Huazhu Announces Its Preliminary Results for Hotel Operation in the Second Quarter of 2018
July 16 2018 - 4:00AM
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 second quarter ended June 30, 2018.
Operating Metrics
|
For the quarter ended |
|
June 30, |
March 31, |
June 30, |
|
2017 |
2018 |
2018 |
Occupancy rate (as a percentage) |
|
|
Leased and owned
hotels |
90.8% |
85.6% |
91.4% |
Manachised
hotels |
90.8% |
84.0% |
89.8% |
Franchised
hotels |
74.4% |
69.8% |
78.7% |
Blended |
90.1% |
83.7% |
89.6% |
Average daily room rate (in RMB) |
|
|
Leased and owned
hotels |
232 |
243 |
270 |
Manachised
hotels |
188 |
194 |
212 |
Franchised
hotels |
203 |
228 |
248 |
Blended |
199 |
207 |
226 |
RevPAR (in
RMB) |
|
|
|
Leased and owned
hotels |
211 |
208 |
246 |
Manachised
hotels |
171 |
163 |
190 |
Franchised
hotels |
151 |
159 |
195 |
Blended |
179 |
173 |
203 |
|
|
|
|
Like-for-like performance for hotels opened for at least 18 months
during the current quarter |
|
|
|
|
|
As of and for the quarter ended |
|
|
June 30, |
yoy |
|
2017 |
2018 |
change |
Total |
2,866 |
2,866 |
|
Leased and owned
hotels |
559 |
559 |
|
Manachised and
franchised hotels |
2,307 |
2,307 |
|
Occupancy rate (as a
percentage) |
92.0% |
92.2% |
0.3% |
Average daily room rate
(in RMB) |
196 |
210 |
7.5% |
RevPAR
(in RMB) |
180 |
194 |
7.9% |
|
|
|
|
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 2018 |
in Q2 2018 |
in Q2 2018 |
June 30, 2018 |
|
in Q2 2018 |
June 30, 2018 |
Leased and owned
hotels |
7 |
(7) |
- |
673 |
|
723 |
86,231 |
Manachised and
franchised hotels |
140 |
(54) |
86 |
3,230 |
|
7,735 |
307,186 |
Total |
147 |
(61) |
86 |
3,903 |
|
8,458 |
393,417 |
(1) Reasons for closures include property-related
issues, operating loss and non-comliance issues. As of June 30,
2018, two manachised hotels were temporarily closed for brand
upgrade. |
|
Number of hotels in pipeline as of June 30, 2018 |
Leased hotels |
39 |
Manachised and
franchised hotels |
800 |
Total(2) |
839 |
(2) Including 145 hotels under brands of
ibis, ibis Styles, Mercure, Grand Mercure and Novotel; 113 hotels
under brands of Orange Select and Crystal Orange. |
Business Update by Segment
Hotel breakdown by
segment |
|
|
|
|
|
Number of hotels in operation |
|
Net added |
As
of |
|
in Q2 2018 |
June 30, 2018 |
Economy
hotels |
(7) |
2,857 |
HanTing
Hotel |
(9) |
2,236 |
Leased hotels |
(12) |
428 |
Manachised hotels |
3 |
1,804 |
Franchised hotels |
0 |
4 |
Hi
Inn |
4 |
395 |
Leased hotels |
(1) |
29 |
Manachised hotels |
2 |
317 |
Franchised hotels |
3 |
49 |
Elan
Hotel |
(2) |
218 |
Manachised hotels |
0 |
188 |
Franchised hotels |
(2) |
30 |
Orange
Hotel |
0 |
8 |
Leased hotels |
0 |
6 |
Manachised hotels |
0 |
1 |
Franchised hotels |
0 |
1 |
Midscale and upscale hotels |
93 |
1,046 |
JI
Hotel |
29 |
452 |
Leased hotels |
0 |
91 |
Manachised hotels |
29 |
359 |
Franchised hotels |
0 |
2 |
Starway
Hotel |
4 |
177 |
Leased hotels |
0 |
2 |
Manachised hotels |
4 |
145 |
Franchised hotels |
0 |
30 |
Joya
Hotel |
0 |
7 |
Leased hotels |
0 |
4 |
Manachised hotels |
0 |
2 |
Franchised hotels |
0 |
1 |
Manxin
Hotels & Resorts |
2 |
17 |
Leased hotels |
0 |
3 |
Manachised hotels |
2 |
11 |
Franchised hotels |
0 |
3 |
HanTing
Premium Hotel |
17 |
45 |
Leased hotels |
6 |
17 |
Manachised hotels |
11 |
28 |
Ibis
Hotel |
7 |
112 |
Leased and owned hotels |
2 |
19 |
Manachised hotels |
7 |
51 |
Franchised hotels |
(2) |
42 |
Ibis
Styles Hotel |
7 |
23 |
Leased hotels |
1 |
1 |
Manachised hotels |
7 |
20 |
Franchised hotels |
(1) |
2 |
Mercure
Hotel |
9 |
28 |
Leased hotels |
2 |
4 |
Manachised hotels |
7 |
19 |
Franchised hotels |
0 |
5 |
Novotel
Hotel |
1 |
5 |
Manachised hotels |
1 |
4 |
Franchised hotels |
0 |
1 |
Grand
Mercure |
1 |
6 |
Leased hotels |
0 |
1 |
Manachised hotels |
1 |
3 |
Franchised hotels |
0 |
2 |
Orange
Select |
13 |
127 |
Leased hotels |
2 |
48 |
Manachised hotels |
5 |
54 |
Franchised hotels |
6 |
25 |
Crystal
Orange |
3 |
47 |
Leased hotels |
0 |
20 |
Manachised hotels |
2 |
18 |
Franchised hotels |
1 |
9 |
Total |
86 |
3,903 |
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 |
|
|
June 30, |
June 30, |
yoy change |
June 30, |
yoy change |
June 30, |
yoy change |
|
2017 |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
2018 |
Economy hotels |
2,406 |
2,406 |
161 |
174 |
8.0% |
172 |
186 |
8.1% |
94% |
94% |
-0.1% |
Leased
hotels |
459 |
459 |
168 |
189 |
12.2% |
182 |
201 |
10.3% |
92% |
94% |
1.7% |
Manachised and
franchised hotels |
1,947 |
1,947 |
159 |
170 |
6.6% |
168 |
181 |
7.4% |
95% |
94% |
-0.7% |
Midscale and upscale hotels |
460 |
460 |
251 |
269 |
7.2% |
297 |
312 |
4.8% |
84% |
86% |
2.0% |
Leased and owned
hotels |
100 |
100 |
313 |
332 |
6.1% |
345 |
365 |
5.5% |
91% |
91% |
0.5% |
Manachised and franchised hotels |
360 |
360 |
226 |
243 |
7.8% |
276 |
289 |
4.5% |
82% |
84% |
2.5% |
Total |
2,866 |
2,866 |
180 |
194 |
7.9% |
196 |
210 |
7.5% |
92% |
92% |
0.3% |
About Huazhu Group
LimitedHuazhu Group Limited is a leading hotel operator
and franchisor in China. As of June 30, 2018, the Company had 3,903
hotels or 393,417 rooms in operation. With a primary focus on
economy and midscale hotel segments, Huazhu’s brands include Hi
Inn, HanTing Hotel, Elan Hotel, HanTing Premium Hotel, JI Hotel,
Starway Hotel, Joya Hotel, Crystal Orange Hotel, Orange Hotel
Select, Orange Hotel and Manxin Hotel. 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, 2018, Huazhu Group operates 22 percent
of its hotel rooms under lease and ownership model, 78 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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