Highlights
* A total of 3,336 hotels or 335,900 rooms in operation as of March 31, 2017
* Net revenues increased 10.8% to RMB 1,593.1 million (USD 231.4 million)
* Adjusted EBITDA (non-GAAP) increased 35.5% to RMB 373.5 million (USD 54.3 million)
* Net income attributable to company was RMB 148.1 million (USD 21.5 million), compared with RMB 69.4 million in Q1 2016
* The Company provided guidance for Q2 2017 net revenues growth of 10% to 12%
Operations
* ADR for all hotels in operation was RMB 182, up by 5.2% YoY, compared with RMB 172 in Q1 2016 and RMB 186 in Q4 2016.
* Occupancy rate for all hotels in operation was 83.9%, compared with 80.4% in Q1 2016 and 84.7% in Q4 2016.
* RevPAR for all hotels in operation was RMB 152, compared with RMB 139 in Q1 2016 and RMB 158 in Q4 2016.
* For all hotels which had been in operation for at least 18 months, the same-hotel RevPAR was RMB 151 for the first quarter of 2017, representing a 5.8% year-over-year increase, with a 1.8% increase in ADR and a 3.3-percentagepoint increase in occupancy rate.
* Midscale and upscale hotels registered an 9.2% same-hotel RevPAR improvement, with a 6.9% increase in ADR and 1.7-percentage-point increase in occupancy rate.
* As of March 31, 2017, the Company's loyalty program had approximately 81.4 million members, who contributed more than 77% of room nights sold during the first quarter of 2017.
* In the first quarter of 2017, approximately 86% of room nights were sold through the Company's own channels.
"We are pleased by our performance in the quarter across the board. Our blended RevPAR achieved 9.8% year-over-year growth while same-hotel RevPAR grew by 5.8% for the first quarter. This was mainly driven by our continuous upgrade to HanTing 2.0, coupled with continuously-growing demand for our midscale hotels." said Ms. Jenny Zhang, Chief Executive Officer of China Lodging Group.
Financial Results
Net revenues for the first quarter of 2017 were RMB 1,593.1 million (USD 231.4 million), representing a 10.8% year-overyear increase and a 4.6% sequential decrease. The increase was primarily due to our hotel network expansion and improved blended RevPAR. The sequential decrease was due to seasonality.
Net revenues from leased and owned hotels for the quarter were RMB 1,223.5 million (USD 177.7 million), representing a 7.6% year-over-year increase and a 5.2% sequential decrease.
Net revenues from manachised and franchised hotels were RMB 361.4 million (USD 52.5 million), representing a 20.1% year-over-year increase and a 1.8% sequential decrease. Net revenues from manachised and franchised hotels accounted for 22.7% of the Company's net revenues in the first quarter of 2017, up from 20.9% a year ago.
Other revenues which mainly include revenues from HuaZhu mall and the provision of IT products and services to hotels, totalling RMB 8.3 million (USD 1.2 million) in the quarter.
Selling and marketing expenses for the quarter were RMB 34.3 million (USD 5.0 million), compared to RMB 33.1 million in the first quarter of 2016 and RMB 46.1 million in the previous quarter.
Income from operations was RMB 167.3 million (USD 24.3 million), compared to RMB 70.8 million in the first quarter of 2016 and RMB 185.7 million in the previous quarter.
Net income attributable to the company was RMB 148.1 million (USD 21.5 million), compared to RMB 69.4 million in the first quarter of 2016 and RMB 125.9 million in the previous quarter.
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