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PROPERTY AND EQUIPMENT, NET
12 Months Ended
Dec. 31, 2021
PROPERTY AND EQUIPMENT, NET  
PROPERTY AND EQUIPMENT, NET

5.PROPERTY AND EQUIPMENT, NET

Property and equipment, net consist of the following:

As of December 31, 

    

2020

    

2021

Cost:

  

  

Buildings

 

247

 

305

Leasehold improvements

 

9,542

 

10,467

Furniture, fixtures and equipment

 

2,008

 

2,348

Motor vehicles

 

1

 

3

 

11,798

 

13,123

Less: Accumulated depreciation

 

5,764

 

6,845

 

6,034

 

6,278

Construction in progress

 

648

 

778

Property and equipment, net

 

6,682

 

7,056

Depreciation expense was RMB967, RMB1,219 and RMB1,352 for the years ended December 31, 2019, 2020 and 2021, respectively.

The Group occasionally demolishes certain leased hotels due to local government zoning requirements, which typically results in receiving compensation from the government.