China Lodging Group continues to implement its aggressive growth strategy with six brands ranging from the economy to the midscale and upscale segments.

　　China Lodging Group continues to implement its aggressive growth strategy with six brands ranging from the economy to the midscale and upscale segments. During an earnings call Tuesday with analysts, company executives said the company should exceed its forecast of 400 hotel openings this year, with the same number of openings expected in 2014.

　　During the third quarter, China Lodging opened 24 leased and operated hotels and 98 manachised (franchised-and-managed) properties. As of 30 September, the company had 1,341 hotels comprising 144,494 rooms.

　　"Manachised hotels have become our main growth driver,” Qi Ji, founder and CEO, said through a translator. “We expect about 75% of hotels opened this year will be on the manachised model, which is higher than 50% in 2011. In this way, we are more resilient to the pressure from cost inflation and economic surprises.”

　　To underscore its commitment to growth and the introduction of new brands, China Lodging named Jenny Zhang as chief strategy officer, a post she assumes on top of her role as CFO. Ji said Zhang will oversee development of the company’s “early stage brands”—Hi Inn, Starway, Manxin and Joya—as well as lead efforts to create new brands.

　　Approximately 80 hotels will open this year under one of the new brands, up from 16 in 2011, and the new flags account for 115 of the 455 properties in China Lodging’s development pipeline. Zhang said the first upscale Manxin and Joya hotels are under construction, with openings scheduled for later this year or early in 2014.

　　Last month, the company bought a stake in China Quanjude Group, an operator of 102 restaurants under four brands throughout the country. During the call, Ji said the investment doesn’t represent a change in direction for the company.

　　"It represents an extension of our core hotel business, but it is basically a financial investment (for us),” he said. “We consider it to be a one-time transaction.”

　　Ji said while the company continues to explore new opportunities, its main focus will remain on its two largest brands: Hanting Hotel in the economy segment and Ji Hotel in the midscale tier.

　　Its midscale Starway brand is largely franchised, and Qi said the company will use it as a way to consolidate existing 3- and 4-star hotels in the market. Likewise, Hi Inn, a lower-priced economy brand, will also be a conversion vehicle. According to Zhang, the company intends to open 45 to 55 Ji Hotels and 60 to 80 Hi Inns in 2014.

　　Third-quarter revenue per available room was 175 Chinese yuan ($28.73), down from 178 yuan ($29.22) during the same quarter last year. Occupancy for the quarter was 94.1%, down from 97.4% last year, while average daily rate increased 1.5% to 186 yuan ($30.54).

　　"The increase in same-store ADR was driven by price increases designed to enhance yields, while the decrease in same-hotel occupancy rates was mainly due to disrupted business traveling arrangements as a result of the complicated national holiday schedule in September,” said Yunhang Xie, COO.

　　Company officials said weak results in September were offset by strong leisure demand in July and August. RevPAR was up 2% in July and 3% in August, with similar results recorded in October.