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China Lodging Group grows robustly in mid- and up-scale RevPAR

08/16/2016| 9:22:10 PM| ChinaTravelNews 中文

Occupancy rate was 85.2% in Q2 2016, compared with 85.8% in Q2 2015. The slight decrease was due to lower occupancy in lower-tier cities.

China Lodging Group reported on August 16 that the company's net income for the second quarter was RMB315.5 million (USD 47.5 million). Total revenues for the second quarter of 2016 were RMB1,690.6 million (US$254.4 million), representing a 9.6% year-over-year increase and an 11.2% sequential increase. 

Total revenues from leased and owned hotels for the second quarter of 2016 were RMB1,329.7 million (US$200.1 million). Total revenues from manachised and franchised hotels for the second quarter of 2016 were RMB351.8 million (US$52.9 million). 

The occupancy rate for all hotels in operation (excluding certain franchised Starway hotels) was 85.2% in the second quarter of 2016, compared with 85.8% in the second quarter of 2015 and 80.4% in the previous quarter. The slight year-over-year decrease was mainly due to lower occupancy in lower-tier cities. 

RevPAR excluding certain franchised Starway hotels was RMB157 in the second quarter of 2016, compared with RMB156 in the second quarter of 2015 and RMB139 in the previous quarter. The year-over-year increase of 1.1% was a result of the higher ADR. 

ADR excluding certain franchised Starway hotels was RMB184 in the second quarter of 2016, compared with RMB181 in the second quarter of 2015 and RMB172 in the previous quarter. The year-over-year increase of 1.8% was due to more favorable brand mix with an increased proportion of midscale and upscale hotels. 

As of June 30, 2016, the Company had 627 leased ("leased-and-operated") and owned hotels, 2,306 manachised ("franchised-and-managed") hotels, and 181 franchised hotels in operation in 357 cities. As of June 30, 2016, the number of hotel rooms in operation totaled 314,811, an increase of 28% from a year ago. 

"We are thrilled to see improved performance combined with growing hotel network. The same-hotel RevPAR for midscale and upscale hotels has maintained high-single-digit growth," said Ms. Jenny Zhang, Chief Executive Officer of China Lodging Group. "We are optimistic about the prospects of the travel industry in China, especially the growth of demand in leisure travel. We continue executing our multi-brand and asset-light strategy, and expect to offer high quality products and deliver strong results."

TAGS: China Lodging | Huazhu | financial statements | hotels
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