Profile: China Lodging Group Ltd (HTHT.O)
11 Dec 2013
China Lodging Group, Limited (China Lodging), incorporated in January 4, 2007, operates hotel chain in China with leased-and-operated and franchised-and-managed models. Under the lease model, it directly operates hotels typically located on leased properties. Under the manachise model, the Company manages manachised hotels through the on-site hotel managers it appoints and collects fees from franchisees. Under the franchise model, it provides training, reservation and support services to the franchised hotels and collect fees from franchisees but do not appoint on-site hotel managers. As of December 31, 2012, it had 465 leased hotels, 516 manachised hotels and 54 franchised hotels in operation and 80 leased hotels and 330 manachised hotels under development. In May 2012, the Company acquired a 51% equity interest of Starway Hotels (Hong Kong) Limited from C-Travel International Limited, a wholly-owned subsidiary of Ctrip. As of December 31, 2012, it operated 1,035 hotels in China.
The Company is in the process of fine-tuning product designs, features, and marketing plans for the Joya Hotels and has assigned a dedicated internal team to develop the brand concept and positioning. As of December 31, 2012, the Company had one Joya Hotel under construction.
JI Hotel, which was previously marketed first under the name of HanTing Hotel and then HanTing Seasons Hotels, is typically located in city centers or central business districts. JI Hotels offer rooms with a quality comparable to three- to four-star hotels, but are priced at competitive rates. In addition, these hotels offer complimentary wireless Internet access throughout the premises, spacious lobbies with laser printers, computers, free drinks, and a cafe serving breakfast and simple meals. As of December 31, 2012, it had 32 JI Hotels in operation and an additional 35 JI Hotels under development.
Starway Hotels vary in their designs and target middle class travelers who seek a spacious room, reasonable price and guaranteed quality. Starway Hotels offer rooms with a quality comparable to three- to four-star hotels, but are priced at competitive rates. In addition, these hotels typically offer complimentary Internet access throughout the premises, spacious lobbies and meeting areas with complimentary tea and coffee. As of December 31, 2012, the Company had 65 Starway Hotels in operation and an additional 23 Starway Hotels under development.
The HanTing Hotel targets knowledge workers and value- and quality-conscious travelers. These hotels have lobbies with complimentary wireless Internet access and laser printers, and a cafe serving breakfast and simple meals. Rooms are equipped with a comfortable mattress, plush buckwheat and cotton pillows, shower facilities, an outlet for free broadband Internet access, a working desk and chair, and universal and uninterruptable power sockets. As of December 31, 2012, it had 898 HanTing Hotels in operation and an additional 331 HanTing Hotels under development.
These hotels offer compact rooms with comfortable beds and shower facilities and complimentary wireless Internet access throughout the premises, and provide an Internet cafe and other facilities for guests to relax and socialize. These hotels provide basic and clean accommodations with consumables being offered at affordable prices from vending machines in the common areas. As of December 31, 2012, it had 40 Hi Inns in operation and an additional 19 Hi Inns under development.
The Company competes with Home Inns, Jinjiang Inn, Motel 168 and 7 Days Inn.
China Lodging Group Ltd
No. 2266 Hongqiao Road
SHANGHAI SHA 200336