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Jan. 14, 2020, 3:00 a.m. EST

Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2019

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SHANGHAI, China, Jan 14, 2020 (GLOBE NEWSWIRE via COMTEX) -- Huazhu Group Limited /zigman2/quotes/205109633/composite HTHT +4.36% ("Huazhu" or "our"), a leading and fast-growing hotel group, today announced preliminary results for hotel operations in the fourth quarter and the full year ended December 31, 2019.

Hotel Development







        �??                              Number of hotels in operation                                                   �?? Number of rooms in operation
        �??                              Opened             Closed               Net added            As of              �?? Net added            As of
        �??                              in Q4 2019         in Q4 2019           in Q4 2019           December 31, 2019  �?? in Q4 2019           December 31, 2019
        Leased and owned hotels          11                 (20                ) (9                 ) 688                    (741               ) 87,465
        Manachised and franchised hotels 619                (143               ) 476                  4,930                  33,203               449,411
        Total                            630                (163               ) 467                  5,618                  32,462               536,876
        (1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q4 2019, 56 hotels were temporarily closed
		 for brand upgrade and business model change purposes.
        








        �??                              As of December 31, 2019
        �??                              Number of hotels in operation Unopened hotels in pipeline
        Economy hotels                   3,485                         826
        Leased and owned hotels          415                           2
        Manachised and franchised hotels 3,070                         824
        Midscale and upscale hotels      2,133                         1,436
        Leased and owned hotels          273                           41
        Manachised and franchised hotels 1,860                         1,395
        Total                            5,618                         2,262
        


Operating Metrics







        �??                              For the quarter ended                   �??
        �??                              December 31, September 30, December 31, yoy
        �??                              2018         2019          2019         change
        Average daily room rate (in RMB) �??          �??           �??          �??
        Leased and owned hotels          275          288           277          0.9  %
        Manachised and franchised hotels 218          235           223          2.1  %
        Blended                          230          245           232          0.9  %
        Occupancy rate (as a percentage) �??          �??           �??          �??
        Leased and owned hotels          86.7   %     90.0   %      84.7   %     -2.0 pp
        Manachised and franchised hotels 84.8   %     87.2   %      81.6   %     -3.1 pp
        Blended                          85.2   %     87.7   %      82.2   %     -3.0 pp
        RevPAR (in RMB)                  �??          �??           �??          �??
        Leased and owned hotels          238          259           235          -1.4 %
        Manachised and franchised hotels 185          205           182          -1.7 %
        Blended                          196          215           191          -2.7 %
        


(2) Excluding our soft brands (Hi Inn, Elan, Starway, Madison and Grand Madison), the blended RevPAR for 2019Q4 declined by 0.5% year-over-year.







        �??                              For the full year ended
        �??                              December 31, December 31, yoy
        �??                              2018         2019         change
        Average daily room rate (in RMB) �??          �??          �??
        Leased and owned hotels          267          276          3.6  %
        Manachised and franchised hotels 214          224          4.6  %
        Blended                          226          234          3.6  %
        Occupancy rate (as a percentage) �??          �??          �??
        Leased and owned hotels          89.0   %     87.0   %     -2.0 %
        Manachised and franchised hotels 86.9   %     83.8   %     -3.1 %
        Blended                          87.3   %     84.4   %     -3.0 %
        RevPAR (in RMB)                  �??          �??          �??
        Leased and owned hotels          237          240          1.2  %
        Manachised and franchised hotels 186          188          0.8  %
        Blended                          197          198          0.1  %
        


(3) Excluding our soft brands (Hi Inn, Elan, Starway, Madison and Grand Madison), the blended RevPAR for 2019 grew by 0.8%.

Business Update by Segment







        Hotel and room portfolio by brand                 �??           �??       �??                �??
        �??                           �??        �??               �??       �??            �??
        �??                           Number of hotels in operationNumber of rooms in operation
        �??                           Net added  As of             �??       Net added      As of
        �??                           in Q4 2019 December 31, 2019 �??       in Q4 2019     December 31, 2019
        Economy hotels                281        3,485             �??       12,473         290,615
        HanTing Hotel                 (9       ) 2,372             �??       (3,299    )    224,626
        Hi Inn                        15         465               �??       871            28,153
        Elan Hotel                    275        648               �??       14,901         37,836
        Midscale and upscale hotels   186        2,133             �??       19,989         246,261
        HanTing Premium Hotel         34         214               �??       3,363          19,748
        Ibis Hotel                    6          185               �??       472            20,533
        Ibis Styles Hotel             5          55                �??       549            6,681
        Starway Hotel                 33         350               �??       3,099          30,363
        JI Hotel                      72         831               �??       8,289          104,521
        Orange Select Hotel           15         248               �??       1,510          28,821
        Crystal Orange Hotel          8          85                �??       975            11,182
        Manxin Hotels & Resorts       7          46                �??       825            4,133
        Madison Hotel                 4          9                 �??       347            883
        Mercure Hotel                 5          68                �??       530            12,502
        Novotel Hotel                 0          9                 �??       0              2,928
        Grand Madison Hotel           3          4                 �??       569            772
        Joya Hotel                    0          6                 �??       0              1,250
        Blossom Hill Hotels & Resorts (4       ) 17                �??       (79       )    648
        Grand Mercure Hotel           (2       ) 6                 �??       (460      )    1,296
        Total                         467        5,618             �??       32,462         536,876
        �??                           �??        �??               �??       �??            �??
        








        
        Same-hotel operational data by segment
                                         Number of hotels Same-hotel RevPAR              Same-hotel ADR               Same-hotel Occupancy
                                         As of            For the quarter ended yoy      For the quarter ended yoy    For the quarter endedyoy
                                         December 31,     December 31,          change   December 31,          change December 31,         change
                                         2018  2019       2018     2019                  2018     2019                2018       2019      (p.p.)
        Economy hotels                   2,467 2,467      165      155          -6.2 %   183      179          -2.4%  90.0  %    86.5 %    -3.5
        Leased and owned hotels          409   409        180      172          -4.4 %   200      198          -0.7%  90.2  %    86.9 %    -3.3
        Manachised and franchised hotels 2,058 2,058      161      151          -6.7 %   179      174          -2.9%  90.0  %    86.4 %    -3.6
        Midscale and upscale hotels      950   950        266      253          -4.7 %   324      309          -4.4%  82.0  %    81.8 %    -0.2
        Leased and owned hotels          199   199        330      309          -6.3 %   389      366          -5.9%  84.8  %    84.4 %    -0.3
        Manachised and franchised hotels 751   751        243      233          -4.1 %   300      289          -3.8%  81.1  %    80.9 %    -0.2
        Total                            3,417 3,417      199      188          -5.4 %   228      222          -2.7%  87.3  %    84.9 %    -2.4
                                         Number of hotels Same-hotel RevPAR              Same-hotel ADR               Same-hotel Occupancy
                                         As of            For the year ended    yoy      For the year ended    yoy    For the year ended   yoy
                                         December 31,     December 31,          change   December 31,          change December 31,         change
                                         2018  2019       2018     2019                  2018     2019                2018       2019      (p.p.)
        Economy hotels                   2,467 2,467      170      164          -3.0 %   184      184          0.3 %  92.2  %    89.1 %    -3.1
        Leased and owned hotels          409   409        183      182          -0.4 %   198      202          1.7 %  92.0  %    90.0 %    -2.0
        Manachised and franchised hotels 2,058 2,058      166      160          -3.8 %   180      180          -0.2%  92.2  %    88.9 %    -3.3
        Midscale and upscale hotels      950   950        269      261          -3.2 %   323      317          -1.8%  83.4  %    82.2 %    -1.2
        Leased and owned hotels          199   199        332      317          -4.6 %   385      374          -3.0%  86.3  %    84.9 %    -1.4
        Manachised and franchised hotels 751   751        245      239          -2.5 %   298      294          -1.2%  82.3  %    81.2 %    -1.1
        Total                            3,417 3,417      201      194          -3.1 %   224      224          -0.3%  89.5  %    87.0 %    -2.5
        


About Huazhu Group Limited

Huazhu Group Limited is a leading hotel operator and franchisor. As of December 31, 2019, Huazhu operated 5,618 hotels with 536,876 rooms in operation. Huazhu's brands include Hi Inn, Elan Hotel, HanTing Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel, Orange Hotel Select, Crystal Orange Hotel, Manxin Hotels & Resorts, Joya Hotel, and Blossom Hill Hotels & Resorts. 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 completed the acquisition of Deutsche Hospitality on January 2, 2020, further expanding our brands portfolio to include Steigenberger Hotels & Resorts, Maxx by Steigenberger, Jaz Hotel, Intercity Hotel and Zleep Hotel.

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 Huazhu appoints and 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, 2019, 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; the economic conditions of China; the regulatory environment in China; 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 in China; 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

__GNW8366DE3E__IMG

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/zigman2/quotes/205109633/composite
US : U.S.: Nasdaq
$ 38.27
+1.60 +4.36%
Volume: 3.55M
Aug. 11, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$10.68 billion
Rev. per Employee
$112,446
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