China Lodging Group's net revenues rise 13.2% in 2016
China Lodging Group (Huazhu Hotels) reported net revenues of RMB 6,538.6 million (USD 941.8 million) in 2016, up by 13.2% YoY, in line with the guidance previously announced.
China Lodging Group (Huazhu Hotels) reported on March 15 that the company's net revenues for the fourth quarter of 2016 increased 10.9% year-over-year to RMB 1,669.9 million (USD 240.5 million).
Net income attributable to China Lodging Group was RMB 125.9 million (USD 18.1 million) for the fourth quarter and RMB 804.6 million (USD 115.9 million) for the full year of 2016, up by 77.9% year-over-year for the fourth quarter and up by 84.3% for the full year.
"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.
"In 2017, our focus remains on product quality. In addition to our economy hotels upgrade program, we have also strengthened the brand and operating standards for our existing hotels by removing a number of hotels that failed to comply with our standards," Jenny added.
Full year 2016:
ADR for all hotels in operation (excluding certain franchised Starway hotels) was RMB 185, compared to RMB 179 in 2015.
Occupancy rate for all hotels in operation (excluding certain franchised Starway hotels) was 84.9%, compared with 85.3% in 2015.
RevPAR for all hotels in operation (excluding certain franchised Starway hotels), was RMB 157, a 2.7% increase from RMB 153 in 2015.
For all the hotels which had been in operation for at least 18 months (excluding certain franchised Starway hotels), the same-hotel RevPAR was RMB 158 in 2016, a 0.4% increase from RMB 157 in 2015, with a 0.5% increase in ADR and a 0.1-percentage-point drop in occupancy rate.
As of December 31, 2016, the Company's loyalty program had more than 78 million members, who contributed 80% of room nights sold during the full year of 2016. In 2016, more than 88% of room nights were sold through the Company's own channels.
For the full year of 2016, the Company opened 33 leased hotels and 704 manachised and franchised hotels, and closed 25 leased hotels and 206 manachised and franchised hotels. As of December 31, 2016, the Company had 624 leased hotels, 2,471 manachised hotels, and 174 franchised hotels in operation in 367 cities. The number of hotel rooms in operation totaled 331,347, an increase of 18.8% from a year ago.
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