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August 11, 2014
17:08 EDTHTHTChina Lodging reports Q2 adj EPS 34c, may not compare to consensus $1.76
Reports Q2 revenue $213.3M, may not compare to consensus $1.22B.
News For HTHT From The Last 14 Days
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December 14, 2014
12:13 EDTHTHTChina Lodging Group forms strategic alliance with Accor
Accor and China Lodging Group signed binding documents on December 14 in Paris, France, to join forces in the Pan-China region to develop Accor brands and to form an extensive and long-term alliance. The transaction is expected to close upon completion of anti-trust review, legal restructuring and other closing conditions. "This ground-breaking alliance will combine the strengths of Accor's global brands and network with China Lodging Group's extensive coverage and strong development capability in China." Pursuant to the transaction, Accor's economy and midscale platform will become part of China Lodging Group's network. Brands under this platform include Grand Mercure, Novotel, Mercure, Ibis and Ibis Styles, for which China Lodging Group receives the exclusive rights as a master franchisee in mainland China, Taiwan region and Mongolia. All hotels under these brands will continue to be managed under Accor's brand standards and have all benefits of all of Accor's international distribution and loyalty platforms, and will participate in China Lodging Group's loyalty and distribution platforms and benefit from China Lodging Group's on-the-ground support. The MEB portfolio will extend China Lodging Group's coverage to the upper-midscale and upscale hotel segment, and further strengthen China Lodging Group's leading position in the economy hotel segment. China Lodging Group intends to accelerate the expansion of those brands by leveraging its strength in development of and experience in operating a sizable hotel network in China. China Lodging Group plans to open 350 to 400 new hotels under the MEB portfolio in the next five years, representing a CAGR of 34% to 37% from the existing network. China Lodging Group will become a minority shareholder in a joint venture that primarily operates the LUB portfolio in the Pan-China region. China Lodging Group will support the development of the LUB portfolio through its extensive network of relationships and development teams in China. The involvement in the LUB portfolio will further expand China Lodging Group's business to the upscale and luxury segment. As of December 1, in the Pan-China region Accor had 144 hotels in operation, including 102 in the MEB portfolio and 42 in the LUB portfolio, and 117 hotels contracted in the pipeline, including 70 in the MEB portfolio and 47 in the LUB portfolio. The two partners plan to link their global reservation and loyalty platforms. This move is expected to facilitate distribution and attract more customers to the enlarged network. The combined hotel networks represented more than 5,600 hotels worldwide, and the two loyalty programs had more than 47M members, as of December 1. Upon the closing of this transaction, China Lodging Group will issue common shares to Accor, which will represent up to 10% of China Lodging Group's total outstanding shares after the issuance. The exact amount of shares to be issued will be determined based on 2014 audited financials of Accor China business and the number of shares issued for cash consideration, capped at USD 25M. Accor will have a seat on China Lodging Group's board of directors following the closing of the transaction.

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