improvements and installation of equipment for hotel operations	¥ 160,334

COMMITMENTS AND CONTINGENCIES - Contingencies (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Contingencies
Accrued contingencies	¥ 40,984
Reversed contingencies	35,969
Further accrued contingencies	¥ 10,719
Other operating expense
Contingencies
Accrued contingencies		¥ 66,234

SUBSEQUENT EVENTS (Details) ¥ in Thousands, € in Millions, $ in Millions	1 Months Ended				3 Months Ended	36 Months Ended
	Jan. 31, 2018 USD ($)	Nov. 30, 2017 USD ($)	May 31, 2017 USD ($)	Sep. 30, 2012 CNY (¥)	Mar. 31, 2018 EUR (€) shares	Dec. 31, 2015 CNY (¥)	Jan. 31, 2018 EUR (€)	Dec. 31, 2013 CNY (¥)
Revolving bank credit facility
SUBSEQUENT EVENTS
Line of credit draw down amount			$ 250			¥ 204,540
Debt term			35 months	3 years
Maximum borrowing amount			$ 250	¥ 300,000				¥ 500,000
Repayment of line of credit facility		$ 250				¥ 204,540
Subsequent Event \| Revolving bank credit facility
SUBSEQUENT EVENTS
Line of credit draw down amount \| $	$ 250
Subsequent Event \| Euro loan
SUBSEQUENT EVENTS
Line of credit draw down amount					€ 241
Debt term	3 years
Maximum borrowing amount							€ 260
Subsequent Event \| Hotel Group B
SUBSEQUENT EVENTS
Ordinary shares acquired \| shares					10,782,131
Consideration for investments					€ 489
Total shares held as investment \| shares					13,092,112

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - BALANCE SHEETS (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2014 CNY (¥)
Current assets:
Cash and cash equivalents	$ 534,054	¥ 3,474,719		¥ 3,235,007
Other current assets	50,588	329,140		208,929
Total current assets	885,469	5,761,124		4,174,681
Other assets	56,047	364,660		200,492
Long-term investments	363,028	2,361,969		1,064,321
Total assets	2,678,549	17,427,442		9,993,364
Current liabilities:
Short-term debt	20,106	130,815		298,291
Amount due to related parties	5,670	36,890		11,058
Accrued expenses and other current liabilities	194,412	1,264,902		895,837
Total current liabilities	565,068	3,676,501		2,966,081
Long-term debt	756,463	4,921,774
Total liabilities	1,683,470	10,953,162		4,577,207
Equity:
Ordinary shares(US$0.0001 par value per share; 8,000,000,000 shares authorized; 281,379,130 and 294,040,234 shares issued as of December 31, 2016 and 2017, and 278,282,366 and 280,518,358 shares outstanding as of December 31, 2016 and 2017, respectively)	33	212		204
Treasury shares (3,096,764 and 3,096,764 shares as of December 31 2016 and 2017, respectively)	(16,496)	(107,331)		(107,331)
Additional paid-in capital	557,019	3,624,135		3,699,056
Retained earnings	423,238	2,753,715		1,812,174
Accumulated other comprehensive (loss) income	25,816	167,965		(4,503)
Total equity	989,610	6,438,696		5,399,600
Total liabilities and equity	2,678,549	17,427,442		9,993,364
Parent Company
Current assets:
Cash and cash equivalents	85,548	556,604	$ 57,488	374,036	¥ 121,025	¥ 94,749
Short-term investments	19,967	129,911
Other current assets	5,691	37,030		173
Total current assets	111,206	723,545		374,209
Other assets	5,059	32,916
Investment in subsidiaries	1,583,514	10,302,818		5,512,131
Long-term investments	119,926	780,272		45,640
Total assets	1,819,705	11,839,551		5,931,980
Current liabilities:
Short-term debt	20,106	130,815		298,291
Amount due to related parties	48,087	312,871		222,402
Accrued expenses and other current liabilities	5,439	35,395		11,687
Total current liabilities	73,632	479,081		532,380
Long-term debt	756,463	4,921,774
Total liabilities	830,095	5,400,855		532,380
Equity:
Ordinary shares(US$0.0001 par value per share; 8,000,000,000 shares authorized; 281,379,130 and 294,040,234 shares issued as of December 31, 2016 and 2017, and 278,282,366 and 280,518,358 shares outstanding as of December 31, 2016 and 2017, respectively)	33	212		204
Treasury shares (3,096,764 and 3,096,764 shares as of December 31 2016 and 2017, respectively)	(16,496)	(107,331)		(107,331)
Additional paid-in capital	557,019	3,624,135		3,699,056
Retained earnings	423,238	2,753,715		1,812,174
Accumulated other comprehensive (loss) income	25,816	167,965		(4,503)
Total equity	989,610	6,438,696		5,399,600
Total liabilities and equity	$ 1,819,705	¥ 11,839,551		¥ 5,931,980

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - BALANCE SHEETS (Parenthetical) (Details) - $ / shares	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
BALANCE SHEETS
Ordinary shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	8,000,000,000	8,000,000,000
Ordinary shares, shares issued	294,040,234	281,379,130
Ordinary shares, shares outstanding	280,518,358	278,282,366	250,881,559	250,747,255
Treasury stock, shares	3,096,764	3,096,764
Parent Company
BALANCE SHEETS
Ordinary shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	8,000,000,000	8,000,000,000
Ordinary shares, shares issued	294,040,234	281,379,130
Ordinary shares, shares outstanding	280,518,358	278,282,366
Treasury stock, shares	3,096,764	(3,096,764)

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - STATEMENTS OF COMPREHENSIVE INCOME (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Operating costs and expenses:
Selling and marketing expenses	$ 33,039	¥ 214,959	¥ 146,525	¥ 179,568
General and administrative expenses	106,200	690,970	492,141	403,008
Total operating costs and expenses	1,045,734	6,803,858	5,650,292	5,204,734
Loss from operations	220,942	1,437,513	870,899	601,154
Interest income	17,313	112,645	67,366	26,712
Interest expense	(13,421)	(87,320)	(11,056)	(3,854)
Foreign exchange gain (loss)	(2,786)	(18,128)	16,481	7,814
Other income, net	25,157	163,678	133,755	6,979
Net income attributable to China Lodging Group, Limited	190,155	1,237,202	804,615	436,600
Other comprehensive income
Unrealized securities holding gains, net of tax of 7,151, (1,810) and (7,965) for 2015, 2016 and 2017	133	868	16,449	68,069
Reclassification of realized gains to net income, net of tax	(812)	(5,282)	(67,921)
Foreign currency translation adjustments	27,186	176,882	(12,627)	3,535
Comprehensive income attributable to China Lodging Group, Limited	216,662	1,409,670	740,516	508,204
Parent Company
Operating costs and expenses:
Selling and marketing expenses				157
General and administrative expenses	10,561	68,720	60,075	59,236
Total operating costs and expenses	10,561	68,720	60,075	59,393
Loss from operations	(10,561)	(68,720)	(60,075)	(59,393)
Interest income	247	1,606	273	30
Interest expense	13,306	86,570	10,453	3,198
Foreign exchange gain (loss)	(2,210)	(14,382)	14,750	7,477
Other income, net	6,711	43,666	69,919	2,488
Income in investment in subsidiaries	209,274	1,361,602	790,201	489,196
Net income attributable to China Lodging Group, Limited	190,155	1,237,202	804,615	436,600
Other comprehensive income
Unrealized securities holding gains, net of tax of 7,151, (1,810) and (7,965) for 2015, 2016 and 2017	133	868	16,449	68,069
Reclassification of realized gains to net income, net of tax	(812)	(5,282)	(67,921)
Foreign currency translation adjustments	27,186	176,882	(12,627)	3,535
Comprehensive income attributable to China Lodging Group, Limited	$ 216,662	¥ 1,409,670	¥ 740,516	¥ 508,204

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
STATEMENTS OF COMPREHENSIVE INCOME
Unrealized securities holding gains, tax	¥ (7,965)	¥ (1,810)	¥ 7,151
Foreign currency translation adjustments, tax	0	0	0
Parent Company
STATEMENTS OF COMPREHENSIVE INCOME
Unrealized securities holding gains, tax	(7,965)	(1,810)	7,151
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - STATEMENTS OF CASH FLOWS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Operating activities:
Net income	$ 190,069	¥ 1,236,647	¥ 796,482	¥ 439,380
Adjustments to reconcile net income to net cash used in operating activities:
Share-based compensation	10,200	66,367	55,436	52,535
Investment income	(24,588)	(159,974)	(116,763)	(2,767)
Amortization of issuance cost of convertible senior notes	399	2,598
Changes in operating assets and liabilities:
Deferred revenue	617	4,016	19,529	216,805
Other current assets	(11,730)	(76,320)	(40,813)	(15,518)
Other assets	(8,363)	(54,411)	(5,046)	1,787
Salary and welfare payable	20,464	133,142	60,669	24,532
Accrued expenses and other current liabilities	44,293	288,185	202,351	121,502
Net cash provided by (used in) operating activities	376,955	2,452,596	2,066,301	1,762,511
Investing activities:
Purchase of long-term investments	(204,034)	(1,327,508)	(293,125)	(105,707)
Purchase of short-term investments	(14,724)	(95,802)		(434,811)
Net cash (used in) provided by investing activities	(1,032,268)	(6,716,254)	183,762	(1,550,357)
Financing activities:
Net proceeds from issuance of ordinary shares upon exercise of option	1,394	9,073	12,206	22,619
Payment of share repurchase				(107,331)
Proceeds from short-term bank borrowings	20,978	136,488	281,719	589,376
Repayment of short-term bank borrowings	(45,291)	(294,677)	(332,555)	(283,516)
Proceeds from long-term bank borrowings	558,409	3,633,174
Repayment of long-term bank borrowings	(253,741)	(1,650,917)
Proceeds from issuance of convertible senior notes, net of issuance cost and capped call option	449,595	2,925,203
Debt financing costs paid	(1,501)	(9,763)
Proceeds from ADS lending	1	7
Dividends paid	(47,084)	(306,343)	(276,261)
Net cash provided by (used in) financing activities	697,186	4,536,103	(266,194)	219,443
Effect of exchange rate changes on cash and cash equivalents	(5,031)	(32,733)	13,300	(2,624)
Net (decrease) increase in cash and cash equivalents	36,842	239,712	1,997,169	428,973
Cash and cash equivalents at the beginning of the period		3,235,007
Cash and cash equivalents at the end of the period	534,054	3,474,719	3,235,007
Parent Company
Operating activities:
Net income	190,155	1,237,202	804,615	436,600
Adjustments to reconcile net income to net cash used in operating activities:
Share-based compensation	10,200	66,367	55,436	52,535
Income in investment in subsidiaries	(209,274)	(1,361,602)	(790,201)	(489,196)
Investment income	(6,274)	(40,822)	(51,123)
Amortization of issuance cost of convertible senior notes	399	2,598
Changes in operating assets and liabilities:
Deferred revenue				(364)
Other current assets	(3,988)	(25,946)	776	2,312
Other assets	(5,059)	(32,916)
Salary and welfare payable			(25)	(86)
Accrued expenses and other current liabilities	3,644	23,710	(16,618)	15,463
Net cash provided by (used in) operating activities	(20,197)	(131,409)	2,860	17,264
Investing activities:
Investment in subsidiaries	(499,723)	(3,251,346)		(168,709)
Receipt of investment in subsidiaries			236,238
Purchase of long-term investments	(116,843)	(760,215)	(47,859)
Proceeds from sale of long-term investments	8,955	58,264	3,845
Purchase of short-term investments	(14,724)	(95,802)		(271,630)
Proceeds from sale of short-term investment			337,189
Net cash (used in) provided by investing activities	(622,335)	(4,049,099)	529,413	(440,339)
Financing activities:
Net proceeds from issuance of ordinary shares upon exercise of option	1,394	9,073	12,206	22,619
Payment of share repurchase				(107,331)
Proceeds of advances from subsidiaries	13,905	90,468		222,403
Proceeds from short-term bank borrowings	20,824	135,488	281,719	489,376
Repayment of short-term bank borrowings	(45,137)	(293,677)	(332,555)	(183,516)
Proceeds from long-term bank borrowings	558,409	3,633,174
Repayment of long-term bank borrowings	(253,741)	(1,650,917)
Proceeds from issuance of convertible senior notes, net of issuance cost and capped call option	449,595	2,925,203
Debt financing costs paid	(1,501)	(9,763)
Proceeds from ADS lending	1	7
Dividends paid	(47,084)	(306,343)	(276,261)
Net cash provided by (used in) financing activities	696,665	4,532,713	(314,891)	443,551
Effect of exchange rate changes on cash and cash equivalents	(26,073)	(169,637)	35,629	5,800
Net (decrease) increase in cash and cash equivalents	28,060	182,568	253,011	26,276
Cash and cash equivalents at the beginning of the period	57,488	374,036	121,025	94,749
Cash and cash equivalents at the end of the period	$ 85,548	¥ 556,604	¥ 374,036	¥ 121,025

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Valuation And Qualifying Accounts
Addition Due to Acquisition	¥ 2,963	¥ 11,724
Allowance for doubtful accounts of accounts receivables and other receivables:
Valuation And Qualifying Accounts
Balance at Beginning of Year	11,924	6,059	¥ 6,477
Charge to Costs and Expenses	2,446	1,082	1,997
Addition Due to Acquisition		7,151
Write off	(3,593)	(2,368)	(2,415)
Balance at End of Year	10,777	11,924	6,059
Valuation allowance for deferred tax assets
Valuation And Qualifying Accounts
Balance at Beginning of Year	114,625	92,527	62,868
Charge to Costs and Expenses	59,929	55,757	47,122
Addition Due to Acquisition	2,963	11,724
Charge Taken Against Allowance	(46,903)	(17,064)	(15,508)
Write off	(7,476)	(28,319)	(1,955)
Balance at End of Year	¥ 123,138	¥ 114,625	¥ 92,527