Huazhu Group Limited Announces Preliminary Results for Hotel Operations

in the First Quarter of 2022

Shanghai, China, April 28, 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 first quarter ("Q1 2022") ended March 31, 2022.

COVID-19 update

For our Legacy-Huazhu business, RevPAR recovery in the first two months of 2022 was on track. Nevertheless, such recovery was significantly interrupted by the large-scale outbreak of the Omicron variant in over 30 provinces in China since early-March 2022. Many cities, such as Shanghai and Jilin, have been subject to lockdown since then, which resulted in a sharp decline of both business and leisure traveling activities. However, such outbreak led to a rise in demand for hotels to serve the quarantine needs of infected persons or those in close contact with infected persons, as well as the accommodation needs of medical teams and delivery riders. As the Omicron variant is highly infectious, there are still uncertainties in terms of the impact on our Legacy-Huazhu business in the near-term. To mitigate risks, we are now implementing several costs and cash flow management measures.

Steigenberger Hotels AG and its subsidiaries ("DH", or "Legacy-DH") have been experiencing continuous RevPAR recovery since Germany unfolded its opening-up plan in mid-February 2022. RevPAR in March 2022 recovered to 65% of the 2019 level, as compared to only 47% of the 2019 level in January 2022. However, since RevPAR recovery is still at an early stage, a comprehensive cash flow improvement program remains critical. Therefore, DH will continuously focus on efficiency improvements, negotiation of further lease waivers, and personnel cost optimization.

Page 1 of 7

Operating Results: Legacy-Huazhu(1)

Number of hotels Number of rooms
Opened
in Q1 2022
Closed (2)
in Q1 2022
Net added
in Q1 2022
As of
March 31, 2022 (3)
As of
March 31, 2022
Leased and owned hotels 3 (12 ) (9 ) 653 91,163
Manachised and franchised hotels 299 (128 ) 171 7,215 649,330
Total 302 (140 ) 162 7,868 740,493
(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 Q1 2022, we temporarily closed 9 hotels for brand upgrade and business model change purposes.
(3) As of March 31, 2022,1299 hotels were requisitioned by governmental authorities.
As of March 31, 2022
Number of hotels Unopened hotels in pipeline
Economy hotels 4,810 937
Leased and owned hotels 387 4
Manachised and franchised hotels 4,423 933
Midscale and upscale hotels 3,058 1,289
Leased and owned hotels 266 19
Manachised and franchised hotels 2,792 1,270
Total 7,868 2,226

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Operational hotels excluding hotels under requisition

For the quarter ended
March 31, December 31, March 31, yoy
2021 2021 2022 change
Average daily room rate (in RMB)
Leased and owned hotels 243 286 263 8.0 %
Manachised and franchised hotels 203 232 218 7.5 %
Blended 209 239 224 7.2 %
Occupancy Rate (as a percentage)
Leased and owned hotels 64.0 % 67.4 % 56.7 % -7.3p.p.
Manachised and franchised hotels 66.6 % 68.4 % 59.6 % -7.0p.p.
Blended 66.2 % 68.2 % 59.2 % -7.0p.p.
RevPAR (in RMB)
Leased and owned hotels 156 193 149 -4.4 %
Manachised and franchised hotels 135 159 130 -3.8 %
Blended 138 163 132 -4.1 %
For the quarter ended
March 31, March 31, yoy
2019 2022 change
Average daily room rate (in RMB)
Leased and owned hotels 258 263 1.9 %
Manachised and franchised hotels 211 218 3.2 %
Blended 221 224 1.2 %
Occupancy Rate (as a percentage)
Leased and owned hotels 83.6 % 56.7 % -27.0p.p.
Manachised and franchised hotels 79.8 % 59.6 % -20.3p.p.
Blended 80.6 % 59.2 % -21.4p.p.
RevPAR (in RMB)
Leased and owned hotels 216 149 -31.0 %
Manachised and franchised hotels 169 130 -23.0 %
Blended 178 132 -25.7 %

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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
March 31,
ended
March 31,
change ended
March 31,
change ended
March 31,
change
2021 2022 2021 2022 2021 2022 2021 2022 (p.p.)
Economy hotels 3320 3320 115 105 -8.5 % 161 167 4.0 % 71.5 % 62.9 % -8.6
Leased and owned hotels 380 380 121 114 -6.5 % 177 186 4.9 % 68.4 % 61.0 % -7.4
Manachised and franchised hotels 2940 2940 114 104 -8.9 % 158 164 3.8 % 72.0 % 63.2 % -8.8
Midscale and upscale hotels 1905 1905 181 164 -9.4 % 281 289 2.7 % 64.4 % 56.8 % -7.6
Leased and owned hotels 229 229 201 187 -7.3 % 339 352 4.0 % 59.4 % 53.0 % -6.4
Manachised and franchised hotels 1676 1676 177 160 -9.9 % 271 277 2.3 % 65.5 % 57.7 % -7.8
Total 5225 5225 144 131 -8.9 % 210 218 3.5 % 68.4 % 60.2 % -8.2
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
March 31,
ended
March 31,
change ended
March 31,
change ended
March 31,
change
2019 2022 2019 2022 2019 2022 2019 2022 (p.p.)
Economy hotels 2024 2024 160 104 -34.9 % 183 167 -8.7 % 87.5 % 62.4 % -25.1
Leased and owned hotels 358 358 177 111 -37.4 % 200 182 -9.0 % 88.2 % 60.7 % -27.5
Manachised and franchised hotels 1666 1666 155 102 -34.1 % 178 162 -8.6 % 87.3 % 62.9 % -24.4
Midscale and upscale hotels 795 795 251 155 -38.1 % 324 288 -11.1 % 77.3 % 53.8 % -23.5
Leased and owned hotels 170 170 304 171 -43.9 % 383 332 -13.1 % 79.4 % 51.3 % -28.1
Manachised and franchised hotels 625 625 231 149 -35.4 % 302 273 -9.7 % 76.5 % 54.7 % -21.8
Total 2819 2819 191 122 -36.2 % 227 205 -9.9 % 84.0 % 59.4 % -24.6

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Operating Results: Legacy-DH(4)

Number of hotels Number of
rooms
Unopened hotels
in pipeline
Opened
in Q1 2022
Closed
in Q1 2022
Net added
in Q1 2022
As of
March 31, 2022(5)
As of
March 31,2022
As of
March 31,2022
Leased hotels 1 - 1 77 14,472 29
Manachised and franchised hotels - (5 ) (5 ) 43 9,894 16
Total 1 (5 ) (4 ) 120 24,366 45
(4) Legacy-DH refers to DH.
(5) As of March 31, 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 low demand.
For the quarter ended
March 31, December 31, March 31, yoy
2021 2021 2022 change
Average daily room rate (in EUR)
Leased hotels 77.9 95.4 90.0 15.6 %
Manachised and franchised hotels 59.0 92.8 85.5 44.9 %
Blended 68.5 94.2 88.0 28.4 %
Occupancy rate (as a percentage)
Leased hotels 14.6 % 42.8 % 34.1 % +19.5 p.p.
Managed and franchised hotels 26.5 % 50.7 % 44.0 % +17.5 p.p.
Blended 18.8 % 46.1 % 38.0 % +19.2 p.p.
RevPAR (in EUR)
Leased hotels 11.4 40.9 30.7 169.6 %
Managed and franchised hotels 15.6 47.1 37.6 141.0 %
Blended 12.9 43.4 33.4 158.8 %

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Hotel Portfolio by Brand

As of March 31, 2022
Hotels Rooms Unopened hotels
in operation in pipeline
Economy hotels 4,824 388,174 951
HanTing Hotel 3,096 277,885 608
Hi Inn 447 24,682 117
Ni Hao Hotel 83 5,772 178
Elan Hotel 965 55,421 2
Ibis Hotel 219 22,751 32
Zleep Hotels 14 1,663 14
Midscale hotels 2,554 281,168 977
Ibis Styles Hotel 82 8,522 17
Starway Hotel 544 44,740 202
JI Hotel 1,449 173,866 534
Orange Hotel 449 49,231 216
CitiGO Hotel 30 4,809 8
Upper midscale hotels 472 69,267 270
Crystal Orange Hotel 148 19,793 65
Manxin Hotel 91 8,705 54
Madison Hotel 41 6,164 56
Mercure Hotel 128 21,697 53
Novotel Hotel 15 4,032 16
IntercityHotel(6) 49 8,876 26
Upscale hotels 115 20,691 62
Jaz in the City 3 587 1
Joya Hotel 9 1,760 -
Blossom House 36 1,793 34
Grand Mercure Hotel 7 1,485 6
Steigenberger Hotels & Resorts(7) 53 13,889 13
MAXX (8) 7 1,177 8
Luxury hotels 15 2,327 4
Steigenberger Icon(9) 9 1,848 2
Song Hotels 6 479 2
Others 8 3,232 7
Other hotels(10) 8 3,232 7
Total 7,988 764,859 2,271
(6) As of March 31, 2022, 2 operational hotels and 9 pipeline hotels of IntercityHotel were in China.
(7) As of March 31, 2022, 11 operational hotels and 5 pipeline hotels of Steigenberger Hotels & Resorts were in China.
(8) As of March 31, 2022, 2 operational hotels and 7 pipeline hotels of MAXX were in China.
(9) As of March 31, 2022, 3 operational hotels and 1 pipeline hotel of Steigenberger Icon 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 6 of 7

About Huazhu Group Limited

Originated in China, Huazhu Group Limited is a world-leading hotel group. As of March 31, 2022, Huazhu operated 7,988 hotels with 764,859 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, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song 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, 2022, 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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Huazhu Group Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 12:32:04 UTC.