China Lodging Group, Limited Announces Its Preliminary Results for Hotel Operation in the First Quarter of 2017
17 April 2017 - 6:00PM
China Lodging Group, Limited (NASDAQ:HTHT) (“China Lodging Group”,
“Huazhu”, or the “Company”), a leading and fast-growing multi-brand
hotel group in China, today announced its preliminary results for
the hotel operation in the first quarter ended March 31, 2017.
Operating Metrics
|
For the quarter ended |
|
March 31, |
December 31, |
March 31, |
|
2016 |
2016 |
2017 |
Occupancy rate (as a percentage) |
|
|
Leased and owned
hotels |
82 |
% |
86 |
% |
85 |
% |
Manachised
hotels |
81 |
% |
85 |
% |
85 |
% |
Franchised
hotels |
62 |
% |
68 |
% |
66 |
% |
Blended |
80 |
% |
85 |
% |
84 |
% |
Average daily room rate (3) (in RMB) |
|
|
Leased and owned
hotels |
193 |
|
211 |
|
204 |
|
Manachised
hotels |
165 |
|
178 |
|
174 |
|
Franchised
hotels |
169 |
|
180 |
|
180 |
|
Blended |
172 |
|
186 |
|
182 |
|
RevPAR (3) (in
RMB) |
|
|
|
Leased and owned
hotels |
159 |
|
181 |
|
174 |
|
Manachised
hotels |
133 |
|
152 |
|
147 |
|
Franchised
hotels |
105 |
|
123 |
|
118 |
|
Blended |
139 |
|
158 |
|
152 |
|
(3) Value-added tax ("VAT") has been
implemented for hospitality industry to replace business tax in
China, effective May 1, 2016. The Company's room rates quoted and
received from customers are tax-inclusive (business tax or VAT)
before and after the implementation of VAT. For comparison
purposes, the ADR and RevPAR disclosed in this release are based on
the tax-inclusive rates. |
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 |
|
|
|
|
|
March 31, |
yoy |
|
|
|
|
2016 |
|
2017 |
|
change |
|
|
|
Total |
2,380 |
|
2,380 |
|
|
|
|
|
Leased
hotels |
579 |
|
579 |
|
|
|
|
|
Manachised and
franchised hotels |
1,801 |
|
1,801 |
|
|
|
|
|
Occupancy rate (as a
percentage) |
83 |
% |
87 |
% |
3.3 |
% |
|
|
|
Average daily room rate
(in RMB) |
172 |
|
175 |
|
1.8 |
% |
|
|
|
RevPAR
(in RMB) |
143 |
|
151 |
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
Hotel Development
|
Number of hotels in operation |
|
Number of rooms in operation |
|
Opened |
Closed
(1) |
Net added |
As of |
|
Net added |
As of |
|
in Q1 2017 |
in Q1 2017 |
in Q1 2017 |
March 31, 2017 |
|
in Q1 2017 |
March 31, 2017 |
Leased and owned
hotels |
5 |
(9 |
) |
(4 |
) |
620 |
|
(148 |
) |
78,012 |
Manachised and
franchised hotels |
84 |
(13 |
) |
71 |
|
2,716 |
|
4,701 |
|
257,888 |
Total |
89 |
(22 |
) |
67 |
|
3,336 |
|
4,553 |
|
335,900 |
(1) Reasons for closures include contract expiration,
operating loss and others. |
|
Number of hotels in pipeline as of March
31, 2017 |
Leased hotels |
16 |
Manachised and
franchised hotels |
457 |
Total(2) |
473 |
(2) Including 65 hotels under brands of
ibis, ibis Styles, Mercure and Novotel. |
Business Update by Segment
Hotel breakdown
by segment |
|
|
|
|
|
Number of hotels in operation |
|
Net added |
As of |
|
in Q1 2017 |
March 31, 2017 |
Economy
hotels |
39 |
|
2,852 |
HanTing
Hotel |
22 |
|
2,203 |
Leased hotels |
(8 |
) |
478 |
Manachised hotels |
29 |
|
1,723 |
Franchised hotels |
1 |
|
2 |
Hi Inn |
12 |
|
387 |
Leased hotels |
|
36 |
Manachised hotels |
12 |
|
306 |
Franchised hotels |
|
45 |
Elan Hotel |
3 |
|
188 |
Manachised hotels |
2 |
|
151 |
Franchised hotels |
1 |
|
37 |
ibis Hotel |
2 |
|
74 |
Leased hotels |
|
14 |
Manachised hotels |
|
12 |
Franchised hotels |
2 |
|
48 |
Midscale and upscale hotels |
28 |
|
484 |
JI Hotel |
20 |
|
304 |
Leased hotels |
3 |
|
84 |
Manachised hotels |
16 |
|
217 |
Franchised hotels |
1 |
|
3 |
Starway
Hotel |
5 |
|
141 |
Leased hotels |
|
2 |
Manachised hotels |
5 |
|
101 |
Franchised hotels |
|
38 |
Joya Hotel |
|
6 |
Leased hotels |
|
3 |
Manachised hotels |
|
3 |
Manxin Hotels
& Resorts |
1 |
|
3 |
Leased hotels |
|
|
Manachised hotels |
|
2 |
Franchised hotels |
1 |
|
1 |
ibis Styles
Hotel |
- |
|
10 |
Manachised hotels |
-1 |
|
6 |
Franchised hotels |
1 |
|
4 |
Mercure
Hotel |
1 |
|
16 |
Leased hotels |
|
2 |
Manachised hotels |
1 |
|
13 |
Franchised hotels |
|
1 |
Novotel
Hotel |
|
2 |
Leased hotels |
|
|
Manachised hotels |
|
1 |
Franchised hotels |
|
1 |
Grand
Mercure |
1 |
|
2 |
Leased hotels |
1 |
|
1 |
Franchised hotels |
|
1 |
Total |
67 |
|
3,336 |
Same-hotel operational data by segment |
|
|
|
|
|
|
|
|
|
|
|
|
Number of hotels in operation |
Same-hotel RevPAR |
|
Same-hotel ADR |
|
Same-hotel Occupancy |
|
|
|
As of |
For the quarter ended |
|
For the quarter ended |
|
For the quarter ended |
|
|
|
March 31, |
March 31, |
yoychange |
March 31, |
yoychange |
March 31, |
yoychange |
|
|
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
|
Economy hotels |
2,144 |
2,144 |
133 |
139 |
5.0 |
% |
159 |
160 |
0.8 |
% |
84 |
% |
87 |
% |
3.5 |
% |
|
Leased
hotels |
503 |
503 |
139 |
147 |
5.7 |
% |
167 |
169 |
0.9 |
% |
83 |
% |
87 |
% |
3.9 |
% |
|
Manachised and franchised hotels |
1,641 |
1,641 |
130 |
137 |
4.7 |
% |
155 |
156 |
0.8 |
% |
84 |
% |
87 |
% |
3.3 |
% |
|
Midscale and upscale hotels |
236 |
236 |
214 |
233 |
9.2 |
% |
265 |
284 |
6.9 |
% |
81 |
% |
82 |
% |
1.7 |
% |
|
Leased
hotels |
76 |
76 |
257 |
279 |
8.9 |
% |
298 |
324 |
8.8 |
% |
86 |
% |
86 |
% |
0.1 |
% |
|
Manachised and franchised hotels |
160 |
160 |
182 |
200 |
9.5 |
% |
239 |
252 |
5.4 |
% |
76 |
% |
79 |
% |
3.0 |
% |
|
Total |
2,380 |
2,380 |
143 |
151 |
5.8 |
% |
172 |
175 |
1.8 |
% |
83 |
% |
87 |
% |
3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About China Lodging Group, Limited
China Lodging Group, Limited is a leading hotel
operator and franchisor in China under 12 brand names. As of March
31, 2017, the Company had 3,336 hotels or 335,900 rooms in
operation in 369 cities. With a primary focus on economy and
midscale hotel segments, China Lodging Group’s brands include Hi
Inn, HanTing Hotel, Elan Hotel, JI Hotel, Starway Hotel, Joya
Hotel, and Manxin Hotels & Resorts. The Company 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.
The Company’s business includes leased,
manachised and franchised models. Under the lease model, the
Company directly operates hotels typically located on leased
properties. Under the manachise model, the Company manages
manachised hotels through the on-site hotel managers it appoints
and collects fees from franchisees. Under the franchise model, the
Company provides training, reservation and support services to the
franchised hotels and collects fees from franchisees but does not
appoint on-site hotel managers. The Company applies a consistent
standard and platform across all of its hotels. As of March 31,
2017, China Lodging Group operates 23 percent of its hotel rooms
under lease model, 77 percent under manachise and franchise
models.
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 Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com
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