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China Lodging Group, Limited Reports Fourth Quarter and Full Year 2012 Financial Results

China Lodging Group, Limited Reports Fourth Quarter and Full Year 2012
Financial Results

  *Net Revenues increased 35.7% year-over-year for the fourth quarter and
    43.3% for the full year of 2012, exceeding the high end of previously
    announced guidance.
  *Adjusted EBITDA from operating hotels (non-GAAP)^1 increased 23.8% for the
    fourth quarter and 43.6% for the full year of 2012.
  *Net income attributable to China Lodging Group, Limited was RMB18.2
    million (US$2.9 million)^2 for the fourth quarter and RMB174.9 million
    (US$28.1 million) for the full year of 2012. Diluted net earnings per
    ADS^3 for the year were RMB2.83 (US$0.45); adjusted diluted net earnings
    per ADS (non-GAAP) for the year were RMB3.17 (US$0.51), representing a
    growth of 49.5% from prior year.
  *A total of 1,035 hotels or 113,650 hotel rooms in operation as of December
    31, 2012
  *The Company provided guidance for full year 2013 net revenues growth of
    26% to 29% and Q1 net revenue growth of 30% to 32%.

SHANGHAI, China, March 6, 2013 (GLOBE NEWSWIRE) -- China Lodging Group,
Limited (Nasdaq:HTHT) ("China Lodging Group" or the "Company"), a leading and
fast-growing multi-brand hotel group in China, today announced its unaudited
financial results for the fourth quarter and full year ended December 31,
2012.

Fourth Quarter 2012 Operational Highlights

  *During the fourth quarter of 2012, the Company opened 50 leased
    ("leased-and- operated") hotels and 70 net manachised
    ("franchised-and-managed") hotels.
  *The occupancy rate for all hotels in operation (excluding franchised
    Starway hotels) was 92% in the fourth quarter of 2012, compared with 93%
    in the fourth quarter of 2011 and 97% in the previous quarter. The slight
    year-over-year decrease was mainly because our fast expansion led to a
    higher percentage of manachised hotels at the ramping-up stage during the
    fourth quarter of 2012, compared to a year ago. The sequential decrease
    resulted mainly from seasonality.
  *The ADR, which is defined as the average daily rate for all hotels in
    operation (excluding franchised Starway hotels), was RMB176 in the fourth
    quarter of 2012, compared with RMB179 in the fourth quarter of 2011 and
    RMB183 in the previous quarter. The year-over-year decrease was mainly
    attributable to the city mix shifting toward lower-tier cities, partially
    offset by an increase in same-hotel ADR. The sequential decrease resulted
    mainly from seasonality.
  *RevPAR, defined as revenue per available room for all hotels in operation
    (excluding franchised Starway hotels), was RMB162 in the fourth quarter of
    2012, compared with RMB167 in the fourth quarter of 2011 and RMB178 in the
    previous quarter. RevPAR for leased hotels was RMB167 in the fourth
    quarter of 2012, compared with RMB170 in the fourth quarter of 2011, and
    RMB183 in the previous quarter.
  *For all hotels which had been in operation for at least 18 months
    (excluding franchised Starway hotels), the same-hotel RevPAR was RMB179
    for the fourth quarter of 2012, a 2% increase from RMB175 for the fourth
    quarter of 2011, with a 1% increase in ADR and a one percentage-point
    increase in occupancy rate.

Full Year 2012 Operational Highlights

  *For the full year of 2012, the Company opened 121 net new leased hotels
    and 221 net new manachised hotels, a total of 342 hotels, exceeding our
    previously announced guidance. As of December 31, 2012, the Company had
    465 leased hotels, 516 manachised hotels, and 54 franchised Starway hotels
    in operation in 171 cities. The leased and manachised hotel rooms in
    operation increased by 35% and 72%, respectively, from a year ago.
  *As of December 31, 2012, the Company had a total pipeline of 410 new
    hotels, including 80 leased hotels and 330 manachised hotels.
  *For the full year of 2012, the occupancy rate for all hotels in operation
    (excluding franchised Starway hotels) was 94%, two percentage points
    higher than 2011.
  *For the full year of 2012, the ADR was RMB178, compared to RMB180 in 2011.
    The decrease was primarily due to the shift of city mix of hotels toward
    lower-tier cities, partially offset by an increase in same-hotel ADR.
  *For the full year of 2012, the RevPAR for all hotels in operation,
    excluding franchised Starway hotels, was RMB168, a 2% increase from RMB165
    in 2011. RevPAR for leased hotel was RMB 173, a 4% increase from RMB167
    in 2011.
  *For all the hotels which had been in operation for at least 18 months,
    excluding franchised Starway hotels, the same-hotel RevPAR was RMB186 in
    2012, a 6% increase from RMB176 in 2011, with a 2% increase in ADR and a
    three percentage-point increase in occupancy rate.
  *As of December 31, 2012, the Company's loyalty program had more than 8
    million members, who contributed more than 80% of room nights sold during
    the full year of 2012. In 2012, 96% of room nights were sold through the
    Company's own channels.

"We are delighted that we concluded 2012 with a strong result, exceeding 1,000
hotels and covering 171 cities," said Mr. Qi Ji, founder, executive Chairman
and Chief Executive Officer of China Lodging Group.He continued:"Our blended
hotel occupancy and RevPAR both improved even though we expanded scale and
penetrated our business into lower-tier cities. Our same-hotel RevPAR for the
full year improved by 6%, thanks to our strong brands, highly-motivated work
force and well-established management system. In 2012, we made remarkable
progress in executing our multi-brand strategy and proudly changed our Chinese
name from Hanting to Hua Zhu. From Hi Inn to Joya Hotel, our product offerings
now cover price range from RMB 100 to RMB 1000. We expect each of our brands
to serve as a successful consolidator in its respective segment. We expect
those successes, in whole, will make Hua Zhu a major force in the large and
fast-growing China lodging market."

Fourth Quarter and full year of 2012 Financial Results

Total revenues for the fourth quarter of 2012 were RMB936.7 million (US$150.3
million), representing a 35.8% year-over-year increase and a 1.2% sequential
decrease. The year-over-year increases were primarily due to the growth of our
number of hotels. The sequential decrease was mainly due to seasonality.

Total revenues for the year of 2012 were RMB3,419.3 million (US$548.8
million), representing an increase of 43.3% from the year of 2011.

Total revenues from leased hotels for the fourth quarter of 2012 were RMB831.1
million (US$133.4 million), representing a 32.6% year-over-year increase and a
1.8% sequential decrease.

For the year of 2012, total revenues from leased hotels were RMB3,069.4
million (US$492.7 million), representing a 41.3% year-over-year increase. As
of December 31, 2012, the Company had 465 leased hotels in operation, compared
with 344 at the end of 2011.

Total revenues from manachised and franchised hotels for the fourth quarter of
2012 were RMB105.6 million (US$16.9 million), representing a 67.1%
year-over-year increase and a 4.6% sequential increase.

For the year of 2012, total revenues from manachised and franchised hotels
were RMB349.9 million (US$56.1 million), representing a year-over-year
increase of 64.5%, and accounting for 10.2% of total revenues, compared to
8.9% of total revenues for the year of 2011.As of December 31, 2012, the
Company had 516 manachised hotels and 54 franchised Starway hotels in
operation, compared with 295 manachised hotels at the end of 2011.

Net revenues for the fourth quarter of 2012 were RMB883.2 million (US$141.8
million), representing a year-over-year increase of 35.7% and a 1.2%
sequential decrease.

Net revenues for the full year of 2012 were RMB3,224.5 million (US$517.6
million), representing a year-over-year increase of 43.3%.

Hotel operating costs for the fourth quarter of 2012 were RMB694.1 million
(US$111.4 million), compared to RMB493.8 million (US$78.5 million) in the
fourth quarter of 2011 and RMB630.0 million (US$100.2 million) in the previous
quarter, representing 40.6% and 10.2% increases, respectively. The Company's
hotel network expansion, especially the growth in leased hotels, was the main
driver for the increase in hotel operating costs. The average number of leased
hotels in operation^4 during the fourth quarter of 2012 increased 33.7% from
the same period of 2011 and 9.6% sequentially. Total hotel operating costs
excluding share-based compensation expenses (non-GAAP) for the fourth quarter
of 2012 were RMB693.8 million (US$111.4 million), representing 78.6% of net
revenues, compared to 75.8% for the fourth quarter in 2011 and 70.4% in the
previous quarter. The year-over-year increase in cost percentage was mainly
due to cost inflation. Although our cost structure is largely fixed, the
blended cost inflation in the fourth quarter of 2012 exceeded our same-hotel
RevPAR growth of 2%. On top of that, a large number of 77 leased hotels opened
in the third and fourth quarter of 2012 added to the hotel operating cost but
contributed very low revenue during their early stage of ramping-up. The
sequential increase in cost percentage was primarily due to seasonally-lower
RevPAR affecting the percentage calculation.

For the full year of 2012, total hotel operating costs were RMB2,453.9 million
(US$393.9 million), compared to RMB1,703.3 million (US$270.6 million) in 2011.
Excluding share-based compensation, hotel operating costs (non-GAAP) were
RMB2,451.3 million (US$393.5 million), representing 76.0% of net revenues,
compared to 75.6% in 2011. The year-over-year increase of 0.4 percentage point
in cost percentage was mainly driven by cost inflation.

Selling and marketing expenses for the fourth quarter of 2012 were RMB29.0
million (US$4.6 million), compared to RMB29.3 million (US$4.7 million) in the
fourth quarter of 2011 and RMB24.3 million (US$3.9 million) in the previous
quarter. Selling and marketing expenses excluding share-based compensation
expenses (non-GAAP) for the fourth quarter of 2012 were RMB28.8 million
(US$4.6 million), or 3.3% of net revenues, compared to 4.5% for the fourth
quarter in 2011 and 2.7% for the previous quarter. The year-over-year decrease
was mainly attributable to the benefit from economies of scale and the
Company's cost-saving efforts. The sequential increase in percentage resulted
from an increase in marketing programs during the low season.

For the full year of 2012, total selling and marketing expenses were RMB102.8
million (US$16.5 million), compared to RMB94.8 million (US$15.1 million) in
2011. Selling and marketing expenses excluding share-based compensation
expenses (non-GAAP) were RMB101.8 million (US$16.3 million), representing 3.2%
of net revenues, compared to 4.2% in 2011, mainly due to the benefit from
economies of scale and the Company's cost-saving efforts.

General and administrative expenses for the fourth quarter of 2012 were
RMB61.0 million (US$9.8 million), compared to RMB43.8 million (US$7.0 million)
in the fourth quarter of 2011 and RMB55.7 million (US$8.9 million) in the
previous quarter. General and administrative expenses excluding share-based
compensation expenses (non-GAAP) for the fourth quarter of 2012 were RMB56.4
million (US$9.1 million), representing 6.4% of net revenues, compared with
6.4% of net revenues in the fourth quarter of 2011 and 5.5% in the previous
quarter.

General and administrative expenses were RMB217.4 million (US$34.9 million)
for the year of 2012, compared to RMB160.1 million (US$25.4 million) in 2011.
General and administrative expenses excluding share-based compensation
expenses were RMB200.2 million (US$32.1 million), representing 6.2% of net
revenues, compared to 6.5% in 2011, mainly due to the benefit from economies
of scale.

Pre-opening expenses for the fourth quarter of 2012 were RMB69.8 million
(US$11.2 million), compared to RMB49.5 million (US$7.9 million) in the fourth
quarter of 2011 and RMB63.2 million (US$10.1 million) in the previous quarter.
The pre-opening expenses were primarily driven by the number of leased hotels
under conversion during the period. 50 leased hotels were opened during this
quarter and another 80 were in the pipeline at the end of the quarter.

Pre-opening expenses for the full year of 2012 were RMB230.7 million (US$37.0
million), compared to RMB184.3 million (US$29.3 million) in 2011, representing
a year-over-year increase of 25.2%. The increase in pre-opening expenses was
mainly a result of our acceleration of leased hotel openings from 101 in 2011
to 121 in 2012. Our mid-scale brand, JI Hotel, had higher pre-opening expenses
per hotel than our Hanting Hotel brand, due to higher rent for the underlying
property and larger room count. The growth in JI Hotel openings and the strong
JI Hotel pipeline also contributed to the increase of pre-opening expenses in
2012.

Income from operations for the fourth quarter of 2012 was RMB29.3 million
(US$4.7 million), compared to RMB34.4 million (US$5.5 million) in the fourth
quarter of 2011 and RMB120.3 million (US$19.1 million) in the previous
quarter. Excluding share-based compensation expenses, adjusted income from
operations (non-GAAP) for the fourth quarter of 2012 was RMB34.4 million
(US$5.5 million), compared to RMB37.2 million (US$5.9 million) for the fourth
quarter of 2011. The year-over-year decrease was mainly due to cost inflation
and higher pre-opening expenses.

Income from operations for the year was RMB219.7 million (US$35.3 million),
more than doubling RMB107.1 million (US$17.0 million) in 2011. Excluding
share-based compensation expenses, adjusted income from operations (non-GAAP)
for the year of 2012 was RMB240.6 million (US$38.6 million), compared to
RMB122.6 million (US$19.5 million) for the year of 2011. The significant
growth in income from operations was attributable to rapid expansion of our
hotel network, strong same-hotel RevPAR growth and benefit from economies of
scale.

Net income attributable to China Lodging Group, Limited for the fourth quarter
of 2012 was RMB18.2 million (US$2.9 million), compared to RMB30.3 million
(US$4.8 million) in the fourth quarter of 2011 and RMB95.8 million (US$15.2
million) in the previous quarter. Excluding share-based compensation expenses,
adjusted net income attributable to China Lodging Group, Limited (non-GAAP)
for the fourth quarter of 2012 was RMB23.3 million (US$3.7 million), compared
to RMB33.2 million (US$5.3 million) in the fourth quarter of 2011 and RMB103.6
million (US$16.5 million) in the previous quarter. The year-over-year decrease
in net income was mainly due to lower income from operations and interest
income, offset by foreign exchange gain. The sequential decrease in net income
was mainly due to seasonality.

Net income attributable to China Lodging Group, Limited for the full year of
2012 was RMB174.9 million (US$28.1 million), compared to RMB114.8 million
(US$18.2 million) in 2011. Excluding share-based compensation expenses,
adjusted net income attributable to China Lodging Group (non-GAAP) for the
full year of 2012 was RMB195.7 million (US$31.4 million), compared to RMB130.3
million (US$20.7 million) in 2011. The year-over-year increase was mainly
attributable to a higher profit from the expanded base of manachised hotels
and mature leased hotels.

Basic and diluted net earnings per share/ADS.For the fourth quarter of 2012,
basic net earnings per share and diluted net earnings per share were RMB0.07
(US$0.01); basic net earnings per ADS were RMB0.30 (US$0.05) and diluted net
earnings per ADS were RMB0.29 (US$0.05). For the fourth quarter of 2012,
excluding share-based compensation expenses, adjusted basic net earnings per
share (non-GAAP) were RMB0.10 (US$0.02) and adjusted diluted net earnings per
share (non-GAAP) were RMB0.09 (US$0.02); adjusted basic net earnings per ADS
(non-GAAP) and adjusted diluted net earnings per ADS (non-GAAP) were RMB0.38
(US$0.06).

For the full year of 2012, basic net earnings per share were RMB0.72 (US$0.12)
and diluted net earnings per share were RMB0.71 (US$0.11); basic net earnings
per ADS were RMB2.88 (US$0.46), while diluted net earnings per share were
RMB2.83 (US$0.45). For the full year of 2012, excluding share-based
compensation expenses, adjusted net earnings per share (non-GAAP) were RMB0.80
(US$0.13), while adjusted diluted net earnings per share (non-GAAP) were
RMB0.79 (US$0.13), and adjusted net earnings per ADS (non-GAAP) were RMB3.22
(US$0.52), while adjusted diluted net earnings per ADS (non-GAAP) were RMB3.17
(US$0.51).

EBITDA (non-GAAP) for the fourth quarter of 2012 was RMB128.5 million (US$20.6
million), compared with RMB112.0 million (US$17.8 million) in the fourth
quarter of 2011 and RMB213.3 million (US$33.9 million) in the previous
quarter. Excluding pre-opening expenses and share-based compensation expenses,
adjusted EBITDA from operating hotels (non-GAAP) for the fourth quarter of
2012 was RMB203.5 million (US$32.7 million), compared with RMB164.4 million
(US$26.1 million) for the fourth quarter of 2011 and RMB284.3 million (US$45.2
million) for the previous quarter. The year-over-year increase was mainly due
to the expansion of our hotel network. The sequential decrease was mainly due
to seasonality.

EBITDA (non-GAAP) for the full year of 2012 was RMB577.5 million (US$92.7
million), compared to RMB377.4 million (US$60.0 million) in 2011. Excluding
pre-opening expenses and share-based compensation expenses, adjusted EBITDA
from operating hotels (non-GAAP) for the full year of 2012 was RMB829.0
million (US$133.1 million), compared with RMB577.2 million (US$91.7 million)
in 2011. The increase in adjusted EBITDA was mainly driven by the expanded
base of manachised hotels and mature leased hotels.

Hotel income (non-GAAP), which is the difference between net revenues and
hotel operating costs, was RMB189.1 million (US$30.4 million) for the fourth
quarter of 2012, compared with RMB156.9 million (US$24.9 million) in the
fourth quarter of 2011 and RMB263.6 million (US$41.9 million) in the previous
quarter. The year-over-year increase of hotel income (non-GAAP) was mainly
attributable to the enlarged manachised hotel network and the increased number
of mature leased hotels in our portfolio. For leased hotels in operation for
at least six months, the hotel income (non-GAAP) was RMB131.4 million (US$21.1
million) during the fourth quarter of 2012, or 18% of net revenues derived
from those hotels. Leased hotels in operation for less than six months
accounted for 13% of leased room nights available for sale in the fourth
quarter of 2012. Those hotels derived a hotel loss (non-GAAP) of RMB23.6
million (US$3.8 million), or 34% of net revenues derived from those hotels
this quarter, mainly due to anticipated lower revenue achievement of those
hotels during their ramp-up stage. For manachised and franchised hotels, the
hotel income (non-GAAP) was RMB81.3 million (US$13.0 million), or 82% of net
revenue derived from those hotels.

Hotel income (non-GAAP) for the full year of 2012 was RMB770.6 million
(US$123.7 million), compared with RMB546.3 million (US$86.8 million) for 2011.
The year-over-year increase was mainly due to higher hotel income generated
from our expanded network of manachised hotels and mature leased hotels. For
leased hotels in operation for at least six months, the hotel income
(non-GAAP) was RMB577.1 million (US$92.6 million) during 2012, or 22% of net
revenues derived from those hotels. Leased hotels in operation for less than
six months derived a hotel loss (non-GAAP) of RMB72.2 million (US$11.6
million), or 28% of net revenues derived from those hotels in 2012. Losses
generated from leased hotels in operation for less than six months increased
from prior year, due to larger number of rooms added and higher per-hotel
ramping-up loss primarily relating to development of mid-scale hotel brand and
penetration into new cities. For manachised and franchised hotels, hotel
income (non-GAAP) was RMB265.7 million (US$42.6 million), or 81% of net
revenue derived from those hotels.

Cash flow.Net operating cash flow for the fourth quarter of 2012 was RMB191.4
million (US$30.7 million).Cash spent on the purchase of property and
equipment, purchase of intangible assets and acquisitions, which are part of
investing cash flow, was RMB266.2 million (US$42.7 million).

Net operating cash flow for the full year of 2012 was RMB715.7 million
(US$114.9 million). Cash spent on the purchase of property and equipment,
purchase of intangible assets, long-term investment and acquisitions was
RMB1,059.8 million (US$170.1 million).

Cash and cash equivalents, Restricted cash, and Short-term investment. As of
December 31, 2012, the Company had a total balance of cash and cash
equivalents, restricted cash and short-term investment of RMB459.7 million
(US$73.8 million).

Business Outlook and Guidance for 2013

"We remain positive on the growing trend of travelling demand in China. Our
brand portfolio is well-positioned to meet the diversified needs of customers
who seek good value for their money. In 2013, we plan to add one Joya Hotel;
55 to 65 mid-scale hotels under JI Hotel and Starway Hotel brands; and 275 to
315 economy hotels under the Hanting Hotel and Hi Inn brands," commented Mr.
Ji.The company expects all new hotels added to be under the leased or
manachised models.

The Company expects to achieve net revenues in the range of RMB845 to 860
million in the first quarter of 2013, representing a 30% to 32% growth
year-over-year. For the full year 2013, the Company expects net revenues to
grow 26% to 29% from 2012.

The above forecast reflects the Company's current and preliminary view, which
is subject to change.

Conference Call

China Lodging Group's management will host a conference call at 8 p.m. EST,
Wednesday, March 6, 2013 (or 9 a.m. on Thursday, March 7, 2013 in the
Shanghai/Hong Kong time zone) following the announcement. To participate in
the event by telephone, please dial +1 (855) 500 8701 (for callers in the US),
+86 400 120 0654 (for callers in China Mainland), +852 3051 2745 (for callers
in Hong Kong) or +65 6723 9385 (for callers outside of the US, China Mainland,
and Hong Kong) and entering pass code 9824 7010.Please dial in approximately
10 minutes before the scheduled time of the call.

A recording of the conference call will be available after the conclusion of
the conference call through March 13, 2013. Please dial +1 (855) 452 5696 (for
callers in the US) or +61 2 8199 0299 (for callers outside the US) and
entering pass code 9824 7010 if you wish to listen to this recording.

The conference call will also be webcast live over the Internet and can be
accessed by all interested parties at the Company's website,
http://ir.htinns.com.

Use of Non-GAAP Financial Measures

To supplement the Company's unaudited consolidated financial results presented
in accordance with U.S. GAAP, the Company uses the following non-GAAP measures
defined as non-GAAP financial measures by the SEC: hotel operating costs
excluding share-based compensation expenses; general and administrative
expenses excluding share-based compensation expenses; selling expenses
excluding share-based compensation expenses; adjusted income from operations
excluding share-based compensation expenses; adjusted net income attributable
to China Lodging Group, Limited excluding share-based compensation expenses;
adjusted basic and diluted net earnings per share and per ADS excluding
share-based compensation expenses; EBITDA; adjusted EBITDA from operating
hotels excluding pre-opening expenses and share-based compensation expenses;
and hotel income.The presentation of these non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with U.S. GAAP.For more
information on these non-GAAP financial measures, please see the table
captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end
of this release.The Company believes that these non-GAAP financial measures
provide meaningful supplemental information regarding Company performance by
excluding share-based compensation expenses that may not be indicative of
Company operating performance.The Company believes that both management and
investors benefit from referring to these non-GAAP financial measures in
assessing Company performance and when planning and forecasting future
periods.These non-GAAP financial measures also facilitate management's
internal comparisons to the Company's historical performance.The Company
believes these non-GAAP financial measures are also useful to investors in
allowing for greater transparency with respect to supplemental information
used regularly by Company management in financial and operational
decision-making.A limitation of using non-GAAP financial measures excluding
share-based compensation expenses is that share-based compensation expenses
have been – and will continue to be – a significant recurring expense in the
Company's business.Management compensates for these limitations by providing
specific information regarding the GAAP amounts excluded from each non-GAAP
measure.The accompanying tables have more details on the reconciliations
between GAAP financial measures that are most directly comparable to non-GAAP
financial measures.

The Company believes that EBITDA is a useful financial metric to assess the
operating and financial performance before the impact of investing and
financing transactions and income taxes, given the significant investments
that the Company has made in leasehold improvements, depreciation and
amortization expense that comprise a significant portion of the Company's cost
structure.In addition, the Company believes that EBITDA is widely used by
other companies in the lodging industry and may be used by investors as a
measure of financial performance.The Company believes that EBITDA will
provide investors with a useful tool for comparability between periods because
it eliminates depreciation and amortization expense attributable to capital
expenditures. The Company also uses adjusted EBITDA from operating hotels,
which is defined as EBITDA before pre-opening expenses and share-based
compensation expenses, to assess operating results of the hotels in operation.
The Company believes that the exclusion of pre-opening expenses and
share-based compensation expenses, a portion of which is non-cash rental
expenses, helps facilitate year-on-year comparison of the results of
operations as the number of hotels in the development stage may vary
significantly from year to year.Therefore, the Company believes adjusted
EBITDA from operating hotels more closely reflects the performance capability
of hotels currently in operation.The calculation of EBITDA and adjusted
EBITDA from operating hotels does not deduct interest income.The presentation
of EBITDA and adjusted EBITDA from operating hotels should not be construed as
an indication that the Company's future results will be unaffected by other
charges and gains considered to be outside the ordinary course ofbusiness.

The use of EBITDA and adjusted EBITDA from operating hotels has certain
limitations.Depreciation and amortization expense for various long-term
assets, income tax and interest expense have been and will be incurred and are
not reflected in the presentation of EBITDA. Pre-opening expenses and
share-based compensation expenses have been and will be incurred and are not
reflected in the presentation of adjusted EBITDA from operating hotels.Each
of these items should also be considered in the overall evaluation of the
results.The Company compensates for these limitations by providing the
relevant disclosure of the depreciation and amortization, interest expense,
income tax expense, pre-opening expenses, share-based compensation expenses
and other relevant items both in the reconciliations to the U.S. GAAP
financial measures and in the consolidated financial statements, all of which
should be considered when evaluating the performance of the Company.

The terms EBITDA and adjusted EBITDA from operating hotels are not defined
under U.S. GAAP, and neither EBITDA nor adjusted EBITDA from operating hotels
is a measure of net income, operating income, operating performance or
liquidity presented in accordance with U.S. GAAP.When assessing the operating
and financial performance, investors should not consider these data in
isolation or as a substitute for the Company's net income, operating income or
any other operating performance measure that is calculated in accordance with
U.S. GAAP.In addition, the Company's EBITDA or adjusted EBITDA from operating
hotels may not be comparable to EBITDA or adjusted EBITDA from operating
hotels – or similarly titled measures utilized by other companies – since such
other companies may not calculate EBITDA or adjusted EBITDA from operating
hotels in the same manner as the Company does.

To monitor performance of hotels at different maturity level and of different
form, the Company also tracks hotel income, which is the difference between
net revenues and hotel operating costs.

Reconciliations of the Company's non-GAAP financial measures, including
EBITDA, adjusted EBITDA from operating hotels, and hotel income, to the
consolidated statement of operations information are included at the end of
this press release.

About China Lodging Group, Limited

China Lodging Group, Limited is a leading and fast-growing multi-brand hotel
group in China. The Company provides business and leisure travelers with
high-quality, and conveniently-located hotel products under five brands,
namely, Joya Hotel, JI Hotel, Starway Hotel, HanTing Hotel, and Hi Inn. For
more information, please visit the Company's website: http://ir.htinns.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995: The information in this release contains forward-looking statements
which involve risks and uncertainties, including statements regarding the
Company's capital needs, business strategy and expectations. Any statements
contained herein that are not statements of historical fact may be deemed to
be forward-looking statements, which may be identified by terminology such as
"may," "should," "will," "expect," "plan," "intend," "anticipate," "believe,"
"estimate," "predict," "potential," "forecast," "project," or "continue," the
negative of such terms or other comparable terminology. Readers should not
rely on forward-looking statements as predictions of future events or results.
Any or all of the Company's forward-looking statements may turn out to be
wrong. They can be affected by inaccurate assumptions, risks and uncertainties
and other factors which could cause actual events or results to be materially
different from those expressed or implied in the forward-looking statements.
In evaluating these statements, readers should consider various factors,
including the anticipated growth strategies of the Company, the future results
of operations and financial condition of the Company, the economic conditions
of China, the regulatory environment in China, the Company's ability to
attract customers and leverage its brand, trends and competition in the
lodging industry, the expected growth of the lodging market in China and other
factors and risks outlined in the Company's filings with the Securities and
Exchange Commission, including its annual report on Form 20-F and other
filings. These factors may cause the Company's actual results to differ
materially from any forward-looking statement. In addition, new factors emerge
from time to time and it is not possible for the Company to predict all
factors that may cause actual results to differ materially from those
contained in any forward-looking statements. Any projections in this release
are based on limited information currently available to the Company, which is
subject to change. This release also contains statements or projections that
are based upon information available to the public, as well as other
information from sources which the Company believes to be reliable, but it is
not guaranteed by the Company to be accurate, nor does the Company purport it
to be complete. The Company disclaims any obligation to publicly update any
forward-looking statements to reflect events or circumstances after the date
of this document, except as required by applicable law.

^1 Defined as EBITDA before pre-opening expenses and share-based compensation
expenses.

^2 The conversion of Renminbi ("RMB") into United States dollars ("US$") is
based on the exchange rate of US$1.00=RMB6.2301 on December 31, 2012 as set
forth in H.10 statistical release of the U.S. Federal Reserve Board and
available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.

^3 Each ADS represents four of the Company's ordinary shares.

^4 Calculated as the average of the number of leased hotels in operation at
the beginning of the quarter and the number of leased hotels in operation at
the end of the quarter.


China Lodging Group, Limited
Unaudited Condensed Consolidated Balance Sheets
                             December 31, September 30, December 31, 2012   
                              2011         2012
                             RMB          RMB           RMB        US$
                             (in thousands)
Assets                                                           
Current assets:                                                  
Cash and cash equivalents    781,601     465,695      449,844   72,205
Restricted cash              1,500       61,455       1,790     287
Short-term Investment        --         --          8,074     1,296
Accounts receivable, net     37,416      48,125       50,633    8,127
Prepaid rent                 228,087     278,276      321,305   51,573
Inventories                  31,232      32,980       37,971    6,095
Other current assets         53,862      63,886       83,058    13,332
Deferred tax assets          40,119      40,119       44,231    7,099
Total current assets         1,173,817   990,536      996,906   160,014
                                                                
Property and equipment, net   2,095,794   2,670,518    2,951,509 473,750
Intangible assets, net        69,779      117,881      100,980   16,208
Long term investment                      28,129       28,129    4,515
Goodwill                      42,536      42,689       64,180    10,302
Other assets                  102,056     126,508      133,536   21,434
Deferred tax assets           40,968      40,968       54,947    8,820
Total assets                  3,524,950   4,017,229    4,330,187 695,043
                                                                
Liabilities and equity                                           
Current liabilities:                                             
Long-term debt, current      --         240          --       --
portion
Accounts payable             417,605     502,034      624,824   100,291
Amount due to related        1,030       1,168        801       129
parties
Salary and welfare payable   80,266      60,069       117,980   18,937
Deferred revenue             138,148     183,703      200,515   32,185
Accrued expenses and other   142,146     176,318      187,380   30,076
current liabilities
Income tax payable           14,148      2,474        23,142    3,715
Total current liabilities    793,343     926,006      1,154,642 185,333
                                                                
Long-term debt                --         640          --       --
Deferred rent                 329,774     434,520      470,438   75,511
Deferred revenue              71,698      93,504       99,800    16,019
Other long-term liabilities   61,574      85,129       92,407    14,832
Deferred tax liabilities      12,677      12,677       22,335    3,585
Total liabilities             1,269,066   1,552,476    1,839,622 295,280
                                                                
Equity                                                           
Ordinary shares              179         180          180       29
Additional paid-in capital   2,199,954   2,234,254    2,243,403 360,091
Retained earnings            85,127      241,822      260,014   41,735
Accumulated other            (39,166)    (37,648)     (38,408)  (6,165)
comprehensive loss
Total China Lodging Group,    2,246,094   2,438,608    2,465,189 395,690
Limited equity
Noncontrolling interest      9,790       26,145       25,376    4,073
Total equity                  2,255,884   2,464,753    2,490,565 399,763
Total liabilities and equity  3,524,950   4,017,229    4,330,187 695,043


China Lodging Group, Limited
Unaudited Condensed Consolidated Statements of Operations
              Quarter Ended                               Year Ended
              December   September  December 31, 2012     December 31, December 31, 2012
               31, 2011   30, 2012                         2011
              RMB        RMB        RMB        US$        RMB          RMB          US$
              (in thousands, except per share and per ADS data)
Revenues:                                                                      
Leased hotels  626,738   846,687   831,104   133,401   2,172,934   3,069,431   492,678
Manachised and
franchised     63,183    100,955   105,561   16,944    212,644     349,847     56,154
hotels
Total revenues 689,921   947,642   936,665   150,345   2,385,578   3,419,278   548,832
Less: business
tax and        (39,184)  (54,005)  (53,468)  (8,582)   (135,981)   (194,751)   (31,260)
related
surcharges
Net revenues   650,737   893,637   883,197   141,763   2,249,597   3,224,527   517,572
                                                                              
Operating
costs and                                                                      
expenses:
Hotel
operating                                                                      
costs:
Rents         (183,367) (235,729) (255,967) (41,085)  (655,247)   (916,357)   (147,085)
Utilities     (40,514)  (53,340)  (58,166)  (9,336)   (150,865)   (215,768)   (34,633)
Personnel     (97,065)  (128,840) (143,511) (23,035)  (329,078)   (505,773)   (81,182)
costs
Depreciation
and            (66,611)  (88,500)  (93,929)  (15,077)  (227,938)   (337,162)   (54,118)
amortization
Consumables,
food and       (70,341)  (89,519)  (94,190)  (15,119)  (228,244)   (333,245)   (53,490)
beverage
Others        (35,921)  (34,097)  (48,312)  (7,755)   (111,965)   (145,597)   (23,370)
Total hotel
operating      (493,819) (630,025) (694,075) (111,407) (1,703,337) (2,453,902) (393,878)
costs
Selling and
marketing      (29,307)  (24,316)  (28,959)  (4,648)   (94,754)    (102,814)   (16,503)
expenses
General and
administrative (43,792)  (55,734)  (61,044)  (9,798)   (160,062)   (217,388)   (34,893)
expenses
Pre-opening   (49,460)  (63,230)  (69,835)  (11,209)  (184,298)   (230,690)   (37,028)
expenses
Total
operating      (616,378) (773,305) (853,913) (137,062) (2,142,451) (3,004,794) (482,302)
costs and
expenses
Income from    34,359    120,332   29,284    4,701     107,146     219,733     35,270
operations
Interest       5,199     3,932     3,309     531       18,111      14,554      2,336
income
Interest       (213)     (200)     (200)     (32)      (882)       (822)       (132)
expenses
Other income   753       377       374       60        2,649       2,208       354
Foreign
exchange       2,734     (248)     354       57        15,930      (2,000)     (321)
gain/(loss)
Income before  42,832    124,193   33,121    5,317     142,954     233,673     37,507
income tax
Income tax     (11,192)  (26,289)  (13,311)  (2,137)   (24,816)    (54,169)    (8,695)
expense
Net income     31,640    97,904    19,810    3,180     118,138     179,504     28,812
Net income
attributable
to             (1,340)   (2,112)   (1,618)   (260)     (3,306)     (4,617)     (741)
noncontrolling
interests
Net income
attributable
to China       30,300    95,792    18,192    2,920     114,832     174,887     28,071
Lodging Group,
Limited
                                                                              
Net earnings                                                                   
per share
— Basic        0.12      0.39      0.07      0.01      0.47        0.72        0.12
— Diluted      0.12      0.39      0.07      0.01      0.47        0.71        0.11
                                                                              
Net earnings                                                                   
per ADS
— Basic        0.50      1.57      0.30      0.05      1.90        2.88        0.46
— Diluted      0.49      1.55      0.29      0.05      1.87        2.83        0.45
                                                                              
Weighted
average
ordinary                                                                       
shares
outstanding
— Basic        242,461   243,282   244,318   244,318   241,928     243,284     243,284
— Diluted      245,896   247,620   248,265   248,265   246,181     246,981     246,981
                                                                              
Other
comprehensive                                                                  
income/(loss),
net of tax
Foreign
currency       (2,841)   126       (760)     (122)     (16,463)    758         122
translation
adjustments
Comprehensive  28,799    98,030    19,050    3,058     101,675     180,262     28,934
income
Comprehensive
income
attributable   (1,340)   (2,112)   (1,618)   (260)     (3,306)     (4,617)     (741)
to the
noncontrolling
interest
Comprehensive
income
attributable   27,459    95,918    17,432    2,798     98,369      175,645     28,193
to China
Lodging Group,
Limited


China Lodging Group, Limited
Unaudited Condensed Consolidated Statements of Cash Flows
              Quarter Ended                              Year Ended
              December   September  December 31, 2012    December   December 31, 2012
               31, 2011   30, 2012                        31, 2011
              RMB        RMB        RMB        US$       RMB        RMB          US$
              (in thousands)
Operating                                                                   
activities:
Net income     31,640    97,904    19,810    3,180    118,138   179,504     28,812
Adjustments to
reconcile net
income to net                                                               
cash provided
by operating
activities:
Share-based    2,858     7,789     5,103     819      15,483    20,837      3,345
compensation
Depreciation
and            70,328    90,991    96,834    15,543   236,857   347,575     55,790
amortization
Deferred taxes (35,714)  --       (18,226)  (2,925)  (35,714)  (18,226)    (2,925)
Bad debt       554       618       (735)     (118)    667       1,238       199
expenses
Deferred rent  27,966    46,155    37,259    5,980    92,927    143,858     23,092
Impairment     710       --       4,549     730      710       5,349       859
loss
Excess tax
benefit from   (8,324)   (2,865)   (793)     (127)    (8,324)   (4,302)     (691)
share-based
compensation
Changes in
operating
assets and
liabilities,                                                                
net of effect
of
acquisitions:
Accounts       (4,669)   2,129     (1,773)   (285)    (16,401)  (12,336)    (1,980)
receivable
Prepaid rent   (34,442)  (21,382)  (43,029)  (6,907)  (75,820)  (93,218)    (14,963)
Inventories    (4,736)   (1,198)   (4,991)   (801)    (12,792)  (6,714)     (1,078)
Amount due
from related   --       --       --       --      3,267     --         --
parties
Other current  (14,701)  926       (20,616)  (3,309)  (15,684)  (29,404)    (4,720)
assets
Other assets   176       (7,705)   (7,030)   (1,128)  (22,102)  (31,482)    (5,053)
Accounts       (627)     (1,775)   5,493     882      3,435     3,390       544
payable
Amount due to
related        (290)     (249)     (366)     (59)     175       (229)       (37)
parties
Salary and
welfare        37,718    (28,811)  57,914    9,296    22,628    36,809      5,906
payables
Deferred       26,549    27,299    23,108    3,709    92,803    90,468      14,521
revenue
Accrued
expenses and   169       14,927    7,425     1,192    34,246    36,076      5,791
other current
liabilities
Income tax
payable and    34,290    8,621     22,078    3,544    7,350     13,296      2,134
receivable
Other
long-term      5,469     9,448     9,348     1,500    16,891    33,231      5,334
liabilities
Net cash
provided by    134,924   242,822   191,362   30,716   458,740   715,720     114,880
operating
activities
Investing                                                                   
activities:
Purchase of
property and   (208,746) (278,226) (263,764) (42,337) (768,756) (998,050)   (160,198)
equipment
Purchases of   (13,037)  (527)     (1,936)   (311)    (14,674)  (3,532)     (567)
intangibles
Amount
received as a
result of      --       --       --       --      6,900     --         --
government
zoning
Acquisitions,
net of cash    (9,540)   (3,040)   (510)     (82)     (57,822)  (30,055)    (4,824)
received
Payment to
acquire        --       --       --       --      --       (28,129)    (4,515)
investment
Purchase of
short term     --       --       (8,074)   (1,296)  (30,000)  (8,074)     (1,296)
investment
Proceeds from
sales of       30,000    --       --       --      130,000   --         --
short-term
investments
Decrease
(increase) in  4,000     (46,500)  59,665    9,577    (225)     (290)       (47)
restricted
cash
Net cash used
in investing   (197,323) (328,293) (214,619) (34,449) (734,577) (1,068,130) (171,447)
activities
Financing                                                                   
activities:
Net proceeds
from issuance
of ordinary    2,076     7,770     6,017     966      7,285     18,520      2,973
shares upon
exercise of
option
Proceeds from
long-term bank --       --       --       --      --       1,000       161
loans
Repayment of   --       (90)      (880)     (141)    --       (1,000)     (161)
long term debt
Funds advanced
from           --       --       3,000     482      3,485     3,000       482
noncontrolling
shareholders
Repayment of
funds advanced
from           (533)     (674)     (621)     (100)    (2,568)   (2,681)     (430)
noncontrolling
interest
holders
Contribution
from
noncontrolling --       210       25        4        459       240         39
interest
holders
Dividend paid
to
noncontrolling (127)     (183)     (168)     (27)     (3,151)   (3,486)     (560)
interest
holders
Excess tax
benefit from   8,324     2,865     793       127      8,324     4,302       691
share-based
compensation
Net cash
provided by
(used          9,740     9,898     8,166     1,311    13,834    19,895      3,195
in)financing
activities
Effect of
exchange rate
changes on     (2,841)   125       (760)     (122)    (16,463)  758         122
cash and cash
equivalents
Net increase
(decrease) in  (55,500)  (75,448)  (15,851)  (2,544)  (278,466) (331,757)   (53,251)
cash and cash
equivalents
Cash and cash
equivalents,   837,101   541,143   465,695   74,749   1,060,067 781,601     125,456
beginning of
period
Cash and cash
equivalents,   781,601   465,695   449,844   72,205   781,601   449,844     72,205
end of period


China Lodging Group, Limited
Unaudited reconciliation of GAAP and Non-GAAP Results
               Quarter Ended December 31, 2012
               GAAP Result % of Net Share-based  % of Net Non-GAAP   % of Net
                            Revenues Compensation Revenues Result     Revenues
               RMB                 RMB                  RMB        
               (in thousands)
                                                                
Hotel operating 694,075    78.6%    318         0.0%     693,757   78.6%
costs
Selling and
marketing       28,959     3.3%     164         0.0%     28,795    3.3%
expenses
General and
administrative  61,044     6.9%     4,621       0.5%     56,423    6.4%
expenses
Pre-opening     69,835     7.9%     --         0.0%     69,835    7.9%
expenses
Total operating
costs and       853,913    96.7%    5,103       0.5%     848,810   96.2%
expenses
Income from     29,284     3.3%     5,103       0.5%     34,387    3.8%
operations
                                                                
               Quarter Ended December 31, 2012
               GAAP Result % of Net Share-based  % of Net Non-GAAP   % of Net
                            Revenues Compensation Revenues Result     Revenues
               US$                US$                  US$        
               (in thousands)
                                                                
Hotel operating 111,407    78.6%    51          0.0%     111,356   78.6%
costs
Selling and
marketing       4,648      3.3%     26          0.0%     4,622     3.3%
expenses
General and
administrative  9,798      6.9%     742         0.5%     9,056     6.4%
expenses
Pre-opening     11,209     7.9%     --         0.0%     11,209    7.9%
expenses
Total operating
costs and       137,062    96.7%    819         0.5%     136,243   96.2%
expenses
Income from     4,701      3.3%     819         0.5%     5,520     3.8%
operations
                                                                
               Quarter Ended September 30, 2012
               GAAP Result % of Net Share-based  % of Net Non-GAAP   % of Net
                            Revenues Compensation Revenues Result     Revenues
               RMB                 RMB                  RMB        
               (in thousands)
                                                                
Hotel operating 630,025    70.5%    1,029       0.1%     628,996   70.4%
costs
Selling and
marketing       24,316     2.7%     289         0.0%     24,027    2.7%
expenses
General and
administrative  55,734     6.2%     6,471       0.7%     49,263    5.5%
expenses
Pre-opening     63,230     7.1%     --         0.0%     63,230    7.1%
expenses
Total operating
costs and       773,305    86.5%    7,789       0.8%     765,516   85.7%
expenses
Income/(Loss)   120,332    13.5%    7,789       0.8%     128,121   14.3%
from operations
                                                                
               Quarter Ended December 31, 2011
               GAAP Result % of Net Share-based  % of Net Non-GAAP   % of Net
                            Revenues Compensation Revenues Result     Revenues
               RMB                 RMB                  RMB        
               (in thousands)
                                                                
Hotel operating 493,819    75.9%    536         0.1%     493,283   75.8%
costs
Selling and
marketing       29,307     4.5%     178         0.0%     29,129    4.5%
expenses
General and
administrative  43,792     6.7%     2,144       0.3%     41,648    6.4%
expenses
Pre-opening     49,460     7.6%     --         0.0%     49,460    7.6%
expenses
Total operating
costs and       616,378    94.7%    2,858       0.4%     613,520   94.3%
expenses
Income from     34,359     5.3%     2,858       0.4%     37,217    5.7%
operations
                                                                
               Year Ended December 31, 2012
               GAAP Result % of Net Share-based  % of Net Non-GAAP   % of Net
                            Revenues Compensation Revenues Result     Revenues
               RMB                 RMB                  RMB        
               (in thousands)
                                                                
Hotel operating 2,453,902  76.1%    2,592       0.1%     2,451,310 76.0%
costs
Selling and
marketing       102,814    3.2%     1,031       0.0%     101,783   3.2%
expenses
General and
administrative  217,388    6.7%     17,214      0.5%     200,174   6.2%
expenses
Pre-opening     230,690    7.2%     --         0.0%     230,690   7.2%
expenses
Total operating
costs and       3,004,794  93.2%    20,837      0.6%     2,983,957 92.6%
expenses
Income from     219,733    6.8%     20,837      0.6%     240,570   7.4%
operations
                                                                
               Year Ended December 31, 2012
               GAAP Result % of Net Share-based  % of Net Non-GAAP   % of Net
                            Revenues Compensation Revenues Result     Revenues
               US$                US$                 US$       
               (in thousands)
Hotel operating 393,878    76.1%    416         0.1%     393,462   76.0%
costs
Selling and
marketing       16,503     3.2%     166         0.0%     16,337    3.2%
expenses
General and
administrative  34,893     6.7%     2,763       0.5%     32,130    6.2%
expenses
Pre-opening     37,028     7.2%     --         0.0%     37,028    7.2%
expenses
Total operating
costs and       482,302    93.2%    3,345       0.6%     478,957   92.6%
expenses
Income from     35,270     6.8%     3,345       0.6%     38,615    7.4%
operations
                                                                
               Year Ended December 31, 2011
               GAAP Result % of Net Share-based  % of Net Non-GAAP   % of Net
                            Revenues Compensation Revenues Result     Revenues
               RMB                 RMB                  RMB        
               (in thousands)
Hotel operating 1,703,337  75.7%    2,115       0.1%     1,701,222 75.6%
costs
Selling and
marketing       94,754     4.2%     783         0.0%     93,971    4.2%
expenses
General and
administrative  160,062    7.1%     12,585      0.6%     147,477   6.5%
expenses
Pre-opening     184,298    8.2%     --         0.0%     184,298   8.2%
expenses
Total operating
costs and       2,142,451  95.2%    15,483      0.7%     2,126,968 94.5%
expenses
Income from     107,146    4.8%     15,483      0.7%     122,629   5.5%
operations


China Lodging Group, Limited
Unaudited reconciliation of GAAP and Non-GAAP Results
            Quarter Ended                               Year Ended
            December   September  December 31, 2012     December 31, December 31, 2012
             31, 2011   30, 2012                         2011
            RMB        RMB        RMB        US$        RMB          RMB          US$
            (in thousands, except per share and per ADS data)
                                                                            
Net income
attributable
to China
Lodging      30,300    95,792    18,192    2,920     114,832     174,887     28,071
Group,
Limited
(GAAP)
Share-based
compensation 2,858     7,789     5,103     819       15,483      20,837      3,345
expenses
Adjusted net
income
attributable
to China     33,158    103,581   23,295    3,739     130,315     195,724     31,416
Lodging
Group,
Limited
(non-GAAP)
                                                                            
Net earnings
per share                                                                    
(GAAP)
— Basic      0.12      0.39      0.07      0.01      0.47        0.72        0.12
— Diluted    0.12      0.39      0.07      0.01      0.47        0.71        0.11
                                                                            
Net earnings
per ADS                                                                      
(GAAP)
— Basic      0.50      1.57      0.30      0.05      1.90        2.88        0.46
— Diluted    0.49      1.55      0.29      0.05      1.87        2.83        0.45
                                                                            
Adjusted net
earnings per                                                                 
share
(non-GAAP)
— Basic      0.14      0.43      0.10      0.02      0.54        0.80        0.13
— Diluted    0.13      0.42      0.09      0.02      0.53        0.79        0.13
                                                                            
Adjusted net
earnings per                                                                 
ADS
(non-GAAP)
— Basic      0.55      1.70      0.38      0.06      2.15        3.22        0.52
— Diluted    0.54      1.67      0.38      0.06      2.12        3.17        0.51
                                                                            
Weighted
average
ordinary                                                                     
shares
outstanding
— Basic      242,461   243,282   244,318   244,318   241,928     243,284     243,284
— Diluted    245,896   247,620   248,265   248,265   246,181     246,981     246,981
                                                                            
            Quarter Ended                               Year Ended
            December   September  December 31, 2012     December 31, December 31, 2012
             31, 2011   30, 2012                         2011
            RMB        RMB        RMB        US$        RMB          RMB          US$
            (in thousands)
                                                                            
Net income
attributable
to China
Lodging      30,300    95,792    18,192    2,920     114,832     174,887     28,071
Group,
Limited
(GAAP)
Interest     213       200       200       32        882         822         132
expenses
Income tax   11,192    26,289    13,311    2,137     24,816      54,169      8,695
expense
Depreciation
and          70,328    90,991    96,834    15,543    236,857     347,575     55,790
amortization
EBITDA       112,033   213,272   128,537   20,632    377,387     577,453     92,688
(non-GAAP)
Pre-opening  49,460    63,230    69,835    11,209    184,298     230,690     37,028
expenses
Share-based  2,858     7,789     5,103     819       15,483      20,837      3,345
Compensation
Adjusted
EBITDA from
operating    164,351   284,291   203,475   32,660    577,168     828,980     133,061
hotels
(non-GAAP)
                                                                            
            Quarter Ended                               Year Ended
            December   September  December 31, 2012     December 31, December 31, 2012
             31, 2011   30, 2012                         2011
            RMB        RMB        RMB        US$        RMB          RMB          US$
            (in thousands)
                                                                            
Net revenues 650,737   893,637   883,197   141,763   2,249,597   3,224,527   517,572
(GAAP)
Less:Hotel
operating    (493,819) (630,025) (694,075) (111,407) (1,703,337) (2,453,902) (393,878)
costs
Hotel income 156,918   263,612   189,122   30,356    546,260     770,625     123,694
(non-GAAP)

                                                              
                           China Lodging Group, Limited        
Operating Data                                                
                           As of
                           December 31,      September 30,     December 31,
                           2011              2012              2012
Total hotels in operation:  639              938              1,035
Leased hotels              344              415              465
Manachised hotels          295              446              516
Franchised hotels*         --              77               54
Total hotel rooms in        71,621           103,322          113,650
operation
Leased hotels              40,514           48,857           54,694
Manachised hotels          31,107           46,296           53,381
Franchised hotels*         --              8,169            5,575
Number of cities            100              149              171
                                                             
* refers to franchised                                        
Starway hotels
                                                             
Hotel breakdown by brand    As of
                           December 31,      September 30,     December 31,
                           2011              2012              2012
Total hotels in operation:  639              938              1,035
Ji Hotel (previously        22               26                32
Seasons Hotel)
Hanting Hotel               589              795               898
Hi Inn                      28               35                40
Starway Hotel               --              82                65
                                                             
                           For the quarter ended
                           December 31,      September 30,     December 31,
                           2011              2012              2012
Occupancy rate (as a                                          
percentage)
Leased hotels              92%               97%               92%
Manachised hotels          95%               98%               92%
Blended                    93%               97%               92%
Average daily room rate (in                                   
RMB)
Leased hotels              184               188               182
Manachised hotels          173               177               170
Blended                    179               183               176
RevPAR (in RMB)                                               
Leased hotels              170               183               167
Manachised hotels          164               173               157
Blended                    167               178               162
                                                             
                                                             
Like-for-like performance for leased and manachised hotels opened for at least
18 months during the current quarter
                                                             
                           As of and for the quarter ended     
                           December 31,                       
                           2011              2012              
Total                      508              508              
Leased hotels              278              278              
Manachised hotels          230              230              
Total                       59,313           59,313           
Leased hotels              34,431           34,431           
Manachised hotels          24,882           24,882           
Occupancy rate (as a        96%               97%               
percentage)
Average daily rate (in RMB) 182               185               
RevPAR (in RMB)             175               179               

CONTACT: Ida Yu
         Investor Relations Manager
         Tel:  +86 (21) 6195 9561
         Email: ir@htinns.com
         http://ir.htinns.com