SHANGHAI, China, July 20, 2022 (GLOBE NEWSWIRE) — H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”), a world-leading resort group, right this moment introduced preliminary outcomes for resort operations within the second quarter (“Q2 2022”) ended June 30, 2022.
COVID-19 replace
For our Legacy-Huazhu business, the large-scale outbreak of Omicron variant in China since early-March 2022 led to huge lockdown in numerous cities and sharp decline within the demand for each business and leisure journey. As a consequence, our RevPAR in Q2 2022 solely recovered to 69% of the 2019 stage. Breaking down into every month, April and May 2022 have been the hardest-hit with RevPAR solely having recovered to 53% and 65% of the 2019 ranges respectively. However, RevPAR restoration improved in June 2022 to 86% of the 2019 stage because of gradual raise of lockdown since late May 2022. In addition, if we think about the impacts of requisitioned resorts, our RevPAR restoration in Q2 2022 would have been 75% of the 2019 stage.
Steigenberger Hotels AG and its subsidiaries (“DH”, or “Legacy-DH”) have seen an accelerating RevPAR restoration in Q2 2022. While RevPAR in March 2022 was 35% decrease than the 2019 stage, June 2022 RevPAR was just one% behind that of 2019. However, in opposition to the background of surging inflation in Europe and the ensuing substantial improve in prices in addition to uncertainties in regards to the future improvement of COVID-19 and vitality provides, DH has been specializing in money circulate enchancment measures. As a consequence, DH will proceed to give attention to effectivity enhancements, re-negotiation of lease contracts, and personnel price optimization.
| Operating Results: Legacy-Huazhu(1) | ||||||||
| Number of resorts | Number of rooms | |||||||
| Opened in Q2 2022 |
Closed (2) in Q2 2022 |
Net added in Q2 2022 |
As of June 30, 2022 (3) |
As of June 30, 2022 |
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| Leased and owned resorts | 5 | (12) | (7) | 646 | 91,171 | |||
| Manachised and franchised resorts | 264 | (74) | 190 | 7,405 | 657,771 | |||
| Total | 269 | (86) | 183 | 8,051 | 748,942 | |||
| (1) Legacy-Huazhu refers to H world and its subsidiaries, excluding DH. (2) The causes for resort closures primarily included non-compliance with our model requirements, working losses, and property-related points. In Q2 2022, we briefly closed 7 resorts for model improve and business mannequin change functions. (3) As of June 30, 2022,645 resorts have been requisitioned by governmental authorities. |
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| As of June 30, 2022 | ||
| Number of resorts | Unopened resorts in pipeline | |
| Economy resorts | 4,859 | 974 |
| Leased and owned resorts | 381 | 1 |
| Manachised and franchised resorts | 4,478 | 973 |
| Midscale and upscale resorts | 3,192 | 1,225 |
| Leased and owned resorts | 265 | 19 |
| Manachised and franchised resorts | 2,927 | 1,206 |
| Total | 8,051 | 2,199 |
| Operational resorts excluding resorts beneath requisition(4) | ||||||||
| For the quarter ended | ||||||||
| June 30, | March 31, | June 30, | yoy | |||||
| 2021 | 2022 | 2022 | change | |||||
| Average day by day room charge (in RMB) | ||||||||
| Leased and owned resorts | 311 | 263 | 243 | -21.7% | ||||
| Manachised and franchised resorts | 246 | 218 | 215 | -12.8% | ||||
| Blended | 255 | 224 | 218 | -14.5% | ||||
| Occupancy Rate (as a proportion) | ||||||||
| Leased and owned resorts | 81.1% | 56.7% | 62.9% | -18.1p.p. | ||||
| Manachised and franchised resorts | 82.5% | 59.6% | 64.9% | -17.6p.p. | ||||
| Blended | 82.3% | 59.2% | 64.6% | -17.7p.p. | ||||
| RevPAR (in RMB) | ||||||||
| Leased and owned resorts | 252 | 149 | 153 | -39.2% | ||||
| Manachised and franchised resorts | 203 | 130 | 139 | -31.4% | ||||
| Blended | 210 | 132 | 141 | -32.9% | ||||
| For the quarter ended | ||||||
| June 30, | June 30, | yoy | ||||
| 2019 | 2022 | change | ||||
| Average day by day room charge (in RMB) | ||||||
| Leased and owned resorts | 281 | 243 | -13.5% | |||
| Manachised and franchised resorts | 225 | 215 | -4.7% | |||
| Blended | 236 | 218 | -7.8% | |||
| Occupancy Rate (as a proportion) | ||||||
| Leased and owned resorts | 89.4% | 62.9% | -26.5p.p. | |||
| Manachised and franchised resorts | 86.3% | 64.9% | -21.4p.p. | |||
| Blended | 86.9% | 64.6% | -22.3p.p. | |||
| RevPAR (in RMB) | ||||||
| Leased and owned resorts | 252 | 153 | -39.2% | |||
| Manachised and franchised resorts | 194 | 139 | -28.4% | |||
| Blended | 206 | 141 | -31.4% | |||
| (4) If together with resorts beneath requisition, RevPAR in Q2 2022 would have been 75% of the 2019 stage. | ||||||
| Same-hotel operational knowledge by class | |||||||||||||||
| Mature resorts in operation for greater than 18 months (excluding resorts beneath requisition) | |||||||||||||||
| Number of resorts | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
| As of June 30, |
For the quarter | yoy | For the quarter | yoy | For the quarter | yoy | |||||||||
| ended June 30, |
change | ended June 30, |
change | ended June 30, |
change | ||||||||||
| 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | (p.p.) | |||||||
| Economy resorts | 3127 | 3127 | 172 | 112 | -34.8% | 197 | 166 | -16.0% | 87.2% | 67.7% | -19.5 | ||||
| Leased and owned resorts | 350 | 350 | 193 | 121 | -37.3% | 229 | 177 | -22.7% | 84.3% | 68.4% | -15.9 | ||||
| Manachised and franchised resorts | 2777 | 2777 | 168 | 110 | -34.3% | 191 | 163 | -14.6% | 87.7% | 67.5% | -20.2 | ||||
| Midscale and upscale resorts | 1785 | 1785 | 275 | 173 | -37.2% | 335 | 281 | -16.4% | 81.9% | 61.5% | -20.4 | ||||
| Leased and owned resorts | 203 | 203 | 323 | 190 | -41.1% | 414 | 332 | -19.8% | 78.0% | 57.3% | -20.7 | ||||
| Manachised and franchised resorts | 1582 | 1582 | 266 | 169 | -36.3% | 322 | 272 | -15.6% | 82.7% | 62.3% | -20.3 | ||||
| Total | 4912 | 4912 | 217 | 138 | -36.2% | 255 | 213 | -16.7% | 84.9% | 65.0% | -19.9 | ||||
| Number of resorts | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
| As of June 30, |
For the quarter ended June 30, |
yoy change |
For the quarter ended June 30, |
yoy change |
For the quarter ended June 30, |
yoy change |
|||||||||
| 2019 | 2022 | 2019 | 2022 | 2019 | 2022 | 2019 | 2022 | (p.p.) | |||||||
| Economy resorts | 1888 | 1888 | 182 | 110 | -39.4% | 195 | 164 | -15.8% | 93.1% | 67.0% | -26.1 | ||||
| Leased and owned resorts | 334 | 334 | 204 | 119 | -41.8% | 218 | 175 | -20.0% | 93.6% | 68.1% | -25.5 | ||||
| Manachised and franchised resorts | 1554 | 1554 | 176 | 108 | -38.7% | 189 | 161 | -14.5% | 93.0% | 66.7% | -26.3 | ||||
| Midscale and upscale resorts | 773 | 773 | 283 | 165 | -41.5% | 333 | 279 | -16.3% | 84.8% | 59.3% | -25.5 | ||||
| Leased and owned resorts | 155 | 155 | 348 | 170 | -51.0% | 401 | 312 | -22.3% | 86.6% | 54.7% | -31.9 | ||||
| Manachised and franchised resorts | 618 | 618 | 261 | 164 | -37.3% | 310 | 269 | -13.2% | 84.2% | 60.8% | -23.4 | ||||
| Total | 2661 | 2661 | 217 | 129 | -40.4% | 240 | 201 | -16.3% | 90.3% | 64.3% | -25.9 | ||||
| Operating Results: Legacy-DH(5) |
||||||||
| Number of resorts | Number of rooms | Unopened resorts in pipeline | ||||||
| Opened in Q2 2022 |
Closed in Q2 2022 |
Net added in Q2 2022 |
As of June 30, 2022(6) |
|
As of June 30,2022 |
|
As of June 30,2022 |
|
| Leased resorts | 2 | – | 2 | 79 | 14,939 | 25 | ||
| Manachised and franchised resorts | 3 | – | 3 | 46 | 10,017 | 12 | ||
| Total | 5 | – | 5 | 125 | 24,956 | 37 | ||
| (5) Legacy-DH refers to DH. (6) As of June 30, 2022, a complete of three resorts have been briefly closed. 1 resort was closed for renovation and 1 resort was closed because of flood injury. Additionally, 1 resort was briefly closed because of intensive resort refurbishment. |
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| For the quarter ended | ||||||||
| June 30, | March 31, | June 30, | yoy | |||||
| 2021 | 2022 | 2022 | change | |||||
| Average day by day room charge (in EUR) | ||||||||
| Leased resorts | 85.2 | 90.0 | 112.6 | 32.2% | ||||
| Manachised and franchised resorts | 77.9 | 85.5 | 106.7 | 37.0% | ||||
| Blended | 81.5 | 88.0 | 110.4 | 35.5% | ||||
| Occupancy charge (as a proportion) | ||||||||
| Leased resorts | 20.0% | 34.1% | 61.2% | +41.2 p.p. | ||||
| Managed and franchised resorts | 30.8% | 44.0% | 57.9% | +27.1 p.p. | ||||
| Blended | 24.4% | 38.0% | 59.8% | +35.4 p.p. | ||||
| RevPAR (in EUR) | ||||||||
| Leased resorts | 17.0 | 30.7 | 68.9 | 305.3% | ||||
| Managed and franchised resorts | 24.0 | 37.6 | 61.8 | 157.5% | ||||
| Blended | 19.8 | 33.4 | 66.0 | 233.3% | ||||
| Hotel Portfolio by Brand |
|||
| As of June 30, 2022 | |||
| Hotels | Rooms | Unopened resorts | |
| in operation | in pipeline | ||
| Economy resorts | 4,874 | 384,177 | 985 |
| HanTing Hotel | 3,124 | 277,284 | 626 |
| Hi Inn | 458 | 24,036 | 120 |
| Ni Hao Hotel | 106 | 7,503 | 188 |
| Elan Hotel | 952 | 50,910 | 7 |
| Ibis Hotel | 219 | 22,734 | 33 |
| Zleep Hotels | 15 | 1,710 | 11 |
| Midscale resorts | 2,666 | 291,349 | 949 |
| Ibis Styles Hotel | 84 | 8,679 | 13 |
| Starway Hotel | 557 | 44,683 | 185 |
| JI Hotel | 1,515 | 180,847 | 528 |
| Orange Hotel | 479 | 52,168 | 215 |
| CitiGO Hotel | 31 | 4,972 | 8 |
| Upper midscale resorts | 494 | 72,304 | 244 |
| Crystal Orange Hotel | 155 | 20,639 | 56 |
| Manxin Hotel | 99 | 9,432 | 52 |
| Madison Hotel | 43 | 6,346 | 55 |
| Mercure Hotel | 131 | 22,533 | 43 |
| Novotel Hotel | 15 | 4,032 | 14 |
| IntercityHotel(7) | 51 | 9,322 | 24 |
| Upscale resorts | 118 | 20,367 | 51 |
| Jaz within the City | 3 | 587 | 1 |
| Joya Hotel | 8 | 1,386 | – |
| Blossom House | 39 | 1,888 | 28 |
| Grand Mercure Hotel | 7 | 1,485 | 5 |
| Steigenberger Hotels & Resorts(8) | 53 | 13,710 | 9 |
| MAXX (9) | 8 | 1,311 | 8 |
| Luxury resorts | 15 | 2,326 | 2 |
| Steigenberger Icon(10) | 9 | 1,847 | 1 |
| Song Hotels | 6 | 479 | 1 |
| Others | 9 | 3,375 | 5 |
| Other resorts(11) | 9 | 3,375 | 5 |
| Total | 8,176 | 773,898 | 2,236 |
| (7) As of June 30, 2022, 2 operational resorts and 9 pipeline resorts of IntercityHotel have been in China. | |||
| (8) As of June 30, 2022, 11 operational resorts and a pair of pipeline resorts of Steigenberger Hotels & Resorts have been in China. | |||
| (9) As of June 30, 2022, 2 operational resorts and eight pipeline resorts of MAXX have been in China. | |||
| (10) As of June 30, 2022, 3 operational resorts of Steigenberger Icon have been in China. | |||
| (11) Other resorts embrace different accomplice resorts and different resort manufacturers in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House). | |||
About H World Group Limited
Originated in China, H World Group Limited is a world-leading resort group. As of June 30, 2022, H World operated 8,176 resorts with 773,898 rooms in operation in 17 international locations. H World’s manufacturers embrace Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, Ni Hao Hotel, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz within the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song Hotels. In addition, H World additionally has the rights as grasp franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, within the pan-China area.
H World’s business consists of leased and owned, manachised and franchised fashions. Under the lease and possession mannequin, H World immediately operates resorts usually positioned on leased or owned properties. Under the manachise mannequin, H World manages manachised resorts by the on-site resort managers that H World appoints, and H World collects charges from franchisees. Under the franchise mannequin, H World gives coaching, reservations and assist providers to the franchised resorts, and collects charges from franchisees however doesn’t appoint on-site resort managers. H World applies a constant normal and platform throughout all of its resorts. As of June 30, 2022, H World operates 14 % of its resort rooms beneath lease and possession mannequin, and 86 % beneath manachise and franchise fashions.
For extra data, please go to H World’s web site: https://ir.hworld.com.
Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The data on this launch incorporates forward-looking statements which contain dangers and uncertainties. Such components and dangers embrace our anticipated progress methods; our future outcomes of operations and monetary situation; financial circumstances; the regulatory setting; our capacity to draw and retain clients and leverage our manufacturers; tendencies and competitors within the lodging trade; the anticipated progress of demand for lodging; and different components and dangers detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that aren’t statements of historic reality could also be deemed to be forward-looking statements, which can be recognized by terminology similar to “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the detrimental of such phrases or different comparable terminology. Readers shouldn’t depend on forward-looking statements as predictions of future occasions or outcomes.
H World undertakes no obligation to replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case, until required by relevant regulation.
Contact Information
H World Investor Relations
Tel: 86 (21) 6195 9561
Email: [email protected]
https://ir.hworld.com
