OREANDA-NEWS. 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 preliminary results for the hotel operation in the second quarter ended June 30, 2016.

Hotel Development

  Number of hotels in operation           Number of rooms in operation
  Opened  Closed (1)  Net added  As of            Net added  As of 
  in Q2 2016 in Q2 2016 in Q2 2016 June 30, 2016           in Q2 2016 June 30, 2016
Leased and owned hotels 2   (2 ) - 627             (140 ) 77,123
Manachised and franchised hotels 172   (47 ) 125 2,487             10,523   237,688
Total   174     (49 )   125   3,114               10,383    314,811
(1) Reasons for closures include contract expiration, operating loss and others.
                  
  Number of hotels in pipeline
as of June 30, 2016
Leased hotels 23
Manachised and franchised hotels 563
Total(2) 586
(2) Including 31 hotels under brands of ibis, ibis Styles, Mercure and Novotel.

Operating Metrics

  For the quarter ended
  June 30, March 31, June 30,
  2015 2016 2016
Occupancy rate (as a percentage)      
Leased and owned hotels   87 %   82 %   87 %
Manachised hotels   85 %   81 %   85 %
Franchised hotels   74 %   62 %   71 %
Blended   86 %   80 %   85 %
Average daily room rate (3) (in RMB)      
Leased and owned hotels   201     193     210  
Manachised hotels   172     165     175  
Franchised hotels   171     169     181  
Blended   181     172     184  
RevPAR (3) (in RMB)      
Leased and owned hotels   176     159     182  
Manachised hotels   146     133     150  
Franchised hotels   126     105     128  
Blended   156     139     157  
(3) Value-added tax ("VAT") has been implemented for hospitality industry to replace business tax in China, effective May 1, 2016. The Company's room rates quoted and received from customers are tax-inclusive (business tax or VAT) before and after the implementation of VAT. For comparison purposes, the ADR and RevPAR disclosed in this release are based on the tax-inclusive rates.
Like-for-like performance for leased and manachised hotels opened for at least 18 months during the current quarter
         
  As of and for the quarter ended    
  June 30, yoy  
    2015     2016   change  
Total   1,899     1,899      
Leased hotels   590     590      
Manachised and franchised hotels   1,309     1,309      
Occupancy rate (as a percentage)   88 %   88 %   -0.4 %  
Average daily room rate (in RMB)   183     181     -0.7 %  
RevPAR (in RMB)   161     159     -1.2 %  

Business Update by Segment

Hotel breakdown by segment    
   
  Number of hotels in operation
  Net added  As of 
  in Q2 2016 June 30, 2016
Economy hotels     84     2,732
HanTing Hotel   46   2,105
Leased hotels   (1 ) 492
Manachised hotels   47   1,613
Hi Inn   26   358
Leased hotels   (1 ) 37
Manachised hotels   21   285
Franchised hotels   6   36
Elan Hotel   11   180
Manachised hotels   7   149
Franchised hotels   4   31
ibis Hotel   1   83
Leased hotels   1   13
Manachised hotels   4   13
Franchised hotels   (4 ) 57
ibis Styles Hotel   -   6
Manachised hotels   -   2
Franchised hotels   -   4
Midscale and upscale hotels     41     382
JI Hotel   27   229
Leased hotels   1   78
Manachised hotels   24   149
Franchised hotels   2   2
Starway Hotel   13   136
Leased hotels   -   3
Manachised hotels   13   84
Franchised hotels   -   49
Joya Hotel   1   5
Leased hotels   -   2
Manachised hotels   1   3
Manxin Hotels & Resorts   -   2
Leased hotels   -   1
Manachised hotels   -   1
Mercure Hotel   -   8
Leased hotels   -   1
Manachised hotels   -   6
Franchised hotels   -   1
Novotel Hotel   -   1
Leased hotels   -   -
Manachised hotels   -   1
Grand Mercure   -   1
Franchised hotels   -   1
Total     125     3,114
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
  2015 2016 2015 2016 2015 2016   2015     2016  
Economy hotels 1,739 1,739 152 148   -3.0 % 172 168   -1.9 %   89 %   88 %   -1.0 %
Leased hotels 522 522 159 152   -4.1 % 179 177   -1.6 %   88 %   86 %   -2.3 %
Manachised and franchised hotels 1,217 1,217 149 146   -2.4 % 168 164   -2.0 %   89 %   89 %   -0.3 %
Midscale and upscale hotels 160 160 230 250   8.6 % 281 290   2.9 %   82 %   86 %   4.5 %
Leased hotels 68 68 263 292   11.2 % 310 322   3.8 %   85 %   91 %   6.1 %
Manachised and franchised hotels 92 92 195 204   4.6 % 248 251   0.9 %   79 %   81 %   2.8 %
Total 1,899 1,899 161 159   -1.2 % 183 181   -0.7 %   88 %   88 %   -0.4 %

About China Lodging Group, Limited
China Lodging Group, Limited is a leading hotel operator and franchisor in China under 12 brand names. As of June 30, 2016, the Company had 3,114 hotels or 314,811 rooms in operation in 357 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 Hotels & Resorts. 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, manachised and franchised models. Under the lease model, the Company directly operates hotels typically located on leased 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 June 30, 2016, China Lodging Group operates 24 percent of its hotel rooms under lease model, 76 percent under manachise and franchise models.