China Lodging Group (HTHT; see a detailed article on the company here) announced preliminary Q3 FY2013 operating results today showing the company's continuing expansion through adding more Manachised hotels to its network. In addition, its pipeline included 455 hotels under development (Manachised locations being the vast majority).
China Lodging's RevPAR was up QoQ, reinforcing the trend from previous quarters and nearly recovering to year-ago levels before macro challenges and the purchase of Starway's struggling franchise. RevPAR can be impacted by both average daily room rate and occupancy rates; in Q3 occupancy rose vs. previous quarters but the key component was a rise in average daily room rates. China Lodging's reported average daily room rate of 186 RMB/night was higher than all of FY2012.
Specific operating trends were as follows:
|Average daily room rate|
China Lodging's RevPAR growth vs. Q2 was driven by improving occupancy rates as well as average daily room rates. RevPAR was lower vs. Q3 FY2012, but the company has been able to realize higher average daily room rates which has offset some of the effect of lower occupancy levels.
Detail on China Lodging's development pipeline and existing chain were as follows:
|Hotel Network Data||Q3||Q4||Q1||Q2||Q3|
|(No. of Locations)|
|New Hotel Pipeline|
|Total hotel locations||938||1,035||1,105||1,216||1,341|
|Total hotel rooms||103,322||113,650||120,560||132,557||144,494|