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

 

2

 

 

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

 

3

 

 

 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.

 

Page 1 of 7

 

 

 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 

 

Page 2 of 7

 

 

 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%

 

Page 3 of 7

 

 

 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  

  

Page 4 of 7

 

 

 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%

 

Page 5 of 7

 

 

 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.

 

Page 6 of 7

 

 

 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

 

Page 7 of 7