Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) (“Huazhu”, “we”
or “our”), a world-leading hotel group, announced that Huazhu
Hospitality (Hong Kong) Limited (a wholly-owned subsidiary of
Huazhu), Chengdu Lingchuang Yipin Hotel Management Company Limited
(成都领创逸品酒店管理有限公司) (a wholly-owned subsidiary of Sunac China Holdings
Limited (HKEX: 1918)) (“Sunac”, together with its subsidiaries the
“Sunac Group”) and Chengdu Global Times Exhibition and Travel
Development Company Limited (成都环球时代会展旅游发展有限公司) (the “Strategic
Partner”) had formed a joint venture company, named as Yongle
Huazhu Hotel & Resort Group (永乐华住酒店管理有限公司) in the People’s
Republic of China (“China”) with a total registered capital of RMB
50 million. Each of Huazhu Hospitality (Hong Kong) Limited, Sunac,
and the Strategic Partner holds 50%, 40%, and 10% of the equity
interests in the JV, respectively. The JV is a non-wholly owned
subsidiary of Huazhu.
We are pleased to further announce the following
strategic plans of the JV.
Hotel management services The
JV will provide hotel management services to Sunac’s feasible hotel
properties and potential leased and owned hotel properties of third
parties.
Brand authorization Huazhu and
its wholly-owned subsidiary Steigenberger Hotels AG (“DH”) will
authorize the right to develop and operate hotels under the brands
of Blossom House (花间堂) and Steigenberger (施柏阁) in Mainland China to
the JV. At the same time, Sunac will authorize the right to develop
and operate hotels under Sunac’s own hotel brands, including Mauve
Hill (堇山), Mauve Glamor (堇悦) and Arcadia Hotels (凤栖桃源) etc., in
Mainland China to the JV. In terms of selection of hotel brands,
the JV will give priority to Blossom House (花间堂) and Steigenberger
(施柏阁) when a hotel property is available and suitable. The JV could
also develop its own brands in the future, in addition to those
above mentioned brands authorized by Huazhu, DH and Sunac.
Huazhu to provide operational support
services to the JVHuazhu will provide operational support
services to hotels which are developed and operated by the JV,
including those under the brands of Blossom House (花间堂),
Steigenberger (施柏阁), and Sunac’s brands. Such services include, but
are not limited to, those relating to Huazhu’s central reservation
system, membership loyalty program, hotel operating systems and
technologies, as well as shared service centers etc. Huazhu will
charge service fees on the services provided to the hotels
developed and operated by the JV.
The JV’s Five-Year TargetBy
leveraging on the core competencies of Huazhu and Sunac, the JV
targets to enter into management contracts with more than 200 hotel
properties from both Sunac and third-parties in five years after
its formation. The majority of the hotels managed by the JV is
intended to be upscale or above, full service hotels and under
long-term management contracts.
About Sunac Sunac is a company
listed on the Main Board of The Stock Exchange of Hong Kong
Limited. With the brand philosophy of “passion for perfection”, the
Sunac Group is committed to providing complete solutions for
Chinese families to enjoy a better life through high-quality
products and services and integration of high-quality resources.
With a focus on its core business of real estate, the Sunac Group
has six strategic segments, namely Sunac Real Estate, Sunac
Services, Sunac Culture & Tourism, Sunac Culture, Sunac
Conference & Exhibition, Sunac Medical & Health Care. Its
business covers real estate development, property services,
conferences and exhibitions, tourism and vacations, theme parks,
commercial operations, hotel operations, medical services and
health care, IP development and operation, film and television
content production and distribution, etc.
About Huazhu Originated in
China, Huazhu 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 DH 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 operates 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: http://ir.huazhu.com.
Safe Harbor Statement Under the U.S. 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; economic conditions; the regulatory environment; our
ability to attract and retain customers and leverage our brands;
trends and competition in the lodging industry; the expected growth
of demand for lodging; and other factors and risks detailed in our
filings with the U.S. 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.
__________________________________________________________________Huazhu
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 InformationHuazhu Investor RelationsTel:
86 (21) 6195 9561Email: ir@huazhu.comhttp://ir.huazhu.com
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