SHANGHAI, China, April 28, 2022 (GLOBE NEWSWIRE) — Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) (“Huazhu”, “we” or “our”), a world-leading resort group, at this time introduced preliminary outcomes for resort operations within the first quarter (“Q1 2022”) ended March 31, 2022.
COVID-19 replace
For our Legacy-Huazhu business, RevPAR restoration within the first two months of 2022 was on observe. Nevertheless, such restoration was considerably interrupted by the large-scale outbreak of the Omicron variant in over 30 provinces in China since early-March 2022. Many cities, resembling Shanghai and Jilin, have been topic to lockdown since then, which resulted in a pointy decline of each business and leisure touring actions. However, such outbreak led to an increase in demand for lodges to serve the quarantine wants of contaminated individuals or these in shut contact with contaminated individuals, in addition to the lodging wants of medical groups and supply riders. As the Omicron variant is very infectious, there are nonetheless uncertainties by way of the affect on our Legacy-Huazhu business within the near-term. To mitigate dangers, we are actually implementing a number of prices and money move administration measures.
Steigenberger Hotels AG and its subsidiaries (“DH”, or “Legacy-DH”) have been experiencing steady RevPAR restoration since Germany unfolded its opening-up plan in mid-February 2022. RevPAR in March 2022 recovered to 65% of the 2019 stage, as in comparison with solely 47% of the 2019 stage in January 2022. However, since RevPAR restoration remains to be at an early stage, a complete money move enchancment program stays crucial. Therefore, DH will constantly give attention to effectivity enhancements, negotiation of additional lease waivers, and personnel price optimization.
Operating Results: Legacy-Huazhu(1)
| Number of lodges | Number of rooms | |||||||
| Opened in Q1 2022 |
Closed(2) in Q1 2022 |
Net added in Q1 2022 |
As of March 31, 2022(3) |
As of March 31, 2022 |
||||
| Leased and owned lodges | 3 | (12 | ) | (9 | ) | 653 | 91,163 | |
| Manachised and franchised lodges | 299 | (128 | ) | 171 | 7,215 | 649,330 | ||
| Total | 302 | (140 | ) | 162 | 7,868 | 740,493 | ||
| (1) Legacy-Huazhu refers to Huazhu 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 Q1 2022, we briefly closed 9 lodges for model improve and business mannequin change functions. (3) As of March 31, 2022,1299 lodges had been requisitioned by governmental authorities. |
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| As of March 31, 2022 | ||
| Number of lodges | Unopened lodges in pipeline | |
| Economy lodges | 4,810 | 937 |
| Leased and owned lodges | 387 | 4 |
| Manachised and franchised lodges | 4,423 | 933 |
| Midscale and upscale lodges | 3,058 | 1,289 |
| Leased and owned lodges | 266 | 19 |
| Manachised and franchised lodges | 2,792 | 1,270 |
| Total | 7,868 | 2,226 |
| Operational lodges excluding lodges beneath requisition | ||||||||
| For the quarter ended | ||||||||
| March 31, | December 31, | March 31, | yoy | |||||
| 2021 | 2021 | 2022 | change | |||||
| Average day by day room fee (in RMB) | ||||||||
| Leased and owned lodges | 243 | 286 | 263 | 8.0 | % | |||
| Manachised and franchised lodges | 203 | 232 | 218 | 7.5 | % | |||
| Blended | 209 | 239 | 224 | 7.2 | % | |||
| Occupancy Rate (as a share) | ||||||||
| Leased and owned lodges | 64.0 | % | 67.4 | % | 56.7 | % | -7.3p.p. | |
| Manachised and franchised lodges | 66.6 | % | 68.4 | % | 59.6 | % | -7.0p.p. | |
| Blended | 66.2 | % | 68.2 | % | 59.2 | % | -7.0p.p. | |
| RevPAR (in RMB) | ||||||||
| Leased and owned lodges | 156 | 193 | 149 | -4.4 | % | |||
| Manachised and franchised lodges | 135 | 159 | 130 | -3.8 | % | |||
| Blended | 138 | 163 | 132 | -4.1 | % | |||
| For the quarter ended | ||||||
| March 31, | March 31, | yoy | ||||
| 2019 | 2022 | change | ||||
| Average day by day room fee (in RMB) | ||||||
| Leased and owned lodges | 258 | 263 | 1.9 | % | ||
| Manachised and franchised lodges | 211 | 218 | 3.2 | % | ||
| Blended | 221 | 224 | 1.2 | % | ||
| Occupancy Rate (as a share) | ||||||
| Leased and owned lodges | 83.6 | % | 56.7 | % | -27.0p.p. | |
| Manachised and franchised lodges | 79.8 | % | 59.6 | % | -20.3p.p. | |
| Blended | 80.6 | % | 59.2 | % | -21.4p.p. | |
| RevPAR (in RMB) | ||||||
| Leased and owned lodges | 216 | 149 | -31.0 | % | ||
| Manachised and franchised lodges | 169 | 130 | -23.0 | % | ||
| Blended | 178 | 132 | -25.7 | % | ||
| Same-hotel operational knowledge by class | |||||||||||||||
| Mature lodges in operation for greater than 18 months (excluding lodges beneath requisition) | |||||||||||||||
| Number of lodges | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
| As of March 31, |
For the quarter | yoy | For the quarter | yoy | For the quarter | yoy | |||||||||
| ended March 31, |
change | ended March 31, |
change | ended March 31, |
change | ||||||||||
| 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | (p.p.) | |||||||
| Economy lodges | 3320 | 3320 | 115 | 105 | -8.5 | % | 161 | 167 | 4.0 | % | 71.5 | % | 62.9 | % | -8.6 |
| Leased and owned lodges | 380 | 380 | 121 | 114 | -6.5 | % | 177 | 186 | 4.9 | % | 68.4 | % | 61.0 | % | -7.4 |
| Manachised and franchised lodges | 2940 | 2940 | 114 | 104 | -8.9 | % | 158 | 164 | 3.8 | % | 72.0 | % | 63.2 | % | -8.8 |
| Midscale and upscale lodges | 1905 | 1905 | 181 | 164 | -9.4 | % | 281 | 289 | 2.7 | % | 64.4 | % | 56.8 | % | -7.6 |
| Leased and owned lodges | 229 | 229 | 201 | 187 | -7.3 | % | 339 | 352 | 4.0 | % | 59.4 | % | 53.0 | % | -6.4 |
| Manachised and franchised lodges | 1676 | 1676 | 177 | 160 | -9.9 | % | 271 | 277 | 2.3 | % | 65.5 | % | 57.7 | % | -7.8 |
| Total | 5225 | 5225 | 144 | 131 | -8.9 | % | 210 | 218 | 3.5 | % | 68.4 | % | 60.2 | % | -8.2 |
| Number of lodges | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
| As of March 31, |
For the quarter | yoy | For the quarter | yoy | For the quarter | yoy | |||||||||
| ended March 31, |
change | ended March 31, |
change | ended March 31, |
change | ||||||||||
| 2019 | 2022 | 2019 | 2022 | 2019 | 2022 | 2019 | 2022 | (p.p.) | |||||||
| Economy lodges | 2024 | 2024 | 160 | 104 | -34.9 | % | 183 | 167 | -8.7 | % | 87.5 | % | 62.4 | % | -25.1 |
| Leased and owned lodges | 358 | 358 | 177 | 111 | -37.4 | % | 200 | 182 | -9.0 | % | 88.2 | % | 60.7 | % | -27.5 |
| Manachised and franchised lodges | 1666 | 1666 | 155 | 102 | -34.1 | % | 178 | 162 | -8.6 | % | 87.3 | % | 62.9 | % | -24.4 |
| Midscale and upscale lodges | 795 | 795 | 251 | 155 | -38.1 | % | 324 | 288 | -11.1 | % | 77.3 | % | 53.8 | % | -23.5 |
| Leased and owned lodges | 170 | 170 | 304 | 171 | -43.9 | % | 383 | 332 | -13.1 | % | 79.4 | % | 51.3 | % | -28.1 |
| Manachised and franchised lodges | 625 | 625 | 231 | 149 | -35.4 | % | 302 | 273 | -9.7 | % | 76.5 | % | 54.7 | % | -21.8 |
| Total | 2819 | 2819 | 191 | 122 | -36.2 | % | 227 | 205 | -9.9 | % | 84.0 | % | 59.4 | % | -24.6 |
Operating Results: Legacy-DH(4)
| Number of lodges | Number of rooms |
Unopened lodges in pipeline |
||||||||
| Opened in Q1 2022 |
Closed in Q1 2022 |
Net added in Q1 2022 |
As of March 31, 2022(5) |
As of March 31,2022 |
As of March 31,2022 |
|||||
| Leased lodges | 1 | – | 1 | 77 | 14,472 | 29 | ||||
| Manachised and franchised lodges | – | (5 | ) | (5 | ) | 43 | 9,894 | 16 | ||
| Total | 1 | (5 | ) | (4 | ) | 120 | 24,366 | 45 | ||
| (4) Legacy-DH refers to DH. (5) As of March 31, 2022, a complete of three lodges had been briefly closed. 1 resort was closed for renovation and 1 resort was closed attributable to flood injury. Additionally, 1 resort was briefly closed attributable to low demand. |
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| For the quarter ended | ||||||||
| March 31, | December 31, | March 31, | yoy | |||||
| 2021 | 2021 | 2022 | change | |||||
| Average day by day room fee (in EUR) | ||||||||
| Leased lodges | 77.9 | 95.4 | 90.0 | 15.6 | % | |||
| Manachised and franchised lodges | 59.0 | 92.8 | 85.5 | 44.9 | % | |||
| Blended | 68.5 | 94.2 | 88.0 | 28.4 | % | |||
| Occupancy fee (as a share) | ||||||||
| Leased lodges | 14.6 | % | 42.8 | % | 34.1 | % | +19.5 p.p. | |
| Managed and franchised lodges | 26.5 | % | 50.7 | % | 44.0 | % | +17.5 p.p. | |
| Blended | 18.8 | % | 46.1 | % | 38.0 | % | +19.2 p.p. | |
| RevPAR (in EUR) | ||||||||
| Leased lodges | 11.4 | 40.9 | 30.7 | 169.6 | % | |||
| Managed and franchised lodges | 15.6 | 47.1 | 37.6 | 141.0 | % | |||
| Blended | 12.9 | 43.4 | 33.4 | 158.8 | % | |||
Hotel Portfolio by Brand
| As of March 31, 2022 | |||
| Hotels | Rooms | Unopened lodges | |
| in operation | in pipeline | ||
| Economy lodges | 4,824 | 388,174 | 951 |
| HanTing Hotel | 3,096 | 277,885 | 608 |
| Hi Inn | 447 | 24,682 | 117 |
| Ni Hao Hotel | 83 | 5,772 | 178 |
| Elan Hotel | 965 | 55,421 | 2 |
| Ibis Hotel | 219 | 22,751 | 32 |
| Zleep Hotels | 14 | 1,663 | 14 |
| Midscale lodges | 2,554 | 281,168 | 977 |
| Ibis Styles Hotel | 82 | 8,522 | 17 |
| Starway Hotel | 544 | 44,740 | 202 |
| JI Hotel | 1,449 | 173,866 | 534 |
| Orange Hotel | 449 | 49,231 | 216 |
| CitiGO Hotel | 30 | 4,809 | 8 |
| Upper midscale lodges | 472 | 69,267 | 270 |
| Crystal Orange Hotel | 148 | 19,793 | 65 |
| Manxin Hotel | 91 | 8,705 | 54 |
| Madison Hotel | 41 | 6,164 | 56 |
| Mercure Hotel | 128 | 21,697 | 53 |
| Novotel Hotel | 15 | 4,032 | 16 |
| IntercityHotel(6) | 49 | 8,876 | 26 |
| Upscale lodges | 115 | 20,691 | 62 |
| Jaz within the City | 3 | 587 | 1 |
| Joya Hotel | 9 | 1,760 | – |
| Blossom House | 36 | 1,793 | 34 |
| Grand Mercure Hotel | 7 | 1,485 | 6 |
| Steigenberger Hotels & Resorts(7) | 53 | 13,889 | 13 |
| MAXX(8) | 7 | 1,177 | 8 |
| Luxury lodges | 15 | 2,327 | 4 |
| Steigenberger Icon(9) | 9 | 1,848 | 2 |
| Song Hotels | 6 | 479 | 2 |
| Others | 8 | 3,232 | 7 |
| Other lodges(10) | 8 | 3,232 | 7 |
| Total | 7,988 | 764,859 | 2,271 |
(6) As of March 31, 2022, 2 operational lodges and 9 pipeline lodges of IntercityHotel had been in China.
(7) As of March 31, 2022, 11 operational lodges and 5 pipeline lodges of Steigenberger Hotels & Resorts had been in China.
(8) As of March 31, 2022, 2 operational lodges and seven pipeline lodges of MAXX had been in China.
(9) As of March 31, 2022, 3 operational lodges and 1 pipeline resort of Steigenberger Icon had been in China.
(10) Other lodges embody different companion lodges and different resort manufacturers in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House).
About Huazhu Group Limited
Originated in China, Huazhu Group Limited is a world-leading resort group. As of March 31, 2022, Huazhu operated 7,988 lodges with 764,859 rooms in operation in 17 nations. Huazhu’s manufacturers embody 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, Huazhu 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.
Huazhu’s business contains leased and owned, manachised and franchised fashions. Under the lease and possession mannequin, Huazhu instantly operates lodges sometimes positioned on leased or owned properties. Under the manachise mannequin, Huazhu manages manachised lodges via the on-site resort managers that Huazhu appoints, and Huazhu collects charges from franchisees. Under the franchise mannequin, Huazhu supplies coaching, reservations and help providers to the franchised lodges, and collects charges from franchisees however doesn’t appoint on-site resort managers. Huazhu applies a constant normal and platform throughout all of its lodges. As of March 31, 2022, Huazhu operates 14 % of its resort rooms beneath lease and possession mannequin, and 86 % beneath manachise and franchise fashions.
For extra data, please go to Huazhu’s web site: http://ir.huazhu.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 elements and dangers embody our anticipated progress methods; our future outcomes of operations and monetary situation; financial circumstances; the regulatory setting; our means to draw and retain prospects and leverage our manufacturers; developments and competitors within the lodging business; the anticipated progress of demand for lodging; and different elements 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 resembling “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the destructive of such phrases or different comparable terminology. Readers mustn’t depend on forward-looking statements as predictions of future occasions or outcomes.
Huazhu 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, except required by relevant regulation.
Contact Information
Huazhu Investor Relations
Tel: 86 (21) 6195 9561
Email: [email protected]
http://ir.huazhu.com
