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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 2022

 

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 Fourth Quarter and the Full Year 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: January 20, 2022 By: /s/ Qi Ji
  Name: Qi Ji
  Title: Executive Chairman of the Board of Directors

 

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 Fourth Quarter and the Full Year of 2021

 

Shanghai, China, January 20, 2022 – 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 2021”) and the full year ended December 31, 2021.

 

COVID-19 update

 

For our Legacy-Huazhu business, RevPAR recovery in Q4 2021 was still significantly impacted by several COVID-19 resurgences in China. In terms of monthly breakdown, our RevPAR recovered to 90%, 76%, and 90% of the levels in October, November, and December 2019, respectively. Entering into 2022, we saw that the COVID-19 pandemic was still lingering in several cities and provinces, such as Xi’an, Tianjin and Henan Province, etc. Additionally, the new Omicron variant was also detected recently in several cities in China. More importantly, travelling restrictions are expected to be stricter in Beijing and its surrounding areas in anticipation of the upcoming Beijing Olympic Winter Games. Therefore, all the above factors would increase uncertainties and pressures to our RevPAR recovery in the first quarter of 2022.

 

After continuous business recovery in Q3 2021 thanks to the progress of vaccination campaign and easing of restrictions, Steigenberger Hotels AG and its subsidiaries (“DH”) in Q4 2021 were impacted by tightened governmental control measures and testing requirements due to the third and fourth waves of the COVID-19 pandemic in European countries. As a result, the recovery trend of DH was disrupted in November 2021, as RevPAR and occupancy numbers declined compared to those in the summer. In terms of vaccination, as of January 18, 2022, approximately 75% of the entire German population has received at least one dose and approximately 72% of the population has been fully vaccinated, and 47% has received the third dose. RevPAR recovery in the near-term is expected to remain under pressure due to the recent Omicron variant. However, we believe that the RevPAR recovery trend will quickly resume once the number of COVID cases start to decline.

 

Meanwhile, DH continues its effort to implement a comprehensive cash and cash flow improvement program, especially focusing on personnel cost reduction, process optimization and negotiation of further lease waivers. In addition, government subsidy was received in December 2021.

 

Page 1 of 9 

 

 

 

Operating Results: Legacy-Huazhu(1)

 

    Number of hotels    Number of rooms 
    Opened in
Q4 2021		    Closed (2)
in Q4 2021		    Net added
in Q4 2021		    As of
December 31, 2021 (3)		    As of
December 31, 2021		 
Leased and owned hotels   7    (8)   (1)   662    91,284 
Manachised and franchised hotels   436    (74)   362    7,044    636,859 
Total   443    (82)   361    7,706    728,143 

 

(1)       Legacy-Huazhu refers to Huazhu and its subsidiaries, excluding DH.

 

(2)       The reasons for hotel closures mainly included non-compliance with our brand standards, operating losses, and property-related issues. In Q4 2021, we temporarily closed 9 hotels for brand upgrade and business model change purposes.

 

(3)       As of December 31, 2021, 147 hotels were requisitioned by governmental authorities.

 

　  As of December 31, 2021 
　  Number of hotels   Unopened hotels in pipeline 
Economy hotels   4,772    1,194 
Leased and owned hotels   397    3 
Manachised and franchised hotels   4,375    1,191 
Midscale and upscale hotels   2,934    1,377 
Leased and owned hotels   265    15 
Manachised and franchised hotels   2,669    1,362 
Total   7,706    2,571 

 

Page 2 of 9 

 

 

 

Operational hotels excluding hotels under requisition
　  For the quarter ended   　 
　  December 31,   September 30,   December 31,   yoy 
　  2020   2021   2021   change 
Average daily room rate (in RMB)        　    　    　 
Leased and owned hotels   272    296    286    5.1%
Manachised and franchised hotels   224    238    232    3.9%
Blended   231    246    239    3.7%
Occupancy Rate (as a percentage)        　    　    　 
Leased and owned hotels   79.6%   69.7%   67.4%   -12.2p.p.
Manachised and franchised hotels   80.8%   72.2%   68.4%   -12.4p.p.
Blended   80.6%   71.9%   68.2%   -12.4p.p.
RevPAR (in RMB)   　    　    　    　 
Leased and owned hotels   217    206    193    -11.0%
Manachised and franchised hotels   181    172    159    -12.1%
Blended   186    177    163    -12.2%

 

　  For the quarter ended 
　  December 31,   December 31,   yoy 
　  2019   2021   change 
Average daily room rate (in RMB)        　    　 
Leased and owned hotels   277    286    3.2%
Manachised and franchised hotels   223    232    4.5%
Blended   232    239    3.1%
Occupancy Rate (as a percentage)        　    　 
Leased and owned hotels   84.7%   67.4%   -17.4p.p.
Manachised and franchised hotels   81.6%   68.4%   -13.3p.p.
Blended   82.2%   68.2%   -13.9p.p.
RevPAR (in RMB)   　    　    　 
Leased and owned hotels   235    193    -17.9%
Manachised and franchised hotels   182    159    -12.5%
Blended   191    163    -14.4%

 

Page 3 of 9 

 

 

 

　  For the year ended 
　  December 31,   December 31,   yoy 
　  2020   2021   change 
Average daily room rate (in RMB)        　    　 
Leased and owned hotels   241    286    18.7%
Manachised and franchised hotels   204    232    13.3%
Blended   210    239    13.8%
Occupancy Rate (as a percentage)        　    　 
Leased and owned hotels   68.9%   70.6%   +1.7 p.p. 
Manachised and franchised hotels   71.4%   72.4%   +1.0 p.p. 
Blended   71.0%   72.2%   +1.2 p.p. 
RevPAR (in RMB)   　    　    　 
Leased and owned hotels   166    202    21.7%
Manachised and franchised hotels   146    168    14.9%
Blended   149    172    15.6%

 

　  For the year ended 
　  December 31,   December 31,   yoy 
　  2019   2021   change 
Average daily room rate (in RMB)        　    　 
Leased and owned hotels   276    286    3.5%
Manachised and franchised hotels   224    232    3.2%
Blended   234    239    2.0%
Occupancy Rate (as a percentage)        　    　 
Leased and owned hotels   87.0%   70.6%   -16.3p.p. 
Manachised and franchised hotels   83.8%   72.4%   -11.4p.p. 
Blended   84.4%   72.2%   -12.2p.p. 
RevPAR (in RMB)   　    　    　 
Leased and owned hotels   240    202    -15.9%
Manachised and franchised hotels   188    168    -10.8%
Blended   198    172    -12.7%

 

Page 4 of 9 

 

 

 

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
December 31,		   For the quarter
ended
December 31,		    yoy
change		   For the quarter
ended
December 31,		    yoy
change		    For the quarter
ended
December 31,		    yoy
change		 
    2020    2021    2020    2021        2020    2021        2020    2021    (p.p.)  
Economy hotels   3,341    3,341    152    128    -15.6%   179    180    0.8%   85.2%   71.4%   -13.8 
Leased and owned hotels   388    388    170    146    -14.1%   201    204    1.1%   84.6%   71.9%   -12.7 
Manachised and franchised hotels   2,953    2,953    149    125    -15.9%   174    175    0.6%   85.3%   71.3%   -14.0 
Midscale and upscale hotels   1,734    1,734    247    208    -15.7%   314    312    -0.5%   78.7%   66.7%   -12.0 
Leased and owned hotels   222    222    280    238    -15.1%   378    378    0.2%   74.2%   62.8%   -11.4 
Manachised and franchised hotels   1,512    1,512    240    202    -15.9%   301    299    -0.8%   79.7%   67.6%   -12.1 
Total   5,075    5,075    192    162    -15.6%   232    233    0.3%   82.5%   69.4%   -13.1 

 

   Number of hotels   Same-hotel RevPAR   Same-hotel ADR   Same-hotel Occupancy 
   As of
December 31,		   For the quarter
ended
December 31,		    yoy
change		   For the quarter
ended
December 31,		    yoy
change		    For the quarter
ended
December 31,		    yoy
change		 
   2019   2021   2019   2021       2019   2021       2019   2021   (p.p.) 
Economy hotels   2,442    2,442    163    130    -20.1%   186    181    -2.8%   87.9%   72.2%   -15.7 
Leased and owned hotels   380    380    185    145    -21.8%   211    202    -4.4%   87.7%   71.7%   -16.0 
Manachised and franchised hotels   2,062    2,062    158    127    -19.7%   179    175    -2.4%   87.9%   72.3%   -15.6 
Midscale and upscale hotels   1,160    1,160    269    206    -23.5%   325    313    -3.7%   82.9%   65.9%   -17.0 
Leased and owned hotels   187    187    329    229    -30.6%   394    369    -6.5%   83.5%   62.0%   -21.5 
Manachised and franchised hotels   973    973    253    200    -21.0%   305    298    -2.4%   82.7%   66.9%   -15.8 
Total   3,602    3,602    204    160    -21.7%   237    229    -3.5%   86.0%   69.7%   -16.2 

 

Page 5 of 9 

 

 

 

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 year      For the year      For the year    
   As of
December 31,		 

ended

December 31,

  yoy
change		  

ended

December 31,

  yoy
change		  

ended

December 31,

   yoy
change
   2020  2021  2020  2021      2020  2021      2020   2021   (p.p.)
Economy hotels  3,341  3,341  125  138  10.8%  164  182  10.8%  75.8%  75.8%  +0.0
Leased and owned hotels  388  388  131  153  17.3%  179  206  15.0%  73.0%  74.5%  +1.5
Manachised and franchised hotels  2,953  2,953  123  135  9.3%  161  177  9.7%  76.4%  76.1%  -0.3
Midscale and upscale hotels  1,734  1,734  202  221  9.3%  289  315  8.8%  69.8%  70.1%  +0.3
Leased and owned hotels  222  222  219  250  14.2%  338  378  11.7%  64.8%  66.2%  +1.4
Manachised and franchised hotels  1,512  1,512  198  214  8.1%  279  301  8.0%  70.9%  71.0%  +0.1
Total  5,075  5,075  156  172  10.2%  213  234  10.0%  73.3%  73.5%  +0.1

 

   Number of hotels  Same-hotel RevPAR   Same-hotel ADR   Same-hotel Occupancy
      For the year     For the year     For the year  
  

As of

December 31,

 

ended

December 31,

  yoy
change		  

ended

December 31,

  yoy
change		  

ended

December 31,

   yoy
change
   2019  2021  2019  2021      2019  2021      2019   2021   (p.p.)
Economy hotels  2,442  2,442  172  138  -19.8%  190  182  -4.7%  90.2%  75.9%  -14.3
Leased and owned hotels  380  380  193  151  -21.6%  213  203  -4.4%  90.7%  74.4%  -16.3
Manachised and franchised hotels  2,062  2,062  166  134  -19.3%  185  176  -4.7%  90.1%  76.3%  -13.7
Midscale and upscale hotels  1,160  1,160  275  218  -20.8%  331  315  -4.8%  83.0%  69.0%  -14.0
Leased and owned hotels  187  187  335  244  -26.9%  398  371  -6.8%  84.1%  65.9%  -18.2
Manachised and franchised hotels  973  973  256  209  -18.4%  310  299  -3.6%  82.7%  70.0%  -12.7
Total  3,602  3,602  209  167  -20.1%  238  227  -4.7%  87.6%  73.4%  -14.2

 

Page 6 of 9 

 

 

 

Operating Results: Legacy-DH(4)

 

　  Number of hotels    Number of
rooms		    Unopened hotels
in pipeline		 
　 

Opened

in Q4 2021

  

Closed

in Q4 2021

  

Net added

in Q4 2021

  

As of

December 31,
2021(5)

   

As of

December 

31,2021

   

As of

December

 31,2021

 
Leased hotels   1    -    1    76     14,264     28 
Manachised and franchised hotels   3    (1)   2    48     10,809     9 
Total   4    (1)   3    124     25,073     37 

 

(4)Legacy-DH refers to DH.
  
(5)As of December 31, 2021, a total of 4 hotels were temporarily closed. 1 hotel was closed for renovation and 1 hotel was closed due to flood damage. Additionally, 1 hotel was in winter break and 1 hotel was temporarily closed due to low demand.

 

   For the quarter ended   　 
   December 31,   September 30,   December 31,   yoy 
　  2020   2021   2021   change 
Average daily room rate (in EUR)   　    　    　    　 
Leased hotels   78    94    95    21.6%
Manachised and franchised hotels   73    104    93    26.6%
Blended   76    99    94    23.5%
Occupancy rate (as a percentage)   　    　    　    　 
Leased hotels   20.9%   48.0%   42.8%   +22.0p.p.
Managed and franchised hotels   25.4%   49.4%   50.7%   +25.3p.p.
Blended   22.5%   48.6%   46.1%   +23.6p.p.
RevPAR (in EUR)   　    　    　    　 
Leased hotels   16    45    41    149.6%
Managed and franchised hotels   19    52    47    152.7%
Blended   17    48    43    152.6%

 

　  For the year ended 
　  December 31,   December 31,   yoy 
　  2020   2021   change 
Average daily room rate (in EUR)        　    　 
Leased and owned hotels   89    91    2.2%
Manachised and franchised hotels   85    89    4.8%
Blended   88    90    3.0%
Occupancy rate (as a percentage)        　    　 
Leased and owned hotels   33.9%   31.6%   -2.3p.p.
Manachised and franchised hotels   36.3%   40.5%   +4.2p.p.
Blended   34.8%   35.2%   +0.3p.p.
RevPAR (in EUR)   　    　    　 
Leased and owned hotels   30    29    -4.6%
Manachised and franchised hotels   31    36    16.8%
Blended   31    32    4.0%

 

Page 7 of 9 

 

 

 

Hotel Portfolio by Brand

 

　  As of December 31, 2021 
　  Hotels   Rooms   Unopened hotels 
　  in operation   in pipeline 
Economy hotels   4,786    387,895    1,206 
HanTing Hotel   3,027    274,118    696 
Hi Inn   443    24,674    117 
Elan Hotel(6)   1,083    64,606    353 
Ibis Hotel   219    22,834    28 
Zleep Hotels   14    1,663    12 
Midscale hotels   2,450    271,421    1,072 
Ibis Styles Hotel   79    8,404    21 
Starway Hotel   528    44,016    252 
JI Hotel   1,381    166,836    575 
Orange Hotel   432    47,393    217 
CitiGO Hotel   30    4,772    7 
Upper midscale hotels   454    67,068    264 
Crystal Orange Hotel   144    19,190    58 
Manxin Hotel   84    8,273    62 
Madison Hotel   37    5,490    56 
Mercure Hotel   125    21,217    50 
Novotel Hotel   15    4,032    13 
IntercityHotel(7)   49    8,866    25 
Upscale hotels   125    23,056    61 
Jaz in the City   3    587    1 
Joya Hotel   9    1,760    0 
Blossom House   34    1,658    39 
Grand Mercure Hotel   7    1,485    3 
Steigenberger Hotels & Resorts(8)   65    16,389    12 
MAXX (9)   7    1,177    6 
Others   15    3,776    5 
Other hotels(10)   15    3,776    5 
Total   7,830    753,216    2,608 

 

(6)As of December 31, 2021, 70 Ni Hao Hotels were included in the operational hotel for Elan Hotels and 163 Ni Hao Hotels were included in the pipeline for Elan Hotels.

 

(7)As of December 31, 2021, 2 operational hotels and 8 pipeline hotels of IntercityHotel were in China.

 

(8)As of December 31, 2021, 14 operational hotels and 6 pipeline hotels of Steigenberger Hotels & Resorts were in China.

 

(9)As of December 31, 2021, 2 operational hotels and 5 pipeline hotels of MAXX were in China.

 

(10)Other hotels include other partner hotels and other hotel brands in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House).

 

Page 8 of 9 

 

 

 

About Huazhu Group Limited

 

Originated in China, Huazhu Group Limited is a world-leading hotel group. As of December 31, 2021, Huazhu operated 7,830 hotels with 753,216 rooms in operation in 17 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, Ni Hao Hotel and CitiGO 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 December 31, 2021, Huazhu operates 14 percent of its hotel rooms under lease and ownership model, and 86 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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