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 fourth quarter and full year ended December 31,
2017.
Fourth Quarter of 2017
Operational Highlights
- During the fourth quarter of 2017, China Lodging Group opened
137 hotels, including 2 leased (“leased-and-operated”) hotels and
135 manachised (“franchised-and-managed”) hotels and franchised
hotels.
- The Company closed a total of 47 hotels, which included 15
leased hotels and 32 manachised and franchised hotels, during the
fourth quarter of 2017. This was mainly due to:a) The Company's
strategic focus to upgrade the quality of the product and service.
The Company closed 5 hotels for brand upgrade purposes and
permanently removed 11 hotels from its network for their
non-compliance with the brand and operating standards. These hotels
were mainly under HanTing and Hi Inn brands. By removing hotels of
lower quality, the Company is able to provide a more consistent
customer experience, which will help enhance both the brands and
future profitability. b) Property related issues,
including rezoning and returning of military-owned properties, and
expiry of leases, which resulted in the closure of 28
hotels. c) Operating losses from hotels located mainly in
selected 3rd or lower tier cities which resulted in the closure of
3 hotels.
- The ADR, which is defined as the average daily rate for all
hotels in operation, was RMB211 in the fourth quarter of 2017,
compared with RMB186 in the fourth quarter of 2016 and RMB218 in
the previous quarter. The year-over-year increase of 13.1% 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 decrease
resulted mainly from seasonality.
- The occupancy rate for all hotels in operation was 86.0% in the
fourth quarter of 2017, compared with 84.7% in the fourth quarter
of 2016 and 93.1% in the previous quarter. The year-over-year
increase of 1.4 percentage points was due to the improved
performance across all brands as driven by strong travel demand and
the increasing popularity of the Company’s brands. The sequential
decrease resulted mainly from seasonality.
- RevPAR, defined as revenue per available room for all hotels in
operation, was RMB181 in the fourth quarter of 2017, compared with
RMB158 in the fourth quarter of 2016 and RMB203 in the previous
quarter. The year-over-year increase of 15.0% 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 RMB172 for the fourth quarter of
2017, representing a 6.5% increase from RMB162 for the fourth
quarter of 2016, with a 4.9% increase in ADR and a
1.3-percentage-point increase in occupancy rate. The economy hotels
registered a 6.9% same-hotel RevPAR improvement, driven by a 5.1%
increase in ADR and a 1.5-percentage-point increase in occupancy
rate. The midscale and upscale hotels registered a 4.8% same-hotel
RevPAR improvement, driven by a 4.4% increase in ADR and a
0.3-percentage-point increase in occupancy rate. Crystal Orange
hotels will not be counted in the same-hotel RevPAR statistics
until they are in Huazhu system for 18 months.
Operational Highlights of full
year 2017
- For the full year of 2017, the company opened 86 leased hotels
and 579 manachised hotels and franchised hotels, and closed 39
leased hotels and 149 manachised and franchised hotels. As of
December 31, 2017, the Company had 671 leased hotels, 2,874
manachised hotels, and 201 franchised hotels in operation in 378
cities. The number of hotel rooms in operation totaled
379,675, an increase of 14.6% from a year ago.
- As of December 31, 2017, the Company had a total number of 696
hotels contracted or under construction, including 37 leased hotels
and 659 manachised and franchised hotels.
- For the full year of 2017, the ADR for all hotels in operation
was RMB203, increasing 10.0% year-over-year from RMB185 in 2016.
The occupancy rate for all hotels in operation was 88.3%, compared
with 84.9% in 2016. As a result, the RevPAR for all hotels in
operation was RMB180 in 2017, a 14.4% increase from RMB157 in
2016.
- The same-hotel RevPAR was RMB174 in 2017, a 7.7% increase from
RMB in 2016, with a 3.7% increase in ADR and a 3.3-percentage-point
increase in occupancy rate. In 2017, the economy hotels and the
midscale and upscale hotels posted an increase of 7.4% and 8.2% in
same-hotel RevPAR, respectively.
- As of December 31, 2017, the Company’s loyalty program had
approximately 103 million members, who contributed approximately
76% of room nights sold during the full year of 2017 and
approximately 87% of room nights were sold through the Company’s
own direct channels.
“We are pleased to have finished 2017 with
strong fourth quarter operating results and expecting another solid
year in 2018. Thanks to successful product upgrade, brand mix
up-shift, and improved operational environment, we achieved 14.4%
increase year-over-year in group blended RevPAR. On the front of
hotel development, in 2017, we opened more than three hotels every
two days. Our hotel room inventory grew by 20% on a gross basis, or
15% net,” commented Ms. Jenny Zhang, Chief Executive Officer of
China Lodging Group.
“Our consistent track record of strong hotel
openings and pipeline growth demonstrates robust demand for our
brands. In 2017, we continued to strengthen our economy brands by
rolling out new models and launch a few of midscale brands such as
HanTing Premium, CitiGo and urban Manxin. Our refreshed models have
received positive market feedback from guests and franchisees.
Additionally, we have enriched our midscale brand portfolio
by acquiring Crystal Orange and successfully integrated the Crystal
Orange hotels into our network, which is expected to accelerate our
growth and enhance our profitability in 2018. I’m also proud to
announce that we have achieved a milestone of having over 100
million members in our loyalty program,” said Ms. Zhang. “Going
forward, we will maintain our asset-light growth strategy and
continue to invest in our brands and to improve our operational
efficiency. We expect operational environment to continue its
positive momentum and remain optimistic about outlook in 2018.”
|
Fourth Quarter and Full Year
of 2017 Financial Results |
|
(RMB in
thousands) |
Q4 2016 |
Q3 2017 |
Q4 2017 |
2016FY |
|
2017FY |
Revenues: |
|
|
|
|
|
Leased
and owned hotels |
1,290,575 |
1,857,846 |
1,718,840 |
5,212,405 |
|
6,343,279 |
Manachised and franchised hotels |
367,983 |
506,720 |
483,026 |
1,411,156 |
|
1,786,660 |
Others |
11,365 |
8,445 |
13,032 |
31,219 |
|
40,257 |
Total
revenues |
1,669,923 |
2,373,011 |
2,214,898 |
6,654,780 |
|
8,170,196 |
Less:
business tax and related surcharges |
- |
- |
- |
(116,149 |
) |
- |
Net
revenues |
1,669,923 |
2,373,011 |
2,214,898 |
6,538,631 |
|
8,170,196 |
Net
revenues from leased and owned hotels |
1,290,575 |
1,857,846 |
1,718,840 |
5,121,431 |
|
6,343,279 |
Net
revenues from manachised and franchised hotels |
367,983 |
506,720 |
483,026 |
1,386,526 |
|
1,786,660 |
Others |
11,365 |
8,445 |
13,032 |
30,674 |
|
40,257 |
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 surcharges in full year of 2016 is reallocated to
reflect net revenues for each business.
Net revenues for the fourth
quarter of 2017 were RMB2,214.9 million (US$340.4 million),
representing a 32.6% year-over-year increase and a 6.7% sequential
decrease. The year-over-year increase was primarily attributable to
our hotel network expansion, improved blended RevPAR and the
acquisition of Crystal Orange. The sequential decrease was due to
seasonality.
Net revenues for the full year of 2017 were
RMB8,170.2 million (US$1,255.7 million), representing an increase
of 25.0% from the full year of 2016.
Net revenues from leased and owned
hotels for the fourth quarter of 2017 were RMB1,718.8
million (US$264.2 million), representing a 33.2% year-over-year
increase and a 7.5% sequential decrease.
For the full year of 2017, net revenues from
leased and owned hotels were RMB6,343.3 million (US$974.9 million),
representing a 23.9% year-over-year increase.
Net revenues from manachised and
franchised hotels for the fourth quarter of 2017 were
RMB483.0 million (US$74.2 million), representing a 31.3%
year-over-year increase and a 4.7% sequential decrease.
For the full year of 2017, net revenues from
manachised and franchised hotels were RMB 1,786.7 million (US$274.6
million), representing a 28.9% year-over-year increase. It accounts
for 21.9% of net revenues, compared to 21.2% of net revenues for
the full year of 2016.
Other revenues represent
revenues generated from businesses other than the hotel operation,
which mainly include revenues from Hua Zhu mall and the provision
of IT products and services to hotels, totaling RMB13.0 million
(US$2.0 million) in the fourth quarter of 2017.
For the full year of 2017, other revenues were
RMB40.3 million (US$6.2 million).
|
|
|
|
|
|
(RMB in
thousands) |
Q4 2016 |
Q3 2017 |
Q4 2017 |
2016FY |
2017FY |
Operating costs and expenses: |
|
|
|
|
|
Hotel
operating costs |
1,264,602 |
1,504,070 |
1,622,849 |
4,932,173 |
5,674,151 |
Other
operating costs |
2,319 |
4,816 |
6,836 |
7,606 |
17,324 |
Selling
and marketing expenses |
46,142 |
51,561 |
83,868 |
146,525 |
214,959 |
General
and administrative expenses |
143,434 |
153,725 |
236,213 |
492,141 |
690,970 |
Pre-opening expenses |
19,747 |
67,632 |
71,575 |
71,847 |
206,454 |
Total
operating costs and expenses |
1,476,244 |
1,781,804 |
2,021,341 |
5,650,292 |
6,803,858 |
|
|
|
|
|
|
Hotel operating costs for the
fourth quarter of 2017 were RMB1,622.8 million (US$249.4 million),
compared to RMB1,264.6 million in the fourth quarter of 2016 and
RMB1,504.1 million in the previous quarter, representing a 28.3%
year-over-year increase and a 7.9% sequential increase. Total hotel
operating costs excluding share-based compensation expenses
(non-GAAP) for the fourth quarter of 2017 were RMB1,616.8 million
(US$248.5 million), representing 73.0% of net revenues, compared to
75.5% for the fourth quarter in 2016 and 63.2% for the previous
quarter. The year-over-year decrease in the percentage was mainly
attributable to the improved blended RevPAR and the increased
portion of manachised-and-franchised hotels. The sequential
increase in the percentage was mainly due to seasonality.
For the full year of 2017, hotel operating costs
were RMB5,674.2 million (US$872.1 million), compared to RMB4,932.2
million in 2016. Excluding share-based compensation, hotel
operating costs (non-GAAP) were RMB5,654.4 million (US$869.1
million), representing 69.2% of net revenues, compared to 75.2% in
2016.
Selling and marketing expenses
for the fourth quarter of 2017 were RMB83.9 million (US$12.9
million), compared to RMB46.1 million in the fourth quarter of 2016
and RMB51.6 million in the previous quarter. Selling and marketing
expenses excluding share-based compensation expenses (non-GAAP) for
the fourth quarter of 2017 were RMB83.3 million (US$12.8 million),
or 3.8% of net revenues, compared to 2.8% for the fourth quarter of
2016 and 2.2% for the previous quarter. The year-over-year and
sequential increase were mainly attributable to redesign of a
number of our hotel brands as well as marketing activities to
promote our brands and loyalty programs in the fourth quarter of
2017.
For the full year of 2017, selling and marketing
expenses were RMB215.0 million (US$33.0 million), compared to
RMB146.5 million in 2016. Selling and marketing expenses excluding
share-based compensation expenses (non-GAAP) were RMB213.4 million
(US$32.8 million), representing 2.6% of net revenues, compared to
2.2% in 2016. The increase was mainly due to redesign of a number
of our hotel brands as well as marketing activities to promote our
brands and loyalty programs.
General and administrative
expenses for the fourth quarter of 2017 were RMB236.2
million (US$36.3 million), compared to RMB143.4 million in the
fourth quarter of 2016 and RMB153.7 million in the previous
quarter. General and administrative expenses excluding share-based
compensation expenses (non-GAAP) for the fourth quarter of 2017
were RMB223.6 million (US$34.4 million), representing 10.1% of net
revenues, compared with 8.1% of net revenues in the fourth quarter
of 2016 and 6.1% in the previous quarter. The year-over-year
and sequential increase in the percentage was mainly due to the
increase of performance-related personnel costs and professional
fees.
For the full year of 2017, general and
administrative expenses were RMB691.0 million (US$106.2 million),
compared to RMB492.1 million in 2016. General and administrative
expenses excluding share-based compensation expenses (non-GAAP)
were RMB645.9 million (US$99.3 million), representing 7.9% of net
revenues, compared to 6.9% in 2016. The increase was mainly
attributable to the increase of performance-related personnel
costs, general and administrative expenses related to the newly
acquired Crystal Orange operations, and one-off Crystal Orange
acquisition transaction costs amounting to RMB45.2 million in the
first half of 2017.
Pre-opening expenses for the
fourth quarter of 2017 were RMB71.6 million (US$11.0 million),
representing a 262.5% year-over-year increase and a 5.8% sequential
increase. The year-over-year and sequential increases were mainly
because more leased mid-and-upscale hotels were under construction
in the fourth quarter of 2017.
Pre-opening expenses for the full year of 2017
were RMB206.5 million (US$31.7 million), compared to RMB71.8
million in 2016, representing a year-over-year increase of 187.4%.
The increase in pre-opening expenses was mainly attributable to
more leased mid-and-upscale hotels opened or under construction in
2017 than in 2016. The pre-opening expenses as a percentage of net
revenues increased to 2.5% in 2017 from 1.1% in 2016.
Income from operations for the
fourth quarter of 2017 was RMB236.1 million (US$36.3 million),
compared to RMB185.7 million in the fourth quarter of 2016 and
RMB591.3 million in the previous quarter. Excluding share-based
compensation expenses, adjusted income from operations (non-GAAP)
for the fourth quarter of 2017 was RMB255.4 million (US$39.2
million), compared to adjusted income from operation (non-GAAP) of
RMB198.2 million for the fourth quarter of 2016 and RMB606.6
million for the previous quarter. The adjusted operating margin,
defined as adjusted income from operations (non-GAAP) as percentage
of net revenues, for the fourth quarter of 2017 was 11.6%, compared
with 11.8% in the fourth quarter of 2016 and 25.5% in the previous
quarter. The sequential decrease in the operating margin was due to
seasonality.
Income from operations for the full year of 2017
was RMB1,437.5 million (US$220.9 million), compared to RMB870.9
million in 2016. Excluding share-based compensation expenses,
adjusted income from operations (non-GAAP) for the full year of
2017 was RMB1,503.9 million (US$231.1 million), compared to
RMB926.3 million for the full year of 2016. The adjusted operating
margin (non-GAAP) for the year of 2017 was 18.4%, compared with
14.1% for the full year of 2016. The improvement of
4.3-percentage-points in the adjusted operating margin was mainly
attributable to the higher blended RevPAR and the increased portion
of manachised-and-franchised hotels in 2017.
Net income attributable to China Lodging
Group, Limited for the fourth quarter of 2017 was RMB229.4
million (US$35.3 million), as 10.4% of net revenues, compared to
RMB125.9 million, as 7.5% of net revenues in the fourth quarter of
2016 and RMB470.1 million, as 19.8% of net revenues in the previous
quarter. Excluding share-based compensation expenses, adjusted net
income attributable to China Lodging Group, Limited (non-GAAP) for
the fourth quarter of 2017 was RMB248.7 million (US$38.2 million),
representing a 79.7% year-over-year increase and a 48.8% sequential
decrease.
Net income attributable to China Lodging Group,
Limited for the full year of 2017 was RMB1,237.2 million (US$190.2
million), as 15.1% of net revenues, compared to RMB804.6 million,
as 12.3% of net revenues in 2016. Excluding share-based
compensation expenses, adjusted net income attributable to China
Lodging Group (non-GAAP) for the full year of 2017 was RMB1,303.6
million (US$200.4 million), compared to RMB860.1 million in 2016.
The year-over-year increase of 51.6% was mainly attributable to the
expanded hotel network, improved blended RevPAR and the acquisition
of Crystal Orange in 2017.
Basic and diluted earnings per
share/ADS. For the fourth quarter of 2017, basic
earnings per share were RMB0.82 (US$0.13) and diluted earnings per
share were RMB0.78 (US$0.12); basic earnings per ADS were RMB3.28
(US$0.50) and diluted earnings per ADS were RMB3.13 (US$0.48). For
the fourth quarter of 2017, excluding share-based compensation
expenses, adjusted basic earnings per share (non-GAAP) were RMB0.89
(US$0.14) and adjusted diluted earnings per share (non-GAAP) were
RMB0.85 (US$0.13); adjusted basic earnings per ADS (non-GAAP) were
RMB3.55 (US$0.55) and adjusted diluted earnings per ADS (non-GAAP)
were RMB3.39 (US$0.52).
For the full year of 2017, basic earnings per
share were RMB4.43 (US$0.68) and diluted earnings per share were
RMB4.24 (US$0.65); basic earnings per ADS were RMB17.72 (US$2.72),
while diluted earnings per ADS were RMB16.95 (US$2.60). For the
full year of 2017, excluding share-based compensation expenses,
adjusted basic earnings per share (non-GAAP) were RMB4.67
(US$0.72), while adjusted diluted earnings per share (non-GAAP)
were RMB4.46 (US$0.69), and adjusted basic earnings per ADS
(non-GAAP) were RMB18.67 (US$2.87), while adjusted diluted earnings
per ADS (non-GAAP) were RMB17.85 (US$2.74).
EBITDA (non-GAAP) for the
fourth quarter of 2017 was RMB450.7 million (US$69.3 million),
compared with RMB366.8 million in the fourth quarter of 2016 and
RMB849.6 million in the previous quarter. Excluding share-based
compensation expenses, adjusted EBITDA (non-GAAP) for the fourth
quarter of 2017 was RMB470.0 million (US$72.2 million), compared
with RMB379.3 million for the fourth quarter of 2016 and RMB864.9
million for the previous quarter.
EBITDA (non-GAAP) for the full year of 2017 was
RMB2,361.1 million (US$362.9 million), compared to RMB1,730.3
million in 2016. Excluding share-based compensation expenses,
adjusted EBITDA (non-GAAP) for the full year of 2017 was RMB2,427.5
million (US$373.1 million), compared with RMB1,785.8 million in
2016, representing a 35.9% year-over-year increase. The
year-over-year increase was mainly due to the expansion of the
Company’s hotel network, the improved RevPAR and the acquisition of
Crystal Orange in 2017. The adjusted EBITDA margin (non-GAAP) for
the year of 2017 was 29.7%, compared with 27.3% for the full year
of 2016.
Cash flow. Operating cash
inflow for the fourth quarter of 2017 was RMB554.2 million (US$85.2
million). Investing cash outflow for the fourth quarter was
RMB1,403.4 million (US$215.7 million).
Operating cash inflow for the full year of 2017
was RMB2,452.6 million (US$377.0 million), representing an increase
of 18.7% from 2016. The significant growth was mainly due to the
Company’s fast network expansion with manachise and franchise
models. Investing cash outflow for the full year of 2017 was
RMB6,716.3 million (US$1,032.3 million), compared to investing cash
inflow of RMB183.8 million in 2016. The fluctuation was mainly
attributable to cash paid for business acquisitions such as Crystal
Orange, the purchase of long-term investments, and increase in
restricted cash.
Cash and cash equivalents and Restricted
cash. As of December 31, 2017, the Company had a total
balance of cash and cash equivalents, restricted cash of RMB3,956.1
million (US$608.0 million).
Debt financing. As of December
31, 2017, the Company had a total loan balance of RMB5,052.6
million (US$776.6 million).
Guidance In the first quarter
of 2018, the Company expects net revenues to grow 27% to 29%
year-over-year. For the full year 2018, the Company expects net
revenues to grow 16% to 19% from 2017.
The Company anticipates the gross opening of
650-700 hotels in 2018, 60%-65% of which are midscale and upscale
hotels.
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,
Tuesday, March 13, 2018 (or 9 a.m. on Wednesday, March 14, 2018 in
the Shanghai/Hong Kong time zone) following the announcement. To
participate in the event by telephone, please dial +1 (845) 675
0438 (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 7095016. 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 March
20, 2018. 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
7095016.
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
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 December 31, 2017, the
Company had 3,746 hotels or 379,675 rooms in operation in 378
cities. With a primary focus on economy and midscale hotel
segments, China Lodging Group's brands include Hi Inn, HanTing
Hotel, Elan Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel,
Joya 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. As of December 31,
2017, China Lodging Group operates 22 percent of its hotel rooms
under lease and ownership model, 78 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$1.00=RMB6.5063 on
December 29, 2017 as set forth in H.10 statistical release of the
U.S. Federal Reserve Board and available at
http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
2 Each ADS represents four of the Company’s ordinary shares.
3 In 2017, we adopted ASU No.2016-09,
Compensation – Stock Compensation (Topic 718): Improvements to
Employee Share-Based Payment Accounting by using a retrospective
transition method in the unaudited condensed consolidated
statements of cash flows. Accordingly we reclassified Excess tax
benefit from share-based compensation from financing activities to
operating activities in the unaudited condensed consolidated
statements of cash flows for the quarters ended December 31, 2016,
September 30, 2017 and December 31, 2017, and the years ended
December 31, 2016 and 2017, respectively.
---Financial Tables and Operational Data
Follow—
|
China Lodging Group, Limited |
Unaudited Condensed Consolidated Balance
Sheets |
|
|
December 31, 2016 |
|
December 31, 2017 |
|
RMB |
|
RMB |
US$ |
|
(in thousands) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
3,235,007 |
|
|
3,474,719 |
|
|
534,054 |
|
Restricted cash |
500 |
|
|
481,348 |
|
|
73,982 |
|
Short-term investments |
- |
|
|
129,911 |
|
|
19,967 |
|
Accounts
receivable, net |
141,649 |
|
|
162,910 |
|
|
25,039 |
|
Loan
receivables |
22,410 |
|
|
380,580 |
|
|
58,494 |
|
Amounts
due from related parties |
98,453 |
|
|
118,537 |
|
|
18,219 |
|
Prepaid
rent |
446,127 |
|
|
659,973 |
|
|
101,436 |
|
Inventories |
21,606 |
|
|
24,006 |
|
|
3,690 |
|
Other
current assets |
208,929 |
|
|
329,140 |
|
|
50,588 |
|
Total current
assets |
4,174,681 |
|
|
5,761,124 |
|
|
885,469 |
|
|
|
|
|
Property and equipment,
net |
3,710,468 |
|
|
4,522,878 |
|
|
695,154 |
|
Intangible assets,
net |
342,694 |
|
|
1,643,972 |
|
|
252,674 |
|
Land use rights |
145,521 |
|
|
140,108 |
|
|
21,534 |
|
Long-term
investments |
1,064,321 |
|
|
2,361,969 |
|
|
363,028 |
|
Goodwill |
171,504 |
|
|
2,264,758 |
|
|
348,087 |
|
Loan receivables |
7,269 |
|
|
42,330 |
|
|
6,506 |
|
Other assets |
200,492 |
|
|
364,660 |
|
|
56,047 |
|
Deferred tax
assets |
176,414 |
|
|
325,643 |
|
|
50,050 |
|
Total assets |
9,993,364 |
|
|
17,427,442 |
|
|
2,678,549 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Short-term debt |
298,291 |
|
|
130,684 |
|
|
20,086 |
|
Long-term
debt, current portion |
- |
|
|
131 |
|
|
20 |
|
Accounts
payable |
584,731 |
|
|
766,565 |
|
|
117,819 |
|
Amounts
due to related parties |
11,058 |
|
|
36,890 |
|
|
5,670 |
|
Salary
and welfare payables |
274,259 |
|
|
427,070 |
|
|
65,640 |
|
Deferred
revenue |
749,793 |
|
|
832,021 |
|
|
127,879 |
|
Accrued
expenses and other current liabilities |
895,837 |
|
|
1,264,902 |
|
|
194,412 |
|
Income
tax payable |
152,112 |
|
|
218,238 |
|
|
33,542 |
|
Total current
liabilities |
2,966,081 |
|
|
3,676,501 |
|
|
565,068 |
|
|
|
|
|
Long-term debt |
- |
|
|
4,921,774 |
|
|
756,463 |
|
Deferred rent |
1,023,843 |
|
|
1,380,484 |
|
|
212,177 |
|
Deferred revenue |
166,963 |
|
|
171,735 |
|
|
26,394 |
|
Other long-term
liabilities |
323,991 |
|
|
380,578 |
|
|
58,494 |
|
Deferred tax
liabilities |
96,329 |
|
|
422,090 |
|
|
64,874 |
|
Total liabilities |
4,577,207 |
|
|
10,953,162 |
|
|
1,683,470 |
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
Ordinary
shares |
204 |
|
|
212 |
|
|
33 |
|
Treasury
shares |
(107,331 |
) |
|
(107,331 |
) |
|
(16,496 |
) |
Additional paid-in capital |
3,699,056 |
|
|
3,624,135 |
|
|
557,019 |
|
Retained
earnings |
1,812,174 |
|
|
2,753,715 |
|
|
423,238 |
|
Accumulated other comprehensive income (loss) |
(4,503 |
) |
|
167,965 |
|
|
25,816 |
|
Total China Lodging
Group, Limited shareholders' equity |
5,399,600 |
|
|
6,438,696 |
|
|
989,610 |
|
Noncontrolling interest |
16,557 |
|
|
35,584 |
|
|
5,469 |
|
Total equity |
5,416,157 |
|
|
6,474,280 |
|
|
995,079 |
|
Total liabilities and
equity |
9,993,364 |
|
|
17,427,442 |
|
|
2,678,549 |
|
|
|
|
|
|
|
|
|
|
|
China Lodging Group, Limited |
Unaudited Condensed Consolidated Statements of
Comprehensive Income |
|
|
Quarter Ended |
|
Year Ended |
|
December 31,
2016 |
|
September 30,2017 |
|
December 31,
2017 |
|
December 31,
2016 |
|
December 31,
2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands, except per share and per ADS
data) |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased
and owned hotels |
1,290,575 |
|
|
1,857,846 |
|
|
1,718,840 |
|
|
264,181 |
|
|
5,212,405 |
|
|
6,343,279 |
|
|
974,944 |
|
Manachised and franchised hotels |
367,983 |
|
|
506,720 |
|
|
483,026 |
|
|
74,240 |
|
|
1,411,156 |
|
|
1,786,660 |
|
|
274,605 |
|
Others |
11,365 |
|
|
8,445 |
|
|
13,032 |
|
|
2,003 |
|
|
31,219 |
|
|
40,257 |
|
|
6,187 |
|
Total
revenues |
1,669,923 |
|
|
2,373,011 |
|
|
2,214,898 |
|
|
340,424 |
|
|
6,654,780 |
|
|
8,170,196 |
|
|
1,255,736 |
|
Less:
business tax and related |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(116,149 |
) |
|
- |
|
|
- |
|
Net
revenues |
1,669,923 |
|
|
2,373,011 |
|
|
2,214,898 |
|
|
340,424 |
|
|
6,538,631 |
|
|
8,170,196 |
|
|
1,255,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Hotel
operating costs: |
|
|
|
|
|
|
|
Rents |
(461,112 |
) |
|
(533,285 |
) |
|
(560,178 |
) |
|
(86,098 |
) |
|
(1,870,879 |
) |
|
(2,058,954 |
) |
|
(316,455 |
) |
Utilities |
(78,451 |
) |
|
(104,284 |
) |
|
(89,024 |
) |
|
(13,683 |
) |
|
(345,615 |
) |
|
(365,100 |
) |
|
(56,115 |
) |
Personnel
costs |
(272,706 |
) |
|
(366,019 |
) |
|
(412,924 |
) |
|
(63,465 |
) |
|
(1,088,380 |
) |
|
(1,388,284 |
) |
|
(213,376 |
) |
Depreciation and amortization |
(169,350 |
) |
|
(214,069 |
) |
|
(204,147 |
) |
|
(31,377 |
) |
|
(676,996 |
) |
|
(773,202 |
) |
|
(118,839 |
) |
Consumables, food and beverage |
(127,864 |
) |
|
(150,458 |
) |
|
(154,314 |
) |
|
(23,717 |
) |
|
(494,764 |
) |
|
(550,513 |
) |
|
(84,612 |
) |
Others |
(155,119 |
) |
|
(135,955 |
) |
|
(202,262 |
) |
|
(31,087 |
) |
|
(455,539 |
) |
|
(538,098 |
) |
|
(82,704 |
) |
Total
hotel operating costs |
(1,264,602 |
) |
|
(1,504,070 |
) |
|
(1,622,849 |
) |
|
(249,427 |
) |
|
(4,932,173 |
) |
|
(5,674,151 |
) |
|
(872,101 |
) |
Other
operating costs |
(2,319 |
) |
|
(4,816 |
) |
|
(6,836 |
) |
|
(1,051 |
) |
|
(7,606 |
) |
|
(17,324 |
) |
|
(2,663 |
) |
Selling
and marketing expenses |
(46,142 |
) |
|
(51,561 |
) |
|
(83,868 |
) |
|
(12,890 |
) |
|
(146,525 |
) |
|
(214,959 |
) |
|
(33,039 |
) |
General
and administrative expenses |
(143,434 |
) |
|
(153,725 |
) |
|
(236,213 |
) |
|
(36,305 |
) |
|
(492,141 |
) |
|
(690,970 |
) |
|
(106,200 |
) |
Pre-opening expenses |
(19,747 |
) |
|
(67,632 |
) |
|
(71,575 |
) |
|
(11,001 |
) |
|
(71,847 |
) |
|
(206,454 |
) |
|
(31,731 |
) |
Total
operating costs and expenses |
(1,476,244 |
) |
|
(1,781,804 |
) |
|
(2,021,341 |
) |
|
(310,674 |
) |
|
(5,650,292 |
) |
|
(6,803,858 |
) |
|
(1,045,734 |
) |
Other
operating income (expense), net |
(7,961 |
) |
|
137 |
|
|
42,563 |
|
|
6,541 |
|
|
(17,440 |
) |
|
71,175 |
|
|
10,940 |
|
Income
from operations |
185,718 |
|
|
591,344 |
|
|
236,120 |
|
|
36,291 |
|
|
870,899 |
|
|
1,437,513 |
|
|
220,942 |
|
Interest
income |
22,939 |
|
|
31,807 |
|
|
40,713 |
|
|
6,257 |
|
|
67,366 |
|
|
112,645 |
|
|
17,313 |
|
Interest
expense |
(2,289 |
) |
|
(34,797 |
) |
|
(34,295 |
) |
|
(5,271 |
) |
|
(11,056 |
) |
|
(87,320 |
) |
|
(13,421 |
) |
Other
income, net |
(3,207 |
) |
|
51,123 |
|
|
11,195 |
|
|
1,721 |
|
|
133,755 |
|
|
163,678 |
|
|
25,157 |
|
Foreign
exchange gain (loss) |
10,341 |
|
|
(5,833 |
) |
|
(2,341 |
) |
|
(360 |
) |
|
16,481 |
|
|
(18,128 |
) |
|
(2,786 |
) |
Income
before income taxes |
213,502 |
|
|
633,644 |
|
|
251,392 |
|
|
38,638 |
|
|
1,077,445 |
|
|
1,608,388 |
|
|
247,205 |
|
Income
tax expense |
(87,745 |
) |
|
(158,446 |
) |
|
(18,986 |
) |
|
(2,918 |
) |
|
(287,120 |
) |
|
(359,958 |
) |
|
(55,325 |
) |
Income
(Loss) from equity method investments |
3,734 |
|
|
(3,279 |
) |
|
(2,871 |
) |
|
(441 |
) |
|
6,157 |
|
|
(11,783 |
) |
|
(1,811 |
) |
Net
income |
129,491 |
|
|
471,919 |
|
|
229,535 |
|
|
35,279 |
|
|
796,482 |
|
|
1,236,647 |
|
|
190,069 |
|
Less:
net loss (income) attributable to noncontrolling interest |
(3,633 |
) |
|
(1,858 |
) |
|
(116 |
) |
|
(18 |
) |
|
8,133 |
|
|
555 |
|
|
86 |
|
Net
income attributable to China Lodging Group, Limited |
125,858 |
|
|
470,061 |
|
|
229,419 |
|
|
35,261 |
|
|
804,615 |
|
|
1,237,202 |
|
|
190,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income |
|
|
|
|
|
|
|
Unrealized securities holding gains (losses), net of tax |
3,278 |
|
|
(5,757 |
) |
|
11,400 |
|
|
1,752 |
|
|
16,449 |
|
|
868 |
|
|
133 |
|
Reclassification of gains realized to net income, net of tax |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(67,921 |
) |
|
(5,282 |
) |
|
(812 |
) |
Foreign
currency translation adjustments, net of tax |
(6,911 |
) |
|
71,077 |
|
|
58,502 |
|
|
8,992 |
|
|
(12,627 |
) |
|
176,882 |
|
|
27,186 |
|
Comprehensive income |
125,858 |
|
|
537,239 |
|
|
299,437 |
|
|
46,023 |
|
|
732,383 |
|
|
1,409,115 |
|
|
216,576 |
|
Comprehensive loss (income) attributable to noncontrolling
interest |
(3,633 |
) |
|
(1,858 |
) |
|
(116 |
) |
|
(18 |
) |
|
8,133 |
|
|
555 |
|
|
86 |
|
Comprehensive income attributable to China Lodging Group,
Limited |
122,225 |
|
|
535,381 |
|
|
299,321 |
|
|
46,005 |
|
|
740,516 |
|
|
1,409,670 |
|
|
216,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
|
|
Basic |
0.45 |
|
|
1.68 |
|
|
0.82 |
|
|
0.13 |
|
|
2.92 |
|
|
4.43 |
|
|
0.68 |
|
Diluted |
0.44 |
|
|
1.62 |
|
|
0.78 |
|
|
0.12 |
|
|
2.84 |
|
|
4.24 |
|
|
0.65 |
|
|
|
|
|
|
|
|
|
Earnings
per ADS: |
|
|
|
|
|
|
|
Basic |
1.81 |
|
|
6.72 |
|
|
3.28 |
|
|
0.50 |
|
|
11.70 |
|
|
17.72 |
|
|
2.72 |
|
Diluted |
1.76 |
|
|
6.50 |
|
|
3.13 |
|
|
0.48 |
|
|
11.38 |
|
|
16.95 |
|
|
2.60 |
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
277,473 |
|
|
279,631 |
|
|
279,861 |
|
|
279,861 |
|
|
275,139 |
|
|
279,272 |
|
|
279,272 |
|
Diluted |
285,887 |
|
|
289,317 |
|
|
298,903 |
|
|
298,903 |
|
|
282,889 |
|
|
293,074 |
|
|
293,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Lodging Group, Limited |
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
|
Quarter Ended |
|
Year Ended |
|
December 31,
2016 |
|
September 30,
2017 |
|
December 31,
2017 |
|
December 31,2016 |
|
December 31,
2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands) |
Operating activities3: |
|
|
|
|
|
|
|
Net income |
129,491 |
|
|
471,919 |
|
|
229,535 |
|
|
35,279 |
|
|
796,482 |
|
|
1,236,647 |
|
|
190,069 |
|
Adjustments to reconcile net income to net cash
provided by operating activities: |
Share-based compensation |
12,527 |
|
|
15,302 |
|
|
19,245 |
|
|
2,958 |
|
|
55,436 |
|
|
66,367 |
|
|
10,200 |
|
Depreciation and amortization |
173,826 |
|
|
218,081 |
|
|
208,756 |
|
|
32,085 |
|
|
694,894 |
|
|
789,252 |
|
|
121,306 |
|
Amortization of issuance cost of convertible notes |
- |
|
|
- |
|
|
2,598 |
|
|
399 |
|
|
- |
|
|
2,598 |
|
|
399 |
|
Deferred taxes |
30,809 |
|
|
2,823 |
|
|
(81,100 |
) |
|
(12,465 |
) |
|
33,446 |
|
|
(76,237 |
) |
|
(11,717 |
) |
Bad debt expenses |
1,200 |
|
|
- |
|
|
1,434 |
|
|
220 |
|
|
1,082 |
|
|
2,446 |
|
|
376 |
|
Deferred rent |
29,764 |
|
|
42,063 |
|
|
103,688 |
|
|
15,937 |
|
|
103,322 |
|
|
209,074 |
|
|
32,134 |
|
Loss from disposal of property and equipment |
1,240 |
|
|
- |
|
|
(2,795 |
) |
|
(430 |
) |
|
9,333 |
|
|
12,884 |
|
|
1,980 |
|
Impairment loss |
62,669 |
|
|
32,294 |
|
|
92,480 |
|
|
14,214 |
|
|
153,741 |
|
|
169,213 |
|
|
26,008 |
|
Loss (Income) from equity method investments |
(3,734 |
) |
|
3,279 |
|
|
2,871 |
|
|
441 |
|
|
(6,157 |
) |
|
11,783 |
|
|
1,811 |
|
Investment loss (gain) |
- |
|
|
(50,781 |
) |
|
(44,403 |
) |
|
(6,825 |
) |
|
(116,763 |
) |
|
(159,974 |
) |
|
(24,588 |
) |
Changes in operating assets and liabilities, net of
effect of acquisitions: |
Accounts receivable |
922 |
|
|
(7,798 |
) |
|
10,735 |
|
|
1,650 |
|
|
(46,211 |
) |
|
4,207 |
|
|
647 |
|
Prepaid rent |
(43,153 |
) |
|
(25,934 |
) |
|
(131,592 |
) |
|
(20,225 |
) |
|
(25,380 |
) |
|
(188,653 |
) |
|
(28,995 |
) |
Inventories |
167 |
|
|
5,527 |
|
|
3,684 |
|
|
566 |
|
|
3,923 |
|
|
2,766 |
|
|
425 |
|
Amounts due from related parties |
(4,537 |
) |
|
(6,465 |
) |
|
(23,967 |
) |
|
(3,684 |
) |
|
(9,314 |
) |
|
(31,151 |
) |
|
(4,788 |
) |
Other current assets |
(11,803 |
) |
|
(16,828 |
) |
|
(56,720 |
) |
|
(8,718 |
) |
|
(40,813 |
) |
|
(76,320 |
) |
|
(11,730 |
) |
Other assets |
5,362 |
|
|
(23,696 |
) |
|
4,691 |
|
|
721 |
|
|
(5,046 |
) |
|
(54,411 |
) |
|
(8,363 |
) |
Accounts payable |
39,690 |
|
|
11,114 |
|
|
35,417 |
|
|
5,444 |
|
|
59,129 |
|
|
8,141 |
|
|
1,251 |
|
Amounts due to related parties |
1,796 |
|
|
311 |
|
|
4,234 |
|
|
651 |
|
|
7,489 |
|
|
3,093 |
|
|
475 |
|
Salary and welfare payables |
111,005 |
|
|
(42,850 |
) |
|
223,455 |
|
|
34,345 |
|
|
60,669 |
|
|
133,142 |
|
|
20,464 |
|
Deferred revenue |
(89,742 |
) |
|
23,457 |
|
|
13,838 |
|
|
2,127 |
|
|
19,529 |
|
|
4,016 |
|
|
617 |
|
Accrued expenses and other current liabilities |
3,665 |
|
|
186,092 |
|
|
(40,053 |
) |
|
(6,156 |
) |
|
202,351 |
|
|
288,185 |
|
|
44,293 |
|
Income tax payable |
(11,563 |
) |
|
47,266 |
|
|
(39,224 |
) |
|
(6,028 |
) |
|
64,087 |
|
|
44,688 |
|
|
6,868 |
|
Other long-term liabilities |
14,339 |
|
|
12,984 |
|
|
17,386 |
|
|
2,672 |
|
|
51,072 |
|
|
50,840 |
|
|
7,813 |
|
Net
cash provided by operating activities |
453,940 |
|
|
898,160 |
|
|
554,193 |
|
|
85,178 |
|
|
2,066,301 |
|
|
2,452,596 |
|
|
376,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
Purchases of property and equipment |
(109,231 |
) |
|
(210,235 |
) |
|
(267,332 |
) |
|
(41,088 |
) |
|
(503,136 |
) |
|
(819,523 |
) |
|
(125,958 |
) |
Purchases of intangibles |
(3,517 |
) |
|
(2,702 |
) |
|
(4,079 |
) |
|
(627 |
) |
|
(13,557 |
) |
|
(7,854 |
) |
|
(1,207 |
) |
Amount received as a result of government zoning |
- |
|
|
- |
|
|
2,593 |
|
|
399 |
|
|
2,099 |
|
|
2,593 |
|
|
399 |
|
Acquisitions, net of cash received |
(1,683 |
) |
|
- |
|
|
(330 |
) |
|
(51 |
) |
|
131,501 |
|
|
(3,745,588 |
) |
|
(575,686 |
) |
Proceeds from disposal of subisidary and branch, net of cash
disposed |
- |
|
|
- |
|
|
13,684 |
|
|
2,103 |
|
|
(20,668 |
) |
|
13,684 |
|
|
2,103 |
|
Purchase of long-term investments |
(152,321 |
) |
|
(175,300 |
) |
|
(856,682 |
) |
|
(131,670 |
) |
|
(293,125 |
) |
|
(1,327,508 |
) |
|
(204,034 |
) |
Proceeds from maturity/sale of long-terminvestments |
- |
|
|
110 |
|
|
1,857 |
|
|
285 |
|
|
14,842 |
|
|
128,174 |
|
|
19,700 |
|
Payment for shareholder loan to equity investees |
(1,214 |
) |
|
(30,370 |
) |
|
(6,079 |
) |
|
(934 |
) |
|
(39,387 |
) |
|
(113,206 |
) |
|
(17,399 |
) |
Collection of shareholder loan from equity investees |
- |
|
|
71,355 |
|
|
- |
|
|
- |
|
|
9,285 |
|
|
119,855 |
|
|
18,421 |
|
Purchase of short-term investments |
- |
|
|
(95,802 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(95,802 |
) |
|
(14,724 |
) |
Proceeds from maturity/sale of short-term investments |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
526,443 |
|
|
- |
|
|
- |
|
Payment for the origination of loan receivables |
- |
|
|
(75,992 |
) |
|
(319,500 |
) |
|
(49,106 |
) |
|
(36,420 |
) |
|
(445,892 |
) |
|
(68,532 |
) |
Proceeds from collection of loan receivables |
25,622 |
|
|
25,021 |
|
|
20,303 |
|
|
3,121 |
|
|
45,885 |
|
|
55,662 |
|
|
8,554 |
|
Decrease (increase) in restricted cash |
1,657 |
|
|
(26,012 |
) |
|
12,163 |
|
|
1,869 |
|
|
360,000 |
|
|
(480,849 |
) |
|
(73,905 |
) |
Net
cash provided by (used in) investing activities |
(240,687 |
) |
|
(519,927 |
) |
|
(1,403,402 |
) |
|
(215,699 |
) |
|
183,762 |
|
|
(6,716,254 |
) |
|
(1,032,268 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
Net proceeds from issuance of ordinary shares upon exercise of
options |
3,668 |
|
|
580 |
|
|
1,875 |
|
|
288 |
|
|
12,206 |
|
|
9,073 |
|
|
1,394 |
|
Proceeds from short-term debt |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
281,719 |
|
|
136,488 |
|
|
20,978 |
|
Repayment of short-term debt |
- |
|
|
(26,913 |
) |
|
- |
|
|
- |
|
|
(332,555 |
) |
|
(294,677 |
) |
|
(45,291 |
) |
Proceeds from long-term debt |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
3,633,174 |
|
|
558,409 |
|
Repayment of long-term debt |
- |
|
|
- |
|
|
(1,650,916 |
) |
|
(253,741 |
) |
|
- |
|
|
(1,650,917 |
) |
|
(253,741 |
) |
Funds advanced from noncontrolling interestholders |
7,453 |
|
|
11,913 |
|
|
34,972 |
|
|
5,375 |
|
|
11,453 |
|
|
83,573 |
|
|
12,845 |
|
Repayment of funds advanced fromnoncontrolling interest
holders |
(400 |
) |
|
(7,053 |
) |
|
- |
|
|
- |
|
|
(600 |
) |
|
(8,730 |
) |
|
(1,342 |
) |
Acquisition of noncontrolling interest |
(4,083 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(4,083 |
) |
|
(3,750 |
) |
|
(576 |
) |
Contribution from noncontrolling interest holders |
10,500 |
|
|
890 |
|
|
17,743 |
|
|
2,728 |
|
|
45,604 |
|
|
25,575 |
|
|
3,931 |
|
Dividends paid to noncontrolling interest holders |
(612 |
) |
|
(240 |
) |
|
(240 |
) |
|
(37 |
) |
|
(3,677 |
) |
|
(2,810 |
) |
|
(432 |
) |
Dividends paid |
- |
|
|
- |
|
|
(306,343 |
) |
|
(47,084 |
) |
|
(276,261 |
) |
|
(306,343 |
) |
|
(47,084 |
) |
Proceeds from issuance of convertible notes, net of issuance cost
and capped call option |
- |
|
|
- |
|
|
2,925,202 |
|
|
449,595 |
|
|
- |
|
|
2,925,203 |
|
|
449,595 |
|
Debt financing and administrative costs paid |
- |
|
|
- |
|
|
(9,763 |
) |
|
(1,501 |
) |
|
- |
|
|
(9,763 |
) |
|
(1,501 |
) |
Proceeds from ADS Lending |
- |
|
|
- |
|
|
7 |
|
|
1 |
|
|
- |
|
|
7 |
|
|
1 |
|
Net
cash provided by (used in) financing activities |
16,526 |
|
|
(20,823 |
) |
|
1,012,537 |
|
|
155,624 |
|
|
(266,194 |
) |
|
4,536,103 |
|
|
697,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and
cash equivalents |
3,397 |
|
|
(4,677 |
) |
|
(21,717 |
) |
|
(3,338 |
) |
|
13,300 |
|
|
(32,733 |
) |
|
(5,031 |
) |
Net
increase in cash and cash equivalents |
233,176 |
|
|
352,733 |
|
|
141,611 |
|
|
21,765 |
|
|
1,997,169 |
|
|
239,712 |
|
|
36,842 |
|
Cash
and cash equivalents at the beginning of the period |
3,001,831 |
|
|
2,980,375 |
|
|
3,333,108 |
|
|
512,289 |
|
|
1,237,838 |
|
|
3,235,007 |
|
|
497,212 |
|
Cash
and cash equivalents at the end of the period |
3,235,007 |
|
|
3,333,108 |
|
|
3,474,719 |
|
|
534,054 |
|
|
3,235,007 |
|
|
3,474,719 |
|
|
534,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________
3 In 2017, we adopted ASU No.2016-09, Compensation – Stock
Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting by using a retrospective transition method in
the unaudited condensed consolidated statements of cash flows.
Accordingly we reclassified Excess tax benefit from share-based
compensation from financing activities to operating activities in
the unaudited condensed consolidated statements of cash flows for
the quarters ended December 31, 2016, September 30, 2017 and
December 31, 2017, and the years ended December 31, 2016 and 2017,
respectively.
|
China Lodging Group, Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
|
Quarter Ended December 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 |
1,622,849 |
|
73.3 |
% |
|
6,091 |
|
0.3 |
% |
|
1,616,758 |
|
73.0 |
% |
Other
operating costs |
6,836 |
|
0.3 |
% |
|
- |
|
0.0 |
% |
|
6,836 |
|
0.3 |
% |
Selling and marketing expenses |
83,868 |
|
3.8 |
% |
|
551 |
|
0.0 |
% |
|
83,317 |
|
3.8 |
% |
General and administrative expenses |
236,213 |
|
10.7 |
% |
|
12,603 |
|
0.6 |
% |
|
223,610 |
|
10.1 |
% |
Pre-opening expenses |
71,575 |
|
3.2 |
% |
|
- |
|
0.0 |
% |
|
71,575 |
|
3.2 |
% |
Total
operating costs and expenses |
2,021,341 |
|
91.3 |
% |
|
19,245 |
|
0.9 |
% |
|
2,002,096 |
|
90.4 |
% |
Income from operations |
236,120 |
|
10.7 |
% |
|
19,245 |
|
0.9 |
% |
|
255,365 |
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 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 |
249,427 |
|
73.3 |
% |
|
936 |
|
0.3 |
% |
|
248,491 |
|
73.0 |
% |
Other
operating costs |
1,051 |
|
0.3 |
% |
|
- |
|
0.0 |
% |
|
1,051 |
|
0.3 |
% |
Selling and marketing expenses |
12,890 |
|
3.8 |
% |
|
85 |
|
0.0 |
% |
|
12,805 |
|
3.8 |
% |
General and administrative expenses |
36,305 |
|
10.7 |
% |
|
1,937 |
|
0.6 |
% |
|
34,368 |
|
10.1 |
% |
Pre-opening expenses |
11,001 |
|
3.2 |
% |
|
- |
|
0.0 |
% |
|
11,001 |
|
3.2 |
% |
Total
operating costs and expenses |
310,674 |
|
91.3 |
% |
|
2,958 |
|
0.9 |
% |
|
307,716 |
|
90.4 |
% |
Income from operations |
36,291 |
|
10.7 |
% |
|
2,958 |
|
0.9 |
% |
|
39,249 |
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 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 |
1,504,070 |
|
63.4 |
% |
|
4,460 |
|
0.2 |
% |
|
1,499,610 |
|
63.2 |
% |
Other
operating costs |
4,816 |
|
0.2 |
% |
|
- |
|
0.0 |
% |
|
4,816 |
|
0.2 |
% |
Selling and marketing expenses |
51,561 |
|
2.2 |
% |
|
321 |
|
0.0 |
% |
|
51,240 |
|
2.2 |
% |
General and administrative expenses |
153,725 |
|
6.5 |
% |
|
10,521 |
|
0.4 |
% |
|
143,204 |
|
6.1 |
% |
Pre-opening expenses |
67,632 |
|
2.9 |
% |
|
- |
|
0.0 |
% |
|
67,632 |
|
2.9 |
% |
Total
operating costs and expenses |
1,781,804 |
|
75.2 |
% |
|
15,302 |
|
0.6 |
% |
|
1,766,502 |
|
74.6 |
% |
Income from operations |
591,344 |
|
24.9 |
% |
|
15,302 |
|
0.6 |
% |
|
606,646 |
|
25.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
% |
|
|
Year Ended December 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 |
5,674,151 |
|
69.4 |
% |
|
19,725 |
|
0.2 |
% |
|
5,654,426 |
|
69.2 |
% |
Other
operating costs |
17,324 |
|
0.2 |
% |
|
- |
|
0.0 |
% |
|
17,324 |
|
0.2 |
% |
Selling and marketing expenses |
214,959 |
|
2.6 |
% |
|
1,530 |
|
0.0 |
% |
|
213,429 |
|
2.6 |
% |
General and administrative expenses |
690,970 |
|
8.5 |
% |
|
45,112 |
|
0.6 |
% |
|
645,858 |
|
7.9 |
% |
Pre-opening expenses |
206,454 |
|
2.5 |
% |
|
- |
|
0.0 |
% |
|
206,454 |
|
2.5 |
% |
Total
operating costs and expenses |
6,803,858 |
|
83.2 |
% |
|
66,367 |
|
0.8 |
% |
|
6,737,491 |
|
82.4 |
% |
Income from operations |
1,437,513 |
|
17.6 |
% |
|
66,367 |
|
0.8 |
% |
|
1,503,880 |
|
18.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 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 |
872,101 |
|
69.4 |
% |
|
3,031 |
|
0.2 |
% |
|
869,070 |
|
69.2 |
% |
Other
operating costs |
2,663 |
|
0.2 |
% |
|
- |
|
0.0 |
% |
|
2,663 |
|
0.2 |
% |
Selling and marketing expenses |
33,039 |
|
2.6 |
% |
|
235 |
|
0.0 |
% |
|
32,804 |
|
2.6 |
% |
General and administrative expenses |
106,200 |
|
8.5 |
% |
|
6,934 |
|
0.6 |
% |
|
99,266 |
|
7.9 |
% |
Pre-opening expenses |
31,731 |
|
2.5 |
% |
|
- |
|
0.0 |
% |
|
31,731 |
|
2.5 |
% |
Total
operating costs and expenses |
1,045,734 |
|
83.2 |
% |
|
10,200 |
|
0.8 |
% |
|
1,035,534 |
|
82.4 |
% |
Income from operations |
220,942 |
|
17.6 |
% |
|
10,200 |
|
0.8 |
% |
|
231,142 |
|
18.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year 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 |
4,932,173 |
|
75.4 |
% |
|
13,603 |
|
0.2 |
% |
|
4,918,570 |
|
75.2 |
% |
Other
operating costs |
7,606 |
|
0.1 |
% |
|
- |
|
0.0 |
% |
|
7,606 |
|
0.1 |
% |
Selling and marketing expenses |
146,525 |
|
2.2 |
% |
|
811 |
|
0.0 |
% |
|
145,714 |
|
2.2 |
% |
General and administrative expenses |
492,141 |
|
7.5 |
% |
|
41,022 |
|
0.6 |
% |
|
451,119 |
|
6.9 |
% |
Pre-opening expenses |
71,847 |
|
1.1 |
% |
|
- |
|
0.0 |
% |
|
71,847 |
|
1.1 |
% |
Total
operating costs and expenses |
5,650,292 |
|
86.3 |
% |
|
55,436 |
|
0.8 |
% |
|
5,594,856 |
|
85.5 |
% |
Income from operations |
870,899 |
|
13.3 |
% |
|
55,436 |
|
0.8 |
% |
|
926,335 |
|
14.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Lodging Group, Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
|
Quarter Ended |
|
Year Ended |
|
December 31, 2016 |
|
September 30,2017 |
|
December 31,
2017 |
|
December 31, 2016 |
|
December 31,
2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
(in thousands, except per share and per ADS
data) |
Net
income attributable to China Lodging Group, Limited (GAAP) |
125,858 |
|
470,061 |
|
229,419 |
|
35,261 |
|
804,615 |
|
1,237,202 |
|
190,155 |
|
Share-based compensation expenses |
12,527 |
|
15,302 |
|
19,245 |
|
2,958 |
|
55,436 |
|
66,367 |
|
10,200 |
|
Adjusted net income attributable to China Lodging Group, Limited
(non-GAAP) |
138,385 |
|
485,363 |
|
248,664 |
|
38,219 |
|
860,051 |
|
1,303,569 |
|
200,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (GAAP) |
|
|
|
|
|
|
|
Basic |
0.45 |
|
1.68 |
|
0.82 |
|
0.13 |
|
2.92 |
|
4.43 |
|
0.68 |
|
Diluted |
0.44 |
|
1.62 |
|
0.78 |
|
0.12 |
|
2.84 |
|
4.24 |
|
0.65 |
|
|
|
|
|
|
|
|
|
Earnings per ADS (GAAP) |
|
|
|
|
|
|
|
Basic |
1.81 |
|
6.72 |
|
3.28 |
|
0.50 |
|
11.70 |
|
17.72 |
|
2.72 |
|
Diluted |
1.76 |
|
6.50 |
|
3.13 |
|
0.48 |
|
11.38 |
|
16.95 |
|
2.60 |
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share (non-GAAP) |
|
|
|
|
|
|
|
Basic |
0.50 |
|
1.74 |
|
0.89 |
|
0.14 |
|
3.13 |
|
4.67 |
|
0.72 |
|
Diluted |
0.48 |
|
1.68 |
|
0.85 |
|
0.13 |
|
3.04 |
|
4.46 |
|
0.69 |
|
|
|
|
|
|
|
|
|
Adjusted
earnings per ADS (non-GAAP) |
|
|
|
|
|
|
|
Basic |
1.99 |
|
6.94 |
|
3.55 |
|
0.55 |
|
12.50 |
|
18.67 |
|
2.87 |
|
Diluted |
1.94 |
|
6.71 |
|
3.39 |
|
0.52 |
|
12.16 |
|
17.85 |
|
2.74 |
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in computation |
|
|
|
|
|
|
|
Basic |
277,473 |
|
279,631 |
|
279,861 |
|
279,861 |
|
275,139 |
|
279,272 |
|
279,272 |
|
Diluted |
285,887 |
|
289,317 |
|
298,903 |
|
298,903 |
|
282,889 |
|
293,074 |
|
293,074 |
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Year Ended |
|
December 31,
2016 |
|
September 30,2017 |
|
December 31,
2017 |
|
December 31,
2016 |
|
December 31,
2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands, except per share and per ADS
data) |
Net income attributable to China Lodging Group, Limited
(GAAP) |
125,858 |
|
|
470,061 |
|
|
229,419 |
|
|
35,261 |
|
|
804,615 |
|
|
1,237,202 |
|
|
190,155 |
|
Interest income |
(22,939 |
) |
|
(31,807 |
) |
|
(40,713 |
) |
|
(6,257 |
) |
|
(67,366 |
) |
|
(112,645 |
) |
|
(17,313 |
) |
Interest expense |
2,289 |
|
|
34,797 |
|
|
34,295 |
|
|
5,271 |
|
|
11,056 |
|
|
87,320 |
|
|
13,421 |
|
Income tax expense |
87,745 |
|
|
158,446 |
|
|
18,986 |
|
|
2,918 |
|
|
287,120 |
|
|
359,958 |
|
|
55,325 |
|
Depreciation and amortization |
173,826 |
|
|
218,081 |
|
|
208,756 |
|
|
32,085 |
|
|
694,894 |
|
|
789,252 |
|
|
121,306 |
|
EBITDA (non-GAAP) |
366,779 |
|
|
849,578 |
|
|
450,743 |
|
|
69,278 |
|
|
1,730,319 |
|
|
2,361,087 |
|
|
362,894 |
|
Share-based compensation |
12,527 |
|
|
15,302 |
|
|
19,245 |
|
|
2,958 |
|
|
55,436 |
|
|
66,367 |
|
|
10,200 |
|
Adjusted EBITDA (non-GAAP) |
379,306 |
|
|
864,880 |
|
|
469,988 |
|
|
72,236 |
|
|
1,785,755 |
|
|
2,427,454 |
|
|
373,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Lodging Group,
Limited |
|
Operational
Data |
|
|
|
|
As of |
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2016 |
|
2017 |
|
2017 |
|
Total hotels in
operation: |
3,269 |
|
3,656 |
|
3,746 |
|
Leased and owned
hotels |
624 |
|
684 |
|
671 |
|
Manachised
hotels |
2,471 |
|
2,766 |
|
2,874 |
|
Franchised
hotels |
174 |
|
206 |
|
201 |
|
Total hotel rooms in
operation |
331,347 |
|
372,464 |
|
379,675 |
|
Leased and owned
hotels |
78,160 |
|
86,568 |
|
85,018 |
|
Manachised
hotels |
237,094 |
|
265,701 |
|
275,065 |
|
Franchised
hotels |
16,093 |
|
20,195 |
|
19,592 |
|
Number of cities |
367 |
|
375 |
|
378 |
|
|
|
|
|
|
For the quarter ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2016 |
|
2017 |
|
2017 |
|
Occupancy rate (as a
percentage) |
|
|
|
Leased and owned
hotels |
85.5 |
% |
92.8 |
% |
87.2 |
% |
Manachised
hotels |
85.4 |
% |
94.1 |
% |
86.6 |
% |
Franchised
hotels |
68.1 |
% |
78.9 |
% |
72.1 |
% |
Blended |
84.7 |
% |
93.1 |
% |
86.0 |
% |
Average daily room
rate (in RMB) |
|
|
|
Leased and owned
hotels |
211 |
|
257 |
|
251 |
|
Manachised
hotels |
178 |
|
204 |
|
197 |
|
Franchised
hotels |
180 |
|
236 |
|
232 |
|
Blended |
186 |
|
218 |
|
211 |
|
RevPAR (in
RMB) |
|
|
|
Leased and owned
hotels |
181 |
|
238 |
|
219 |
|
Manachised
hotels |
152 |
|
192 |
|
170 |
|
Franchised
hotels |
123 |
|
186 |
|
167 |
|
Blended |
158 |
|
203 |
|
181 |
|
|
|
|
|
|
For the full year ended |
|
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
2017 |
|
|
Occupancy rate (as a
percentage) |
|
|
|
Leased and owned
hotels |
86.1 |
% |
89.0 |
% |
|
Manachised
hotels |
85.3 |
% |
89.1 |
% |
|
Franchised
hotels |
68.9 |
% |
73.1 |
% |
|
Blended |
84.9 |
% |
88.3 |
% |
|
Average daily room rate
(in RMB) |
|
|
|
Leased and owned
hotels |
208 |
|
237 |
|
|
Manachised
hotels |
177 |
|
191 |
|
|
Franchised
hotels |
182 |
|
216 |
|
|
Blended |
185 |
|
203 |
|
|
RevPAR (in RMB) |
|
|
|
Leased and owned
hotels |
179 |
|
211 |
|
|
Manachised
hotels |
151 |
|
171 |
|
|
Franchised
hotels |
125 |
|
158 |
|
|
Blended |
157 |
|
180 |
|
|
|
|
|
|
Same-hotel
Operational Data: like-for-like performance for leased and
manachised hotels opened for at least 18 months during the current
quarter and full year |
|
|
As of and for the quarter ended |
|
|
December 31, |
|
|
2016 |
|
2017 |
|
|
Total |
2,729 |
|
2,729 |
|
|
Leased and owned
hotels |
573 |
|
573 |
|
|
Manachised
hotels |
2,156 |
|
2,156 |
|
|
Occupancy rate (as a
percentage) |
86.7 |
% |
88.0 |
% |
|
Average daily room rate
(in RMB) |
187 |
|
196 |
|
|
RevPAR (in RMB) |
162 |
|
172 |
|
|
|
|
|
|
|
As of and for full year ended |
|
|
December 31, |
|
|
2016 |
|
2017 |
|
|
Total |
2,729 |
|
2,729 |
|
|
Leased and owned
hotels |
573 |
|
573 |
|
|
Manachised
hotels |
2,156 |
|
2,156 |
|
|
Occupancy rate (as a
percentage) |
87.4 |
% |
90.8 |
% |
|
Average daily room rate
(in RMB) |
184 |
|
191 |
|
|
RevPAR (in RMB) |
161 |
|
174 |
|
|
|
|
|
|
|
|
|
|
Hotel breakdown by segment |
|
|
|
|
|
|
|
|
Number of Hotels in Operation |
Number of Hotel Rooms in Operation |
|
As of December 31, 2017 |
As of December 31, 2017 |
Economy
hotels |
2,974 |
279,619 |
HanTing
Hotel |
2,244 |
223,121 |
Leased hotels |
454 |
52,300 |
Manachised hotels |
1,786 |
170,443 |
Franchised hotels |
4 |
378 |
Hi Inn |
396 |
26,063 |
Leased hotels |
30 |
2,727 |
Manachised hotels |
321 |
20,466 |
Franchised hotels |
45 |
2,870 |
Elan Hotel |
226 |
16,120 |
Manachised hotels |
193 |
13,963 |
Franchised hotels |
33 |
2,157 |
ibis Hotel |
100 |
13,474 |
Leased and owned hotels |
16 |
2,887 |
Manachised hotels |
38 |
4,522 |
Franchised hotels |
46 |
6,065 |
Orange
Hotel |
8 |
841 |
Leased hotels |
6 |
678 |
Manachised hotels |
1 |
85 |
Franchised hotels |
1 |
78 |
Midscale and upscale hotels |
772 |
100,056 |
JI Hotel |
390 |
53,054 |
Leased hotels |
91 |
15,868 |
Manachised hotels |
296 |
36,912 |
Franchised hotels |
3 |
274 |
Starway
Hotel |
174 |
16,914 |
Leased hotels |
2 |
386 |
Manachised hotels |
141 |
13,677 |
Franchised hotels |
31 |
2,851 |
Joya Hotel |
6 |
1,131 |
Leased hotels |
3 |
523 |
Manachised hotels |
3 |
608 |
Manxin Hotels
& Resorts |
11 |
1,150 |
Leased hotels |
2 |
277 |
Manachised hotels |
6 |
769 |
Franchised hotels |
3 |
104 |
HanTing Premium
Hotel |
5 |
446 |
Leased hotels |
1 |
98 |
Manachised hotels |
4 |
348 |
ibis Styles
Hotel |
13 |
1,841 |
Manachised hotels |
10 |
1,425 |
Franchised hotels |
3 |
416 |
Mercure
Hotel |
20 |
4,664 |
Leased hotels |
2 |
496 |
Manachised hotels |
15 |
3,546 |
Franchised hotels |
3 |
622 |
Novotel
Hotel |
4 |
1,697 |
Manachised
hotels |
3 |
1,374 |
Franchised
hotels |
1 |
323 |
Grand
Mercure |
4 |
882 |
Leased hotels |
1 |
360 |
Manachised hotels |
1 |
151 |
Franchised hotels |
2 |
371 |
Orange
Select |
103 |
12,648 |
Leased hotels |
44 |
5,732 |
Manachised hotels |
41 |
4,817 |
Franchised hotels |
18 |
2,099 |
Crystal
Orange |
42 |
5,629 |
Leased hotels |
19 |
2,686 |
Manachised hotels |
15 |
1,959 |
Franchised hotels |
8 |
984 |
Total |
3,746 |
379,675 |
|
|
|
|
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 |
|
|
December 31, |
December 31, |
yoy change |
December 31, |
yoy change |
December 31, |
yoy change |
|
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
|
2017 |
|
Economy
hotels |
2,406 |
2,406 |
146 |
156 |
6.9 |
% |
167 |
175 |
5.1 |
% |
87 |
% |
89 |
% |
1.5 |
% |
Leased and owned
hotels |
492 |
492 |
152 |
166 |
9.2 |
% |
178 |
189 |
6.3 |
% |
85 |
% |
88 |
% |
2.4 |
% |
Manachised and
franchised hotels |
1,914 |
1,914 |
144 |
152 |
6.1 |
% |
163 |
171 |
4.6 |
% |
88 |
% |
89 |
% |
1.2 |
% |
Midscale and upscale hotels |
323 |
323 |
249 |
261 |
4.8 |
% |
300 |
313 |
4.4 |
% |
83 |
% |
83 |
% |
0.3 |
% |
Leased
hotels |
81 |
81 |
314 |
321 |
2.4 |
% |
348 |
364 |
4.5 |
% |
90 |
% |
88 |
% |
-1.9 |
% |
Manachised and franchised hotels |
242 |
242 |
217 |
231 |
6.5 |
% |
273 |
286 |
4.7 |
% |
79 |
% |
81 |
% |
1.4 |
% |
Total |
2,729 |
2,729 |
162 |
172 |
6.5 |
% |
187 |
196 |
4.9 |
% |
87 |
% |
88 |
% |
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hotels in operation |
Same-hotel RevPAR |
|
Same-hotel ADR |
|
Same-hotel Occupancy |
|
|
As of |
For the year ended |
|
For the year ended |
|
For the year ended |
|
|
December 31, |
December 31, |
yoy change |
December 31, |
yoy change |
December 31, |
yoy change |
|
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
|
2017 |
|
Economy hotels |
2,406 |
2,406 |
147 |
158 |
7.4 |
% |
168 |
173 |
3.3 |
% |
88 |
% |
92 |
% |
3.5 |
% |
Leased and owned
hotels |
492 |
492 |
154 |
167 |
8.4 |
% |
178 |
185 |
3.9 |
% |
86 |
% |
90 |
% |
3.7 |
% |
Manachised and
franchised hotels |
1,914 |
1,914 |
145 |
155 |
7.1 |
% |
164 |
169 |
3.0 |
% |
88 |
% |
92 |
% |
3.5 |
% |
Midscale and upscale hotels |
323 |
323 |
245 |
265 |
8.2 |
% |
291 |
307 |
5.5 |
% |
84 |
% |
86 |
% |
2.1 |
% |
Leased
hotels |
81 |
81 |
300 |
320 |
6.8 |
% |
333 |
354 |
6.3 |
% |
90 |
% |
91 |
% |
0.4 |
% |
Manachised and franchised hotels |
242 |
242 |
213 |
232 |
9.3 |
% |
263 |
277 |
5.1 |
% |
81 |
% |
84 |
% |
3.2 |
% |
Total |
2,729 |
2,729 |
161 |
174 |
7.7 |
% |
184 |
191 |
3.7 |
% |
87 |
% |
91 |
% |
3.3 |
% |
|
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