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 October 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 Third Quarter of 2022

 

 

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: October 25, 2022	By:	/s/ Qi Ji
	Name:	Qi Ji
	Title:	Executive Chairman of the Board of Directors

 

 

 

Exhibit 99.1

 

 

Contact Information

Investor Relations

Tel: +86 (21) 6195 9561

Email: ir@hworld.com

https://ir.hworld.com

 

H World Group Limited Announces Preliminary Results for Hotel Operations

in the Third Quarter of 2022

 

Shanghai, China, October 25, 2022 – H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”), a key player in the global hotel industry, today announced preliminary results for hotel operations in the third quarter (“Q3 2022”) ended September 30, 2022.

 

COVID-19 update

 

For our Legacy-Huazhu business, our RevPAR in Q3 2022 recovered to 90% of the 2019 level, thanks to pent-up leisure travelling demand in the summer holiday during July and August 2022, as well as gradual recovery of business travelling in late September 2022. Breaking down into each month, our RevPAR in July, August and September 2022 recovered to 90%, 89% and 90% of the 2019 levels, respectively. However, we remain cautious on the recovery path in Q4 2022 as we are seeing more sporadic resurgences of COVID in various provinces and cities in China recently.

 

Steigenberger Hotels AG and its subsidiaries (“DH”, or “Legacy-DH”) have experienced continuing RevPAR recovery in Q3 2022. After recovering to 93% of 2019 levels in Q2 2022, blended RevPAR increased to 102% of 2019 levels in Q3 2022. Blended RevPAR recovery was driven by a 17% increase in ADR, while occupancy remained 10 percentage points behind 2019 levels. Due to expected energy shortages and resulting high inflation rates in Europe, further ADR increases will be required to cover the cost increases. Therefore, the focus of DH will continue to be on efficiency improvements, re-negotiation of lease contracts, and personnel cost optimization.

 

 

 

Operating Results: Legacy-Huazhu⁽¹⁾

 

		Number of hotels																Number of rooms
		Opened in Q3 2022				Closed (2) in Q3 2022				Net added in Q3 2022				As of September 30, 2022 (3)				As of September 30, 2022
Leased and owned hotels			4				(19	)			(15	)			631				90,034
Manachised and franchised hotels			425				(185	)			240				7,645				682,193
Total			429				(204	)			225				8,276				772,227
(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 Q3 2022, we temporarily closed 14 hotels for brand upgrade and business model change purposes. (3)     As of September 30, 2022, 558 hotels were requisitioned by governmental authorities.

  

		As of September 30, 2022
		Number of hotels				Unopened hotels in pipeline
Economy hotels			4,898				950
Leased and owned hotels			363				1
Manachised and franchised hotels			4,535				949
Midscale and upscale hotels			3,378				1,324
Leased and owned hotels			268				16
Manachised and franchised hotels			3,110				1,308
Total			8,276				2,274

 

 

 

Operational hotels excluding hotels under requisition(4)
		For the quarter ended
		September 30,				June 30,				September 30,				yoy
		2021				2022				2022				change
Average daily room rate (in RMB)
Leased and owned hotels			296				243				294				-0.6	%
Manachised and franchised hotels			238				215				248				4.3	%
Blended			246				218				254				3.1	%
Occupancy Rate (as a percentage)
Leased and owned hotels			69.7	%			62.9	%			73.1	%			+3.4 p.p.
Manachised and franchised hotels			72.2	%			64.9	%			76.4	%			+4.2 p.p.
Blended			71.9	%			64.6	%			76.0	%			+4.2 p.p.
RevPAR (in RMB)
Leased and owned hotels			206				153				215				4.2	%
Manachised and franchised hotels			172				139				190				10.4	%
Blended			177				141				193				9.1	%

 

 

		For the quarter ended
		September 30,				September 30,				yoy
		2019				2022				change
Average daily room rate (in RMB)
Leased and owned hotels			288				294				2.1	%
Manachised and franchised hotels			235				248				5.5	%
Blended			245				254				3.4	%
Occupancy Rate (as a percentage)
Leased and owned hotels			90.0	%			73.1	%			-16.9 p.p.
Manachised and franchised hotels			87.2	%			76.4	%			-10.8 p.p.
Blended			87.7	%			76.0	%			-11.7 p.p.
RevPAR (in RMB)
Leased and owned hotels			259				215				-17.1	%
Manachised and franchised hotels			205				190				-7.5	%
Blended			215				193				-10.3	%

 

(4)     If including hotels under requisition, RevPAR in Q3 2022 would have been 90% of the 2019 level.

 

 

 

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 September 30,								For the quarter ended September 30,								yoy change				For the quarter  ended September 30,								yoy change				For the quarter  ended September 30,								yoy change
		2021				2022				2021				2022								2021				2022								2021				2022				(p.p.)
Economy hotels			3,366				3,366				146				148				1.4	%			189				188				-0.7	%			77.0	%			78.6	%			+1.6
Leased and owned hotels			363				363				158				164				3.7	%			215				211				-1.8	%			73.5	%			77.6	%			+4.1
Manachised and franchised hotels			3,003				3,003				143				145				1.0	%			185				184				-0.5	%			77.6	%			78.7	%			+1.1
Midscale and upscale hotels			2,122				2,122				228				242				6.2	%			324				322				-0.5	%			70.3	%			75.0	%			+4.7
Leased and owned hotels			233				233				261				273				4.6	%			398				389				-2.4	%			65.5	%			70.3	%			+4.7
Manachised and franchised hotels			1,889				1,889				221				236				6.6	%			311				311				0.0	%			71.2	%			75.8	%			+4.7
Total			5,488				5,488				183				190				3.9	%			248				248				-0.2	%			73.9	%			76.9	%			+3.0

 

		Number of hotels								Same-hotel RevPAR												Same-hotel ADR												Same-hotel Occupancy
		As of September 30,								For the quarter ended September 30,								yoy change				For the quarter ended September 30,								yoy change				For the quarter ended September 30,								yoy change
		2019				2022				2019				2022								2019				2022								2019				2022				(p.p.)
Economy hotels			2,057				2,057				189				147				-22.5	%			203				187				-7.5	%			93.5	%			78.4	%			-15.2
Leased and owned hotels			346				346				211				161				-23.5	%			226				208				-7.9	%			93.4	%			77.5	%			-15.9
Manachised and franchised hotels			1,711				1,711				184				143				-22.1	%			196				182				-7.3	%			93.5	%			78.6	%			-14.9
Midscale and upscale hotels			994				994				295				234				-20.7	%			341				319				-6.3	%			86.7	%			73.4	%			-13.2
Leased and owned hotels			181				181				354				251				-29.2	%			405				362				-10.5	%			87.5	%			69.2	%			-18.2
Manachised and franchised hotels			813				813				277				229				-17.3	%			321				307				-4.3	%			86.4	%			74.7	%			-11.7
Total			3,051				3,051				230				180				-21.6	%			254				236				-6.9	%			90.9	%			76.5	%			-14.4

 

 

 

Operating Results: Legacy-DH⁽⁵⁾

 

		Number of hotels																Number of rooms				Unopened hotels in pipeline
		Opened in Q3 2022				Closed in Q3 2022				Net added in Q3 2022				As of September 30, 2022(6)				As of September 30,2022				As of September 30,2022
Leased hotels			-				-				-				79				14,939				27
Manachised and franchised hotels			1				-				1				47				10,323				12
Total			1				-				1				126				25,262				39

(5)	Legacy-DH refers to DH.
(6)	As of September 30, 2022, 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 temporarily closed due to extensive hotel refurbishment, and 1 hotel was temporarily closed due to seasonal break .

 

		For the quarter ended
		September 30,				June 30,				September 30,				yoy
		2021				2022				2022				change
Average daily room rate  (in EUR)
Leased hotels			94.3				112.6				112.9				19.7	%
Manachised and franchised hotels			104.5				106.7				115.6				10.6	%
Blended			98.6				110.4				113.9				15.5	%
Occupancy rate (as a percentage)
Leased hotels			48.0	%			61.2	%			67.4	%			+19.5 p.p.
Managed and franchised hotels			49.4	%			57.9	%			64.1	%			+14.7 p.p.
Blended			48.6	%			59.8	%			66.1	%			+17.5 p.p.
RevPAR  (in EUR)
Leased hotels			45.3				68.9				76.1				68.2	%
Managed and franchised hotels			51.6				61.8				74.1				43.5	%
Blended			47.9				66.0				75.3				57.2	%

 

 

 

Hotel Portfolio by Brand

 

		As of September 30, 2022
		Hotels				Rooms				Unopened hotels
		in operation								in pipeline
Economy hotels			4,913				386,911				964
HanTing Hotel			3,207				285,313				603
Hi Inn			460				24,128				127
Ni Hao Hotel			140				10,074				192
Elan Hotel			868				42,810				-
Ibis Hotel			223				22,876				28
Zleep Hotels			15				1,710				14
Midscale hotels			2,816				308,164				1,001
Ibis Styles Hotel			85				8,864				18
Starway Hotel			565				46,492				212
JI Hotel			1,629				192,872				534
Orange Hotel			505				54,822				229
CitiGO Hotel			32				5,114				8
Upper midscale hotels			525				75,500				263
Crystal Orange Hotel			161				21,314				53
Manxin Hotel			111				10,443				52
Madison Hotel			50				7,276				62
Mercure Hotel			133				22,250				54
Novotel Hotel			17				4,424				18
IntercityHotel(7)			53				9,793				24
Upscale hotels			124				21,223				76
Jaz in the City			3				587				1
Joya Hotel			8				1,368				1
Blossom House			43				2,055				52
Grand Mercure Hotel			8				1,897				5
Steigenberger Hotels & Resorts(8)			53				13,754				10
MAXX (9)			9				1,562				7
Luxury hotels			15				2,326				4
Steigenberger Icon(10)			9				1,847				1
Song Hotels			6				479				3
Others			9				3,365				5
Other hotels(11)			9				3,365				5
Total			8,402				797,489				2,313

	(7)	As of September 30, 2022, 3 operational hotels and 10 pipeline hotels of IntercityHotel were in China.
	(8)	As of September 30, 2022, 11 operational hotels and 3 pipeline hotels of Steigenberger Hotels & Resorts were in China.
	(9)	As of September 30, 2022, 3 operational hotels and 7 pipeline hotels of MAXX were in China.
	(10)	As of September 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).

 

 

 

About H World Group Limited

 

Originated in China, H World Group Limited is a key player in the global hotel industry. As of September 30, 2022, H World operated 8,402 hotels with 797,489 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 September 30, 2022, H World operates 13 percent of its hotel rooms under lease and ownership model, and 87 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.