Huazhu Group Limited Announces Its Preliminary Results for Hotel Operation  in the First Quarter of 2019

Date : 04/18/2019 @ 8:00AM
Source : GlobeNewswire Inc.
Stock : Huazhu Group Ltd (MM) (HTHT)
Quote : 35.57  0.0 (0.00%) @ 9:33AM

Huazhu Group Limited Announces Its Preliminary Results for Hotel Operation  in the First Quarter of 2019

Huazhu Group Ltd (MM) (NASDAQ:HTHT)
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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
 201820182019change
Average daily room rate  (in RMB)   
  Leased and owned hotels2432752586.3%
  Manachised hotels1942162108.0%
  Franchised hotels2282482373.6%
  Blended2072302216.9%
Occupancy rate (as a percentage)   
  Leased and owned hotels85.6%86.7%83.6%-2.0pp
  Manachised hotels84.0%85.5%80.5%-3.5pp
  Franchised hotels69.8%74.5%68.6%-1.2pp
  Blended83.7%85.2%80.6%-3.1pp
RevPAR  (in RMB)    
  Leased and owned hotels2082382163.8%
  Manachised hotels1631851693.5%
  Franchised hotels1591851621.8%
  Blended1731961782.9%
     

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
 20182019change
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)2052112.9%
RevPAR (in RMB)176176-0.4%
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 2019in Q1 2019in Q1 2019March 31, 2019 in Q1 2019March 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 2019March 31, 2019
Economy hotels242,916
  HanTing Hotel202,303
  Hi Inn(3)399
  Elan Hotel7207
  Orange Hotel07
Midscale and upscale hotels1421,480
  JI Hotel58611
  Starway Hotel18230
  Joya Hotel06
  Manxin Hotels & Resorts428
  HanTing Premium Hotel1791
  Ibis Hotel12149
  Ibis Styles Hotel 337
  Mercure Hotel645
  Novotel Hotel07
  Grand Mercure 17
  Orange Select17189
  Crystal Orange460
  Blossom Hill220
Total  166  4,396

 

           
Same-hotel operational data by segment          
 Number of hotels in operationSame-hotel RevPAR Same-hotel ADR Same-hotel Occupancy 
 As ofFor the quarter ended For the quarter ended For the quarter ended 
 March 31,March 31,yoy changeMarch 31,yoy changeMarch 31,yoy change (p.p.)
 20182019201820192018201920182019
Economy hotels  2,481  2,481  152  1520.1%  170  1763.7%89%86%(3.1)
  Leased hotels  439  439  161  1674.0%  181  1915.4%89%88%(1.1)
  Manachised and franchised hotels  2,042  2,042  149  148-1.1%  167  1723.1%89%86%(3.6)
Midscale and upscale hotels  708  708  240  237-1.1%  306  3101.3%78%76%(1.9)
  Leased and owned hotels  169  169  295  287-2.8%  360  3620.4%82%79%(2.6)
  Manachised and franchised hotels  539  539  216  216-0.1%  281  2862.0%77%75%(1.6)
Total  3,189  3,189  176  176-0.4%  205  2112.9%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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