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Jul 16,2019

Huazhu Group Limited Announces Its Preliminary Results for Hotel Operation in the Second Quarter of 2019

  • Net revenue for 2019 Q2 is expected to increase by 13%-15% year-over-year, in-line with guidance;
  • Our hotel pipeline further accelerated to historical high of 1,553 at 2019 Q2.

SHANGHAI, China, July 16, 2019 (GLOBE NEWSWIRE) -- Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu”, or the “Company”), a leading and fast-growing multi-brand hotel group in China, today announced its preliminary results for the hotel operation in the second quarter ended June 30, 2019.

Hotel Development

  Number of hotels in operation   Number of rooms in operation
  Opened  Closed (1) Net added  As of    Net added  As of 
  in Q2 2019 in Q2 2019 in Q2 2019 June 30, 2019   in Q2 2019 June 30, 2019
Leased and owned hotels 8 (10 ) (2 ) 696   (587 ) 87,179
Manachised and franchised hotels 303 (32 ) 271   3,969   24,269   376,117
Total   311   (42 )   269     4,665     23,682     463,296
               
(1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q2 2019, 20 hotels were temporarily closed for brand upgrade. 

 

  As of June 30, 2019
  Number of hotels in operation Number of hotels in pipeline
Economy hotels 2,990 433
Leased and owned hotels 435 2
Manachised and franchised hotels 2,555 431
Midscale and upscale hotels 1,675 1,120
Leased and owned hotels 261 53
Manachised and franchised hotels 1,414 1,067
Total 4,665 1,553
     

Operating Metrics

  For the quarter ended  
  June 30, March 31, June 30, yoy
  2018 2019 2019 change
Average daily room rate  (in RMB)      
Leased and owned hotels 270   258   281   4.3 %
Manachised hotels 212   210   224   5.8 %
Franchised hotels 248   237   246   -0.7 %
Blended 226   221   236   4.4 %
Occupancy rate (as a percentage)      
Leased and owned hotels 91.4 % 83.6 % 89.4 % -1.9pp
Manachised hotels 89.8 % 80.5 % 87.1 % -2.8pp
Franchised hotels 78.7 % 68.6 % 75.1 % -3.6pp
Blended 89.6 % 80.6 % 86.9 % -2.7pp
RevPAR  (in RMB)        
Leased and owned hotels 246   216   252   2.1 %
Manachised hotels 190   169   195   2.5 %
Franchised hotels 195   162   185   -5.2 %
Blended 203   178   206   1.3 %
         

 

Business Update by Segment

Hotel breakdown by brand    
   
  Number of hotels in operation
  Net added  As of 
  in Q2 2019 June 30, 2019
Economy hotels 74   2,990
HanTing Hotel 28   2,331
Hi Inn 16   415
Elan Hotel 37   244
Orange Hotel(2) (7 ) 0
Midscale and upscale hotels 195   1,675
JI Hotel 55   666
Starway Hotel 35   265
Joya Hotel 0   6
Manxin Hotels & Resorts 7   35
HanTing Premium Hotel 38   129
Ibis Hotel 10   159
Ibis Styles Hotel 7   44
Mercure Hotel 7   52
Novotel Hotel 2   9
Grand Mercure 1   8
Orange Select 27   216
Crystal Orange 6   66
Blossom Hill 0   20
Total   269     4,665
(2) Orange Hotel was rebranded as Orange Select in Q2 2019.

 

Same-hotel operational data by segment                    
  Number of hotels in operation Same-hotel RevPAR   Same-hotel ADR   Same-hotel Occupancy  
  As of
June 30,
For the quarter ended
June 30,
  For the quarter ended
June 30,
  For the quarter ended
June 30,
 
  yoy
change
yoy
change
yoy
change
(p.p.)
 
  2018 2019 2018 2019 2018 2019 2018   2019  
Economy hotels 2,489 2,489 175 171 -2.0 % 185 187 0.9 % 94.3 % 91.6 % -2.7
Leased hotels 424 424 189 191 0.6 % 202 206 2.1 % 94.0 % 92.7 % -1.4
Manachised and franchised hotels 2,065 2,065 171 166 -2.7 % 181 182 0.6 % 94.4 % 91.3 % -3.0
Midscale and upscale hotels 788 788 278 272 -2.4 % 325 323 -0.7 % 85.5 % 84.1 % -1.4
Leased and owned hotels 179 179 346 334 -3.5 % 392 383 -2.2 % 88.5 % 87.3 % -1.2
Manachised and franchised hotels 609 609 251 247 -1.8 % 298 298 0.0 % 84.3 % 82,8 % -1.5
Total 3,277 3,277 206 202 -2.1 % 225 226 0.4 % 91.7 % 89.3 % -2.3
                               

About Huazhu Group Limited
Huazhu Group Limited is a leading hotel operator and franchisor in China. As of June 30, 2019, the Company had 4,665 hotels or 463,296 rooms in operation. With a primary focus on economy and midscale hotel segments, Huazhu’s brands include Hi Inn, Elan Hotel, HanTing Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel, Manxin Hotel, Joya Hotel, Orange Hotel Select, Crystal Orange Hotel and Blossom Hill. The Company also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in Pan-China region. The Company's business includes leased and owned, manachised and franchised models. Under the lease and ownership model, the Company directly operates hotels typically located on leased or owned properties. Under the manachise model, the Company manages manachised hotels through the on-site hotel managers it appoints and collects fees from franchisees. Under the franchise model, the Company provides training, reservation and support services to the franchised hotels and collects fees from franchisees but does not appoint on-site hotel managers. The Company applies a consistent standard and platform across all of its hotels. As of June 30, 2019, Huazhu Group operates 19 percent of its hotel rooms under lease and ownership model, 81 percent under manachise and franchise models.

For more information, please visit the Company’s website: http://ir.huazhu.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; the economic conditions of China; the regulatory environment in China; our ability to attract customers and leverage our brand; trends and competition in the lodging industry; the expected growth of the lodging market in China; and other factors and risks detailed in our filings with the Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project,” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results.

The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contact Information
Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com

 

Source: Huazhu Group Limited

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