China Lodging Group, Limited (NASDAQ:HTHT) (“China Lodging Group”
or the “Company”), a leading and fast-growing multi-brand hotel
group in China, today announced that it has entered into a
five-year Memorandum of Understanding (“MoU”) on September 8, 2017
with Oravel Stays Private Ltd. (“OYO”), India’s leading hospitality
company, to facilitate and strengthen collaboration to build a
global market leading hospitality business.
Under the MoU, China Lodging Group and OYO will
explore opportunities for mutual collaboration in four fields: (i)
knowledge and technology sharing, (ii) strategic alliances and
partnerships in various areas, including but not limited to local
sourcing and procurement and joint loyalty programs, (iii) new
venture partnership opportunities, and (iv) investment. As part of
this collaboration, China Lodging Group has agreed to make a US$
10m equity investment in OYO to become a minority shareholder (less
than 5%). China Lodging Group and OYO will also discuss
collaboration in a variety of other areas of mutual interests
pursuant to the MoU.
Speaking about the partnership, Jenny Zhang, CEO
– China Lodging Group, said, “We are delighted to announce our
strategic alliance with OYO. The MoU signifies the shared
aspirations of China Lodging Group and OYO to explore growing
opportunities in the global hospitality industry and to create
synergies by working together. The partnership will draw on the
strengths of China Lodging Group’s visionary and experienced
management team, market leadership through a multi-brand strategy,
extensive hotel operations expertise and strong loyalty program and
OYO’s advanced technologies in the hospitality industry that enable
transformation of hotel operations.”
Ritesh Agarwal, Founder & CEO – OYO, said,
“We are very excited about this partnership – both in terms of
potential opportunities and existing synergies through our
complementary strengths and capabilities. China Lodging Group has a
visionary and experienced leadership team and hotel operations
expertise especially in managing large properties. OYO is a new-age
technology company disrupting the hospitality industry with
category-leading capabilities of using technology to onboard and
transform existing supply, standardize operations and distribute
these through online and offline channels. Addressing consumers in
India and China – two of the world’s fastest-growing markets –
through our combined strengths opens up a very large and
significant growth
opportunity.”
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.
About OYOOYO is India’s largest
hospitality company operating in more than 230 cities across India,
Malaysia and Nepal. These include major metros, regional business
hubs, top leisure destinations as well as pilgrimage towns.
OYO was recently chosen as India’s Most
Promising Hotel Network (HolidayIQ Better Holiday Awards
2017). It was recognized by Business Today as among the Coolest
Startups in India (2016) and has been ranked by LinkedIn as one of
the top employee attractors in India two years in a row (2016,
2017). OYO is backed by leading investors, including
the SoftBank Group, Greenoak Capital, Sequoia
India, Lightspeed India and Hero Enterprise.
For more information, log on
to: https://www.oyorooms.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.
Contact InformationInvestor RelationsTel: +86 (21) 6195
9561Email: ir@huazhu.comhttp://ir.huazhu.com
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