H World Group Limited (NASDAQ:HTHT)

SHANGHAI, China, Jan. 03, 2020 (GLOBE NEWSWIRE) -- Huazhu Group Limited (HTHT) (the "Company"), a leading and fast-growing hotel group, today announced that its board of directors has declared a cash dividend of US$0.34 per ordinary share, or US$0.34 per American Depositary Share ("ADS”). Holders of the Company's ordinary shares or ADS at the close of trading on January 10, 2020 (U.S. Eastern Time) (the "Record Date") will be entitled to receive the cash dividend. Citibank, N.A., depositary bank for the Company's ADS program (the "ADS Depositary"), expects to pay out dividends to ADS holders before February 29, 2020. Dividends to be paid to the Company’s ADS holders through the ADS Depositary will be subject to the terms of the deposit agreement by and among the Company and the ADS Depositary, and the holders and beneficial owners of ADS issued thereunder, including the fees and expenses payable thereunder.

The total amount of cash to be distributed for the special dividend is expected to be approximately US$100 million.

As of September 30, 2019, the Company had approximately US$622 million in cash, cash equivalents and restricted cash.

SHANGHAI, China, Jan. 02, 2020 (GLOBE NEWSWIRE) -- Huazhu Group Limited (HTHT) (the “Company”), a leading and fast-growing hotel group, today announced the closing of the acquisition of all shares in Steigenberger Hotels Aktiengesellschaft, Germany (“the Deutsche Hospitality Acquisition”), which was previously announced in the press release dated November 4, 2019.  

In connection with the Deutsche Hospitality Acquisition, China Lodging Holdings (HK) Limited, a subsidiary of the Company, has signed a EUR440,000,000 term facility and USD500,000,000 revolving credit facility agreement (the “Facilities Agreement”) for a term of 3 years with a bank consortium led by JPMorgan Chase Bank, N.A., acting through its Hong Kong Branch, Deutsche Bank AG, Singapore Branch and Morgan Stanley Senior Funding, Inc. to fund the payment of all amounts payable under or in connection with the acquisition. The balance under the Facilities Agreement will be used, among other things, for the general corporate and working capital purposes of the Company and its subsidiaries.

Third Quarter of 2019 Financial Results

• Net revenues for the third quarter of 2019 were RMB3.1 billion (US$427 million), representing a 10.4% year-over-year increase, primarily attributable to our hotel network expansion and blended RevPAR growth.
• Basic and diluted earnings per share/ADS for the third quarter of 2019, basic earnings per share were RMB1.51 (US$0.21) and diluted earnings per share were RMB1.45 (US$0.20). For the third quarter of 2019, excluding share-based compensation expenses and unrealized gains (losses) from fair value changes of equity securities, adjusted basic earnings per share (non-GAAP) were RMB1.52 (US$0.21) and adjusted diluted earnings per share (non-GAAP) were RMB1.46 (US$0.20).

Ji Qi, the founder, Executive Chairman and CEO commented: “We are delighted to achieve another quarter with strong growth. Huazhu has reached its first 5,000-hotel milestone and also embarked on its international expansion plan through the opening of the first Ji Hotel in Singapore as well as the recently-announced acquisition of Deutsche Hospitality. By leveraging our brand strength and operational excellence, we aspire to accelerate our growth goal, and establish a global hotel network during the next five years.”

Guidance
For the full year of 2019, Huazhu maintains the net revenues growth range to be 10%-12%.

In 2020, Huazhu expects to accelerate the gross number of hotels opened to about 1,700, and about 75%-80% of which will be midscale and upscale brand properties.

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

SHANGHAI, China, Nov. 04, 2019 (GLOBE NEWSWIRE) -- Huazhu Group Limited (“Huazhu” or the "Company") today announced that the Company, through its wholly owned subsidiary China Lodging Holding Singapore, entered into a share purchase agreement ("Agreement") to acquire all shares in Steigenberger Hotels Aktiengesellschaft, Germany (“Deutsche Hospitality”), for a base cash consideration of about €700 million, which is subject to net working capital and other post-closing adjustments as provided in the Agreement. The acquisition is subject to regulatory approvals and certain other closing conditions, and is expected to close on or around early next year.

First Quarter of 2019 Financial Results

• Net revenues for the first quarter of 2019 were RMB2.4 billion (US$356 million), representing a 14.2% year-over-year increase, primarily attributable to our hotel network expansion and RevPAR growth.
• EBITDA (non-GAAP) for the first quarter of 2019 was RMB412 million (US$62 million), compared with RMB406 million in the first quarter of 2018. Excluding share-based compensation expenses and unrealized gains (losses) from fair value changes of equity securities, adjusted EBITDA (non-GAAP) for the first quarter of 2019 was RMB528 million (US$79 million, 22.1% on net revenue), compared with RMB559 million (26.7% on net revenue) for the first quarter of 2018. The pro forma adjusted EBITDA (non-GAAP) would have been RMB610 million (25.5% on net revenue) after considering the impact of our investments in development teams, upscale brands hotel and IT capabilities mentioned above.

"We had a record-breaking hotels gross opening in the first quarter with an average of 2.5 hotels every day. We will continue our fast expansion in 2019, particularly for the mid- and up-scale brands, supported by a record-high hotel pipeline of 1,311. In the first quarter of 2019, our mid- and up-scale room count increased by 45% year-over-year, accounting for approximately 40% in total rooms in operation. With 82% of our pipeline hotel rooms under the mid- and upscale brands, revenue contribution from this segment will continue to increase,” commented Ms. Jenny Zhang, Chief Executive Officer of Huazhu Group.

“In addition, we will continue to invest in our brands, hotel developments and IT capabilities. We believe these investments will strengthen our positions in the market and fuel our continuing future growth,” added Ms Zhang.

Guidance 
In the second quarter of 2019, the Company expects net revenues to grow 13% to 15% year-over-year.

The Company revised the gross opening target of 800-900 hotels to 1,100-1,200 hotels, and hotel closure to 200-250 in 2019.

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

 Fourth Quarter 2018 Financial Results

• Net revenues for the fourth quarter of 2018 were RMB2,683.3 million (US$390.3 million), representing a 20.6% year-over-year increase and a 3.0% sequential decrease. The year-over-year increase was primarily attributable to our hotel network expansion and RevPAR growth, the sequential decrease was due to seasonality.
• For the fourth quarter of 2018, basic and diluted losses per share were RMB1.48 (US$0.22). For the fourth quarter of 2018, excluding share-based compensation expenses and unrealized gains (losses) from fair value changes of equity securities, adjusted basic earnings per share (non-GAAP) were RMB1.29 (US$0.19) and adjusted diluted earnings per share (non-GAAP) were RMB1.23 (US$0.17).

“We are pleased to announce that Huazhu delivered a strong set of results in 2018. Our hotel turnover increased by 23% in 2018, thanks to a 13% growth in hotel network and a 10% increase in blended RevPAR. At the end of 2018, our hotel pipeline was at a record high of 1,105 hotels, or 26% of hotels in operation. Therefore, we expect our hotel network expansion to further accelerate in 2019. Our hotel network expansion will be primarily driven by midscale hotel openings,” commented Ms. Jenny Zhang, Chief Executive Officer of Huazhu Group.

“We are also pleased to see the remarkable growth for our midscale brands at their respective development stage. JI, our flagship midscale brand, is expected to reach 1,000 hotels by 2020 supported by its operational excellence and strong pipeline. The other younger brands also see significant increase in their hotel pipelines and, and thus are poised to take off. Furthermore, our innovation in upscale segment is well on track. After we acquired Blossom Hill in 2018, we have been working on bringing this upscale lifestyle and resort brand from the typical remote scenic spots to higher tier cities. This year, we will open two new urban Blossom Hill hotels in Shanghai and Beijing. The Beijing Blossom Hill Hotel is a conversion from our VUE hotel located at Beijing Hou Hai,” Jenny added. “Looking into 2019, we will continue to focus on fast and quality expansion, hotel technology to further improve guest experiences and operating efficiencies, and innovation for our upscale brands. We remain optimistic about long-term growth prospects for the lodging market in China. Huazhu is well positioned to deliver high return to franchisees and shareholders.”

Guidance

In the first quarter of 2019, the Company expects net revenues to grow 13% to 15% year-over-year. For the full year 2019, the Company expects net revenues to grow 15% to 17% from 2018.

The Company anticipates the gross opening of 800-900 hotels in 2019, about 75% of which are midscale and upscale hotels.

SHANGHAI, China, March 06, 2019 (GLOBE NEWSWIRE) -- Huazhu Group Limited (HTHT) (“Huazhu” or the “Company”), China’s leading hotel management group today announced that the putative securities class action complaint filed in the United States District Court in the Central District of California against the company and its management in October 2018, alleging violation of the U.S. securities laws in relation to reports of a possible data breach, was voluntarily dismissed by the plaintiffs on February 27, 2019.

SHANGHAI, China, Dec. 13, 2018 (GLOBE NEWSWIRE) -- Huazhu Group Limited (HTHT) (the "Company"), a leading and fast-growing multi-brand hotel group in China, today announced that its board of directors has declared a cash dividend of US$0.34 per ordinary share, or US$0.34 per American Depositary Share ("ADS”). Holders of the Company's ordinary shares or ADS at the close of trading on January 2, 2019 (U.S. Eastern Time) (the "Record Date") will be entitled to receive the cash dividend. Citibank, N.A., depositary bank for the Company's ADS program (the "ADS Depositary"), expects to pay out dividends to ADS holders on or around January 15, 2019. Dividends to be paid to the Company’s ADS holders through the ADS Depositary will be subject to the terms of the deposit agreement by and among the Company and the ADS Depositary, and the holders and beneficial owners of ADS issued thereunder, including the fees and expenses payable thereunder.

The total amount of cash to be distributed for the dividend is expected to be approximately US$100.1 million.

As of September 30, 2018, the Company had approximately US$662.1 million in cash, cash equivalents and restricted cash.

SHANGHAI, China, Oct. 11, 2018 (GLOBE NEWSWIRE) -- Huazhu Group Limited (HTHT) (“Huazhu” or the “Company”), a leading and fast-growing multi-brand hotel group in China, today engaged Gibson, Dunn & Crutcher LLP to defend the proposed securities class action.

On October 9, 2018, Huazhu became aware via publicly available information that a class action complaint has been filed with the United States District Court in the Central District of California against the Company and its management alleging violations of the U.S. securities laws in relation to possible data breach.

The Company believes that the claims in the complaint are without merit and will defend vigorously. The Company has engaged Gibson, Dunn & Crutcher LLP as its legal counsel to defend the lawsuit at issue.

SHANGHAI, China, Sept. 17, 2018 (GLOBE NEWSWIRE) -- Huazhu Group Limited (HTHT) (“Huazhu” or the “Company”), a leading and fast-growing multi-brand hotel group in China, today provided updates on the investigation status of the alleged information leak.

On August 28, 2018, online reports alleged that Huazhu had become the subject of potential information leak. On the same day, Huazhu made an official announcement to the public and reported the case to the police. To comply with police protocols, Huazhu has not disclosed the status of the investigation in the past several weeks. The Company sincerely appreciates the care and attention of the public during the past several weeks.

According to the latest update from the police, the police have arrested the suspects who posted the reported message on a Dark Web forum in an attempt to sell certain data. The attempted sale was not successful. The suspects also attempted to blackmail Huazhu by leveraging public pressure, without success. Further police investigation is being conducted on the subject matter.

To comply with laws and police protocols, the Company cannot disclose additional information on the case at this time. For details of issues of public concern, including whether the allegations made on the Dark Web forum by the suspects are authentic, and whether there has been an information leak, the Company is required not to make a public announcement until the completion of the police investigation.

Huazhu is committed to ensuring the safety of customer information and continuing to provide its customers with high-quality accommodations. Huazhu once again reminds investors and the public not to believe in rumors or spread unconfirmed information.

Second Quarter of 2018 Financial Results

• Net revenues increased 25.9% year-over-year from RMB2,002.4 million to RMB2,521.3 million (US$381.0 million) [1] for the second quarter of 2018, hitting high-end of Q2 revenue guidance.
• Basic and diluted earnings per share/ADS. For the second quarter of 2018, basic earnings per share were RMB1.20 (US$0.18) and diluted earnings per share were RMB1.14 (US$0.17). For the second quarter of 2018, excluding share-based compensation expenses and unrealized losses from fair value changes of equity securities, adjusted basic earnings per share (non-GAAP) were RMB1.98 (US$0.30) and adjusted diluted earnings per share (non-GAAP) were RMB1.87 (US$0.28).

“We are excited about the strong performance in the second quarter. Our same-hotel RevPAR grew by 7.9% year-over-year despite a high comparison base during the same period in 2017. The strong demand allowed us to drive higher room rates while maintaining occupancy rate as high as 92.2% for our mature hotels. Our hotel expansion is also well on track. In the first half of 2018, we opened a total of 274 hotels (gross opening) with 65% under mid- and up-scale brands. The number of hotels in pipeline reached 839, a record high number,” commented Ms. Jenny Zhang, Chief Executive Officer of Huazhu.

“In addition, the developments of our acquired brands were also very remarkable. For example, we have refreshed Mercure hotel layout tailored to the taste of the Chinese middle-class customers. We have also improved the Mercure brand’s operating model so that it is ready for fast expansion by improving the RevPar performances and costs efficiencies since we took over the brand in early 2016. The integration of Crystal Orange is successful as evidenced by fast expansion, strong RevPAR growth and cost synergies from headquarters and hotels,” added Ms. Zhang. “A week ago, we announced the acquisition of Blossom Hill Hotels and Resorts. Blossom Hill is a reputable upscale holiday and resort brands in China, which will further enrich our brand portfolio, catering to an increasing population of Chinese customers looking for quality stays during their holidays.”

Guidance
The Company expects net revenues for the third quarter to grow 10.5%-12.5% year-over-year. For the full year of 2018, the Company reaffirms the net revenues growth range of 18%-22%. Considering the acquisition of Blossom Hill, the full year target for gross hotel opening has been revised upwards from 650-700 to 680-730. As part of our quality control exercise, we will also tighten up our quality control by terminating certain franchisees who fail to maintain quality standards through product upgrades and procuring from the authorized suppliers through Huazhu centralized procurement platform. In this connection, we will also revise-up the full year target for hotel closure from 200 to 240.

SHANGHAI, China, Aug. 15, 2018 (GLOBE NEWSWIRE) -- Huazhu Group Limited (HTHT) (“Huazhu” or the “Company”), a leading and fast-growing multi-brand hotel group in China, today announced that its wholly-owned subsidiary Huazhu Hotel Management Co., Ltd. has entered into share transfer agreements with Beijing Tsingpu Travel Culture Development Co., Ltd. and Suzhou Tiancheng Jiaqi Tourism Industry Investment LLP, two shareholders of Blossom Hill Hotel Investment Management (Kunshan) Co., Ltd. (“Blossom Hill”), to acquire 71.2% of outstanding shares of Blossom Hill for a total consideration of approximately RMB462.9 million in cash (the “Acquisition”). The Acquisition is subject to customary closing conditions and is expected to be completed on or around August 31, 2018.

Upon completion of the Acquisition, Huazhu will own an aggregate of 82.5% of the shares of Blossom Hill, and Blossom Hill Hotels & Resorts will become part of Huazhu’s hotel network. Huazhu may continue to acquire some remaining minority shareholders’ shares in Blossom Hill. The companies believe that the Acquisition will combine Blossom Hill’s unique positioning with Huazhu’s market leadership, extensive geographic coverage, strong development capability and operational expertise in China.

“We highly value Blossom Hill’s luxury, boutique hotels & resorts with aesthetic decor and cultural touch. We see this acquisition as a win-win combination for both Huazhu and Blossom Hill: with the addition of Blossom Hill hotels & resorts to our hotel portfolio, we are able to offer more diversified choices to our over 100 million HUAZHU Rewards members; at the same time, this acquisition is also expected to improve Blossom Hill’s occupancy rate.” commented Ms. Jenny Zhang, Chief Executive Officer of the Company. “In the future, Huazhu will introduce Blossom Hill’s uniquely-designed and positioned cultural hotels & resorts into the urban market and develop the Blossom Hill brand into a leading brand in China’s cultural hotel and resort segment. By integrating Blossom Hill with our existing hotel portfolio and providing more choices for customers, we aim to further strengthen Huazhu’s presence in China’s upscale hotel and resort segment through this acquisition.”

Huazhu does not expect this transaction to have any significant impact on its revenue or profit in 2018.

First Quarter of 2018 Financial Results

• Net revenues increased 29.6% year-over-year from RMB1,614.1 million to RMB2,091.2 million (US$333.4 million)1 for the first quarter of 2018，exceeding the higher end of our Q1 Guidance.
• Basic and diluted earnings per share/ADS. For the first quarter of 2018, basic earnings per share were RMB0.46 (US$0.07) and diluted earnings per share were RMB0.44 (US$0.07); basic earnings per ADS were RMB1.83 (US$0.29) and diluted earnings per ADS were RMB1.75 (US$0.28). For the first quarter of 2018, excluding share-based compensation expenses and unrealized loss from fair value changes of equity securities, adjusted basic earnings per share (non-GAAP) were RMB1.01 (US$0.16) and adjusted diluted earnings per share (non-GAAP) were RMB0.96 (US$0.15); adjusted basic earnings per ADS (non-GAAP) were RMB4.02 (US$0.64) and adjusted diluted earnings per ADS (non-GAAP) were RMB3.85 (US$0.61).

“We are excited to report a great start to the year. In the first quarter, same-hotel RevPAR grew by 6.5%, exceeding our expectation and reflecting the solid economic growth. Our fast expansion in mid- and upscale hotels are well on track. In the first quarter of 2018, our mid- and upscale room count increased by 92% year-over-year, and accounted for approximately 32% and 80% in total rooms in operation and in pipeline, respectively,” commented Ms. Jenny Zhang, Chief Executive Officer of China Lodging Group.

“I’m also delighted to announce that we have made a strategic investment about 4.5% in AccorHotels to strengthen our partnership. Since our strategic alliance with AccorHotels in 2016, we have made efforts to expand the hotel network, enhance brand awareness and operational efficiencies. In the first quarter of 2018, Ibis and Mercure achieved same-hotel RevPAR growth of 14.5% and 12.6%, respectively,” added Ms. Zhang. “We have also engaged discussions with AccorHotels for a board representation. This has been positively received by AccorHotels and shall be discussed further in the coming weeks.”

Guidance
Thanks to the better-than-expected growth in RevPAR outlook, the Company revised upwards the full year net revenues growth estimate from 16%-19% to 18%-22%. In the second quarter of 2018, the Company expects net revenues to grow 24%-26% year-over-year.

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

SHANGHAI, China, Jan. 29, 2018 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (HTHT) (“China Lodging Group”, “Huazhu”, or the “Company”), a leading and fast-growing multi-brand hotel group in China, today announced it has formed a joint venture with TPG Capital Asia (“TPG”) (20% owned by the Company and 80% owned by TPG ) (the “Joint Venture”). The Joint Venture has entered into a share purchase agreement to acquire 100% equity interest of two hotel properties in Beijing – Novotel Beijing Sanyuan and Ibis Beijing Sanyuan (“the hotels”) - at a cash consideration of RMB 1.18bn from Ascendas Hospitality Trust (Singapore), subject to customary post-closing adjustments (the “Acquisition”). The acquisition is subject to regulatory approvals and is expected to close in the first half of 2018. Post-closing, the Joint Venture will renovate the hotels and Huazhu will continue to serve as operator. Hitone Capital, a boutique real estate focused investment firm, provided advisory service on the transaction, and will continue to provide support on closing and asset management.

Huazhu, as a leading hotel operator in China, has a diversified brand portfolio from economy, midscale to upscale segments and has strong operation capability. By partnering with leading investment funds, Huazhu not only secures prime locations to expand its flagship upscale hotels, but also takes a share of asset appreciation by improving the operational efficiency. As more and more upscale and luxury hotel owners are disposing underperforming assets, the company is anticipating more hotel property opportunities in the future.

With limited space for new development, China’s first-tier cities have entered a period of urban renewal as they look for better planning and more efficient use of commercial properties. Novotel Beijing Sanyuan and Ibis Beijing Sanyuan are adjacently located in prime locations in Chaoyang District, Beijing’s central business area, also known as CBD, which serves as a hub where multinational companies and foreign embassy compounds are based.

Commenting on the Acquisition, Jenny Zhang, Chief Executive Officer of the Company, said: “We are delighted to announce the acquisition of Novotel Beijing Sanyuan and Ibis Beijing Sanyuan by our joint venture with TPG. The acquisition enables us to create new flagship hotels by renovation and operational improvement. It will not only strengthen our upscale brands, but also generate good return for our invested capital. Going forward, light asset model will continue to be Huazhu’s primary focus. Meanwhile, Huazhu will work with investment partners through minority participation to create more flagship hotels and generate more investment return based on our strong operational expertise.”

“As our first foray into China’s commercial property investment market, we are very excited to be working together with a well-respected investment and operation partner like China Lodging Group,” said Chang Sun, TPG’s Managing Partner in China.  “TPG has a history of investing across a wide range of asset classes, and we are committed to finding more diverse ways to generate value for our investors.”

China Lodging does not expect this transaction to have any significant impact on its revenue and profit in 2018. The cash outflow for this transaction will be approximately 20m USD.

SHANGHAI, China, Oct. 26, 2017 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (HTHT), a leading and fast-growing multi-brand hotel group in China (“China Lodging Group” or the “Company”), today announced the offering (the “Notes Offering”) of up to US$425 million in aggregate principal amount of convertible senior notes due 2022 (the “Notes”), subject to market and other conditions. The Company intends to grant the initial purchasers in the Notes Offering a 30-day option to purchase up to an additional US$50 million in principal amount of the Notes. The Company plans to use the net proceeds from the Notes Offering to pay the cost of the capped call transactions described below, and use the remainder of the proceeds to repay all or part of the principal and interest of the loans that it borrowed from a US$250 million revolving credit facility, to make investments in minority equity interests in businesses that are in the Company’s industry or are complementary to its business, and to fund other general corporate purposes.

The Notes will be convertible into the Company’s American Depositary Shares (“ADSs”) and will mature on November 1, 2022. The Company may not redeem the Notes prior to maturity, unless certain tax-related events occur. It is contemplated that holders of the Notes may require the Company to repurchase all or part of their Notes in cash on November 2, 2020 or in the event of certain fundamental changes. The conversion rate and other terms of the Notes will be determined at the time of pricing of the Notes Offering.

SHANGHAI, China, Oct. 26, 2017 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (Nasdaq:HTHT), a leading and fast-growing multi-brand hotel group in China (“China Lodging Group” or the “Company”), today announced the commencement of the offering of American Depositary Shares (“ADSs”), each currently representing four ordinary shares of the Company, par value of US$0.0001 per share (the “ADS Offering”), which the Company intends to loan to an affiliate of the underwriter (such affiliate being the “ADS Borrower”).

Concurrently with the ADS Offering, the Company announced the offering (the “Notes Offering”) of up to US$425 million in aggregate principal amount of convertible senior notes due 2022 (the “Notes”) pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The Company intends to grant the initial purchasers in the Notes Offering a 30-day option to purchase up to an additional US$50 million in principal amount of the Notes. The Company plans to use the net proceeds from the Notes Offering to pay the cost of the capped call transactions described below, and use the remainder of the proceeds to repay all or part of the principal and interest of the loans that it borrowed from a US$250 million revolving credit facility, to make investments in minority equity interests in businesses that are in the Company’s industry or are complementary to its business, and to fund other general corporate purposes.

In connection with the Notes Offering, the Company intends to enter into an ADS lending agreement with the ADS Borrower, pursuant to which the Company will lend a certain number of ADSs to the ADS Borrower. Concurrently with the Notes Offering, the ADS Borrower will sell some of the borrowed ADSs pursuant to a prospectus supplement and an accompanying base prospectus described below. The amount of ADS sold by the ADS Borrower concurrently with the Notes Offering will depend on what portion of investors in the Notes desire to hedge their investment, though we currently estimate that concurrent ADS sales to be sized between $40 million and $70 million.

Additional borrowed ADSs may be offered on a delayed basis following the Notes Offering. The exact number of ADSs to be offered will depend on the terms of the Notes Offering and the hedging to be conducted by investors in the Notes. The ADS Borrower expects that, during the ADS Offering period, the ADS Borrower, or its affiliates or agents, may, in its discretion, purchase a comparable number of ADSs in the open market. The sale of the borrowed ADSs is intended to allow some investors in the Notes to hedge their exposure to the Notes. The ADS Borrower will be required to return the borrowed ADSs pursuant to the ADS lending agreement following the maturity date. The ADS Borrower will receive all of the proceeds from the sale of the borrowed ADSs. The Company will not receive any proceeds from the offering of the borrowed ADSs, but will receive a nominal lending fee from the ADS Borrower, which will be applied to fully pay up the ordinary shares underlying the Borrowed ADSs. The borrowed ADSs are not outstanding for purposes of calculating earnings per share under current GAAP rules and therefore the Company will not incur share dilution from the borrowed ADSs.

The ADS Offering is conditioned on the closing of the Notes Offering. If the Notes Offering is not consummated, the ADS loan under the ADS lending agreement will terminate, the ADS Offering will terminate and all borrowed ADSs (or ADSs fungible with borrowed ADSs) must be returned to the Company.

SHANGHAI, China, Oct. 23, 2017 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (HTHT) (the "Company"), a leading and fast-growing multi-brand hotel group in China, today announced that its board of directors has declared a cash dividend of US$0.16 per ordinary share, or US$0.64 per American Depositary Share ("ADS”). Holders of the Company's ordinary shares or ADS at the close of trading on December 4, 2017 (U.S. Eastern Time) (the "Record Date") will be entitled to receive the cash dividend. Citibank, N.A., depositary bank for the Company's ADS program (the "ADS Depositary"), expects to pay out dividends to ADS holders on or around December 15, 2017. Dividends to be paid to the Company’s ADS holders through the ADS Depositary will be subject to the terms of the deposit agreement by and among the Company and the ADS Depositary, and the holders and beneficial owners of ADS issued thereunder, including the fees and expenses payable thereunder.

The total amount of cash to be distributed for the special dividend is expected to be approximately US$45 million.

As of June 30, 2017, the Company had approximately US$509 million in cash, cash equivalents and restricted cash.

SHANGHAI, China, Sept. 13, 2017 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (HTHT) (“China Lodging Group” or the “Company”), a leading and fast-growing multi-brand hotel group in China, today announced that it has entered into a five-year Memorandum of Understanding (“MoU”) on September 8, 2017 with Oravel Stays Private Ltd. (“OYO”), India’s leading hospitality company, to facilitate and strengthen collaboration to build a global market leading hospitality business.

Under the MoU, China Lodging Group and OYO will explore opportunities for mutual collaboration in four fields: (i) knowledge and technology sharing, (ii) strategic alliances and partnerships in various areas, including but not limited to local sourcing and procurement and joint loyalty programs, (iii) new venture partnership opportunities, and (iv) investment. As part of this collaboration, China Lodging Group has agreed to make a US$ 10m equity investment in OYO to become a minority shareholder (less than 5%). China Lodging Group and OYO will also discuss collaboration in a variety of other areas of mutual interests pursuant to the MoU.

Speaking about the partnership, Jenny Zhang, CEO – China Lodging Group, said, “We are delighted to announce our strategic alliance with OYO. The MoU signifies the shared aspirations of China Lodging Group and OYO to explore growing opportunities in the global hospitality industry and to create synergies by working together. The partnership will draw on the strengths of China Lodging Group’s visionary and experienced management team, market leadership through a multi-brand strategy, extensive hotel operations expertise and strong loyalty program and OYO’s advanced technologies in the hospitality industry that enable transformation of hotel operations.”

Ritesh Agarwal, Founder & CEO – OYO, said, “We are very excited about this partnership – both in terms of potential opportunities and existing synergies through our complementary strengths and capabilities. China Lodging Group has a visionary and experienced leadership team and hotel operations expertise especially in managing large properties. OYO is a new-age technology company disrupting the hospitality industry with category-leading capabilities of using technology to onboard and transform existing supply, standardize operations and distribute these through online and offline channels. Addressing consumers in India and China – two of the world’s fastest-growing markets – through our combined strengths opens up a very large and significant growth opportunity.”

SHANGHAI, China, May 29, 2017 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (HTHT) (“China Lodging”, or the “Company”), a leading and fast-growing multi-brand hotel group in China, today announced that its wholly-owned subsidiary China Lodging Holdings (HK) Limited had completed the transaction with the shareholders of Crystal Orange Hotel Holdings Limited (“Crystal Orange”) to acquire all of the equity interests of Crystal Orange for an initial aggregate consideration of approximately RMB3.65 billion (the “Transaction”) on May 25, 2017. The Transaction has obtained approval from the Antitrust Bureau of Ministry of Commerce of China.

Upon closing, Crystal Orange’s hotel business has become part of China Lodging’s network. This important strategic acquisition will combine Crystal Orange’s unique positioning with China Lodging’s extensive coverage and strong development capability in China.

“We value Crystal Orange’s brand recognition and postmodern design. Their style and positioning match perfectly with China Lodging’s philosophy and brand portfolio. This transaction enables both companies to offer their members more choices and further strengthens China Lodging’s leading position as one of the largest hotel groups in China,” said China Lodging’s Chief Executive Officer, Ms. Jenny Zhang.

China Lodging’s management will revise the full year 2017 guidance taking into consideration the financial impact of the Transaction. More details on the financial impact of the Transaction and revised full year 2017 guidance will be provided on the Company’s earnings call for the second quarter of 2017. During the earnings call for the first quarter of 2017, the Company revised up its 2017 full year guidance for net revenues growth to 10% to 13% year-over-year, which had not taken into consideration the financial impact of the Transaction.

First Quarter 2017 Financial Results

• Net revenues increased 10.8% year-over-year to RMB1,593.1 million (US$231.4 million) 1 for the first quarter of 2017.
• Adjusted basic earnings per ADS (non-GAAP) were RMB2.35 (US$0.34) and adjusted diluted earnings per ADS (non-GAAP) were RMB2.28 (US$0.33) for the first quarter of 2017.

“We are pleased by our performance in the quarter across the board. Our blended RevPAR achieved 9.8% year-over-year growth while same-hotel RevPAR grew by 5.8% for the first quarter. This was mainly driven by our continuous upgrade to HanTing 2.0, coupled with continuously-growing demand for our midscale hotels.” said Ms. Jenny Zhang, Chief Executive Officer of China Lodging Group.
   

Guidance for Second Quarter of 2017
For the second quarter of 2017, the Company expects net revenues to grow 10% to 12% year-over-year.

SHANGHAI, China, Feb. 27, 2017 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (NASDAQ:HTHT) (“China Lodging” or the “Company”), a leading hotel chain operator in China, today announced that its wholly-owned subsidiary China Lodging Holdings (HK) Limited has entered into a definitive share purchase agreement with the shareholders of Crystal Orange Hotel Holdings Limited (“Crystal Orange”) to acquire all of the equity interests of Crystal Orange for an initial aggregate consideration in cash of approximately RMB 3.65 billion, with customary post-closing adjustments (the “Transaction”). The closing of the Transaction is subject to the approval from the Antitrust Bureau of Ministry of Commerce of China.

China Lodging's management will communicate more details on the Q4 and full year earnings call at 9 p.m. ET, Tuesday, March 14, 2017 (or 9 a.m. on Wednesday, March 15, 2017 in the Shanghai/Hong Kong time zone). To participate in the event by telephone, please dial +1 (855) 500 8701 (for callers in the US), +86 400 120 0654 (for callers in China Mainland), +852 3018 6776 (for callers in Hong Kong) or +65 6713 5440 (for callers outside of the US, China Mainland, and Hong Kong) and enter pass code 7256 4976.  Please dial in approximately 10 minutes before the scheduled time of the call.

Second Quarter 2016 Financial Results

• Net revenues increased 13.7% year-over-year to RMB1,656.9 million (US$249.3 million) ¹ for the second quarter of 2016, in line with the guidance previously announced. 

• Basic earnings per ADS² were RMB4.56 (US$0.69) and diluted earnings per ADS were RMB4.44 (US$0.67) for the second quarter of 2016. Excluding share-based compensation expenses, adjusted basic earnings per ADS (non-GAAP) were RMB4.80 (US$0.72) and adjusted diluted earnings per ADS (non-GAAP) were RMB4.67 (US$0.70) for the second quarter of 2016. 

�We are thrilled to see improved performance combined with growing hotel network. The same-hotel RevPAR for midscale and upscale hotels has maintained high-single-digit growth. About 36% of our hotel pipeline are contributed by midscale and upscale brands,� Ms. Zhang added. �We are optimistic about the prospects of the travel industry in China, especially the growth of demand in leisure travel. We continue executing our multi-brand and asset-light strategy, and expect to offer high quality products and deliver strong results.�

�We had solid results this quarter. Our net revenues grew by 13.7% in line with our expectation while income from operations and adjusted EBITDA grew by 31.9% and 51.4%, respectively, for the second quarter,� said Ms. Jenny Zhang, Chief Executive Officer of China Lodging Group.

"We are thrilled to see improved performance combined with growing hotel network. The same-hotel RevPAR for midscale and upscale hotels has maintained high-single-digit growth. About 36% of our hotel pipeline are contributed by midscale and upscale brands,� Ms. Zhang added. �We are optimistic about the prospects of the travel industry in China, especially the growth of demand in leisure travel. We continue executing our multi-brand and asset-light strategy, and expect to offer high quality products and deliver strong results.�

Guidance for Third Quarter of 2016
The Company expects net revenues for the third quarter of 2016 to grow 10% to 12.5% year-over-year. The Company reaffirms the net revenues for the full year 2016 to grow 12% to 15%.

SHANGHAI, China, April 11, 2016 (GLOBE NEWSWIRE) --

Dear Shareholders:

I would like to take this opportunity on behalf of everyone at Baozun to thank you all for your support over the past year.

On May 21, 2015, we took Baozun public on NASDAQ, which was a significant milestone for us. Our team was very proud of the IPO and we are also very mindful of the fact that this means even greater commitment and responsibility to our brand partners, employees and shareholders. We intend to keep learning, growing and improving as we strive to live up to our corporate motto – A Superior Baozun.

I’d like to start by discussing three aspects at the core of our corporate strategy.

China’s brand e-commerce is continuing to grow rapidly and has enormous potential.

Online retail in China has grown rapidly over the past 10 years. According to market data, in 2015, China’s online retail market accounted for RMB3.8 trillion (about USD580 billion), or around 12% of all Chinese retail sales; by 2017, the size of China’s online retail sector is expected to surpass those of the U.S. and Europe combined.

Brand e-commerce – connecting brands and consumers through official online stores and authorized marketplace stores – has been growing even faster and more consistently than the overall e-commerce market in China. In 2014, the latest year for which domestic data is available, brand e-commerce grew by 79.3% versus 45.8% for the entire e-commerce market.

From what we have observed, there are two drivers for brand e-commerce: increasing attention paid by brands to e-commerce, and enthusiasm of shoppers for access to sophisticated products, including the world’s foremost brands, that e-commerce can provide.

With regard to the first driver, brands face a challenging and highly fragmented retail market in China due to the high costs of offline channel penetration. We have witnessed brands increasingly adopting e-commerce as their key retail strategy in China in order to bypass the challenging offline retail landscape and take advantage of the tremendous e-commerce opportunities. Brand e-commerce gives brands greater command of the transaction lifecycle and makes it possible to build brands more effectively through official or authorized online stores rather than traditional offline channels. As a result, we believe brand e-commerce will be an increasingly important part of the strategy of brands operating in China.

The second driver, which is fundamentally an expression of rising consumer aspirations, is equally important. Once Chinese consumers have met their basic needs, they become more selective and discriminating in the products and services they purchase. This leads to increased interest in brand shopping. As we work with many of the world’s leading brands, we are benefiting from this consistent and growing shift towards branded products and services within the Chinese consumer space. We believe brand e-commerce has tremendous potential to achieve vertical depth by category as well as horizontal penetration across channels. With the rise of “omni-channel” shopping, success for brands is predicated on reaching consumers on whatever device or platform they choose.

As China’s economic model matures, GDP growth may be slower than in the previous decades of high-speed growth, but the urban middle class has expanded, and along with it, consumer spending will keep growing at a steady rate. We foresee rapid growth of brand e-commerce over the next few decades, as a large share of consumption shifts to the “post-90s generation”. These post-90s consumers tend to be even more aspirational than prior generations, and tend to have more financial security, consumption power and confidence in the future. At the same time, across rural areas and in third- and fourth-tier cities and towns, mobile shopping is booming. Like their counterparts in China’s major urban centers, our research indicates that shoppers are increasingly turning to e-commerce to access their favorite brands as they are also less likely to have access to branded offline stores.

SHANGHAI, China, March 17, 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 that Ms. Hui Chen has resigned as Chief Financial Officer for her personal reasons. Mr. Teo Nee Chuan will act as new Chief Financial Officer.

"Hui has added tremendous value as CFO of our company and has been a long-time partner to me. She has contributed to our financial excellence during her tenure," said Mr. Qi Ji, founder and executive Chairman of the Board of Directors of the Company. “We respect her personal decision and wish her all the best.”

"I am also pleased to announce the appointment of Mr. Teo Nee Chuan as CFO," said Mr. Ji. "Teo's strong leadership and in-depth financial experience will be invaluable assets to the Company and our shareholders. We look forward to his success in the new role."

Mr. Teo joined the Company in November 2015 as Deputy Chief Financial Officer. He has more than 20 years of experience in financial areas in multinational corporations. Prior to joining China Lodging Group, he was Chief Financial Officer of Rnomac International Group, the largest Volvo construction equipment distributor in China. He also served as Chief Financial Officer and Director of Operation in DDB Greater China Group and Financial Controller in Focus Media Group. Prior to that, Mr. Teo worked at Ernst & Young as Associate Director of Transaction Advisory Services in Kuala Lumpur, Toronto and Shanghai. Mr. Teo received his Bachelor of Science in Accounting and Financial Analysis from Warwick University, the United Kingdom. He is a Chartered Certified Accountant in the United Kingdom and a Certified Public Accountant in the United States and Hong Kong.

In addition, China Lodging Group announced that after serving for more than five years as an independent director and a member of the Audit Committee and the Compensation Committee, Mr. Joseph Chow has resigned from the Board of Directors for his personal reasons, effective March 16, 2016.

“We thank Joseph for his great support to our company over the past few years. We wish him well to pursue other interests,” said Mr. Ji.

Fourth Quarter 2015 Financial Results

• Net revenues increased 16.2% year-over-year to RMB1,506.3 million (US$232.5 million)1 for the fourth quarter and 16.3% to RMB5,774.6 million (US$891.4 million) for the full year of 2015, in line with the guidance previously announced.
• Excluding share-based compensation expenses, adjusted basic earnings per ADS (non-GAAP) were RMB1.36 (US$0.21) for the fourth quarter of 2015 and RMB7.81 (US$1.21) for the full year of 2015 and adjusted diluted earnings per ADS (non-GAAP) were RMB1.32 (US$0.20) for the fourth quarter of 2015 and RMB7.64 (US$1.18) for the full year of 2015.

Mr. Qi Ji, founder and executive Chairman of China Lodging Group, said, “Our business continues to perform well in 2015, with strong unit growth and improved margin. Our brands have a growing popularity among customers and franchisees. In 2015, we added a total of 68,888 rooms bringing our network to more than 278,000 rooms, about 73% under manachise and franchise models. In spite of the soft Chinese macro economy, our comparable mature hotels (in operation at least 18 months) achieved occupancy rate of 88%. In particular, our midscale and upscale hotels registered a 6.5% same-hotel RevPAR improvement.

“Our healthy balance sheet has allowed us to make investments in our business, while at the same time returning capital to shareholders. Our increasing unit growth and solid operational performance should continue to fuel improving margin, growing cash flow and steady returns to shareholders in the long term.” Mr. Ji added.

Business Outlook and Guidance for 2016

“We remain positive about the long-term prospects about China travel industry. In 2016, we continue our consistent execution of asset-light and multiple-brand strategy. We plan to open 750 to 800 hotels, with 80% for economy hotels and 20% for midscale and upscale hotels. The manachised and franchised hotels continue to be the vast majority of our new openings in 2016, which is similar to 2015.” commented Mr. Ji.

In the first quarter of 2016, the Company expects net revenues to grow 14% to 15% year-over-year. For the full year 2016, the Company expects net revenues to grow 12% to 15% from 2015.

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

SHANGHAI, China, Jan. 27, 2016 (GLOBE NEWSWIRE) -- 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 that it has completed the transaction of strategic alliance with AccorHotels.

Under the terms of the agreement, the AccorHotels economy hotel business progressively integrates into China Lodging Group�s network. China Lodging Group is now the master franchisee for Mercure, ibis Styles and ibis in mainland China, Taiwan and Mongolia. AccorHotels� Grand Mercure and Novotel brands will be developed and operated by both AccorHotels and China Lodging Group under a co-development agreement.

China Lodging Group will also take a non-controlling stake of 29.3% in AccorHotels Luxury and Upscale operating platform for Greater China. This platform will develop and operate brands including Sofitel, Pullman, MGallery by Sofitel. It will also develop and operate the Grand Mercure and Novotel brands as per the Co-Development agreement for these brands. China Lodging Group appoints two representatives (out of five) to the joint venture�s Board of Directors.

AccorHotels will have a 10.8% stake in China Lodging Group, including newly issued 24,895,543 ordinary shares at a price of $6.6375 per ordinary share (or 9.0% of China Lodging Group�s outstanding shares after issuance; 4 ordinary shares=1 American depositary shares) and the Company�s American depositary shares purchased by AccorHotels from the open market. AccorHotels appoints one representative to China Lodging Group�s Board of Directors.

The combined hotel networks represent more than 6,500 hotels worldwide, and the two loyalty programs have more than 75 million members. After linking both global reservation system and loyalty programs, the two groups will have expanded distribution channels, which attract more customers.

"We are excited to finally complete this transaction,� commented Mr. Ji Qi, the founder and Chairman of China Lodging Group. �We create value by combining the distribution and strengths of Huazhu and AccorHotels, enhancing our competitiveness in a quickly evolving marketplace. The combined brand portfolio provides a full coverage from economy hotels to luxury hotels, and is unrivaled in China."

"Our unparalleled local expertise with AccorHotels� brands will create a hospitality powerhouse which will deliver unprecedented value to both groups, our partners, and our customers," Mr. Ji concluded.

SHANGHAI, China, Dec. 21, 2015 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (Nasdaq:HTHT) (the "Company"), a leading and fast-growing multi-brand hotel group in China, today announced that its board of directors declared a one-time cash dividend of US$0.17 per ordinary share, or US$0.68 per American Depositary Share ("ADS�). Holders of the Company's ordinary shares at 5:00 p.m. on December 31, 2015 (China Beijing Time) and holders of the Company�s ADS at the close of business on December 30, 2015 (U.S. New York Time) (the "Record Dates") will be entitled to receive the cash dividend. Citibank, N.A., depositary bank for the Company�s ADS program (the �ADS Depositary�), expects to pay out dividends to ADS holders on or around February 4, 2016. Dividends to be paid to the Company�s ADS holders through the ADS Depositary will be subject to the terms of the deposit agreement by and among the Company and the ADS Depositary, and the holders and beneficial owners of ADS issued thereunder, including the fees and expenses payable thereunder.

The total amount of cash to be distributed for the special dividend is expected to be approximately US$43 million.

As of September 30, 2015, the Company had US$126 million in cash and cash equivalents.    

• Net revenues increased 16.9% year-over-year to RMB1,457.8 million (US$235.1 million)¹ for the second quarter of 2015, exceeding the high end of the guidance.

• Basic earnings per ADS² were RMB2.37 (US$0.38) for the second quarter of 2015 and diluted earnings per ADS were RMB2.32 (US$0.37). Excluding share-based compensation expenses, adjusted basic earnings per ADS (non-GAAP) were RMB2.59 (US$0.42) and adjusted diluted earnings per ADS (non-GAAP) were RMB2.53 (US$0.41) for the second quarter of 2015.

Business Outlook and Guidance for Third Quarter of 2015

"We remain confident about the long-term prospects of the overall travel and lodging market in China. Thanks to our successful brand positioning and proven results, we have continued to see a robustly growing pipeline, with another record high of 740 hotels as end of second quarter this year. In particular, the number of manachised and franchised hotels in the pipeline grew by 57% year-over-year. We are excited about the growth of our core brand HanTing and the successful roll-out of our new brands among customers and franchisees," commented Mr. Qi Ji, founder, and Executive Chairman of China Lodging Group.

Mr. Ji added, "We focus on strengthening our diversified brand portfolio, building scale, elevating customer experience and generating profits to hotel owners through highly-efficient operations. We look forward to deliver long-term value to our shareholders."

The Company expects net revenues for the third quarter of 2015 to grow 11.5% to 13.5% year-over-year. The Company raised full year net revenues forecast to grow 11.5% to 13.5%.

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

SHANGHAI, China, May 22, 2015 (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 it has appointed Hui Chen as Chief Financial Officer, effective May 22, 2015.

"On behalf of the Board, I am pleased to announce the appointment of Hui as Chief Financial Officer," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer. "Hui's strong leadership and in-depth financial experience will be invaluable assets to the company and our shareholders."

Ms. Chen has been Executive Vice President of Finance since January 2015. In her new role of Chief Financial Officer, Ms. Chen will report to Jenny Zhang, President of the Company. Ms. Chen has strong internal control and deep financial expertise in the travel and hotel industries in China. Previously, Ms. Chen once served as the Chief Financial Officer of Home Inns Group and the Finance Director of Ctrip.com. Ms. Chen obtained her Master degree in Management from Shanghai Jiaotong University.

First Quarter of 2015 Financial Results 

• Net revenues increased 17.1% year-over-year to RMB1,210.4 million (US$195.3 million) 1 for the first quarter of 2015, exceeding the high end of the guidance.
• Basic and diluted loss per ADS 2 were RMB0.11 (US$0.02) for the first quarter of 2015. Excluding share-based compensation expenses, adjusted basic and diluted earnings per ADS were RMB0.09 (US$0.01) for the first quarter of 2015.

"In the first quarter, we continued our hotel network expansion, mainly driven by the growth of asset-light business models across our brand portfolio. A record high of net 176 manachised and franchised hotels were added into our system in a single quarter, and in addition, we had a total of 664 manachised and franchised hotels in the pipeline. The fast expansion has demonstrated our growing popularity among customers and franchisees," said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group.

Guidance for Second Quarter of 2015

For the second quarter of 2015, the Company expects net revenues to grow 13% to 16% year-over-year.

SHANGHAI, China, April 20, 2015 (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 its Board of Directors has approved a share repurchase program of up to $40 million, effective for one year from April 20, 2015.

Under the program, the Company is authorized to repurchase through open market its own outstanding American Depositary Shares ("ADSs") with an aggregate value of up to $40 million, depending on market conditions and other factors, as well as in accordance with relevant rules under United States securities regulations. The repurchase program does not obligate China Lodging Group to make repurchases at any specific time. The share repurchase program will be funded by the Company's available cash balance.

"We believe the share repurchase program represents our confidence in our cash flow, and in the long-term outlook for the travel and lodging industry in China. Our fast-growing strategy, asset-light business model and solid operation have demonstrated strong capability for cash generating. We believe that the share repurchase program is consistent with the goal of increasing shareholder value," commented Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer.

Fourth Quarter 2014 Financial Results

• Net revenues increased 15.7% year-over-year to RMB1,296.2 million (US$208.9 million) ¹ for the fourth quarter and 19.1% to RMB4,964.7million (US$800.2 million) for the full year of 2014, in line with the guidance previously announced.
• Adjusted basic earnings per share were RMB0.20 (US$0.03) and adjusted diluted earnings per share (non-GAAP) were RMB0.19 (US$0.03); adjusted basic earnings per ADS (non-GAAP) were RMB0.79 (US$0.13) and adjusted diluted earnings per ADS (non-GAAP) were RMB0.77 (US$0.12).

"We are excited about our rapid build-up of hotel network in 2014, largely driven by our solid growth in manachise business and wide choice of brands. A record high of net 570 hotels were added into our system in a single year, more than 90% of which are under manachise model and more than 25% are under new brands." said Mr. Qi Ji, founder, executive Chairman and Chief Executive Officer of China Lodging Group.

Mr. Ji continued, "On the front of digital innovation, we have implemented the proprietary Cloud-based HPMS across our entire hotel network, and introduced new functionalities on Huazhu.com and Huazhu mobile apps. These digital initiatives will enable us to further enhance customer experience and improve hotel operational efficiency on a large scale. Looking ahead, we are confident to fortify our leading position as a hotel management group in China by executing our strategies."

"In the fourth quarter, we signed agreements to form a strategic alliance with Accor. Under the agreements, Accor's economy and midscale hotel platform will become part of our network. We will receive the exclusive rights as a master franchisee for brands, including Grand Mercure, Novotel, Mercure, Ibis and Ibis Styles, in mainland China, Taiwan region and Mongolia. We believe the collaboration will create the most successful hotel business in China, and make the Accor-Huazhu alliance an unprecedented success." Mr. Ji added.

Business Outlook and Guidance for 2015

"We remain confident about the long-term growth potential of travel demand in China. We will continue to invest in our new brands to meet diversified needs. In 2015, we plan to add 680 to 730 leased and manachised hotels, with 20 to 30 leased hotels and 660 to 700 manachised and franchised hotels. Among these new hotels, 80% will be economy hotels, and 20% will be midscale and upscale hotels." commented Mr. Ji.

In the first quarter of 2015, the Company expects net revenues to grow 12% to 14% year-over-year. For the full year 2015, the Company expects net revenues to grow 7.5% to 11.5% from 2014.

SHANGHAI, China, Dec. 14, 2014 (GLOBE NEWSWIRE) -- Accor S.A.(Euronext Paris:AC) ("Accor") and China Lodging Group. Ltd. (Nasdaq:HTHT) ("China Lodging Group" or "Huazhu") signed binding documents on December 14, 2014 in Paris, France, to join forces in the Pan-China region to develop Accor brands and to form an extensive and long-term alliance. The transaction is expected to close upon completion of anti-trust review, legal restructuring and other closing conditions. Accor is the world's 6th largest hotel group, with more than 3,700 hotels in 92 countries. China Lodging Group is a leading and fast-growing hotel group in China, with a portfolio focusing on the economy and midscale hotel segments. This ground-breaking alliance will combine the strengths of Accor's global brands and network with China Lodging Group's extensive coverage and strong development capability in China.

Pursuant to the transaction, Accor's economy and midscale platform will become part of China Lodging Group's network. Brands under this platform include Grand Mercure, Novotel, Mercure, Ibis and Ibis Styles (collectively, the "MEB portfolio"), for which China Lodging Group receives the exclusive rights as a master franchisee in mainland China, Taiwan region and Mongolia. All hotels under these brands will continue to be managed under Accor's brand standards and have all benefits of all of Accor's international distribution and loyalty platforms, and will participate in China Lodging Group's loyalty and distribution platforms and benefit from China Lodging Group's on-the-ground support. The MEB portfolio will extend China Lodging Group's coverage to the upper-midscale (Novotel and Mercure) and upscale (Grand Mercure) hotel segment, and further strengthen China Lodging Group's leading position in the economy hotel segment (IBIS and IBIS Styles). China Lodging Group intends to accelerate the expansion of those brands by leveraging its strength in development of and experience in operating a sizable hotel network in China. China Lodging Group plans to open 350 to 400 new hotels under the MEB portfolio in the next five years, representing a CAGR of 34% to 37% from the existing network

Accor will continue to lead in the operations and development of the luxury and upscale brands such as Sofitel, Pullman, M Gallery and The Sebel (collectively, the "LUB portfolio"). China Lodging Group will become a minority shareholder in a joint venture that primarily operates the LUB portfolio in the Pan-China region. China Lodging Group will support the development of the LUB portfolio through its extensive network of relationships and development teams in China. The involvement in the LUB portfolio will further expand China Lodging Group's business to the upscale and luxury segment.

As of December 1, 2014, in the Pan-China region Accor had 144 hotels in operation, including 102 in the MEB portfolio and 42 in the LUB portfolio, and 117 hotels contracted in the pipeline, including 70 in the MEB portfolio and 47 in the LUB portfolio.

The two partners plan to link their global reservation and loyalty platforms. This move is expected to facilitate distribution and attract more customers to the enlarged network. The combined hotel networks represented more than 5,600 hotels worldwide, and the two loyalty programs had more than 47 million members, as of December 1, 2014.

Upon the closing of this transaction, China Lodging Group will issue common shares to Accor, which will represent up to 10% of China Lodging Group's total outstanding shares after the issuance. The exact amount of shares to be issued will be determined based on 2014 audited financials of Accor China business and the number of shares issued for cash consideration, capped at USD 25 Million. Accor will have a seat on China Lodging Group's board of directors following the closing of the transaction.

The conditions to the closing of this transaction include, among others, the obtaining of requisite governmental approvals and the completion of certain corporate restructuring. Both Accor and China Lodging Group will use due efforts to achieve the closing conditions in an expedited manner.

"The joint force of Accor and Huazhu is a ground-breaking alliance in the global hospitality industry. Through the combination of the strengths of both partners, we aim to create the best and one of the largest hotel groups in China. The combined brand portfolio provides a full coverage from economy hotels to luxury hotels, and is unrivaled in China. Huazhu will further strengthen its leadership position in the economy hotel segment, with five brands under its management following completion of the transaction, namely Ibis, Ibis Styles, HanTing, Elan and Hi Inn. On top of that, Huazhu will also become an undisputable leader in the midscale segment, with JI, Starway, Novotel and Mercure," commented Mr. Ji Qi, the founder, Chairman and CEO of China Lodging Group. "We are thrilled that our long-time friendship with Accor matures into a long-lasting collaboration. We believe the collaboration will create the most successful hotel business in China, and make the Accor-Huazhu alliance an unprecedented success."

"This ground-breaking collaboration will leverage the strengths of Accor's global brands with a leading player in Chinese hospitality," said Sebastien Bazin, Chairman and CEO of Accor. "Joining Huazhu's unparalleled local expertise with our brands will create a hospitality powerhouse which will deliver unprecedented value to both groups and to our customers."

• Net revenues increased 21.0% year-over-year to RMB1,387.5 million (US$226.1 million) for the third quarter, in line with the guidance previously announced.
• Basic earnings per ADS2 were RMB2.40 (US$0.39) for the third quarter of 2014 and diluted earnings per ADS were RMB2.36 (US$0.38). Excluding share-based compensation expenses, adjusted basic earnings per ADS were RMB2.65 (US$0.43) and adjusted diluted earnings per ADS (non-GAAP) were RMB2.61 (US$0.43) for the third quarter of 2014.

Business Outlook and Guidance

"Thanks to the growing popularity of our brand portfolio, we are pleased to see our hotel network and member base expansion accelerated against a slow macro-economic backdrop. To bolster our leadership in this competitive market, we will dedicate additional resources to technology, through open innovation platforms that strengthen our expertise. We believe this will lay a sound foundation for the Company to capture the huge growth opportunity in the coming years," commented Mr. Qi Ji, founder, executive Chairman and CEO of the Company.

The Company expects net revenues for the fourth quarter of 2014 to grow 15.5% to 17.5% growth year-over-year. Therefore, the Company expects net revenues for the full year of 2014 to grow 19% to 19.6%, slightly lower than the initial full year expectations the Company provided at the beginning of the year. The above forecast reflects the Company's current and preliminary view, which is subject to change.

Second Quarter of 2014 Financial Results

• Total revenues for the second quarter of 2014 were RMB1,323.0 million (US$213.3 million), representing a 20.6% year-over-year increase and a 20.5% sequential increase.
• Basic earnings per ADS³ were RMB2.00 (US$0.32) for the second quarter of 2014 and diluted earnings per ADS were RMB1.97 (US$0.32). Excluding share-based compensation expenses, adjusted basic earnings per ADS were RMB2.11 (US$0.34) and adjusted diluted earnings per ADS (non-GAAP) were RMB2.08 (US$0.34) for the second quarter of 2014.

Business Outlook and Guidance for Third Quarter of 2014

"Thanks to the strong growth in China travel market and our proven results, we have continued to see a robustly growing pipeline, with another record high of 505 hotels as end of second quarter this year. Our midscale hotels saw a remarkable progress with 137 hotels in operation and 83 hotels in the pipeline. The same-hotel RevPAR for midscale hotels registered low teen year-over-year increase in the first half. We remain confident in the growth of China economy hotel market as only 20% of the market has been consolidated so far. Our economy hotel brands, HanTing Hotel and Hi Inn, both are well on track to expand across the country. In addition, we recently launched Elan Hotel, which is a new non-standardized economy hotel brand. We expect to further capture the opportunity for consolidation in the economy hotel market with the brand portfolio in the coming years," commented Mr. Qi Ji, founder, Executive Chairman and Chief Executive Officer of China Lodging Group.

The Company expects net revenues for the third quarter of 2014 to grow 20% to 22% growth year-over-year.

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."

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.

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.

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.

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.

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.

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.

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." 

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."

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

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.

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%.

Third quarter ended September 30, 2011

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).

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."

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.