On the company’s first-quarter earnings call, China Lodging Group executives touted the launch of midscale brands CitiGo, Manxin and HanTing Plus within the past month.
SHANGHAI—China Lodging Group continued improvements to its flagship brand, HanTing, and introduced three new hotel products to the midscale segment during the first quarter, executives said on the company’s earnings call with investors.
China Lodging Group CEO Jenny Zhang said the three new midscale brands, CitiGo, Manxin and HanTing Plus, were launched within the past month.
“(CitiGo is) and affordable luxury brand designed for young people in the city center,” she said. “We also launched the urban version of Manxin. We used this resort brand to enter into urban locations, offering a lively and colorful lifestyle choice. The third one, HanTing Plus, is an entry-level midscale brand derived from our flagship HanTing.”
She added that the addition of the three brands is expected to “accelerate our expansion in the midscale segment.”
During the first quarter, HanTing same-hotel revenue per available room growth accelerated to 5.2%, Zhang said. She added that by the end of the quarter, 32% of HanTing rooms were operating under HanTing 2.0 or above.
“The improvement was a bit slow in Q1 mainly due to less new hotel openings during the Chinese New Year,” she said. “We think RevPAR growth was mainly driven by the strategic product upgrade of HanTing 2.0 … as well as the successful branding and … improving market conditions.”
The company is determined to further upgrade its flagship brand in upcoming years, Zhang said.
China Lodging Group reported a 5.8% year-over-year increase in same-hotel RevPAR, a 1.8% increase in ADR to Chinese yuan 182 ($26.37) and 4.4% growth in occupancy to 83.9%, according to a company earnings release.
China Lodging Group had a total of 335,900 rooms at 3,336 hotels in operation at the end of the quarter.
As of press time, China Lodging’s stocks were up 47.1% year to date. The Baird/STR Hotel Stock Index was up 21.9% over the same period.