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 April 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 o

 

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): o

 

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): o

 

 

 


 

EXHIBIT INDEX

 

Exhibit Number

 

Description

Exhibit 99.1

 

Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the First Quarter of 2021

 

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: April 22, 2021

By:

/s/ Qi Ji

 

Name:

Qi Ji

 

Title:

Executive Chairman of the Board of Directors, Chief Executive Officer

 

3


Exhibit 99.1

 

 

 

Contact Information

Huazhu Investor Relations

Tel: 86 (21) 6195 9561

Email: ir@huazhu.com

http://ir.huazhu.com

 

Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the First Quarter of 2021

 

Shanghai, China, April 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 first quarter (“Q1 2021”) ended March 31, 2021.

 

COVID-19 update

 

Due to COVID-19 resurgence in Shanghai, Beijing and Hebei Province and the “stay local” guidance prior to the Chinese New Year holiday (CNY), RevPAR in January and February 2021 recovered to 74% and 56% of 2019 respectively. Our hotel openings were also negatively impacted by the resurgence of COVID-19 during the first quarter. However, our performance started to recover steadily again post the CNY holiday. Particularly, after the National People’s Congress and the Chinese People’s Political Consultative Conference during the first week of March, the Chinese government further eased travel restrictions which were in effect from March 16, 2021. After that, we saw strong recovery in hotel demand in the Beijing area, followed by other major tier 1 cities. Our RevPAR in March 2021 recovered to 95% of 2019, mainly driven by the strong recovery of business demand. Heading into April, the recovery trend continued. Our RevPAR during the Tomb Sweeping holiday recovered to 96% of same period of 2019, which demonstrated the strong recovery of leisure demand.

 

Steigenberger Hotels AG and its subsidiaries (“DH”) suffered from the several resurgences of COVID-19 pandemic in European countries. The lock down period there has been extended several times, and most likely to further extend to the end of May, 2021. European countries began their vaccination process in December 2020. However, due to the uncertainty of the completion of the vaccination process, and consequently the timing of business recovery, we are taking further cost reduction and cash flow measures, such as negotiating with landlords to reduce our rental costs, reducing or eliminating discretionary corporate spending and capital expenditures, etc. However, the extension of lockdown impacts should be partially offset by extension of the scope and duration of European government subsidy programs.

 

1


 

Operating Results: Legacy-Huazhu(1)

 

 

 

Number of hotels

 

Number of rooms

 

 

 

Opened
in Q1 2021

 

Closed (2)
in Q1 2021

 

Net added
in Q1 2021

 

As of
March 31, 2021 
(3)

 

As of
March 31, 2021

 

Leased and owned hotels

 

2

 

(19

)

(17

)

664

 

89,901

 

Manachised and franchised hotels

 

207

 

(98

)

109

 

6,097

 

548,718

 

Total

 

209

 

(117

)

92

 

6,761

 

638,619

 

 


(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 Q1 2021, we temporarily closed 16 hotels for brand upgrade and business model change purposes.

(3)    As of March 31, 2021, 43 hotels were requisitioned by governmental authorities.

 

 

 

As of March 31, 2021

 

 

 

Number of hotels

 

Unopened hotels in pipeline

 

Economy hotels

 

4,383

 

1,269

 

Leased and owned hotels

 

422

 

5

 

Manachised and franchised hotels

 

3,961

 

1,264

 

Midscale and upscale hotels

 

2,378

 

1,339

 

Leased and owned hotels

 

242

 

14

 

Manachised and franchised hotels

 

2,136

 

1,325

 

Total

 

6,761

 

2,608

 

 

2


 

Operational hotels excluding hotels under requisition

 

 

 

For the quarter ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

yoy

 

 

 

2020

 

2020

 

2021

 

change

 

Average daily room rate (in RMB)

 

 

 

 

 

 

 

 

 

Leased and owned hotels

 

211

 

272

 

243

 

15.6

%

Manachised and franchised hotels

 

184

 

224

 

203

 

10.2

%

Blended

 

189

 

231

 

209

 

10.6

%

Occupancy rate (as a percentage)

 

 

 

 

 

 

 

 

 

Leased and owned hotels

 

43.8

%

79.6

%

64.0

%

20.2

p.p.

Manachised and franchised hotels

 

47.4

%

80.8

%

66.6

%

19.2

p.p.

Blended

 

46.7

%

80.6

%

66.2

%

19.5

p.p.

RevPAR (in RMB)

 

 

 

 

 

 

 

 

 

Leased and owned hotels

 

92

 

217

 

156

 

68.9

%

Manachised and franchised hotels

 

87

 

181

 

135

 

54.9

%

Blended

 

88

 

186

 

138

 

56.7

%

 

 

 

For the quarter ended

 

 

 

March 31,

 

March 31,

 

yoy

 

 

 

2019

 

2021

 

change

 

Average daily room rate (in RMB)

 

 

 

 

 

 

 

Leased and owned hotels

 

258

 

243

 

-5.6

%

Manachised and franchised hotels

 

211

 

203

 

-3.9

%

Blended

 

221

 

209

 

-5.6

%

Occupancy rate (as a percentage)

 

 

 

 

 

 

 

Leased and owned hotels

 

83.6

%

64.0

%

-19.6

p.p.

Manachised and franchised hotels

 

79.8

%

66.6

%

-13.3

p.p.

Blended

 

80.6

%

66.2

%

-14.4

p.p.

RevPAR (in RMB)

 

 

 

 

 

 

 

Leased and owned hotels

 

216

 

156

 

-27.8

%

Manachised and franchised hotels

 

169

 

135

 

-19.9

%

Blended

 

178

 

138

 

-22.5

%

 

3


 

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

 

 

 

 

 

For the quarter

 

 

 

For the quarter

 

 

 

For the quarter

 

 

 

 

 

As of

 

ended

 

 

 

ended

 

 

 

ended

 

yoy

 

 

 

March 31,

 

March 31,

 

yoy

 

March 31,

 

yoy

 

March 31,

 

change

 

 

 

2020

 

2021

 

2020

 

2021

 

change

 

2020

 

2021

             

change

 

2020

 

2021

 

(p.p.)

 

Economy hotels

 

2,832

 

2,832

 

80

 

113

 

42.1

%

153

 

160

 

4.9

%

52.0

%

70.5

%

18.4

 

Leased and owned hotels

 

417

 

417

 

79

 

120

 

50.8

%

164

 

175

 

7.3

%

48.5

%

68.2

%

19.7

 

Manachised and franchised hotels

 

2,415

 

2,415

 

80

 

111

 

40.0

%

150

 

157

 

4.4

%

53.0

%

71.0

%

18.1

 

Midscale and upscale hotels

 

1,377

 

1,377

 

111

 

176

 

58.2

%

260

 

278

 

7.0

%

42.7

%

63.1

%

20.4

 

Leased and owned hotels

 

198

 

198

 

113

 

191

 

68.6

%

297

 

326

 

9.5

%

38.1

%

58.7

%

20.6

 

Manachised and franchised hotels

 

1,179

 

1,179

 

110

 

172

 

55.6

%

251

 

268

 

6.6

%

44.0

%

64.2

%

20.2

 

Total

 

4,209

 

4,209

 

92

 

138

 

50.2

%

190

 

204

 

7.6

%

48.4

%

67.5

%

19.2

 

 

 

 

Number of hotels

 

Same-hotel RevPAR

 

Same-hotel ADR

 

Same-hotel Occupancy

 

 

 

 

 

For the quarter

 

 

 

For the quarter

 

 

 

For the quarter

 

 

 

 

 

As of

 

ended

 

 

 

ended

 

 

 

ended

 

yoy

 

 

 

March 31,

 

March 31,

 

yoy

 

March 31,

 

yoy

 

March 31,

 

change

 

 

 

2019

 

2021

 

2019

 

2021

 

change

 

2019

 

2021

 

change

 

2019

 

2021

 

(p.p.)

 

Economy hotels

 

2,290

 

2,290

 

158

 

110

 

-30.0

%

181

 

158

 

-12.7

%

87.1

%

69.8

%

-17.3

 

Leased and owned hotels

 

396

 

396

 

175

 

117

 

-33.1

%

199

 

173

 

-13.1

%

88.1

%

67.9

%

-20.2

 

Manachised and franchised hotels

 

1,894

 

1,894

 

153

 

109

 

-29.1

%

176

 

154

 

-12.4

%

86.9

%

70.4

%

-16.5

 

Midscale and upscale hotels

 

842

 

842

 

248

 

174

 

-30.0

%

321

 

279

 

-13.0

%

77.2

%

62.2

%

-15.0

 

Leased and owned hotels

 

173

 

173

 

302

 

189

 

-37.4

%

381

 

319

 

-16.4

%

79.1

%

59.2

%

-19.9

 

Manachised and franchised hotels

 

669

 

669

 

229

 

168

 

-26.5

%

299

 

266

 

-11.0

%

76.5

%

63.2

%

-13.3

 

Total

 

3,132

 

3,132

 

187

 

131

 

-29.9

%

224

 

195

 

-12.6

%

83.9

%

67.3

%

-16.6

 

 

4


 

Operating Results: Legacy-DH(4)

 

 

 

Number of hotels

 

Number of
rooms

 

Unopened hotels
 in pipeline

 

 

 

Opened
in Q1 2021

 

Closed
in Q1 2021

 

Net added
in Q1 2021

 

As of
March 31,
2021
(5)

 

As of
March 31,
2021

 

As of
March 31, 2021

 

Leased hotels

 

1

 

 

1

 

73

 

13,527

 

27

 

Manachised and franchised hotels

 

 

(1

)

(1

)

47

 

10,366

 

14

 

Total

 

1

 

(1

)

 

120

 

23,893

 

41

 

 


(4)         Legacy-DH refers to DH.

(5)         As of March 31, 2021, a total of 20 DH brand hotels were temporarily closed due to COVID-19.

 

 

 

For the quarter ended

 

 

 

 

 

March 31,

 

December 31,

 

March 31,

 

yoy

 

 

 

2020

 

2020

 

2021

 

change

 

Average daily room rate (in EUR)

 

 

 

 

 

 

 

 

 

Leased hotels

 

96.8

 

78.4

 

77.9

 

-19.6

%

Manachised and franchised hotels

 

79.5

 

73.3

 

59.0

 

-25.8

%

Blended

 

89.3

 

76.3

 

68.5

 

-23.3

%

Occupancy rate (as a percentage)

 

 

 

 

 

 

 

 

 

Leased hotels

 

52.6

%

20.9

%

14.6

%

-38.0

p.p.

Managed and franchised hotels

 

50.4

%

25.4

%

26.5

%

-24.0

p.p.

Blended

 

51.7

%

22.5

%

18.8

%

-32.8

p.p.

RevPAR (in EUR)

 

 

 

 

 

 

 

 

 

Leased hotels

 

51.0

 

16.4

 

11.4

 

-77.7

%

Managed and franchised hotels

 

40.1

 

18.6

 

15.6

 

-61.0

%

Blended

 

46.1

 

17.2

 

12.9

 

-72.1

%

 

5


 

Hotel Portfolio by Brand

 

 

 

As of March 31, 2021

 

 

 

Hotels

 

Rooms

 

Unopened hotels

 

 

 

in operation

 

in pipeline

 

Economy hotels

 

4,397

 

363,494

 

1,280

 

HanTing Hotel

 

2,767

 

255,385

 

659

 

Hi Inn

 

436

 

25,228

 

99

 

Elan Hotel(6)

 

972

 

59,319

 

468

 

Ibis Hotel

 

208

 

21,901

 

43

 

Zleep Hotels

 

14

 

1,661

 

11

 

Midscale and upscale hotels

 

2,484

 

299,018

 

1,369

 

Ibis Styles Hotel

 

70

 

8,119

 

26

 

Starway Hotel

 

453

 

38,110

 

272

 

JI Hotel

 

1,137

 

139,943

 

577

 

Orange Hotel

 

345

 

38,537

 

181

 

Crystal Orange Hotel

 

121

 

16,240

 

69

 

Manxin Hotel

 

63

 

6,155

 

54

 

Madison Hotel

 

25

 

3,850

 

43

 

Mercure Hotel

 

108

 

17,846

 

64

 

Novotel Hotel

 

12

 

3,387

 

14

 

Joya Hotel

 

10

 

1,842

 

0

 

Blossom House

 

27

 

1,272

 

26

 

Grand Mercure Hotel

 

7

 

1,485

 

6

 

Steigenberger Hotels & Resorts

 

49

 

11,574

 

9

 

IntercityHotel(7)

 

45

 

7,931

 

21

 

MAXX by Steigenberger(8)

 

5

 

777

 

4

 

Jaz in the City

 

2

 

424

 

2

 

Other partner hotels

 

5

 

1,526

 

1

 

Total

 

6,881

 

662,512

 

2,649

 

 


(6)    As of March 31, 2021, 9 Ni Hao Hotels were included in the operational hotel total for Elan Hotels and 96 Ni Hao hotels were included in the pipeline total for Elan Hotels.

(7)    As of March 31, 2021, 4 pipeline hotels of IntercityHotel were in China.

(8)    As of March 31, 2021, 3 pipeline hotels of MAXX by Steigenberger were in China.

 

6


 

About Huazhu Group Limited

 

Originated in China, Huazhu Group Limited is a world-leading hotel group. As of March 31, 2021, Huazhu operated 6,881 hotels with 662,512 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 Hotels. 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 March 31, 2021, 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.

 

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