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 third quarter ended September 30,
2017.
Third Quarter of 2017 Operational Highlights
• During the third quarter of 2017, China Lodging Group opened
167 hotels, including 7 leased (“leased-and-operated”) hotels and
160 manachised (“franchised-and-managed”) hotels and franchised
hotels.
The Company closed a total of 52 hotels, which
included 9 leased hotels and 43 manachised and franchised hotels,
during the third 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
13 hotels on a temporary basis for brand upgrade purposes and
permanently removed 8 hotels from its network for their
non-compliance with the brand and operating standards. These hotels
were mainly related to the HanTing and Elan 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 accounted for the closure
of 22 hotels. c) Operating losses from hotels located
mainly in selected 3rd or lower tier cities which accounted for the
closure of 9 hotels.
• As of September 30, 2017, the Company had 684 leased and
owned hotels, 2,766 manachised hotels, and 206 franchised hotels in
operation in 375 cities. The number of hotel rooms in operation
totaled 372,464, an increase of 15.4% from a year ago. As of
September 30, 2017, the Company had a total number of 606 hotels
contracted or under construction, including 38 leased hotels and
568 manachised and franchised hotels.• The ADR, which is
defined as the average daily rate for all hotels in operation, was
RMB218 in the third quarter of 2017, compared with RMB194 in the
third quarter of 2016 and RMB199 in the previous quarter. The
year-over-year increase of 12.1% 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 increase resulted mainly from
seasonality.• The occupancy rate for all hotels in operation
was 93.1% in the third quarter of 2017, compared with 88.9% in the
third quarter of 2016 and 90.1% in the previous quarter. The
year-over-year increase of 4.2-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 RMB203
in the third quarter of 2017, compared with RMB173 in the third
quarter of 2016 and RMB179 in the previous quarter. The
year-over-year increase of 17.3% 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 RMB193 for the third
quarter of 2017, representing a 9.5% increase from RMB177 for the
third quarter of 2016, with a 4.5% increase in ADR and a
4.4-percentage-point increase in occupancy rate. The midscale and
upscale hotels registered a 9.5% same-hotel RevPAR improvement,
driven by a 5.2% increase in ADR and a 3.6-percentage-point
increase in occupancy rate. The economy hotels also registered a
9.4% same-hotel RevPAR improvement, driven by a 4.3% increase in
ADR and a 4.5-percentage-point increase in occupancy rate. Crystal
Orange hotels3 will not be counted in the same-hotel RevPAR sample
until they are in Huazhu system for 18 months.• As of
September 30, 2017, the Company’s loyalty program had approximately
97 million members, who contributed approximately 76% of room
nights sold during the third quarter of 2017. In the third quarter
of 2017, approximately 86% of room nights were sold through the
Company’s own direct channels. The strong leisure travel demands as
well as the expansion of our newly launched midscale brands attract
increasing bookings from third party channels. “Fueled by strong
domestic travel demand, our same-hotel RevPAR growth accelerated to
9.5% in the third quarter, the highest in the past five years. The
consumption upgrade in China continued to benefit both our economy
and midscale hotels. Our flagship economy brand, HanTing, recorded
a same-hotel RevPAR growth of 9.8%, driven by upgraded HanTing
hotels. In addition, we have also recently rolled-out new models
for our other two economy hotel brands, Elan and Hi Inn. We expect
our upgraded economy hotel brands will provide better customer
experience.” said Ms. Jenny Zhang, Chief Executive Officer of China
Lodging Group.“In September, we had completed the integration of
Crystal Orange into Huazhu’s platform, including operational and
booking systems, membership program and back-office supports. In
the third quarter, Crystal Orange hotels posted a 14.5%
year-over-year growth in same-hotel RevPAR. At the end of the third
quarter, midscale and upscale rooms accounted for 25% and 66% of
our total room count in operation and in pipeline, respectively. ”
Ms. Zhang added.
Third Quarter of 2017 Financial
Results
(RMB in
thousands) |
Q3 2016 |
Q2 2017 |
Q3 2017 |
Revenues: |
|
|
|
Leased
and owned hotels |
1,390,334 |
1,543,117 |
1,857,846 |
Manachised and franchised hotels |
373,239 |
435,552 |
506,720 |
Others |
10,233 |
10,512 |
8,445 |
Net
revenues |
1,773,806 |
1,989,181 |
2,373,011 |
Net revenues for the third
quarter of 2017 were RMB2,373.0 million (US$356.7 million),
representing a 33.8% year-over-year increase and a 19.3% 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.
Net revenues from leased and owned
hotels for the third quarter of 2017 were RMB1,857.8
million (US$279.2 million), representing an 33.6% year-over-year
increase and a 20.4% sequential increase.
Net revenues from manachised and
franchised hotels for the third quarter of 2017 were
RMB506.7 million (US$76.2 million), representing a 35.8%
year-over-year increase and a 16.3% sequential increase. Net
revenues from manachised and franchised hotels accounted for 21.4%
of the Company’s net revenues in the third quarter of 2017, up from
21.0% 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 RMB8.4 million (US$1.3
million) in the third quarter of 2017.
(RMB in
thousands) |
Q3 2016 |
Q2 2017 |
Q3 2017 |
Operating costs and expenses: |
|
|
|
Hotel
operating costs |
1,249,701 |
1,348,270 |
1,504,070 |
Other
operating costs |
2,258 |
3,739 |
4,816 |
Selling
and marketing expenses |
31,264 |
45,262 |
51,561 |
General
and administrative expenses |
123,233 |
135,689 |
153,725 |
Pre-opening expenses |
16,710 |
43,134 |
67,632 |
Total
operating costs and expenses |
1,423,166 |
1,576,094 |
1,781,804 |
Hotel operating costs for the
third quarter of 2017 were RMB1,504.1 million (US$226.1 million),
compared to RMB1,249.7 million in the third quarter of 2016 and
RMB1,348.3 million in the previous quarter, representing a 20.4%
year-over-year increase and an 11.6% sequential increase. Total
hotel operating costs excluding share-based compensation expenses
(non-GAAP) for the third quarter of 2017 were RMB1,499.6 million
(US$225.4 million), representing 63.2% of net revenues, compared to
70.3% for the third quarter in 2016 and 67.6% for the previous
quarter. The year-over-year 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 third quarter of 2017 were RMB51.6 million (US$7.8
million), compared to RMB31.3 million in the third quarter of 2016
and RMB45.3 million in the previous quarter. Selling and marketing
expenses excluding share-based compensation expenses (non-GAAP) for
the third quarter of 2017 were RMB51.2 million (US$7.7 million), or
2.2% of net revenues, compared to 1.8% for the third quarter of
2016 and 2.3% for the previous quarter.
General and administrative
expenses for the third quarter of 2017 were RMB153.7
million (US$23.1 million), compared to RMB123.2 million in the
third quarter of 2016 and RMB135.7 million in the previous quarter.
General and administrative expenses excluding share-based
compensation expenses (non-GAAP) for the third quarter of 2017 were
RMB143.2 million (US$21.5 million), representing 6.1% of net
revenues, compared with 6.5% of net revenues in the third quarter
of 2016 and 6.2% in the previous quarter.
Pre-opening expenses for the
third quarter of 2017 were RMB67.6 million (US$10.2 million),
representing a 304.7% year-over-year increase and a 56.8%
sequential increase. The year-over-year and sequential increases
were mainly because more midscale or upscale leased hotels and
Crystal Orange hotels were under construction in the third quarter
of 2017.
Income from operations for the
third quarter of 2017 was RMB591.3 million (US$88.9 million),
compared to RMB351.0 million in the third quarter of 2016 and
RMB442.7 million in the previous quarter. The operating margin,
defined as income from operations as percentage of net revenues,
for the third quarter of 2017 was 24.9%, compared with 19.8% in the
third quarter of 2016 and 22.3% 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 third quarter of 2017 was RMB470.1
million (US$70.7 million), as 19.8% of net revenues, compared to
RMB293.9 million, as 16.6% of net revenues in the third quarter of
2016 and RMB389.6 million, as 19.6% of net revenues in the previous
quarter. This demonstrated a 60.0% year-over-year increase and a
20.6% 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.
Basic and diluted earnings per
share/ADS. For the third quarter of 2017, basic earnings
per share were RMB1.68 (US$0.25) and diluted earnings per share
were RMB1.62 (US$0.24); basic earnings per ADS were RMB6.72
(US$1.01) and diluted earnings per ADS were RMB6.50 (US$0.98). For
the third quarter of 2017, excluding share-based compensation
expenses, adjusted basic earnings per share (non-GAAP) were RMB1.74
(US$0.26) and adjusted diluted earnings per share (non-GAAP) were
RMB1.68 (US$0.25); adjusted basic earnings per ADS (non-GAAP) were
RMB6.94 (US$1.04) and adjusted diluted earnings per ADS (non-GAAP)
were RMB6.71 (US$1.01).
EBITDA (non-GAAP) for the third
quarter of 2017 was RMB849.6 million (US$127.7 million), as 35.8%
of net revenues, compared with RMB546.7 million, as 30.8% of net
revenues in the third quarter of 2016 and RMB703.1 million, as
35.3% of net revenues in the previous quarter. This demonstrated a
55.4% year-over-year increase and a 20.8% sequential
increase.
Cash flow. Operating cash
inflow for the third quarter of 2017 was RMB888.5 million (US$133.5
million). Investing cash outflow for the third quarter of 2017 was
RMB519.9 million (US$78.1 million).
Cash and cash equivalents and Restricted
cash. As of September 30, 2017, the Company had a total
balance of cash and cash equivalents and restricted cash of
RMB3,826.6 million (US$575.1 million).
Debt financing. As of September
30, 2017, the Company had a total loan balance of RMB3,716.7
million (US$558.6 million), including a syndicated loan of US$500.0
million for the acquisition of Crystal Orange, which was drawn down
in May 2017.
Guidance For the fourth quarter
of 2017, the Company expects net revenues to grow 29% to 32%
year-over-year. For the full year of 2017, the Company projects net
revenues growth in the range of 24% to 25%.
The Company reaffirms gross opening of
approximately 500 hotels in 2017, on top of the 138 hotels added to
its network through the Crystal Orange acquisition. The Company
anticipates to increase the gross opening to 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 8 p.m. ET,
Tuesday, November 28, 2017 (or 9 a.m. on Wednesday, November 29,
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 7888218. 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
December 6, 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 7888218.
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 September 30, 2017, the
Company had 3,656 hotels or 372,464 rooms in operation in 375
cities. With a primary focus on economy and midscale hotel
segments, China Lodging Group's brands include Hi Inn, HanTing
Hotel, Elan Hotel, HanTing Plus Hotel, JI Hotel, Starway Hotel,
Manxin Hotel, Joya Hotel, Orange Hotel, Orange Hotel Select,
Crystal Orange Hotel, and VUE 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 September 30, 2017, China Lodging
Group operates 23 percent of its hotel rooms under 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, 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$1.00=RMB6.6533 on
September 29, 2017 as set forth in H.10 statistical release of the
U.S. Federal Reserve Board and available at
http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
2 Each ADS represents four of the Company’s ordinary
shares.
3 As of September 30, 2017, the Company is still in the process
of evaluating the purchase price allocation for Crystal Orange.
Hence, the financial results for the second and third quarters of
2017 are based on the preliminary numbers for the purchase price
allocation and are subject to change upon finalization.
---Financial Tables and Operational Data
Follow—
|
China Lodging Group, Limited |
Unaudited Condensed Consolidated Balance
Sheets |
|
December 31, 2016 |
|
September 30, 2017 |
|
RMB |
|
RMB |
|
|
US$ |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
3,235,007 |
|
|
3,333,108 |
|
|
500,971 |
|
Restricted cash |
500 |
|
|
493,512 |
|
|
74,176 |
|
Short-term investments |
- |
|
|
107,729 |
|
|
16,192 |
|
Accounts receivable, net |
141,649 |
|
|
171,536 |
|
|
25,782 |
|
Loan receivables |
22,410 |
|
|
86,691 |
|
|
13,030 |
|
Amounts due from related parties |
98,453 |
|
|
88,544 |
|
|
13,308 |
|
Prepaid rent |
446,127 |
|
|
528,381 |
|
|
79,416 |
|
Inventories |
21,606 |
|
|
27,712 |
|
|
4,164 |
|
Other current assets |
208,929 |
|
|
256,941 |
|
|
38,619 |
|
Total
current assets |
4,174,681 |
|
|
5,094,154 |
|
|
765,658 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
3,710,468 |
|
|
4,478,055 |
|
|
673,058 |
|
Intangible assets, net |
342,694 |
|
|
1,800,250 |
|
|
270,580 |
|
Land
use rights |
145,521 |
|
|
141,467 |
|
|
21,263 |
|
Long-term investments |
1,064,321 |
|
|
1,485,610 |
|
|
223,289 |
|
Goodwill |
171,504 |
|
|
2,136,710 |
|
|
321,150 |
|
Loan
receivables |
7,269 |
|
|
37,021 |
|
|
5,564 |
|
Other
assets |
200,492 |
|
|
369,351 |
|
|
55,515 |
|
Deferred tax assets |
176,414 |
|
|
236,827 |
|
|
35,595 |
|
Total
assets |
9,993,364 |
|
|
15,779,445 |
|
|
2,371,672 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Short-term debt |
298,291 |
|
|
132,738 |
|
|
19,951 |
|
Long-term
debt, current portion |
- |
|
|
133 |
|
|
20 |
|
Accounts
payable |
584,731 |
|
|
656,553 |
|
|
98,681 |
|
Amounts
due to related parties |
11,058 |
|
|
32,656 |
|
|
4,908 |
|
Salary
and welfare payables |
274,259 |
|
|
203,486 |
|
|
30,584 |
|
Deferred
revenue |
749,793 |
|
|
822,586 |
|
|
123,636 |
|
Accrued
expenses and other current liabilities |
895,837 |
|
|
1,237,853 |
|
|
186,051 |
|
Dividends
payable |
- |
|
|
300,000 |
|
|
45,090 |
|
Income
tax payable |
152,112 |
|
|
232,722 |
|
|
34,979 |
|
Total
current liabilities |
2,966,081 |
|
|
3,618,727 |
|
|
543,900 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
- |
|
|
3,583,793 |
|
|
538,649 |
|
Deferred
rent |
1,023,843 |
|
|
1,280,479 |
|
|
192,458 |
|
Deferred
revenue |
166,963 |
|
|
167,349 |
|
|
25,153 |
|
Other
long-term liabilities |
323,991 |
|
|
363,226 |
|
|
54,593 |
|
Deferred
tax liabilities |
96,329 |
|
|
454,696 |
|
|
68,341 |
|
Total
liabilities |
4,577,207 |
|
|
9,468,270 |
|
|
1,423,094 |
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Ordinary shares |
204 |
|
|
205 |
|
|
31 |
|
Treasury shares |
(107,331 |
) |
|
(107,331 |
) |
|
(16,132 |
) |
Additional paid-in capital |
3,699,056 |
|
|
3,779,065 |
|
|
567,999 |
|
Retained earnings |
1,812,174 |
|
|
2,519,957 |
|
|
378,753 |
|
Accumulated other comprehensive income (loss) |
(4,503 |
) |
|
98,063 |
|
|
14,739 |
|
Total
China Lodging Group, Limited shareholders' equity |
5,399,600 |
|
|
6,289,959 |
|
|
945,390 |
|
Noncontrolling interest |
16,557 |
|
|
21,216 |
|
|
3,188 |
|
Total
equity |
5,416,157 |
|
|
6,311,175 |
|
|
948,578 |
|
Total
liabilities and equity |
9,993,364 |
|
|
15,779,445 |
|
|
2,371,672 |
|
|
China Lodging Group, Limited |
Unaudited Condensed Consolidated Statements of
Comprehensive Income |
|
Quarter Ended |
|
September 30, 2016 |
|
June 30, 2017 |
|
September 30, 2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands, except per share and per ADS
data) |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased
and owned hotels |
1,390,334 |
|
|
1,543,117 |
|
|
1,857,846 |
|
|
279,237 |
|
Manachised and franchised hotels |
373,239 |
|
|
435,552 |
|
|
506,720 |
|
|
76,161 |
|
Others |
10,233 |
|
|
10,512 |
|
|
8,445 |
|
|
1,269 |
|
Net
revenues |
1,773,806 |
|
|
1,989,181 |
|
|
2,373,011 |
|
|
356,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
Hotel
operating costs: |
|
|
|
|
Rents |
(458,946 |
) |
|
(502,353 |
) |
|
(533,285 |
) |
|
(80,153 |
) |
Utilities |
(85,953 |
) |
|
(69,942 |
) |
|
(104,284 |
) |
|
(15,674 |
) |
Personnel
costs |
(282,911 |
) |
|
(329,025 |
) |
|
(366,019 |
) |
|
(55,013 |
) |
Depreciation and amortization |
(171,089 |
) |
|
(185,419 |
) |
|
(214,069 |
) |
|
(32,175 |
) |
Consumables, food and beverage |
(122,071 |
) |
|
(137,139 |
) |
|
(150,458 |
) |
|
(22,614 |
) |
Others |
(128,731 |
) |
|
(124,392 |
) |
|
(135,955 |
) |
|
(20,434 |
) |
Total
hotel operating costs |
(1,249,701 |
) |
|
(1,348,270 |
) |
|
(1,504,070 |
) |
|
(226,063 |
) |
Other
operating costs |
(2,258 |
) |
|
(3,739 |
) |
|
(4,816 |
) |
|
(725 |
) |
Selling
and marketing expenses |
(31,264 |
) |
|
(45,262 |
) |
|
(51,561 |
) |
|
(7,750 |
) |
General
and administrative expenses |
(123,233 |
) |
|
(135,689 |
) |
|
(153,725 |
) |
|
(23,105 |
) |
Pre-opening expenses |
(16,710 |
) |
|
(43,134 |
) |
|
(67,632 |
) |
|
(10,165 |
) |
Total
operating costs and expenses |
(1,423,166 |
) |
|
(1,576,094 |
) |
|
(1,781,804 |
) |
|
(267,808 |
) |
Other
operating income (expense), net |
399 |
|
|
29,619 |
|
|
137 |
|
|
21 |
|
Income
from operations |
351,039 |
|
|
442,706 |
|
|
591,344 |
|
|
88,880 |
|
Interest
income |
19,154 |
|
|
21,792 |
|
|
31,807 |
|
|
4,781 |
|
Interest
expense |
(2,158 |
) |
|
(15,870 |
) |
|
(34,797 |
) |
|
(5,230 |
) |
Other
income, net |
11,577 |
|
|
74,312 |
|
|
51,123 |
|
|
7,684 |
|
Foreign
exchange gain (loss) |
1,800 |
|
|
(4,577 |
) |
|
(5,833 |
) |
|
(877 |
) |
Income
before income taxes |
381,412 |
|
|
518,363 |
|
|
633,644 |
|
|
95,238 |
|
Income
tax expense |
(94,204 |
) |
|
(130,183 |
) |
|
(158,446 |
) |
|
(23,815 |
) |
Income
(Loss) from equity method investments |
2,277 |
|
|
(978 |
) |
|
(3,279 |
) |
|
(493 |
) |
Net
income |
289,485 |
|
|
387,202 |
|
|
471,919 |
|
|
70,930 |
|
Less:
net loss (income) attributable to noncontrolling interest |
4,384 |
|
|
2,437 |
|
|
(1,858 |
) |
|
(279 |
) |
Net
income attributable to China Lodging Group, Limited |
293,869 |
|
|
389,639 |
|
|
470,061 |
|
|
70,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income |
|
|
|
|
Unrealized securities holding gains (losses), net of tax |
10,395 |
|
|
(13,511 |
) |
|
(5,757 |
) |
|
(865 |
) |
Reclassification of gains realized to net income, net of tax |
- |
|
|
(1,545 |
) |
|
- |
|
|
- |
|
Foreign
currency translation adjustments, net of tax |
(1,547 |
) |
|
46,190 |
|
|
71,077 |
|
|
10,683 |
|
Comprehensive income |
298,333 |
|
|
418,336 |
|
|
537,239 |
|
|
80,748 |
|
Comprehensive loss (income) attributable to noncontrolling
interest |
4,384 |
|
|
2,437 |
|
|
(1,858 |
) |
|
(279 |
) |
Comprehensive income
attributable to China Lodging Group, Limited |
302,717 |
|
|
420,773 |
|
|
535,381 |
|
|
80,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
Basic |
1.06 |
|
|
1.40 |
|
|
1.68 |
|
|
0.25 |
|
Diluted |
1.03 |
|
|
1.35 |
|
|
1.62 |
|
|
0.24 |
|
|
|
|
|
|
Earnings
per ADS: |
|
|
|
|
Basic |
4.24 |
|
|
5.58 |
|
|
6.72 |
|
|
1.01 |
|
Diluted |
4.12 |
|
|
5.41 |
|
|
6.50 |
|
|
0.98 |
|
|
|
|
|
|
Weighted average number of shares used in computation: |
|
|
Basic |
277,169 |
|
|
279,101 |
|
|
279,631 |
|
|
279,631 |
|
Diluted |
285,426 |
|
|
288,316 |
|
|
289,317 |
|
|
289,317 |
|
|
China Lodging Group, Limited |
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
Quarter Ended |
|
September 30, 2016 |
|
June 30, 2017 |
|
September 30, 2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands) |
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
289,485 |
|
|
387,202 |
|
|
471,919 |
|
|
70,930 |
|
Adjustments to reconcile net income to net cash
provided by operating activities: |
Share-based compensation |
11,813 |
|
|
16,021 |
|
|
15,302 |
|
|
2,300 |
|
Depreciation and amortization |
175,637 |
|
|
189,210 |
|
|
218,081 |
|
|
32,778 |
|
Deferred taxes |
6,426 |
|
|
(916 |
) |
|
2,823 |
|
|
424 |
|
Bad debt expenses |
(964 |
) |
|
601 |
|
|
- |
|
|
- |
|
Deferred rent |
20,923 |
|
|
48,485 |
|
|
42,063 |
|
|
6,322 |
|
Loss from disposal of property and equipment |
1,252 |
|
|
11,388 |
|
|
- |
|
|
- |
|
Impairment loss |
51,457 |
|
|
44,439 |
|
|
32,294 |
|
|
4,854 |
|
Loss (Income) from equity method investments |
(2,277 |
) |
|
978 |
|
|
3,279 |
|
|
493 |
|
Investment loss (gain) |
1,989 |
|
|
(37,773 |
) |
|
(50,781 |
) |
|
(7,632 |
) |
Excess tax benefit from share-based compensation |
(3,656 |
) |
|
(8,200 |
) |
|
(9,681 |
) |
|
(1,455 |
) |
Changes in operating assets and liabilities, net of
effect of acquisitions: |
Accounts receivable |
(4,114 |
) |
|
(4,904 |
) |
|
(7,798 |
) |
|
(1,172 |
) |
Prepaid rent |
(22,304 |
) |
|
3,770 |
|
|
(25,934 |
) |
|
(3,898 |
) |
Inventories |
(565 |
) |
|
(4,697 |
) |
|
5,527 |
|
|
830 |
|
Amounts due from related parties |
1 |
|
|
(3,553 |
) |
|
(6,465 |
) |
|
(972 |
) |
Other current assets |
(21,681 |
) |
|
4,362 |
|
|
(16,828 |
) |
|
(2,529 |
) |
Other assets |
(6,451 |
) |
|
(14,403 |
) |
|
(23,696 |
) |
|
(3,562 |
) |
Accounts payable |
(1,107 |
) |
|
1,432 |
|
|
11,114 |
|
|
1,670 |
|
Amounts due to related parties |
1,764 |
|
|
(752 |
) |
|
311 |
|
|
47 |
|
Salary and welfare payables |
(27,150 |
) |
|
57,289 |
|
|
(42,850 |
) |
|
(6,440 |
) |
Deferred revenue |
(42,477 |
) |
|
(14,048 |
) |
|
23,457 |
|
|
3,526 |
|
Accrued expenses and other current liabilities |
126,971 |
|
|
35,123 |
|
|
186,092 |
|
|
27,970 |
|
Income tax payable |
54,895 |
|
|
83,089 |
|
|
47,266 |
|
|
7,104 |
|
Other long-term liabilities |
10,319 |
|
|
11,886 |
|
|
12,984 |
|
|
1,952 |
|
Net
cash provided by operating activities |
620,186 |
|
|
806,029 |
|
|
888,479 |
|
|
133,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
Purchases of property and equipment |
(108,719 |
) |
|
(156,840 |
) |
|
(210,235 |
) |
|
(31,599 |
) |
Purchases of intangibles |
(5,122 |
) |
|
(247 |
) |
|
(2,702 |
) |
|
(406 |
) |
Acquisitions, net of cash received |
(2,926 |
) |
|
(2,980,236 |
) |
|
- |
|
|
- |
|
Purchase of long-term investments |
(17,130 |
) |
|
(216,917 |
) |
|
(175,300 |
) |
|
(26,348 |
) |
Proceeds from maturity/sale of long-terminvestments |
4,553 |
|
|
87,593 |
|
|
110 |
|
|
17 |
|
Payment for shareholder loan to joint venture |
(81 |
) |
|
(775 |
) |
|
(30,370 |
) |
|
(4,565 |
) |
Collection of shareholder loan from joint venture |
9,285 |
|
|
48,500 |
|
|
71,355 |
|
|
10,725 |
|
Purchase of short-term investments |
- |
|
|
- |
|
|
(95,802 |
) |
|
(14,399 |
) |
Payment for the origination of loan receivables |
(3,020 |
) |
|
(47,000 |
) |
|
(75,992 |
) |
|
(11,422 |
) |
Proceeds from collection of loan receivables |
5,401 |
|
|
4,526 |
|
|
25,021 |
|
|
3,761 |
|
Increase in restricted cash |
358,343 |
|
|
(467,000 |
) |
|
(26,012 |
) |
|
(3,910 |
) |
Net
cash provided by (used in) investing activities |
240,584 |
|
|
(3,728,396 |
) |
|
(519,927 |
) |
|
(78,146 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Lodging Group,
Limited |
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
Quarter Ended |
|
September 30, 2016 |
|
June 30, 2017 |
|
September 30, 2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of ordinary shares upon exercise of
options |
3,299 |
|
|
4,428 |
|
|
580 |
|
|
87 |
|
Proceeds from short-term debt |
- |
|
|
135,488 |
|
|
- |
|
|
- |
|
Repayment of short-term debt |
(332,555 |
) |
|
(266,764 |
) |
|
(26,913 |
) |
|
(4,045 |
) |
Proceeds from long-term debt |
- |
|
|
3,633,174 |
|
|
- |
|
|
- |
|
Funds advanced from noncontrolling interestholders |
- |
|
|
13,950 |
|
|
11,913 |
|
|
1,791 |
|
Repayment of funds advanced fromnoncontrolling interest
holders |
- |
|
|
(1,677 |
) |
|
(7,053 |
) |
|
(1,060 |
) |
Contribution from noncontrolling interest holders |
800 |
|
|
6,631 |
|
|
890 |
|
|
134 |
|
Dividends paid to noncontrolling interest holders |
(1,935 |
) |
|
(1,680 |
) |
|
(240 |
) |
|
(36 |
) |
Excess tax benefit from share-based compensation |
3,656 |
|
|
8,200 |
|
|
9,681 |
|
|
1,455 |
|
Net
cash provided by (used in) financing activities |
(326,735 |
) |
|
3,531,750 |
|
|
(11,142 |
) |
|
(1,674 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cashequivalents |
1,444 |
|
|
(4,500 |
) |
|
(4,677 |
) |
|
(703 |
) |
Net
increase in cash and cash equivalents |
535,479 |
|
|
604,883 |
|
|
352,733 |
|
|
53,017 |
|
Cash
and cash equivalents at the beginning of the period |
2,466,352 |
|
|
2,375,492 |
|
|
2,980,375 |
|
|
447,954 |
|
Cash
and cash equivalents at the end of the period |
3,001,831 |
|
|
2,980,375 |
|
|
3,333,108 |
|
|
500,971 |
|
|
China Lodging Group, Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
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 September 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 |
226,063 |
|
63.4 |
% |
|
670 |
|
0.2 |
% |
|
225,393 |
|
63.2 |
% |
Other
operating costs |
725 |
|
0.2 |
% |
|
- |
|
0.0 |
% |
|
725 |
|
0.2 |
% |
Selling and marketing expenses |
7,750 |
|
2.2 |
% |
|
48 |
|
0.0 |
% |
|
7,702 |
|
2.2 |
% |
General and administrative expenses |
23,105 |
|
6.5 |
% |
|
1,582 |
|
0.4 |
% |
|
21,523 |
|
6.1 |
% |
Pre-opening expenses |
10,165 |
|
2.9 |
% |
|
- |
|
0.0 |
% |
|
10,165 |
|
2.9 |
% |
Total
operating costs and expenses |
267,808 |
|
75.2 |
% |
|
2,300 |
|
0.6 |
% |
|
265,508 |
|
74.6 |
% |
Income from operations |
88,880 |
|
24.9 |
% |
|
2,300 |
|
0.6 |
% |
|
91,180 |
|
25.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 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 |
1,249,701 |
|
70.5 |
% |
|
3,866 |
|
0.2 |
% |
|
1,245,835 |
|
70.3 |
% |
Other
operating costs |
2,258 |
|
0.1 |
% |
|
- |
|
0.0 |
% |
|
2,258 |
|
0.1 |
% |
Selling and marketing expenses |
31,264 |
|
1.8 |
% |
|
244 |
|
0.0 |
% |
|
31,020 |
|
1.8 |
% |
General and administrative expenses |
123,233 |
|
6.9 |
% |
|
7,703 |
|
0.4 |
% |
|
115,530 |
|
6.5 |
% |
Pre-opening expenses |
16,710 |
|
0.9 |
% |
|
- |
|
0.0 |
% |
|
16,710 |
|
0.9 |
% |
Total
operating costs and expenses |
1,423,166 |
|
80.2 |
% |
|
11,813 |
|
0.6 |
% |
|
1,411,353 |
|
79.6 |
% |
Income from operations |
351,039 |
|
19.8 |
% |
|
11,813 |
|
0.6 |
% |
|
362,852 |
|
20.4 |
% |
|
China Lodging Group, Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended |
|
September 30, 2016 |
|
June 30, 2017 |
|
September 30, 2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands, except per share and per ADS
data) |
Net
income attributable to China Lodging Group, Limited (GAAP) |
293,869 |
|
|
389,639 |
|
|
470,061 |
|
|
70,651 |
|
Share-based compensation expenses |
11,813 |
|
|
16,021 |
|
|
15,302 |
|
|
2,300 |
|
Adjusted net income attributable to China Lodging Group, Limited
(non-GAAP) |
305,682 |
|
|
405,660 |
|
|
485,363 |
|
|
72,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
1.06 |
|
|
1.40 |
|
|
1.68 |
|
|
0.25 |
|
Diluted |
1.03 |
|
|
1.35 |
|
|
1.62 |
|
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
4.24 |
|
|
5.58 |
|
|
6.72 |
|
|
1.01 |
|
Diluted |
4.12 |
|
|
5.41 |
|
|
6.50 |
|
|
0.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
1.10 |
|
|
1.45 |
|
|
1.74 |
|
|
0.26 |
|
Diluted |
1.07 |
|
|
1.41 |
|
|
1.68 |
|
|
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per ADS (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
4.41 |
|
|
5.81 |
|
|
6.94 |
|
|
1.04 |
|
Diluted |
4.28 |
|
|
5.63 |
|
|
6.71 |
|
|
1.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
277,169 |
|
|
279,101 |
|
|
279,631 |
|
|
279,631 |
|
Diluted |
285,426 |
|
|
288,316 |
|
|
289,317 |
|
|
289,317 |
|
|
|
|
|
|
|
Quarter Ended |
|
September 30, 2016 |
|
June 30, 2017 |
|
September 30, 2017 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
(in thousands) |
Net income attributable to China Lodging Group, Limited
(GAAP) |
293,869 |
|
|
389,639 |
|
|
470,061 |
|
|
70,651 |
|
Interest income |
(19,154 |
) |
|
(21,792 |
) |
|
(31,807 |
) |
|
(4,781 |
) |
Interest expense |
2,158 |
|
|
15,870 |
|
|
34,797 |
|
|
5,230 |
|
Income tax expense |
94,204 |
|
|
130,183 |
|
|
158,446 |
|
|
23,815 |
|
Depreciation and amortization |
175,637 |
|
|
189,210 |
|
|
218,081 |
|
|
32,778 |
|
EBITDA (non-GAAP) |
546,714 |
|
|
703,110 |
|
|
849,578 |
|
|
127,693 |
|
Share-based compensation |
11,813 |
|
|
16,021 |
|
|
15,302 |
|
|
2,300 |
|
Adjusted EBITDA (non-GAAP) |
558,527 |
|
|
719,131 |
|
|
864,880 |
|
|
129,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
China Lodging Group, Limited |
|
Operational
Data |
|
|
|
|
|
As of |
|
|
September
30, |
June 30, |
September 30, |
|
|
2016 |
2017 |
2017 |
|
Total hotels in
operation: |
3,198 |
|
3,541 |
|
3,656 |
|
|
Leased and owned
hotels |
625 |
|
686 |
|
684 |
|
|
Manachised
hotels |
2,399 |
|
2,654 |
|
2,766 |
|
|
Franchised
hotels |
174 |
|
201 |
|
206 |
|
|
Total hotel rooms in
operation |
322,785 |
|
359,530 |
|
372,464 |
|
|
Leased and owned
hotels |
77,158 |
|
86,232 |
|
86,568 |
|
|
Manachised
hotels |
229,565 |
|
253,469 |
|
265,701 |
|
|
Franchised
hotels |
16,062 |
|
19,829 |
|
20,195 |
|
|
Number of cities |
365 |
|
369 |
|
375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended |
|
|
September 30, |
June 30, |
September 30, |
|
|
2016 |
2017 |
2017 |
|
Occupancy rate (as a
percentage) |
|
|
|
|
Leased and owned
hotels |
90.0 |
% |
90.8 |
% |
92.8 |
% |
|
Manachised
hotels |
89.3 |
% |
90.8 |
% |
94.1 |
% |
|
Franchised
hotels |
74.1 |
% |
74.4 |
% |
78.9 |
% |
|
Blended |
88.9 |
% |
90.1 |
% |
93.1 |
% |
|
Average daily room rate
(in RMB) |
|
|
|
|
Leased and owned
hotels |
217 |
|
232 |
|
257 |
|
|
Manachised
hotels |
186 |
|
188 |
|
204 |
|
|
Franchised
hotels |
194 |
|
203 |
|
236 |
|
|
Blended |
194 |
|
199 |
|
218 |
|
|
RevPAR (in RMB) |
|
|
|
|
Leased and owned
hotels |
195 |
|
211 |
|
238 |
|
|
Manachised
hotels |
166 |
|
171 |
|
192 |
|
|
Franchised
hotels |
144 |
|
151 |
|
186 |
|
|
Blended |
173 |
|
179 |
|
203 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
September
30, |
|
|
|
2016 |
2017 |
|
|
Total |
2,603 |
|
2,603 |
|
|
|
Leased
hotels |
579 |
|
579 |
|
|
|
Manachised and
franchised hotels |
2,024 |
|
2,024 |
|
|
|
Occupancy rate (as a
percentage) |
91 |
% |
96 |
% |
|
|
Average daily room rate
(in RMB) |
194 |
|
202 |
|
|
|
RevPAR (in RMB) |
177 |
|
193 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
September 30, |
September 30, |
yoy growth |
September 30, |
yoy growth |
September 30, |
yoy growth |
|
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
|
2017 |
|
Economy hotels |
2,316 |
2,316 |
162 |
177 |
9.4 |
% |
176 |
183 |
4.3 |
% |
92 |
% |
96 |
% |
4.5 |
% |
Leased and owned
hotels |
498 |
498 |
169 |
185 |
9.6 |
% |
186 |
196 |
5.3 |
% |
91 |
% |
94 |
% |
3.6 |
% |
Manachised and
franchised hotels |
1,818 |
1,818 |
159 |
174 |
9.3 |
% |
172 |
179 |
3.9 |
% |
92 |
% |
97 |
% |
4.8 |
% |
Midscale and upscale hotels |
287 |
287 |
265 |
290 |
9.5 |
% |
303 |
319 |
5.2 |
% |
87 |
% |
91 |
% |
3.6 |
% |
Leased
hotels |
81 |
81 |
320 |
344 |
7.5 |
% |
346 |
365 |
5.4 |
% |
92 |
% |
94 |
% |
1.8 |
% |
Manachised and franchised hotels |
206 |
206 |
233 |
259 |
11.0 |
% |
276 |
291 |
5.3 |
% |
84 |
% |
89 |
% |
4.6 |
% |
Total |
2,603 |
2,603 |
177 |
193 |
9.5 |
% |
194 |
202 |
4.5 |
% |
91 |
% |
96 |
% |
4.4 |
% |
|
Hotel breakdown
by segment |
|
|
|
|
|
|
|
Number of hotels in operation |
|
|
Net added |
As of |
|
|
in Q3 2017 |
September 30, 2017 |
|
Economy
hotels |
46 |
2,939 |
|
HanTing Hotel |
19 |
2,232 |
|
Leased
hotels |
(8) |
465 |
|
Manachised hotels |
27 |
1,763 |
|
Franchised hotels |
- |
4 |
|
Hi Inn |
(1) |
394 |
|
Leased
hotels |
(3) |
32 |
|
Manachised hotels |
2 |
316 |
|
Franchised hotels |
- |
46 |
|
Elan Hotel |
18 |
213 |
|
Manachised hotels |
18 |
180 |
|
Franchised hotels |
- |
33 |
|
ibis Hotel |
11 |
91 |
|
Leased
and owned hotels |
1 |
16 |
|
Manachised hotels |
11 |
29 |
|
Franchised hotels |
(1) |
46 |
|
Orange Hotel |
(1) |
9 |
|
Leased
hotels |
(1) |
7 |
|
Manachised hotels |
- |
1 |
|
Franchised hotels |
- |
1 |
|
Midscale and upscale hotels |
69 |
717 |
|
JI Hotel |
37 |
364 |
|
Leased
hotels |
6 |
91 |
|
Manachised hotels |
31 |
270 |
|
Franchised hotels |
- |
3 |
|
Starway Hotel |
14 |
162 |
|
Leased
hotels |
- |
2 |
|
Manachised hotels |
14 |
126 |
|
Franchised hotels |
- |
34 |
|
Joya Hotel |
- |
6 |
|
Leased
hotels |
- |
3 |
|
Manachised hotels |
- |
3 |
|
Manxin Hotels &
Resorts |
4 |
8 |
|
Leased
hotels |
1 |
2 |
|
Manachised hotels |
1 |
3 |
|
Franchised hotels |
2 |
3 |
|
HanTing Plus Hotel |
1 |
1 |
|
Manachised hotels |
1 |
1 |
|
ibis Styles Hotel |
1 |
11 |
|
Manachised hotels |
1 |
7 |
|
Franchised hotels |
- |
4 |
|
Mercure Hotel |
1 |
19 |
|
Leased
hotels |
- |
2 |
|
Manachised hotels |
(1) |
14 |
|
Franchised hotels |
2 |
3 |
|
Novotel Hotel |
2 |
4 |
|
Manachised hotels |
2 |
3 |
|
Franchised hotels |
- |
1 |
|
Grand Mercure |
- |
3 |
|
Leased
hotels |
- |
1 |
|
Franchised hotels |
- |
2 |
|
Orange Select |
7 |
97 |
|
Leased
hotels |
2 |
44 |
|
Manachised hotels |
3 |
35 |
|
Franchised hotels |
2 |
18 |
|
Crystal Orange |
2 |
42 |
|
Leased
hotels |
- |
19 |
|
Manachised hotels |
2 |
15 |
|
Franchised hotels |
- |
8 |
|
Total |
115 |
3,656 |
|
|
|
|
|
Contact Information
Investor RelationsTel: +86 (21) 6195 9561 Email:
ir@huazhu.comhttp://ir.huazhu.com
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