UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of January 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):
SIGNATURES
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 | ||
| (Registrant) | ||
| Date: January 29, 2020 | By: /s/ Qi Ji | |
| Name: Qi Ji | ||
| Title: Chief Executive Officer | ||
EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 | Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2019 |
EXHIBIT 99.1
Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2019
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