Huazhu Group Limited Announces Its Preliminary Results for Hotel Operation in the First Quarter of 2019
April 18 2019 - 3:00AM
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
first quarter ended March 31, 2019.
Operating Metrics
|
|
|
|
For the quarter
ended |
|
|
March 31, |
December 31, |
March 31, |
yoy |
|
2018 |
2018 |
2019 |
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned
hotels |
243 |
275 |
258 |
6.3% |
Manachised
hotels |
194 |
216 |
210 |
8.0% |
Franchised
hotels |
228 |
248 |
237 |
3.6% |
Blended |
207 |
230 |
221 |
6.9% |
Occupancy rate (as a percentage) |
|
|
|
Leased and owned
hotels |
85.6% |
86.7% |
83.6% |
-2.0pp |
Manachised
hotels |
84.0% |
85.5% |
80.5% |
-3.5pp |
Franchised
hotels |
69.8% |
74.5% |
68.6% |
-1.2pp |
Blended |
83.7% |
85.2% |
80.6% |
-3.1pp |
RevPAR (in
RMB) |
|
|
|
|
Leased and owned
hotels |
208 |
238 |
216 |
3.8% |
Manachised
hotels |
163 |
185 |
169 |
3.5% |
Franchised
hotels |
159 |
185 |
162 |
1.8% |
Blended |
173 |
196 |
178 |
2.9% |
|
|
|
|
|
Same-hotel operational data (Like-for-like
performance for hotels opened for at least 18 months during the
current quarter) |
|
|
As of and for the
quarter ended |
|
|
March 31, |
yoy |
|
2018 |
2019 |
change |
Total |
3,189 |
3,189 |
|
Leased and owned
hotels |
608 |
608 |
|
Manachised and
franchised hotels |
2,581 |
2,581 |
|
Occupancy rate (as a
percentage) |
86.1% |
83.4% |
-2.8pp |
Average daily room rate
(in RMB) |
205 |
211 |
2.9% |
RevPAR
(in RMB) |
176 |
176 |
-0.4% |
Note: Excluding hotel
rooms under renovations for product upgrades, the normalized
same-hotel RevPAR growth would be flat (0). |
Hotel Development
|
|
|
|
|
Number of hotels in operation |
|
Number of rooms in operation |
|
Opened |
Closed (1) |
Net
added |
As
of |
|
Net
added |
As
of |
|
in Q1 2019 |
in Q1 2019 |
in Q1 2019 |
March 31, 2019 |
|
in Q1 2019 |
March 31, 2019 |
Leased and owned
hotels |
11 |
(12) |
(1) |
698 |
|
979 |
87,766 |
Manachised and
franchised hotels |
215 |
(48) |
167 |
3,698 |
|
15,888 |
351,848 |
Total |
226 |
(60) |
166 |
4,396 |
|
16,867 |
439,614 |
(1) Reasons for closures include property-related
issues, operating loss and non-compliance issues. In Q1 2019, eight
hotels were temporarily closed for brand upgrade. |
|
|
|
Number of hotels in pipeline as of March
31, 2019 |
Leased hotels |
50 |
Manachised and
franchised hotels |
1,261 |
Total(2) |
1,311 |
(2) Including 202 hotels under brands of
ibis, ibis Styles, Mercure, Grand Mercure and Novotel; 148 hotels
under brands of Orange Select and Crystal Orange,22 hotels under
brand of Blossom Hill. |
Business Update by Segment
Hotel breakdown by segment |
|
|
|
|
Number of hotels in
operation |
|
Net added |
As of |
|
in Q1 2019 |
March 31, 2019 |
Economy
hotels |
24 |
2,916 |
HanTing
Hotel |
20 |
2,303 |
Hi Inn |
(3) |
399 |
Elan Hotel |
7 |
207 |
Orange Hotel |
0 |
7 |
Midscale and
upscale hotels |
142 |
1,480 |
JI Hotel |
58 |
611 |
Starway
Hotel |
18 |
230 |
Joya Hotel |
0 |
6 |
Manxin Hotels
& Resorts |
4 |
28 |
HanTing Premium
Hotel |
17 |
91 |
Ibis Hotel |
12 |
149 |
Ibis Styles
Hotel |
3 |
37 |
Mercure
Hotel |
6 |
45 |
Novotel
Hotel |
0 |
7 |
Grand
Mercure |
1 |
7 |
Orange
Select |
17 |
189 |
Crystal
Orange |
4 |
60 |
Blossom
Hill |
2 |
20 |
Total |
166 |
4,396 |
|
|
|
|
|
|
|
|
|
|
|
Same-hotel operational data by segment |
|
|
|
|
|
|
|
|
|
|
|
Number of hotels in operation |
Same-hotel RevPAR |
|
Same-hotel ADR |
|
Same-hotel Occupancy |
|
|
As of |
For the quarter ended |
|
For the quarter ended |
|
For the quarter ended |
|
|
March 31, |
March 31, |
yoy change |
March 31, |
yoy change |
March 31, |
yoy change (p.p.) |
|
2018 |
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
2019 |
Economy
hotels |
2,481 |
2,481 |
152 |
152 |
0.1% |
170 |
176 |
3.7% |
89% |
86% |
(3.1) |
Leased
hotels |
439 |
439 |
161 |
167 |
4.0% |
181 |
191 |
5.4% |
89% |
88% |
(1.1) |
Manachised and
franchised hotels |
2,042 |
2,042 |
149 |
148 |
-1.1% |
167 |
172 |
3.1% |
89% |
86% |
(3.6) |
Midscale and upscale hotels |
708 |
708 |
240 |
237 |
-1.1% |
306 |
310 |
1.3% |
78% |
76% |
(1.9) |
Leased and owned
hotels |
169 |
169 |
295 |
287 |
-2.8% |
360 |
362 |
0.4% |
82% |
79% |
(2.6) |
Manachised and
franchised hotels |
539 |
539 |
216 |
216 |
-0.1% |
281 |
286 |
2.0% |
77% |
75% |
(1.6) |
Total |
3,189 |
3,189 |
176 |
176 |
-0.4% |
205 |
211 |
2.9% |
86% |
83% |
(2.8) |
|
|
|
|
|
|
|
|
|
|
|
|
About Huazhu Group
LimitedHuazhu Group Limited is a leading hotel operator
and franchisor in China. As of March 31, 2019, the Company had
4,396 hotels or 439,614 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, Crystal Orange Hotel,
Orange Hotel Select, 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 March 31, 2019, Huazhu Group operates 20 percent
of its hotel rooms under lease and ownership model, 80 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 InformationInvestor RelationsTel: 86
(21) 6195 9561Email: ir@huazhu.comhttp://ir.huazhu.com
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