Globe Newswire

2019-07-17 09:00

Huazhu Group Limited Announces Its Preliminary Results for Hotel Operation in the Second Quarter of 2019

  • Net revenue for 2019 Q2 is expected to increase by 13%-15% year-over-year, in-line with guidance;
  • Our hotel pipeline further accelerated to historical high of 1,553 at 2019 Q2.

SHANGHAI, China, July 16, 2019 (GLOBE NEWSWIRE) -- Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu”, or the “Company”), a leading and fast-growing multi-brand hotel group in China, today announced its preliminary results for the hotel operation in the second quarter ended June 30, 2019.

Hotel Development

 Number of hotels in operation Number of rooms in operation
 Opened Closed (1)Net added As of  Net added As of 
 in Q2 2019in Q2 2019in Q2 2019June 30, 2019 in Q2 2019June 30, 2019
Leased and owned hotels8(10)(2)696 (587)87,179
Manachised and franchised hotels303(32)271 3,969 24,269 376,117
Total  311   (42)  269    4,665    23,682    463,296
        
(1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q2 2019, 20 hotels were temporarily closed for brand upgrade. 


 As of June 30, 2019
 Number of hotels in operationNumber of hotels in pipeline
Economy hotels2,990433
Leased and owned hotels4352
Manachised and franchised hotels2,555431
Midscale and upscale hotels1,6751,120
Leased and owned hotels26153
Manachised and franchised hotels1,4141,067
Total4,6651,553
   

Operating Metrics

 For the quarter ended 
 June 30,March 31,June 30,yoy
 201820192019change
Average daily room rate  (in RMB)   
Leased and owned hotels270 258 281 4.3%
Manachised hotels212 210 224 5.8%
Franchised hotels248 237 246 -0.7%
Blended226 221 236 4.4%
Occupancy rate (as a percentage)   
Leased and owned hotels91.4%83.6%89.4%-1.9pp
Manachised hotels89.8%80.5%87.1%-2.8pp
Franchised hotels78.7%68.6%75.1%-3.6pp
Blended89.6%80.6%86.9%-2.7pp
RevPAR  (in RMB)    
Leased and owned hotels246 216 252 2.1%
Manachised hotels190 169 195 2.5%
Franchised hotels195 162 185 -5.2%
Blended203 178 206 1.3%
     

 

Business Update by Segment

Hotel breakdown by brand  
  
 Number of hotels in operation
 Net added As of 
 in Q2 2019June 30, 2019
Economy hotels74  2,990
HanTing Hotel28 2,331
Hi Inn16 415
Elan Hotel37 244
Orange Hotel(2)(7)0
Midscale and upscale hotels195  1,675
JI Hotel55 666
Starway Hotel35 265
Joya Hotel0 6
Manxin Hotels & Resorts7 35
HanTing Premium Hotel38 129
Ibis Hotel10 159
Ibis Styles Hotel7 44
Mercure Hotel7 52
Novotel Hotel2 9
Grand Mercure1 8
Orange Select27 216
Crystal Orange6 66
Blossom Hill0 20
Total  269    4,665
(2) Orange Hotel was rebranded as Orange Select in Q2 2019.


Same-hotel operational data by segment          
 Number of hotels in operationSame-hotel RevPAR Same-hotel ADR Same-hotel Occupancy 
 As of
June 30,
For the quarter ended
June 30,
 For the quarter ended
June 30,
 For the quarter ended
June 30,
 
 yoy
change
yoy
change
yoy
change
(p.p.)
 
 2018201920182019201820192018 2019 
Economy hotels2,4892,489175171-2.0%1851870.9%94.3%91.6%-2.7
Leased hotels4244241891910.6%2022062.1%94.0%92.7%-1.4
Manachised and franchised hotels2,0652,065171166-2.7%1811820.6%94.4%91.3%-3.0
Midscale and upscale hotels788788278272-2.4%325323-0.7%85.5%84.1%-1.4
Leased and owned hotels179179346334-3.5%392383-2.2%88.5%87.3%-1.2
Manachised and franchised hotels609609251247-1.8%2982980.0%84.3%82,8%-1.5
Total3,2773,277206202-2.1%2252260.4%91.7%89.3%-2.3
                

About Huazhu Group Limited
Huazhu Group Limited is a leading hotel operator and franchisor in China. As of June 30, 2019, the Company had 4,665 hotels or 463,296 rooms in operation. With a primary focus on economy and midscale hotel segments, Huazhu’s brands include Hi Inn, Elan Hotel, HanTing Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel, Manxin Hotel, Joya Hotel, Orange Hotel Select, Crystal Orange Hotel and Blossom Hill. The Company also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in Pan-China region. The Company's business includes leased and owned, manachised and franchised models. Under the lease and ownership model, the Company directly operates hotels typically located on leased or owned properties. Under the manachise model, the Company manages manachised hotels through the on-site hotel managers it appoints and collects fees from franchisees. Under the franchise model, the Company provides training, reservation and support services to the franchised hotels and collects fees from franchisees but does not appoint on-site hotel managers. The Company applies a consistent standard and platform across all of its hotels. As of June 30, 2019, Huazhu Group operates 19 percent of its hotel rooms under lease and ownership model, 81 percent under manachise and franchise models.

For more information, please visit the Company’s website: http://ir.huazhu.com.

Safe Harbor Statement Under the 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 customers and leverage our brand; trends and competition in the lodging industry; the expected growth of the lodging market in China; and other factors and risks detailed in our filings with the 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.

The Company 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
Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com

source: Huazhu Group Limited

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