“Renting houses or apartments instead of hotels saves money” plus 3 more |
- Renting houses or apartments instead of hotels saves money
- 14 Hotels in Seattle Have Now Been Awarded the Prestigious Green Eco-Leaf Rating
- Hotels hurting — if they even get built
- China Lodging Group, Limited Reports Second Quarter of 2010 Financial Results
| Renting houses or apartments instead of hotels saves money Posted: 30 Jul 2010 08:07 AM PDT , On Friday July 30, 2010, 11:07 am Book a hotel in a popular destination and you know what to expect: a bed, a mini-fridge, and a big bill at checkout. In Europe's big cities, for example, you can easily spend anywhere from $150 to $300 a night (hotels in Florence average $205). But why spend so much, when you can rent a place, swap houses, or arrange a home stay for a lot less? With these options, you'll also get more space, and the chance to live like a local. Hurry, there's still time to grab a deal before summer's end. Rent a place The deal: The soft real estate market has resulted in a flood of vacation rentals. But how much -- if anything -- you'll save over a hotel varies by location, so check prices. Generally, stays of at least seven nights yield the lowest rates. (In London, a typical hotel runs about $200, but we found a one-bedroom in a trendy area for $124 a night for a week.) You'll see bigger savings if you are traveling with a group and had planned to book multiple hotel rooms. Where to look: HomeAway.com. It offers the largest inventory of rentals -- more than 215,000 -- and great tools for sorting through them. You're a procrastinator? Visit VacationRentals.com for last-minute deals. Avoid problems: Ask the owner for references, and contact those folks before booking, says Sarah Schlichter of IndependentTraveler.com. Get terms spelled out in a contract. And aim for a rental that lets you pay by credit card or PayPal so you can dispute charges if the place isn't up to snuff. Trade houses The deal: Home exchanges, in which two families swap pads, are an increasingly popular option. No wonder, as both parties get free lodging. The catch: It can be tricky to find someone who wants to vacation in your town when you want to travel. Where to look: HomeExchange.com ($48 for a three-month membership). This large (37,000 listings) site lets you search for swaps based on date and location. For best results, make arrangements a few months ahead. Avoid problems: Look for homes that have been exchanged before, and ask for references. Chat by phone with swapmates, and iron out details in writing -- for example, is it okay for them to use your car? Be a guest The deal: Plenty of regular folks are opening spare bedrooms to travelers at rates well below those of hotels. Think B&B but on a smaller scale. Where to look: AffordableTravel-Club.net ($65 to $80 a year) has members ages 40 and up in 49 states and 52 countries. Those who join do so not only for the savings but to meet people, so hosts charge just $20 to $30 a night to cover costs. There's no obligation to host, but you'll be listed in the directory. For more selection without the club aspect, try Airbnb.com. Rates vary, and you'll pay a 6% to 12% fee, but a search in New York City turned up a private room and bath for $105 a night (vs. $231, on average, for a hotel). Avoid problems: Interview the hosts ("Will we share a bath?" "Do you have kids?") in advance. The sites themselves offer some protections as well: With Affordable Travel Club, you don't pay until you arrive, so if you don't like what you see, you can back out. Airbnb will help you find another place if your room is not as described. Five Filters featured article: "Peace Envoy" Blair Gets an Easy Ride in the Independent. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 14 Hotels in Seattle Have Now Been Awarded the Prestigious Green Eco-Leaf Rating Posted: 29 Jul 2010 08:30 PM PDT 27 Hotels in Seattle are listed as environmentally friendly and the Westin Seattle becomes the most recent of 14 Seattle hotels that have been awarded the Green Eco-Leaf Rating by completing a 70 point comprehensive eco-audit survey administered by iStayGreen.org - the online social network of environmentally friendly travel. Seattle, Washington (Vocus) July 29, 2010 -- Currently 27 hotels in Seattle, WA (istaygreen.org/getcityus.cfm/city/Seattle/st/WA) are listed as environmentally friendly with iStayGreen.org. The Westin Seattle recently earned a 3 Green Eco-Leaf Rating to become the 14th Seattle hotel to complete the comprehensive environmental audit administered by iStayGreen.org. Ratings range from 1 Green Eco-Leaf to 5 Green Eco Leaf and are summarized as follows: All Green Eco-Leaf Rated properties are committed to environmentally friendly initiatives. Richard Varner, founder of iStayGreen.org states: "Simple changes helped these properties to earn their Green Eco-Leaf Rating and take the environmental lead among the 89 lodging properties in Seattle. It's great to see they're intent on insuring a more sustainable future in travel." To insure a more sustainable future some of the eco-initiatives put in-place at the property include: an on-site Green Team has been created - guests are offered the ability to carbon offset their stay - low energy lighting initiatives are in-place - energy efficient lighting is installed when replacing old lighting - energy sensor initiatives are in-place - HVAC control system installed - off-grid alternative energy source utilized - sheets reuse option for multiple night stays - towels reuse option for multiple night stays - eco-initiatives are actively promoted to the public - eco-incentive programs have been created for staff - water conservation initiatives are in-place - water conserving devices are installed when replacing old fixtures - gray water is recycled - low water consumption landscaping has been installed - recycle containers are located inside guestrooms - recycle containers are located around the property common areas - reusable food & beverage service is used in lieu of disposable service items - compostable disposable service items are utilized - recycled paper products (bath tissue, facial tissue, paper towels, napkins, etc) are utilized - environmentally friendly chemicals are used in cleaning - environmentally friendly detergents are used for laundry - environmentally friendly chemicals are used for carpet cleaning - the entire property is non-smoking - cotton bedding and towels (non-synthetic) are utilized - low VOC materials (paint, adhesives, air freshener, carpet) are used at the property - bulk amenities and soaps are dispensed in guestrooms - plus much more. iStayGreen.org allows you to filter your search to show only the environmentally friendly hotels in Seattle. The lodging industry recognizes the need to create a sustainable future for travel. While there are currently only 27 Seattle lodging properties that have achieved the Green Eco-Leaf Rating, it is anticipated that many other properties in the area that are promoting eco-friendly initiatives also will seek to be rated. This eco-rating allows the public to know the specific environmental initiatives in place at a property, which enables the environmentally conscious traveler to make informed lodging decisions. To find out how a property can earn the Green Eco-Leaf Rating, contact Richard Varner at 602-864-5553 or visit iStayGreen.org. About iStayGreen.org: Contact: Richard Varner # # # iStayGreen.org Five Filters featured article: "Peace Envoy" Blair Gets an Easy Ride in the Independent. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hotels hurting — if they even get built Posted: 29 Jul 2010 05:38 PM PDT Not even Des Plaines, the future home of the state's 10th and final casino, has been spared from the slump devastating the hotel industry. The $445 million project moves forward daily, yet the building of four new hotels in the city has been stalled indefinitely. "I would say 100 percent it's because we're in the worst economic times since the Great Depression," Des Plaines Ald. Mark Walsten said. "That would be the reason (the hotel) projects basically collapsed." From projects in the planning stages to hotels that have been in business for decades, the hospitality industry has been hit across the board, experts said. During the last two years, hundreds of hotel projects that have been contemplated, discussed, even announced in Chicagoland — many in the northwest suburbs — never materialized, said Ted Mandigo, president of TR Mandigo & Co. hospitality consulting firm. Many were unable to get financing. A few projects, most in the downtown Chicago market, started construction but weren't completed, he said. And at least three hotels — two in the northwest suburbs — have closed their doors. Travel is one of the first expenses cut by businesses as well as individuals when times get tough, said Marc Gordon, president and CEO of the Illinois Hotel and Lodging Association. "The economy has been devastating to hotels the last two years," Gordon said. "We've been suffering more than other industries. We'll probably be one of the last to recover once the recovery finally takes hold." A decline in occupancy rates has been a major factor in the closing of local hotels, said Arlington Heights business and development coordinator John C. Melaniphy III. The hotel room occupancy rate for the Chicago area dropped from 64 percent in 2007 to 51.4 percent in 2009, according to data provided to Melaniphy by Smith Travel Research, a leading data provider for the lodging industry. The Woodfield area, however, saw a slight increase in occupancy rates during the beginning of 2010, according to the data. The rate jumped from 40.5 percent in January to 61.8 percent in May with fairly equal increases each month. Still, the uptick didn't come in time to save the Sheraton Hotel and indoor CoCo Key Water Resort on West Euclid Avenue, Melaniphy said. The 426-room hotel in Arlington Heights closed in December. "There is significant competition in the market," Melaniphy said. "There was some speculation that conventioneers and children in bathing suits is not the best formula." On Jan. 1, Wyndham O'Hare at Rosemont also closed, said Rosemont spokesman Gary Mack. That property had been sold several years ago to a group of investors, Mack said. "I would definitely say it was a victim of the economy," he said. "There's no question about that." Having local hotels in financial distress has hindered the progress of new projects, said Mandigo, an assistant professor at Kendall College School of Hospitality Management. Purchasing a hotel secondhand can be more cost-effective than starting a project from scratch, and the possibility has left people waiting to see what is going to happen with struggling establishments. Progress on the four hotels planned for Des Plaines was stalled more than a year ago, Walsten said. They were all expected to go on Mannheim Road — two north of the tollway and two to the south, he said. But lack of funding halted those plans. "I'd love to have hotels down there because we generate the most tax money that way," Walsten said. "The fact of the matter is this particular area happens to be saturated at this time." Construction on a new Choice hotel was supposed to be completed this summer, but the Schaumburg project hasn't even broken ground, said Matt Frank, the village's economic development coordinator. Site permits granted in 2008 have been extended in case the project — it was supposed to go up at Interstate Highway 90 and Roselle Road — eventually will be built, Frank said. The developer is still pursuing financing options. In Hoffman Estates, an approximately 250-room hotel and indoor water park was planned for near Beverly Road and I-90, but the property is now for sale. The developers spent a lot of money on plans but haven't gotten a shovel into the ground, said Gary Skoog, director of economic development for Hoffman Estates. Still, they continue to try to find financing. Skoog said he hasn't lost hope. There are signs, he said, that the economic situation in the village might be slowly improving. Lately, more restaurateurs have been checking out vacant spaces, he said. A Cost Plus World Market store that had closed is expected to reopen in the Poplar Creek Crossing shopping center. And a new machine tooling company plans to build its facility in the village. "We want to think optimistically and positively," Skoog said. "It's not going to be back to the heyday, but we'll take what we can get." Five Filters featured article: "Peace Envoy" Blair Gets an Easy Ride in the Independent. 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| China Lodging Group, Limited Reports Second Quarter of 2010 Financial Results Posted: 29 Jul 2010 01:30 PM PDT Press Release Source: China Lodging Group, Limited On Thursday July 29, 2010, 4:30 pm EDT
SHANGHAI, China, July 29, 2010 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (Nasdaq:HTHT - News) ("HanTing Inns and Hotels" or the "Company"), a leading economy hotel chain operator in China, today announced its unaudited financial results for the quarter ended June 30, 2010. Second Quarter of 2010 Operational Highlights -- During the second quarter of 2010, the Company opened 42 new hotels, including nine leased-and-operated hotels and 33 franchised-and-managed hotels. As of June 30, 2010, the Company had 324 hotels in operation, consisting of 187 leased-and-operated hotels and 137 franchised-and-managed hotels. Our hotels in operation covered 51 cities in China as of June 30, 2010, compared with 47 cities at the end of the previous quarter. -- As of June 30, 2010, the Company had a total pipeline of 159 hotels under development, including 56 leased-and-operated hotels and 103 franchised-and-managed hotels. -- Shanghai World Expo (the "Expo"), lasting from May 1 to October 31, 2010, attracted a significant number of visitors to Shanghai. As of June 30, 2010, 24% of the Company's hotel rooms were in Shanghai. Our RevPAR in Shanghai boosted during the Expo. -- The ADR, or average daily rate, was RMB196 in the second quarter of 2010, compared with RMB174 in the second quarter of 2009 and RMB173 in the previous quarter. The 12.6% year-over-year increase was mainly attributable to the improving economic conditions, our strengthening brand name, and the Expo. The sequential increase was mainly due to seasonality and the Expo. -- The occupancy rate for all hotels in operation was 98% in the second quarter of 2010, compared with 96% in the second quarter of 2009, and 93% in the previous quarter. The Expo greatly contributed to the year-over-year increase. The sequential increase was mainly due to seasonality and the Expo. -- RevPAR, defined as revenue per available room, was RMB192 in the second quarter of 2010, compared with RMB167 in the second quarter of 2009 and RMB161 in the previous quarter. The 15.0% year-over-year increase was attributable to the higher occupancy rate and higher ADR, driven by improving economic conditions, our brand and the Expo. The sequential increase was mainly due to seasonality and the Expo. -- RevPAR for the hotels which had been in operation for at least 18 months was RMB205 for the second quarter of 2010, an 18.5% increase from RMB173 for the second quarter of 2009 for the same group of hotels. The improvement was caused by both higher occupancy rate and higher ADR, as the economy improved, our brand strengthened and the Expo brought additional business opportunities. "We are delighted to see another profitable quarter with remarkable operating performance," said Mr. Matthew Zhang, Chief Executive Officer of HanTing Inns and Hotels. "In the second quarter 2010, we successfully penetrated into four new cities. Our HanTing Club had more than two million individual members as of June 30, 2010." Second Quarter of 2010 Financial Results Total revenues for the quarter increased 39.0% year-over-year to RMB464.0 million (US$68.4 million) primarily as a result of our expanded base of hotels and higher RevPAR. Compared to the first quarter of 2010, our total revenues increased 28.6%. Total revenues from leased-and-operated hotels for the second quarter of 2010 were RMB432.9 million (US$63.8 million), representing a 34.6% increase year-over-year as both the number of leased-and-operated hotels and the revenue per leased-and-operated hotel increased. As of June 30, 2010, we had 187 leased-and-operated hotels in operation, compared with 160 a year ago. Total revenues from franchised-and-managed hotels for the second quarter of 2010 were RMB31.1 million (US$4.6 million), representing a 153.6% increase year-over-year due to the increased number of franchised-and-managed hotels and higher RevPAR. As of June 30, 2010, we had 137 franchised-and-managed hotels in operation, compared with 40 a year ago. Net revenues for the second quarter of 2010 were RMB438.9 million (US$64.7 million), representing an increase of 39.2% year-over-year and an increase of 28.7% sequentially. Total operating costs and expenses for the second quarter of 2010 were RMB334.3 million (US$49.3 million), compared to RMB277.3 million (US$40.6 million) in the second quarter of 2009 and RMB323.7 million (US$47.4 million) in the previous quarter. Total operating costs and expenses excluding share-based compensation expenses (non-GAAP) for the quarter were RMB331.3 million (US$48.9 million), representing a 20.0% increase year-over-year mainly due to our enlarged network. Major components of operating costs and expenses are described and discussed in more details below. Hotel operating costs for the second quarter of 2010 were RMB273.6 million (US$40.4 million), compared to RMB239.1 million (US$35.0 million) in the second quarter of 2009 and RMB272.2 million (US$39.9 million) in the previous quarter. Total hotel operating costs excluding share-based compensation expenses (non-GAAP) were RMB273.3 million (US$40.3 million), representing 62.3% of net revenues, compared to 75.9% for the same quarter in 2009 and 79.7% in the previous quarter. The year-over-year decrease in hotel operating costs as a percentage of net revenues was primarily due to higher revenue per hotel and increased proportion of franchised revenues. Sequentially the hotel operating costs as a percentage of net revenues decreased as the second quarter had higher revenue and lower utility cost. Selling and marketing expenses for the second quarter of 2010 were RMB16.5 million (US$2.4 million), compared to RMB16.3 million (US$2.4 million) in the second quarter of 2009 and RMB14.5 million (US$2.1 million) in the previous quarter. Selling and marketing expenses excluding share-based compensation expenses (non-GAAP) were RMB16.3 million (US$2.4 million), representing 3.7% of net revenues, compared to 5.2% for the same quarter in 2009 and 4.2% in the previous quarter. General and administrative expenses for the second quarter of 2010 were RMB25.6 million (US$3.8 million), compared to RMB14.2 million (US$2.1 million) in the second quarter of 2009 and RMB25.8 million (US$3.8 million) in the previous quarter. General and administrative expenses excluding share-based compensation expenses (non-GAAP) were RMB23.2 million (US$3.4 million), or 5.3% of the net revenues, compared with 4.1% of the net revenues in the same period of 2009 and 6.7% in the previous quarter. The year-over-year increase in general and administrative expenses was mainly driven by increased personnel cost as a result of network expansion, and professional service fees associated with our becoming a public company. Pre-opening expenses for the second quarter of 2010 were RMB18.6 million (US$2.7million), representing an increase of 140.5% year-over-year and an increase of 65.5% sequentially. The increase in pre-opening expenses was mainly due to the increased number of leased-and-operated hotels under construction. Income from operations for the quarter was RMB104.5 million (US$15.4 million), compared to income from operations of RMB38.0 million (US$5.6 million) in the second quarter of 2009 and income from operations of RMB17.2 million (US$2.5 million) in the previous quarter. Excluding share-based compensation expenses, adjusted income from operations (non-GAAP) for the quarter was RMB107.5 million (US$15.9 million), representing a 174.1% increase from the same quarter of 2009. Net income attributable to China Lodging Group, Limited for the quarter was RMB79.7 million (US$11.8 million), compared to net income attributable to China Lodging Group, Limited of RMB27.9 million (US$4.1 million) in the second quarter of 2009, and net income attributable to China Lodging Group, Limited of RMB12.4 million (US$1.8 million) in the previous quarter. Excluding share-based compensation expenses, adjusted net income attributable to the China Lodging Group, Limited (non-GAAP) for the quarter was RMB82.7 million (US$12.2 million), representing a 183.1% increase from the second quarter of 2009. The year-over-year improvement on profit was mainly attributable to the improved RevPAR and the increased number of hotels in our network. The sequential increase in profit was mainly due to seasonality and the favorable impact of the Expo. Basic and diluted net earnings per share/ADS. For the second quarter of 2010, basic net earnings per share was RMB0.33(US$0.05), while diluted net earnings per share was RMB0.32 (US$0.05); basic net earnings per ADS was RMB1.32 (US$0.20), while diluted net earnings per ADS was RMB1.29 (US$0.19). Excluding share-based compensation expenses, adjusted basic net earnings per share (non-GAAP) and adjusted diluted net earnings per share (non-GAAP) were RMB0.34 (US$0.05), and adjusted basic net earnings per ADS (non-GAAP) was RMB1.37 (US$0.20), while adjusted diluted net earnings per ADS (non-GAAP) was RMB1.34 (US$0.20). EBITDA (non-GAAP) for the second quarter of 2010 was RMB144.5 million (US$21.3 million), compared to RMB71.3 million (US$10.4 million) in the second quarter of 2009 and RMB54.9 million (US$8.0 million) in the previous quarter. EBITDA from operating hotels (non-GAAP) was RMB163.0 million (US$24.0 million), an increase of 106.4% from the same period of 2009 and an increase of 146.7% sequentially. The year-over-year increase in EBITDA and EBITDA from operating hotels was primarily due to the substantial expansion of hotels and improved RevPAR during the period. The sequential increase in EBITDA and EBITDA from operating hotels was mainly due to seasonality and the favorable impact of the Expo. Cash flow. Net operating cash flow for the second quarter of 2010 was RMB143.4 million (US$21.1 million). Cash spent on the purchase of property and equipment, which is part of investing cash flow, was RMB64.6 million (US$9.5 million). Cash and cash equivalents. As of June 30, 2010, the Company had cash and cash equivalents of RMB1,285.4 million (US$189.5 million). The Company completed its initial public offering and a private placement to Ctrip.com International, Ltd. on March 26. The net proceeds of approximately US$140 million were received in April 2010. Business Outlook and Guidance "We are pleased with the results for the first half of 2010, as we added 88 hotels and generated RMB92 million of net profit and RMB199 million of EBITDA," commented CEO Mr. Zhang. "For the full year 2010, we expect to open around 60 leased-and-operated hotels and 125 to 135 franchised-and-managed hotels." The Company expects to achieve net revenues in the range of RMB460 to 480 million in the third quarter of 2010. In light of the stronger-than-expected demand driven by the Expo, we adjust our full year net revenues forecast to grow 35% to 37% from 2009. The above forecast reflects the Company's current and preliminary view, which is subject to change. Conference Call HanTing Inns and Hotels' management will host a conference call at 9 p.m. EDT, Thursday, July 29, 2010 (or 9 a.m. on Friday, July 30, 2010 in the Shanghai/Hong Kong time zone) following the announcement. To participate in the event by telephone, please dial +1 (888) 830 9551 (for callers in the U.S.), +86 10 800 152 1039 (for callers in China Mainland), +852 3002 1675 (for callers in Hong Kong) or +1 (408) 961 6560 (for callers outside of the U.S., China Mainland, and Hong Kong) and entering pass code HTHT. 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 August 6, 2010. Please dial +1 877 482 6144 (for callers in the U.S.) or +1 617 213 4164 (for callers outside the U.S.) and entering pass code 765 274 98. The conference call will also be webcast live over the Internet and can be accessed by all interested parties at the Company's Web site, 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 and EBITDA from operating hotels. 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 its performance by excluding share-based expenses that may not be indicative of its operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its 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 useful to investors in allowing for greater transparency with respect to supplemental information used by management in its 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 our 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 comprises a significant portion of the 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 EBITDA from operating hotels, which is defined as EBITDA before pre-opening expenses, to assess operating results of the hotels in operation. The Company believe that the exclusion of pre-opening 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 EBITDA from operating hotels more closely reflects the performance capability of hotels currently in operation. The calculation of EBITDA and EBITDA from operating hotels does not deduct interest income. The presentation of EBITDA and EBITDA from operating hotels should not be construed as an indication that our future results will be unaffected by other charges and gains considered to be outside the ordinary course of the business. The use of EBITDA and 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 have been and will be incurred and are not reflected in the presentation of 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 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. The terms EBITDA and EBITDA from operating hotels are not defined under U.S. GAAP, and neither EBITDA nor 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, you should not consider this data in isolation or as a substitute for our 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 EBITDA from operating hotels may not be comparable to EBITDA or EBITDA from operating hotels or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA or EBITDA from operating hotels in the same manner as the Company does. Reconciliations of the Company's non-GAAP financial measures, including EBITDA and EBITDA from operating hotels, to consolidated statement of operations information are included at the end of this press release. About China Lodging Group, Limited China Lodging Group, Limited ("HanTing Inns and Hotels" or the "Company") is a leading economy hotel chain operator in China. The Company provides business and leisure travelers with high-quality, and conveniently-located hotel products under three brands, namely, HanTing Seasons Hotel, HanTing Express Hotel, and HanTing Hi Inn. As of June 30, 2010, the Company had 324 hotels and 37,782 rooms in 51 cities across China. 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 risks described in "Risk Factors" beginning on page 13 and elsewhere in the Company's registration statement on Form F-1. 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. 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.
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