Research and Trading Portal for US-listed China Stocks · March 29, 2017
China Tracker - Details for China Lodging Group (HTHT)
China Lodging Group
We are pleased to achieve 78 net new hotel openings in the first half of 2011, and remain confident in achieving our full year target of 200 new openings. At the same time, we also recognize that the Shanghai market weakness after the Expo and China's macroeconomic situation slowed down our same-hotel RevPAR appreciation in 2011. Our revenue was also reduced by the delay in new hotel opening mainly caused by lengthened business licenses application process. As a result, we adjusted our expectation of net revenue growth to 28% to 32% for the full year of 2011. The Company expects to achieve net revenues in the range of RMB605 to RMB625 million in the third quarter of 2011.
"We continue to see significant growth and consolidation opportunities in the China lodging market. With the progress of nationwide transportation infrastructure, our business will further expand as a result of the population's increased mobility and the surge in domestic traffic. During the year of 2012 we plan to open 240 to 250 new hotels, with approximately half being leased-and-operated hotels. The new openings in 2012 will include 40 to 50 Seasons Hotels and Hi Inns combined. Our multi-brand strategy will enable us to enjoy a large base of customers and will accelerate our growth in the future years. In the long run, we expect our same-hotel RevPAR to increase, through strengthening our brand and increasing customer satisfaction. We believe that our popularity among franchisees will continue to enhance as our reputation as a capable and credible hotel operator spreads. We expect that those trends will have a positive impact on our long-term margin.
The Company expects to achieve net revenues in the range of RMB530 to RMB550 million in the second quarter of 2011. "We are on track to open around 200 new hotels this year and to grow our revenue at a fast pace. As we progress into the second quarter, certain factors that affected our first quarter performance, such as prolonged low season and post-Expo impact in Shanghai, are now behind us. We are confident that the outlook of the domestic travel market will continue to grow fast. Our investment in leased-and-operated hotels will position us advantageously to capture the growth opportunity. Despite of the near-term margin pressure, we remain confident that our investment in 2011 will enable us to a strong revenue and profit growth in 2012 and forward."
The Company expects to achieve net revenues in the range of RMB450 to 470 million in the fourth quarter of 2010. In light of the stronger than expected demand driven by the Expo and our successful increase of same-hotel revenue, we adjust our full year net revenues forecast to grow 38% to 39% from 2009.
"We are confident with our previously announced full year plan of 185-195 new hotel openings in 2010. With a good acceptance of all three HanTing hotel products in the market, we expect to benefit from our multiple-brand strategy in the next couple of years, evidenced by expanding customer coverage and growing interest from hotel franchisees."
The Company expects to achieve net revenues in the range of RMB460 to 480 million in the third quarter of 2010. In light of the stronger-than-expected demand driven by the Expo, we adjust our full year net revenues forecast to grow 35% to 37% from 2009. "For the full year 2010, we expect to open around 60 leased-and-operated hotels and 125 to 135 franchised-and-managed hotels."
Thanks to China's strengthening economy, the demand for affordable accommodation with quality continues to grow. We are on track in executing our hotel network expansion plan. We plan to add 180 to 200 hotels in 2010, with 60-70 leased-and-operated hotels and 120-130 franchised-and-managed hotels. We expect to achieve net revenues in the range of RMB 395 to 415 million in the second quarter of 2010. We expect our full year net revenues to grow 33% to 35% from 2009.