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 2021

 

Commission File Number: 001-34656

 

Huazhu Group Limited

(Registrant’s name)

 

No. 699 Wuzhong Road

Minhang District

Shanghai 201103
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): ¨

 

 

 

EXHIBIT INDEX

 

Exhibit Number		Description
Exhibit 99.1		Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2020

 

 

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 22, 2021	By:	/s/ Qi Ji
	Name:	Qi Ji
	Title:	Executive Chairman of the Board of Directors, Chief Executive Officer

 

 

 

Exhibit 99.1

 

Huazhu Group Limited Announces Preliminary Results for Hotel Operations

in the Fourth Quarter and the Full Year of 2020

 

Shanghai, China, January 22, 2021 – Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) (“Huazhu”, “we” or “our”), a world-leading hotel group, today announced preliminary results for hotel operations in the fourth quarter (“Q4 2020”) and the full year ended December 31, 2020.

 

Recovery continued in Q4 2020

 

During Q4 2020, despite numerous recurrence of COVID-19 in several cities and provinces in mainland China, such as Shanghai, Chengdu, and Northeastern of China, our business continued to recover, thanks to China’s more effective and precise control of the COVID-19 pandemic. More importantly, we noticed that travelling demand shows resilience and recovery in previously affected cities started accelerating after adjusting down the risk level in those cities (from mid-to-high risk to low risk). Hence, in Q4 2020, Huazhu expects net revenues in China to be better than our previous guidance.

 

Steigenberger Hotels AG and its subsidiaries (“DH”) suffered from the second wave of COVID-19 outbreak in European countries since late September 2020. The lock down period in Germany extended to February 14, 2021. However, even with the extension of the lock down period, the Q4 2020 DH net revenues remains within our previous guidance. In addition, we are taking further cost and cash flow measures, such as negotiating with landlords to reduce our rental costs, reducing or eliminating discretionary corporate spending and capital expenditures, etc. We also actively sought new business opportunities in the government’s fight against COVID-19, such as offering hotels to support government for pandemic prevention and control.

 

 

Exhibit 99.1

 

Operating Results: Legacy-Huazhu⁽¹⁾

 

		Number of hotels																Number of rooms
		Opened in Q4 2020				Closed (2) in Q4 2020				Net added in Q4 2020				As of December 31, 2020 (3)				As of December 31, 2020
Leased and owned hotels			4				(10	)			(6	)			681				90,942
Manachised and franchised hotels			389				(104	)			285				5,988				537,193
Total			393				(114	)			279				6,669				628,135

 

(1)     Legacy-Huazhu refers to Huazhu and its subsidiaries, excluding DH. (2)     The reasons for hotel closures mainly include non-compliance with our brand standards, operating losses, and property-related issues. In Q4 2020, we temporarily closed 6 hotels for brand upgrade and business model change purposes. (3)     As of December 31, 2020, 74 hotels were requisitioned by governmental authorities.

 

		As of December 31, 2020
		Number of hotels				Unopened hotels in pipeline
Economy hotels			4,362				1,183
Leased and owned hotels			438				4
Manachised and franchised hotels			3,924				1,179
Midscale and upscale hotels			2,307				1,228
Leased and owned hotels			243				14
Manachised and franchised hotels			2,064				1,214
Total			6,669				2,411

 

 

Exhibit 99.1

 

Operational hotels (excluding hotels under requisition)  

 

		For the quarter ended
		December 31,				September 30,				December 31,				yoy
		2019				2020				2020				change
Average daily room rate (in RMB)
Leased and owned hotels			277				255				272				-1.8	%
Manachised and franchised hotels			223				211				224				0.6	%
Blended			232				218				231				-0.5	%
Occupancy rate (as a percentage)
Leased and owned hotels			84.7	%			82.9	%			79.6	%			-5.2p.p.
Manachised and franchised hotels			81.6	%			81.8	%			80.8	%			-0.9p.p.
Blended			82.2	%			82.0	%			80.6	%			-1.6p.p.
RevPAR (in RMB)
Leased and owned hotels			235				211				217				-7.8	%
Manachised and franchised hotels			182				173				181				-0.5	%
Blended			191				179				186				-2.4	%

 

		For the year ended
		December 31,				December 31,				yoy
		2019				2020				change
Average daily room rate (in RMB)
Leased and owned hotels			276				241				-12.8	%
Manachised and franchised hotels			224				204				-8.9	%
Blended			234				210				-10.3	%
Occupancy rate (as a percentage)
Leased and owned hotels			87.0	%			68.9	%			-18.1p.p.
Manachised and franchised hotels			83.8	%			71.4	%			-12.4p.p.
Blended			84.4	%			71.0	%			-13.4p.p.
RevPAR (in RMB)
Leased and owned hotels			240				166				-30.9	%
Manachised and franchised hotels			188				146				-22.3	%
Blended			198				149				-24.5	%

 

 

Exhibit 99.1

 

Same-hotel operational data by class

Mature hotels in operation for more than 18 months (excluding hotels under requisition)

 

		Number of hotels								Same-hotel RevPAR												Same-hotel ADR												Same-hotel Occupancy
		As of								For the quarter												For the quarter												For the quarter
		December 31,								ended								yoy				ended								yoy				ended								yoy
										December 31,								change				December 31,								change				December 31,								change
		2019				2020				2019				2020								2019				2020								2019				2020				(p.p.)
Economy hotels			2,651				2,651				162				151				-6.7	%			185				178				-3.7	%			87.6	%			84.9	%			-2.7
Leased and owned hotels			412				412				184				167				-8.9	%			210				199				-5.2	%			87.7	%			84.3	%			-3.4
Manachised and franchised hotels			2,239				2,239				157				147				-6.1	%			179				173				-3.3	%			87.5	%			85.0	%			-2.5
Midscale and upscale hotels			1,225				1,225				266				243				-8.5	%			322				311				-3.4	%			82.5	%			78.2	%			-4.3
Leased and owned hotels			190				190				327				272				-16.7	%			392				365				-6.8	%			83.4	%			74.5	%			-8.8
Manachised and franchised hotels			1,035				1,035				250				236				-5.6	%			303				298				-1.9	%			82.3	%			79.2	%			-3.1
Total			3,876				3,876				201				186				-7.6	%			235				225				-3.9	%			85.7	%			82.4	%			-3.3
		Number of hotels								Same-hotel RevPAR												Same-hotel ADR												Same-hotel Occupancy
		As of								For the year												For the year												For the year
		December 31,								ended								yoy				ended								yoy				ended								yoy
										December 31,								change				December 31,								change				December 31,								change
		2019				2020				2019				2020								2019				2020								2019				2020				(p.p.)
Economy hotels			2,651				2,651				169				121				-28.8	%			189				162				-14.1	%			89.7	%			74.3	%			-15.4
Leased and owned hotels			412				412				191				128				-32.8	%			211				176				-16.4	%			90.5	%			72.8	%			-17.7
Manachised and franchised hotels			2,239				2,239				164				118				-27.7	%			183				159				-13.4	%			89.4	%			74.7	%			-14.8
Midscale and upscale hotels			1,225				1,225				272				198				-27.0	%			328				287				-12.4	%			82.8	%			69.0	%			-13.8
Leased and owned hotels			190				190				332				211				-36.4	%			395				328				-17.0	%			84.1	%			64.5	%			-19.7
Manachised and franchised hotels			1,035				1,035				254				194				-23.4	%			308				276				-10.3	%			82.5	%			70.4	%			-12.1
Total			3,876				3,876				205				148				-27.9	%			234				204				-13.1	%			87.3	%			72.5	%			-14.8

  

 

Exhibit 99.1

 

Operating Results: Legacy-DH⁽⁴⁾

 

		Number of hotels																Number of rooms				Unopened hotels in pipeline
		Opened in Q4 2020				Closed in Q4 2020				Net added in Q4 2020				As of December 31, 2020(5)				As of December 31, 2020				As of December 31, 2020
Leased hotels			2				-				2				72				13,371				26
Manachised and franchised hotels			1				-				1				48				10,656				12
Total			3				-				3				120				24,027				38

 

(4)     Legacy-DH refers to DH.

(5)     As of December 31, 2020, a total of 18 DH brand hotels were temporarily closed due to COVID-19. 

 

		For the quarter ended
		December 31,				September 30,				December 31,				yoy
		2019				2020				2020				change
Average daily room rate  (in EUR)
Leased hotels			108				88				78				-27.2	%
Manachised and franchised hotels			85				101				73				-13.7	%
Blended			97				93				76				-21.5	%
Occupancy rate (as a percentage)
Leased hotels			73.3	%			38.2	%			20.9	%			-52.6p.p.
Manachised and franchised hotels			62.6	%			37.5	%			25.4	%			-37.2p.p.
Blended			68.0	%			37.9	%			22.5	%			-45.5p.p.
RevPAR  (in EUR)
Leased hotels			79				34				16				-79.3	%
Manachised and franchised hotels			53				38				19				-64.9	%
Blended			66				35				17				-74.0	%

 

		For the year ended
		December 31,				December 31,				yoy
		2019				2020				change
Average daily room rate  (in EUR)
Leased hotels			105				89				-14.8	%
Manachised and franchised hotels			88				85				-3.2	%
Blended			97				88				-9.9	%
Occupancy rate (as a percentage)
Leased hotels			72.8	%			33.9	%			-38.9p.p.
Manachised and franchised hotels			65.0	%			36.3	%			-28.7p.p.
Blended			69.1	%			34.8	%			-34.3p.p.
RevPAR  (in EUR)
Leased hotels			76				30				-60.4	%
Manachised and franchised hotels			57				31				-45.8	%
Blended			67				31				-54.6	%

 

 

Exhibit 99.1

 

Hotel Portfolio by Brand

 

		As of December 31, 2020
		Hotels				Rooms				Unopened hotels
		in operation								in pipeline
Economy hotels			4,376				361,435				1,192
HanTing Hotel			2,780				254,106				597
Hi Inn			439				25,282				91
Elan Hotel(6)			938				58,753				448
Ibis Hotel			205				21,633				47
Zleep Hotel			14				1,661				9
Midscale and upscale hotels			2,413				290,727				1,257
Ibis Styles Hotel			69				7,992				22
Starway Hotel			455				38,657				252
JI Hotel			1,105				135,737				512
Orange Hotel			320				36,167				174
Crystal Orange Hotel			114				15,400				66
Manxin Hotel			61				6,009				47
Madison Hotel			22				2,950				42
Mercure Hotel			104				17,486				61
Novotel Hotel			12				3,387				14
Joya Hotel			10				1,842				-
Blossom House			28				1,249				23
Grand Mercure Hotel			7				1,485				7
Steigenberger Hotels & Resorts			49				11,574				7
IntercityHotel(7)			45				8,056				23
Maxx by Steigenberger(8)			5				777				4
Jaz in the City			2				424				2
Other partner hotels			5				1,535				1
Total			6,789				652,162				2,449
(6)     As of December 31, 2020, 5 Ni Hao Hotels were included in the operational hotel total for Elan Hotels and 74 Ni Hao hotels were included in the pipeline total for Elan Hotels. (7)     As of December 31, 2020, 5 pipeline hotels of IntercityHotel were in China. (8)     As of December 31, 2020, 3 pipeline hotels of Maxx by Steigenberger were in China.

 

 

Exhibit 99.1

 

About Huazhu Group Limited

 

Originated in China, Huazhu Group Limited is a world-leading hotel group. As of December 31, 2020, Huazhu operated 6,789 hotels with 652,162 rooms in operation in 16 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, Blossom House, and Ni Hao Hotel. Upon the completion of the acquisition of DH on January 2, 2020, Huazhu added five brands to its portfolio, including Steigenberger Hotels & Resorts, Maxx by Steigenberger, Jaz in the City, IntercityHotel 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 that Huazhu appoints, and Huazhu 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, 2020, 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; 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

http://ir.huazhu.com