China Lodging Group, Limited (NASDAQ:HTHT) (“China Lodging Group”,
“HuaZhu” or the “Company”), a leading and fast-growing multi-brand
hotel group in China, today announced its unaudited financial
results for the first quarter ended March 31,
2017.
Operational Highlights of First Quarter 2017
- During the first quarter of 2017, the Company opened 5 leased
and owned hotels and 84 manachised (“franchised-and-managed”) and
franchised hotels, and closed 9 leased and owned hotels and 13
manachised and franchised hotels.
- The ADR, which is defined as the average daily rate for all
hotels in operation, was RMB182 in the first quarter of 2017,
compared with RMB172 in the first quarter of 2016 and RMB186 in the
previous quarter. The year-over-year increase of 5.2% was due to
more favorable brand mix with an increased proportion of midscale
and upscale hotels. The sequential decrease mainly resulted from
seasonality.
- The occupancy rate for all hotels in operation was 83.9% in the
first quarter of 2017, compared with 80.4% in the first quarter of
2016 and 84.7% in the previous quarter. The year-over-year increase
was mainly due to the improvement of economy hotels. The sequential
decrease resulted mainly from seasonality.
- RevPAR, defined as revenue per available room for all hotels in
operation, was RMB152 in the first quarter of 2017, compared with
RMB139 in the first quarter of 2016 and RMB158 in the previous
quarter. The year-over-year increase was attributable to both
higher ADR and occupancy. The sequential decrease resulted mainly
from seasonality.
- For all hotels which had been in operation for at least 18
months, the same-hotel RevPAR was RMB151 for the first quarter of
2017, representing a 5.8% year-over-year increase, with a 1.8%
increase in ADR and a 3.3-percentage-point increase in occupancy
rate. The midscale and upscale hotels registered an 9.2% same-hotel
RevPAR improvement, with a 6.9% increase in ADR and
1.7-percentage-point increase in occupancy rate.
- As of March 31, 2017, the Company’s loyalty program had
approximately 81.4 million members, who contributed more than 77%
of room nights sold during the first quarter of 2017. In the first
quarter of 2017, approximately 86% of room nights were sold through
the Company’s own channels.
“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. First Quarter of 2017
Financial Results
(RMB in thousands) |
Q1 2016 |
|
Q4 2016 |
|
Q1 2017 |
Revenues: |
|
|
|
|
|
Leased and owned
hotels |
1,201,761 |
|
|
1,290,575 |
|
1,223,476 |
Manachised and
franchised hotels |
318,103 |
|
|
367,983 |
|
361,362 |
Others |
628 |
|
|
11,365 |
|
8,268 |
Total revenues |
1,520,492 |
|
|
1,669,923 |
|
1,593,106 |
Less: business tax and
related taxes |
(82,507 |
) |
|
- |
|
- |
Net revenues |
1,437,985 |
|
|
1,669,923 |
|
1,593,106 |
Net
revenues from leased and owned hotels |
1,136,549 |
|
|
1,290,575 |
|
1,223,476 |
Net
revenues from manachised and franchised hotels |
300,842 |
|
|
367,983 |
|
361,362 |
Others |
594 |
|
|
11,365 |
|
8,268 |
|
|
|
|
|
|
Note: Value-added tax ("VAT") has been implemented for
hospitality industry to replace business tax in China, effective
May 1, 2016. For comparison purpose, the business tax and related
taxes in Q1 2016 are reallocated to reflect net revenues for each
business. |
Net revenues for the first
quarter of 2017 were RMB1,593.1 million (US$231.4 million),
representing a 10.8% year-over-year increase and a 4.6% sequential
decrease. The year-over-year increase was primarily due to our
hotel network expansion and improved blended RevPAR. The sequential
decrease was due to seasonality.
Net revenues from leased and owned
hotels for the first quarter of 2017 were RMB1,223.5
million (US$177.7 million), representing a 7.6% year-over-year
increase and a 5.2% sequential decrease.
Net revenues from manachised and
franchised hotels for the first quarter of 2017 were
RMB361.4 million (US$52.5 million), representing a 20.1%
year-over-year increase and a 1.8% sequential decrease. Net
revenues from manachised and franchised hotels accounted for 22.7%
of the Company’s net revenues in the first quarter of 2017, up from
20.9% a year ago.
Other revenues represent
revenues generated from other than hotel businesses, which mainly
include revenues from HuaZhu mall and the provision of IT products
and services to hotels, totalling RMB8.3 million (US$1.2 million)
in the first quarter of 2017.
(RMB in thousands) |
Q1 2016 |
|
Q4 2016 |
|
Q1 2017 |
Operating costs
and expenses: |
|
|
|
|
|
Hotel
operating costs |
1,200,459 |
|
1,264,602 |
|
1,198,962 |
Other
operating costs |
- |
|
2,319 |
|
1,933 |
Selling
and marketing expenses |
33,055 |
|
46,142 |
|
34,268 |
General
and administrative expenses |
106,607 |
|
143,434 |
|
165,343 |
Pre-opening expenses |
22,019 |
|
19,747 |
|
24,112 |
Total operating costs
and expenses |
1,362,140 |
|
1,476,244 |
|
1,424,618 |
Hotel operating costs for the
first quarter of 2017 were RMB1,199.0 million (US$174.2 million),
compared to RMB1,200.5 million in the first quarter of 2016 and
RMB1,264.6 million in the previous quarter, representing a 0.1%
year-over-year decrease and a 5.2% sequential decrease. Total hotel
operating costs excluding share-based compensation expenses
(non-GAAP) for the first quarter of 2017 were RMB1,194.3 million
(US$173.5 million), representing 75.0% of net revenues, compared to
83.3% for the first quarter in 2016 and 75.5% for the previous
quarter. The year-over-year and sequential decrease in the
percentage was mainly attributable to the improved blended RevPAR
and the maturity of our leased and owned hotels.
Selling and marketing expenses
for the first quarter of 2017 were RMB34.3 million (US$5.0
million), compared to RMB33.1 million in the first quarter of 2016
and RMB46.1 million in the previous quarter. Selling and marketing
expenses excluding share-based compensation expenses (non-GAAP) for
the first quarter of 2017 were RMB34.0 million (US$4.9 million), or
2.2% of net revenues, compared to 2.3% for the first quarter of
2016 and 2.8% for the previous quarter. The sequential decrease was
mainly attributable to the lower marketing spending in the first
quarter of 2017.
General and administrative
expenses for the first quarter of 2017 were RMB165.3
million (US$24.0 million), compared to RMB106.6 million in the
first quarter of 2016 and RMB143.4 million in the previous quarter.
General and administrative expenses excluding share-based
compensation expenses (non-GAAP) for the first quarter of 2017 were
RMB154.5 million (US$22.4 million), representing 9.7% of net
revenues, compared with 6.6% of net revenues in the first quarter
of 2016 and 8.1% in the previous quarter. The year-over-year and
sequential increase was mainly due to one-off Crystal Orange Hotels
acquisition transaction costs amounting to RMB45.2 million (US$6.6
million), representing 2.8% of net revenues.
Pre-opening expenses for the
first quarter of 2017 were RMB24.1 million (US$3.5 million),
representing a 9.5% year-over-year increase and a 22.1% sequential
increase. The year-over-year and sequential increase in percentage
were mainly due to more midscale or upscale leased and owned hotels
were under construction in the first quarter of 2017.
Income from operations for the
first quarter of 2017 was RMB167.3 million (US$24.3 million),
compared to RMB70.8 million in the first quarter of 2016 and
RMB185.7 million in the previous quarter. Excluding share-based
compensation expenses, adjusted income from operations (non-GAAP)
for the first quarter of 2017 was RMB183.1 million (US$26.6
million), compared to adjusted income from operation (non-GAAP) of
RMB85.6 million for the first quarter of 2016 and RMB198.2 million
for the previous quarter. The adjusted operating margin,defined as
adjusted operating income (non-GAAP) as percentage of net revenues,
for the first quarter of 2017 was 11.5%, compared with 5.9% in the
first quarter of 2016 and 11.8% in the previous quarter. The
improved year-over-year adjusted operating margin was mainly
attributable to the improved blended RevPAR and VAT deductions.
Net income attributable to China Lodging
Group, Limited for the first quarter of 2017 was RMB148.1
million (US$21.5 million), compared to RMB69.4 million in the first
quarter of 2016 and RMB125.9 million in the previous quarter.
Excluding share-based compensation expenses, adjusted net income
attributable to China Lodging Group, Limited (non-GAAP) for the
first quarter of 2017 was RMB163.9 million (US$23.8 million),
representing a 94.5% year-over-year increase and a 18.4% sequential
increase. The year-over-year increase was mainly attributable to
our expanded hotel network, the improved blended RevPAR, and VAT
deductions.
Basic and diluted earnings per
share/ADS. For the first quarter of 2017, basic
earnings per share were RMB0.53 (US$0.08) and diluted earnings per
share were RMB0.52 (US$0.07); basic earnings per ADS were RMB2.13
(US$0.31) and diluted earnings per ADS were RMB2.06 (US$0.30). For
the first quarter of 2017, excluding share-based compensation
expenses, adjusted basic earnings per share (non-GAAP) were RMB0.59
(US$0.09) and adjusted diluted earnings per share (non-GAAP) were
RMB0.57 (US$0.08); 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).
EBITDA (non-GAAP) for the first
quarter of 2017 was RMB357.7 million (US$52.0 million), compared
with RMB260.8 million in the first quarter of 2016 and RMB366.8
million in the previous quarter. Excluding share-based compensation
expenses, adjusted EBITDA (non-GAAP) for the first quarter of 2017
was RMB373.5 million (US$54.3 million), compared with RMB275.7
million for the first quarter of 2016 and RMB379.3 million for the
previous quarter.
Cash flow. Operating cash
inflow for the first quarter of 2017 was RMB178.5 million (US$25.9
million). Investing cash outflow for the first quarter was
RMB1,064.5 million (US$154.7 million), including a RMB700.0 million
(US$101.7 million) deposit paid for the acquisition of Crystal
Orange Hotels, which was recorded in other current assets.
Cash and cash equivalents and Restricted
cash. As of March 31, 2017, the Company had a total
balance of cash and cash equivalents and restricted cash of
RMB2,376.0 million (US$345.2 million).
Debt financing. As of March 31,
2017, the Company had a short-term loan balance of RMB296.7 million
(US$43.0 million) and the total credit facility available to the
Company was RMB750.0 million.
Guidance for Second Quarter of
2017For the second quarter of 2017, the Company expects
net revenues to grow 10% to 12% year-over-year.
The above forecast reflects the Company’s
current and preliminary view, which is subject to change.
Conference CallChina Lodging
Group's management will host a conference call at 9 p.m. ET,
Wednesday, May 10, 2017 (or 9 a.m. on Thursday, May 11, 2017 in the
Shanghai/Hong Kong time zone) following the announcement. 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 1174 2446. Please dial in
approximately 10 minutes before the scheduled time of the call.
A recording of the conference call will be
available after the conclusion of the conference call through May
18, 2017. Please dial +1 (855) 452 5696 (for callers in the US) or
+61 2 9003 4211 (for callers outside the US) and entering pass code
1174 2446.
The conference call will also be webcast live
over the Internet and can be accessed by all interested parties at
the Company's Web site, http://ir.huazhu.com.
Use of Non-GAAP Financial
Measures To supplement the Company’s unaudited
consolidated financial results presented in accordance with U.S.
GAAP, the Company uses the following non-GAAP measures defined as
non-GAAP financial measures by the SEC: hotel operating costs
excluding share-based compensation expenses; general and
administrative expenses excluding share-based compensation
expenses; selling and marketing expenses excluding share-based
compensation expenses; adjusted income from operations excluding
share-based compensation expenses; adjusted operating margin
excluding share-based compensation expenses; adjusted net income
attributable to China Lodging Group, Limited excluding share-based
compensation expenses; adjusted basic and diluted earnings per
share and per ADS excluding share-based compensation expenses;
EBITDA; and adjusted EBITDA excluding share-based compensation
expenses. The presentation of these non-GAAP financial measures is
not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with
U.S. GAAP. For more information on these non-GAAP financial
measures, please see the table captioned “Reconciliations of GAAP
and non-GAAP results” set forth at the end of this release. The
Company believes that these non-GAAP financial measures provide
meaningful supplemental information regarding Company performance
by excluding share-based compensation expenses that may not be
indicative of Company operating performance. The Company believes
that both management and investors benefit from referring to these
non-GAAP financial measures in assessing Company performance and
when planning and forecasting future periods. These non-GAAP
financial measures also facilitate management’s internal
comparisons to the Company’s historical performance. The Company
believes these non-GAAP financial measures are also useful to
investors in allowing for greater transparency with respect to
supplemental information used regularly by Company management in
financial and operational decision-making. A limitation of using
non-GAAP financial measures excluding share-based compensation
expenses is that share-based compensation expenses have been – and
will continue to be – a significant recurring expense in the
Company’s business. Management compensates for these limitations by
providing specific information regarding the GAAP amounts excluded
from each non-GAAP measure. The accompanying tables have more
details on the reconciliations between GAAP financial measures that
are most directly comparable to non-GAAP financial measures.
The Company believes that EBITDA is a useful
financial metric to assess the operating and financial performance
before the impact of investing and financing transactions and
income taxes, given the significant investments that the Company
has made in leasehold improvements, depreciation and amortization
expense that comprise a significant portion of the Company’s cost
structure. In addition, the Company believes that EBITDA is widely
used by other companies in the lodging industry and may be used by
investors as a measure of financial performance. The Company
believes that EBITDA will provide investors with a useful tool for
comparability between periods because it eliminates depreciation
and amortization expense attributable to capital expenditures. The
Company also uses adjusted EBITDA, which is defined as EBITDA
before share-based compensation expenses, to assess operating
results of the hotels in operation. The Company believes that the
exclusion of share-based compensation expenses helps facilitate
year-on-year comparison of the results of operations as the
share-based compensation expenses may not be indicative of Company
operating performance. Therefore, the Company believes adjusted
EBITDA more closely reflects the performance capability of hotels
currently in operation. The presentation of EBITDA and adjusted
EBITDA should not be construed as an indication that the Company’s
future results will be unaffected by other charges and gains
considered to be outside the ordinary course of business.
The use of EBITDA and adjusted EBITDA has
certain limitations. Depreciation and amortization expense for
various long-term assets (including land use rights), income tax,
interest expense and interest income have been and will be incurred
and are not reflected in the presentation of EBITDA. Share-based
compensation expenses have been and will be incurred and are not
reflected in the presentation of adjusted EBITDA. Each of these
items should also be considered in the overall evaluation of the
results. The Company compensates for these limitations by providing
the relevant disclosure of the depreciation and amortization,
interest income, interest expense, income tax expense, share-based
compensation expenses and other relevant items both in the
reconciliations to the U.S. GAAP financial measures and in the
consolidated financial statements, all of which should be
considered when evaluating the performance of the Company.
The terms EBITDA and adjusted EBITDA are not
defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is
a measure of net income, operating income, operating performance or
liquidity presented in accordance with U.S. GAAP. When assessing
the operating and financial performance, investors should not
consider these data in isolation or as a substitute for the
Company’s net income, operating income or any other operating
performance measure that is calculated in accordance with U.S.
GAAP. In addition, the Company’s EBITDA or adjusted EBITDA may not
be comparable to EBITDA or adjusted EBITDA – or similarly titled
measures utilized by other companies – since such other companies
may not calculate EBITDA or adjusted EBITDA in the same manner as
the Company does.
Reconciliations of the Company’s non-GAAP
financial measures, including EBITDA and adjusted EBITDA, to the
consolidated statement of operations information are included at
the end of this press release.
About China Lodging Group,
LimitedChina Lodging Group, Limited is a leading hotel
operator and franchisor in China under 12 brand names. As of March
31, 2017, the Company had 3,336 hotels or 335,900 rooms in
operation in 369 cities. With a primary focus on economy and
midscale hotel segments, China Lodging Group’s brands include Hi
Inn, HanTing Hotel, Elan Hotel, JI Hotel, Starway Hotel, Joya
Hotel, and Manxin Hotel. The Company also has the rights as master
franchisee for Mercure, Ibis and Ibis Styles, and co-development
rights for Grand Mercure and Novotel, in Pan-China region.
The Company’s business includes leased and
owned, manachised and franchised models. Under the lease and
ownership model, the Company directly operates hotels typically
located on leased or owned properties. Under the manachise model,
the Company manages manachised hotels through the on-site hotel
managers it appoints and collects fees from franchisees. Under the
franchise model, the Company provides training, reservation and
support services to the franchised hotels and collects fees from
franchisees but does not appoint on-site hotel managers. The
Company applies a consistent standard and platform across all of
its hotels. As of March 31, 2017, China Lodging Group operates 23
percent of its hotel rooms under lease and ownership model, 77
percent under manachise and franchise models.
For more information, please visit the Company’s
website: http://ir.huazhu.com.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995: The information in this
release contains forward-looking statements which involve risks and
uncertainties, including statements regarding the Company’s capital
needs, business strategy and expectations. Any statements contained
herein that are not statements of historical fact may be deemed to
be forward-looking statements, which may be identified by
terminology such as “may,” “should,” “will,” “expect,” “plan,”
“intend,” “anticipate,” “believe,” “estimate,” “predict,”
“potential,” “forecast,” “project,” or “continue,” the negative of
such terms or other comparable terminology. Readers should not rely
on forward-looking statements as predictions of future events or
results. Any or all of the Company’s forward-looking statements may
turn out to be wrong. They can be affected by inaccurate
assumptions, risks and uncertainties and other factors which could
cause actual events or results to be materially different from
those expressed or implied in the forward-looking statements. In
evaluating these statements, readers should consider various
factors, including the anticipated growth strategies of the
Company, the future results of operations and financial condition
of the Company, the economic conditions of China, the regulatory
environment in China, the Company’s ability to attract customers
and leverage its brand, trends and competition in the lodging
industry, the expected growth of the lodging market in China and
other factors and risks outlined in the Company’s filings with the
Securities and Exchange Commission, including its annual report on
Form 20-F and other filings. These factors may cause the Company’s
actual results to differ materially from any forward-looking
statement. In addition, new factors emerge from time to time and it
is not possible for the Company to predict all factors that may
cause actual results to differ materially from those contained in
any forward-looking statements. Any projections in this release are
based on limited information currently available to the Company,
which is subject to change. This release also contains statements
or projections that are based upon information available to the
public, as well as other information from sources which the Company
believes to be reliable, but it is not guaranteed by the Company to
be accurate, nor does the Company purport it to be complete. The
Company disclaims any obligation to publicly update any
forward-looking statements to reflect events or circumstances after
the date of this document, except as required by applicable
law.
1 The conversion of Renminbi (“RMB”) into United States
dollars (“US$”) is based on the exchange rate of US$1.00=RMB6.8832
on March 31, 2017 as set forth in H.10 statistical release of the
U.S. Federal Reserve Board and available at
http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
2 Each ADS represents four of the Company’s ordinary
shares.
—Financial Tables and Operational Data
Follow—
China Lodging Group,
Limited |
Unaudited Condensed Consolidated Balance
Sheets |
|
December 31, 2016 |
|
March 31, 2017 |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands) |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and
cash equivalents |
3,235,007 |
|
|
2,375,492 |
|
|
345,114 |
|
Restricted cash |
500 |
|
|
500 |
|
|
73 |
|
Accounts
receivable, net |
141,649 |
|
|
135,569 |
|
|
19,696 |
|
Loan
receivables |
22,410 |
|
|
20,071 |
|
|
2,916 |
|
Amounts
due from related parties |
98,453 |
|
|
171,256 |
|
|
24,880 |
|
Prepaid
rent |
446,127 |
|
|
481,024 |
|
|
69,884 |
|
Inventories |
21,606 |
|
|
23,354 |
|
|
3,393 |
|
Other
current assets |
208,929 |
|
|
916,022 |
|
|
133,080 |
|
Total
current assets |
4,174,681 |
|
|
4,123,288 |
|
|
599,036 |
|
|
|
|
|
|
|
Property and equipment,
net |
3,710,468 |
|
|
3,638,614 |
|
|
528,623 |
|
Intangible assets,
net |
342,694 |
|
|
339,354 |
|
|
49,302 |
|
Land use rights |
145,521 |
|
|
144,178 |
|
|
20,946 |
|
Long-term
investments |
1,064,321 |
|
|
1,135,342 |
|
|
164,944 |
|
Goodwill |
171,504 |
|
|
171,504 |
|
|
24,916 |
|
Loan receivables |
7,269 |
|
|
7,196 |
|
|
1,046 |
|
Other assets |
200,492 |
|
|
221,495 |
|
|
32,179 |
|
Deferred tax
assets |
176,414 |
|
|
172,466 |
|
|
25,056 |
|
Total assets |
9,993,364 |
|
|
9,953,437 |
|
|
1,446,048 |
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Short-term debt |
298,291 |
|
|
296,670 |
|
|
43,101 |
|
Accounts
payable |
584,731 |
|
|
459,979 |
|
|
66,826 |
|
Amounts
due to related parties |
11,058 |
|
|
10,358 |
|
|
1,505 |
|
Salary
and welfare payables |
274,259 |
|
|
169,507 |
|
|
24,626 |
|
Deferred
revenue |
749,793 |
|
|
739,912 |
|
|
107,495 |
|
Accrued
expenses and other current liabilities |
895,837 |
|
|
962,135 |
|
|
139,780 |
|
Income
tax payable |
152,112 |
|
|
98,144 |
|
|
14,259 |
|
Total
current liabilities |
2,966,081 |
|
|
2,736,705 |
|
|
397,592 |
|
|
|
|
|
|
|
Deferred rent |
1,023,843 |
|
|
1,037,099 |
|
|
150,671 |
|
Deferred revenue |
166,963 |
|
|
157,613 |
|
|
22,898 |
|
Other long-term
liabilities |
323,991 |
|
|
332,542 |
|
|
48,312 |
|
Deferred tax
liabilities |
96,329 |
|
|
97,327 |
|
|
14,140 |
|
Total liabilities |
4,577,207 |
|
|
4,361,286 |
|
|
633,613 |
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
Ordinary
shares |
204 |
|
|
204 |
|
|
30 |
|
Treasury
shares |
(107,331 |
) |
|
(107,331 |
) |
|
(15,593 |
) |
Additional paid-in capital |
3,699,056 |
|
|
3,725,426 |
|
|
541,234 |
|
Retained
earnings |
1,812,174 |
|
|
1,960,257 |
|
|
284,789 |
|
Accumulated other comprehensive income (loss) |
(4,503 |
) |
|
1,609 |
|
|
234 |
|
Total China Lodging
Group, Limited shareholders' equity |
5,399,600 |
|
|
5,580,165 |
|
|
810,694 |
|
Noncontrolling interest |
16,557 |
|
|
11,986 |
|
|
1,741 |
|
Total equity |
5,416,157 |
|
|
5,592,151 |
|
|
812,435 |
|
Total
liabilities and equity |
9,993,364 |
|
|
9,953,437 |
|
|
1,446,048 |
|
China Lodging Group,
Limited |
Unaudited Condensed Consolidated Statements of
Comprehensive Income |
|
Quarter Ended |
|
|
March 31, 2016 |
|
December 31, 2016 |
|
March 31, 2017 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
(in thousands, except per share and per ADS
data) |
Revenues: |
|
|
|
|
|
|
|
|
Leased
and owned hotels |
1,201,761 |
|
|
1,290,575 |
|
|
1,223,476 |
|
|
177,748 |
|
|
Manachised and franchised hotels |
318,103 |
|
|
367,983 |
|
|
361,362 |
|
|
52,499 |
|
|
Others |
628 |
|
|
11,365 |
|
|
8,268 |
|
|
1,201 |
|
|
Total revenues |
1,520,492 |
|
|
1,669,923 |
|
|
1,593,106 |
|
|
231,448 |
|
|
Less:
business tax and related taxes |
(82,507 |
) |
|
- |
|
|
- |
|
|
- |
|
|
Net revenues |
1,437,985 |
|
|
1,669,923 |
|
|
1,593,106 |
|
|
231,448 |
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Hotel
operating costs: |
|
|
|
|
|
|
|
|
Rents |
(477,271 |
) |
|
(461,112 |
) |
|
(463,138 |
) |
|
(67,285 |
) |
|
Utilities |
(114,482 |
) |
|
(78,451 |
) |
|
(101,850 |
) |
|
(14,797 |
) |
|
Personnel
costs |
(257,556 |
) |
|
(272,706 |
) |
|
(280,316 |
) |
|
(40,725 |
) |
|
Depreciation and amortization |
(165,870 |
) |
|
(169,350 |
) |
|
(169,567 |
) |
|
(24,635 |
) |
|
Consumables, food and beverage |
(115,037 |
) |
|
(127,864 |
) |
|
(108,602 |
) |
|
(15,778 |
) |
|
Others |
(70,243 |
) |
|
(155,119 |
) |
|
(75,489 |
) |
|
(10,967 |
) |
|
Total
hotel operating costs |
(1,200,459 |
) |
|
(1,264,602 |
) |
|
(1,198,962 |
) |
|
(174,187 |
) |
|
Other
operating costs |
- |
|
|
(2,319 |
) |
|
(1,933 |
) |
|
(281 |
) |
|
Selling
and marketing expenses |
(33,055 |
) |
|
(46,142 |
) |
|
(34,268 |
) |
|
(4,978 |
) |
|
General
and administrative expenses |
(106,607 |
) |
|
(143,434 |
) |
|
(165,343 |
) |
|
(24,021 |
) |
|
Pre-opening expenses |
(22,019 |
) |
|
(19,747 |
) |
|
(24,112 |
) |
|
(3,503 |
) |
|
Total operating costs
and expenses |
(1,362,140 |
) |
|
(1,476,244 |
) |
|
(1,424,618 |
) |
|
(206,970 |
) |
|
Other
operating expense, net |
(5,091 |
) |
|
(7,961 |
) |
|
(1,145 |
) |
|
(166 |
) |
|
Income from
operations |
70,754 |
|
|
185,718 |
|
|
167,343 |
|
|
24,312 |
|
|
Interest income |
9,801 |
|
|
22,939 |
|
|
18,332 |
|
|
2,663 |
|
|
Interest expense |
(3,067 |
) |
|
(2,289 |
) |
|
(2,358 |
) |
|
(343 |
) |
|
Other income
(loss) |
15,661 |
|
|
(3,207 |
) |
|
27,049 |
|
|
3,930 |
|
|
Foreign exchange gain
(loss) |
(1,586 |
) |
|
10,341 |
|
|
(5,378 |
) |
|
(781 |
) |
|
Income before income
taxes |
91,563 |
|
|
213,502 |
|
|
204,988 |
|
|
29,781 |
|
|
Income tax expense |
(27,713 |
) |
|
(87,745 |
) |
|
(52,343 |
) |
|
(7,605 |
) |
|
Income (loss) from
equity method investments |
3,291 |
|
|
3,734 |
|
|
(4,654 |
) |
|
(676 |
) |
|
Net income |
67,141 |
|
|
129,491 |
|
|
147,991 |
|
|
21,500 |
|
|
Less: net loss
(income) attributable to noncontrolling interest |
2,247 |
|
|
(3,633 |
) |
|
92 |
|
|
13 |
|
|
Net income attributable
to China Lodging Group, Limited |
69,388 |
|
|
125,858 |
|
|
148,083 |
|
|
21,513 |
|
|
Other comprehensive
income |
|
|
|
|
|
|
|
|
Unrealized securities
holding gains (losses), net of tax |
(1,288 |
) |
|
3,278 |
|
|
8,736 |
|
|
1,269 |
|
|
Reclassification
adjustment of unrealized securities holding gains, net of tax, for
gain included in net income |
(12,903 |
) |
|
- |
|
|
(3,737 |
) |
|
(543 |
) |
|
Foreign currency
translation adjustments, net of tax |
1,834 |
|
|
(6,911 |
) |
|
1,113 |
|
|
162 |
|
|
Comprehensive
income |
54,784 |
|
|
125,858 |
|
|
154,103 |
|
|
22,388 |
|
|
Comprehensive loss
(income) attributable to the noncontrolling interest |
2,247 |
|
|
(3,633 |
) |
|
92 |
|
|
13 |
|
|
Comprehensive income
attributable to China Lodging Group, Limited |
57,031 |
|
|
122,225 |
|
|
154,195 |
|
|
22,401 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
0.26 |
|
|
0.45 |
|
|
0.53 |
|
|
0.08 |
|
|
Diluted |
0.25 |
|
|
0.44 |
|
|
0.52 |
|
|
0.07 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS: |
|
|
|
|
|
|
|
|
Basic |
1.03 |
|
|
1.81 |
|
|
2.13 |
|
|
0.31 |
|
|
Diluted |
1.01 |
|
|
1.76 |
|
|
2.06 |
|
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computation: |
|
|
|
|
|
|
|
|
Basic |
269,131 |
|
|
277,473 |
|
|
278,472 |
|
|
278,472 |
|
|
Diluted |
275,949 |
|
|
285,887 |
|
|
287,313 |
|
|
287,313 |
|
|
China Lodging Group,
Limited |
|
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
|
Quarter Ended |
|
|
March 31, 2016 |
|
December 31, 2016 |
|
March 31, 2017 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
(in thousands) |
|
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
67,141 |
|
|
129,491 |
|
|
147,991 |
|
|
21,500 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
Share-based compensation |
14,863 |
|
|
12,527 |
|
|
15,799 |
|
|
2,295 |
|
|
Depreciation and amortization |
170,478 |
|
|
173,826 |
|
|
173,204 |
|
|
25,163 |
|
|
Deferred
taxes |
- |
|
|
30,809 |
|
|
2,955 |
|
|
429 |
|
|
Bad debt
expenses |
749 |
|
|
1,200 |
|
|
413 |
|
|
60 |
|
|
Deferred
rent |
30,547 |
|
|
29,764 |
|
|
14,837 |
|
|
2,156 |
|
|
Gain from
disposal of property and equipment |
- |
|
|
1,240 |
|
|
4,291 |
|
|
623 |
|
|
Impairment loss |
6,393 |
|
|
62,669 |
|
|
- |
|
|
- |
|
|
Loss
(income) from equity method investments |
(3,291 |
) |
|
(3,734 |
) |
|
4,654 |
|
|
676 |
|
|
Investment gain |
(12,903 |
) |
|
- |
|
|
(27,016 |
) |
|
(3,925 |
) |
|
Excess
tax benefit from share-based compensation |
(3,009 |
) |
|
(11,470 |
) |
|
(7,525 |
) |
|
(1,093 |
) |
|
|
|
|
|
|
|
|
|
|
Changes
in operating assets and liabilities, net of effect of
acquisitions: |
|
|
|
|
|
|
|
|
Accounts
receivable |
(22,211 |
) |
|
922 |
|
|
6,174 |
|
|
897 |
|
|
Prepaid
rent |
6,549 |
|
|
(43,153 |
) |
|
(34,897 |
) |
|
(5,070 |
) |
|
Inventories |
2,731 |
|
|
167 |
|
|
(1,748 |
) |
|
(254 |
) |
|
Amounts
due from related parties |
(824 |
) |
|
(4,537 |
) |
|
2,835 |
|
|
412 |
|
|
Other
current assets |
4,544 |
|
|
(11,803 |
) |
|
(7,134 |
) |
|
(1,036 |
) |
|
Other
assets |
(4,368 |
) |
|
5,362 |
|
|
(21,002 |
) |
|
(3,051 |
) |
|
Accounts
payable |
(3,321 |
) |
|
39,690 |
|
|
(39,822 |
) |
|
(5,785 |
) |
|
Amounts
due to related parties |
749 |
|
|
1,796 |
|
|
(700 |
) |
|
(102 |
) |
|
Salary
and welfare payables |
(68,012 |
) |
|
111,005 |
|
|
(104,752 |
) |
|
(15,219 |
) |
|
Deferred
revenue |
97,110 |
|
|
(89,742 |
) |
|
(19,232 |
) |
|
(2,794 |
) |
|
Accrued
expenses and other current liabilities |
39,119 |
|
|
3,665 |
|
|
107,023 |
|
|
15,548 |
|
|
Income
tax payable |
(13,905 |
) |
|
(11,563 |
) |
|
(46,442 |
) |
|
(6,747 |
) |
|
Other
long-term liabilities |
15,766 |
|
|
14,339 |
|
|
8,583 |
|
|
1,247 |
|
|
Net cash
provided by operating activities |
324,895 |
|
|
442,470 |
|
|
178,489 |
|
|
25,930 |
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
Purchases
of property and equipment |
(179,440 |
) |
|
(109,231 |
) |
|
(185,116 |
) |
|
(26,894 |
) |
|
Purchases
of intangibles |
(3,868 |
) |
|
(3,517 |
) |
|
(826 |
) |
|
(120 |
) |
|
Amount
received as a result of government zoning |
2,099 |
|
|
- |
|
|
- |
|
|
- |
|
|
Acquisitions, net of cash received |
3,762 |
|
|
(1,683 |
) |
|
(765,023 |
) |
|
(111,144 |
) |
|
Purchase
of long-term investments |
(71,252 |
) |
|
(152,321 |
) |
|
(78,609 |
) |
|
(11,420 |
) |
|
Proceeds
from maturity/sale of long-term investments |
10,288 |
|
|
- |
|
|
38,613 |
|
|
5,610 |
|
|
Payment
for shareholder loan to joint venture |
(34,650 |
) |
|
(1,214 |
) |
|
(75,980 |
) |
|
(11,038 |
) |
|
Proceeds
from sale of short-term investments |
75,795 |
|
|
- |
|
|
- |
|
|
- |
|
|
Payment
for the origination of loan receivables |
(8,000 |
) |
|
- |
|
|
(3,400 |
) |
|
(494 |
) |
|
Proceeds
from collection of loan receivables |
8,886 |
|
|
25,622 |
|
|
5,812 |
|
|
844 |
|
|
Decrease
in restricted cash |
- |
|
|
1,657 |
|
|
- |
|
|
- |
|
|
Net cash used in
investing activities |
(196,380 |
) |
|
(240,687 |
) |
|
(1,064,529 |
) |
|
(154,656 |
) |
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Net
proceeds from issuance of ordinary shares upon exercise of
options |
4,251 |
|
|
3,668 |
|
|
2,190 |
|
|
318 |
|
|
Proceeds
from short-term debt |
281,719 |
|
|
- |
|
|
1,000 |
|
|
145 |
|
|
Repayment
of short-term debt |
- |
|
|
- |
|
|
(1,000 |
) |
|
(145 |
) |
|
Funds
advanced from noncontrolling interest holders |
4,000 |
|
|
7,453 |
|
|
22,739 |
|
|
3,304 |
|
|
Repayment
of funds advanced from noncontrolling interest holders |
(100 |
) |
|
(400 |
) |
|
- |
|
|
- |
|
|
Acquisition of noncontrolling interest |
- |
|
|
(4,083 |
) |
|
(3,750 |
) |
|
(545 |
) |
|
Contribution from noncontrolling interest holders |
34,059 |
|
|
10,500 |
|
|
310 |
|
|
45 |
|
|
Dividend
paid to noncontrolling interest holders |
(890 |
) |
|
(612 |
) |
|
(650 |
) |
|
(94 |
) |
|
Dividend
paid |
(276,262 |
) |
|
- |
|
|
- |
|
|
- |
|
|
Excess
tax benefit from share-based compensation |
3,009 |
|
|
11,470 |
|
|
7,525 |
|
|
1,093 |
|
|
Net cash provided by
financing activities |
49,786 |
|
|
27,996 |
|
|
28,364 |
|
|
4,121 |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
(1,379 |
) |
|
3,397 |
|
|
(1,839 |
) |
|
(267 |
) |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
176,922 |
|
|
233,176 |
|
|
(859,515 |
) |
|
(124,872 |
) |
|
Cash and cash
equivalents at the beginning of the period |
1,237,838 |
|
|
3,001,831 |
|
|
3,235,007 |
|
|
469,986 |
|
|
Cash and cash
equivalents at the end of the period |
1,414,760 |
|
|
3,235,007 |
|
|
2,375,492 |
|
|
345,114 |
|
|
China Lodging Group,
Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended March 31, 2017 |
|
GAAP Result |
|
% of Net Revenues |
|
Share-based Compensation |
|
% of Net Revenues |
|
Non-GAAP Result |
|
% of Net Revenues |
|
RMB |
|
|
|
RMB |
|
|
|
RMB |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating
costs |
1,198,962 |
|
75.3 |
% |
|
4,672 |
|
0.3 |
% |
|
1,194,290 |
|
75.0 |
% |
Other operating
costs |
1,933 |
|
0.1 |
% |
|
- |
|
0.0 |
% |
|
1,933 |
|
0.1 |
% |
Selling and marketing
expenses |
34,268 |
|
2.2 |
% |
|
287 |
|
0.0 |
% |
|
33,981 |
|
2.2 |
% |
General and
administrative expenses |
165,343 |
|
10.4 |
% |
|
10,840 |
|
0.7 |
% |
|
154,503 |
|
9.7 |
% |
Pre-opening
expenses |
24,112 |
|
1.5 |
% |
|
- |
|
0.0 |
% |
|
24,112 |
|
1.5 |
% |
Total operating costs
and expenses |
1,424,618 |
|
89.5 |
% |
|
15,799 |
|
1.0 |
% |
|
1,408,819 |
|
88.5 |
% |
Income from
operations |
167,343 |
|
10.5 |
% |
|
15,799 |
|
1.0 |
% |
|
183,142 |
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, 2017 |
|
GAAP Result |
|
% of Net Revenues |
|
Share-based Compensation |
|
% of Net Revenues |
|
Non-GAAP Result |
|
% of Net Revenues |
|
US$ |
|
|
|
US$ |
|
|
|
US$ |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating
costs |
174,187 |
|
75.3 |
% |
|
679 |
|
0.3 |
% |
|
173,508 |
|
75.0 |
% |
Other operating
costs |
281 |
|
0.1 |
% |
|
- |
|
0.0 |
% |
|
281 |
|
0.1 |
% |
Selling and marketing
expenses |
4,978 |
|
2.2 |
% |
|
42 |
|
0.0 |
% |
|
4,936 |
|
2.2 |
% |
General and
administrative expenses |
24,021 |
|
10.4 |
% |
|
1,574 |
|
0.7 |
% |
|
22,447 |
|
9.7 |
% |
Pre-opening
expenses |
3,503 |
|
1.5 |
% |
|
- |
|
0.0 |
% |
|
3,503 |
|
1.5 |
% |
Total operating costs
and expenses |
206,970 |
|
89.5 |
% |
|
2,295 |
|
1.0 |
% |
|
204,675 |
|
88.5 |
% |
Income from
operations |
24,312 |
|
10.5 |
% |
|
2,295 |
|
1.0 |
% |
|
26,607 |
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, 2016 |
|
GAAP Result |
|
% of Net Revenues |
|
Share-based Compensation |
|
% of Net Revenues |
|
Non-GAAP Result |
|
% of Net Revenues |
|
RMB |
|
|
|
RMB |
|
|
|
RMB |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating
costs |
1,264,602 |
|
75.7 |
% |
|
3,738 |
|
0.2 |
% |
|
1,260,864 |
|
75.5 |
% |
Other operating
costs |
2,319 |
|
0.1 |
% |
|
- |
|
0.0 |
% |
|
2,319 |
|
0.1 |
% |
Selling and marketing
expenses |
46,142 |
|
2.8 |
% |
|
52 |
|
0.0 |
% |
|
46,090 |
|
2.8 |
% |
General and
administrative expenses |
143,434 |
|
8.6 |
% |
|
8,737 |
|
0.5 |
% |
|
134,697 |
|
8.1 |
% |
Pre-opening
expenses |
19,747 |
|
1.2 |
% |
|
- |
|
0.0 |
% |
|
19,747 |
|
1.2 |
% |
Total operating costs
and expenses |
1,476,244 |
|
88.4 |
% |
|
12,527 |
|
0.7 |
% |
|
1,463,717 |
|
87.7 |
% |
Income from
operations |
185,718 |
|
11.1 |
% |
|
12,527 |
|
0.7 |
% |
|
198,245 |
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, 2016 |
|
GAAP Result |
|
% of Net Revenues |
|
Share-based Compensation |
|
% of Net Revenues |
|
Non-GAAP Result |
|
% of Net Revenues |
|
RMB |
|
|
|
RMB |
|
|
|
RMB |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating
costs |
1,200,459 |
|
83.5 |
% |
|
2,744 |
|
0.2 |
% |
|
1,197,715 |
|
83.3 |
% |
Other operating
costs |
- |
|
0.0 |
% |
|
- |
|
0.0 |
% |
|
- |
|
0.0 |
% |
Selling and marketing
expenses |
33,055 |
|
2.3 |
% |
|
232 |
|
0.0 |
% |
|
32,823 |
|
2.3 |
% |
General and
administrative expenses |
106,607 |
|
7.4 |
% |
|
11,887 |
|
0.8 |
% |
|
94,720 |
|
6.6 |
% |
Pre-opening
expenses |
22,019 |
|
1.5 |
% |
|
- |
|
0.0 |
% |
|
22,019 |
|
1.5 |
% |
Total operating costs
and expenses |
1,362,140 |
|
94.7 |
% |
|
14,863 |
|
1.0 |
% |
|
1,347,277 |
|
93.7 |
% |
Income from
operations |
70,754 |
|
4.9 |
% |
|
14,863 |
|
1.0 |
% |
|
85,617 |
|
5.9 |
% |
China Lodging Group,
Limited |
Unaudited
Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended |
|
March 31, 2016 |
|
December 31, 2016 |
|
March 31, 2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands, except per share and per ADS data) |
|
Net income attributable
to China Lodging Group, Limited (GAAP) |
69,388 |
|
|
125,858 |
|
|
148,083 |
|
|
21,513 |
|
Share-based
compensation expenses |
14,863 |
|
|
12,527 |
|
|
15,799 |
|
|
2,295 |
|
Adjusted net income
attributable to China Lodging Group, Limited (non-GAAP) |
84,251 |
|
|
138,385 |
|
|
163,882 |
|
|
23,808 |
|
|
Earnings per share
(GAAP) |
|
Basic |
0.26 |
|
|
0.45 |
|
|
0.53 |
|
|
0.08 |
|
Diluted |
0.25 |
|
|
0.44 |
|
|
0.52 |
|
|
0.07 |
|
|
|
Earnings per ADS
(GAAP) |
|
Basic |
1.03 |
|
|
1.81 |
|
|
2.13 |
|
|
0.31 |
|
Diluted |
1.01 |
|
|
1.76 |
|
|
2.06 |
|
|
0.30 |
|
|
|
Adjusted earnings per
share (non-GAAP) |
|
|
Basic |
0.31 |
|
|
0.50 |
|
|
0.59 |
|
|
0.09 |
|
Diluted |
0.31 |
|
|
0.48 |
|
|
0.57 |
|
|
0.08 |
|
|
|
|
|
|
|
|
|
Adjusted earnings per
ADS (non-GAAP) |
|
|
|
|
|
|
|
Basic |
1.25 |
|
|
1.99 |
|
|
2.35 |
|
|
0.34 |
|
Diluted |
1.22 |
|
|
1.94 |
|
|
2.28 |
|
|
0.33 |
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computation |
|
Basic |
269,131 |
|
|
277,473 |
|
|
278,472 |
|
|
278,472 |
|
Diluted |
275,949 |
|
|
285,887 |
|
|
287,313 |
|
|
287,313 |
|
|
|
Quarter Ended |
|
March 31, 2016 |
|
December 31, 2016 |
|
March 31, 2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands) |
|
Net income
attributable to China Lodging Group, Limited (GAAP) |
69,388 |
|
|
125,858 |
|
|
148,083 |
|
|
21,513 |
|
Interest income |
(9,801 |
) |
|
(22,939 |
) |
|
(18,332 |
) |
|
(2,663 |
) |
Interest expense |
3,067 |
|
|
2,289 |
|
|
2,358 |
|
|
343 |
|
Income tax expense |
27,713 |
|
|
87,745 |
|
|
52,343 |
|
|
7,605 |
|
Depreciation and
amortization |
170,478 |
|
|
173,826 |
|
|
173,204 |
|
|
25,163 |
|
EBITDA
(non-GAAP) |
260,845 |
|
|
366,779 |
|
|
357,656 |
|
|
51,961 |
|
Share-based
Compensation |
14,863 |
|
|
12,527 |
|
|
15,799 |
|
|
2,295 |
|
Adjusted EBITDA
(non-GAAP) |
275,708 |
|
|
379,306 |
|
|
373,455 |
|
|
54,256 |
|
China Lodging Group, Limited |
Operational
Data |
|
|
|
|
As of |
|
March 31, |
December
31, |
March 31, |
|
2016 |
2016 |
2017 |
Total hotels in
operation: |
2,989 |
|
3,269 |
|
3,336 |
|
Leased
and owned hotels (1) |
627 |
|
624 |
|
620 |
|
Manachised hotels |
2,189 |
|
2,471 |
|
2,535 |
|
Franchised hotels |
173 |
|
174 |
|
181 |
|
Total hotel rooms in
operation |
304,428 |
|
331,347 |
|
335,900 |
|
Leased
and owned hotels |
77,263 |
|
78,160 |
|
78,012 |
|
Manachised hotels |
209,944 |
|
237,094 |
|
241,251 |
|
Franchised hotels |
17,221 |
|
16,093 |
|
16,637 |
|
Number of cities |
356 |
|
367 |
|
369 |
|
|
|
|
|
(1) including 7 owned
hotels under ibis brand. |
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended |
|
March 31, |
December
31, |
March 31, |
|
2016 |
2016 |
2017 |
Occupancy rate (as a
percentage) |
|
|
|
Leased
and owned hotels |
82.2 |
% |
85.5 |
% |
85.0 |
% |
Manachised hotels |
80.8 |
% |
85.4 |
% |
84.6 |
% |
Franchised hotels |
61.9 |
% |
68.1 |
% |
65.6 |
% |
Blended |
80.4 |
% |
84.7 |
% |
83.9 |
% |
Average daily room rate
(in RMB) |
|
|
|
Leased
and owned hotels |
193 |
|
211 |
|
204 |
|
Manachised hotels |
165 |
|
178 |
|
174 |
|
Franchised hotels |
169 |
|
180 |
|
180 |
|
Blended |
172 |
|
186 |
|
182 |
|
RevPAR (in RMB) |
|
|
|
Leased
and owned hotels |
159 |
|
181 |
|
174 |
|
Manachised hotels |
133 |
|
152 |
|
147 |
|
Franchised hotels |
105 |
|
123 |
|
118 |
|
Blended |
139 |
|
158 |
|
152 |
|
|
|
|
|
|
|
|
|
Same-hotel Operational Data: like-for-like performance for
hotels in operation for at least 18 months during the current
quarter |
|
|
|
|
|
As of and for the quarter ended |
|
|
March 31, |
|
|
2016 |
2017 |
|
Total |
2,380 |
|
2,380 |
|
|
Leased
and owned hotels |
579 |
|
579 |
|
|
Manachised and franchised hotels |
1,801 |
|
1,801 |
|
|
Occupancy rate (as a
percentage) |
83.3 |
% |
86.6 |
% |
|
Average daily room rate
(in RMB) |
172 |
|
175 |
|
|
RevPAR (in RMB) |
143 |
|
151 |
|
|
Hotel breakdown
by segment |
|
|
|
|
|
|
|
Number of hotels in operation |
|
|
Net added |
As of |
|
|
in Q1 2017 |
March 31, 2017 |
|
Economy
hotels |
39 |
|
2,852 |
|
|
HanTing
Hotel |
22 |
|
2,203 |
|
|
Leased
and owned hotels |
(8 |
) |
478 |
|
|
Manachised hotels |
29 |
|
1,723 |
|
|
Franchised hotels |
1 |
|
2 |
|
|
Hi
Inn |
12 |
|
387 |
|
|
Leased
and owned hotels |
|
36 |
|
|
Manachised hotels |
12 |
|
306 |
|
|
Franchised hotels |
|
45 |
|
|
Elan
Hotel |
3 |
|
188 |
|
|
Manachised hotels |
2 |
|
151 |
|
|
Franchised hotels |
1 |
|
37 |
|
|
ibis
Hotel |
2 |
|
74 |
|
|
Leased
and owned hotels |
|
14 |
|
|
Manachised hotels |
|
12 |
|
|
Franchised hotels |
2 |
|
48 |
|
|
Midscale and upscale hotels |
28 |
|
484 |
|
|
JI
Hotel |
20 |
|
304 |
|
|
Leased
and owned hotels |
3 |
|
84 |
|
|
Manachised hotels |
16 |
|
217 |
|
|
Franchised hotels |
1 |
|
3 |
|
|
Starway
Hotel |
5 |
|
141 |
|
|
Leased
and owned hotels |
|
2 |
|
|
Manachised hotels |
5 |
|
101 |
|
|
Franchised hotels |
|
38 |
|
|
Joya
Hotel |
|
6 |
|
|
Leased
and owned hotels |
|
3 |
|
|
Manachised hotels |
|
3 |
|
|
Manxin
Hotels & Resorts |
1 |
|
3 |
|
|
Leased
and owned hotels |
|
|
|
Manachised hotels |
|
2 |
|
|
Franchised hotels |
1 |
|
1 |
|
|
ibis
Styles Hotel |
|
|
10 |
|
|
Manachised hotels |
(1 |
) |
6 |
|
|
Franchised hotels |
1 |
|
4 |
|
|
Mercure
Hotel |
1 |
|
16 |
|
|
Leased
and owned hotels |
|
2 |
|
|
Manachised hotels |
1 |
|
13 |
|
|
Franchised hotels |
|
1 |
|
|
Novotel
Hotel |
|
2 |
|
|
Leased
and owned hotels |
|
|
|
Manachised hotels |
|
1 |
|
|
Franchised hotels |
|
1 |
|
|
Grand
Mercure |
1 |
|
2 |
|
|
Leased
and owned hotels |
1 |
|
1 |
|
|
Franchised hotels |
|
1 |
|
|
Total |
67 |
|
3,336 |
|
|
Same-hotel operational data by segment |
|
|
|
|
|
|
|
|
|
|
|
Number of hotels in operation |
Same-hotel RevPAR |
|
Same-hotel ADR |
|
Same-hotel Occupancy |
|
|
As of |
For the quarter ended |
|
For the quarter ended |
|
For the quarter ended |
|
|
March 31, |
March 31, |
yoy change |
March 31, |
yoy change |
March 31, |
yoy change |
|
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
|
2017 |
|
Economy hotels |
2,144 |
2,144 |
133 |
139 |
5.0 |
% |
159 |
160 |
0.8 |
% |
84 |
% |
87 |
% |
3.5 |
% |
Leased
and owned hotels |
503 |
503 |
139 |
147 |
5.7 |
% |
167 |
169 |
0.9 |
% |
83 |
% |
87 |
% |
3.9 |
% |
Manachised and franchised hotels |
1,641 |
1,641 |
130 |
137 |
4.7 |
% |
155 |
156 |
0.8 |
% |
84 |
% |
87 |
% |
3.3 |
% |
Midscale and upscale hotels |
236 |
236 |
214 |
233 |
9.2 |
% |
265 |
284 |
6.9 |
% |
81 |
% |
82 |
% |
1.7 |
% |
Leased
and owned hotels |
76 |
76 |
257 |
279 |
8.9 |
% |
298 |
324 |
8.8 |
% |
86 |
% |
86 |
% |
0.1 |
% |
Manachised and franchised hotels |
160 |
160 |
182 |
200 |
9.5 |
% |
239 |
252 |
5.4 |
% |
76 |
% |
79 |
% |
3.0 |
% |
Total |
2,380 |
2,380 |
143 |
151 |
5.8 |
% |
172 |
175 |
1.8 |
% |
83 |
% |
87 |
% |
3.3 |
% |
Contact Information
Tel: +86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com
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