Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2019

14/01/2020
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SHANGHAI, China, Jan. 14, 2020 (GLOBE NEWSWIRE) -- Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu” or “our”), a leading and fast-growing hotel group, today announced preliminary results for hotel operations in the fourth quarter and the full year ended December 31, 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 Q4 2019 in Q4 2019 in Q4 2019 December 31, 2019 　 in Q4 2019 December 31, 2019  
Leased and owned hotels 11 (20 ) (9 ) 688   (741 ) 87,465  
Manachised and franchised hotels 619 (143 ) 476   4,930   33,203   449,411  
Total 630 (163 ) 467   5,618   32,462   536,876  
                       
(1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q4 2019, 56 hotels were temporarily closed for brand upgrade and business model change purposes.  
 


　 As of December 31, 2019
　 Number of hotels in operation Unopened hotels in pipeline
Economy hotels 3,485 826
Leased and owned hotels 415 2
Manachised and franchised hotels 3,070 824
Midscale and upscale hotels 2,133 1,436
Leased and owned hotels 273 41
Manachised and franchised hotels 1,860 1,395
Total 5,618 2,262
 

Operating Metrics

　 For the quarter ended 　
　 December 31, September 30, December 31, yoy
　 2018 2019 2019 change
Average daily room rate (in RMB) 　 　 　 　
Leased and owned hotels 275   288   277   0.9 %
Manachised and franchised hotels 218   235   223   2.1 %
Blended 230   245   232   0.9 %
Occupancy rate (as a percentage) 　 　 　 　
Leased and owned hotels 86.7 % 90.0 % 84.7 % -2.0 pp
Manachised and franchised hotels 84.8 % 87.2 % 81.6 % -3.1 pp
Blended 85.2 % 87.7 % 82.2 % -3.0 pp
RevPAR (in RMB) 　 　 　 　
Leased and owned hotels 238   259   235   -1.4 %
Manachised and franchised hotels 185   205   182   -1.7 %
Blended 196   215   191   -2.7 %(2)

(2) Excluding our soft brands (Hi Inn, Elan, Starway, Madison and Grand Madison), the blended RevPAR for 2019Q4 declined by 0.5% year-over-year.

　 For the full year ended
　 December 31, December 31, yoy
　 2018 2019 change
Average daily room rate (in RMB) 　 　 　
Leased and owned hotels 267   276   3.6 %
Manachised and franchised hotels 214   224   4.6 %
Blended 226   234   3.6 %
Occupancy rate (as a percentage) 　 　 　
Leased and owned hotels 89.0 % 87.0 % -2.0 %
Manachised and franchised hotels 86.9 % 83.8 % -3.1 %
Blended 87.3 % 84.4 % -3.0 %
RevPAR (in RMB) 　 　 　
Leased and owned hotels 237   240   1.2 %
Manachised and franchised hotels 186   188   0.8 %
Blended 197   198   0.1 %(3)

(3) Excluding our soft brands (Hi Inn, Elan, Starway, Madison and Grand Madison), the blended RevPAR for 2019 grew by 0.8%.

Business Update by Segment

Hotel and room portfolio by brand 　 　 　 　
　 　 　 　 　 　  
　 Number of hotels in operation
 Number of rooms in operation
  
　 Net added  As of  　 Net added  As of   
　 in Q4 2019 December 31, 2019 　 in Q4 2019 December 31, 2019  
Economy hotels 281   3,485 　 12,473   290,615  
HanTing Hotel (9 ) 2,372 　 (3,299 ) 224,626  
Hi Inn 15   465 　 871   28,153  
Elan Hotel 275   648 　 14,901   37,836  
Midscale and upscale hotels 186   2,133 　 19,989   246,261  
HanTing Premium Hotel 34   214 　 3,363   19,748  
Ibis Hotel 6   185 　 472   20,533  
Ibis Styles Hotel 5   55 　 549   6,681  
Starway Hotel 33   350 　 3,099   30,363  
JI Hotel 72   831 　 8,289   104,521  
Orange Select Hotel 15   248 　 1,510   28,821  
Crystal Orange Hotel 8   85 　 975   11,182  
Manxin Hotels & Resorts 7   46 　 825   4,133  
Madison Hotel 4   9 　 347   883  
Mercure Hotel 5   68 　 530   12,502  
Novotel Hotel 0   9 　 0   2,928  
Grand Madison Hotel 3   4 　 569   772  
Joya Hotel 0   6 　 0   1,250  
Blossom Hill Hotels & Resorts (4 ) 17 　 (79 ) 648  
Grand Mercure Hotel (2 ) 6 　 (460 ) 1,296  
Total 467   5,618 　   32,462   536,876  
　 　 　 　 　 　  


                   
Same-hotel operational data by segment                  
  Number of hotels Same-hotel RevPAR Same-hotel ADR Same-hotel Occupancy  
  As of
 For the quarter ended
 yoy For the quarter ended
 yoy For the quarter ended
 yoy
  
  December 31, December 31, change  December 31, change  December 31,   change  
  2018 2019 2018 2019   2018 2019   2018   2019     (p.p.)  
Economy hotels 2,467 2,467 165 155 -6.2 % 183 179 -2.4 % 90.0 % 86.5 %   -3.5  
Leased and owned hotels 409 409 180 172 -4.4 % 200 198 -0.7 % 90.2 % 86.9 %   -3.3  
Manachised and franchised hotels 2,058 2,058 161 151 -6.7 % 179 174 -2.9 % 90.0 % 86.4 %   -3.6  
Midscale and upscale hotels 950 950 266 253 -4.7 % 324 309 -4.4 % 82.0 % 81.8 %   -0.2  
Leased and owned hotels 199 199 330 309 -6.3 % 389 366 -5.9 % 84.8 % 84.4 %   -0.3  
Manachised and franchised hotels 751 751 243 233 -4.1 % 300 289 -3.8 % 81.1 % 80.9 %   -0.2  
Total 3,417 3,417 199 188 -5.4 % 228 222 -2.7 % 87.3 % 84.9 %   -2.4  
                         
                         
                   
  Number of hotels Same-hotel RevPAR Same-hotel ADR Same-hotel Occupancy  
  As of
 For the year ended
 yoy
 For the year ended
 yoy
 For the year ended
 yoy
  
  December 31, December 31, change  December 31, change  December 31,   change  
  2018 2019 2018 2019   2018 2019   2018   2019     (p.p.)  
Economy hotels 2,467  2,467 170 164 -3.0 % 184 184 0.3 % 92.2 % 89.1 %   -3.1  
Leased and owned hotels  409   409 183 182 -0.4 % 198 202 1.7 % 92.0 % 90.0 %   -2.0  
Manachised and franchised hotels 2,058   2,058 166 160 -3.8 % 180 180 -0.2 % 92.2 % 88.9 %   -3.3  
Midscale and upscale hotels  950   950 269 261 -3.2 % 323 317 -1.8 % 83.4 % 82.2 %   -1.2  
Leased and owned hotels  199   199 332 317 -4.6 % 385 374 -3.0 % 86.3 % 84.9 %   -1.4  
Manachised and franchised hotels  751   751 245 239 -2.5 % 298 294 -1.2 % 82.3 % 81.2 %   -1.1  
Total 3,417  3,417 201 194 -3.1 % 224 224 -0.3 % 89.5 % 87.0 %    -2.5  
                         

About Huazhu Group Limited
Huazhu Group Limited is a leading hotel operator and franchisor. As of December 31, 2019, Huazhu operated 5,618 hotels with 536,876 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 Blossom Hill 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 completed the acquisition of Deutsche Hospitality on January 2, 2020, further expanding our brands portfolio to include Steigenberger Hotels & Resorts, Maxx by Steigenberger, Jaz Hotel, Intercity Hotel and Zleep Hotel.

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 December 31, 2019, Huazhu operates 16 percent of its hotel rooms under lease and ownership model, and 84 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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