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RELATED PARTY TRANSACTIONS AND BALANCES

12 Months Ended

Dec. 31, 2021

RELATED PARTY TRANSACTIONS AND BALANCES

RELATED PARTY TRANSACTIONS AND BALANCES

20.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 mainly act as service providers and service recipients to the Group. The Group is not obligated to provide any type of financial support to these related parties.

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​	​	​	​	​
Related Party		Nature of the Party		Relationship with the Group
Trip.com Group Limited (“Trip.com”)		Online travel services provider		Mr. Qi Ji is a director
Sheen Star Group Limited (“Sheen Star”)		Investment holding company		Equity method investee of the Group, controlled by Mr. Qi Ji
Accor Hotels (“Accor”)		Hotel Group		Shareholder of the Group
China Cjia Group Limited (“Cjia Group”)		Apartment Management Group		Equity method investee of the Group
Shanghai CREATER Industrial Co., Ltd. (“CREATER”)		Staged office space company		Equity method investee of the Group
Shanghai Zhuchuang Enterprise Management Co., Ltd. (“Zhuchuang”)		Staged office space company		Equity method investee of the Group
China Hospitality JV, Ltd. (“China Hospitality JV”)		Property management company		Equity method investee of the Group
Smart Lodging Group (Cayman) Limited(“Smart Lodging”)		Hotel chain		Equity method investee of the Group
Shanghai Lianquan Hotel Management Co., Ltd. (“Lianquan”)		Hotel management company		Equity method investee of the Group
Suzhou Huali Jinshi Construction Decoration Co., Ltd. (“Huali Jinshi”)	​	Building decoration company	​	Equity method investee of the Group
Shenzhen Hitone Investment Fund Partnership (LLP) ( “Hitone”)	​	Fund	​	Equity method investee of the Group

​

CREATER ceased to be related parties of the Group from August 2019.

Accor ceased to be related parties of the Group from December 2021.

(a) Related party balances

Amounts due from related parties were mainly comprised of shareholder loans to Sheen Star, Cjia Group, Zhuchuang and Lianquan, which are short-term in nature and mainly payable on demand, service fee and room charges withheld by Trip.com. As the Group adopted ASU 2016-13 on January 1, 2020 utilizing the modified retrospective approach, the Group recorded credit losses of RMB18 and RMB17 for the years ended December 31, 2020 and 2021.

​

​	​	​	​	​
​	​	As of December 31,
​		2020		2021
Sheen Star		52		33
Zhuchuang		27		27
Trip.com		22		17
Cjia Group		22		29
Accor		1		—
Lianquan		58		49
Others		14		12
Allowance for expected credit losses	​	(18)	​	(17)
Total		178		150

​

Amounts due to related parties were mainly comprised of payables for brand use fee, reservation fee and other service fee to Trip.com and Accor, acquisition consideration, consultation fee to and cash received on behalf of Cjia Group and payables for construction service fee to Huali Jinshi, which are short-term in nature and payable on demand.
​

​

​	​	​	​	​
​	​	As of December 31,
​		2020		2021
Trip.com	​	48	​	44
Accor	​	8	​	—
Cjia Group	​	42	​	101
Huali Jinshi	​	29	​	47
Others	​	5	​	5
Total	​	132	​	197

​

(b) Related party transactions

During the years ended December 31, 2019, 2020 and 2021, significant related party transactions were as follows:

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​	​	​	​	​	​	​
​	​	Years Ended December 31,
​		2019		2020		2021
Commission expenses to Trip.com	​	72		78		99
Lease expenses to Trip.com	​	18		18		19
Lease expenses to Cjia Group	​	—	​	—	​	12
Service fee to Huali Jinshi	​	99	​	41	​	42
Service fee to Cjia Group	​	6	​	17	​	—
Brand use fee, reservation fee and other related service fee to Accor	​	28		17		22
Goods sold and service provided to Cjia Group	​	21	​	18		11
Early termination compensation of sublease to Cjia Group	​	—	​	8	​	—
Loan payment to Smart Lodging	​	30	​	—		—
Loan payment to Lianquan	​	32		—		—
Loan payment to Hitone	​	—	​	—	​	5
Service fee from Trip.com	​	41	​	66	​	62
Service fee from Accor	​	9	​	3	​	3
Service fee from China Hospitality JV	​	6	​	1	​	2
Service fee from Sheen Star	​	4	​	4	​	5
Sublease income from Lianquan	​	7	​	12	​	10
Sublease income from Cjia Group	​	14	​	9	​	6
Early termination compensation of franchise agreement from China Hospitality JV	​	—	​	26	​	—
Purchase of property and equipment from Cjia Group	​	—	​	11	​	—
Interest income from Sheen Star	​	8	​	1	​	0
Interest income from CREATER	​	6	​	—	​	—
Business acquisition of CitiGO from Cjia Group	​	—	​	—	​	783
Business acquisition of one individual company from Cjia Group	​	—	​	—	​	51

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- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-URI http://asc.fasb.org/topic&trid=2122745

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

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