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Oct 16,2019

Huazhu Group Limited Announces Preliminary Results for Hotel Operations  in the Third Quarter of 2019

  • Net revenue for 2019 Q3 is expected to increase by 10%-11% year-over-year, in line with guidance.
  • Our unopened hotel pipeline further accelerated to an historical high of 1,736 hotels as of September 30, 2019.

SHANGHAI, China, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu” or “our”), a leading and fast-growing multi-brand hotel group in China, today announced preliminary results for hotel operations in the third quarter ended September 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 Q3 2019 in Q3 2019 in Q3 2019 September 30, 2019   in Q3 2019 September 30, 2019
Leased and owned hotels 13 (12 ) 1 697   1,027 88,206
Manachised and franchised hotels 535 (50 ) 485 4,454   40,091 416,208
Total   548   (62 )   486   5,151     41,118   504,414
(1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q3 2019, 4 hotels were temporarily closed for brand upgrades.
               


  As of September 30, 2019
  Number of hotels in operation Unopened hotels in pipeline
Economy hotels 3,204 546
Leased and owned hotels 425 1
Manachised and franchised hotels 2,779 545
Midscale and upscale hotels 1,947 1,190
Leased and owned hotels 272 51
Manachised and franchised hotels 1,675 1,139
Total 5,151 1,736
     



Operating Metrics

  For the quarter ended  
  September 30, June 30, September 30, yoy
  2018  2019  2019  change
Average daily room rate  (in RMB)      
Leased and owned hotels 279   281   288   3.1 %
Manachised and franchised hotels 228   225   235   3.4 %
Blended 239   236   245   2.6 %
Occupancy rate (as a percentage)        
Leased and owned hotels 92.0 % 89.4 % 90.0 % -2.0 pp
Manachised and franchised hotels 90.4 % 86.3 % 87.2 % -3.2 pp
Blended 90.7 % 86.9 % 87.7 % -3.1 pp
RevPAR  (in RMB)        
Leased and owned hotels 257   252   259   0.8 %
Manachised and franchised hotels 206   194   205   -0.3 %
Blended 217   206   215   -0.8 %
         

Business Update by Segment

Hotel portfolio by brand  
     
  Number of hotels in operation
  Net added  As of 
  in Q3 2019 September 30, 2019
Economy hotels 214 3,204
HanTing Hotel 50 2,381
Hi Inn 35 450
Elan Hotel 129 373
Midscale and upscale hotels 272 1,947
HanTing Premium Hotel 51 180
Ibis Hotel 20 179
Ibis Styles Hotel 6 50
Starway Hotel 52 317
JI Hotel 93 759
Orange Select Hotel 17 233
Crystal Orange Hotel 11 77
Manxin Hotels & Resorts 4 39
Madison Hotel 5 5
Mercure Hotel 11 63
Novotel Hotel 0 9
Grand Madison Hotel 1 1
Joya Hotel 0 6
Vue Hotels & Resorts 1 21
Grand Mercure Hotel 0 8
Total   486   5,151
     


                         
Same-hotel operational data by segment                  
  Number of hotels Same-hotel RevPAR Same-hotel ADR Same-hotel Occupancy  
  As of
September 30,
For the quarter ended
yoy For the quarter ended
yoy For the quarter ended
yoy  
  September 30, change  September 30, change  September 30,   change  
  2018 2019 2018 2019   2018 2019   2018   2019     (p.p.)  
Economy hotels 2,500 2,500 186 179 -3.7 % 196 194 -0.7 % 95.2 % 92.2 % -3.0  
Leased and owned hotels 414 414 200 197 -1.6 % 211 212 0.6 % 95.0 % 92.9 % -2.0  
Manachised and franchised hotels 2,086 2,086 182 175 -4.3 % 192 190 -1.0 % 95.3 % 92.1 % -3.2  
Midscale and upscale hotels 861 861 289 278 -3.9 % 332 325 -2.2 % 87.1 % 85.6 % -1.5  
Leased and owned hotels 184 184 355 337 -5.3 % 396 382 -3.5 % 89.8 % 88.1 % -1.7  
Manachised and franchised hotels 677 677 265 257 -3.2 % 308 303 -1.5 % 86.1 % 84.7 % -1.5  
Total 3,361 3,361 219 211 -3.8 % 236 234 -1.1 % 92.6 % 90.1 % -2.5  
                         


About Huazhu Group Limited

Huazhu Group Limited is a leading hotel operator and franchisor. As of September 30, 2019, Huazhu operated 5,151 hotels with 504,414 rooms in operation. Huazhu’s brands include Hi Inn, Elan Hotel, HanTing Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel, Orange Hotel Select, Crystal Orange Hotel, Manxin Hotels & Resorts, Joya Hotel, and Vue Hotels & Resorts. Huazhu also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in the pan-China region.

Huazhu’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, Huazhu directly operates hotels typically located on leased or owned properties. Under the manachise model, Huazhu manages manachised hotels through the on-site hotel managers Huazhu appoints and collects fees from franchisees. Under the franchise model, Huazhu provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. Huazhu applies a consistent standard and platform across all of its hotels. As of September 30, 2019, Huazhu operates 17 percent of its hotel rooms under lease and ownership model, and 83 percent under manachise and franchise models.

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

Safe Harbor Statement Under the U.S. 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 and retain customers and leverage our brands; trends and competition in the lodging industry; the expected growth of demand for lodging in China; and other factors and risks detailed in our filings with the U.S. 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.

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

Source: Huazhu Group Limited

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