Huazhu Announces Completion of Internal Investigation
February 11 2021 - 1:50AM
Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) (the “Company”
or “Huazhu”), a world-leading hotel group, today announced that the
Company’s audit committee (the “Audit Committee”) has completed the
internal investigation into the allegations raised in short seller
reports issued by Bonitas Research LLC on September 22 and 29,
2020, respectively (the “Bonitas Reports”). The Audit Committee
carried out the investigation beginning in late September 2020,
with the assistance and advice of Cleary Gottlieb Steen &
Hamilton LLP and FTI Consulting, Inc.
Based on its work, the Audit Committee has concluded that the
findings from the internal investigation are consistent with the
Company’s responses to the allegations in the announcements
published on September 22, 25, 28 and 30, 2020,
respectively. The investigation did not identify any
material misstatements with respect to the Company’s 2019 20-F or
its prospectuses issued in September 2020 in connection with its
global offering. In addition, based on the findings of the
investigation, the allegations in the Bonitas Reports cannot be
substantiated.
Qi Ji, Chief Executive Officer of the Company, stated, “We are
pleased that the Audit Committee, with the assistance of Cleary
Gottlieb Steen & Hamilton LLP and FTI Consulting, Inc., has
completed its thorough internal investigation. We reiterate our
commitment to maintaining the highest standards of corporate
governance, as well as transparent and timely disclosure in
compliance with the applicable rules and regulations of the United
States Securities and Exchange Commission, the Nasdaq Global Select
Market and The Stock Exchange of Hong Kong Limited. I am positive
that our strong business fundamentals will continue to help us
build on our hotel network, deliver best lodging experience, and
capitalize on opportunities to create long term shareholder
value.”
About Huazhu Group Limited
Originated in China, Huazhu Group Limited is a world-leading
hotel group. As of December 31, 2020, Huazhu operated 6,789
hotels with 652,162 rooms in operation in 16 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, and Ni Hao Hotel. Upon the
completion of the acquisition of Deutsche Hospitality 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
Hotel. 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
December 31, 2020, Huazhu operated 16 percent of its hotel
rooms under lease and ownership model, and 84 percent under
manachise and franchise models.
For more information, please visit Huazhu’s website:
https://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.
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. Any or all of the
Company’s forward-looking statements may turn out to be wrong. They
can be affected by inaccurate assumptions, risks and uncertainties
and other factors which could cause actual events or results to be
materially different from those expressed or implied in the
forward-looking statements. In evaluating these statements, readers
should consider various factors, including the anticipated growth
strategies of the Company, the future results of operations and
financial condition of the Company, the economic conditions of
China, the regulatory environment in China, the Company’s ability
to attract customers and leverage its brands, trends and
competition in the lodging industry, the expected growth of demand
for lodging in China and other factors and risks outlined in the
Company’s filings with the SEC, including the Company’s annual
report on Form 20-F and other filings. These factors may cause the
Company’s actual results to differ materially from any
forward-looking statement. In addition, new factors emerge from
time to time and it is not possible for the Company to predict all
factors that may cause actual results to differ materially from
those contained in any forward-looking statements. Any projections
in this release are based on limited information currently
available to the Company, which is subject to change. This release
also contains statements or projections that are based upon
information available to the public, as well as other information
from sources which the Company believes to be reliable, but it is
not guaranteed by the Company to be accurate, nor does the Company
purport it to be complete. The Company disclaims any obligation to
publicly update any forward-looking statements to reflect events or
circumstances after the date of this document, except as required
by applicable law.
Contact InformationHuazhu Investor RelationsTel: 86 (21) 6195
9561Email: ir@huazhu.comhttps://ir.huazhu.com
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