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 China Lodging Group (NASDAQ:HTHT)

Friday, July 11, 2014
Comments & Business Outlook

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. 

"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."


Wednesday, May 14, 2014
Comments & Business Outlook

First Quarter of 2014 Financial Results

  • Total revenues for the first quarter of 2014 were RMB1,097.8 million (US$176.6 million), representing a 19.4% year-over-year increase and a 7.6% sequential decrease.
  • Earnings (loss) per ADS: Diluted was RMB(0.22) vs. last year quarter of RMB0.00

Business Outlook and Guidance for Second Quarter of 2014

"The lodging industry continues to consolidate. As a leading multi-brand hotel group, we are encouraged by the robust growth in our hotel pipeline. In 2009, we had a pipeline of 144 hotels. Today, it's 412 hotels. Over the years, our fast and sustainable growth is mainly driven by our focus on guest experience and continuous innovation. We deliver products that generate value-for-money stay experience. We continue to be recognized as one of the China's most innovative hotel groups," commented Mr. Ji. "Despite the recent macro economy softness, we are optimistic about long-term growth trend of this industry."

The Company expects to achieve net revenues in the range of RMB1.21 to 1.24 billion in the second quarter of 2014, representing a 17% to 20% growth year-over-year.

The Company reaffirms the full year hotel opening target of 420 to 450 hotels, with 50 to 60 leased hotels and 370 to 390 manachised hotels. Among which, 80% are for economy hotels and 20% for midscale hotels.


Wednesday, March 12, 2014
Comments & Business Outlook

Fourth Quarter 2013 Financial Results

  • Total revenues for the fourth quarter of 2013 were RMB1,188.4 million (US$196.3 million), representing a 26.9% year-over-year increase and a 2.3% sequential decrease.
  • Basic and diluted earnings per share/ADS. For the fourth quarter of 2013, basic earnings per share were RMB0.24 (US$0.04) and diluted earnings per share were RMB0.23 (US$0.04); basic earnings per ADS were RMB0.95 (US$0.16) and diluted earnings per ADS were RMB0.93 (US$0.15). For the fourth quarter of 2013, excluding share-based compensation expenses, adjusted basic earnings per share (non-GAAP) and adjusted diluted earnings per share (non-GAAP) were RMB0.26 (US$0.04); adjusted basic earnings per ADS (non-GAAP) were RMB1.05 (US$0.17) and adjusted diluted earnings per ADS (non-GAAP) were RMB1.03 (US$0.17).

"We are pleased that we concluded 2013 with a strong set of results," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group. "In spite of the relatively weak economy in 2013, we raised our full year same-hotel RevPAR by 1%. Our midscale hotels recorded a 3.5% same-hotel RevPAR improvement, thanks to the upgrade consumption trend and successful brand positioning. Room booking through mobile channel saw a solid and significant growth in 2013. The fast and vast adoption of mobile application among our customers enabled us to further strengthen our connection with customers and our direct sales channel."

Business Outlook and Guidance for 2014

"We remain positive on the growing trend of travel demand in China, especially with a significant growth from leisure travel demand in recent years. Our brand portfolio is well-positioned to meet the diversified needs of customers who seek good value for their money. We will continue to invest in our new brands. In 2014, we plan to add 420 to 450 leased and manachised hotels, with 50 to 60 leased hotels and 370 to 390 manachised hotels. Among these new hotels, 80% will be economy hotels, and 20% will be midscale hotels," commented Mr. Ji.

The Company expects to achieve net revenues in the range of RMB1.03 to 1.05 billion in the first quarter of 2014, representing a 19% to 21% growth year-over-year. For the full year 2014, the Company expects net revenues to grow 20% to 23% from 2013.


Wednesday, November 13, 2013
Comments & Business Outlook

Third Quarter 2013 Financial Results

  • Total revenues for the third quarter of 2013 were RMB1,216.1 million (US$198.7 million), representing a 28.3% year-over-year increase and a 10.8% sequential increase.
  • Basic and diluted earnings per share/ADS. For the third quarter of 2013, basic earnings per share was RMB0.51 (US$0.08) and diluted earnings per share was RMB0.50 (US$0.08); basic earnings per ADS was RMB2.04 (US$0.33) and diluted earnings per ADS was RMB2.00 (US$0.33). Excluding share-based compensation expenses, adjusted basic earnings per share (non-GAAP) was RMB0.55 (US$0.09) and adjusted diluted earnings per share (non-GAAP) for the third quarter of 2013 was RMB0.54 (US$0.09), and adjusted basic earnings per ADS (non-GAAP) was RMB2.18 (US$0.36) and adjusted diluted earnings per ADS (non-GAAP) was RMB2.14 (US$0.35).

"We continued our momentum from the first half of the year and are excited to deliver another strong quarter with solid same-hotel RevPAR growth and continuing year-over-year margin expansion. While the relatively soft macro environment, we are able to raise same-hotel ADR by 3% year-over-year in a third consecutive quarter," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group.

Guidance for Fourth Quarter of 2013

The Company expects to achieve net revenues in the range of RMB1,095 to 1,113 million in the fourth quarter of 2013, representing a 24% to 26% growth year-over-year.


Friday, October 11, 2013
Acquisition Activity

SHANGHAI, China, Oct. 10, 2013 (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 that the Company, through one of its subsidiaries, entered into a purchase agreement ("Agreement") to acquire ordinary shares of China Quanjude (Group) Co., Ltd. ("Quanjude", SHE:002186) through a private placement of RMB100 million (approximately US$16.3 million), effective upon meeting certain closing conditions. The purchase price is set at RMB14.03 per ordinary share, calculated as not less than 90% of the average of daily trading price for Quanjude's ordinary shares on Shenzhen Stock Exchange within 20 trading days preceding the Agreement date. The transaction is expected to close within the next six months. The placement will be of a total size of RMB350 million, with the remaining purchased by IDG Capital Management (HK) Limited. Post the transaction, China Lodging Group and IDG Capital will hold 2.3% and 5.8% of Quanjude, respectively.

Quanjude, widely known for its signature dish, Quanjude Beijing Roasted Duck, is a top restaurant brand in China. With 102 restaurants across China and Asia Pacific Region, Quanjude enjoys high consumer recognition. Aside from restaurants, Quanjude also produces packaged ducks and related foods for supermarket sales. In 2012, Quanjude had annual sales of RMB1.9 billion. As of September 17, 2013, Quanjude had a market cap of RMB4.8 billion.

Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group, commented, "We are delighted about this investment. Quanjude has an extraordinary brand awareness and recognition, which positions the business well for growth opportunities. This investment will also help us accumulate experience in the restaurant operation, which is a natural extension of our core hotel business." 

Post the investment, China Lodging Group will have a board seat in the board and a seat in the operation steering committee of Quanjude. We will share our expertise in chain operation with Quanjude, which is expected to help Quanjude improve their network development practice, operational efficiency and profitability.

China Lodging Group does not expect this transaction to have any significant impact on its revenue, profit and cash flow in 2013. The Company maintains its previously announced revenue guidance for 2013.


Friday, August 16, 2013
Comments & Business Outlook

Second Quarter 2013 Financial Results

  • Net revenues totaled RMB1,034.8 million (US$168.6 million)1 for the second quarter of 2013, an increase of 29.6% year-over-year, exceeding the high end of previously announced guidance.
  • Net income attributable to China Lodging Group was RMB96.3 million (US$15.7 million) for the second quarter of 2013, an increase of 37.0% year-over-year. Excluding share-based compensation expenses, adjusted net income attributable to the Company (non-GAAP) was RMB104.0 million (US$16.9 million) for the second quarter of 2013, an increase of 38.7% year-over-year.
  • Diluted net earnings per ADS3 were RMB1.55 (US$0.25) for the second quarter of 2013. Excluding share-based compensation expenses, adjusted diluted net earnings per ADS (non-GAAP) was RMB1.67 (US$0.27) for the second quarter of 2013, an increase of 37.1% year-over-year.

Guidance for Third Quarter of 2013

The Company expects to achieve net revenues in the range of RMB1,110 to 1,125 million in the third quarter of 2013, representing a 24% to 26% growth year-over-year.


Thursday, May 9, 2013
Comments & Business Outlook

First Quarter of 2013 Financial Results

  • Total revenues for the first quarter of 2013 were RMB919.3 million (US$148.0 million), representing a 33.5% year-over-year increase and a 1.9% sequential decrease.
  • Net income attributable to China Lodging Group, Limited for the first quarter of 2013 was RMB0.1 million (US$0.01 million), compared to net loss attributable to China Lodging Group, Limited  of RMB9.4 million (US$1.5 million) for the first quarter of 2012 and net income attributable to China Lodging Group, Limited of RMB18.2 million (US$2.9 million) for the previous quarter.
  • Basic and diluted net earnings per share/ADS. For the first quarter of 2013, basic net earnings per share and diluted net earnings per share were RMB0.00 (US$0.00); basic net earnings per ADS and diluted net earnings per ADS were RMB0.00 (US$0.00). Excluding share-based compensation expenses, adjusted basic net earnings per share (non-GAAP) and adjusted diluted net earnings per share (non-GAAP) for the first quarter of 2013 were RMB0.03 (US$0.01), and adjusted basic net earnings per ADS (non-GAAP) were RMB0.13 (US$0.02) and adjusted diluted net earnings per ADS (non-GAAP) were RMB0.12 (US$0.02).

"We are pleased with our robust growth of hotel chain in the beginning of 2013, exceeding 120,000 hotel rooms in operation. Despite the seasonally slow travel market in the first quarter, our same-hotel RevPAR for all hotels in operation for at least 18 months improved by 1%, thanks to our strong brands and dynamic yield management approaches," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group. "We opened 5 new JI Hotels, our midscale hotel brand, during the quarter. The same-hotel RevPAR for our JI Hotels in operation for at least 18 months improved by 4%, which demonstrates a promising growth momentum in a new segment."

Business Outlook and Guidance for Second Quarter of 2013

"Despite some uncertainties around China's economy growth and avian flu, we are confident that travel demand in China will continue to grow in the long run, as the fundamental growth drivers remain intact, such as increasing household disposable income, shifting life-style, improved transportation infrastructure, and growing economy. At the same time, the fragmented market landscape continues to represent a huge opportunity for consolidation. We will continue to expand our hotel network in various segments. For the full year of 2013, we expect to add around 100 leased hotels and 300 manachised hotels," commented Mr. Ji. 

The Company expects to achieve net revenues in the range of RMB1,014 to 1,029 million in the second quarter of 2013, representing a 27% to 29% growth year-over-year.


Wednesday, March 6, 2013
Comments & Business Outlook

Fourth Quarter 2012 Results

  • Revenues for the fourth quarter of 2012 were RMB936.7 million (US$150.3 million), representing a 35.8% year-over-year increase and a 1.2% sequential decrease.
  • Earnings per ADS for the fourth quarter 2012 were $0.05 vs $0.08 in prior year.

"We are delighted that we concluded 2012 with a strong result, exceeding 1,000 hotels and covering 171 cities," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group. He continued: "Our blended hotel occupancy and RevPAR both improved even though we expanded scale and penetrated our business into lower-tier cities. Our same-hotel RevPAR for the full year improved by 6%, thanks to our strong brands, highly-motivated work force and well-established management system. In 2012, we made remarkable progress in executing our multi-brand strategy and proudly changed our Chinese name from Hanting to Hua Zhu. From Hi Inn to Joya Hotel, our product offerings now cover price range from RMB 100 to RMB 1000. We expect each of our brands to serve as a successful consolidator in its respective segment. We expect those successes, in whole, will make Hua Zhu a major force in the large and fast-growing China lodging market." 

Business Outlook and Guidance for 2013

"We remain positive on the growing trend of travelling demand in China. Our brand portfolio is well-positioned to meet the diversified needs of customers who seek good value for their money. In 2013, we plan to add one Joya Hotel; 55 to 65 mid-scale hotels under JI Hotel and Starway Hotel brands; and 275 to 315 economy hotels under the Hanting Hotel and Hi Inn brands," commented Mr. Ji. The company expects all new hotels added to be under the leased or manachised models.

The Company expects to achieve net revenues in the range of RMB845 to 860 million in the first quarter of 2013, representing a 30% to 32% growth year-over-year. For the full year 2013, the Company expects net revenues to grow 26% to 29% from 2012.


Friday, January 11, 2013
Comments & Business Outlook

SHANGHAI, China, Jan. 10, 2013 (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 preliminary hotel operating results for the fourth quarter of 2012.

In the fourth quarter of 2012, the Company added 51 leased ("leased-and-operated") hotels and 69 net manachised ("franchised-and-managed") hotels. As of December 31, 2012, the Company had 466 leased hotels, 515 manachised hotels, and 54 franchised Starway hotels in operation. In the fourth quarter of 2012, excluding franchised Starway hotels, the blended RevPAR came in at RMB162, compared with RMB167 in the same quarter of 2011. For the hotels in operation for at least 18 months, excluding franchised Starway hotels, the RevPAR was RMB179, representing a 2% same-hotel RevPAR increase year-over-year, with a 1% increase in ADR and a 1% increase in occupancy.

Mr Qi Ji, founder, executive Chairman and Chief Executive Officer of the Company, commented, "We added 120 net new hotels in the fourth quarter and 396 net new hotels in 2012, exceeding our full year expansion plan. In addition to our strong operating results, we continued to enrich our brand portfolio to target a wider spectrum of customers with fast-growing and diversified travel demand."


Friday, October 12, 2012
Comments & Business Outlook

SHANGHAI, China, Oct. 11, 2012 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (Nasdaq:HTHT) ("China Lodging Group" or the "Company"), a leading and fast-growing limited service hotel chain operator in China, today announced preliminary hotel operating results for the third quarter of 2012.

In the third quarter of 2012, the Company added 27 leased ("leased-and-operated") hotels and 81 manachised ("franchised-and-managed") hotels. As of September 30, 2012, the Company had 415 leased hotels, 446 manachised hotels, and 77 franchised Starway hotels in operation. In the third quarter of 2012, excluding franchised Starway hotels, the blended RevPAR came in at RMB178, representing a year-over-year increase of 1%. For the hotels in operation for at least 18 months, excluding franchised Starway hotels, the RevPAR was RMB195, representing a 5% same-hotel RevPAR increase year-over-year, with a 3% increase in ADR and a 2% increase in occupancy.

Mr Qi Ji, founder, executive Chairman and Chief Executive Officer of the Company, commented, "We are glad to have delivered another solid quarter, with strong same-hotel RevPAR increase and hotel network expansion well on track. We will continue to expand our network and brand portfolio to meet the fast-growing and diversified travel demand in China."


Thursday, July 12, 2012
Comments & Business Outlook

SHANGHAI, July 12, 2012 /PRNewswire-Asia-FirstCall/ -- China Lodging Group, Limited (NASDAQ: HTHT) ("China Lodging Group" or the "Company"), a leading and high-growth limited service hotel chain operator in China, today announced preliminary hotel operating results for the second quarter of 2012.

In the second quarter of 2012, the Company opened 35 net leased ("leased-and-operated") hotels and 43 net manachised ("franchised-and-managed") hotels. The Company also completed an investment in Starway Hotels (Hong Kong) Limited ("Starway") to own a majority stake. As of June 30, 2012, the Company had 388 leased hotels, 365 manachised hotels, and 110 franchised Starway hotels in operation. In the second quarter of 2012, excluding franchised Starway hotels, the blended RevPAR came in at RMB176, representing a year-over-year increase of 4%. For the hotels in operation for at least 18 months, excluding franchised Starway hotels, the RevPAR was RMB195, representing a 7% same-hotel RevPAR increase year-over-year, with a 3% increase in ADR and a 4% increase in occupancy.

Mr Qi Ji, founder, executive Chairman and Chief Executive Officer of the Company, commented, "We have once again delivered a solid quarter. The performance for our overall network improved year-over-year due to strong demand in China's travel market and our solid execution. The addition of Starway has strengthened our leadership position in the mid-scale hotel market and accelerates our expansion in this segment."


Friday, June 1, 2012
Comments & Business Outlook

SHANGHAI, June 1, 2012 /PRNewswire-Asia-FirstCall/ -- China Lodging Group, Limited (NASDAQ: HTHT) ("China Lodging Group" or the "Company"), a leading and fast-growing limited service hotel chain operator in China, today announced that the Company recently completed an investment in Starway Hotels (Hong Kong) Limited (or "Starway") to own a majority stake.

Started by Ctrip.com International Ltd., Starway operates the largest mid-scale hotel chain in China, with more than 100 franchised hotels, the majority of which are of quality comparable to 3- to 4-star hotels. Since its inception in 2008, Starway has gained wide awareness and recognition among customers and hotel owners.

Mr Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group, commented, "before this investment, our company operated three brands in the limited service hotel segment, namely, Seasons Hotel, Hanting Express Hotel, and Hi Inn. This new addition enriched our brand portfolio and enabled us to address the mid-scale hotel market with two distinct brands, Seasons with a standardized product and Starway with variety in design and consistency in quality. This new addition will strengthen our leadership position in the mid-scale market and accelerate our expansion in this segment."

In addition to the franchise model Starway has already adopted, China Lodging Group plans to introduce manachise ("franchised-and-managed") and leased ("leased-and-operated") models under the Starway brand. The new models will capture the synergy between the Company's established distribution and operational capability and Starway's wide brand awareness. We also believe this expansion of Starway's business model will enable Starway to add significantly more value to its franchisees and further strengthen Starway's brand and enhance its profitability.

We do not expect this transaction to have any significant impact on the Company's revenue, profit and cash flow in 2012. We maintain our previously announced revenue guidance for 2012


Thursday, May 10, 2012
Comments & Business Outlook

First Quarter 2012 Operational Highlights

  • During the first quarter of 2012, the Company opened 36 net new hotels, including nine net new leased hotels (or "leased-and-operated hotels") and 27 net new managed hotels (or "franchised-and-managed hotels"). As of March 31, 2012, the Company had 675 hotels in operation, consisting of 353 leased hotels and 322 managed hotels. Hotels in operation covered 111 cities in China as of March 31, 2012. The Company had 24 Seasons Hotels and 29 Hi Inns in operation as of March 31, 2012.
  • As of March 31, 2012, the Company had a total pipeline of 336 hotels under development, including 107 leased hotels and 229 managed hotels.
  • The occupancy rate for all hotels in operation was 91% in the first quarter of 2012, compared with 82% in the first quarter of 2011, and 93% in the previous quarter. Occupancy improved 19 percentage points for the Company's hotels in Shanghai and seven percentage points for the Company's hotels outside of Shanghai year-over-year, mainly attributable to robust travel demand, the Company's successful seasonal promotions, a more mature hotel mix, and the rebound of the Shanghai market from post-Expo weakness experienced in the first quarter of 2011. The sequential decrease resulted mainly from seasonality.
  • The ADR, or average daily rate, for all hotels, was RMB172 in the first quarter of 2012, compared withRMB175 in the first quarter of 2011 and RMB179 in the previous quarter. The year-over-year decrease was mainly attributable to the city mix shift of the Company's hotels towards lower tier cities and the Company's seasonal promotions, partially offset by the same-hotel ADR appreciation. The sequential decrease resulted mainly from the Company's seasonal price adjustment and promotions.
  • RevPAR, defined as revenue per available room, was RMB156 in the first quarter of 2012, compared withRMB143 in the first quarter of 2011 and RMB167 in the previous quarter. The year-over-year improvement in RevPAR was a result of a higher occupancy slightly offset by a lower ADR. The sequential decrease was mainly due to seasonality.
  • For all the hotels which had been in operation for at least 18 months, the same-hotel RevPAR was RMB172for the first quarter of 2012, a 10% increase from RMB157 for the first quarter of 2011. Outside of Shanghai, the same-hotel RevPAR increased by 8%, with a 3% increase in ADR and a 5% increase in occupancy.
  • As of March 31, 2012, HanTing Club had more than 5.0 million individual members, a 65% increase from a year ago. These individual members contributed 66% of room nights sold during the first quarter of 2012, remaining stable as in the first quarter of 2011. The Company's corporate members contributed an additional 8% of room nights sold. In addition to the HanTing Club program, the Company introduced the e-member program in 2010 to enhance brand awareness and to expand coverage of its customer loyalty program. E-members can register on the Company's website free of charge and can enjoy discounts on room rates for their on-line booking. As of March 31, 2012, the Company had approximately 0.8 million e-members, who contributed 2% of room nights sold during the first quarter. In the first quarter of 2012, 96% of room nights sold were sold through the Company's own channels.

"We are pleased with our robust results in the first quarter of 2012, with 9% year-over-year increase in RevPAR across the whole chain and solid growth in hotel count. Our leading and high-quality brand has been well recognized in the market, which continuously attracts a growing number of customers and franchisees," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group. "We remain confident in our rapid and high-quality expansion with focus on customer experience, which is sustainable and profitable in the long run."

Business Outlook and Guidance for Second Quarter of 2012

"The continuous urbanization in China not only stimulates growing travel demand but also provides more opportunities of various properties for multiple-brand hotel chain operators like us. Our attractive brand positioning and solid performance lead to fast and quality expansion and a strong pipeline." commented Mr. Ji. "We started 2012 with record number of managed hotels under development. Thus, we increase our full year new openings to 260 to 270 hotels, with 120 leased hotels and 140 to 150 managed hotels."

The Company expects to achieve net revenues in the range of RMB740 to 755 million in the second quarter of 2012, representing a 35% to 38% growth year-over-year.


Wednesday, March 7, 2012
Comments & Business Outlook

Fourth Quarter 2011 Operational Highlights

  • During the fourth quarter of 2011, the Company opened 59 new hotels, including 30 leased-and-operated hotels and 29 franchised-and-managed hotels.
  • The ADR, or average daily rate, for all hotels, was RMB179 in the fourth quarter of 2011, compared withRMB194 in the fourth quarter of 2010 and RMB183 in the previous quarter. The year-over-year decrease was mainly attributable to the absence of one-time favorable impact from the Shanghai Expo. In Shanghai, the ADR was RMB181 in the fourth quarter of 2011, compared with RMB242 in the fourth quarter of 2010. The sequential decrease resulted mainly from the Company's seasonal price adjustment.
  • The occupancy rate for all hotels in operation was 93% in the fourth quarter of 2011, compared with 87% in the fourth quarter of 2010, and 97% in the previous quarter. The year-over-year improvement was mainly attributable to a 22% occupancy increase in Shanghai, which experienced a low occupancy in November and December of 2010 after the Shanghai Expo. The sequential decrease resulted mainly from seasonality.
  • RevPAR, defined as revenue per available room, was RMB167 in the fourth quarter of 2011, compared withRMB168 in the fourth quarter of 2010 and RMB177 in the previous quarter. The stable year-over-year RevPAR performance was a mixed result of a higher occupancy offset by a lower ADR mainly due to price increase during, and occupancy drop after, the Shanghai Expo. Outside of Shanghai, RevPAR increased 1% year-over-year.
  • For all the hotels which had been in operation for at least 18 months, the same-hotel RevPAR was RMB184for the fourth quarter of 2011, a 5% increase from RMB175 for the fourth quarter of 2010. Outside ofShanghai, the same-hotel RevPAR increased by 7%, with a 3% increase in ADR and a 4% increase in occupancy.

"We are delighted that we made solid progress in 2011, growing our hotel count by 46% and city coverage by 54%. Our proven brand strength and well-established hotel management platform continued to attract a growing number of franchisees. We remain committed to optimizing our products and hotel service procedures to maintain outstanding operational and financial performance," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group. "Our rapid and high-quality expansion leads to a fast-growing customer base and a robust pipeline of hotels under development, which will support our future growth."

Business Outlook and Guidance for 2012

"We remain optimistic on the growing trend of travelling demand in China. Leading hotel chains are expanding market share through consolidating existing stand-alone hotels and converting non-hotel properties into hotels. We continued to see tremendous growth opportunities in future years. Hanting's wide brand recognition and strong performance record made Hanting an attractive choice for franchisees, who in turn helped us accelerate our network expansion." commented Mr. Ji.

"We envision, in the next five years, Hanting to grow into a large-scale, multi-brand hotel group and to become an undisputed market leader across the mid-scale, economy and budget hotel segments." added Mr. Ji.

The Company expects to achieve net revenues in the range of RMB605 to 620 million in the first quarter of 2012, representing a 43% to 46% growth year-over-year. For the full year 2012, the Company expects net revenues to grow 34.5% to 37.5%.


Friday, November 25, 2011
Comments & Business Outlook

SHANGHAI, November 25, 2011 /PRNewswire-Asia-FirstCall/ -- China Lodging Group, Limited (NASDAQ: HTHT) ("China Lodging Group" or the "Company"), a leading and high-growth economy hotel chain operator in China, today provided an update on the Company's hotel operating performance in October 2011.

In October 2011, the RevPAR (revenue per available room) came in at RMB176, representing an increase of 6% from September, due to normal seasonality. Outside of Shanghai, for the hotels in operation for at least 18 months, the same-hotel RevPAR increased 6% year-over-year, with 4% increase in ADR and 2% increase in occupancy.

Matthew Zhang, the CEO of the Company, commented, "we are pleased to see the robust result of October, attributable to the strong demand in China's travel market and our solid execution. We maintain our quarterly revenue guidance of RMB635 to RMB655 million."


Friday, November 11, 2011
Comments & Business Outlook

Third quarter ended September 30, 2011

  • Net Revenues increased 23.8% year-over-year for the third quarter to RMB626.7 million (US$98.3 million)(1), exceeding the high end of the guidance previously announced 
  • Adjusted EBITDA from operating hotels (non-GAAP) was RMB184.2 million (US$28.9 million), representing 29.4% of net revenue
  • Net income attributable to China Lodging Group, Limited was RMB58.2 million (US$9.1 million); adjusted net income attributable to China Lodging Group, Limited (non-GAAP) was RMB63.2 million (US$9.9 million) 
  • Diluted earnings per ADS(2) for the quarter was RMB0.94 (US$0.15); adjusted diluted earnings per ADS (non-GAAP) was RMB1.03 (US$0.16) vs. US.$0.23

    "We are delighted to see that the travel market continued to grow quickly in China. Outside of Shanghai, our same-hotel RevPAR appreciation reached 6% for the third quarter of 2011. In Shanghai, our hotels in operation for at least 18 months achieved occupancy of 101%, an increase of 5% from the same period of 2010," said Mr. Matthew Zhang, Chief Executive Officer of China Lodging Group. "We remain confident that China's domestic travel will grow robustly, especially in the inland cities. Our penetration into these fast-growing cities well positions us to capture those profitable opportunities."

    Guidance for Fourth Quarter of 2011

    "We are pleased to achieve 142 net new hotel openings in the first nine months of 2011, and remain confident in achieving our full year target of 200 new openings." commented CEO Mr. Zhang.

    The Company expects to achieve net revenues in the range of RMB635 to RMB655 million in the fourth quarter of 2011, representing a 40% to 45% year-over-year growth

    The above forecast reflects the Company's current and preliminary view, which is subject to change.


  • Tuesday, August 16, 2011
    Comments & Business Outlook

    Second Quarter of 2011 Financial Results

    Total revenues for the quarter were RMB580.8 million (US$89.9 million), representing a 25.2% year-over-year increase and a 29.0% increase sequentially. The year-over-year increase was primarily due to our increased number of hotels, partially offset by the absence of one-time benefit from the Shanghai Expo. The sequential increase was mainly due to seasonality

    Basic and diluted net income per share/ADS. For the second quarter of 2011, basic net income per share was RMB0.17 (US$0.03) and diluted net income per share was RMB0.16 (US$0.03); basic net income per ADS was RMB0.67 (US$0.10) and diluted net income per ADS was RMB0.65 (US$0.10). Excluding share-based compensation expenses, adjusted basic net income per share (non-GAAP) and adjusted diluted net income per share (non-GAAP) for the second quarter of 2011 were both RMB0.18 (US$0.03), adjusted basic net income per ADS (non-GAAP) was RMB0.74 (US$0.11) and adjusted diluted net income per ADS (non-GAAP) was RMB0.72 (US$0.11).

    "We are pleased to see that the travel market recovered from the low point of the first quarter of 2011. Our continuous endeavor to enhance customer experience and to expand our brand awareness paid off in the second quarter, enabling us to close the quarter at the high end of our quarterly revenue guidance," said Mr. Matthew Zhang, Chief Executive Officer of China Lodging Group. "We remain confident in the long-term outlook of China's lodging market, our own execution capability, and, consequently, the prospect of shareholder value appreciation in the long-run."

    Guidance for Full Year and Third Quarter of 2011 and Outlook for 2012

    "We are pleased to achieve 78 net new hotel openings in the first half of 2011, and remain confident in achieving our full year target of 200 new openings," commented CEO Mr. Zhang. "At the same time, we also recognize that the Shanghai market weakness after the Expo and China's macroeconomic situation slowed down our same-hotel RevPAR appreciation in 2011. Our revenue was also reduced by the delay in new hotel opening mainly caused by lengthened business licenses application process. As a result, we adjusted our expectation of net revenue growth to 28% to 32% for the full year of 2011."

    The Company expects to achieve net revenues in the range of RMB605 to RMB625 million in the third quarter of 2011.

    "We continue to see significant growth and consolidation opportunities in the China lodging market. With the progress of nationwide transportation infrastructure, our business will further expand as a result of the population's increased mobility and the surge in domestic traffic. During the year of 2012, we plan to open 240 to 250 new hotels, with approximately half being leased-and-operated hotels. The new openings in 2012 will include 40 to 50 Seasons Hotels and Hi Inns combined. Our multi-brand strategy will enable us to enjoy a large base of customers and will accelerate our growth in the future years." added Mr. Zhang, "In the long run, we expect our same-hotel RevPAR to increase, through strengthening our brand and increasing customer satisfaction. We believe that our popularity among franchisees will continue to enhance as our reputation as a capable and credible hotel operator spreads. We expect that those trends will have a positive impact on our long-term margin."


    Wednesday, May 11, 2011
    Comments & Business Outlook

    First Quarter Results:

    • Net Revenues increased 24.5% year-over-year for the first quarter to RMB424.4 million (US$64.8 million)(1), within the guidance previously announced
    • - EBITDA from operating hotels (non-GAAP) increased 6.2% year-over-year for the first quarter to RMB70.2 million (US$10.7 million)
    • - Net loss attributable to China Lodging Group, Limited was RMB14.0 million (US$2.1 million)
    • - Diluted loss per ADS(2) for the first quarter was RMB0.23 (US$0.04); excluding share-based compensation expenses, adjusted diluted loss per ADS (non-GAAP) for the quarter was RMB0.18 (US$0.03).
    • - 35 net new hotels were opened in the first quarter of 2011, increasing hotel count to 473

    "We continued our solid expansion in the first quarter of 2011 as we opened 35 net new hotels and entered into 6 new cities. Our yield management enabled us to achieve 4.7% ADR increase among mature hotels on a like-for-like basis," said Mr. Matthew Zhang, Chief Executive Officer of China Lodging Group. "We are pleased to see the improved contribution from our loyalty program as a result of our effort to acquire new customers and a higher level of customer satisfaction, which will support our further penetration into new markets."

    "We are on track to open around 200 new hotels this year and to grow our revenue at a fast pace. As we progress into the second quarter, certain factors that affected our first quarter performance, such as prolonged low season and post-Expo impact in Shanghai, are now behind us," commented CEO Mr. Zhang. "We are confident that the outlook of the domestic travel market will continue to grow fast. Our investment in leased-and-operated hotels will position us advantageously to capture the growth opportunity. Despite of the near-term margin pressure, we remain confident that our investment in 2011 will enable us to a strong revenue and profit growth in 2012 and forward."

    The Company expects to achieve net revenues in the range of RMB530 to RMB550 million in the second quarter of 2011.