China Lodging Completes Transaction With Crystal Orange Hotels
May 29 2017 - 4:00AM
China Lodging Group, Limited (NASDAQ:HTHT) (“China Lodging”, or the
“Company”), a leading and fast-growing multi-brand hotel group in
China, today announced that its wholly-owned subsidiary China
Lodging Holdings (HK) Limited had completed the transaction with
the shareholders of Crystal Orange Hotel Holdings Limited (“Crystal
Orange”) to acquire all of the equity interests of Crystal Orange
for an initial aggregate consideration of approximately RMB3.65
billion (the “Transaction”) on May 25, 2017. The Transaction has
obtained approval from the Antitrust Bureau of Ministry of Commerce
of China.
Upon closing, Crystal Orange’s hotel business has
become part of China Lodging’s network. This important strategic
acquisition will combine Crystal Orange’s unique positioning with
China Lodging’s extensive coverage and strong development
capability in China.
“We value Crystal Orange’s brand recognition and
postmodern design. Their style and positioning match perfectly with
China Lodging’s philosophy and brand portfolio. This transaction
enables both companies to offer their members more choices and
further strengthens China Lodging’s leading position as one of the
largest hotel groups in China,” said China Lodging’s Chief
Executive Officer, Ms. Jenny Zhang.
China Lodging’s management will revise the full
year 2017 guidance taking into consideration the financial impact
of the Transaction. More details on the financial impact of the
Transaction and revised full year 2017 guidance will be provided on
the Company’s earnings call for the second quarter of 2017. During
the earnings call for the first quarter of 2017, the Company
revised up its 2017 full year guidance for net revenues growth to
10% to 13% year-over-year, which had not taken into consideration
the financial impact of the Transaction.
About Crystal Orange Crystal
Orange is a leading boutique hotel operator in China founded in
2006, headquartered in Beijing, with more than 100 hotels located
primarily in tier 1 and tier 2 cities. Crystal’s three flagship
brands address different segments of the market, namely “Crystal
Orange Hotel”, “Orange Hotel Select” and “Orange Hotel”.
For more information about Crystal Orange, please
visit its website: http://www.orangehotel.com.cn
About China Lodging Group, Limited
China 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 the 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. Such factors and risks include our anticipated
growth strategies; our future results of operations and financial
condition; the economic conditions of China; the regulatory
environment in China; our ability to attract customers and leverage
our brand; trends and competition in the lodging industry; the
expected growth of the lodging market in China; and other factors
and risks detailed in our filings with the Securities and Exchange
Commission. 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. The Company undertakes
no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
unless required by applicable law.
Contact Information
Tel: +86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com
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