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 July 2022

 

Commission File Number: 001-34656

 

H World 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   H World Group Limited Announces Preliminary Results for Hotel Operations in the Second Quarter of 2022

 

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.

 

    H World Group Limited
    (Registrant)
     
Date: July 20, 2022 By: /s/ Qi Ji
  Name: Qi Ji
  Title: Executive Chairman of the Board of Directors

 

3 

 

 

Exhibit 99.1

 

 

 

Contact Information

H World Investor Relations

Tel: 86 (21) 6195 9561

Email: ir@huazhu.com

https://ir.hworld.com

 

H World Group Limited Announces Preliminary Results for Hotel Operations

in the Second Quarter of 2022

 

Shanghai, China, July 20, 2022 – H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”), a world-leading hotel group, today announced preliminary results for hotel operations in the second quarter (“Q2 2022”) ended June 30, 2022.

 

COVID-19 update

 

For our Legacy-Huazhu business, the large-scale outbreak of Omicron variant in China since early-March 2022 led to massive lockdown in various cities and sharp decline in the demand for both business and leisure travel. As a result, our RevPAR in Q2 2022 only recovered to 69% of the 2019 level. Breaking down into each month, April and May 2022 were the hardest-hit with RevPAR only having recovered to 53% and 65% of the 2019 levels respectively. However, RevPAR recovery improved in June 2022 to 86% of the 2019 level due to gradual lift of lockdown since late May 2022. In addition, if we consider the impacts of requisitioned hotels, our RevPAR recovery in Q2 2022 would have been 75% of the 2019 level.

 

Steigenberger Hotels AG and its subsidiaries (“DH”, or “Legacy-DH”) have seen an accelerating RevPAR recovery in Q2 2022. While RevPAR in March 2022 was 35% lower than the 2019 level, June 2022 RevPAR was only 1% behind that of 2019.  However, against the background of surging inflation in Europe and the resulting substantial increase in costs as well as uncertainties about the future development of COVID-19 and energy supplies, DH has been focusing on cash flow improvement measures. As a consequence, DH will continue to focus on efficiency improvements, re-negotiation of lease contracts, and personnel cost optimization.

 

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Operating Results: Legacy-Huazhu(1)

 

 

   Number of hotels   Number of rooms 
   Opened
in Q2 2022
   Closed (2)
in Q2 2022
   Net added
in Q2 2022
   As of
June 30, 2022 (3)
   As of
June 30, 2022
 
                     
Leased and owned hotels   5    (12)   (7)   646    91,171 
Manachised and franchised hotels   264    (74)   190    7,405    657,771 
Total   269    (86)   183    8,051    748,942 

 

(1)Legacy-Huazhu refers to H World 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 Q2 2022, we temporarily closed 7 hotels for brand upgrade and business model change purposes.
(3)As of June 30, 2022,645 hotels were requisitioned by governmental authorities.

 

   As of June 30, 2022 
   Number of hotels   Unopened hotels in pipeline 
Economy hotels   4,859    974 
Leased and owned hotels   381    1 
Manachised and franchised hotels   4,478    973 
Midscale and upscale hotels   3,192    1,225 
Leased and owned hotels   265    19 
Manachised and franchised hotels   2,927    1,206 
Total   8,051    2,199 

 

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Operational hotels excluding hotels under requisition(4)
 
   For the quarter ended     
   June 30,   March 31,   June 30,   yoy 
   2021   2022   2022   change 
Average daily room rate (in RMB)            
Leased and owned hotels   311    263    243    -21.7%
Manachised and franchised hotels   246    218    215    -12.8%
Blended   255    224    218    -14.5%
Occupancy Rate (as a percentage)                    
Leased and owned hotels   81.1%   56.7%   62.9%   -18.1p.p.
Manachised and franchised hotels   82.5%   59.6%   64.9%   -17.6p.p.
Blended   82.3%   59.2%   64.6%   -17.7p.p.
RevPAR (in RMB)                    
Leased and owned hotels   252    149    153    -39.2%
Manachised and franchised hotels   203    130    139    -31.4%
Blended   210    132    141    -32.9%

 

   For the quarter ended 
   June 30,   June 30,   yoy 
   2019   2022   change 
Average daily room rate (in RMB)        
Leased and owned hotels   281    243    -13.5%
Manachised and franchised hotels   225    215    -4.7%
Blended   236    218    -7.8%
Occupancy Rate (as a percentage)               
Leased and owned hotels   89.4%   62.9%   -26.5p.p.
Manachised and franchised hotels   86.3%   64.9%   -21.4p.p.
Blended   86.9%   64.6%   -22.3p.p.
RevPAR (in RMB)               
Leased and owned hotels   252    153    -39.2%
Manachised and franchised hotels   194    139    -28.4%
Blended   206    141    -31.4%

 

(4)If including hotels under requisition, RevPAR in Q2 2022 would have been 75% of the 2019 level.

 

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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   yoy   For the quarter   yoy   For the quarter   yoy 
  

As of June 30,

  

ended June 30,

   change  

ended June 30,

   change  

ended June 30,

   change 
   2021   2022   2021   2022       2021   2022       2021   2022   (p.p.) 
Economy hotels   3127    3127    172    112    -34.8%   197    166    -16.0%   87.2%   67.7%   -19.5 
Leased and owned hotels   350    350    193    121    -37.3%   229    177    -22.7%   84.3%   68.4%   -15.9 
Manachised and franchised hotels   2777    2777    168    110    -34.3%   191    163    -14.6%   87.7%   67.5%   -20.2 
Midscale and upscale hotels   1785    1785    275    173    -37.2%   335    281    -16.4%   81.9%   61.5%   -20.4 
Leased and owned hotels   203    203    323    190    -41.1%   414    332    -19.8%   78.0%   57.3%   -20.7 
Manachised and franchised hotels   1582    1582    266    169    -36.3%   322    272    -15.6%   82.7%   62.3%   -20.3 
Total   4912    4912    217    138    -36.2%   255    213    -16.7%   84.9%   65.0%   -19.9 

 

   Number of hotels   Same-hotel RevPAR   Same-hotel ADR   Same-hotel Occupancy 
      For the quarter   yoy   For the quarter   yoy   For the quarter   yoy 
  

As of June 30,

  

ended June 30,

   change  

ended June 30,

   change  

ended June 30,

   change 
   2019   2022   2019   2022       2019   2022       2019   2022   (p.p.) 
Economy hotels   1888    1888    182    110    -39.4%   195    164    -15.8%   93.1%   67.0%   -26.1 
Leased and owned hotels   334    334    204    119    -41.8%   218    175    -20.0%   93.6%   68.1%   -25.5 
Manachised and franchised hotels   1554    1554    176    108    -38.7%   189    161    -14.5%   93.0%   66.7%   -26.3 
Midscale and upscale hotels   773    773    283    165    -41.5%   333    279    -16.3%   84.8%   59.3%   -25.5 
Leased and owned hotels   155    155    348    170    -51.0%   401    312    -22.3%   86.6%   54.7%   -31.9 
Manachised and franchised hotels   618    618    261    164    -37.3%   310    269    -13.2%   84.2%   60.8%   -23.4 
Total   2661    2661    217    129    -40.4%   240    201    -16.3%   90.3%   64.3%   -25.9 

 

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Operating Results: Legacy-DH(5)

 

   Number of hotels   Number of
rooms
   Unopened hotels
in pipeline
 
  

Opened

in Q2 2022

  

Closed

in Q2 2022

  

Net added

in Q2 2022

  

As of
June 30, 2022(6)

  

As of

June 30,2022

  

As of

June 30,2022

 
Leased hotels   2    -    2    79    14,939    25 
Manachised and franchised hotels   3    -    3    46    10,017    12 
Total   5    -    5    125    24,956    37 

 

(5)Legacy-DH refers to DH.
(6)As of June 30, 2022, a total of 3 hotels were temporarily closed. 1 hotel was closed for renovation and 1 hotel was closed due to flood damage. Additionally, 1 hotel was temporarily closed due to extensive hotel refurbishment.

 

 

   For the quarter ended     
   June 30,   March 31,   June 30,   yoy 
   2021   2022   2022   change 
Average daily room rate (in EUR)                
Leased hotels   85.2    90.0    112.6    32.2%
Manachised and franchised hotels   77.9    85.5    106.7    37.0%
Blended   81.5    88.0    110.4    35.5%
Occupancy rate (as a percentage)                    
Leased hotels   20.0%   34.1%   61.2%   +41.2p.p.
Managed and franchised hotels   30.8%   44.0%   57.9%   +27.1p.p.
Blended   24.4%   38.0%   59.8%   +35.4p.p.
RevPAR (in EUR)                    
Leased hotels   17.0    30.7    68.9    305.3%
Managed and franchised hotels   24.0    37.6    61.8    157.5%
Blended   19.8    33.4    66.0    233.3%

 

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Hotel Portfolio by Brand

 

   As of June 30, 2022 
   Hotels   Rooms   Unopened hotels 
   in operation   in pipeline 
Economy hotels   4,874    384,177    985 
HanTing Hotel   3,124    277,284    626 
Hi Inn   458    24,036    120 
Ni Hao Hotel   106    7,503    188 
Elan Hotel   952    50,910    7 
Ibis Hotel   219    22,734    33 
Zleep Hotels   15    1,710    11 
Midscale hotels   2,666    291,349    949 
Ibis Styles Hotel   84    8,679    13 
Starway Hotel   557    44,683    185 
JI Hotel   1,515    180,847    528 
Orange Hotel   479    52,168    215 
CitiGO Hotel   31    4,972    8 
Upper midscale hotels   494    72,304    244 
Crystal Orange Hotel   155    20,639    56 
Manxin Hotel   99    9,432    52 
Madison Hotel   43    6,346    55 
Mercure Hotel   131    22,533    43 
Novotel Hotel   15    4,032    14 
IntercityHotel(7)   51    9,322    24 
Upscale hotels   118    20,367    51 
Jaz in the City   3    587    1 
Joya Hotel   8    1,386    - 
Blossom House   39    1,888    28 
Grand Mercure Hotel   7    1,485    5 
Steigenberger Hotels & Resorts(8)   53    13,710    9 
MAXX (9)   8    1,311    8 
Luxury hotels   15    2,326    2 
Steigenberger Icon(10)   9    1,847    1 
Song Hotels   6    479    1 
Others   9    3,375    5 
Other hotels(11)   9    3,375    5 
Total   8,176    773,898    2,236 

 

(7)As of June 30, 2022, 2 operational hotels and 9 pipeline hotels of IntercityHotel were in China.
(8) As of June 30, 2022, 11 operational hotels and 2 pipeline hotels of Steigenberger Hotels & Resorts were in China.
(9)As of June 30, 2022, 2 operational hotels and 8 pipeline hotels of MAXX were in China.
(10)As of June 30, 2022, 3 operational hotels of Steigenberger Icon were in China.
(11)Other hotels include other partner hotels and other hotel brands in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House).

 

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About H World Group Limited

 

Originated in China, H World Group Limited is a world-leading hotel group. As of June 30, 2022, H World operated 8,176 hotels with 773,898 rooms in operation in 17 countries. H World’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, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song Hotels. In addition, H World 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.

 

H World’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, H World directly operates hotels typically located on leased or owned properties. Under the manachise model, H World manages manachised hotels through the on-site hotel managers that H World appoints, and H World collects fees from franchisees. Under the franchise model, H World provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. H World applies a consistent standard and platform across all of its hotels. As of June 30, 2022, H World 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 H World’s website: https://ir.hworld.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.

 

H World 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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