H World Group Limited Announces Preliminary Results for Hotel Operations in the Second Quarter of 2022


SHANGHAI, China, July 20, 2022 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”), a world-leading hotel group, today announced preliminary results for hotel operations in the second quarter (“Q2 2022”) ended June 30, 2022.

COVID-19 update
For our Legacy-Huazhu business, the large-scale outbreak of Omicron variant in China since early-March 2022 led to massive lockdown in various cities and sharp decline in the demand for both business and leisure travel. As a result, our RevPAR in Q2 2022 only recovered to 69% of the 2019 level. Breaking down into each month, April and May 2022 were the hardest-hit with RevPAR only having recovered to 53% and 65% of the 2019 levels respectively. However, RevPAR recovery improved in June 2022 to 86% of the 2019 level due to gradual lift of lockdown since late May 2022. In addition, if we consider the impacts of requisitioned hotels, our RevPAR recovery in Q2 2022 would have been 75% of the 2019 level.

Steigenberger Hotels AG and its subsidiaries (“DH”, or “Legacy-DH”) have seen an accelerating RevPAR recovery in Q2 2022. While RevPAR in March 2022 was 35% lower than the 2019 level, June 2022 RevPAR was only 1% behind that of 2019. However, against the background of surging inflation in Europe and the resulting substantial increase in costs as well as uncertainties about the future development of COVID-19 and energy supplies, DH has been focusing on cash flow improvement measures. As a consequence, DH will continue to focus on efficiency improvements, re-negotiation of lease contracts, and personnel cost optimization.

Operating Results: Legacy-Huazhu(1)
 Number of hotels  Number of rooms
in Q2 2022
Closed (2)
in Q2 2022
Net added
in Q2 2022
As of
June 30, 2022 (3)
 As of
June 30, 2022
Leased and owned hotels5(12)(7)646 91,171
Manachised and franchised hotels264(74)190 7,405 657,771
Total269(86)183 8,051 748,942
(1)   Legacy-Huazhu refers to H world and its subsidiaries, excluding DH.
(2)  The reasons for hotel closures mainly included non-compliance with our brand standards, operating losses, and property-related issues. In Q2 2022, we temporarily closed 7 hotels for brand upgrade and business model change purposes.
(3)   As of June 30, 2022,645 hotels were requisitioned by governmental authorities.

 As of June 30, 2022
 Number of hotels Unopened hotels in pipeline
Economy hotels4,859974
Leased and owned hotels3811
Manachised and franchised hotels4,478973
Midscale and upscale hotels3,1921,225
Leased and owned hotels26519
Manachised and franchised hotels2,9271,206

Operational hotels excluding hotels under requisition(4)
 For the quarter ended 
 June 30,March 31,June 30,yoy
 2021 2022 2022 change
Average daily room rate (in RMB)   
Leased and owned hotels311 263 243 -21.7%
Manachised and franchised hotels246 218 215 -12.8%
Blended255 224 218 -14.5%
Occupancy Rate (as a percentage)   
Leased and owned hotels81.1%56.7%62.9%-18.1p.p.
Manachised and franchised hotels82.5%59.6%64.9%-17.6p.p.
RevPAR (in RMB)    
Leased and owned hotels252 149 153 -39.2%
Manachised and franchised hotels203 130 139 -31.4%
Blended210 132 141 -32.9%

 For the quarter ended
 June 30,June 30,yoy
Average daily room rate (in RMB)  
Leased and owned hotels281 243 -13.5%
Manachised and franchised hotels225 215 -4.7%
Blended236 218 -7.8%
Occupancy Rate (as a percentage)  
Leased and owned hotels89.4%62.9%-26.5p.p.
Manachised and franchised hotels86.3%64.9%-21.4p.p.
RevPAR (in RMB)   
Leased and owned hotels252 153 -39.2%
Manachised and franchised hotels194 139 -28.4%
Blended206 141 -31.4%
(4)   If including hotels under requisition, RevPAR in Q2 2022 would have been 75% of the 2019 level.

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
June 30,
For the quarter yoyFor the quarter yoyFor the quarter yoy
June 30,
June 30,
June 30,
 2021202220212022 20212022 2021 2022 (p.p.)
Economy hotels31273127172112-34.8%197166-16.0%87.2%67.7%-19.5
Leased and owned hotels350350193121-37.3%229177-22.7%84.3%68.4%-15.9
Manachised and franchised hotels27772777168110-34.3%191163-14.6%87.7%67.5%-20.2
Midscale and upscale hotels17851785275173-37.2%335281-16.4%81.9%61.5%-20.4
Leased and owned hotels203203323190-41.1%414332-19.8%78.0%57.3%-20.7
Manachised and franchised hotels15821582266169-36.3%322272-15.6%82.7%62.3%-20.3

 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
 As of
June 30,
For the quarter
June 30,
For the quarter
June 30,
For the quarter
June 30,
 2019202220192022 20192022 2019 2022 (p.p.)
Economy hotels18881888182110-39.4%195164-15.8%93.1%67.0%-26.1
Leased and owned hotels334334204119-41.8%218175-20.0%93.6%68.1%-25.5
Manachised and franchised hotels15541554176108-38.7%189161-14.5%93.0%66.7%-26.3
Midscale and upscale hotels773773283165-41.5%333279-16.3%84.8%59.3%-25.5
Leased and owned hotels155155348170-51.0%401312-22.3%86.6%54.7%-31.9
Manachised and franchised hotels618618261164-37.3%310269-13.2%84.2%60.8%-23.4

Operating Results: Legacy-DH(5)
 Number of hotels Number of rooms Unopened hotels in pipeline
in Q2 2022
in Q2 2022
Net added
in Q2 2022
As of
June 30, 2022(6)


As of
June 30,2022


As of
June 30,2022
Leased hotels2-279 14,939 25
Manachised and franchised hotels3-346 10,017 12
Total5-5125 24,956 37
(5)   Legacy-DH refers to DH.
(6)   As of June 30, 2022, a total of 3 hotels were temporarily closed. 1 hotel was closed for renovation and 1 hotel was closed due to flood damage. Additionally, 1 hotel was temporarily closed due to extensive hotel refurbishment.

 For the quarter ended 
 June 30,March 31,June 30,yoy
 2021 2022 2022 change
Average daily room rate (in EUR)    
Leased hotels85.2 90.0 112.6 32.2%
Manachised and franchised hotels77.9 85.5 106.7 37.0%
Blended81.5 88.0 110.4 35.5%
Occupancy rate (as a percentage)    
Leased hotels20.0%34.1%61.2%+41.2 p.p.
Managed and franchised hotels30.8%44.0%57.9%+27.1 p.p.
Blended24.4%38.0%59.8%+35.4 p.p.
RevPAR (in EUR)    
Leased hotels17.0 30.7 68.9 305.3%
Managed and franchised hotels24.0 37.6 61.8 157.5%
Blended19.8 33.4 66.0 233.3%

Hotel Portfolio by Brand
 As of June 30, 2022
 HotelsRoomsUnopened hotels
 in operationin pipeline
Economy hotels4,874384,177985
HanTing Hotel3,124277,284626
Hi Inn45824,036120
Ni Hao Hotel1067,503188
Elan Hotel95250,9107
Ibis Hotel21922,73433
Zleep Hotels151,71011
Midscale hotels2,666291,349949
Ibis Styles Hotel848,67913
Starway Hotel55744,683185
JI Hotel1,515180,847528
Orange Hotel47952,168215
CitiGO Hotel314,9728
Upper midscale hotels49472,304244
Crystal Orange Hotel15520,63956
Manxin Hotel999,43252
Madison Hotel436,34655
Mercure Hotel13122,53343
Novotel Hotel154,03214
Upscale hotels11820,36751
Jaz in the City35871
Joya Hotel81,386-
Blossom House391,88828
Grand Mercure Hotel71,4855
Steigenberger Hotels & Resorts(8)5313,7109
MAXX (9)81,3118
Luxury hotels152,3262
Steigenberger Icon(10)91,8471
Song Hotels64791
Other hotels(11)93,3755
(7)   As of June 30, 2022, 2 operational hotels and 9 pipeline hotels of IntercityHotel were in China.
(8)   As of June 30, 2022, 11 operational hotels and 2 pipeline hotels of Steigenberger Hotels & Resorts were in China.
(9)   As of June 30, 2022, 2 operational hotels and 8 pipeline hotels of MAXX were in China.
(10) As of June 30, 2022, 3 operational hotels of Steigenberger Icon were in China.
(11) Other hotels include other partner hotels and other hotel brands in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House).

About H World Group Limited
Originated in China, H World Group Limited is a world-leading hotel group. As of June 30, 2022, H World operated 8,176 hotels with 773,898 rooms in operation in 17 countries. H World’s brands include Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, Ni Hao Hotel, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song Hotels. In addition, H World 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.

H World’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, H World directly operates hotels typically located on leased or owned properties. Under the manachise model, H World manages manachised hotels through the on-site hotel managers that H World appoints, and H World collects fees from franchisees. Under the franchise model, H World provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. H World applies a consistent standard and platform across all of its hotels. As of June 30, 2022, H World operates 14 percent of its hotel rooms under lease and ownership model, and 86 percent under manachise and franchise models.

For more information, please visit H World’s website: https://ir.hworld.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; 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.

H World 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
H World Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@huazhu.com

Search Investor Relations