China Lodging Group, Limited (HTHT) Announces Its Preliminary Results for Hotel Operations in the Second Quarter of 2014
SHANGHAI, China, July 10, 2014 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (Nasdaq:HTHT) ("China Lodging Group" or the "Company"), a leading and fast-growing multi-brand hotel group in China, today announced its preliminary results for the hotel operations in the second quarter ended June 30, 2014.
Hotel Development
| Number of hotels in operation | Number of rooms in operation | |||||
| Opened | Closed | Net added | As of | Net added | As of | |
| in Q2 2014 | in Q2 2014 | in Q2 2014 | June 30, 2014 | in Q2 2014 | June 30, 2014 | |
| Leased hotels | 15 | -- | 15 | 590 | 2,468 | 69,900 |
| Manachised hotels | 130 | (5) | 125 | 1,069 | 12,652 | 108,117 |
| Franchised hotels* | -- | (1) | (1) | 10 | (126) | 1,169 |
| Total | 145 | (6) | 139 | 1,669 | 14,994 | 179,186 |
| * refers to franchised Starway hotels | ||||||
| Number of hotels in pipeline as of June 30, 2014 | |
| Leased hotels | 45 |
| Manachised hotels | 460 |
| Total | 505 |
Operating Metrics
| For the quarter ended | |||
| June 30, | March 31, | June 30, | |
| 2013 | 2014 | 2014 | |
| Occupancy rate (as a percentage) | |||
| Leased hotels | 90% | 84% | 91% |
| Manachised hotels | 92% | 86% | 91% |
| Blended | 91% | 86% | 91% |
| Average daily room rate (in RMB) | |||
| Leased hotels | 190 | 179 | 191 |
| Manachised hotels | 176 | 165 | 173 |
| Blended | 182 | 171 | 180 |
| RevPAR (in RMB) | |||
| Leased hotels | 172 | 151 | 174 |
| Manachised hotels | 162 | 143 | 158 |
| Blended | 167 | 146 | 164 |
| Like-for-like performance for leased and manachised hotels opened for at least 18 months during the current quarter | ||
| As of and for the quarter ended | ||
| June 30, | ||
| 2013 | 2014 | |
| Total | 959 | 959 |
| Leased hotels | 460 | 460 |
| Manachised hotels | 499 | 499 |
| Occupancy rate (as a percentage) | 96% | 96% |
| Average daily room rate (in RMB) | 185 | 185 |
| RevPAR (in RMB) | 177 | 176 |
Business Update by segment
| Hotel breakdown by brand | ||
| Number of hotels in operation | ||
| Net added | As of | |
| in Q2 2014 | June 30, 2014 | |
| Economy hotels | 118 | 1,530 |
| Hanting Hotel | 96 | 1,415 |
| Leased hotels | 8 | 489 |
| Manachised hotels | 88 | 926 |
| Hi Inn | 22 | 115 |
| Leased hotels | 1 | 41 |
| Manachised hotels | 21 | 74 |
| Midscale and upscale hotels | 21 | 139 |
| JI Hotel | 16 | 96 |
| Leased hotels | 5 | 56 |
| Manachised hotels | 11 | 40 |
| Starway Hotel | 5 | 41 |
| Leased hotels | 1 | 2 |
| Manachised hotels | 5 | 29 |
| Franchised hotels | (1) | 10 |
| Joya Hotel | -- | 1 |
| Leased hotels | -- | 1 |
| Manxin Hotels & Resorts | -- | 1 |
| Leased hotels | -- | 1 |
| Total | 139 | 1,669 |
| Operational metrics for hotels in operation by segment | ||||
| Q2 2014 | ||||
| Number of hotels in operation | RevPAR | ADR | Occupancy | |
| Economy hotels | 1,530 | 159 | 173 | 92% |
| Leased hotels | 530 | 165 | 178 | 92% |
| Manachised hotels | 1,000 | 156 | 169 | 92% |
| Midscale and upscale hotels | 129 | 210 | 263 | 80% |
| Leased hotels | 60 | 238 | 288 | 83% |
| Manachised hotels | 69 | 176 | 231 | 76% |
| Total | 1,659 | 164 | 180 | 91% |
| Q2 2013 | ||||
| Number of hotels in operation | RevPAR | ADR | Occupancy | |
| Economy hotels | 1,127 | 163 | 177 | 92% |
| Leased hotels | 479 | 165 | 182 | 91% |
| Manachised hotels | 648 | 162 | 173 | 93% |
| Midscale and upscale hotels | 66 | 218 | 280 | 78% |
| Leased hotels | 35 | 251 | 301 | 83% |
| Manachised hotels | 31 | 171 | 244 | 70% |
| Total | 1,193 | 167 | 182 | 91% |
| * Excluding franchised Starway hotels | ||||
| Same-hotel operational data by segment | |||||||||||
| Number of hotels in operation | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||
| As of | For the quarter ended | For the quarter ended | For the quarter ended | ||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||
2013 | 2014 | 2013 | 2014 | yoy change | 2013 | 2014 | yoy change | 2013 | 2014 | yoy change | |
| Economy hotels | 922 | 922 | 173 | 171 | -1% | 180 | 179 | 0% | 96% | 96% | 0% |
| Leased hotels | 435 | 435 | 173 | 171 | -1% | 184 | 181 | -1% | 94% | 94% | 0% |
| Manachised hotels | 487 | 487 | 172 | 172 | -1% | 177 | 178 | 0% | 97% | 97% | -1% |
| Midscale hotels | 37 | 37 | 268 | 296 | 11% | 290 | 309 | 7% | 92% | 96% | 3% |
| Leased hotels | 25 | 25 | 282 | 317 | 13% | 301 | 325 | 8% | 94% | 98% | 4% |
| Manachised hotels | 12 | 12 | 225 | 232 | 3% | 253 | 257 | 1% | 89% | 90% | 2% |
| Total | 959 | 959 | 177 | 176 | 0% | 185 | 185 | 0% | 96% | 96% | 0% |
"Our same-hotel RevPAR remained flattish this quarter and we remain of the view that the growth will be marginal at best throughout 2014. For the first six months of 2014, we observed no signs for recovery in macro economy and business travel. This posted particular challenges to our economy hotels in lower-tier cities and upscale hotels. The same-hotel RevPAR for economy hotels decreased by 2% and 1% in Q1 and Q2, respectively. As a result, our pricing strategy will remain conservative for the rest of the year to better capture the rising demand for leisure travel in Q3," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group. "However, we are still confident about the development of midscale hotels and will continue to execute the rapid expansion of our midscale brands, JI Hotel and Starway Hotel."
Upcoming Investor Relations Activities
China Lodging Group will participate in the following conference in the third quarter of 2014.
| September 10-11, 2014 | Presenting China - The Annual CICC London Conference |
About China Lodging Group, Limited
China Lodging Group, Limited is a leading and fast-growing multi-brand hotel group in China. The Company provides business and leisure travelers with high-quality, and conveniently-located hotel products under six brands, namely, Joya Hotel, Manxin Hotels & Resorts, JI Hotel, Starway Hotel, Hanting Hotel, and Hi Inn. For more information, please visit the Company's website: http://ir.huazhu.com .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; the economic conditions of China; the regulatory environment in China; our ability to attract customers and leverage our brand; trends and competition in the lodging industry; the expected growth of the lodging market in China; and other factors and risks detailed in our filings with the Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as "may," "should," "will," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "forecast," "project," or "continue," the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results.
The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
CONTACT: Ida Yu
Sr. Manager of Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com