China Lodging Group net income jumps 31.4% in Q3 2016
China Lodging Group (Huazhu Hotels Group) reported net income growth of 31.4% to RMB 293.9 million (USD 44.1 million) in Q3 2016.
China Lodging Group (Huazhu) Q3 2016 financial highlights:
* A total of 3,198 hotels or 322,785 hotel rooms in operation as of September 30, 2016
* Net revenues increased 10.9% YoY to RMB 1,773.8 million (USD 266.0 million) for the third quarter of 2016, in line with the guidance previously announced.
* Income from operations increased 24.6% to RMB 351.0 million (USD 52.6 million) for the quarter.
* Adjusted EBITDA (non-GAAP) increased 20.2% to RMB 558.5 million (USD 83.8 million) for the quarter.
* Net income attributable to China Lodging Group increased 31.4% to RMB 293.9 million (USD 44.1 million).
* The Company expects its Q4 2016 net revenues growth of 9% to 11% YoY; and revises the full year 2016 net revenues growth of 12.7% to 13.3%.
The average daily rate (ADR) for all hotels in operation (excluding certain franchised Starway hotels), was RMB 194 in the third quarter of 2016, compared with RMB 188 in the third quarter of 2015.
The occupancy rate for all hotels in operation (excluding certain franchised Starway hotels) was 88.9% in the third quarter of 2016, compared with 89.2% in the third quarter of 2015. The decrease was mainly due to lower occupancy of new brands, and partially offset by improved occupancy in mature hotels.
RevPAR was RMB173 in the third quarter of 2016, compared with RMB167 in the third quarter of 2015. The year-over-year increase of 3.2% was a result of higher ADR.
"We will continue the upgrade program of economy hotels in the next three years, so as to revitalize our flagship brand to attract more customers and franchisees," said Ms. Jenny Zhang, Chief Executive Officer of China Lodging Group.
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