China Lodging Group, Limited Announces Its Preliminary Results for Hotel Operation in the Second Quarter of 2016

SHANGHAI, China, July 13, 2016 (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 operation in the second quarter ended June 30, 2016.

Hotel Development

	Number of hotels in operation											Number of rooms in operation
	Opened	Closed (1)			Net added	As of						Net added			As of
	in Q2 2016	in Q2 2016			in Q2 2016	June 30, 2016						in Q2 2016			June 30, 2016
Leased and owned hotels	2		(2	)	-	627							(140	)	77,123
Manachised and franchised hotels	172		(47	)	125	2,487							10,523		237,688
Total	174		(49	)	125	3,114							10,383		314,811
(1) Reasons for closures include contract expiration, operating loss and others.

	Number of hotels in pipeline as of June 30, 2016
Leased hotels	23
Manachised and franchised hotels	563
Total(2)	586
(2) Including 31 hotels under brands of ibis, ibis Styles, Mercure and Novotel.

Operating Metrics

	For the quarter ended
	June 30,			March 31,			June 30,
	2015			2016			2016
Occupancy rate (as a percentage)
Leased and owned hotels		87	%		82	%		87	%
Manachised hotels		85	%		81	%		85	%
Franchised hotels		74	%		62	%		71	%
Blended		86	%		80	%		85	%
Average daily room rate (3) (in RMB)
Leased and owned hotels		201			193			210
Manachised hotels		172			165			175
Franchised hotels		171			169			181
Blended		181			172			184
RevPAR (3) (in RMB)
Leased and owned hotels		176			159			182
Manachised hotels		146			133			150
Franchised hotels		126			105			128
Blended		156			139			157
(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
	June 30,						yoy
		2015			2016		change
Total		1,899			1,899
Leased hotels		590			590
Manachised and franchised hotels		1,309			1,309
Occupancy rate (as a percentage)		88	%		88	%		-0.4	%
Average daily room rate (in RMB)		183			181			-0.7	%
RevPAR (in RMB)		161			159			-1.2	%

Business Update by Segment

Hotel breakdown by segment
	Number of hotels in operation
	Net added			As of
	in Q2 2016			June 30, 2016
Economy hotels		84		2,732
HanTing Hotel		46		2,105
Leased hotels		(1	)	492
Manachised hotels		47		1,613
Hi Inn		26		358
Leased hotels		(1	)	37
Manachised hotels		21		285
Franchised hotels		6		36
Elan Hotel		11		180
Manachised hotels		7		149
Franchised hotels		4		31
ibis Hotel		1		83
Leased hotels		1		13
Manachised hotels		4		13
Franchised hotels		(4	)	57
ibis Styles Hotel		-		6
Manachised hotels		-		2
Franchised hotels		-		4
Midscale and upscale hotels		41		382
JI Hotel		27		229
Leased hotels		1		78
Manachised hotels		24		149
Franchised hotels		2		2
Starway Hotel		13		136
Leased hotels		-		3
Manachised hotels		13		84
Franchised hotels		-		49
Joya Hotel		1		5
Leased hotels		-		2
Manachised hotels		1		3
Manxin Hotels & Resorts		-		2
Leased hotels		-		1
Manachised hotels		-		1
Mercure Hotel		-		8
Leased hotels		-		1
Manachised hotels		-		6
Franchised hotels		-		1
Novotel Hotel		-		1
Leased hotels		-		-
Manachised hotels		-		1
Grand Mercure		-		1
Franchised hotels		-		1
Total		125		3,114

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,		yoychange			June 30,		yoychange			June 30,						yoychange
	2015	2016	2015	2016				2015	2016					2015			2016
Economy hotels	1,739	1,739	152	148		-3.0	%	172	168		-1.9	%		89	%		88	%		-1.0	%
Leased hotels	522	522	159	152		-4.1	%	179	177		-1.6	%		88	%		86	%		-2.3	%
Manachised and franchised hotels	1,217	1,217	149	146		-2.4	%	168	164		-2.0	%		89	%		89	%		-0.3	%
Midscale and upscale hotels	160	160	230	250		8.6	%	281	290		2.9	%		82	%		86	%		4.5	%
Leased hotels	68	68	263	292		11.2	%	310	322		3.8	%		85	%		91	%		6.1	%
Manachised and franchised hotels	92	92	195	204		4.6	%	248	251		0.9	%		79	%		81	%		2.8	%
Total	1,899	1,899	161	159		-1.2	%	183	181		-0.7	%		88	%		88	%		-0.4	%

About China Lodging Group, LimitedChina Lodging Group, Limited is a leading hotel operator and franchisor in China under 12 brand names. As of June 30, 2016, the Company had 3,114 hotels or 314,811 rooms in operation in 357 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 June 30, 2016, China Lodging Group operates 24 percent of its hotel rooms under lease model, 76 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
Ida Yu
Sr. Manager of Investor Relations
Tel: 86 (21) 6195 9561
Email: [email protected]
http://ir.huazhu.com

Source: China Lodging Group, Limited

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