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 unaudited financial results for
the second quarter ended June 30, 2017.
Second Quarter of 2017 Operational
Highlights
- During the second quarter of 2017, China Lodging Group opened
272 hotels, including 72 leased (“leased-and-operated”) hotels and
200 manachised (“franchised-and-managed”) hotels and franchised
hotels. These newly-opened hotels included 140 hotels (69 leased
and 71 manachised and franchised hotels) from Crystal Orange Hotel
Holdings Limited ("Crystal Orange")3. The Company closed 6 leased
hotels and 61 manachised and franchised hotels during the
quarter.The Company closed a total of 89 hotels during the first
half of 2017, mainly due to:a) As part of the Company’s
strategic focus to upgrade the products and services qualities, the
Company removed 31 of the manachised and franchised hotels from the
Company’s network for incompliances with the brand and operating
standards. These hotels mainly related to HanTing, Elan and Starway
brand. By removing hotels with lower qualities, the Company is able
to provide products with better qualities and consistent customer
experiences, which will help enhance both the brands and
profitability.b) We also closed 28 hotels due to property
related issues including rezoning and returning of military-owned
properties and expiry of leases.c) 30 hotels located mainly
in selected 3rd or lower tier cities were closed due to operating
losses. These loss making hotels were primarily under HanTing, Elan
and Hi Inn brands with average RevPAR lower than RMB90 and
therefore, the financial impact to the Company’s financial is not
significant.
- As of June 30, 2017, the Company had 686 leased and owned
hotels, 2,654 manachised hotels, and 201 franchised hotels in
operation in 369 cities. The number of hotel rooms in operation
totaled 359,530, an increase of 14.2% from a year ago. As of June
30, 2017, the Company had a total number of 612 hotels contracted
or under construction, including 30 leased hotels and 582
manachised and franchised hotels.
- The ADR, which is defined as the average daily rate for all
hotels in operation, was RMB199 in the second quarter of 2017,
compared with RMB184 in the second quarter of 2016 and RMB182 in
the previous quarter. The year-over-year increase of 7.9% was due
to both an increase in ADR of the mature hotels, as well as an
increase in the proportion of midscale and upscale hotels with
higher ADR in the Company’s brand mix. The sequential increase
resulted mainly from seasonality.
- The occupancy rate for all hotels in operation was 90.1% in the
second quarter of 2017, compared with 85.2% in the second quarter
of 2016 and 83.9% in the previous quarter. The year-over-year
increase of 4.9-percentage points due to improved performance
across all brands as driven by strong travel demand and increasing
popularity of the Company’s brands. The sequential increase
resulted mainly from seasonality.
- RevPAR, defined as revenue per available room for all hotels in
operation, was RMB179 in the second quarter of 2017, compared with
RMB157 in the second quarter of 2016 and RMB152 in the previous
quarter. The year-over-year increase of 14.0% was attributable to
both higher ADR and occupancy. The sequential increase resulted
mainly from seasonality.
- For all hotels which had been in operation for at least 18
months, the same-hotel RevPAR was RMB175 for the second quarter of
2017, representing an 8.3% increase from RMB162 for the second
quarter of 2016, with a 3.0% increase in ADR and a
4.5-percentage-point increase in occupancy rate. The midscale and
upscale hotels registered a 9.9% same-hotel RevPAR improvement,
driven by a 6.1% increase in ADR and a 3.1-percentage-point
increase in occupancy rate. The economy hotels also registered a
7.7% same-hotel RevPAR improvement, driven by a 2.2% increase in
ADR and a 4.8-percentage-point increase in occupancy rate.
- As of June 30, 2017, the Company’s loyalty program had
approximately 88 million members, who contributed approximately 76%
of room nights sold during the second quarter of 2017. In the
second quarter of 2017, approximately 87% of room nights were sold
through the Company’s own channels. The strong leisure travel
demands as well as the expansion of our newly launched midscale
brands attract increasing bookings from third party channels.
“Thanks to the better-than-expected hotel
performance, our various efforts to improve the quality of our
economic hotels, and midscale and upscale expansion strategy, we
have once again achieved a historically high year-over-year growth
in our same hotel RevPAR. “We are confident that the consumption
upgrade in China will continue to feed into the growing demand for
mid-and up- scale hotels. Midscale and upscale hotel rooms
contribute 24% and 57% of our hotels in operation and in pipeline,
respectively. We are well positioned to capture growth opportunity
in consumption upgrade, and look forward to creating more value for
our shareholders.” said Ms. Jenny Zhang, Chief Executive Officer of
China Lodging Group.
“As of May 25, 2017, we closed the acquisition
of Crystal Orange, which further strengthens our leading position
in the midscale hotel segment and also enriches our talent pool.
The integration process on the reservation platform and operations
have been progressing as planned. Mr. Wu Hai, the founder and
CEO of Crystal Orange added to his responsibilities the role of
Executive Vice President of High-End Product Innovation in Huazhu.
He will be responsible for the brand strategy and promotion,
product design and development for our high-end brands,” Ms. Zhang
added.
Second Quarter of 2017 Financial
Results
(RMB in
thousands) |
Q2 2016 |
|
Q1 2017 |
Q2 2017 |
Revenues: |
|
|
|
Leased
and owned hotels |
1,329,736 |
|
1,223,476 |
1,543,117 |
Manachised and franchised hotels |
351,831 |
|
361,362 |
435,552 |
Others |
8,994 |
|
8,268 |
10,512 |
Total
revenues |
1,690,561 |
|
1,593,106 |
1,989,181 |
Less:
business tax and related taxes |
(33,642 |
) |
- |
- |
Net
revenues |
1,656,919 |
|
1,593,106 |
1,989,181 |
Net
revenues from leased and owned hotels |
1,303,274 |
|
1,223,476 |
1,543,117 |
Net
revenues from manachised and franchised hotels |
344,830 |
|
361,362 |
435,552 |
Others |
8,815 |
|
8,268 |
10,512 |
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 Q2 2016 are reallocated to reflect net revenues for each
business. |
Net revenues for the second
quarter of 2017 were RMB1,989.2 million (US$293.4 million),
representing a 20.1% year-over-year increase and a 24.9% sequential
increase. The year-over-year increase was primarily due to the
Company’s hotel network expansion, improved blended RevPAR and the
acquisition of Crystal Orange. Since the acquisition completion
date May 25 until June 30, 2017, the net revenues consolidated from
Crystal Orange were RMB119.1 million, contributing 7.2 percentage
points to the year-over-year net revenues growth.
Net revenues from leased and owned
hotels for the second quarter of 2017 were RMB1,543.1
million (US$227.6 million), representing an 18.4% year-over-year
increase and a 26.1% sequential increase.
Net revenues from manachised and
franchised hotels for the second quarter of 2017 were
RMB435.6 million (US$64.2 million), representing a 26.3%
year-over-year increase and a 20.5% sequential increase. Net
revenues from manachised and franchised hotels accounted for 21.9%
of the Company’s net revenues in the second quarter of 2017, up
from 20.8% 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 outside customers, totaling RMB10.5 million (US$1.6
million) in the second quarter of 2017.
(RMB in
thousands) |
Q2 2016 |
|
Q1 2017 |
|
Q2 2017 |
Operating costs and expenses: |
|
|
|
|
|
Hotel
operating costs |
1,217,412 |
|
1,198,962 |
|
1,348,270 |
Other
operating costs |
3,029 |
|
1,933 |
|
3,739 |
Selling
and marketing expenses |
36,064 |
|
34,268 |
|
45,262 |
General
and administrative expenses |
118,868 |
|
165,343 |
|
135,689 |
Pre-opening expenses |
13,371 |
|
24,112 |
|
43,134 |
Total
operating costs and expenses |
1,388,744 |
|
1,424,618 |
|
1,576,094 |
Hotel operating costs for the
second quarter of 2017 were RMB1,348.3 million (US$198.9 million),
compared to RMB1,217.4 million in the second quarter of 2016 and
RMB1,199.0 million in the previous quarter, representing a 10.7%
year-over-year increase and a 12.5% sequential increase. Total
hotel operating costs excluding share-based compensation expenses
(non-GAAP) for the second quarter of 2017 were RMB1,343.8 million
(US$198.2 million), representing 67.6% of net revenues, compared to
73.3% for the second quarter in 2016 and 75.0% for the previous
quarter. The year-over-year and decrease in the percentage
was mainly attributable to the improved blended RevPAR and
increased portion of manachised-and-franchised revenue. The
sequential decrease was mainly due to seasonality.
Selling and marketing expenses
for the second quarter of 2017 were RMB45.3 million (US$6.7
million), compared to RMB36.1 million in the second quarter of 2016
and RMB34.3 million in the previous quarter. Selling and marketing
expenses excluding share-based compensation expenses (non-GAAP) for
the second quarter of 2017 were RMB44.9 million (US$6.6 million),
or 2.3% of net revenues, compared to 2.2% for the second quarter of
2016 and for the previous quarter.
General and administrative
expenses for the second quarter of 2017 were RMB135.7
million (US$20.0 million), compared to RMB118.9 million in the
second quarter of 2016 and RMB165.3 million in the previous
quarter. General and administrative expenses excluding share-based
compensation expenses (non-GAAP) for the second quarter of 2017
were RMB124.5 million (US$18.4 million), representing 6.2% of net
revenues, compared with 6.4% of net revenues in the second quarter
of 2016 and 9.7% in the previous quarter. The sequential decrease
was mainly due to one-off Crystal Orange acquisition transaction
costs amounting to RMB45.2 million in the previous quarter.
Pre-opening expenses for the
second quarter of 2017 were RMB43.1 million (US$6.4 million),
representing a 222.6% year-over-year increase and a 78.9%
sequential increase. The year-over-year and sequential increases in
percentage were mainly due to more midscale or upscale leased
hotels were under construction in the second quarter of 2017.
Income from operations for the
second quarter of 2017 was RMB442.7 million (US$65.3 million),
compared to RMB263.4 million in the second quarter of 2016 and
RMB167.3 million in the previous quarter. The operating margin,
defined as income from operations as percentage of net revenues,
for the second quarter of 2017 was 22.3%, compared with 15.9% in
the second quarter of 2016 and 10.5% in the previous quarter. The
improved year-over-year operating margin was mainly attributable to
the improved blended RevPAR.
Net income attributable to China Lodging
Group, Limited for the second quarter of 2017 was RMB389.6
million (US$57.5 million), as 19.6% of net revenues, compared to
RMB315.5 million, as 19.0% of net revenues in the second quarter of
2016 and RMB148.1 million, as 9.3% of net revenues in the previous
quarter. This demonstrated a 23.5% year-over-year increase and a
163.1% sequential increase. The year-over-year and sequential
increases were mainly attributable to the Company’s expanded hotel
network, the improved blended RevPAR, and the acquisition of
Crystal Orange. The net income in the second quarter of 2017
included an investment gain of RMB37.8 million, compared to
RMB105.8 million during the same period in 2016. Excluding the
investment gains, the increase would have been higher at 67.8%
year-over-year.
Basic and diluted earnings per
share/ADS. For the second quarter of 2017, basic earnings
per share were RMB1.40 (US$0.21) and diluted earnings per share
were RMB1.35 (US$0.20); basic earnings per ADS were RMB5.58
(US$0.82) and diluted earnings per ADS were RMB5.41 (US$0.80). For
the second quarter of 2017, excluding share-based compensation
expenses, adjusted basic earnings per share (non-GAAP) were RMB1.45
(US$0.21) and adjusted diluted earnings per share (non-GAAP) were
RMB1.41 (US$0.21); adjusted basic earnings per ADS (non-GAAP) were
RMB5.81 (US$0.86) and adjusted diluted earnings per ADS (non-GAAP)
were RMB5.63 (US$0.83).
EBITDA (non-GAAP) for the
second quarter of 2017 was RMB703.1 million (US$103.7 million), as
35.3% of net revenues, compared with RMB556.0 million, as 33.6% of
net revenues in the second quarter of 2016 and RMB357.7 million, as
22.5% of net revenues in the previous quarter. This demonstrated a
26.5% year-over-year increase and a 96.6% sequential increase.
Excluding the investment gains, the increase would have been higher
at 47.8% year-over-year.
Cash flow. Operating cash
inflow for the second quarter of 2017 was RMB806.0 million
(US$118.9 million). Investing cash outflow for the second quarter
of 2017 was RMB3,728.4 million (US$550.0 million).
Cash and cash equivalents and Restricted
cash. As of June 30, 2017, the Company had a total balance
of cash and cash equivalents and restricted cash of RMB3,447.9
million (US$508.6 million).
Debt financing. As of June 30,
2017, the Company had a total loan balance of RMB3,820.8 million
(US$563.6 million), including a syndicated loan of US$500 million
for the acquisition of Crystal Orange, which was drawn down in May
2017.
Guidance For the third
quarter of 2017, the Company expects net revenues to grow 30% to
34% year-over-year. For the full year of 2017, the Company raises
its net revenues growth range to 23% to 26%, given the
consolidation of Crystal Orange and better-than-expected
performance. Excluding the impact of the Crystal Orange
acquisition, the net revenues is expected to grow 13%-16% and
12%-15% for the third quarter and the full year of 2017,
respectively, up from the previous guidance of 10%-13% for the full
year of 2017.
Considering the interest expense and
amortization of intangible assets related to the acquisition, the
financial impact from Crystal Orange is expected to be negligible
in 2017, and will start to contribute to the bottom line in
2018.
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 7 a.m. ET,
Thursday, August 17, 2017 (or 7 p.m. on Thursday, August 17, 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 5760 9181. 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
August 24, 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 5760 9181.
The conference call will also be webcast live
over the Internet and can be accessed by all interested parties at
the Company’s website, http://ir.huazhu.com.
Use of Non-GAAP Financial
MeasuresTo 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 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.
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. As of June 30, 2017, the Company
had 3,541 hotels or 359,530 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, CitiGo Hotel, VUE Hotel,
Crystal Orange Hotel, Orange Hotel Select, Orange 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. The Company applies a consistent
standard and platform across all of its hotels. As of June 30,
2017, China Lodging Group operates 24 percent of its hotel rooms
under lease and ownership model, 76 percent under manachise and
franchise models.
For more information, please visit the Company’s
website: http://ir.huazhu.com.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995: The information in this
release contains forward-looking statements which involve risks and
uncertainties, 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 brands, 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$1.00=RMB6.7793 on June
30, 2017 as set forth in H.10 statistical release of the U.S.
Federal Reserve Board and available at
http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.2 Each
ADS represents four of the Company’s ordinary shares.
3 As of June 30, 2017, the Company is still in the process of
evaluating the purchase price allocation for Crystal Orange. Hence,
the financial results for the second quarter of 2017 is based on
the preliminary numbers and are subject to change upon
finalization.
—Financial Tables and Operational Data
Follow—
China Lodging Group, Limited |
Unaudited Condensed Consolidated Balance
Sheets |
|
|
December 31, 2016 |
June 30, 2017 |
|
RMB |
RMB |
US$ |
|
(in thousands) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
3,235,007 |
|
2,980,375 |
|
439,629 |
|
Restricted cash |
500 |
|
467,500 |
|
68,960 |
|
Accounts receivable, net |
141,649 |
|
163,737 |
|
24,152 |
|
Loan receivables |
22,410 |
|
65,885 |
|
9,719 |
|
Amounts due from related parties |
98,453 |
|
124,301 |
|
18,335 |
|
Prepaid rent |
446,127 |
|
502,447 |
|
74,115 |
|
Inventories |
21,606 |
|
33,239 |
|
4,903 |
|
Other current assets |
208,929 |
|
240,112 |
|
35,418 |
|
Total
current assets |
4,174,681 |
|
4,577,596 |
|
675,231 |
|
|
|
|
|
Property and equipment, net |
3,710,468 |
|
4,462,948 |
|
658,320 |
|
Intangible assets, net |
342,694 |
|
1,806,383 |
|
266,456 |
|
Land
use rights |
145,521 |
|
142,826 |
|
21,068 |
|
Long-term investments |
1,064,321 |
|
1,282,714 |
|
189,210 |
|
Goodwill |
171,504 |
|
2,136,710 |
|
315,181 |
|
Loan
receivables |
7,269 |
|
6,856 |
|
1,011 |
|
Other
assets |
200,492 |
|
345,655 |
|
50,988 |
|
Deferred tax assets |
176,414 |
|
241,795 |
|
35,667 |
|
Total
assets |
9,993,364 |
|
15,003,483 |
|
2,213,132 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Short-term debt |
298,291 |
|
162,586 |
|
23,983 |
|
Long-term
debt, current portion |
- |
|
135 |
|
20 |
|
Accounts
payable |
584,731 |
|
600,330 |
|
88,553 |
|
Amounts
due to related parties |
11,058 |
|
9,606 |
|
1,417 |
|
Salary
and welfare payables |
274,259 |
|
246,335 |
|
36,336 |
|
Deferred
revenue |
749,793 |
|
799,238 |
|
117,894 |
|
Accrued
expenses and other current liabilities |
895,837 |
|
1,065,785 |
|
157,212 |
|
Income
tax payable |
152,112 |
|
195,137 |
|
28,784 |
|
Total
current liabilities |
2,966,081 |
|
3,079,152 |
|
454,199 |
|
|
|
|
|
Long-term debt |
- |
|
3,658,041 |
|
539,590 |
|
Deferred
rent |
1,023,843 |
|
1,242,292 |
|
183,248 |
|
Deferred
revenue |
166,963 |
|
167,241 |
|
24,669 |
|
Other
long-term liabilities |
323,991 |
|
350,273 |
|
51,668 |
|
Deferred
tax liabilities |
96,329 |
|
458,760 |
|
67,671 |
|
Total
liabilities |
4,577,207 |
|
8,955,759 |
|
1,321,045 |
|
|
|
|
|
|
|
Equity: |
|
|
|
Ordinary
shares |
204 |
|
204 |
|
30 |
|
Treasury
shares |
(107,331 |
) |
(107,331 |
) |
(15,832 |
) |
Additional paid-in capital |
3,699,056 |
|
3,753,504 |
|
553,671 |
|
Retained
earnings |
1,812,174 |
|
2,349,896 |
|
346,628 |
|
Accumulated other comprehensive income (loss) |
(4,503 |
) |
32,743 |
|
4,830 |
|
Total
China Lodging Group, Limited shareholders' equity |
5,399,600 |
|
6,029,016 |
|
889,327 |
|
Noncontrolling interest |
16,557 |
|
18,708 |
|
2,760 |
|
Total
equity |
5,416,157 |
|
6,047,724 |
|
892,087 |
|
Total
liabilities and equity |
9,993,364 |
|
15,003,483 |
|
2,213,132 |
|
China Lodging Group, Limited |
Unaudited Condensed Consolidated Statements of
Comprehensive Income |
|
|
Quarter Ended |
|
June 30, 2016 |
March 31, 2017 |
June 30, 2017 |
|
RMB |
RMB |
RMB |
US$ |
|
(in thousands, except per share and per ADS
data) |
Revenues: |
|
|
|
|
Leased
and owned hotels |
1,329,736 |
|
|
1,223,476 |
|
|
1,543,117 |
|
|
227,622 |
|
Manachised and franchised hotels |
351,831 |
|
|
361,362 |
|
|
435,552 |
|
|
64,247 |
|
Others |
8,994 |
|
|
8,268 |
|
|
10,512 |
|
|
1,551 |
|
Total
revenues |
1,690,561 |
|
|
1,593,106 |
|
|
1,989,181 |
|
|
293,420 |
|
Less:
business tax and related taxes |
(33,642 |
) |
|
- |
|
|
- |
|
|
- |
|
Net
revenues |
1,656,919 |
|
|
1,593,106 |
|
|
1,989,181 |
|
|
293,420 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
operating costs: |
|
|
|
|
Rents |
(473,549 |
) |
|
(463,138 |
) |
|
(502,353 |
) |
|
(74,101 |
) |
Utilities |
(66,730 |
) |
|
(101,850 |
) |
|
(69,942 |
) |
|
(10,317 |
) |
Personnel
costs |
(275,206 |
) |
|
(280,316 |
) |
|
(329,025 |
) |
|
(48,534 |
) |
Depreciation and amortization |
(170,688 |
) |
|
(169,567 |
) |
|
(185,419 |
) |
|
(27,351 |
) |
Consumables, food and beverage |
(129,792 |
) |
|
(108,602 |
) |
|
(137,139 |
) |
|
(20,229 |
) |
Others |
(101,447 |
) |
|
(75,489 |
) |
|
(124,392 |
) |
|
(18,349 |
) |
Total
hotel operating costs |
(1,217,412 |
) |
|
(1,198,962 |
) |
|
(1,348,270 |
) |
|
(198,881 |
) |
Other
operating costs |
(3,029 |
) |
|
(1,933 |
) |
|
(3,739 |
) |
|
(551 |
) |
Selling
and marketing expenses |
(36,064 |
) |
|
(34,268 |
) |
|
(45,262 |
) |
|
(6,676 |
) |
General
and administrative expenses |
(118,868 |
) |
|
(165,343 |
) |
|
(135,689 |
) |
|
(20,015 |
) |
Pre-opening expenses |
(13,371 |
) |
|
(24,112 |
) |
|
(43,134 |
) |
|
(6,363 |
) |
Total
operating costs and expenses |
(1,388,744 |
) |
|
(1,424,618 |
) |
|
(1,576,094 |
) |
|
(232,486 |
) |
Other
operating income (expense), net |
(4,787 |
) |
|
(1,145 |
) |
|
29,619 |
|
|
4,369 |
|
Income
from operations |
263,388 |
|
|
167,343 |
|
|
442,706 |
|
|
65,303 |
|
Interest
income |
15,472 |
|
|
18,332 |
|
|
21,792 |
|
|
3,214 |
|
Interest
expense |
(3,541 |
) |
|
(2,358 |
) |
|
(15,870 |
) |
|
(2,341 |
) |
Other
income, net |
109,724 |
|
|
27,049 |
|
|
74,312 |
|
|
10,962 |
|
Foreign
exchange gain (loss) |
5,926 |
|
|
(5,378 |
) |
|
(4,577 |
) |
|
(675 |
) |
Income
before income taxes |
390,969 |
|
|
204,988 |
|
|
518,363 |
|
|
76,463 |
|
Income
tax expense |
(77,457 |
) |
|
(52,343 |
) |
|
(130,183 |
) |
|
(19,203 |
) |
Loss
from equity method investments |
(3,146 |
) |
|
(4,654 |
) |
|
(978 |
) |
|
(144 |
) |
Net
income |
310,366 |
|
|
147,991 |
|
|
387,202 |
|
|
57,116 |
|
Less:
net loss attributable to noncontrolling interest |
5,134 |
|
|
92 |
|
|
2,437 |
|
|
359 |
|
Net
income attributable to China Lodging Group, Limited |
315,500 |
|
|
148,083 |
|
|
389,639 |
|
|
57,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income |
|
|
|
|
Unrealized securities holding gains (losses), net of tax |
4,064 |
|
|
8,736 |
|
|
(13,511 |
) |
|
(1,993 |
) |
Reclassification of gains realized to net income, net of tax |
(55,018 |
) |
|
(3,737 |
) |
|
(1,545 |
) |
|
(228 |
) |
Foreign
currency translation adjustments, net of tax |
(6,003 |
) |
|
1,113 |
|
|
46,190 |
|
|
6,813 |
|
Comprehensive income |
253,409 |
|
|
154,103 |
|
|
418,336 |
|
|
61,708 |
|
Comprehensive loss attributable to noncontrolling interest |
5,134 |
|
|
92 |
|
|
2,437 |
|
|
359 |
|
Comprehensive income attributable to China Lodging Group,
Limited |
258,543 |
|
|
154,195 |
|
|
420,773 |
|
|
62,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
Basic |
1.14 |
|
|
0.53 |
|
|
1.40 |
|
|
0.21 |
|
Diluted |
1.11 |
|
|
0.52 |
|
|
1.35 |
|
|
0.20 |
|
|
|
|
|
|
Earnings
per ADS: |
|
|
|
|
Basic |
4.56 |
|
|
2.13 |
|
|
5.58 |
|
|
0.82 |
|
Diluted |
4.44 |
|
|
2.06 |
|
|
5.41 |
|
|
0.80 |
|
|
|
|
|
|
Weighted average number of shares used in computation: |
|
|
Basic |
276,496 |
|
|
278,472 |
|
|
279,101 |
|
|
279,101 |
|
Diluted |
284,009 |
|
|
287,313 |
|
|
288,316 |
|
|
288,316 |
|
|
|
|
|
|
China Lodging Group, Limited |
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
Quarter Ended |
|
June 30, 2016 |
March 31, 2017 |
June 30, 2017 |
|
RMB |
RMB |
RMB |
US$ |
|
(in thousands) |
Operating activities: |
|
|
|
|
Net income |
310,366 |
|
|
147,991 |
|
|
387,202 |
|
|
57,116 |
|
Adjustments to reconcile net income to net cash
provided by operating activities: |
Share-based compensation |
16,232 |
|
|
15,799 |
|
|
16,021 |
|
|
2,363 |
|
Depreciation and amortization |
174,952 |
|
|
173,204 |
|
|
189,210 |
|
|
27,910 |
|
Deferred taxes |
(3,789 |
) |
|
2,955 |
|
|
(916 |
) |
|
(135 |
) |
Bad debt expenses |
97 |
|
|
413 |
|
|
601 |
|
|
89 |
|
Deferred rent |
22,088 |
|
|
14,837 |
|
|
48,485 |
|
|
7,152 |
|
Loss from disposal of property and equipment |
6,841 |
|
|
4,291 |
|
|
11,388 |
|
|
1,680 |
|
Impairment loss |
33,222 |
|
|
- |
|
|
44,439 |
|
|
6,555 |
|
Loss from equity method investments |
3,146 |
|
|
4,654 |
|
|
978 |
|
|
144 |
|
Investment gain |
(105,849 |
) |
|
(27,016 |
) |
|
(37,773 |
) |
|
(5,572 |
) |
Excess tax benefit from share-based compensation |
(510 |
) |
|
(7,525 |
) |
|
(8,200 |
) |
|
(1,210 |
) |
Changes in operating assets and liabilities, net of
effect of acquisitions: |
Accounts receivable |
(20,809 |
) |
|
6,174 |
|
|
(4,904 |
) |
|
(723 |
) |
Prepaid rent |
33,528 |
|
|
(34,897 |
) |
|
3,770 |
|
|
556 |
|
Inventories |
1,590 |
|
|
(1,748 |
) |
|
(4,697 |
) |
|
(693 |
) |
Amounts due from related parties |
(3,954 |
) |
|
2,835 |
|
|
(3,553 |
) |
|
(524 |
) |
Other current assets |
(11,874 |
) |
|
(7,134 |
) |
|
4,362 |
|
|
643 |
|
Other assets |
410 |
|
|
(21,002 |
) |
|
(14,403 |
) |
|
(2,125 |
) |
Accounts payable |
23,867 |
|
|
(39,822 |
) |
|
1,432 |
|
|
211 |
|
Amounts due to related parties |
3,180 |
|
|
(700 |
) |
|
(752 |
) |
|
(111 |
) |
Salary and welfare payables |
44,827 |
|
|
(104,752 |
) |
|
57,289 |
|
|
8,451 |
|
Deferred revenue |
54,638 |
|
|
(19,232 |
) |
|
(14,048 |
) |
|
(2,072 |
) |
Accrued expenses and other current liabilities |
32,597 |
|
|
107,023 |
|
|
35,123 |
|
|
5,181 |
|
Income tax payable |
34,660 |
|
|
(46,442 |
) |
|
83,089 |
|
|
12,256 |
|
Other long-term liabilities |
10,648 |
|
|
8,583 |
|
|
11,886 |
|
|
1,753 |
|
Net
cash provided by operating activities |
660,104 |
|
|
178,489 |
|
|
806,029 |
|
|
118,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
Purchases of property and equipment |
(105,747 |
) |
|
(185,116 |
) |
|
(156,840 |
) |
|
(23,135 |
) |
Purchases of intangibles |
(1,049 |
) |
|
(826 |
) |
|
(247 |
) |
|
(36 |
) |
Acquisitions, net of cash received |
132,348 |
|
|
(765,023 |
) |
|
(2,980,236 |
) |
|
(439,608 |
) |
Proceeds from disposal of subsidiary and branch, net of cash
disposed |
(20,667 |
) |
|
- |
|
|
- |
|
|
- |
|
Purchase of long-term investments |
(52,422 |
) |
|
(78,609 |
) |
|
(216,917 |
) |
|
(31,997 |
) |
Proceeds from maturity/sale of long-term investments |
5,009 |
|
|
38,613 |
|
|
87,593 |
|
|
12,921 |
|
Payment for shareholder loan to joint venture |
(3,442 |
) |
|
(75,980 |
) |
|
(775 |
) |
|
(114 |
) |
Collection of shareholder loan from joint venture |
- |
|
|
- |
|
|
48,500 |
|
|
7,154 |
|
Purchase of short-term investments |
(25,400 |
) |
|
- |
|
|
- |
|
|
- |
|
Proceeds from maturity/sale of short-term investments |
451,616 |
|
|
- |
|
|
- |
|
|
- |
|
Payment for the origination of loan receivables |
- |
|
|
(3,400 |
) |
|
(47,000 |
) |
|
(6,933 |
) |
Proceeds from collection of loan receivables |
- |
|
|
5,812 |
|
|
4,526 |
|
|
668 |
|
Increase in restricted cash |
- |
|
|
- |
|
|
(467,000 |
) |
|
(68,886 |
) |
Net
cash provided by (used in) investing activities |
380,246 |
|
|
(1,064,529 |
) |
|
(3,728,396 |
) |
|
(549,966 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
Net proceeds from issuance of ordinary shares upon exercise of
options |
990 |
|
|
2,190 |
|
|
4,428 |
|
|
653 |
|
Proceeds from short-term debt |
|
1,000 |
|
|
135,488 |
|
|
19,986 |
|
Repayment of short-term debt |
- |
|
|
(1,000 |
) |
|
(266,764 |
) |
|
(39,350 |
) |
Proceeds from long-term debt |
- |
|
|
- |
|
|
3,633,174 |
|
|
535,922 |
|
Funds advanced from noncontrolling interest holders |
- |
|
|
22,739 |
|
|
13,950 |
|
|
2,058 |
|
Repayment of funds advanced from noncontrolling interest
holders |
(100 |
) |
|
- |
|
|
(1,677 |
) |
|
(247 |
) |
Acquisition of noncontrolling interest |
- |
|
|
(3,750 |
) |
|
- |
|
|
- |
|
Contribution from noncontrolling interest holders |
245 |
|
|
310 |
|
|
6,631 |
|
|
978 |
|
Dividends paid to noncontrolling interest holders |
(240 |
) |
|
(650 |
) |
|
(1,680 |
) |
|
(248 |
) |
Excess tax benefit from share-based compensation |
510 |
|
|
7,525 |
|
|
8,200 |
|
|
1,210 |
|
Net
cash provided by financing activities |
1,405 |
|
|
28,364 |
|
|
3,531,750 |
|
|
520,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
9,837 |
|
|
(1,839 |
) |
|
(4,500 |
) |
|
(666 |
) |
Net
increase (decrease) in cash and cash equivalents |
1,051,592 |
|
|
(859,515 |
) |
|
604,883 |
|
|
89,225 |
|
Cash
and cash equivalents at the beginning of the period |
1,414,760 |
|
|
3,235,007 |
|
|
2,375,492 |
|
|
350,404 |
|
Cash
and cash equivalents at the end of the period |
2,466,352 |
|
|
2,375,492 |
|
|
2,980,375 |
|
|
439,629 |
|
China Lodging Group, Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended June 30, 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 |
1,348,270 |
67.8 |
% |
4,502 |
0.2 |
% |
1,343,768 |
67.6 |
% |
Other
operating costs |
3,739 |
0.2 |
% |
- |
0.0 |
% |
3,739 |
0.2 |
% |
Selling and marketing expenses |
45,262 |
2.3 |
% |
371 |
0.0 |
% |
44,891 |
2.3 |
% |
General and administrative expenses |
135,689 |
6.8 |
% |
11,148 |
0.6 |
% |
124,541 |
6.2 |
% |
Pre-opening expenses |
43,134 |
2.2 |
% |
- |
0.0 |
% |
43,134 |
2.2 |
% |
Total
operating costs and expenses |
1,576,094 |
79.3 |
% |
16,021 |
0.8 |
% |
1,560,073 |
78.5 |
% |
Income from operations |
442,706 |
22.3 |
% |
16,021 |
0.8 |
% |
458,727 |
23.1 |
% |
|
|
|
|
|
|
|
|
Quarter Ended June 30, 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 |
198,881 |
67.8 |
% |
664 |
0.2 |
% |
198,217 |
67.6 |
% |
Other
operating costs |
551 |
0.2 |
% |
- |
0.0 |
% |
551 |
0.2 |
% |
Selling and marketing expenses |
6,676 |
2.3 |
% |
55 |
0.0 |
% |
6,621 |
2.3 |
% |
General and administrative expenses |
20,015 |
6.8 |
% |
1,644 |
0.6 |
% |
18,371 |
6.2 |
% |
Pre-opening expenses |
6,363 |
2.2 |
% |
- |
0.0 |
% |
6,363 |
2.2 |
% |
Total
operating costs and expenses |
232,486 |
79.3 |
% |
2,363 |
0.8 |
% |
230,123 |
78.5 |
% |
Income from operations |
65,303 |
22.3 |
% |
2,363 |
0.8 |
% |
67,666 |
23.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 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 |
1,217,412 |
73.5 |
% |
3,254 |
0.2 |
% |
1,214,158 |
73.3 |
% |
Other
operating costs |
3,029 |
0.2 |
% |
- |
0.0 |
% |
3,029 |
0.2 |
% |
Selling and marketing expenses |
36,064 |
2.2 |
% |
283 |
0.0 |
% |
35,781 |
2.2 |
% |
General and administrative expenses |
118,868 |
7.2 |
% |
12,695 |
0.8 |
% |
106,173 |
6.4 |
% |
Pre-opening expenses |
13,371 |
0.8 |
% |
- |
0.0 |
% |
13,371 |
0.8 |
% |
Total
operating costs and expenses |
1,388,744 |
83.9 |
% |
16,232 |
1.0 |
% |
1,372,512 |
82.9 |
% |
Income from operations |
263,388 |
15.9 |
% |
16,232 |
1.0 |
% |
279,620 |
16.9 |
% |
China Lodging Group, Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended |
|
June 30, 2016 |
March 31, 2017 |
June 30, 2017 |
|
RMB |
RMB |
RMB |
US$ |
|
(in thousands, except per share and per ADS
data) |
Net
income attributable to China Lodging Group, Limited (GAAP) |
315,500 |
|
148,083 |
|
389,639 |
|
57,475 |
|
Share-based compensation expenses |
16,232 |
|
15,799 |
|
16,021 |
|
2,363 |
|
Adjusted net income attributable to China Lodging Group, Limited
(non-GAAP) |
331,732 |
|
163,882 |
|
405,660 |
|
59,838 |
|
|
|
|
|
|
|
|
|
|
Earnings per share (GAAP) |
|
|
|
|
|
|
|
|
Basic |
1.14 |
|
0.53 |
|
1.40 |
|
0.21 |
|
Diluted |
1.11 |
|
0.52 |
|
1.35 |
|
0.20 |
|
|
|
|
|
|
Earnings per ADS (GAAP) |
|
|
|
|
Basic |
4.56 |
|
2.13 |
|
5.58 |
|
0.82 |
|
Diluted |
4.44 |
|
2.06 |
|
5.41 |
|
0.80 |
|
|
|
|
|
|
Adjusted earnings per share (non-GAAP) |
Basic |
1.20 |
|
0.59 |
|
1.45 |
|
0.21 |
|
Diluted |
1.17 |
|
0.57 |
|
1.41 |
|
0.21 |
|
|
|
|
|
|
Adjusted earnings per ADS (non-GAAP) |
Basic |
4.80 |
|
2.35 |
|
5.81 |
|
0.86 |
|
Diluted |
4.67 |
|
2.28 |
|
5.63 |
|
0.83 |
|
|
|
|
|
|
Weighted average number of shares used in
computation |
Basic |
276,496 |
|
278,472 |
|
279,101 |
279,101 |
|
Diluted |
284,009 |
|
287,313 |
|
288,316 |
288,316 |
|
|
|
|
|
|
|
Quarter Ended |
|
June 30, 2016 |
March 31, 2017 |
June 30, 2017 |
|
RMB |
RMB |
RMB |
US$ |
|
(in thousands) |
Net income attributable to China Lodging Group, Limited
(GAAP) |
315,500 |
|
148,083 |
|
389,639 |
|
57,475 |
|
Interest income |
(15,472 |
) |
(18,332 |
) |
(21,792 |
) |
(3,214 |
) |
Interest expense |
3,541 |
|
2,358 |
|
15,870 |
|
2,341 |
|
Income tax expense |
77,457 |
|
52,343 |
|
130,183 |
|
19,203 |
|
Depreciation and amortization |
174,952 |
|
173,204 |
|
189,210 |
|
27,910 |
|
EBITDA (non-GAAP) |
555,978 |
|
357,656 |
|
703,110 |
|
103,715 |
|
Share-based Compensation |
16,232 |
|
15,799 |
|
16,021 |
|
2,363 |
|
Adjusted EBITDA (non-GAAP) |
572,210 |
|
373,455 |
|
719,131 |
|
106,078 |
|
|
China Lodging Group, Limited |
|
|
Operational
Data |
|
|
|
|
|
As of |
|
|
June 30, |
March 31, |
June 30, |
|
|
2016 |
2017 |
2017 |
|
Total hotels in
operation: |
3,114 |
|
3,336 |
|
3,541 |
|
|
Leased and owned
hotels |
627 |
|
620 |
|
686 |
|
|
Manachised
hotels |
2,306 |
|
2,535 |
|
2,654 |
|
|
Franchised
hotels |
181 |
|
181 |
|
201 |
|
|
Total hotel rooms in
operation |
314,811 |
|
335,900 |
|
359,530 |
|
|
Leased and owned
hotels |
77,123 |
|
78,012 |
|
86,232 |
|
|
Manachised
hotels |
220,456 |
|
241,251 |
|
253,469 |
|
|
Franchised
hotels |
17,232 |
|
16,637 |
|
19,829 |
|
|
Number of cities |
357 |
|
369 |
|
369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
|
|
2016 |
2017 |
2017 |
|
Occupancy rate (as a
percentage) |
|
|
|
|
Leased and owned
hotels |
86.7 |
% |
85.0 |
% |
90.8 |
% |
|
Manachised
hotels |
85.5 |
% |
84.6 |
% |
90.8 |
% |
|
Franchised
hotels |
70.6 |
% |
65.6 |
% |
74.4 |
% |
|
Blended |
85.2 |
% |
83.9 |
% |
90.1 |
% |
|
Average daily room rate
(in RMB) |
|
|
|
|
Leased and owned
hotels |
210 |
|
204 |
|
232 |
|
|
Manachised
hotels |
175 |
|
174 |
|
188 |
|
|
Franchised
hotels |
181 |
|
180 |
|
203 |
|
|
Blended |
184 |
|
182 |
|
199 |
|
|
RevPAR (in RMB) |
|
|
|
|
Leased and owned
hotels |
182 |
|
174 |
|
211 |
|
|
Manachised
hotels |
150 |
|
147 |
|
171 |
|
|
Franchised
hotels |
128 |
|
118 |
|
151 |
|
|
Blended |
157 |
|
152 |
|
179 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
June 30, |
|
|
|
2016 |
2017 |
|
|
Total |
2,513 |
|
2,513 |
|
|
|
Leased
hotels |
577 |
|
577 |
|
|
|
Manachised and
franchised hotels |
1,936 |
|
1,936 |
|
|
|
Occupancy rate (as a
percentage) |
88.1 |
% |
92.6 |
% |
|
|
Average daily room rate
(in RMB) |
183 |
|
189 |
|
|
|
RevPAR (in RMB) |
162 |
|
175 |
|
|
|
Same-hotel operational data by segment |
|
|
|
|
|
|
|
|
|
|
|
|
Number of hotels in operation |
Same-hotel RevPAR |
|
Same-hotel ADR |
|
Same-hotel Occupancy |
|
|
|
As of |
For the quarter ended |
|
For the quarter ended |
|
For the quarter ended |
|
|
|
June 30, |
June 30, |
yoy change |
June 30, |
yoy change |
June 30, |
yoy change |
|
|
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
|
2017 |
|
|
Economy hotels |
2,250 |
2,250 |
148 |
160 |
7.7 |
% |
168 |
172 |
2.2 |
% |
88 |
% |
93 |
% |
4.8 |
% |
|
Leased
hotels |
498 |
498 |
156 |
170 |
8.5 |
% |
180 |
184 |
2.7 |
% |
87 |
% |
92 |
% |
4.9 |
% |
|
Manachised and
franchised hotels |
1,752 |
1,752 |
146 |
156 |
7.5 |
% |
164 |
167 |
2.1 |
% |
89 |
% |
94 |
% |
4.7 |
% |
|
Midscale and upscale hotels |
263 |
263 |
247 |
272 |
9.9 |
% |
288 |
306 |
6.1 |
% |
86 |
% |
89 |
% |
3.1 |
% |
|
Leased
hotels |
79 |
79 |
304 |
332 |
9.0 |
% |
333 |
357 |
7.3 |
% |
91 |
% |
93 |
% |
1.4 |
% |
|
Manachised and franchised hotels |
184 |
184 |
207 |
230 |
10.9 |
% |
253 |
267 |
5.4 |
% |
82 |
% |
86 |
% |
4.2 |
% |
|
Total |
2,513 |
2,513 |
162 |
175 |
8.3 |
% |
183 |
189 |
3.0 |
% |
88 |
% |
93 |
% |
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel breakdown by segment |
|
|
Number of hotels in operation |
|
Net added |
As of |
|
in Q2 2017 |
June 30, 2017 |
Economy
hotels |
41 |
|
2,893 |
HanTing Hotel |
10 |
|
2,213 |
Leased
hotels |
(5 |
) |
473 |
Manachised hotels |
13 |
|
1,736 |
Franchised hotels |
2 |
|
4 |
Hi Inn |
8 |
|
395 |
Leased
hotels |
(1 |
) |
35 |
Manachised hotels |
8 |
|
314 |
Franchised hotels |
1 |
|
46 |
Elan Hotel |
7 |
|
195 |
Manachised hotels |
11 |
|
162 |
Franchised hotels |
(4 |
) |
33 |
ibis Hotel |
6 |
|
80 |
Leased
hotels |
1 |
|
15 |
Manachised hotels |
6 |
|
18 |
Franchised hotels |
(1 |
) |
47 |
Orange Hotel |
10 |
|
10 |
Leased
hotels |
8 |
|
8 |
Manachised hotels |
1 |
|
1 |
Franchised hotels |
1 |
|
1 |
Midscale and upscale hotels |
164 |
|
648 |
JI Hotel |
23 |
|
327 |
Leased
hotels |
1 |
|
85 |
Manachised hotels |
22 |
|
239 |
Franchised hotels |
- |
|
3 |
Starway Hotel |
7 |
|
148 |
Leased
hotels |
- |
|
2 |
Manachised hotels |
11 |
|
112 |
Franchised hotels |
(4 |
) |
34 |
Joya Hotel |
- |
|
6 |
Leased
hotels |
- |
|
3 |
Manachised hotels |
- |
|
3 |
Manxin Hotels &
Resorts |
1 |
|
4 |
Leased
hotels |
1 |
|
1 |
Manachised hotels |
- |
|
2 |
Franchised hotels |
- |
|
1 |
ibis Styles Hotel |
- |
|
10 |
Manachised hotels |
- |
|
6 |
Franchised hotels |
4 |
Mercure Hotel |
2 |
|
18 |
Leased
hotels |
- |
|
2 |
Manachised hotels |
2 |
|
15 |
Franchised hotels |
- |
|
1 |
Novotel Hotel |
- |
|
2 |
Manachised hotels |
- |
|
1 |
Franchised hotels |
- |
|
1 |
Grand Mercure |
1 |
|
3 |
Leased
hotels |
- |
|
1 |
Franchised hotels |
1 |
|
2 |
Orange Select |
90 |
|
90 |
Leased
hotels |
42 |
|
42 |
Manachised hotels |
32 |
|
32 |
Franchised hotels |
16 |
|
16 |
Crystal Orange |
40 |
|
40 |
Leased
hotels |
19 |
|
19 |
Manachised hotels |
13 |
|
13 |
Franchised hotels |
8 |
|
8 |
Total |
205 |
|
3,541 |
|
|
|
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