Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | China Lodging Group, Ltd |
Entity Central Index Key | 1,483,994 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Trading Symbol | HTHT |
Entity Common Stock, Shares Outstanding | 250,881,559 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 1,237,838 | $ 191,089 | ¥ 808,865 |
Restricted cash | 360,500 | 55,652 | 0 |
Short-term investments, including marketable securities measured at fair value of nil and RMB 506,407 as of December 31, 2014 and 2015, respectively | 533,215 | 82,314 | 26,615 |
Accounts receivable, net of allowance of RMB5,977 and RMB5,559 as of December 31, 2014 and 2015, respectively | 93,956 | 14,504 | 89,243 |
Amounts due from a related party | 16,157 | 2,494 | 16,293 |
Prepaid rent | 429,588 | 66,317 | 385,158 |
Inventories | 24,529 | 3,787 | 29,882 |
Other current assets | 167,995 | 25,934 | 160,582 |
Deferred tax assets | 98,200 | 15,160 | 80,026 |
Total current assets | 2,961,978 | 457,251 | 1,596,664 |
Property and equipment, net | 3,805,886 | 587,527 | 3,907,343 |
Intangible assets, net | 144,812 | 22,355 | 104,537 |
Long-term investments, including marketable securities measured at fair value of RMB137,943 and RMB166,546 as of December 31, 2014 and 2015, respectively | 356,578 | 55,046 | 229,005 |
Goodwill | 108,344 | 16,726 | 64,654 |
Other assets | 195,446 | 30,172 | 197,233 |
Deferred tax assets | 120,477 | 18,598 | 83,470 |
Total assets | 7,693,521 | 1,187,675 | 6,182,906 |
Current liabilities: | |||
Short-term debt | 324,680 | 50,122 | 0 |
Accounts payable | 585,347 | 90,362 | 640,691 |
Amounts due to related parties | 7,653 | 1,181 | 6,403 |
Salary and welfare payables | 210,955 | 32,566 | 186,051 |
Deferred revenue | 705,607 | 108,927 | 514,268 |
Accrued expenses and other current liabilities | 576,160 | 88,944 | 313,017 |
Dividends payable | 276,261 | 42,647 | 0 |
Income tax payable | 102,810 | 15,871 | 59,630 |
Deferred tax liabilities | 1,465 | 226 | 701 |
Total current liabilities | 2,790,938 | 430,846 | 1,720,761 |
Deferred rent | 945,192 | 145,912 | 830,414 |
Deferred revenue | 180,861 | 27,920 | 155,395 |
Amounts due to related parties | 0 | 0 | 4,083 |
Other long-term liabilities | 275,954 | 42,600 | 215,762 |
Deferred tax liabilities | 59,828 | 9,237 | 37,778 |
Total liabilities | ¥ 4,252,773 | $ 656,515 | ¥ 2,964,193 |
Commitments and contingencies (Note 20) | |||
Equity: | |||
Ordinary shares (US$0.0001 par value per share; 8,000,000,000 shares authorized; 250,747,255 and 253,978,323 shares issued as of December 31, 2014 and 2015, and 250,747,255 and 250,881,559 shares outstanding as of December 31, 2014 and 2015, respectively) | ¥ 186 | $ 29 | ¥ 184 |
Treasury shares (nil and 3,096,764 shares as of December 31 2014 and 2015, respectively) | (107,331) | (16,569) | 0 |
Additional paid-in capital | 2,470,099 | 381,318 | 2,381,568 |
Retained earnings | 1,007,559 | 155,540 | 847,220 |
Accumulated other comprehensive income (loss) | 59,596 | 9,200 | (12,008) |
Total China Lodging Group, Limited shareholders' equity | 3,430,109 | 529,518 | 3,216,964 |
Noncontrolling interest | 10,639 | 1,642 | 1,749 |
Total equity | 3,440,748 | 531,160 | 3,218,713 |
Total liabilities and equity | ¥ 7,693,521 | $ 1,187,675 | ¥ 6,182,906 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014CNY (¥)shares | Dec. 31, 2014USD ($)$ / sharesshares |
Short-term investments, including marketable securities | ¥ | ¥ 506,407 | |||
Accounts receivable, allowance (in CNY) | 5,559 | ¥ 5,977 | ||
Long-term investments, including marketable securities | ¥ | ¥ 166,546 | ¥ 137,943 | ||
Ordinary shares, par value per share | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 8,000,000,000 | 8,000,000,000 | 8,000,000,000 | 8,000,000,000 |
Ordinary shares, shares issued | 253,978,323 | 253,978,323 | 250,747,255 | 250,747,255 |
Ordinary shares, shares outstanding | 250,881,559 | 250,881,559 | 250,747,255 | 250,747,255 |
Treasury stock, shares | 3,096,764 | 3,096,764 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | Dec. 31, 2013CNY (¥)¥ / sharesshares | |
Revenues: | ||||
Leased hotels | ¥ 4,986,872 | $ 769,840 | ¥ 4,522,431 | ¥ 3,870,887 |
Manachised and franchised hotels | 1,123,979 | 173,512 | 742,797 | 549,958 |
Total revenues | 6,110,851 | 943,352 | 5,265,228 | 4,420,845 |
Less: Business tax and related taxes | 336,227 | 51,904 | 300,500 | 252,216 |
Net revenues | 5,774,624 | 891,448 | 4,964,728 | 4,168,629 |
Operating costs and expenses: | ||||
Hotel operating costs | 4,512,147 | 696,556 | 3,878,027 | 3,181,666 |
Selling and marketing expenses | 179,568 | 27,720 | 187,435 | 138,129 |
General and administrative expenses | 403,008 | 62,214 | 342,128 | 284,756 |
Pre-opening expenses | 110,011 | 16,983 | 186,325 | 211,284 |
Total operating costs and expenses | 5,204,734 | 803,473 | 4,593,915 | 3,815,835 |
Other operating income, net | 31,264 | 4,827 | 18,551 | 27,750 |
Income from operations | 601,154 | 92,802 | 389,364 | 380,544 |
Interest income | 26,712 | 4,124 | 23,162 | 6,856 |
Interest expense | 3,854 | 595 | 1,533 | 813 |
Other income, net | 4,083 | 630 | 4,749 | 1,907 |
Foreign exchange gain (loss) | 7,814 | 1,206 | (246) | 21 |
Income before income taxes | 635,909 | 98,167 | 415,496 | 388,515 |
Income tax expense | 196,529 | 30,339 | 113,105 | 104,820 |
Net income | 439,380 | 67,828 | 302,391 | 283,695 |
Less: net income (loss) attributable to noncontrolling interest | 2,780 | 429 | (4,957) | 3,837 |
Net income attributable to China Lodging Group, Limited | 436,600 | 67,399 | 307,348 | 279,858 |
Other comprehensive income | ||||
Unrealized securities holding gains , net of tax of nil, 9,485 and 7,151 for 2013, 2014 and 2015 | 68,069 | 10,508 | 28,458 | |
Foreign currency translation adjustments, net of tax of nil for 2013, 2014 and 2015 | 3,535 | 546 | (1,082) | (976) |
Comprehensive income | 510,984 | 78,882 | 329,767 | 282,719 |
Comprehensive income (loss) attributable to the noncontrolling interest | 2,780 | 429 | (4,957) | 3,837 |
Comprehensive income attributable to China Lodging Group, Limited | ¥ 508,204 | $ 78,453 | ¥ 334,724 | ¥ 278,882 |
Earnings per share: | ||||
Basic (in RMB and dollars per share) | (per share) | ¥ 1.74 | $ 0.27 | ¥ 1.23 | ¥ 1.14 |
Diluted (in RMB and dollars per share) | (per share) | ¥ 1.70 | $ 0.26 | ¥ 1.21 | ¥ 1.12 |
Weighted average number of shares used in computation: | ||||
Basic (in shares) | 250,533,204 | 250,533,204 | 248,957,645 | 245,187,348 |
Diluted (in shares) | 256,104,167 | 256,104,167 | 253,004,204 | 249,486,284 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Unrealized securities holding gains, tax | ¥ 7,151 | ¥ 9,485 | ¥ 0 |
Foreign currency translation adjustments, tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Common Stock [Member]CNY (¥)shares | Treasury Shares [Member]CNY (¥)shares | Additional Paid-in Capital [Member]CNY (¥) | Retained Earnings [Member]CNY (¥) | Accumulated Other Comprehensive Loss [Member]CNY (¥) | Noncontrolling Interest [Member]CNY (¥) |
Balance at Dec. 31, 2012 | ¥ 2,490,565 | ¥ 180 | ¥ 0 | ¥ 2,243,403 | ¥ 260,014 | ¥ (38,408) | ¥ 25,376 | |
Balance (in shares) at Dec. 31, 2012 | shares | 244,494,095 | 0 | ||||||
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks | 29,146 | ¥ 2 | ¥ 0 | 29,144 | 0 | 0 | 0 | |
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks (in shares) | shares | 3,057,904 | 0 | ||||||
Share-based compensation | 30,468 | ¥ 0 | ¥ 0 | 30,468 | 0 | 0 | 0 | |
Excess tax benefit from share-based compensation | 14,582 | 0 | 0 | 14,582 | 0 | 0 | 0 | |
Acquisitions of noncontrolling interest | (16,460) | 0 | 0 | (2,514) | 0 | 0 | (13,946) | |
Net income | 283,695 | 0 | 0 | 0 | 279,858 | 0 | 3,837 | |
Dividend paid to noncontrolling interest holders | (3,229) | 0 | 0 | 0 | 0 | 0 | (3,229) | |
Foreign currency translation adjustments | (976) | 0 | 0 | 0 | 0 | (976) | 0 | |
Balance at Dec. 31, 2013 | 2,827,791 | ¥ 182 | ¥ 0 | 2,315,083 | 539,872 | (39,384) | 12,038 | |
Balance (in shares) at Dec. 31, 2013 | shares | 247,551,999 | 0 | ||||||
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks | 20,853 | ¥ 2 | ¥ 0 | 20,851 | 0 | 0 | 0 | |
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks (in shares) | shares | 3,144,224 | 0 | ||||||
Issuance of ordinary shares in exchange of service | 2,000 | ¥ 0 | ¥ 0 | 2,000 | 0 | 0 | 0 | |
Issuance of ordinary shares in exchange of service (in shares) | shares | 51,032 | 0 | ||||||
Share-based compensation | 31,937 | ¥ 0 | 31,937 | 0 | 0 | 0 | ||
Excess tax benefit from share-based compensation | 11,697 | ¥ 0 | 0 | 11,697 | 0 | 0 | 0 | |
Noncontrolling interest recognized in connection with acquisitions | 25 | 0 | 0 | 0 | 0 | 0 | 25 | |
Net income | 302,391 | 0 | 307,348 | 0 | (4,957) | |||
Unrealized securities holding gains, net of tax | 28,458 | 0 | 0 | 0 | 0 | 28,458 | 0 | |
Dividend paid to noncontrolling interest holders | (5,357) | 0 | 0 | 0 | 0 | 0 | (5,357) | |
Foreign currency translation adjustments | (1,082) | 0 | 0 | 0 | 0 | (1,082) | 0 | |
Balance at Dec. 31, 2014 | 3,218,713 | ¥ 184 | ¥ 0 | 2,381,568 | 847,220 | (12,008) | 1,749 | |
Balance (in shares) at Dec. 31, 2014 | shares | 250,747,255 | 0 | ||||||
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks | 23,160 | ¥ 2 | ¥ 0 | 23,158 | 0 | 0 | 0 | |
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks (in shares) | shares | 3,231,068 | 0 | ||||||
Share-based compensation | 52,535 | ¥ 0 | ¥ 0 | 52,535 | 0 | 0 | 0 | |
Excess tax benefit from share-based compensation | 12,838 | 0 | 0 | 12,838 | 0 | 0 | 0 | |
Noncontrolling interest recognized in connection with acquisitions | 8,264 | 0 | 0 | 0 | 0 | 0 | 8,264 | |
Net income | 439,380 | $ 67,828 | 0 | 0 | 0 | 436,600 | 0 | 2,780 |
Unrealized securities holding gains, net of tax | 68,069 | 10,508 | 0 | 0 | 0 | 0 | 68,069 | 0 |
Dividend paid to noncontrolling interest holders | (4,604) | 0 | 0 | 0 | 0 | 0 | (4,604) | |
Capital contribution from noncontrolling interest holders | 2,450 | ¥ 0 | ¥ 0 | 0 | 0 | 0 | 2,450 | |
Capital contribution from noncontrolling interest holders (in shares) | shares | 0 | 0 | ||||||
Repurchase of shares | (107,331) | ¥ 0 | ¥ (107,331) | 0 | 0 | 0 | 0 | |
Repurchase of shares (in shares) | shares | 0 | (3,096,764) | ||||||
Cash dividends declared | (276,261) | ¥ 0 | ¥ 0 | 0 | (276,261) | 0 | 0 | |
Foreign currency translation adjustments | 3,535 | 546 | 0 | 0 | 0 | 0 | 3,535 | 0 |
Balance at Dec. 31, 2015 | ¥ 3,440,748 | $ 531,160 | ¥ 186 | ¥ (107,331) | ¥ 2,470,099 | ¥ 1,007,559 | ¥ 59,596 | ¥ 10,639 |
Balance (in shares) at Dec. 31, 2015 | shares | 253,978,323 | (3,096,764) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Operating activities: | ||||
Net income | ¥ 439,380 | $ 67,828 | ¥ 302,391 | ¥ 283,695 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share-based compensation | 52,535 | 8,110 | 31,937 | 30,468 |
Depreciation and amortization | 661,404 | 102,103 | 570,722 | 463,146 |
Deferred taxes | (50,149) | (7,742) | (42,391) | (22,619) |
Bad debt expenses | 1,997 | 308 | 4,770 | 4,573 |
Deferred rent | 130,301 | 20,115 | 182,580 | 187,214 |
Loss (gain) from disposal of property and equipment | (5,519) | (852) | 803 | (10,734) |
Impairment loss | 95,608 | 14,759 | 27,391 | 7,965 |
Investment loss (income) | 129 | 20 | (4,902) | 430 |
Excess tax benefit from share-based compensation | (12,838) | (1,982) | (11,697) | (14,582) |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||||
Accounts receivable | (5,749) | (888) | (18,773) | (28,270) |
Prepaid rent | (44,430) | (6,859) | (21,577) | (42,276) |
Inventories | 5,952 | 919 | 4,130 | 4,043 |
Amounts due from related parties | 0 | 0 | 256 | (658) |
Other current assets | (15,518) | (2,395) | (42,369) | (26,400) |
Other assets | 1,787 | 276 | (13,220) | (50,228) |
Accounts payable | 14,194 | 2,191 | 18,016 | 3,605 |
Amounts due to related parties | 1,250 | 193 | 810 | 708 |
Salary and welfare payables | 24,532 | 3,787 | 38,813 | 28,768 |
Deferred revenue | 216,805 | 33,469 | 253,562 | 115,787 |
Accrued expenses and other current liabilities | 121,502 | 18,757 | 58,995 | 62,545 |
Income tax payable | 56,019 | 8,647 | 45,274 | 17,493 |
Other long-term liabilities | 60,481 | 9,337 | 68,494 | 55,496 |
Net cash provided by operating activities | 1,749,673 | 270,101 | 1,454,015 | 1,070,169 |
Investing activities: | ||||
Purchases of property and equipment for hotels in operation and headquarters | (315,117) | (48,646) | (282,467) | (170,481) |
Purchases of property and equipment for hotels under development | (325,105) | (50,187) | (648,455) | (902,166) |
Purchases of intangibles | (8,818) | (1,361) | (10,423) | (4,290) |
Amount received as a result of government zoning | 6,721 | 1,038 | 10,557 | 15,030 |
Acquisitions, net of cash received | (19,153) | (2,957) | (16,050) | (34,070) |
Proceeds from disposal of subsidiary and branch | 5,000 | 772 | 18,484 | 0 |
Purchase of long-term investments | (137,707) | (21,258) | (191,064) | (54,744) |
Proceeds from maturity/sale of long-term investments | 29,139 | 4,498 | 88,266 | 0 |
Payment for shareholder loan to joint venture | (1,386) | (214) | (15,640) | 0 |
Collection of shareholder loan from joint venture | 1,522 | 235 | 0 | 0 |
Purchases of short-term investments | (455,811) | (70,365) | (75,210) | 0 |
Proceeds from maturity/sale of short-term investments | 30,858 | 4,764 | 55,499 | 0 |
Decrease (increase) in restricted cash | (360,500) | (55,652) | 3,317 | (1,527) |
Net cash used in investing activities | (1,550,357) | (239,333) | (1,063,186) | (1,152,248) |
Financing activities: | ||||
Net proceeds from issuance of ordinary shares upon exercise of options | 22,619 | 3,492 | 20,985 | 28,122 |
Payment of share repurchase | (107,331) | (16,569) | 0 | 0 |
Proceeds from short-term debt | 589,376 | 90,984 | 300,000 | 105,796 |
Repayment of short-term debt | (283,516) | (43,767) | (300,000) | (105,796) |
Funds advanced from noncontrolling interest holders | 5,432 | 839 | 0 | 1,945 |
Repayment of funds advanced from noncontrolling interest holders | (900) | (139) | (1,559) | (6,564) |
Acquisitions of noncontrolling interest | (4,083) | (630) | (4,083) | (4,210) |
Contribution from noncontrolling interest holders | 2,450 | 378 | 0 | 0 |
Dividend paid to noncontrolling interest holders | (4,604) | (711) | (5,357) | (3,229) |
Excess tax benefit from share-based compensation | 12,838 | 1,982 | 11,697 | 14,582 |
Net cash provided by financing activities | 232,281 | 35,859 | 21,683 | 30,646 |
Effect of exchange rate changes on cash and cash equivalents | (2,624) | (405) | (1,082) | (976) |
Net increase (decrease) in cash and cash equivalents | 428,973 | 66,222 | 411,430 | (52,409) |
Cash and cash equivalents at the beginning of the year | 808,865 | 124,867 | 397,435 | 449,844 |
Cash and cash equivalents at the end of the year | 1,237,838 | 191,089 | 808,865 | 397,435 |
Supplemental disclosure of cash flow information: | ||||
Interest paid, net of amounts capitalized | 3,854 | 595 | 1,533 | 813 |
Income taxes paid | 190,660 | 29,433 | 110,222 | 99,065 |
Supplemental schedule of non-cash investing and financing activities: | ||||
Purchases of property and equipment included in payables | 513,168 | 79,219 | 585,119 | 639,749 |
Consideration payable for business acquisition | 113,458 | 17,515 | 7,560 | 8,939 |
Purchase of intangible assets included in payables | 7,646 | 1,180 | 8,682 | 9,660 |
Reimbursement of government zoning included in receivables | 2,099 | 324 | 1,000 | 6,042 |
Proceeds from disposal of subsidiary and branch included in receivables | 0 | 0 | 5,000 | 0 |
Proceeds from issuance of ordinary shares upon exercise of options included in receivables | 1,727 | 267 | 1,185 | 1,318 |
Acquisition of noncontrolling interest included in payables | ¥ 4,083 | $ 630 | ¥ 8,167 | ¥ 12,250 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES China Lodging Group, Limited (the “Company”) was incorporated in the Cayman Islands under the laws of the Cayman Islands on January 4, 2007. The principal business activities of the Company and its subsidiaries (the “Group”) are to develop leased, manachised and franchised hotels under the “Joya Hotel”, “Manxin Hotels & Resorts ”, “JI Hotel”, “Starway Hotel” , “HanTing Hotel”, “Elan Hotel” and “Hi Inn” brands in the People’s Republic of China (“PRC”). As of December 31, 2015, the Group does not own any hotel properties. Leased hotels The Group leases hotel properties from property owners and is responsible for all aspects of hotel operations and management, including hiring, training and supervising the managers and employees required to operate the hotels. In addition, the Group is responsible for hotel development and customization to conform to the standards of the Group brands at the beginning of the lease, as well as repairs and maintenance, operating expenses and management of properties over the term of the lease. Under the lease arrangements, the Group typically receives rental holidays of two to six months and pays rent on a quarterly or biannual basis. Rent is typically subject to the fixed escalations of three to five percent every three to five years. The Group recognizes rental expense on a straight-line basis over the lease term. As of December 31, 2014 and 2015, the Group had 611 616 Manachised and franchised hotels Typically the Group enters into certain franchise and management arrangements with franchisees for which the Group is responsible for providing branding, quality assurance, training, reservation, hiring and appointing of the hotel general manager and various other support services relating to the hotel renovation and operation. Those hotels are classified as manachised hotels. Under typical franchise and management agreements, the franchisee is required to pay an initial franchise fee and ongoing franchise and management service fees, the majority of which are equal to a certain percentage of the revenues of the hotel. The franchisee is responsible for the costs of hotel development, renovation and the costs of its operations. The term of the franchise and management agreements are typically eight to ten years and are renewable upon mutual agreement between the Group and the franchisee. The Group also has a small number of franchised hotels in which cases the Group does not provide a hotel general manager. As of December 31, 2014 and 2015, the Group had 1,376 2,067 8 80 |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of the Company and its majority-owned subsidiaries. All significant intercompany transactions and balances are eliminated on consolidation. The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The Group is deemed as the primary beneficiary of and consolidates variable interest entities when the Group has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities. The Group evaluates its business activities and arrangements with the entities that operate the manachised and franchised hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception, therefore consolidation is not appropriate under the variable interest entity consolidation guidance. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets, long lived assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include the useful lives and impairment of property and equipment and intangible assets, valuation allowance of deferred tax assets, impairment of goodwill, share-based compensation and costs related to its customer loyalty program. Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. Restricted cash mainly represents deposits used as security against borrowings. Investments represent available-for-sale securities, cost-method investments, equity-method investments and loan receivables. Investments in equity securities that have readily determinable fair values are classified as available-for-sale securities and reported at fair value, with unrealized gains and losses recorded as a component of other comprehensive income or loss. Realized gains or losses are recognized in the consolidated statements of comprehensive income during the period in which the gains or losses are realized. If the Group determines that a decline in the fair value of the individual available-for-sale security is other-than-temporary, the cost basis of the security is written down to the fair value as a new cost basis and the amount of the write-down is accounted for as a realized loss. The new cost basis will not be changed for subsequent recoveries in fair value. The Group reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to: (1) the nature of the investment; (2) the cause and duration of the impairment; (3) the extent to which fair value is less than cost; (4) financial conditions and near term prospects of the issuers; and (5) the Group’s ability to hold the security for a period of time sufficient to allow for any anticipated recovery of its amortized cost or fair value. Available-for-sale securities not expected to be realized in cash or sold in the next normal operating cycle of the business are classified as long-term investments. The Group accounts for the investment in a private entity of which the Group owns less than 20 The Group accounts for the investment in entities with significant influence under equity-method accounting. Under this method, the Group’s pro rata share of income (loss) from investment is recognized in the consolidated statements of comprehensive income. Dividends received reduce the carrying amount of the investment. Equity-method investment is reviewed for impairment by assessing if the decline in market value of the investment below the carrying value is other-than-temporary. In making this determination, factors are evaluated in determining whether a loss in value should be recognized. These include consideration of the intent and ability of the Group to hold investment and the ability of the investee to sustain an earnings capacity, justifying the carrying amount of the investment. Impairment losses are recognized in other expense when a decline in value is deemed to be other-than-temporary. No event had occurred that indicated that an other-than-temporary impairment existed and therefore the Group did not record any impairment charges for these investments during 2013, 2014 or 2015. Loan receivables are measured at amortized cost with interest accrued based on the contract rate. The Group classified loan receivables as long-term or short-term investments according to their contractual maturity or expected holding time. The Group evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the life of loans. A valuation allowance will be established for the loans unable to collect. No valuation allowance has been recorded in 2013, 2014 or 2015 based on the result of the assessment. Accounts receivable, net of allowance Trade receivables mainly consist of franchise fee receivables, amounts due from corporate customers, travel agents, hotel guests and credit card receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific customers. Inventories mainly consist of small appliances, bedding and daily consumables. Small appliances and bedding for new hotels opened are stated at cost, less accumulated amortization, and are amortized over their estimated useful lives, generally one year, from the time they are put into use. Daily consumables and beddings replacement are expensed when used. Property and equipment, net are stated at cost less accumulated depreciation and amortization. The renovations, betterments and interest cost incurred during construction are capitalized. Depreciation and amortization of property and equipment is provided using the straight line method over their expected useful lives. Leasehold improvements Buildings 40 Furniture, fixtures and equipment 3 5 Motor vehicles 5 Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive income as the difference between the net sales proceeds and the carrying amount of the underlying asset. Intangible assets consist primarily of brand name, non-compete agreements, franchise agreements and favorable leases acquired in business combinations and purchased software. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets, including brand name, non-compete agreements, franchise agreements and favorable lease agreements acquired from business combination are recognized and measured at fair value upon acquisition. Non-compete agreements, franchise agreements and favorable lease agreements are amortized over the expected useful life, remaining franchise contract terms and remaining operating lease terms. Unfavorable lease agreements from business combination transactions are recognized as other long-term liabilities and are amortized over the remaining operating lease terms. Purchased software is stated at cost less accumulated amortization. Brand name is considered to have an indefinite life. The Group evaluates the brand name each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group measures the impairment by comparing the fair value of brand name with its carrying amount. If the carrying amount of brand name exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. The Group measured the fair value of the brand name under the relief-from-royalty method. Management performs its annual brand name impairment test on November 30. The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. The Group performed a recoverability test of its long-lived assets associated with certain hotels due to the continued underperformance relative to the projected operating results, of which the carrying amount of the property and equipment exceed the future undiscounted net cash flows, and recognized an impairment loss of RMB 7,965 27,203 93,163 Fair value of the property and equipment was determined by the Group based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected hotels' revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets less liabilities acquired. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group completes a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized in general and administrative expenses The Group recognized goodwill impairment of nil, RMB 188 2,445 The Group invites its customers to participate in a customer loyalty program. The membership has an unlimited life. Members enjoy favorable treatment such as more convenient check-out procedures and late check-out, discounts on room rates and accumulate membership points for their paid stays, which can be redeemed for gifts or offset the room charges within two years after the points are earned. The estimated incremental costs to provide room night awards and other gifts are accrued and recorded as accruals for customer loyalty program as members accumulate points and are recognized as cost and expense in the accompanying consolidated statements of comprehensive income. As members redeem awards or their entitlements expire, the provision is reduced correspondingly. As of December 31, 2014 and 2015, the accruals for estimated liabilities under the customer loyalty program amounted to 71,475 113,749 Deferred revenue generally consists of non-refundable advances received from customers for rental of rooms, cash received for membership fees and initial franchise fees received prior to the Group fulfilling its commitments to the franchisees. Revenue from leased hotels is derived from hotel operations, mainly including the rental of rooms, food and beverage sales and souvenir sales. Revenue is recognized when rooms are occupied and food and beverages and souvenirs are sold. Revenues from manachised and franchised hotels are derived from franchise agreements where the franchisees are primarily required to pay (i) an initial one-time franchise fee, and (ii) continuing franchise fees, which mainly consist of (a) on-going management and service fees mainly based on a certain percentage of the room revenues of the franchised hotels, and (b) system maintenance, support fees and central reservation system usage fees. The one-time franchise fee is recognized when the manachised and franchised hotel opens for business, the fee becomes non-refundable, and the Group has fulfilled all its commitments and obligations, including the assistance to the franchisees in property design, leasehold improvement construction project management, systems installation and personnel recruiting and training. The ongoing management and service fees are recognized when the underlying service revenue is recognized by the franchisees’ operations. The system maintenance, support fee and central reservation system usage fee is recognized over the period when services are provided. In addition, the Group accounts for hotel manager fees related to the manachised hotels under the franchise program as revenues. Pursuant to the franchise agreements, the Group charges the franchisees fixed hotel manager fees to cover the manachised hotel managers’ payroll, social welfare benefits and certain other out-of-pocket expenses that the Group incurs on behalf of the manachised hotels. The hotel manager fee is recognized as revenue monthly. During the years ended December 31, 2013, 2014 and 2015, the hotel manager fees that were recognized as revenue were RMB 116,885 166,572 261,743 Membership fees from the Group’s customer loyalty program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be two to five years which reflects the expected membership retention. Revenues recognized from the customer loyalty program were RMB 74,715 107,737 130,644 The Group is subject to business tax, education surtax and urban maintenance and construction tax, on the services provided in the PRC. Such taxes are primarily levied based on revenue at applicable rates and are recorded as a reduction of revenues. On 24 March 2016, the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) jointly published Caishui [2016] No. 36 (Circular 36), which provides the detailed implementation guidance on the further rollout of the Value-Added Tax (VAT) reform to sectors such as construction, real estate, financial services and lifestyle services. Circular 36 takes effect from 1 May 2016. Lifestyle services have a broad coverage to include a variety of services which are to meet the daily needs of the residents, and accommodation and associated services are included in such category with the applicable tax rate of 6%. As such, starting from May 2016, the accommodation services of the Group are subject to 6 Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income as incurred, and amounted to RMB 43,807 79,806 47,971 Government grants represent cash received by the Group in the PRC from local governments as incentives for investing in certain local districts, and are typically granted based on the amount of investments the Group made as well as income generated by the Group in such districts. Such subsidies allow the Group full discretion to utilize the funds and are used by the Group for general corporate purposes. The local governments have final discretion as to whether the Group has met all criteria to be entitled to the subsidies. Normally, the Group does not receive written confirmation from local governments indicating the approval of the cash subsidy before cash is received, and therefore cash subsidies are recognized when received and when all the conditions for their receipts have been satisfied. Government grants recognized 17,016 19,657 28,188 A lease of which substantially all the benefits and risks incidental to ownership remain with the lessor is classified as an operating lease. All leases of the Group are currently classified as operating leases. When a lease contains rent holidays or requires fixed escalations of the minimum lease payments, the Group records the total rental expense on a straight-line basis over the initial lease term and the difference between the straight-line rental expense and cash payment under the lease is recorded as deferred rent. As of December 31, 2014 and 2015, deferred rent of RMB 21,701 37,224 830,414 945,192 Interest cost incurred on funds used to construct leasehold improvements during the active construction period is capitalized. The interest capitalized is determined by applying the borrowing interest rate to the average amount of accumulated capital expenditures for the assets under construction during the period. The interest expense incurred for the years ended December 31, 2013, 2014 and 2015 were RMB 1,084 14,733 5,383 271 13,200 1,529 Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. Net operating losses are carried forward and credited by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of the Group, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company is the United States dollar (“US dollar”). Monetary assets and liabilities denominated in currencies other than the US dollar are translated into US dollar at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the US dollar during the year are converted into the US dollar at the applicable rates of exchange prevailing on the day transactions occurred. Transaction gains and losses are recognized in the statements of comprehensive income. Assets and liabilities are translated into RMB at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss in the consolidated statements of comprehensive income. The financial records of the Group’s subsidiaries are maintained in local currencies, which are the functional currencies. Comprehensive income includes all changes in equity except for those resulting from investments by owners and distributions to owners and is comprised of net income, foreign-currency translation adjustments and unrealized securities holding gains (losses). Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term and long-term investments and accounts receivable. All of the Group’s cash and cash equivalents and restricted cash are held with financial institutions that Group management believes to be high credit quality. In addition, the Group’s investment policy limits its exposure to concentrations of credit risk and the Group's short-term and long-term investments consist of loan receivables and equity investments in listing and private companies. The Group conducts credit evaluations on its group and agency customers and generally does not require collateral or other security from such customers. The Group periodically evaluates the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. The Group defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The estimated fair value of the Group's financial instruments that are not reported at fair value, including cash, restricted cash, loans to franchisees and cost method equity investment, receivables, payables and accruals, approximates their carrying value due to their short-term nature. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group measures fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates. Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) Short-term available-for-sale securities 506,407 506,407 Long-term available-for-sale securities 166,546 166,546 Total 672,953 672,953 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Fair Value for Identical Observable Unobservable Total Loss Year Ended Year ended Assets Inputs Inputs for the December 31, Description December 31 (Level 1) (Level 2) (Level 3) Year 2013 Property and equipment 5,382 5,382 7,965 2014 Property and equipment 13,561 13,561 27,203 2014 Goodwill 188 2015 Property and equipment 21,879 21,879 93,163 2015 Goodwill 2,445 As a result of reduced expectations of future cash flows from certain leased hotels, the Group determined that the hotels property and equipment with a carrying amount of RMB 13,347 40,764 115,042 7,965 27,203 93,163 188 2,445 Fair value of the property and equipment as well as the reporting units was determined by the Group based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected hotels' revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. As a result, the Group has determined that the majority of the inputs used to value its long-lived assets held and used and its reporting units are unobservable inputs that fall within Level 3 of the fair value hierarchy. The revenue growth rate and the discount rate were the significant unobservable input used in the fair value measurement, which are 4 20 The Group recognizes share-based compensation in the consolidated statements of comprehensive income based on the fair value of equity awards on the date of the grant, with compensation expenses recognized over the period in which the grantee is required to provide service to the Group in exchange for the equity award. Vesting of certain equity awards are based on the performance conditions for a period of time following the grant date. Share-based compensation expense is recognized according to the Group's judgement of likely future performance and will be adjusted in future periods based on the actual performance. Compensation expenses for the awards with market conditions are recognized during the requisite service period, even if the market condition is never satisfied. 30,468 31,937 52,535 Year Ended December 31, 2013 2014 2015 Hotel operating costs 4,948 6,830 8,835 Selling and marketing expenses 973 939 907 General and administrative expenses 24,547 24,168 42,793 Total 30,468 31,937 52,535 Basic earnings per share is computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares and is calculated using the treasury stock method for stock options and nonvested restricted stocks. The Group operates and manages its business as a single segment. The Group primarily generates its revenues from customers in the PRC. Substantially all of the Group’s long-lived assets are located in the PRC. Treasury shares represent shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury shares are accounted for under the cost method. As of December 31, 2015, under the repurchase plan, the Company had repurchased an aggregate of 3,096,764 107,331 In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) Revenue from Contracts with Customers (Topic 606) Revenue RecognitionConstruction-Type and Production-Type Contracts, Other Assets and Deferred CostsContracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective In August 2014, the FASB issued ASU No. 2014-15, Presentation of financial statementsgoing concern (Subtopic 205-40), which provided guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures so as to reduce the diversity in the timing and content of footnote disclosures. ASU 2014-15 will be effective for annual periods ending after December 15, 2016. The Group does not expect the adoption will have a material impact on the Group’s consolidated financial statements. In September, 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, In November, 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In January, 2016, the FASB issued ASU No. 2016-01, to improve the recognition and measurement of financial instruments. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-07, which eliminates the requirement to retroactively adopt the equity method of accounting. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Group is in the process of evaluating the impact of this ASU on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, which amends the principal-versus-agent implementation guidance and illustrations in the Board's new revenue standard (ASC 606). The amendments in this update clarify the implementation guidance on principal versus agent considerations. When another party, along with the reporting entity, is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (as a principal) or to arrange for the good or service to be provided to the customer by the other party (as an agent). The guidance is effective for interim and annual periods beginning after December 15, 2017. The Group is in the process of evaluating the impact of this ASU on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. For public entities, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Early adoption will be permitted in any interim or annual period for which financial statements have not yet been issued or have not been made available for issuance. The Group is in the process of evaluating the impact of this ASU |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
ACQUISITIONS | 3. ACQUISITIONS (i) During the years ended December 31, 2013, 2014 and 2015, the Group acquired nine individual hotels, one individual hotel, and one hotel chain and two individual hotels for total cash consideration of RMB 33,423 12,975 127,226 2013 2014 2015 Amortization Period Current assets 5,552 25 3,382 Property and equipment 29,805 10,477 74,222 5-10 years Favorable leases 6,422 3,330 41,283 remaining lease terms Deferred tax assets 6,628 515 Franchise agreements 3,300 remaining contracts terms Goodwill 662 46,135 Other noncurrent assets 663 Current liabilities (2,501) (22,864) Deferred tax liabilities (13,145) (832) (11,146) Noncontrolling interest (25) (8,264) Total 33,423 12,975 127,226 (ii) After the Group’s acquisition of 51 49 16,460 4,210 4,083 4,083 4,084 49 2,514 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Investments [Abstract] | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS As of December 31, 2014 2015 Loan receivables from franchisees 6,904 16,955 Loan receivables from other entities 19,711 9,853 HMIN 506,407 Total 26,615 533,215 Since April 2014, the Group entered into entrusted loan agreements with certain franchisees with the typical terms to be two to three years and annual interest rates ranging from 8.0 8.5 184 1,124 Loan receivables from other entities represents the loans the Company lent to other unrelated private entities with the annual interest rates ranging from 0 12 91 2,273 In 2015, the Group purchased 2,282,951 434,811 4.7 506,407 46,617 . |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 5. PROPERTY AND EQUIPMENT, NET As of December 31, 2014 2015 Cost: Buildings 12,115 12,115 Leasehold improvements 4,916,270 5,354,550 Furniture, fixtures and equipment 742,682 838,380 Motor vehicles 820 820 5,671,887 6,205,865 Less: Accumulated depreciation (2,008,882) (2,582,184) 3,663,005 3,623,681 Construction in progress 244,338 182,205 Property and equipment, net 3,907,343 3,805,886 Depreciation expense was RMB 453,637 559,918 648,277 The Group occasionally demolishes certain leased hotels due to local government zoning requirements, which typically results in receiving compensation from the government. In 2013, the Group demolished three leased hotels due to local government zoning requirements. As a result, the Group wrote off property and equipment of RMB 7,296 10,734 15,030 3,000 2,000 1,000 In 2014, the Group demolished one leased hotel due to local government zoning requirements. As a result, the Group wrote off property and equipment of RMB 3,971 33 4,004 In 2015, the Group demolished one leased hotel due to local government zoning requirements. As a result, the Group wrote off property and equipment of RMB 2,301 5,519 5,721 2,099 As of December 31, 2015, the Group has been formally notified by local government authorities that two additional leased hotels of the Group will likely be demolished due to local government zoning requirements. The aggregate carrying amount of property and equipment at the associated hotels was RMB 12,987 |
INTANGIBLE ASSETS, NET AND UNFA
INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets And Below Market Lease Excluding Goodwill [Abstract] | |
INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE | INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE As of December 31, 2014 2015 Brand name 28,600 28,600 Franchise agreements 7,700 11,000 Non-compete agreement 400 400 Favorable lease agreements 79,378 120,661 Purchased software 35,298 44,405 Total 151,376 205,066 Less: Accumulated amortization (46,839) (60,254) Total 104,537 144,812 As of December 31, 2014 2015 Unfavorable lease agreements 3,924 3,924 Less: Accumulated amortization (2,604) (2,893) Unfavorable lease agreements, net 1,320 1,031 The values of favorable lease agreements were determined based on the estimated present value of the amount the Group has avoided paying as a result of entering into the lease agreements. Unfavorable lease agreements were determined based on the estimated present value of the acquired lease that exceeded market prices and are recognized as other long-term liabilities. The value of favorable and unfavorable lease agreements is amortized using the straight-line method over the remaining lease term. Amortization expense of intangible assets for the years ended December 31, 2013, 2014 and 2015 amounted to RMB 9,846 11,101 13,415 Amortization for Amortization for Intangible Assets Unfavorable Lease Net Amortization 2016 14,683 (209) 14,474 2017 14,326 (130) 14,196 2018 13,222 (130) 13,092 2019 12,702 (130) 12,572 2020 12,322 (130) 12,192 Thereafter 48,957 (302) 48,655 116,212 (1,031) 115,181 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Long Term Investment Disclosure [Abstract] | |
LONG-TERM INVESTMENTS | 7. LONG-TERM INVESTMENTS As of December 31, 2014 2015 Available-for-sale securities: Quanjude 137,943 166,546 Cost-method investments: UBOX/BJ UBOX 40,517 48,220 BJ GOOAGOO/GOOAGOO 10,289 59,939 Founder Service 20,000 Qingpu 17,143 Equity-method investments: Sheen Star 20,990 20,862 Yibang 2,482 770 Campsort 11,644 Other investments 10,762 Loan receivables from franchisees 5,140 12,336 Total 229,005 356,578 Available-for-sale securities: In June 2014, the Group purchased 7,241,131 13.81 100 2.35 137,943 166,546 28,458 21,451 Cost-method investments: From 2012 to 2013, the Company invested in preferred shares and convertible promissory notes of UBOX International Holdings Co., Limited (“UBOX”), a privately-held company, with the total consideration of RMB 40,517 7,703 3.6 In November 2014, the Group purchased 8 10,289 45,000,000 45,000 4,650 12.5 In September 2015, the Group purchased 10 20,000 In December 2015, the Group purchased 10 17,143 Equity-method investments: In April 2014, the Group set up Sheen Star together with Mr. Qi Ji, the founder, executive chairman of the Group and a third party. Sheen Star is a real estate investment company which the Group contributed RMB 20,990 19.99 50.01 Sheen Star In May 2013, the Group acquired 30 430 20 285 2,197 In July 2014, the Group acquired 30 15,000 6 3,000 24 24 14,410 2,766 Other investments included several insignificant equity investments in certain privately-held companies. Loan receivables from franchisees: Since April 2014, the Group entered into entrusted loan agreements with certain franchisees with the typical terms of two three 8 8.5 266 986 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | 8. GOODWILL Gross Accumulated Net Amount Impairment Loss Amount Balance at January 1, 2013 65,988 (1,808) 64,180 Increase in goodwill related to acquisitions 662 662 Balance at December 31, 2013 66,650 (1,808) 64,842 Impairment losses recognized (188) (188) Balance at December 31, 2014 66,650 (1,996) 64,654 Increase in goodwill related to acquisitions 46,135 46,135 Impairment losses recognized (2,445) (2,445) Balance at December 31, 2015 112,785 (4,441) 108,344 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | 9. DEBT In March 2012, the Group entered into a five 500,000 100,000 In September 2012, the Group entered into a three 300,000 In December 2013, the Group renewed the bank credit facility under which the Group can borrow up to RMB 500,000 104,540 100,000 104,540 100,000 6.0 5.61 700 499,300 In December 2012, the Group entered into a thirty twelve-month London Interbank Offered Rate 2.7 200 200 3.54 In December 2013, the Group signed a one 300,000 5.4 300,000 In July 2015, the Group entered into a one 220,000 three-month London Interbank Offered Rate 1.2 1.49 In July 2015, the Group entered into a one 360,000 three-month London Interbank Offered Rate 1.2 1.50 The Company was in compliance with the covenants as of December 31, 2015 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2014 2015 Payable for business acquisitions 5,745 111,696 Business taxes and other surcharge payables 58,887 69,158 Accrual for customer loyalty program 71,475 113,749 Payable to noncontrolling interest holders 5,552 23,938 Other payables 41,864 102,069 Accrued rental 44,125 48,623 Accrued utilities 37,320 43,690 Other accrued expenses 48,049 63,237 Total 313,017 576,160 From time to time, the Group receives cash advances from noncontrolling interest holders of hotels that are not wholly owned by the Group. Such advances are non-interest bearing and are payable within one year. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LONG-TERM LIABILITIES | 11. OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of the following: As of December 31, 2014 2015 Deposits from franchisees 167,332 215,424 Others 48,430 60,530 Total 215,762 275,954 |
HOTEL OPERATING COSTS
HOTEL OPERATING COSTS | 12 Months Ended |
Dec. 31, 2015 | |
Hotel Operating Cost Disclosure [Abstract] | |
HOTEL OPERATING COSTS | 12 . HOTEL OPERATING COSTS Year Ended December 31, 2013 2014 2015 Rents 1,255,663 1,543,651 1,804,532 Utilities 273,314 323,837 341,620 Personnel costs 638,511 788,973 919,555 Depreciation and amortization 453,062 558,833 645,058 Consumable, food and beverage 391,715 454,795 485,099 Others 169,401 207,938 316,283 Total 3,181,666 3,878,027 4,512,147 |
PRE-OPENING EXPENSES
PRE-OPENING EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Preopening Expenses Disclosure [Abstract] | |
PRE-OPENING EXPENSES | 13. PRE-OPENING EXPENSES The Group expenses all costs incurred in connection with start-up activities, including pre-operating costs associated with new hotel facilities and costs incurred with the formation of the subsidiaries, such as organization costs. Year Ended December 31, 2013 2014 2015 Rents 186,656 163,155 95,977 Personnel costs 8,700 7,217 5,903 Others 15,928 15,953 8,131 Total 211,284 186,325 110,011 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION In February 2007, the Group adopted the 2007 Global Share Plan which allows the Group to offer incentive awards to employees, officers, directors and consultants or advisors (the “Participants”). Under the 2007 Global Share Plan, the Group may issue incentive awards to the Participants to purchase not more than 10,000,000 3,000,000 7,000,000 3,000,000 15,000,000 In March 2015, the Group increased the maximum number of incentive awards available under the 2009 Share Incentive Plan to 43,000,000 a.) Vest 50 50 b.) Vest over a period of ten years in equal yearly installments As of December 31, 2015, the Group had granted 24,574,737 19,545,699 Share options In July 2012, the Group granted 1,475,366 50 50 , such as number of hotel rooms added, revenue, profit etc., 869,232 In 2015, the Group granted 85,292 including various annual performance target, i.e. number of hotel rooms added, revenue etc., The weighted-average grant date fair value for options granted during the years ended December 31, 2014 and 2015 was RMB 15.79 2.57 11.73 1.88 2014 2015 Suboptimal exercise factor 4.40 4.16 Risk-free interest rate 1.89 to 1.99% 1.49 to 1.74% Volatility 47.22 to 47.75% 38.88 to 39.25% Dividend yield Life of option 6 years 6 years Weighted Average Number of Weighted Average Remaining Aggregate Intrinsic Options Exercise Price Contractual Life Value US$ Years US$'000 Share options outstanding at January 1, 2015 4,921,998 2.23 Granted 118,348 4.76 Forfeited (48,704) 5.09 Exercised (1,528,104) 2.40 Share options outstanding at December 31, 2015 3,463,538 2.21 3.11 19,430 Share options vested or expected to vest at December 31, 2015 3,413,317 2.16 3.09 19,308 Share options exercisable at December 31, 2015 702,848 3.22 2.88 3,229 As of December 31, 2015, there was RMB 5,772 1.84 During the years ended December 31, 2013, 2014 and 2015, 2,802,488 1,591,004 1,528,104 74,321 42,740 46,433 Nonvested restricted stocks The fair value of nonvested restricted stock with service conditions or performance conditions is based on the fair market value of the underlying ordinary shares on the date of grant. In July 2012, the Group granted 1,059,977 , such as number of hotel rooms added, profit etc., 213,209 50 50 . As of December 31, 2014, the Group adjusted the number of nonvested restricted stocks granted to executive officers in 2012 to 1,557,408 In 2015, the Group granted 6,599,106 , such as number of hotel rooms added, revenue, profit, earnings per share etc. 50 50 The Group estimated the grant date fair value of the awards with market conditions using a Monte Carlo simulation. Compensation expenses for the awards with market conditions are recognized during the requisite service period, even if the market condition is never satisfied. Weighted Average Grant Date Number of Restricted Stocks Fair Value US$ Nonvested restricted stocks outstanding at January 1, 2015 3,237,240 4.25 Granted 13,931,961 4.77 Forfeited (807,413) 4.85 Vested (1,702,964) 3.77 Nonvested restricted stocks outstanding at December 31, 2015 14,658,824 4.77 As of December 31, 2015, there was RMB 391,421 5.44 The total fair value of nonvested restricted stocks vested in 2013, 2014 and 2015 was RMB 7,089 59,475 69,130 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 15. EARNINGS PER SHARE Year Ended December 31, 2013 2014 2015 Net income attributable to ordinary shareholders basic 279,858 307,348 436,600 Net income attributable to ordinary shareholders diluted 279,858 307,348 436,600 Weighted average ordinary shares outstanding basic 245,187,348 248,957,645 250,533,204 Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method 4,298,936 4,046,559 5,570,963 Weighted average ordinary shares outstanding diluted 249,486,284 253,004,204 256,104,167 Basic earnings per share 1.14 1.23 1.74 Diluted earnings per share 1.12 1.21 1.70 Year Ended December 31, 2013 2014 2015 Outstanding employee options and nonvested restricted stocks 293,512 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 16. INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Hong Kong China Lodging Holdings (HK) Limited and Starway Hotels (HongKong) Limited are subject to Hong Kong profit tax at a rate of 16.5 Singapore China Lodging Holdings Singapore Pte. Ltd. is subject to Singapore corporate income tax at a rate of 17 PRC Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25 Hanting Technology (Suzhou) Co., Ltd, as a recognized software development entity located at Suzhou Industrial Park in Suzhou of PRC, is entitled to a two-year exemption and three-year 50 Mengguang Information and Technology (Shanghai) Co., Ltd, as a recognized software development entity located in Shanghai of PRC, is entitled to a two-year exemption and three-year 50 As of December 31, 2013 2014 2015 Current Tax 127,439 155,496 246,678 Deferred Tax (22,619) (42,391) (50,149) Total 104,820 113,105 196,529 Year Ended December 31, 2013 2014 2015 PRC statutory tax rate 25 % 25 % 25 % Tax effect of other expenses that are not deductible in determining taxable profit 3 % 2 % 3 % Effect of different tax rate of group entities operating in other jurisdictions (1 %) Effect of change in valuation allowance 3 % 3 % 5 % Effect of tax holiday (3 %) (3 %) (7 %) Effect of cash dividends 5 % Effective tax rate 27 % 27 % 31 % Year Ended December 31, 2013 2014 2015 Aggregate amount 12,721 9,131 41,288 Per share effectbasic 0.05 0.04 0.16 Per share effectdiluted 0.05 0.04 0.16 As of December 31, 2014 2015 Deferred tax assets: Net loss carryforward 113,333 158,910 Pre-opening expenses 306 785 Deferred revenue 62,977 72,914 Deferred rent 4,684 5,316 Long-term assets 8,460 27,341 Bad debt provision 1,494 1,390 Accrual for customer loyalty program 17,869 28,437 Accrued payroll 2,462 2,791 Other accrued expenses 4,457 850 Share-based compensation 9,745 10,857 Others 577 1,613 Valuation allowance (62,868) (92,527) Total deferred tax assets 163,496 218,677 Deferred tax liabilities: Favorable lease 23,545 30,641 Capitalized interest 4,410 4,163 Unrealized gain for investment 9,485 16,636 Others 1,039 9,853 Total deferred tax liabilities 38,479 61,293 Deferred tax assets are analyzed as: Current 80,026 98,200 Non-Current 83,470 120,477 163,496 218,677 Deferred tax liabilities are analyzed as: Current 701 1,465 Non-current 37,778 59,828 38,479 61,293 For the years ended December 31, 2014 and 2015, valuation allowance of RMB 29,693 47,122 18,421 15,508 1,955 As of December 31, 2015, the Group had tax loss carryforwards of RMB 635,640 The Group determines whether or not a tax position is "more-likely-than-not" of being sustained upon audit based solely on the technical merits of the position. At December 31, 2014 and 2015, the Group had recorded uncertain tax benefits of approximately RMB 8,345 14,755 As of December 31, 2013 2014 2015 Balance at January 1 4,148 7,122 8,345 Addition for tax positions 2,974 1,223 6,410 Balance at December 31 7,122 8,345 14,755 In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10 5 1,223,689 30,696 According to the PRC Tax Administration and Collection Law, the statute of limitations is three five 100 ten |
MAINLAND CHINA CONTRIBUTION PLA
MAINLAND CHINA CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
MAINLAND CHINA CONTRIBUTION PLAN | 17. MAINLAND CHINA CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on a certain percentage of the employees’ salaries. The total contribution for such employee benefits were RMB 119,015 143,419 182,321 |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
RESTRICTED NET ASSETS | 18. RESTRICTED NET ASSETS Pursuant to laws applicable to entities incorporated in the PRC, the subsidiaries of the Group in the PRC must make appropriations from after-tax profit to non-distributable reserve funds. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires annual appropriation of 10 50 64,957 105,604 209,782 2,075,975 2,285,757 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | 19. RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. The following entities are considered to be related parties to the Group. The related parties only act as service providers, service recipients and lessors to the Group and there is no other relationship wherein the Group has the ability to exercise significant influence over the operating and financial policies of these parties. Nature of the Party Relationship with the Group Ctrip.com International, Ltd. (“Ctrip”) Online travel services provider Mr. Qi Ji is a director Lijiang Yibang Changchunteng Hotel Co Limited (“Yibang”) Hotel Joint venture of the Group Sheen Star Group Limited (“Sheen Star”) Investment holding company Equity method investee of the Group, controlled by Mr. Qi Ji Shanghai Qianya Hotel Management Co., Ltd (“Qianya”) Hotels management Investee of the Group (a) Related party balances As of December 31, 2014 2015 Yibang 16,293 16,157 Amounts due to related parties were comprised of commissions payable for reservation services and Starway acquisition payable to Ctrip, and service fee payable to Qianya. As of December 31, 2014 2015 Ctrip -Payables for hotel reservation services 2,319 3,332 -Payables for Starway acquisition 8,167 4,084 Qianya -Payables for hotel management services 237 10,486 7,653 (b) Related party transactions Year Ended December 31, 2013 2014 2015 Commission expenses Ctrip 17,128 19,235 17,740 Service fee Yibang 199 527 593 Service fee Qianya 417 In May 2012, the Group acquired a 51 17,292 49 16,460 The Group transferred its investment in Kangdu to Sheen Star for consideration of RMB 82,785 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES (a) Operating lease commitments The Group has entered into lease agreements for certain hotels which it operates. Such leases are classified as operating leases. Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2015 were as follows: Year Ending December 31, 2016 1,872,773 2017 1,881,995 2018 1,861,825 2019 1,826,236 2020 1,756,499 Thereafter 10,585,970 Total 19,785,298 (b) Purchase Commitments As of December 31, 2015, the Group’s commitments related to leasehold improvements and installation of equipment for hotel operations was RMB 12,062 (c) Contingencies The Group is subject to periodic legal or administrative proceedings in the ordinary course of our business. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material adverse effect on the financial statements. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 21. SUBSEQUENT EVENT In January 2016, the Group completed the transaction of strategic alliance with AccorHotels ("Accor"). Pursuant to the master purchase agreement, the Group acquired 100 29.3 24,895,543 9.0 granted to Accor a right to nominate a member of the Group's Board of |
SCHEDULE I FINANCIAL INFORMATIO
SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY | ADDITIONAL FINANCIAL INFORMATION FINANCIAL STATEMENTS SCHEDULE I CHINA LODGING GROUP, LIMITED FINANCIAL INFORMATION FOR PARENT COMPANY BALANCE SHEETS (Renminbi in thousands, except share data and per share data, unless otherwise stated) As of December 31, 2014 2015 2015 US$’000 Assets Current assets: Cash and cash equivalents 94,749 121,025 18,683 Short-term investments 324,780 50,137 Other current assets 4,185 2,573 397 Total current assets 98,934 448,378 69,217 Other assets 157 Investment in subsidiaries 3,131,189 3,833,404 591,776 Total assets 3,230,280 4,281,782 660,993 Liabilities and equity Current liabilities: Short-term bank borrowing 324,680 50,122 Salary and welfare payable 111 25 4 Deferred revenue 364 Dividends payable 276,261 42,647 Amount due to related parties 222,402 34,333 Accrued expenses and other current liabilities 12,841 28,305 4,369 Total current liabilities 13,316 851,673 131,475 Total liabilities 13,316 851,673 131,475 Equity: Ordinary shares (US$0.0001 par value per share; 8,000,000,000 shares authorized; 250,747,255 and 253,978,323 shares issued as of December 31, 2014 and 2015, and 250,747,255 and 250,881,559 shares outstanding as of December 31, 2014 and 2015, respectively) 184 186 29 Treasury shares (nil and 3,096,764 shares as of December 31 2014 and 2015, respectively) (107,331) (16,569) Additional paid-in capital 2,381,568 2,470,099 381,318 Retained earnings 847,220 1,007,559 155,540 Accumulated other comprehensive loss (12,008) 59,596 9,200 Total equity 3,216,964 3,430,109 529,518 Total liabilities and equity 3,230,280 4,281,782 660,993 ADDITIONAL FINANCIAL INFORMATION FINANCIAL STATEMENTS SCHEDULE I CHINA LODGING GROUP, LIMITED FINANCIAL INFORMATION FOR PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (Renminbi in thousands, unless otherwise stated) Year Ended December 31, 2013 2014 2015 2015 US$’000 Operating costs and expenses: Selling and marketing expenses 157 157 157 24 General and administrative expenses 33,308 35,434 59,236 9,145 Total operating costs and expenses 33,465 35,591 59,393 9,169 Loss from operations (33,465) (35,591) (59,393) (9,169) Interest income 6 75 30 5 Interest expense 3,198 494 Foreign exchange gain 7,477 1,154 Other income, net 2,438 2,419 2,488 384 Income in investment in subsidiaries 310,879 340,445 489,196 75,519 Net income attributable to China Lodging Group, Limited 279,858 307,348 436,600 67,399 Other comprehensive income Unrealized securities holding gains, net of tax of nil, 9,485 and 7,151 for 2013, 2014 and 2015 28,458 68,069 10,508 Foreign currency translation adjustments, net of tax of nil for 2013, 2014 and 2015 (976) (1,082) 3,535 546 Comprehensive income 278,882 334,724 508,204 78,453 ADDITIONAL FINANCIAL INFORMATION FINANCIAL STATEMENTS SCHEDULE I CHINA LODGING GROUP, LIMITED FINANCIAL INFORMATION FOR PARENT COMPANY STATEMENTS OF CASH FLOWS (Renminbi in thousands, unless otherwise stated) Year Ended December 31, 2013 2014 2015 2015 US$’000 Operating activities: Net income 279,858 307,348 436,600 67,399 Adjustments to reconcile net income to net cash used in operating activities: Share-based compensation 30,468 31,937 52,535 8,110 Income in investment in subsidiaries (310,879) (340,445) (489,196) (75,519) Changes in operating assets and liabilities: Deferred revenue (1,552) (1,450) (364) (56) Other current assets 915 1,477 2,312 357 Salary and welfare payable 111 (86) (13) Accrued expenses and other current liabilities 7,058 4,943 15,463 2,387 Net cash provided by operating activities 5,868 3,921 17,264 2,665 Investing activities: Investment in subsidiaries (168,709) (26,044) Receipt of investment in subsidiaries 12,320 8,876 Purchase of short-term investments (271,630) (41,932) Net cash provided by (used in) investing activities 12,320 8,876 (440,339) (67,976) Financing activities: Net proceeds from issuance of ordinary shares upon exercise of option 28,122 20,985 22,619 3,492 Payment of share repurchase (107,331) (16,569) Proceeds of advances from subsidiaries 222,403 34,333 Proceeds from short-term debt 489,376 75,547 Repayment of short-term debt (183,516) (28,330) Net cash provided by financing activities 28,122 20,985 443,551 68,473 Effect of exchange rate changes on cash and cash equivalents (8,081) (215) 5,800 894 Net increase(decrease) in cash and cash equivalents 38,229 33,567 26,276 4,056 Cash and cash equivalents at the beginning of the year 22,953 61,182 94,749 14,627 Cash and cash equivalents at the end of the year 61,182 94,749 121,025 18,683 Supplemental schedule of non-cash investing and financing activities: Proceeds from issuance of ordinary shares upon exercise of option included in receivables 1,318 1,185 1,727 267 The accompanying notes are an integral part of these consolidated financial statements ADDITIONAL FINANCIAL INFORMATION FINANCIAL STATEMENTS SCHEDULE I CHINA LODGING GROUP, LIMITED FINANCIAL INFORMATION FOR PARENT COMPANY Note to Schedule I Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04-(c) of Regulation S-X, which require condensed financial information as to the financial position, change in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The condensed financial information has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. Such investments in subsidiaries are presented on the balance sheets as investment in subsidiaries and the profit of the subsidiaries is presented as income in investment in subsidiaries. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying consolidated financial statements. As of December 31, 2015, there are no material contingencies, mandatory dividend, significant provision of long-term obligation or guarantee of the Company, except for those which have separately disclosed in the consolidated financial statements. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | ADDITION INFORMATION FINANCIAL STATEMENTS SCHEDULE II CHINA LODGING GROUP, LIMITED This financial information has been prepared in conformity with accounting principles generally accepted in the United States. VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Charge to Costs and Addition Due to Charge Taken Balance at Year Expenses Acquisition Against Allowance Write off End of Year (Renminbi in thousands) Allowance for doubtful accounts of accounts receivables and other receivables: 2013 3,183 4,573 7,756 2014 7,756 4,770 (6,049) 6,477 2015 6,477 1,997 (2,415) 6,059 Valuation allowance for deferred tax assets 2013 36,283 22,158 3,139 (9,984) 51,596 2014 51,596 29,693 (18,421) 62,868 2015 62,868 47,122 (15,508) (1,955) 92,527 ****** |
SUMMARY OF PRINCIPAL ACCOUNTI31
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company and its majority-owned subsidiaries. All significant intercompany transactions and balances are eliminated on consolidation. The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The Group is deemed as the primary beneficiary of and consolidates variable interest entities when the Group has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities. The Group evaluates its business activities and arrangements with the entities that operate the manachised and franchised hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception, therefore consolidation is not appropriate under the variable interest entity consolidation guidance. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets, long lived assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include the useful lives and impairment of property and equipment and intangible assets, valuation allowance of deferred tax assets, impairment of goodwill, share-based compensation and costs related to its customer loyalty program. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. |
Restricted cash | Restricted cash Restricted cash mainly represents deposits used as security against borrowings. |
Investments | Investments Investments represent available-for-sale securities, cost-method investments, equity-method investments and loan receivables. Investments in equity securities that have readily determinable fair values are classified as available-for-sale securities and reported at fair value, with unrealized gains and losses recorded as a component of other comprehensive income or loss. Realized gains or losses are recognized in the consolidated statements of comprehensive income during the period in which the gains or losses are realized. If the Group determines that a decline in the fair value of the individual available-for-sale security is other-than-temporary, the cost basis of the security is written down to the fair value as a new cost basis and the amount of the write-down is accounted for as a realized loss. The new cost basis will not be changed for subsequent recoveries in fair value. The Group reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to: (1) the nature of the investment; (2) the cause and duration of the impairment; (3) the extent to which fair value is less than cost; (4) financial conditions and near term prospects of the issuers; and (5) the Group’s ability to hold the security for a period of time sufficient to allow for any anticipated recovery of its amortized cost or fair value. Available-for-sale securities not expected to be realized in cash or sold in the next normal operating cycle of the business are classified as long-term investments. The Group accounts for the investment in a private entity of which the Group owns less than 20 The Group accounts for the investment in entities with significant influence under equity-method accounting. Under this method, the Group’s pro rata share of income (loss) from investment is recognized in the consolidated statements of comprehensive income. Dividends received reduce the carrying amount of the investment. Equity-method investment is reviewed for impairment by assessing if the decline in market value of the investment below the carrying value is other-than-temporary. In making this determination, factors are evaluated in determining whether a loss in value should be recognized. These include consideration of the intent and ability of the Group to hold investment and the ability of the investee to sustain an earnings capacity, justifying the carrying amount of the investment. Impairment losses are recognized in other expense when a decline in value is deemed to be other-than-temporary. No event had occurred that indicated that an other-than-temporary impairment existed and therefore the Group did not record any impairment charges for these investments during 2013, 2014 or 2015. Loan receivables are measured at amortized cost with interest accrued based on the contract rate. The Group classified loan receivables as long-term or short-term investments according to their contractual maturity or expected holding time. The Group evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the life of loans. A valuation allowance will be established for the loans unable to collect. No valuation allowance has been recorded in 2013, 2014 or 2015 based on the result of the assessment. |
Accounts receivable, net of allowance | Accounts receivable, net of allowance Trade receivables mainly consist of franchise fee receivables, amounts due from corporate customers, travel agents, hotel guests and credit card receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific customers. |
Inventories | Inventories Inventories mainly consist of small appliances, bedding and daily consumables. Small appliances and bedding for new hotels opened are stated at cost, less accumulated amortization, and are amortized over their estimated useful lives, generally one year, from the time they are put into use. Daily consumables and beddings replacement are expensed when used. |
Property and equipment, net | Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and amortization. The renovations, betterments and interest cost incurred during construction are capitalized. Depreciation and amortization of property and equipment is provided using the straight line method over their expected useful lives. Leasehold improvements Buildings 40 Furniture, fixtures and equipment 3 5 Motor vehicles 5 Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive income as the difference between the net sales proceeds and the carrying amount of the underlying asset. |
Intangible assets, net and unfavorable lease | Intangible assets consist primarily of brand name, non-compete agreements, franchise agreements and favorable leases acquired in business combinations and purchased software. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets, including brand name, non-compete agreements, franchise agreements and favorable lease agreements acquired from business combination are recognized and measured at fair value upon acquisition. Non-compete agreements, franchise agreements and favorable lease agreements are amortized over the expected useful life, remaining franchise contract terms and remaining operating lease terms. Unfavorable lease agreements from business combination transactions are recognized as other long-term liabilities and are amortized over the remaining operating lease terms. Purchased software is stated at cost less accumulated amortization. Brand name is considered to have an indefinite life. The Group evaluates the brand name each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group measures the impairment by comparing the fair value of brand name with its carrying amount. If the carrying amount of brand name exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. The Group measured the fair value of the brand name under the relief-from-royalty method. Management performs its annual brand name impairment test on November 30. |
Impairment of long-lived assets | Impairment of long-lived assets The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. The Group performed a recoverability test of its long-lived assets associated with certain hotels due to the continued underperformance relative to the projected operating results, of which the carrying amount of the property and equipment exceed the future undiscounted net cash flows, and recognized an impairment loss of RMB 7,965 27,203 93,163 Fair value of the property and equipment was determined by the Group based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected hotels' revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets less liabilities acquired. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group completes a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized in general and administrative expenses The Group recognized goodwill impairment of nil, RMB 188 2,445 |
Accruals for customer loyalty program | Accruals for customer loyalty program The Group invites its customers to participate in a customer loyalty program. The membership has an unlimited life. Members enjoy favorable treatment such as more convenient check-out procedures and late check-out, discounts on room rates and accumulate membership points for their paid stays, which can be redeemed for gifts or offset the room charges within two years after the points are earned. The estimated incremental costs to provide room night awards and other gifts are accrued and recorded as accruals for customer loyalty program as members accumulate points and are recognized as cost and expense in the accompanying consolidated statements of comprehensive income. As members redeem awards or their entitlements expire, the provision is reduced correspondingly. As of December 31, 2014 and 2015, the accruals for estimated liabilities under the customer loyalty program amounted to 71,475 113,749 |
Deferred revenue | Deferred revenue Deferred revenue generally consists of non-refundable advances received from customers for rental of rooms, cash received for membership fees and initial franchise fees received prior to the Group fulfilling its commitments to the franchisees. |
Revenue recognition | Revenue recognition Revenue from leased hotels is derived from hotel operations, mainly including the rental of rooms, food and beverage sales and souvenir sales. Revenue is recognized when rooms are occupied and food and beverages and souvenirs are sold. Revenues from manachised and franchised hotels are derived from franchise agreements where the franchisees are primarily required to pay (i) an initial one-time franchise fee, and (ii) continuing franchise fees, which mainly consist of (a) on-going management and service fees mainly based on a certain percentage of the room revenues of the franchised hotels, and (b) system maintenance, support fees and central reservation system usage fees. The one-time franchise fee is recognized when the manachised and franchised hotel opens for business, the fee becomes non-refundable, and the Group has fulfilled all its commitments and obligations, including the assistance to the franchisees in property design, leasehold improvement construction project management, systems installation and personnel recruiting and training. The ongoing management and service fees are recognized when the underlying service revenue is recognized by the franchisees’ operations. The system maintenance, support fee and central reservation system usage fee is recognized over the period when services are provided. In addition, the Group accounts for hotel manager fees related to the manachised hotels under the franchise program as revenues. Pursuant to the franchise agreements, the Group charges the franchisees fixed hotel manager fees to cover the manachised hotel managers’ payroll, social welfare benefits and certain other out-of-pocket expenses that the Group incurs on behalf of the manachised hotels. The hotel manager fee is recognized as revenue monthly. During the years ended December 31, 2013, 2014 and 2015, the hotel manager fees that were recognized as revenue were RMB 116,885 166,572 261,743 Membership fees from the Group’s customer loyalty program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be two to five years which reflects the expected membership retention. Revenues recognized from the customer loyalty program were RMB 74,715 107,737 130,644 |
Business tax and related taxes | The Group is subject to business tax, education surtax and urban maintenance and construction tax, on the services provided in the PRC. Such taxes are primarily levied based on revenue at applicable rates and are recorded as a reduction of revenues. On 24 March 2016, the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) jointly published Caishui [2016] No. 36 (Circular 36), which provides the detailed implementation guidance on the further rollout of the Value-Added Tax (VAT) reform to sectors such as construction, real estate, financial services and lifestyle services. Circular 36 takes effect from 1 May 2016. Lifestyle services have a broad coverage to include a variety of services which are to meet the daily needs of the residents, and accommodation and associated services are included in such category with the applicable tax rate of 6%. As such, starting from May 2016, the accommodation services of the Group are subject to 6 |
Advertising and promotional expenses | Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income as incurred, and amounted to RMB 43,807 79,806 47,971 |
Government grants | Government grants represent cash received by the Group in the PRC from local governments as incentives for investing in certain local districts, and are typically granted based on the amount of investments the Group made as well as income generated by the Group in such districts. Such subsidies allow the Group full discretion to utilize the funds and are used by the Group for general corporate purposes. The local governments have final discretion as to whether the Group has met all criteria to be entitled to the subsidies. Normally, the Group does not receive written confirmation from local governments indicating the approval of the cash subsidy before cash is received, and therefore cash subsidies are recognized when received and when all the conditions for their receipts have been satisfied. Government grants recognized 17,016 19,657 28,188 |
Leases | Leases A lease of which substantially all the benefits and risks incidental to ownership remain with the lessor is classified as an operating lease. All leases of the Group are currently classified as operating leases. When a lease contains rent holidays or requires fixed escalations of the minimum lease payments, the Group records the total rental expense on a straight-line basis over the initial lease term and the difference between the straight-line rental expense and cash payment under the lease is recorded as deferred rent. As of December 31, 2014 and 2015, deferred rent of RMB 21,701 37,224 830,414 945,192 |
Capitalization of interest | Capitalization of interest Interest cost incurred on funds used to construct leasehold improvements during the active construction period is capitalized. The interest capitalized is determined by applying the borrowing interest rate to the average amount of accumulated capital expenditures for the assets under construction during the period. The interest expense incurred for the years ended December 31, 2013, 2014 and 2015 were RMB 1,084 14,733 5,383 271 13,200 1,529 |
Income taxes | Income taxes Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. Net operating losses are carried forward and credited by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of the Group, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. |
Foreign currency translation | Foreign currency translation The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company is the United States dollar (“US dollar”). Monetary assets and liabilities denominated in currencies other than the US dollar are translated into US dollar at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the US dollar during the year are converted into the US dollar at the applicable rates of exchange prevailing on the day transactions occurred. Transaction gains and losses are recognized in the statements of comprehensive income. Assets and liabilities are translated into RMB at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss in the consolidated statements of comprehensive income. The financial records of the Group’s subsidiaries are maintained in local currencies, which are the functional currencies. |
Comprehensive income | Comprehensive income includes all changes in equity except for those resulting from investments by owners and distributions to owners and is comprised of net income, foreign-currency translation adjustments and unrealized securities holding gains (losses). |
Concentration of credit risk | Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term and long-term investments and accounts receivable. All of the Group’s cash and cash equivalents and restricted cash are held with financial institutions that Group management believes to be high credit quality. In addition, the Group’s investment policy limits its exposure to concentrations of credit risk and the Group's short-term and long-term investments consist of loan receivables and equity investments in listing and private companies. The Group conducts credit evaluations on its group and agency customers and generally does not require collateral or other security from such customers. The Group periodically evaluates the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. |
Fair value | Fair value The Group defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The estimated fair value of the Group's financial instruments that are not reported at fair value, including cash, restricted cash, loans to franchisees and cost method equity investment, receivables, payables and accruals, approximates their carrying value due to their short-term nature. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group measures fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates. Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) Short-term available-for-sale securities 506,407 506,407 Long-term available-for-sale securities 166,546 166,546 Total 672,953 672,953 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Fair Value for Identical Observable Unobservable Total Loss Year Ended Year ended Assets Inputs Inputs for the December 31, Description December 31 (Level 1) (Level 2) (Level 3) Year 2013 Property and equipment 5,382 5,382 7,965 2014 Property and equipment 13,561 13,561 27,203 2014 Goodwill 188 2015 Property and equipment 21,879 21,879 93,163 2015 Goodwill 2,445 As a result of reduced expectations of future cash flows from certain leased hotels, the Group determined that the hotels property and equipment with a carrying amount of RMB 13,347 40,764 115,042 7,965 27,203 93,163 188 2,445 Fair value of the property and equipment as well as the reporting units was determined by the Group based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected hotels' revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. As a result, the Group has determined that the majority of the inputs used to value its long-lived assets held and used and its reporting units are unobservable inputs that fall within Level 3 of the fair value hierarchy. The revenue growth rate and the discount rate were the significant unobservable input used in the fair value measurement, which are 4 20 |
Share-based compensation | Share-based compensation The Group recognizes share-based compensation in the consolidated statements of comprehensive income based on the fair value of equity awards on the date of the grant, with compensation expenses recognized over the period in which the grantee is required to provide service to the Group in exchange for the equity award. Vesting of certain equity awards are based on the performance conditions for a period of time following the grant date. Share-based compensation expense is recognized according to the Group's judgement of likely future performance and will be adjusted in future periods based on the actual performance. Compensation expenses for the awards with market conditions are recognized during the requisite service period, even if the market condition is never satisfied. 30,468 31,937 52,535 Year Ended December 31, 2013 2014 2015 Hotel operating costs 4,948 6,830 8,835 Selling and marketing expenses 973 939 907 General and administrative expenses 24,547 24,168 42,793 Total 30,468 31,937 52,535 |
Earnings per share | Earnings per share Basic earnings per share is computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares and is calculated using the treasury stock method for stock options and nonvested restricted stocks. |
Segment reporting | Segment reporting The Group operates and manages its business as a single segment. The Group primarily generates its revenues from customers in the PRC. Substantially all of the Group’s long-lived assets are located in the PRC. |
Treasury shares | Treasury shares Treasury shares represent shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury shares are accounted for under the cost method. As of December 31, 2015, under the repurchase plan, the Company had repurchased an aggregate of 3,096,764 107,331 |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) Revenue from Contracts with Customers (Topic 606) Revenue RecognitionConstruction-Type and Production-Type Contracts, Other Assets and Deferred CostsContracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective In August 2014, the FASB issued ASU No. 2014-15, Presentation of financial statementsgoing concern (Subtopic 205-40), which provided guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures so as to reduce the diversity in the timing and content of footnote disclosures. ASU 2014-15 will be effective for annual periods ending after December 15, 2016. The Group does not expect the adoption will have a material impact on the Group’s consolidated financial statements. In September, 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, In November, 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In January, 2016, the FASB issued ASU No. 2016-01, to improve the recognition and measurement of financial instruments. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-07, which eliminates the requirement to retroactively adopt the equity method of accounting. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Group is in the process of evaluating the impact of this ASU on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, which amends the principal-versus-agent implementation guidance and illustrations in the Board's new revenue standard (ASC 606). The amendments in this update clarify the implementation guidance on principal versus agent considerations. When another party, along with the reporting entity, is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (as a principal) or to arrange for the good or service to be provided to the customer by the other party (as an agent). The guidance is effective for interim and annual periods beginning after December 15, 2017. The Group is in the process of evaluating the impact of this ASU on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. For public entities, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Early adoption will be permitted in any interim or annual period for which financial statements have not yet been issued or have not been made available for issuance. The Group is in the process of evaluating the impact of this ASU on the consolidated financial statements . |
Translation into United States Dollars | Translation into United States Dollars The financial statements of the Group are stated in RMB. Translations of amounts from RMB into United States dollars are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB 6.4778 |
SUMMARY OF PRINCIPAL ACCOUNTI32
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of expected useful lives of property and equipment | The expected useful lives are as follows: Leasehold improvements Buildings 40 Furniture, fixtures and equipment 3 5 Motor vehicles 5 |
Schedule of information about inputs into the fair value measurements of the assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition | As of December 31, 2015, information about inputs into the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) Short-term available-for-sale securities 506,407 506,407 Long-term available-for-sale securities 166,546 166,546 Total 672,953 672,953 |
Assets measured at fair value on a non-recurring basis | The following table presents the Group’s assets measured at fair value on a non-recurring basis for the years ended December 31, 2013, 2014 and 2015: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Fair Value for Identical Observable Unobservable Total Loss Year Ended Year ended Assets Inputs Inputs for the December 31, Description December 31 (Level 1) (Level 2) (Level 3) Year 2013 Property and equipment 5,382 5,382 7,965 2014 Property and equipment 13,561 13,561 27,203 2014 Goodwill 188 2015 Property and equipment 21,879 21,879 93,163 2015 Goodwill 2,445 |
Schedule of share-based compensation expense recognized | For the years ended December 31, 2013, 2014 and 2015, the Group recognized share-based compensation expenses of RMB 30,468 31,937 52,535 Year Ended December 31, 2013 2014 2015 Hotel operating costs 4,948 6,830 8,835 Selling and marketing expenses 973 939 907 General and administrative expenses 24,547 24,168 42,793 Total 30,468 31,937 52,535 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Summary of fair values of the assets acquired and liabilities assumed | The following is a summary of the fair values of the assets acquired and liabilities assumed: 2013 2014 2015 Amortization Period Current assets 5,552 25 3,382 Property and equipment 29,805 10,477 74,222 5-10 years Favorable leases 6,422 3,330 41,283 remaining lease terms Deferred tax assets 6,628 515 Franchise agreements 3,300 remaining contracts terms Goodwill 662 46,135 Other noncurrent assets 663 Current liabilities (2,501) (22,864) Deferred tax liabilities (13,145) (832) (11,146) Noncontrolling interest (25) (8,264) Total 33,423 12,975 127,226 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Investments [Abstract] | |
Short-term Investments | The short-term investments as of December 31, 2014 and 2015 were as follows: As of December 31, 2014 2015 Loan receivables from franchisees 6,904 16,955 Loan receivables from other entities 19,711 9,853 HMIN 506,407 Total 26,615 533,215 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Property and equipment, net consist of the following: As of December 31, 2014 2015 Cost: Buildings 12,115 12,115 Leasehold improvements 4,916,270 5,354,550 Furniture, fixtures and equipment 742,682 838,380 Motor vehicles 820 820 5,671,887 6,205,865 Less: Accumulated depreciation (2,008,882) (2,582,184) 3,663,005 3,623,681 Construction in progress 244,338 182,205 Property and equipment, net 3,907,343 3,805,886 |
INTANGIBLE ASSETS, NET AND UN36
INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets And Below Market Lease Excluding Goodwill [Abstract] | |
Schedule of intangible assets, net | Intangible assets, net consist of the following: As of December 31, 2014 2015 Brand name 28,600 28,600 Franchise agreements 7,700 11,000 Non-compete agreement 400 400 Favorable lease agreements 79,378 120,661 Purchased software 35,298 44,405 Total 151,376 205,066 Less: Accumulated amortization (46,839) (60,254) Total 104,537 144,812 |
Unfavorable lease | Unfavorable lease As of December 31, 2014 2015 Unfavorable lease agreements 3,924 3,924 Less: Accumulated amortization (2,604) (2,893) Unfavorable lease agreements, net 1,320 1,031 |
Schedule of annual estimated amortization expense for intangible assets and unfavorable lease | The annual estimated amortization expense for the above intangible assets and unfavorable lease for the following years is as follows: Amortization for Amortization for Intangible Assets Unfavorable Lease Net Amortization 2016 14,683 (209) 14,474 2017 14,326 (130) 14,196 2018 13,222 (130) 13,092 2019 12,702 (130) 12,572 2020 12,322 (130) 12,192 Thereafter 48,957 (302) 48,655 116,212 (1,031) 115,181 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long Term Investment Disclosure [Abstract] | |
Schedule of long term investment | The long-term investments as of December 31, 2014 and 2015 were as follows: As of December 31, 2014 2015 Available-for-sale securities: Quanjude 137,943 166,546 Cost-method investments: UBOX/BJ UBOX 40,517 48,220 BJ GOOAGOO/GOOAGOO 10,289 59,939 Founder Service 20,000 Qingpu 17,143 Equity-method investments: Sheen Star 20,990 20,862 Yibang 2,482 770 Campsort 11,644 Other investments 10,762 Loan receivables from franchisees 5,140 12,336 Total 229,005 356,578 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2013, 2014 and 2015 were as follows: Gross Accumulated Net Amount Impairment Loss Amount Balance at January 1, 2013 65,988 (1,808) 64,180 Increase in goodwill related to acquisitions 662 662 Balance at December 31, 2013 66,650 (1,808) 64,842 Impairment losses recognized (188) (188) Balance at December 31, 2014 66,650 (1,996) 64,654 Increase in goodwill related to acquisitions 46,135 46,135 Impairment losses recognized (2,445) (2,445) Balance at December 31, 2015 112,785 (4,441) 108,344 |
ACCRUED EXPENSES AND OTHER CU39
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2014 2015 Payable for business acquisitions 5,745 111,696 Business taxes and other surcharge payables 58,887 69,158 Accrual for customer loyalty program 71,475 113,749 Payable to noncontrolling interest holders 5,552 23,938 Other payables 41,864 102,069 Accrued rental 44,125 48,623 Accrued utilities 37,320 43,690 Other accrued expenses 48,049 63,237 Total 313,017 576,160 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities | Other long-term liabilities consist of the following: As of December 31, 2014 2015 Deposits from franchisees 167,332 215,424 Others 48,430 60,530 Total 215,762 275,954 |
HOTEL OPERATING COSTS (Tables)
HOTEL OPERATING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Hotel Operating Cost Disclosure [Abstract] | |
Schedule of hotel operating costs | Year Ended December 31, 2013 2014 2015 Rents 1,255,663 1,543,651 1,804,532 Utilities 273,314 323,837 341,620 Personnel costs 638,511 788,973 919,555 Depreciation and amortization 453,062 558,833 645,058 Consumable, food and beverage 391,715 454,795 485,099 Others 169,401 207,938 316,283 Total 3,181,666 3,878,027 4,512,147 |
PRE-OPENING EXPENSES (Tables)
PRE-OPENING EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Preopening Expenses Disclosure [Abstract] | |
Schedule of pre-opening expenses incurred during the hotel pre-opening period | Pre-opening expenses primarily include rental expenses and employee costs incurred during the hotel pre-opening period. Year Ended December 31, 2013 2014 2015 Rents 186,656 163,155 95,977 Personnel costs 8,700 7,217 5,903 Others 15,928 15,953 8,131 Total 211,284 186,325 110,011 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Significant assumptions used for estimating fair value of stock options | The fair value of stock options was estimated using the following significant assumptions: 2014 2015 Suboptimal exercise factor 4.40 4.16 Risk-free interest rate 1.89 to 1.99% 1.49 to 1.74% Volatility 47.22 to 47.75% 38.88 to 39.25% Dividend yield Life of option 6 years 6 years |
Summary of the Group's share option activity under the option plans | The following table summarized the Group’s share option activity under the option plans: Weighted Average Number of Weighted Average Remaining Aggregate Intrinsic Options Exercise Price Contractual Life Value US$ Years US$'000 Share options outstanding at January 1, 2015 4,921,998 2.23 Granted 118,348 4.76 Forfeited (48,704) 5.09 Exercised (1,528,104) 2.40 Share options outstanding at December 31, 2015 3,463,538 2.21 3.11 19,430 Share options vested or expected to vest at December 31, 2015 3,413,317 2.16 3.09 19,308 Share options exercisable at December 31, 2015 702,848 3.22 2.88 3,229 |
Summary of the Group's nonvested restricted stock activity | The following table summarized the Group’s nonvested restricted stock activity in 2015. Weighted Average Grant Date Number of Restricted Stocks Fair Value US$ Nonvested restricted stocks outstanding at January 1, 2015 3,237,240 4.25 Granted 13,931,961 4.77 Forfeited (807,413) 4.85 Vested (1,702,964) 3.77 Nonvested restricted stocks outstanding at December 31, 2015 14,658,824 4.77 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for the years indicated: Year Ended December 31, 2013 2014 2015 Net income attributable to ordinary shareholders basic 279,858 307,348 436,600 Net income attributable to ordinary shareholders diluted 279,858 307,348 436,600 Weighted average ordinary shares outstanding basic 245,187,348 248,957,645 250,533,204 Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method 4,298,936 4,046,559 5,570,963 Weighted average ordinary shares outstanding diluted 249,486,284 253,004,204 256,104,167 Basic earnings per share 1.14 1.23 1.74 Diluted earnings per share 1.12 1.21 1.70 |
Schedule of outstanding securities excluded from the computation of diluted earnings per share | For the years ended December 31, 2013, 2014 and 2015, the Group had securities which could potentially dilute basic earnings per share in the future, but which were excluded from the computation of diluted earnings per share as their effects would have been anti-dilutive. Such outstanding securities consist of the following: Year Ended December 31, 2013 2014 2015 Outstanding employee options and nonvested restricted stocks 293,512 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of tax expense (benefit) | Tax expense (benefit) is comprised of the following: As of December 31, 2013 2014 2015 Current Tax 127,439 155,496 246,678 Deferred Tax (22,619) (42,391) (50,149) Total 104,820 113,105 196,529 |
Schedule of a reconciliation between the effective income tax rate and PRC statutory income tax rate | A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Year Ended December 31, 2013 2014 2015 PRC statutory tax rate 25 % 25 % 25 % Tax effect of other expenses that are not deductible in determining taxable profit 3 % 2 % 3 % Effect of different tax rate of group entities operating in other jurisdictions (1 %) Effect of change in valuation allowance 3 % 3 % 5 % Effect of tax holiday (3 %) (3 %) (7 %) Effect of cash dividends 5 % Effective tax rate 27 % 27 % 31 % |
Schedule of the aggregate amount and per share effect of the tax holidays | The aggregate amount and per share effect of the tax holidays are as follows: Year Ended December 31, 2013 2014 2015 Aggregate amount 12,721 9,131 41,288 Per share effectbasic 0.05 0.04 0.16 Per share effectdiluted 0.05 0.04 0.16 |
Schedule of the principal components of the Group's deferred income tax assets and liabilities | The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2014 and 2015 are as follows: As of December 31, 2014 2015 Deferred tax assets: Net loss carryforward 113,333 158,910 Pre-opening expenses 306 785 Deferred revenue 62,977 72,914 Deferred rent 4,684 5,316 Long-term assets 8,460 27,341 Bad debt provision 1,494 1,390 Accrual for customer loyalty program 17,869 28,437 Accrued payroll 2,462 2,791 Other accrued expenses 4,457 850 Share-based compensation 9,745 10,857 Others 577 1,613 Valuation allowance (62,868) (92,527) Total deferred tax assets 163,496 218,677 Deferred tax liabilities: Favorable lease 23,545 30,641 Capitalized interest 4,410 4,163 Unrealized gain for investment 9,485 16,636 Others 1,039 9,853 Total deferred tax liabilities 38,479 61,293 Deferred tax assets are analyzed as: Current 80,026 98,200 Non-Current 83,470 120,477 163,496 218,677 Deferred tax liabilities are analyzed as: Current 701 1,465 Non-current 37,778 59,828 38,479 61,293 |
Schedule of unrecognized tax benefits | The following table is a roll-forward of the unrecognized tax benefits: As of December 31, 2013 2014 2015 Balance at January 1 4,148 7,122 8,345 Addition for tax positions 2,974 1,223 6,410 Balance at December 31 7,122 8,345 14,755 |
RELATED PARTY TRANSACTIONS AN46
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of related parties | The Group is not obligated to provide any type of financial support to these related parties. Nature of the Party Relationship with the Group Ctrip.com International, Ltd. (“Ctrip”) Online travel services provider Mr. Qi Ji is a director Lijiang Yibang Changchunteng Hotel Co Limited (“Yibang”) Hotel Joint venture of the Group Sheen Star Group Limited (“Sheen Star”) Investment holding company Equity method investee of the Group, controlled by Mr. Qi Ji Shanghai Qianya Hotel Management Co., Ltd (“Qianya”) Hotels management Investee of the Group |
Amounts due from related parties | Amounts due from a related party were shareholder loan to Yibang. As of December 31, 2014 2015 Yibang 16,293 16,157 |
Amounts due to related party | The commissions payable for reservation services and the service fee payable for hotels management services were interest free and payable upon demand, and the Starway acquisition payable was to be paid in the following year. As of December 31, 2014 2015 Ctrip -Payables for hotel reservation services 2,319 3,332 -Payables for Starway acquisition 8,167 4,084 Qianya -Payables for hotel management services 237 10,486 7,653 |
Related party transactions | During the years ended December 31, 2013, 2014 and 2015, related party transactions consisted of the following: Year Ended December 31, 2013 2014 2015 Commission expenses Ctrip 17,128 19,235 17,740 Service fee Yibang 199 527 593 Service fee Qianya 417 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under non-cancellable operating lease agreements | Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2015 were as follows: Year Ending December 31, 2016 1,872,773 2017 1,881,995 2018 1,861,825 2019 1,826,236 2020 1,756,499 Thereafter 10,585,970 Total 19,785,298 |
ORGANIZATION AND PRINCIPAL AC48
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Textual) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Term Of Franchise And Management Agreements | 8 years | |
Maximum [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Term Of Franchise And Management Agreements | 10 years | |
Leased Hotels [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Number Of Hotels | 616 | 611 |
Leased Hotels [Member] | Minimum [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Lease Rent Holiday Period | 2 months | |
Rent escalation as a percentage | 3.00% | |
Period Before Rent Escalation | 3 years | |
Leased Hotels [Member] | Maximum [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Lease Rent Holiday Period | 6 months | |
Rent escalation as a percentage | 5.00% | |
Period Before Rent Escalation | 5 years | |
Manachised Hotels [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Number Of Hotels | 2,067 | 1,376 |
Franchise Hotels [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Number Of Hotels | 80 | 8 |
SUMMARY OF PRINCIPAL ACCOUNTI49
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the lease term or their estimated useful lives |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Furniture Fixtures And Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture Fixtures And Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF PRINCIPAL ACCOUNTI50
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Details 1) - Fair Value, Measurements, Recurring [Member] ¥ in Thousands | Dec. 31, 2015CNY (¥) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term available-for-sale securities | ¥ 506,407 |
Long-term available-for-sale securities | 166,546 |
Total | 672,953 |
Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term available-for-sale securities | 506,407 |
Long-term available-for-sale securities | 166,546 |
Total | 672,953 |
Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term available-for-sale securities | 0 |
Long-term available-for-sale securities | 0 |
Total | 0 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term available-for-sale securities | 0 |
Long-term available-for-sale securities | 0 |
Total | ¥ 0 |
SUMMARY OF PRINCIPAL ACCOUNTI51
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Details 2) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Assets Measured On Nonrecurring Basis Unobservable Input Reconciliation [Line Items] | |||
Goodwill impairment loss | ¥ 2,445 | ¥ 188 | ¥ 0 |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Assets Measured On Nonrecurring Basis Unobservable Input Reconciliation [Line Items] | |||
Long-lived asset impairment loss | 93,163 | 27,203 | 7,965 |
Goodwill impairment loss | 2,445 | 188 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Assets Measured On Nonrecurring Basis Unobservable Input Reconciliation [Line Items] | |||
Property and equipment | 21,879 | 13,561 | 5,382 |
Goodwill | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Assets Measured On Nonrecurring Basis Unobservable Input Reconciliation [Line Items] | |||
Property and equipment | 0 | 0 | 0 |
Goodwill | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Assets Measured On Nonrecurring Basis Unobservable Input Reconciliation [Line Items] | |||
Property and equipment | 0 | 0 | 0 |
Goodwill | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | |||
Fair Value Assets Measured On Nonrecurring Basis Unobservable Input Reconciliation [Line Items] | |||
Property and equipment | 21,879 | 13,561 | ¥ 5,382 |
Goodwill | ¥ 0 | ¥ 0 |
SUMMARY OF PRINCIPAL ACCOUNTI52
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Details 3) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized share-based compensation expenses | ¥ 52,535 | ¥ 31,937 | ¥ 30,468 |
Hotel Operating Costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized share-based compensation expenses | 8,835 | 6,830 | 4,948 |
Selling and Marketing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized share-based compensation expenses | 907 | 939 | 973 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized share-based compensation expenses | ¥ 42,793 | ¥ 24,168 | ¥ 24,547 |
SUMMARY OF PRINCIPAL ACCOUNTI53
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Details Textual) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Mar. 24, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2012CNY (¥) | |
Summary Of Principal Accounting Policies [Line Items] | ||||||
Marketing and Advertising Expense, Total | ¥ 47,971 | ¥ 79,806 | ¥ 43,807 | |||
Government Grants Unrestricted | 28,188 | 19,657 | 17,016 | |||
Deferred Rent Credit, Current | 37,224 | 21,701 | ||||
Deferred Rent Credit, Noncurrent | 945,192 | 830,414 | $ 145,912 | |||
Interest Costs Incurred | 5,383 | 14,733 | 1,084 | |||
Interest Costs Capitalized | 1,529 | 13,200 | 271 | |||
Property, Plant and Equipment, Net, Total | 3,805,886 | 3,907,343 | 587,527 | |||
Goodwill | 108,344 | 64,654 | 64,842 | $ 16,726 | ¥ 64,180 | |
Goodwill, Impairment Loss | ¥ 2,445 | ¥ 188 | ¥ 0 | |||
Fair Value Inputs, Long-term Revenue Growth Rate | 4.00% | 4.00% | 4.00% | |||
Fair Value Inputs, Discount Rate | 20.00% | 20.00% | 20.00% | |||
Allocated Share-based Compensation Expense | ¥ 52,535 | ¥ 31,937 | ¥ 30,468 | |||
Foreign Currency Exchange Rates Translation | ¥ / shares | ¥ 6.4778 | |||||
Inventory Useful Life | 1 year | |||||
Cost Method Investment Ownership Percentage Maximum | 20.00% | 20.00% | ||||
Customer Loyalty Program Liability, Current | ¥ 113,749 | 71,475 | ||||
Hotel Manager Fee Revenue | 261,743 | 166,572 | 116,885 | |||
Revenue recognized from customer loyalty program | 130,644 | 107,737 | 74,715 | |||
Treasury Stock, Value, Acquired, Cost Method | ¥ 107,331 | |||||
Treasury Stock [Member] | ||||||
Summary Of Principal Accounting Policies [Line Items] | ||||||
Treasury Stock, Shares, Acquired | shares | 3,096,764 | |||||
Treasury Stock, Value, Acquired, Cost Method | ¥ 107,331 | |||||
Subsequent Event [Member] | ||||||
Summary Of Principal Accounting Policies [Line Items] | ||||||
Value Added Tax Rate | 6.00% | |||||
Property, Plant and Equipment [Member] | ||||||
Summary Of Principal Accounting Policies [Line Items] | ||||||
Impairment of Long-Lived Assets Held-for-use | ¥ 93,163 | 27,203 | 7,965 | |||
Minimum [Member] | ||||||
Summary Of Principal Accounting Policies [Line Items] | ||||||
Period Of Capital Verification Approval Process For Newly Established Subsidiaries | 3 months | |||||
Estimated membership duration | 2 years | |||||
Maximum [Member] | ||||||
Summary Of Principal Accounting Policies [Line Items] | ||||||
Period Of Capital Verification Approval Process For Newly Established Subsidiaries | 6 months | |||||
Estimated membership duration | 5 years | |||||
Redemption period for points earned by members on paid stays | 2 years | |||||
Fair Value, Measurements, Nonrecurring [Member] | ||||||
Summary Of Principal Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Net, Total | ¥ 115,042 | 40,764 | 13,347 | |||
Goodwill | 2,445 | 188 | ||||
Impairment of Long-Lived Assets Held-for-use | 93,163 | 27,203 | ¥ 7,965 | |||
Goodwill, Impairment Loss | ¥ 2,445 | ¥ 188 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2012CNY (¥) | |
Business Acquisition [Line Items] | |||||
Goodwill | ¥ 108,344 | ¥ 64,654 | ¥ 64,842 | $ 16,726 | ¥ 64,180 |
Acquired Individual Hotels [Member] | |||||
Business Acquisition [Line Items] | |||||
Current assets | 3,382 | 25 | 5,552 | ||
Property and equipment | 74,222 | 10,477 | 29,805 | ||
Deferred tax assets | 515 | 0 | 6,628 | ||
Goodwill | 46,135 | 0 | 662 | ||
Other noncurrent assets | 663 | 0 | 0 | ||
Current liabilities | (22,864) | 0 | (2,501) | ||
Deferred tax liabilities | (11,146) | (832) | (13,145) | ||
Noncontrolling interest | (8,264) | (25) | 0 | ||
Total | ¥ 127,226 | ¥ 12,975 | ¥ 33,423 | ||
Acquired Individual Hotels [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | 10 years | ||
Acquired Individual Hotels [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 5 years | 5 years | 5 years | ||
Acquired Individual Hotels [Member] | Franchise Rights [Member] | |||||
Business Acquisition [Line Items] | |||||
Favorable leases | ¥ 3,300 | ¥ 0 | ¥ 0 | ||
Acquired Individual Hotels [Member] | Off-Market Favorable Lease [Member] | |||||
Business Acquisition [Line Items] | |||||
Favorable leases | ¥ 41,283 | ¥ 3,330 | ¥ 6,422 |
ACQUISITIONS (Details Textual)
ACQUISITIONS (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Nine Individual Hotels Acquired In 2013 [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred, Total | ¥ 33,423 | |||
One Individual Hotels Acquired In 2014 [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred, Total | ¥ 12,975 | |||
Starway Hotels Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | ¥ 4,083 | ¥ 4,083 | ¥ 4,210 | |
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 51.00% | ||
Business Combination, Consideration Transferred, Total | ¥ 16,460 | |||
Business Combination, Consideration Transferred, Liabilities Incurred | 4,084 | |||
Adjustments To Additional Paid In Capital Acquisition Of Noncontrolling Interest | ¥ 2,514 | |||
One Hotel Chain And Two Individual Hotels Acquired In 2015 [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred, Total | ¥ 127,226 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) |
Investment Holdings [Line Items] | |||
Short-term Investments, Total | ¥ 533,215 | $ 82,314 | ¥ 26,615 |
HMIN [Member] | |||
Investment Holdings [Line Items] | |||
Short-term Investments, Total | 506,407 | 0 | |
Loan receivables from franchisees [Member] | |||
Investment Holdings [Line Items] | |||
Short-term Investments, Total | 16,955 | 6,904 | |
Loan receivables from other entities [Member] | |||
Investment Holdings [Line Items] | |||
Short-term Investments, Total | ¥ 9,853 | ¥ 19,711 |
SHORT-TERM INVESTMENTS (Detai57
SHORT-TERM INVESTMENTS (Details Textual) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Investment Holdings [Line Items] | ||||
Investment Income, Interest | ¥ 26,712 | $ 4,124 | ¥ 23,162 | ¥ 6,856 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 68,069 | $ 10,508 | 28,458 | |
Loan Receivables From Other Entities [Member] | ||||
Investment Holdings [Line Items] | ||||
Investment Income, Interest | 2,273 | 91 | ||
Loan Receivables From Franchisees [Member] | ||||
Investment Holdings [Line Items] | ||||
Investment Income, Interest | ¥ 1,124 | ¥ 184 | ||
Minimum [Member] | Loan Receivables From Other Entities [Member] | ||||
Investment Holdings [Line Items] | ||||
Investments Interest Rate | 0.00% | 0.00% | 0.00% | |
Minimum [Member] | Loan Receivables From Franchisees [Member] | ||||
Investment Holdings [Line Items] | ||||
Loan To Franchisees Term | 2 years | 2 years | 2 years | |
Investments Interest Rate | 8.00% | 8.00% | 8.00% | |
Maximum [Member] | Loan Receivables From Other Entities [Member] | ||||
Investment Holdings [Line Items] | ||||
Investments Interest Rate | 12.00% | 12.00% | 12.00% | |
Maximum [Member] | Loan Receivables From Franchisees [Member] | ||||
Investment Holdings [Line Items] | ||||
Loan To Franchisees Term | 3 years | 3 years | 3 years | |
Investments Interest Rate | 8.50% | 8.50% | 8.50% | |
HOMEINNS HOTEL GROUP [Member] | ||||
Investment Holdings [Line Items] | ||||
American Depositary Shares Acquired During Period | shares | 2,282,951 | 2,282,951 | ||
Payments to Acquire Available-for-sale Securities, Total | ¥ 434,811 | |||
Available-for-sale Securities, Total | 506,407 | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | ¥ 46,617 | |||
Percentage Of Equity Interest Acquired | 4.70% | 4.70% |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) |
Cost: | |||
Property and equipment, gross | ¥ 6,205,865 | ¥ 5,671,887 | |
Less: Accumulated depreciation | (2,582,184) | (2,008,882) | |
Property and equipment net excluding construction in process | 3,623,681 | 3,663,005 | |
Construction in progress | 182,205 | 244,338 | |
Property and equipment, net | 3,805,886 | $ 587,527 | 3,907,343 |
Buildings [Member] | |||
Cost: | |||
Property and equipment, gross | 12,115 | 12,115 | |
Leasehold Improvements [Member] | |||
Cost: | |||
Property and equipment, gross | 5,354,550 | 4,916,270 | |
Furniture Fixtures And Equipment [Member] | |||
Cost: | |||
Property and equipment, gross | 838,380 | 742,682 | |
Motor vehicles [Member] | |||
Cost: | |||
Property and equipment, gross | ¥ 820 | ¥ 820 |
PROPERTY AND EQUIPMENT, NET (59
PROPERTY AND EQUIPMENT, NET (Details Textual) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Jan. 30, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation, Total | ¥ 648,277 | ¥ 559,918 | ¥ 453,637 | ||
Long Lived Assets Disposed Write Down | 2,301 | 3,971 | 7,296 | ||
Long Lived Assets Disposal Cash Received | 5,721 | 4,004 | 15,030 | ¥ 1,000 | ¥ 2,000 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 5,519 | ¥ 33 | 10,734 | ||
Reimbursements Receivable | ¥ 2,099 | ¥ 3,000 | |||
Number Of Hotels Likely To Be Demolished | 2 | ||||
Long Lived Assets To Be Abandoned Carrying Value Of Assets | ¥ 12,987 | ||||
Number Of Hotels Demolished | 1 | 1 | 3 |
INTANGIBLE ASSETS, NET AND UN60
INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | ¥ 205,066 | ¥ 151,376 | |
Less: Accumulated amortization | (60,254) | (46,839) | |
Total | 144,812 | $ 22,355 | 104,537 |
Non-compete agreement | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 400 | 400 | |
Favorable lease agreements | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 120,661 | 79,378 | |
Purchased software | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 44,405 | 35,298 | |
Brand name [Member] | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | 28,600 | 28,600 | |
Franchise Agreements [Member] | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross | ¥ 11,000 | ¥ 7,700 |
INTANGIBLE ASSETS, NET AND UN61
INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE (Details 1) - CNY (¥) ¥ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Unfavorable lease | ||
Unfavorable lease agreements | ¥ 3,924 | ¥ 3,924 |
Less: Accumulated amortization | (2,893) | (2,604) |
Unfavorable lease agreements, net | ¥ 1,031 | ¥ 1,320 |
INTANGIBLE ASSETS, NET AND UN62
INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE (Details 2) - CNY (¥) ¥ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortization for intangible assets | ||
2,016 | ¥ 14,683 | |
2,017 | 14,326 | |
2,018 | 13,222 | |
2,019 | 12,702 | |
2,020 | 12,322 | |
Thereafter | 48,957 | |
Finite Lived Intangible Assets Amortization Expenses, Total | 116,212 | |
Amortization for unfavorable lease | ||
2,016 | (209) | |
2,017 | (130) | |
2,018 | (130) | |
2,019 | (130) | |
2,020 | (130) | |
Thereafter | (302) | |
Unfavorable lease Amortization Income, Total | (1,031) | ¥ (1,320) |
Net amortization | ||
2,016 | 14,474 | |
2,017 | 14,196 | |
2,018 | 13,092 | |
2,019 | 12,572 | |
2,020 | 12,192 | |
Thereafter | 48,655 | |
Net, Total | ¥ 115,181 |
INTANGIBLE ASSETS, NET AND UN63
INTANGIBLE ASSETS, NET AND UNFAVORABLE LEASE (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Amortization of Intangible Assets | ¥ 13,415 | ¥ 11,101 | ¥ 9,846 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) |
Investment Holdings [Line Items] | |||
Long-term Investments | ¥ 356,578 | $ 55,046 | ¥ 229,005 |
Other Security Investments [Member] | Equity Method Investments [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | 10,762 | 0 | |
Loan Receivables From Franchisees [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | 12,336 | 5,140 | |
Ubox International Holdings Co Limited [Member] | Cost-method Investments [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | 48,220 | 40,517 | |
Sheen Star Group Limited [Member] | Equity Method Investments [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | 20,862 | 20,990 | |
Yibang Changchunteng Hotel Co Limited [Member] | Equity Method Investments [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | 770 | 2,482 | |
China Quanjude Group Co Ltd [Member] | Available-for-sale Securities [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | 166,546 | 137,943 | |
Shanghai Campsort Travel Development Co Ltd [Member] | Equity Method Investments [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | 0 | 11,644 | |
Beijing Gooagoo Technology Service Co Ltd [Member] | Cost-method Investments [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | 59,939 | 10,289 | |
Founder Services [Member] | Cost-method Investments [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | 20,000 | 0 | |
Qingpu [Member] | Cost-method Investments [Member] | |||
Investment Holdings [Line Items] | |||
Long-term Investments | ¥ 17,143 | ¥ 0 |
LONG-TERM INVESTMENTS (Detail T
LONG-TERM INVESTMENTS (Detail Textual) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | May. 31, 2013CNY (¥) | Nov. 30, 2015CNY (¥) | Sep. 30, 2015CNY (¥)shares | Dec. 31, 2014CNY (¥) | Nov. 30, 2014CNY (¥) | Jul. 31, 2014CNY (¥) | Jun. 30, 2014CNY (¥)¥ / sharesshares | Apr. 30, 2014CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2013CNY (¥) |
Long Term Investments [Line Items] | |||||||||||||
Income (Loss) from Equity Method Investments | ¥ (129) | $ (20) | ¥ 4,902 | ¥ (430) | |||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 68,069 | 10,508 | 28,458 | ||||||||||
Payments to Acquire Long-term Investments | ¥ 137,707 | $ 21,258 | 191,064 | 54,744 | |||||||||
Ubox International Holdings Co Limited [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Percentage Of Equity Interest Acquired | 3.60% | 3.60% | |||||||||||
Payments to Acquire Long-term Investments | ¥ 7,703 | ¥ 40,517 | |||||||||||
Sheen Star Group Limited [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Income (Loss) from Equity Method Investments | (153) | 0 | |||||||||||
Equity Interest Owned By Majority Owner Of The Investee | 50.01% | ||||||||||||
Equity Method Investment, Ownership Percentage | 19.99% | ||||||||||||
Payments to Acquire Long-term Investments | ¥ 20,990 | ||||||||||||
Yibang Changchunteng Hotel Co Limited [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Percentage Of Equity Interest Acquired | 30.00% | 20.00% | |||||||||||
Income (Loss) from Equity Method Investments | (1,712) | 2,197 | ¥ (430) | ||||||||||
Payments to Acquire Long-term Investments | ¥ 430 | ¥ 285 | |||||||||||
China Quanjude Group Co Ltd [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Payments to Acquire Available-for-sale Securities, Total | ¥ 100,000 | ||||||||||||
Percentage Of Equity Interest Acquired | 2.35% | ||||||||||||
Number Of Shares Acquired In Investment Of Available For Sale Securities | shares | 7,241,131 | ||||||||||||
Share Price Of Investment | ¥ / shares | ¥ 13.81 | ||||||||||||
Available-for-sale Securities, Total | ¥ 137,943 | 166,546 | 137,943 | ||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 21,451 | 28,458 | |||||||||||
Loan Receivables From Franchisees [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Investment Income, Nonoperating, Total | ¥ 986 | ¥ 266 | |||||||||||
Loan Receivables From Franchisees [Member] | Maximum [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Loan To Franchisees Term | 3 years | 3 years | 3 years | ||||||||||
Investments Interest Rate | 8.50% | 8.50% | 8.50% | ||||||||||
Loan Receivables From Franchisees [Member] | Minimum [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Loan To Franchisees Term | 2 years | 2 years | 2 years | ||||||||||
Investments Interest Rate | 8.00% | 8.00% | 8.00% | ||||||||||
Beijing Gooagoo Technology Service Co Ltd [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Percentage Of Equity Interest Acquired | 8.00% | ||||||||||||
Payments to Acquire Long-term Investments | ¥ 10,289 | ||||||||||||
Beijing Gooagoo Technology Service Co Ltd [Member] | Convertible Debt Securities [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Payments to Acquire Long-term Investments | ¥ 4,650 | ||||||||||||
Beijing Gooagoo Technology Service Co Ltd [Member] | Series A Preferred Stock [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Percentage Of Equity Interest Acquired | 12.50% | ||||||||||||
Payments to Acquire Long-term Investments | ¥ 45,000 | ||||||||||||
Preferred Shares Purchased | shares | 45,000,000 | ||||||||||||
Shanghai Campsort Travel Development Co Ltd [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Percentage Of Equity Interest Acquired | 30.00% | ||||||||||||
Income (Loss) from Equity Method Investments | ¥ (356) | ||||||||||||
Investment Income, Nonoperating, Total | ¥ 2,766 | ||||||||||||
Percentage Of Equity Interest Transferred | 24.00% | 24.00% | 6.00% | ||||||||||
Payments to Acquire Long-term Investments | ¥ 15,000 | ||||||||||||
Proceeds from Sale of Equity Method Investments | ¥ 14,410 | ¥ 3,000 | |||||||||||
Qingpu [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Percentage Of Equity Interest Acquired | 10.00% | 10.00% | |||||||||||
Payments to Acquire Long-term Investments | ¥ 17,143 | ||||||||||||
Shanghai Founder Service Co Ltd [Member] | |||||||||||||
Long Term Investments [Line Items] | |||||||||||||
Percentage Of Equity Interest Acquired | 10.00% | ||||||||||||
Payments to Acquire Long-term Investments | ¥ 20,000 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Changes in carrying amount of goodwill | ||||
Balance at the beginning of the period, Gross Amount | ¥ 66,650 | ¥ 66,650 | ¥ 65,988 | |
Balance at the beginning of the period, Accumulated Impairment Loss | (1,996) | (1,808) | (1,808) | |
Balance at the beginning of the period, Net Amount | 64,654 | 64,842 | 64,180 | |
Increase in goodwill related to acquisitions | 46,135 | 662 | ||
Impairment losses recognized | (2,445) | (188) | 0 | |
Balance at the end of the period, Gross Amount | 112,785 | 66,650 | 66,650 | |
Balance at the end of the period, Accumulated Impairment Loss | (4,441) | (1,996) | (1,808) | |
Balance at the end of the period, Net Amount | ¥ 108,344 | $ 16,726 | ¥ 64,654 | ¥ 64,842 |
DEBT (Details Textual)
DEBT (Details Textual) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Jul. 31, 2015USD ($) | Nov. 30, 2014CNY (¥) | Jan. 31, 2014CNY (¥) | Dec. 31, 2012USD ($) | Sep. 30, 2012CNY (¥) | Mar. 31, 2012CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2013USD ($) | Dec. 31, 2012CNY (¥) | |
Three-year revolving bank credit facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Term | 3 years | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ 300,000 | ¥ 500,000 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | ¥ 499,300 | |||||||||||
Proceeds from Long-term Lines of Credit | 100,000 | ¥ 0 | 104,540 | |||||||||
Repayments of Long-term Lines of Credit | ¥ 100,000 | ¥ 0 | ¥ 104,540 | |||||||||
Debt Instrument, Interest Rate During Period | 5.61% | 5.61% | 6.00% | 6.00% | ||||||||
Line Of Credit Facility Guarantee Amount | ¥ 700 | |||||||||||
One Year Bank Loan Contract [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Term | 1 year | |||||||||||
Debt Instrument, Interest Rate During Period | 1.49% | 1.49% | ||||||||||
Proceeds from Lines of Credit | $ | $ 30,000 | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.20% | |||||||||||
Short Term Debt Maximum Amount Borrowing Capacity | $ | $ 30,000 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | three-month London Interbank Offered Rate | |||||||||||
Debt Instrument, Collateral Amount | ¥ 220,000 | |||||||||||
One-Year Bank Loan Contract [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Term | 1 year | |||||||||||
Debt Instrument, Interest Rate During Period | 1.50% | 1.50% | ||||||||||
Proceeds from Lines of Credit | $ | $ 50,000 | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.20% | |||||||||||
Short Term Debt Maximum Amount Borrowing Capacity | $ | $ 50,000 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | three-month London Interbank Offered Rate | |||||||||||
Debt Instrument, Collateral Amount | ¥ 360,000 | |||||||||||
Five-year bank credit facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ 500,000 | |||||||||||
Line Of Credit Facility Expiration Amount | ¥ 100,000 | |||||||||||
Thirty-month bank credit facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Term | 30 months | |||||||||||
Debt Instrument, Interest Rate During Period | 3.54% | 3.54% | ||||||||||
Proceeds from Lines of Credit | $ | $ 200 | |||||||||||
Repayments of Lines of Credit | $ | $ 200 | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.70% | |||||||||||
Short Term Debt Maximum Amount Borrowing Capacity | $ | $ 10,000 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | twelve-month London Interbank Offered Rate | |||||||||||
One-year entrusted loan [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Term | 1 year | 1 year | ||||||||||
Proceeds from Lines of Credit | ¥ 300,000 | |||||||||||
Repayments of Lines of Credit | ¥ 300,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% |
ACCRUED EXPENSES AND OTHER CU68
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Payable for business acquisitions | ¥ 111,696 | ¥ 5,745 | |
Business taxes and other surcharge payables | 69,158 | 58,887 | |
Accrual for customer loyalty program | 113,749 | 71,475 | |
Payable to noncontrolling interest holders | 23,938 | 5,552 | |
Other payables | 102,069 | 41,864 | |
Accrued rental | 48,623 | 44,125 | |
Accrued utilities | 43,690 | 37,320 | |
Other accrued expenses | 63,237 | 48,049 | |
Total | ¥ 576,160 | $ 88,944 | ¥ 313,017 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) |
Other Long Term Liabilities [Line Items] | |||
Deposits from franchisees | ¥ 215,424 | ¥ 167,332 | |
Others | 60,530 | 48,430 | |
Total | ¥ 275,954 | $ 42,600 | ¥ 215,762 |
HOTEL OPERATING COSTS (Details)
HOTEL OPERATING COSTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
HOTEL OPERATING COSTS | ||||
Rents | ¥ 1,804,532 | ¥ 1,543,651 | ¥ 1,255,663 | |
Utilities | 341,620 | 323,837 | 273,314 | |
Personnel costs | 919,555 | 788,973 | 638,511 | |
Depreciation and amortization | 645,058 | 558,833 | 453,062 | |
Consumable, food and beverage | 485,099 | 454,795 | 391,715 | |
Others | 316,283 | 207,938 | 169,401 | |
Total | ¥ 4,512,147 | $ 696,556 | ¥ 3,878,027 | ¥ 3,181,666 |
PRE-OPENING EXPENSES (Details)
PRE-OPENING EXPENSES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
PRE-OPENING EXPENSES | ||||
Rents | ¥ 95,977 | ¥ 163,155 | ¥ 186,656 | |
Personnel costs | 5,903 | 7,217 | 8,700 | |
Others | 8,131 | 15,953 | 15,928 | |
Total | ¥ 110,011 | $ 16,983 | ¥ 186,325 | ¥ 211,284 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - Stock Options [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Suboptimal exercise factor | 4.16 | 4.40 |
Risk-free interest rate, minimum (as a percent) | 1.49% | 1.89% |
Risk-free interest rate, maximum (as a percent) | 1.74% | 1.99% |
Volatility, minimum (as a percent) | 38.88% | 47.22% |
Volatility, maximum (as a percent) | 39.25% | 47.75% |
Dividend yield | 0.00% | 0.00% |
Life of option | 6 years | 6 years |
SHARE-BASED COMPENSATION (Det73
SHARE-BASED COMPENSATION (Details 1) - Share options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Share options outstanding beginning balance | 4,921,998 | ||
Number of Options, Granted | 118,348 | ||
Number of Options, Forfeited | (48,704) | ||
Number of Options, Exercised | (1,528,104) | (1,591,004) | (2,802,488) |
Number of Options, Share options outstanding ending balance | 3,463,538 | 4,921,998 | |
Number of Options, Share options vested or expected to vest at December 31, 2015 | 3,413,317 | ||
Number of Options, Share options exercisable at December 31, 2015 | 702,848 | ||
Weighted Average Exercise Price, Share options outstanding begining balance | $ 2.23 | ||
Weighted Average Exercise Price, Granted | 4.76 | ||
Weighted Average Exercise Price, Forfeited | 5.09 | ||
Weighted Average Exercise Price, Exercised | 2.40 | ||
Weighted Average Exercise Price, Share options outstanding endining balance | 2.21 | $ 2.23 | |
Weighted Average Exercise Price, Share options vested or expected to vest at December 31, 2015 | 2.16 | ||
Weighted Average Exercise Price, Share options exercisable at December 31, 2015 | $ 3.22 | ||
Weighted Average Remaining Contractual Life, Share options outstanding at December 31, 2015 | 3 years 1 month 10 days | ||
Weighted Average Remaining Contractual Life, Share options vested or expected to vest at December 31, 2015 | 3 years 1 month 2 days | ||
Weighted Average Remaining Contractual Life, Share options exercisable at December 31, 2015 | 2 years 10 months 17 days | ||
Aggregate Intrinsic Value, Share options outstanding at December 31, 2015 | $ 19,430 | ||
Aggregate Intrinsic Value, Share options vested or expected to vest at December 31, 2015 | 19,308 | ||
Aggregate Intrinsic Value, Share options exercisable at December 31, 2015 | $ 3,229 |
SHARE-BASED COMPENSATION (Det74
SHARE-BASED COMPENSATION (Details 2) - Nonvested restricted stock [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Restricted Stocks, Nonvested restricted stocks outstanding begining balance | shares | 3,237,240 |
Number of Restricted Stocks, Granted | shares | 13,931,961 |
Number of Restricted Stocks, Forfeited | shares | (807,413) |
Number of Restricted Stocks, Vested | shares | (1,702,964) |
Number of Restricted Stocks, Nonvested restricted stocks outstanding ending balance | shares | 14,658,824 |
Weighted Average Grant Date Fair Value, Nonvested restricted stocks outstanding begining balance | $ / shares | $ 4.25 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 4.77 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 4.85 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 3.77 |
Weighted Average Grant Date Fair Value, Nonvested restricted stocks outstanding ending balance | $ / shares | $ 4.77 |
SHARE-BASED COMPENSATION (Det75
SHARE-BASED COMPENSATION (Details Textual) ¥ / shares in Units, ¥ in Thousands | Jul. 31, 2012shares | Jul. 31, 2012 | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)$ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | Dec. 31, 2014$ / shares | Dec. 31, 2013CNY (¥)shares | Dec. 31, 2012shares | Mar. 31, 2015shares | Jul. 31, 2010shares | Sep. 30, 2009shares | Oct. 31, 2008shares | Jun. 30, 2007shares | Feb. 28, 2007shares |
Performance Condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Awards Assessment Of Performance And Market Period | 3 years | |||||||||||||
Performance Condition [Member] | Officer [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 85,292 | |||||||||||||
Market Condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Awards Assessment Of Performance And Market Period | 3 years | |||||||||||||
Share options [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 118,348 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | (per share) | ¥ 11.73 | $ 1.88 | ¥ 15.79 | $ 2.57 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | ¥ | ¥ 5,772 | $ 5,772 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 2 days | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,528,104 | 1,591,004 | 2,802,488 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | ¥ | ¥ 46,433 | ¥ 42,740 | ¥ 74,321 | |||||||||||
Share options [Member] | Performance Condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,475,366 | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants Adjusted | 869,232 | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Awards Assessment Of Performance And Market Period | 3 years | |||||||||||||
Nonvested restricted stock [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | ¥ | ¥ 391,421 | $ 391,421 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 5 years 5 months 8 days | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 13,931,961 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | ¥ | ¥ 69,130 | ¥ 59,475 | ¥ 7,089 | |||||||||||
Nonvested restricted stock [Member] | Performance Condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Awards Assessment Of Performance And Market Period | 3 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,059,977 | |||||||||||||
Nonvested restricted stock [Member] | Performance Condition [Member] | Officer [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 6,599,106 | |||||||||||||
Nonvested restricted stock [Member] | Market Condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 213,209 | |||||||||||||
Nonvested restricted stock [Member] | Performance or market condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants Adjusted | 1,557,408 | |||||||||||||
Second anniversary of the stated vesting commencement date [Member] | Share options [Member] | Performance Condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||
Second anniversary of the stated vesting commencement date [Member] | Nonvested restricted stock [Member] | Performance or market condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | 50.00% | ||||||||||||
Vesting ratably over the following two years [Member] | Share options [Member] | Performance Condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||||||||||
Vesting ratably over the following two years [Member] | Nonvested restricted stock [Member] | Performance or market condition [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | 50.00% | ||||||||||||
Incentive Award Plans [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |||||||||||||
Incentive Award Plans [Member] | Maximum [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||||||||
Incentive Award Plans [Member] | Share options [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants Cumulative | 24,574,737 | 24,574,737 | ||||||||||||
Incentive Award Plans [Member] | Nonvested restricted stock [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants Cumulative | 19,545,699 | 19,545,699 | ||||||||||||
Incentive Award Plans [Member] | Second anniversary of the stated vesting commencement date [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||
Incentive Award Plans [Member] | Vesting ratably over the following two years [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||||||||||
2007 Global Share Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 10,000,000 | |||||||||||||
2008 Global Share Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 7,000,000 | 3,000,000 | ||||||||||||
2009 Share Incentive Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 43,000,000 | 15,000,000 | 3,000,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2015$ / shares | Dec. 31, 2014CNY (¥)¥ / sharesshares | Dec. 31, 2013CNY (¥)¥ / sharesshares | |
EARNINGS PER SHARE | ||||
Net income attributable to ordinary shareholders - basic | ¥ | ¥ 436,600 | ¥ 307,348 | ¥ 279,858 | |
Net income attributable to ordinary shareholders - diluted | ¥ | ¥ 436,600 | ¥ 307,348 | ¥ 279,858 | |
Weighted average ordinary shares outstanding - basic | 250,533,204 | 248,957,645 | 245,187,348 | |
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method | 5,570,963 | 4,046,559 | 4,298,936 | |
Weighted average ordinary shares outstanding - diluted | 256,104,167 | 253,004,204 | 249,486,284 | |
Basic earnings per share (in RMB and USD per share) | (per share) | ¥ 1.74 | $ 0.27 | ¥ 1.23 | ¥ 1.14 |
Diluted earnings per share (in RMB and USD per share) | (per share) | ¥ 1.70 | $ 0.26 | ¥ 1.21 | ¥ 1.12 |
EARNINGS PER SHARE (Details 1)
EARNINGS PER SHARE (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Outstanding employee options and nonvested restricted stocks | 0 | 293,512 | 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Income tax | ||||
Current Tax | ¥ 246,678 | ¥ 155,496 | ¥ 127,439 | |
Deferred Tax | (50,149) | $ (7,742) | (42,391) | (22,619) |
Total | ¥ 196,529 | $ 30,339 | ¥ 113,105 | ¥ 104,820 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation between the effective income tax rate and the PRC statutory income tax rate | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Tax effect of other expenses that are not deductible in determining taxable profit | 3.00% | 2.00% | 3.00% |
Effect of different tax rate of group entities operating in other jurisdictions | 0.00% | 0.00% | (1.00%) |
Effect of change in valuation allowance | 5.00% | 3.00% | 3.00% |
Effect of tax holiday | (7.00%) | (3.00%) | (3.00%) |
Effect of cash dividends | 5.00% | 0.00% | 0.00% |
Effective tax rate | 31.00% | 27.00% | 27.00% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Holiday [Line Items] | |||
Aggregate amount | ¥ 41,288 | ¥ 9,131 | ¥ 12,721 |
Per share effect - basic (in RMB per share) | ¥ 0.16 | ¥ 0.04 | ¥ 0.05 |
Per share effect - diluted (in RMB per share) | ¥ 0.16 | ¥ 0.04 | ¥ 0.05 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - CNY (¥) ¥ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net loss carryforward | ¥ 158,910 | ¥ 113,333 |
Pre-opening expenses | 785 | 306 |
Deferred revenue | 72,914 | 62,977 |
Deferred rent | 5,316 | 4,684 |
Long-term assets | 27,341 | 8,460 |
Bad debt provision | 1,390 | 1,494 |
Accrual for customer loyalty program | 28,437 | 17,869 |
Accrued payroll | 2,791 | 2,462 |
Other accrued expenses | 850 | 4,457 |
Share-based compensation | 10,857 | 9,745 |
Others | 1,613 | 577 |
Valuation allowance | (92,527) | (62,868) |
Total deferred tax assets | 218,677 | 163,496 |
Deferred tax liabilities: | ||
Favorable lease | 30,641 | 23,545 |
Capitalized interest | 4,163 | 4,410 |
Unrealized gain for investment | 16,636 | 9,485 |
Others | 9,853 | 1,039 |
Total deferred tax liabilities | 61,293 | 38,479 |
Deferred tax assets are analyzed as: | ||
Current | 98,200 | 80,026 |
Non-Current | 120,477 | 83,470 |
Deferred Tax Assets, Net, Total | 218,677 | 163,496 |
Deferred tax liabilities are analyzed as: | ||
Current | 1,465 | 701 |
Non-current | 59,828 | 37,778 |
Deferred Tax Liabilities, Gross, Total | ¥ 61,293 | ¥ 38,479 |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Unrecognized Tax Benefits Roll Forward [Line Items] | |||
Balance | ¥ 8,345 | ¥ 7,122 | ¥ 4,148 |
Addition for tax positions | 6,410 | 1,223 | 2,974 |
Balance | ¥ 14,755 | ¥ 8,345 | ¥ 7,122 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | |
Income Tax Disclosure [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | |||||
Operating Loss Carryforwards | ¥ 635,640 | |||||||
Income Tax Withholding Tax Rate For Foreign Invested Non Resident Entity | 10.00% | |||||||
Income Tax Withholding Tax Rate For Foreign Invested Non Resident Entity With Parent Company Incorporated In Qualified Jurisdictions | 5.00% | |||||||
Undistributed Earnings of Domestic Subsidiaries | ¥ 1,223,689 | |||||||
Period Of Statute Of Limitations For Underpayment Of Taxes Due To Computational Errors | 3 years | |||||||
Period Of Statute Of Limitations For Underpayment Of Taxes More Than Specified Amount | 5 years | |||||||
Minimum Amount Of Underpayment Of Taxes For Statute Of Limitation To Be Extended To Five Years | ¥ 100 | |||||||
Period Of Statute Of Limitations For Transfer Pricing Issues | 10 years | |||||||
Income Tax Holiday, Description | two-year exemption and three-year 50% reduction starting from the first profit making year after absorbing all prior years tax losses. | |||||||
Unrecognized Tax Benefits, Ending Balance | ¥ 14,755 | ¥ 8,345 | ¥ 7,122 | ¥ 4,148 | ||||
Dividend Withholding Tax Accrued | 30,696 | |||||||
Valuation Allowance of Deferred Tax Assets [Member] | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Valuation Allowances and Reserves, Charged to Cost and Expense | 47,122 | 29,693 | 22,158 | |||||
Valuation Allowances and Reserves, Deductions | 15,508 | 18,421 | 9,984 | |||||
Valuation Allowances and Reserves, Write-off | ¥ 1,955 | ¥ 0 | ¥ 0 | |||||
Hanting Technology Suzhou Co Ltd [Member] | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Income Tax Rate Reduction For Qualified Enterprise | 50.00% | |||||||
Mengguang Information and Technology (Shanghai) Co., Ltd [Member] | PRC [Member] | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Income Tax Rate Reduction For Qualified Enterprise | 50.00% | |||||||
HONG KONG | China Lodging Holdings H K Limited [Member] | Starway Hotels (Hongkong) Limited [Member] | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | 16.50% | 16.50% | |||||
SINGAPORE | China Lodging Holdings Singapore Pte Ltd [Member] | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 17.00% | 17.00% | 17.00% | |||||
PRC | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
MAINLAND CHINA CONTRIBUTION P84
MAINLAND CHINA CONTRIBUTION PLAN (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
MAINLAND CHINA CONTRIBUTION PLAN | |||
Defined Contribution Plan, Cost Recognized | ¥ 182,321 | ¥ 143,419 | ¥ 119,015 |
RESTRICTED NET ASSETS (Details
RESTRICTED NET ASSETS (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Assets Disclosure [Line Items] | |||
Appropriation Of After Tax Profit To General Reserve Fund Required Percentage | 10.00% | ||
Appropriation Of After Tax Profit To General Reserve Fund Percentage Of Registered Capital Limit | 50.00% | ||
Amount Of Restricted Net Assets For Consolidated And Unconsolidated Subsidiaries Share Capital | ¥ 2,075,975 | ||
Retained Earnings, Appropriated | 209,782 | ¥ 105,604 | ¥ 64,957 |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | ¥ 2,285,757 |
RELATED PARTY TRANSACTIONS AN86
RELATED PARTY TRANSACTIONS AND BALANCES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) |
Related Party Transaction [Line Items] | |||
Due from Related Parties, Current | ¥ 16,157 | $ 2,494 | ¥ 16,293 |
Yibang [Member] | |||
Related Party Transaction [Line Items] | |||
Due from Related Parties, Current | ¥ 16,157 | ¥ 16,293 |
RELATED PARTY TRANSACTIONS AN87
RELATED PARTY TRANSACTIONS AND BALANCES (Details 1) - CNY (¥) ¥ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Due to Related Parties | ¥ 7,653 | ¥ 10,486 |
Ctrip [Member] | Hotel reservation services [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | 3,332 | 2,319 |
Ctrip [Member] | Starway acquisition [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | 4,084 | 8,167 |
Qianya [Member] | Hotel management services [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | ¥ 237 | ¥ 0 |
RELATED PARTY TRANSACTIONS AN88
RELATED PARTY TRANSACTIONS AND BALANCES (Details 2) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Ctrip [Member] | |||
Related Party Transaction [Line Items] | |||
Service fee expense | ¥ 17,740 | ¥ 19,235 | ¥ 17,128 |
Yibang [Member] | |||
Related Party Transaction [Line Items] | |||
Service fee | 593 | 527 | 199 |
Qianya [Member] | |||
Related Party Transaction [Line Items] | |||
Service fee expense | ¥ 417 | ¥ 0 | ¥ 0 |
RELATED PARTY TRANSACTIONS AN89
RELATED PARTY TRANSACTIONS AND BALANCES (Details Textual) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||
May. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Starway [Member] | |||||
Related Party Transaction [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 51.00% | |||
Payments to Acquire Businesses, Gross | ¥ 4,083 | ¥ 4,083 | ¥ 4,210 | ||
Business Combination, Consideration Transferred, Total | ¥ 16,460 | ||||
Sheen Star [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from Sale of Available-for-sale Securities, Total | ¥ 82,785 | ||||
Ctrip [Member] | Starway [Member] | |||||
Related Party Transaction [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | 49.00% | |||
Payments to Acquire Businesses, Gross | ¥ 17,292 | ||||
Business Combination, Consideration Transferred, Total | ¥ 16,460 |
COMMITMENTS AND CONTINGENCIES90
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Thousands | Dec. 31, 2015CNY (¥) |
Operating lease commitments | |
2,016 | ¥ 1,872,773 |
2,017 | 1,881,995 |
2,018 | 1,861,825 |
2,019 | 1,826,236 |
2,020 | 1,756,499 |
Thereafter | 10,585,970 |
Total | ¥ 19,785,298 |
COMMITMENTS AND CONTINGENCIES91
COMMITMENTS AND CONTINGENCIES (Details Textual) ¥ in Thousands | Dec. 31, 2015CNY (¥) |
Purchase commitments | |
Purchase Obligation, Due in Next Twelve Months | ¥ 12,062 |
SUBSEQUENT EVENT (Details Textu
SUBSEQUENT EVENT (Details Textual) - AccorHotels [Member] - Subsequent Event [Member] | 1 Months Ended |
Jan. 31, 2016shares | |
Subsequent Event [Line Items] | |
Equity Method Investment, Ownership Percentage | 29.30% |
Stock Issued During Period, Shares, Acquisitions | 24,895,543 |
Stock Issued Percentage For Acquisitions | 9.00% |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
SCHEDULE I FINANCIAL INFORMAT93
SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2013CNY (¥) | Dec. 31, 2012CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 1,237,838 | $ 191,089 | ¥ 808,865 | $ 124,867 | ¥ 397,435 | ¥ 449,844 |
Short-term investments | 533,215 | 82,314 | 26,615 | |||
Other current assets | 167,995 | 25,934 | 160,582 | |||
Total current assets | 2,961,978 | 457,251 | 1,596,664 | |||
Other assets | 195,446 | 30,172 | 197,233 | |||
Total assets | 7,693,521 | 1,187,675 | 6,182,906 | |||
Current liabilities: | ||||||
Short-term bank borrowing | 324,680 | 50,122 | 0 | |||
Salary and welfare payable | 210,955 | 32,566 | 186,051 | |||
Deferred revenue | 705,607 | 108,927 | 514,268 | |||
Dividends payable | 276,261 | 42,647 | 0 | |||
Amount due to related parties | 7,653 | 1,181 | 6,403 | |||
Accrued expenses and other current liabilities | 576,160 | 88,944 | 313,017 | |||
Total current liabilities | 2,790,938 | 430,846 | 1,720,761 | |||
Total liabilities | 4,252,773 | 656,515 | 2,964,193 | |||
Equity: | ||||||
Ordinary shares (US$0.0001 par value per share; 8,000,000,000 shares authorized; 250,747,255 and 253,978,323 shares issued as of December 31, 2014 and 2015, and 250,747,255 and 250,881,559 shares outstanding as of December 31, 2014 and 2015, respectively) | 186 | 29 | 184 | |||
Treasury shares (nil and 3,096,764 shares as of December 31 2014 and 2015, respectively) | (107,331) | (16,569) | 0 | |||
Additional paid-in capital | 2,470,099 | 381,318 | 2,381,568 | |||
Retained earnings | 1,007,559 | 155,540 | 847,220 | |||
Accumulated other comprehensive loss | 59,596 | 9,200 | (12,008) | |||
Total equity | 3,430,109 | 529,518 | 3,216,964 | |||
Total liabilities and equity | 7,693,521 | 1,187,675 | 6,182,906 | |||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 121,025 | 18,683 | 94,749 | $ 14,627 | ¥ 61,182 | ¥ 22,953 |
Short-term investments | 324,780 | 50,137 | 0 | |||
Other current assets | 2,573 | 397 | 4,185 | |||
Total current assets | 448,378 | 69,217 | 98,934 | |||
Other assets | 0 | 0 | 157 | |||
Investment in subsidiaries | 3,833,404 | 591,776 | 3,131,189 | |||
Total assets | 4,281,782 | 660,993 | 3,230,280 | |||
Current liabilities: | ||||||
Short-term bank borrowing | 324,680 | 50,122 | 0 | |||
Salary and welfare payable | 25 | 4 | 111 | |||
Deferred revenue | 0 | 0 | 364 | |||
Dividends payable | 276,261 | 42,647 | 0 | |||
Amount due to related parties | 222,402 | 34,333 | 0 | |||
Accrued expenses and other current liabilities | 28,305 | 4,369 | 12,841 | |||
Total current liabilities | 851,673 | 131,475 | 13,316 | |||
Total liabilities | 851,673 | 131,475 | 13,316 | |||
Equity: | ||||||
Ordinary shares (US$0.0001 par value per share; 8,000,000,000 shares authorized; 250,747,255 and 253,978,323 shares issued as of December 31, 2014 and 2015, and 250,747,255 and 250,881,559 shares outstanding as of December 31, 2014 and 2015, respectively) | 186 | 29 | 184 | |||
Treasury shares (nil and 3,096,764 shares as of December 31 2014 and 2015, respectively) | (107,331) | (16,569) | 0 | |||
Additional paid-in capital | 2,470,099 | 381,318 | 2,381,568 | |||
Retained earnings | 1,007,559 | 155,540 | 847,220 | |||
Accumulated other comprehensive loss | 59,596 | 9,200 | (12,008) | |||
Total equity | 3,430,109 | 529,518 | 3,216,964 | |||
Total liabilities and equity | ¥ 4,281,782 | $ 660,993 | ¥ 3,230,280 |
SCHEDULE I FINANCIAL INFORMAT94
SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY (Details) (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 8,000,000,000 | 8,000,000,000 |
Common Stock, Shares, Issued | 253,978,323 | 250,747,255 |
Common Stock, Shares, Outstanding | 250,881,559 | 250,747,255 |
Treasury Stock, Shares | 3,096,764 | |
Parent Company [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 8,000,000,000 | 8,000,000,000 |
Common Stock, Shares, Issued | 253,978,323 | 250,747,255 |
Common Stock, Shares, Outstanding | 250,881,559 | 250,747,255 |
Treasury Stock, Shares | 3,096,764 | 0 |
SCHEDULE I FINANCIAL INFORMAT95
SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Operating costs and expenses: | ||||
Selling and marketing expenses | ¥ 179,568 | $ 27,720 | ¥ 187,435 | ¥ 138,129 |
General and administrative expenses | 403,008 | 62,214 | 342,128 | 284,756 |
Total operating costs and expenses | 5,204,734 | 803,473 | 4,593,915 | 3,815,835 |
Loss from operations | 601,154 | 92,802 | 389,364 | 380,544 |
Interest income | 26,712 | 4,124 | 23,162 | 6,856 |
Interest expense | 3,854 | 595 | 1,533 | 813 |
Foreign exchange gain | 7,814 | 1,206 | (246) | 21 |
Net income attributable to China Lodging Group, Limited | 436,600 | 67,399 | 307,348 | 279,858 |
Other comprehensive income | ||||
Unrealized securities holding gains, net of tax of nil, 9,485 and 7,151 for 2013, 2014 and 2015 | 68,069 | 10,508 | 28,458 | |
Comprehensive income attributable to China Lodging Group, Limited | 508,204 | 78,453 | 334,724 | 278,882 |
Parent Company [Member] | ||||
Operating costs and expenses: | ||||
Selling and marketing expenses | 157 | 24 | 157 | 157 |
General and administrative expenses | 59,236 | 9,145 | 35,434 | 33,308 |
Total operating costs and expenses | 59,393 | 9,169 | 35,591 | 33,465 |
Loss from operations | (59,393) | (9,169) | (35,591) | (33,465) |
Interest income | 30 | 5 | 75 | 6 |
Interest expense | 3,198 | 494 | 0 | 0 |
Foreign exchange gain | 7,477 | 1,154 | 0 | 0 |
Other income, net | 2,488 | 384 | 2,419 | 2,438 |
Income in investment in subsidiaries | 489,196 | 75,519 | 340,445 | 310,879 |
Net income attributable to China Lodging Group, Limited | 436,600 | 67,399 | 307,348 | 279,858 |
Other comprehensive income | ||||
Unrealized securities holding gains, net of tax of nil, 9,485 and 7,151 for 2013, 2014 and 2015 | 68,069 | 10,508 | 28,458 | 0 |
Foreign currency translation adjustments, net of tax of nil for 2013, 2014 and 2015 | 3,535 | 546 | (1,082) | (976) |
Comprehensive income attributable to China Lodging Group, Limited | ¥ 508,204 | $ 78,453 | ¥ 334,724 | ¥ 278,882 |
SCHEDULE I FINANCIAL INFORMAT96
SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY (Details 1) (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | ¥ 7,151 | ¥ 9,485 | ¥ 0 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 | 0 |
Parent Company [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 7,151 | 9,485 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | ¥ 0 | ¥ 0 | ¥ 0 |
SCHEDULE I FINANCIAL INFORMAT97
SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Operating activities: | ||||
Net income | ¥ 439,380 | $ 67,828 | ¥ 302,391 | ¥ 283,695 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share-based compensation | 52,535 | 8,110 | 31,937 | 30,468 |
Changes in operating assets and liabilities: | ||||
Deferred revenue | 216,805 | 33,469 | 253,562 | 115,787 |
Other current assets | (15,518) | (2,395) | (42,369) | (26,400) |
Salary and welfare payable | 24,532 | 3,787 | 38,813 | 28,768 |
Accrued expenses and other current liabilities | 121,502 | 18,757 | 58,995 | 62,545 |
Net cash provided by operating activities | 1,749,673 | 270,101 | 1,454,015 | 1,070,169 |
Investing activities: | ||||
Purchases of short-term investments | (455,811) | (70,365) | (75,210) | 0 |
Net cash provided by (used in) investing activities | (1,550,357) | (239,333) | (1,063,186) | (1,152,248) |
Financing activities: | ||||
Net proceeds from issuance of ordinary shares upon exercise of option | 22,619 | 3,492 | 20,985 | 28,122 |
Payment of share repurchase | (107,331) | (16,569) | 0 | 0 |
Proceeds from short-term debt | 589,376 | 90,984 | 300,000 | 105,796 |
Repayment of short-term debt | (283,516) | (43,767) | (300,000) | (105,796) |
Net cash provided by financing activities | 232,281 | 35,859 | 21,683 | 30,646 |
Effect of exchange rate changes on cash and cash equivalents | (2,624) | (405) | (1,082) | (976) |
Net increase (decrease) in cash and cash equivalents | 428,973 | 66,222 | 411,430 | (52,409) |
Cash and cash equivalents at the beginning of the year | 808,865 | 124,867 | 397,435 | 449,844 |
Cash and cash equivalents at the end of the year | 1,237,838 | 191,089 | 808,865 | 397,435 |
Supplemental schedule of non-cash investing and financing activities: | ||||
Proceeds from issuance of ordinary shares upon exercise of option included in receivables | 1,727 | 267 | 1,185 | 1,318 |
Parent Company [Member] | ||||
Operating activities: | ||||
Net income | 436,600 | 67,399 | 307,348 | 279,858 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share-based compensation | 52,535 | 8,110 | 31,937 | 30,468 |
Income in investment in subsidiaries | (489,196) | (75,519) | (340,445) | (310,879) |
Changes in operating assets and liabilities: | ||||
Deferred revenue | (364) | (56) | (1,450) | (1,552) |
Other current assets | 2,312 | 357 | 1,477 | 915 |
Salary and welfare payable | (86) | (13) | 111 | 0 |
Accrued expenses and other current liabilities | 15,463 | 2,387 | 4,943 | 7,058 |
Net cash provided by operating activities | 17,264 | 2,665 | 3,921 | 5,868 |
Investing activities: | ||||
Investment in subsidiaries | (168,709) | (26,044) | 0 | 0 |
Receipt of investment in subsidiaries | 0 | 0 | 8,876 | 12,320 |
Purchases of short-term investments | (271,630) | (41,932) | 0 | 0 |
Net cash provided by (used in) investing activities | (440,339) | (67,976) | 8,876 | 12,320 |
Financing activities: | ||||
Net proceeds from issuance of ordinary shares upon exercise of option | 22,619 | 3,492 | 20,985 | 28,122 |
Payment of share repurchase | (107,331) | (16,569) | 0 | 0 |
Proceeds of advances from subsidiaries | 222,403 | 34,333 | 0 | 0 |
Proceeds from short-term debt | 489,376 | 75,547 | 0 | 0 |
Repayment of short-term debt | (183,516) | (28,330) | 0 | 0 |
Net cash provided by financing activities | 443,551 | 68,473 | 20,985 | 28,122 |
Effect of exchange rate changes on cash and cash equivalents | 5,800 | 894 | (215) | (8,081) |
Net increase (decrease) in cash and cash equivalents | 26,276 | 4,056 | 33,567 | 38,229 |
Cash and cash equivalents at the beginning of the year | 94,749 | 14,627 | 61,182 | 22,953 |
Cash and cash equivalents at the end of the year | 121,025 | 18,683 | 94,749 | 61,182 |
Supplemental schedule of non-cash investing and financing activities: | ||||
Proceeds from issuance of ordinary shares upon exercise of option included in receivables | ¥ 1,727 | $ 267 | ¥ 1,185 | ¥ 1,318 |
SCHEDULE II VALUATION AND QUA98
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts [Member] | |||
Allowance for doubtful accounts of accounts receivables and other receivables: | |||
Balance at Beginning of Year | ¥ 6,477 | ¥ 7,756 | ¥ 3,183 |
Charge to Costs and Expenses | 1,997 | 4,770 | 4,573 |
Write off | (2,415) | (6,049) | 0 |
Balance at End of Year | 6,059 | 6,477 | 7,756 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Allowance for doubtful accounts of accounts receivables and other receivables: | |||
Balance at Beginning of Year | 62,868 | 51,596 | 36,283 |
Charge to Costs and Expenses | 47,122 | 29,693 | 22,158 |
Addition Due to Acquisition | 0 | 0 | 3,139 |
Charge Taken Against Allowance | (15,508) | (18,421) | (9,984) |
Write off | (1,955) | 0 | 0 |
Balance at End of Year | ¥ 92,527 | ¥ 62,868 | ¥ 51,596 |