China Lodging Group, Limited (HTHT) Announces Its Preliminary Results for Hotel Operations in the Second Quarter of 2014

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| Source: China Lodging Group, Limited

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.

Ida Yu
Sr. Manager of Investor Relations
Tel: 86 (21) 6195 9561
Email: 
http://ir.huazhu.com