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HUAZHU GROUP LIMITED

(HTHT)
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Huazhu Group Limited : Announces Preliminary Results for Hotel Operations in the Second Quarter of 2021

07/22/2021 | 07:31am EDT

SHANGHAI, China, July 22, 2021 (GLOBE NEWSWIRE) -- 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 second quarter (“Q2 2021”) ended June 30, 2021.

COVID-19 update
For our Legacy-Huazhu business, the RevPAR in 2Q2021 recovered to 102% of 2019, slightly below our previous expectation. RevPAR recovery in June achieved 100%, slowing down from 106% in May. It was mainly due to COVID-19 resurgence in Guangdong Province and traffic control in Beijing for the celebration of centenary of the Communist Party of China since late May. However, if excluding the impact of Guangdong Province and Beijing, our RevPAR recovery was on track. In July, with the COVID-19 resurgence in Guangdong effectively contained and relaxation of travel restriction in Beijing, our RevPAR recovery resumed.

Steigenberger Hotels AG and its subsidiaries (“DH”) saw an initial recovery of hotel demand along with vaccination process in Germany since the first lockdown in November 2020. As of July 16th, 2021, almost 60% of Germans have received at least one shot of vaccine. In July, the recovery continued with occupancy rate reaching 35%. But the recovery is still uncertain given that the recent news shows there is possibly another upcoming wave of delta variant of COVID-19 resurgence in European countries.

Operating Results: Legacy-Huazhu(1)

 Number of hotels  Number of rooms
 Opened
in Q2 2021
Closed (2)
in Q2 2021
Net added
in Q2 2021
As of
June 30, 2021 (3)
 As of
June 30, 2021
  
Leased and owned hotels18(7)11675 91,892
Manachised and franchised hotels381(149)2326,329 575,778
Total399(156)2437,004 667,670
        
(1)   Legacy-Huazhu refers to Huazhu and its subsidiaries, excluding DH.
(2)   The reasons for hotel closures mainly include non-compliance with our brand standards, operating losses, and property-related issues. In Q2 2021, we temporarily closed 8 hotels for brand upgrade and business model change purposes.
(3)   As of June 30, 2021, 32 hotels were requisitioned by governmental authorities.


 As of June 30, 2021
 Number of hotels Unopened hotels in pipeline
Economy hotels4,4511,295
Leased and owned hotels4173
Manachised and franchised hotels4,0341,292
Midscale and upscale hotels2,5531,401
Leased and owned hotels25813
Manachised and franchised hotels2,2951,388
Total7,0042,696


Operational hotels excluding hotels under requisition
 For the quarter ended 
 June 30,March 31,June 30,yoy
 202020212021change
Average daily room rate (in RMB)   
Leased and owned hotels20524331151.8%
Manachised and franchised hotels18120324636.2%
Blended18520925538.3%
Occupancy rate (as a percentage)   
Leased and owned hotels67.4%64.0%81.1%13.7 p.p.
Manachised and franchised hotels69.1%66.6%82.5%13.4 p.p.
Blended68.8%66.2%82.3%13.5 p.p.
RevPAR (in RMB)    
Leased and owned hotels13815625282.7%
Manachised and franchised hotels12513520362.7%
Blended12713821065.5%


 For the quarter ended
 June 30,June 30,yoy
 20192021change
Average daily room rate (in RMB)  
Leased and owned hotels28131110.4%
Manachised and franchised hotels2252469.2%
Blended2362557.9%
Occupancy rate (as a percentage)  
Leased and owned hotels89.4%81.1%-8.4p.p.
Manachised and franchised hotels86.3%82.5%-3.8p.p.
Blended86.9%82.3%-4.6p.p.
RevPAR (in RMB)   
Leased and owned hotels2522520.1%
Manachised and franchised hotels1942034.4%
Blended2062102.2%


Same-hotel operational data by class        
Mature hotels in operation for more than 18 months (excluding hotels under requisition)
 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
 As of
June 30,

For the quarter yoyFor the quarter yoyFor the quarter yoy
 ended
June 30,
changeended
June 30,
changeended
June 30,
change
 2020202120202021 20202021 2020 2021 (p.p.)
Economy hotels3,0173,01710716857.7%14619634.4%73.1%85.8%12.7
Leased and owned hotels40840810919175.7%15422747.6%70.8%84.2%13.5
Manachised and franchised hotels2,6092,60910616353.6%14418931.3%73.7%86.2%12.5
Midscale and upscale hotels1,5201,52017227257.8%25433632.3%68.0%81.0%13.1
Leased and owned hotels21321318231673.3%28540542.3%64.0%77.9%13.9
Manachised and franchised hotels1,3071,30717026254.1%24732129.9%68.9%81.7%12.8
Total4,5374,53713321058.1%18725033.9%71.1%83.9%12.8


 
 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
 As of
June 30,

For the quarter yoyFor the quarter yoyFor the quarter yoy
 ended
June 30,
changeended
June 30,
changeended
June 30,
change
 2019202120192021 20192021 2019 2021 (p.p.)
Economy hotels2,3082,308179168-5.9%1931951.2%92.5%86.0%-6.5
Leased and owned hotels392392202187-7.2%2172232.9%93.3%84.1%-9.2
Manachised and franchised hotels1,9161,916172163-5.6%1871880.8%92.3%86.5%-5.8
Midscale and upscale hotels931931285269-5.7%3373380.1%84.6%79.7%-4.9
Leased and owned hotels184184350311-11.1%406401-1.4%86.1%77.7%-8.5
Manachised and franchised hotels747747264255-3.3%3143171.1%84.1%80.4%-3.7
Total3,2393,239216203-5.7%2402431.0%89.7%83.8%-6.0

Operating Results: Legacy-DH(4)

 Number of hotels Number of
rooms
 Unopened hotels
in pipeline
 Opened
in Q2 2021
Closed
in Q2 2021
Net added
in Q2 2021
As of
June 30,
2021
(5)
 

 

As of
June 30, 2021
 

 

As of
June 30, 2021
 
Leased hotels1-174 13,839 27
Manachised and franchised hotels1-148 10,775 11
Total2-2122 24,614 38
         
(4)    Legacy-DH refers to DH.
(5)   As of June 30, 2021, a total of 5 DH brand hotels were temporarily closed due to COVID-19, and 1 hotel was closed for renovation.


 For the quarter ended 
 June 30,March 31,June 30,yoy
 2020 2021 2021 change
Average daily room rate (in EUR)    
Leased hotels82.4 77.9 85.2 3.4%
Manachised and franchised hotels96.5 59.0 77.9 -19.3%
Blended86.5 68.5 81.5 -5.8%
Occupancy rate (as a percentage)    
Leased hotels18.7%14.6%20.0%1.3%
Managed and franchised hotels17.3%26.5%30.8%13.5%
Blended18.3%18.8%24.4%6.1%
RevPAR (in EUR)    
Leased hotels15.4 11.4 17.04 10.7%
Managed and franchised hotels16.7 15.6 24.01 43.5%
Blended15.8 12.9 19.85 25.6%

Hotel Portfolio by Brand

 Total
 HotelsRoomsUnopened hotels
 in operationin pipeline
Economy hotels4,465370,2971,307
HanTing Hotel2,834260,252740
Hi Inn43025,41983
Elan Hotel(6)97660,645431
Ibis Hotel21122,32041
Zleep Hotels141,66112
Midscale hotels2,146241,3701,121
Ibis Styles Hotel789,04619
Starway Hotel47739,524279
JI Hotel1,203148,008616
Orange Hotel36040,285202
CitiGO Hotel(7)284,5075
Upper midscale hotels40861,350250
Crystal Orange Hotel12917,51760
Manxin Hotel686,76454
Madison Hotel314,74540
Mercure Hotel11719,78657
Novotel Hotel133,57917
IntercityHotel(8)488,53520
Upscale hotels10117,68154
Joya Hotel91,7600
Blossom House291,42030
Grand Mercure Hotel71,4856
Steigenberger Hotels & Resorts(9)5112,23912
MAXX (10)57776
Jaz in the City24242
Others61,5862
Other hotels(11)61,5862
Total7,126692,2842,734

(6)   As of June 30, 2021, 17 Ni Hao Hotels were included in the operational hotel for Elan Hotels and 111 Ni Hao hotels were included in the pipeline for Elan Hotels.
(7)   We completed CitiGO acquisition in May 2021.
(8)   As of June 30, 2021, 2 operational hotels and 4 pipeline hotels of IntercityHotel were in China.
(9)   As of June 30, 2021, 1 operational hotel and 5 pipeline hotels of Steigenberger Hotels & Resorts were in China.
(10) As of June 30, 2021, 5 pipeline hotels of MAXX 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 Huazhu Group Limited
Originated in China, Huazhu Group Limited is a world-leading hotel group. As of June 30, 2021, Huazhu operated 7,126 hotels with 692,284 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 June 30, 2021, Huazhu operates 15 percent of its hotel rooms under lease and ownership model, and 85 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.

Contact Information
Huazhu Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com


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Source: Huazhu Group Limited

2021 GlobeNewswire, Inc., source Press Releases

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Hui Chen Chief Financial & Compliance Officer
Jiong Wu Independent Director
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