Huazhu Group Limited Announces Its Preliminary Results for Hotel Operation in the Second Quarter of 2019
July 16 2019 - 9:00PM
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 2019 |
in Q2 2019 |
in Q2 2019 |
June 30, 2019 |
|
in Q2 2019 |
June 30, 2019 |
Leased and owned hotels |
8 |
(10 |
) |
(2 |
) |
696 |
|
(587 |
) |
87,179 |
Manachised and franchised
hotels |
303 |
(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 operation |
Number of hotels in pipeline |
Economy hotels |
2,990 |
433 |
Leased and owned hotels |
435 |
2 |
Manachised and franchised hotels |
2,555 |
431 |
Midscale and upscale hotels |
1,675 |
1,120 |
Leased and owned hotels |
261 |
53 |
Manachised and franchised hotels |
1,414 |
1,067 |
Total |
4,665 |
1,553 |
|
|
|
Operating Metrics
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
yoy |
|
2018 |
2019 |
2019 |
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
270 |
|
258 |
|
281 |
|
4.3 |
% |
Manachised hotels |
212 |
|
210 |
|
224 |
|
5.8 |
% |
Franchised hotels |
248 |
|
237 |
|
246 |
|
-0.7 |
% |
Blended |
226 |
|
221 |
|
236 |
|
4.4 |
% |
Occupancy rate (as a percentage) |
|
|
|
Leased and owned hotels |
91.4 |
% |
83.6 |
% |
89.4 |
% |
-1.9pp |
Manachised hotels |
89.8 |
% |
80.5 |
% |
87.1 |
% |
-2.8pp |
Franchised hotels |
78.7 |
% |
68.6 |
% |
75.1 |
% |
-3.6pp |
Blended |
89.6 |
% |
80.6 |
% |
86.9 |
% |
-2.7pp |
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
246 |
|
216 |
|
252 |
|
2.1 |
% |
Manachised hotels |
190 |
|
169 |
|
195 |
|
2.5 |
% |
Franchised hotels |
195 |
|
162 |
|
185 |
|
-5.2 |
% |
Blended |
203 |
|
178 |
|
206 |
|
1.3 |
% |
|
|
|
|
|
Business Update by Segment
Hotel breakdown by
brand |
|
|
|
|
|
Number of hotels in operation |
|
Net added |
As of |
|
in Q2 2019 |
June 30, 2019 |
Economy hotels |
74 |
|
2,990 |
HanTing Hotel |
28 |
|
2,331 |
Hi Inn |
16 |
|
415 |
Elan Hotel |
37 |
|
244 |
Orange Hotel(2) |
(7 |
) |
0 |
Midscale and upscale hotels |
195 |
|
1,675 |
JI Hotel |
55 |
|
666 |
Starway Hotel |
35 |
|
265 |
Joya Hotel |
0 |
|
6 |
Manxin Hotels & Resorts |
7 |
|
35 |
HanTing Premium Hotel |
38 |
|
129 |
Ibis Hotel |
10 |
|
159 |
Ibis Styles Hotel |
7 |
|
44 |
Mercure Hotel |
7 |
|
52 |
Novotel Hotel |
2 |
|
9 |
Grand Mercure |
1 |
|
8 |
Orange Select |
27 |
|
216 |
Crystal Orange |
6 |
|
66 |
Blossom Hill |
0 |
|
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 operation |
Same-hotel RevPAR |
|
Same-hotel ADR |
|
Same-hotel Occupancy |
|
|
As ofJune 30, |
For the quarter endedJune
30, |
|
For the quarter endedJune
30, |
|
For the quarter endedJune
30, |
|
|
yoychange |
yoy change |
yoy change (p.p.) |
|
2018 |
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
|
2019 |
|
Economy hotels |
2,489 |
2,489 |
175 |
171 |
-2.0 |
% |
185 |
187 |
0.9 |
% |
94.3 |
% |
91.6 |
% |
-2.7 |
Leased hotels |
424 |
424 |
189 |
191 |
0.6 |
% |
202 |
206 |
2.1 |
% |
94.0 |
% |
92.7 |
% |
-1.4 |
Manachised and franchised hotels |
2,065 |
2,065 |
171 |
166 |
-2.7 |
% |
181 |
182 |
0.6 |
% |
94.4 |
% |
91.3 |
% |
-3.0 |
Midscale and upscale hotels |
788 |
788 |
278 |
272 |
-2.4 |
% |
325 |
323 |
-0.7 |
% |
85.5 |
% |
84.1 |
% |
-1.4 |
Leased and owned hotels |
179 |
179 |
346 |
334 |
-3.5 |
% |
392 |
383 |
-2.2 |
% |
88.5 |
% |
87.3 |
% |
-1.2 |
Manachised and franchised hotels |
609 |
609 |
251 |
247 |
-1.8 |
% |
298 |
298 |
0.0 |
% |
84.3 |
% |
82,8 |
% |
-1.5 |
Total |
3,277 |
3,277 |
206 |
202 |
-2.1 |
% |
225 |
226 |
0.4 |
% |
91.7 |
% |
89.3 |
% |
-2.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Huazhu Group
LimitedHuazhu 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 InformationInvestor RelationsTel: 86
(21) 6195 9561Email: ir@huazhu.comhttp://ir.huazhu.com
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