Washington, D.C. 20549

Form 6-K


For the month of April, 2020

Commission File Number: 001-34656 

Huazhu Group Limited
(Translation of registrant's name into English)

No. 2266 Hongqiao Road
Changning District
Shanghai 200336
People's Republic of China
(86) 21 6195-2011
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ X ]      Form 40-F [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (1):    

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (7):    


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  Huazhu Group Limited    
Date: April 24, 2020 By: /s/ Qi Ji
  Name: Qi Ji
  Title: Executive Chairman of the Board of Directors, Chief Executive Officer


Exhibit Number Description

Exhibit 99.1

 Huazhu Group Limited Announces Leverage Covenant Waiver for Existing Syndication Loan and Preliminary Results for Hotel Operations in the First Quarter of 2020




Huazhu Group Limited Announces Leverage Covenant Waiver for Existing Syndication Loan and Preliminary Results for Hotel Operations in the First Quarter of 2020

SHANGHAI, China, April 23, 2020 (GLOBE NEWSWIRE) -- Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu”, “we” or “our”), a world-leading hotel group, today announced leverage covenant waiver for existing syndication loan and preliminary results for hotel operations in the first quarter ended March 31, 2020. Upon the completion of Deutsche Hospitality (“DH”) on January 2, 2020, we added 5 new hotel brands, including Steigenberger Hotels & Resorts, Maxx by Steigenberger, Jaz in the City, Intercity Hotel and Zleep Hotel. In this press release, we provide separate operating results for Legacy-Huazhu and Legacy-DH.

Leverage Covenant Waiver for Existing Syndication Loan
On April 17, 2020, our syndication banks approved to release Huazhu from the original six-month-tested financial covenants for a period up to June 30, 2021, subject to the satisfaction of certain amended covenants. The 3-year syndication loan consists of USD500 million and EUR440 million, due in December 2022. The amended covenants mainly include: (1) minimum EBITDA requirement of RMB1 billion for the second half of 2020; (2) net asset value should be more than zero; and (3) no cash dividend during the waiver period.

COVID-19 Impact in Q1 2020
China, where COVID-19 first started to have an impact in late January, has experienced steadily improving trends. Domestic travel is gradually rebuilding with eased travel restrictions and national policy for resuming production and work. The number of our temporarily closed hotels declined from the peak of 2,310 hotels in mid-February down to 369 hotels as of March 31, 2020. During Q1 2020, the governmental authorities requisitioned accumulatively 610 Huazhu hotels (2 million room nights, 12% of which were from our leased hotels) at various locations and periods for medical support workers and quarantine purposes. As of March 31, 2020, Huazhu had 374 hotels under governmental requisition.

Since the COVID-19 outbreak in Europe in March, DH has temporarily closed its hotels. 85 DH hotels were temporarily closed as of March 31, 2020, including 49 leased hotels and 36 manachised and franchised hotels.

Excluding the addition of DH, net revenues for Q1 2020 are expected to decline 45% to 47% (not fully reflecting the revenues from our hotels under governmental requisition) year-over-year. We don’t recognize the revenues from our hotels under governmental requisition until the settlement from governmental authorities. Including the revenue contribution from DH, net revenues for Q1 2020 are expected to decline 14% to 16% year-over-year.

Heading into Q2 2020, more business and leisure travel demand continues to recover in China. We are now accelerating new hotel openings and signings of new franchisees to help us keep on track toward our 2020 growth target.

Operating Results: Legacy-Huazhu

 Number of hotels  Number of rooms
in Q1 2020
Closed (1)
in Q1 2020
Net added
in Q1 2020
As of 
March 31, 2020
 As of 
March 31, 2020
Leased and owned hotels10(9)1689 88,355
Manachised and franchised hotels286(67)2195,149 464,007
Total296(76)2205,838 552,362
(1)  The reasons for hotel closures mainly include non-compliance to brand standards, operating losses, and property-related issues. In Q1 2020, we had 14 hotels closed for brand upgrade and business model change purposes

 As of March 31, 2020
 Number of hotels Unopened hotels in pipeline
Economy hotels3,9921,128
Leased and owned hotels4606
Manachised and franchised hotels3,5321,122
Midscale and upscale hotels1,8461,206
Leased and owned hotels22929
Manachised and franchised hotels1,6171,177

All hotels (excluding hotels under requisition) 
 For the quarter ended  
 March 31,December 31,March 31,yoy 
 2019 2019 2020 change 
Average daily room rate (in RMB)     
Leased and owned hotels258 277 211 -18.4%  
Manachised and franchised hotels211 223 184 -12.8%  
Blended221 232 189 -14.6%  
Occupancy rate (as a percentage)     
Leased and owned hotels83.6% 84.7% 40.3% -43.3p.p.  
Manachised and franchised hotels79.8% 81.6% 39.4% -40.4p.p.  
Blended80.6% 82.2% 39.6% -41.0p.p.  
RevPAR (in RMB)     
Leased and owned hotels216 235 85 -60.6%  
Manachised and franchised hotels169 182 73 -56.9%  
Blended178 191 75 -58.1%  

Operational hotels (excluding hotels under requisition, hotels temporarily closed)
 For the quarter ended 
 March 31,December 31,March 31,yoy
 2019 2019 2020 change
Average daily room rate (in RMB)    
Leased and owned hotels258 277 211 -18.4% 
Manachised and franchised hotels211 223 184 -12.8% 
Blended221 232 189 -14.6% 
Occupancy rate (as a percentage)    
Leased and owned hotels83.6% 84.7% 43.8% -39.8p.p. 
Manachised and franchised hotels79.8% 81.6% 47.4% -32.5p.p. 
Blended80.6% 82.2% 46.7% -33.9p.p. 
RevPAR (in RMB)    
Leased and owned hotels216 235 92 -57.2% 
Manachised and franchised hotels169 182 87 -48.3% 
Blended178 191 88 -50.5% 

Same-hotel operational data by class        
Mature hotels in operation for more than 18 months (excluding hotels under requisition)
 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
 As of
For the quarter ended 
For the quarter ended 
For the quarter ended
 March 31,March 31,change  March 31,change  March 31,  change
 2019202020192020 20192020 2019 2020   (p.p.)
Economy hotels2,421 2,421 155 76-50.6% 179 150-16.2%86.3%50.9%-35.4
Leased and owned hotels411 411 173 78-55.2% 197 160-18.8%87.8%48.5%-39.3
Manachised and franchised hotels2,010 2,010 150 76-49.2% 174 147-15.4%85.9%51.6%-34.3
Midscale and upscale hotels 850 850 247 108-56.2% 320 259-18.9%77.3%41.7%-35.5
Leased and owned hotels173 173 299 112-62.7% 378 291-23.1%79.1%38.3%-40.8
Manachised and franchised hotels677 677 229 107-53.4% 299 248-17.0%76.6%43.0%-33.6
Total3,271 3,271 184 87-52.8% 220 180-17.9%83.5%48.0%-35.5

Operating Results: Legacy-DH

 Number of hotels Number of
 Unopened hotels
in pipeline
in Q1 2020
in Q1 2020
Net added
in Q1 2020
As of 
March 31, 2020

As of 
March 31, 2020

As of
March 31, 2020
Leased hotels3(2)1 67 12,327 28
Manachised and franchised hotels2(7)(5)48 10,799 13
Total5(9)(4)115 23,126 41
 For the quarter ended  
 March 31,December 31,March 31,yoy 
Average daily room rate (in EUR)     
Leased hotels104 105 97 -6.9% 
Manachised and franchised hotels83 88 80 -4.4% 
Blended95 97 89 -5.9% 
Occupancy rate (as a percentage)     
Leased hotels64.8%72.8%52.6%-12.2p.p. 
Manachised and franchised hotels58.6%65.0%50.4%-8.2p.p. 
RevPAR (in EUR)     
Leased hotels67 76 51 -24.4% 
Manachised and franchised hotels49 57 40 -17.7% 
Blended59 67 46 -21.6% 

DH hotels by region

 Number of hotels
 As of March 31, 2020
 AllLeased Manachised and franchised
North Africa17017

Hotel Portfolio by Brand
Huazhu has realigned our brands for accelerated quality growth. During 2020: (1) we have reclassified our Ibis hotels as economy hotels; (2) we have consolidated HanTing Premium to HanTing; and (3) we have consolidated Grand Madison to Madison.

 As of March 31, 2020
 HotelsRoomsUnopened hotels
 in operationin pipeline
Economy hotels4,004336,0041,138
HanTing Hotel2,630245,171503
Hi Inn46426,956130
Elan Hotel71342,375424
Ibis Hotel18520,25471
Zleep Hotel121,24810
Midscale and upscale hotels1,949239,4841,237
Ibis Styles Hotel597,12033
Starway Hotel36731,616281
JI Hotel885111,205469
Orange Hotel25529,199164
Crystal Orange Hotel9512,76063
Manxin Hotel524,70235
Madison Hotel151,93328
Mercure Hotel7112,73381
Novotel Hotel92,81813
Joya Hotel81,4074
Blossom Hill Hotels & Resorts2483225
Grand Mercure Hotel61,28110
Steigenberger Hotels & Resorts5011,9098
Intercity Hotel427,53719
Maxx by Steigenberger57771
Jaz in the City24242
Other partner hotels41,2311

About Huazhu Group Limited
Originated in China, Huazhu Group Limited is a world-leading hotel operator and franchisor. As of March 31, 2020, Huazhu operated 5,953 hotels with 575,488 rooms in operation in 15 countries. Huazhu’s brands include Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, and Blossom Hill Hotels & Resorts. Upon the completion of Deutsche Hospitality acquisition on January 2, 2020, Huazhu added 5 brands to our portfolio, including Steigenberger Hotels & Resorts, Maxx by Steigenberger, Jaz in the City, Intercity Hotel and Zleep Hotel. In addition, 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 March 31, 2020, 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; the regulatory environment; 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; 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