Huazhu Group Limited Reports First Quarter of 2022

• A complete of 7,988 accommodations or 764,859 resort rooms in operation as of March 31, 2022.
• Hotel turnover¹ elevated 16.4% year-over-year to RMB9.5 billion for the primary quarter of 2022. Excluding Steigenberger Hotels AG and its subsidiaries (“DH”, or “Legacy-DH”), resort turnover elevated 11.4% year-over-year for the primary quarter.
• Revenue elevated 15.2% year-over-year to RMB2.7 billion (US$423 million)² for the primary quarter of 2022, in step with income steering beforehand introduced of 11% to fifteen% in comparison with the primary quarter of 2021. Revenue from Legacy-Huazhu section for the primary quarter of 2022 elevated 4.6% year-over-year, in step with income steering beforehand introduced of 1% to five%.
• Net loss attributable to Huazhu Group Limited was RMB630 million (US$99 million) for the primary quarter of 2022, in contrast with RMB248 million for the primary quarter of 2021 and RMB459 million within the earlier quarter. Net loss attributable to Huazhu Group Limited from Legacy-Huazhu section was RMB307 million for the primary quarter of 2022, in contrast with internet revenue attributable to Huazhu Group Limited from Legacy-Huazhu section of RMB53 million for the primary quarter of 2021 and internet loss attributable to Huazhu Group Limited from Legacy-Huazhu section of RMB419 million within the earlier quarter.
• EBITDA (non-GAAP) for the primary quarter of 2022 was damaging RMB301 million (US$48 million), in contrast with RMB70 million for the primary quarter of 2021 and RMB46 million within the earlier quarter. EBITDA from Legacy-Huazhu section, which is a section measure, was damaging RMB61 million for the primary quarter of 2022, in contrast with RMB410 million for the primary quarter of 2021 and damaging RMB23 million within the earlier quarter.
• Adjusted EBITDA (non-GAAP), which excluded share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities, was damaging RMB333 million (US$53 million) for the primary quarter of 2022, in contrast with damaging RMB133 million for the primary quarter of 2021 and RMB278 within the earlier quarter. Adjusted EBITDA from Legacy-Huazhu section(non-GAAP) was damaging RMB93 million for the primary quarter of 2022, in contrast with RMB207 million for the primary quarter of 2021 and RMB209 million within the earlier quarter.
• In the second quarter of 2022, Huazhu expects income to say no 2% to six% in comparison with the second quarter of 2021, or to say no 23% to 27% if excluding DH, primarily because of massive impacts from Omicron variant outbreak in China.

SHANGHAI, China, May 30, 2022 (GLOBE NEWSWIRE) — Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) (“Huazhu”, “the Company”, “we” or “our”), a world-leading resort group, at the moment introduced its unaudited monetary outcomes for the primary quarter ended March 31, 2022.

As of March 31, 2022, Huazhu’s worldwide resort community in operation totaled 7,988 accommodations and 764,859 rooms, together with 120 accommodations from DH. During the primary quarter of 2022, our Legacy-Huazhu business opened 302 accommodations, together with 3 leased (or leased-and-operated) accommodations and 299 manachised (or franchised-and-managed) accommodations and franchised accommodations, and closed a complete of 140 accommodations, together with 12 leased accommodations and 128 manachised and franchised accommodations. During the primary quarter of 2022, the Legacy-DH business opened 1 leased resort, and closed 5 manachised and franchised accommodations. As of March 31, 2022, Huazhu had a complete of 2,271 unopened accommodations in our pipeline, together with 2,226 accommodations from the Legacy-Huazhu business and 45 accommodations from the Legacy-DH business.

Legacy-Huazhu Only – First Quarter of 2022 Operational Highlights

As of March 31, 2022, Legacy-Huazhu had 7,868 accommodations in operation, together with 653 leased and owned accommodations, and seven,215 manachised and franchised accommodations. In addition, as of the identical date, Legacy-Huazhu had 740,493 resort rooms in operation, together with 91,163 rooms underneath the lease and possession mannequin, and 649,330 rooms underneath the manachise and franchise fashions. Legacy-Huazhu additionally had 2,226 unopened accommodations in our pipeline, together with 23 leased and owned accommodations and a pair of,203 manachised and franchised accommodations. The following discusses Legacy-Huazhu’s RevPAR, common day by day room price (“ADR”) and occupancy price for its leased and owned accommodations, in addition to manachised and franchised accommodations (excluding accommodations underneath governmental requisition) for the intervals indicated.

• The ADR was RMB224 within the first quarter of 2022, in contrast with RMB209 within the first quarter of 2021, RMB239 within the earlier quarter, and RMB221 within the first quarter of 2019.
• The occupancy price for all Legacy-Huazhu accommodations in operation was 59.2% within the first quarter of 2022, in contrast with 66.2% within the first quarter of 2021, 68.2% within the earlier quarter, and 80.6% within the first quarter of 2019.
• Blended RevPAR was RMB132 within the first quarter of 2022, in contrast with RMB138 within the first quarter of 2021, RMB163 within the earlier quarter, and RMB178 within the first quarter of 2019.
• For all Legacy-Huazhu accommodations which had been in operation for at the least 18 months, the same-hotel RevPAR was RMB131 for the primary quarter of 2022, representing a 8.9% lower from RMB144 for the primary quarter of 2021, with a 3.5% enhance in ADR and an 8.2-percentage-point lower in occupancy price; evaluating the primary quarter of 2022 with the pre-COVID-19 first quarter of 2019, same-hotel RevPAR represented a 36.2% lower from RMB191 for the primary quarter of 2019, with a 9.9% lower in ADR, and a 24.6-percentage-point lower in occupancy price.

Legacy-DH Only – First Quarter of 2022 Operational Highlights

As of March 31, 2022, Legacy-DH had 120 accommodations in operation, together with 77 leased and owned accommodations and 43 manachised and franchised accommodations. In addition, as of the identical date, Legacy-DH had 24,366 resort rooms in operation, together with 14,472 rooms underneath the lease and possession mannequin, and 9,894 rooms underneath the manachise and franchise fashions. Legacy-DH additionally had unopened 45 accommodations in our pipeline, together with 29 leased and owned accommodations and 16 manachised and franchised accommodations. The following discusses Legacy-DH’s RevPAR, ADR and occupancy price for its leased in addition to manachised and franchised accommodations (excluding accommodations briefly closed) for the intervals indicated. 

• The ADR was EUR88 within the first quarter of 2022, in contrast with EUR69 within the first quarter of 2021 and EUR94 within the earlier quarter.
• The occupancy price for all Legacy-DH accommodations in operation was 38.0% within the first quarter of 2022, in contrast with 18.8% within the first quarter of 2021 and 46.1% within the earlier quarter.
• Blended RevPAR was EUR33 within the first quarter of 2022, in contrast with EUR13 within the first quarter of 2021 and EUR43 within the earlier quarter.

Jin Hui, CEO of Huazhu commented: “Since late March 2022, our China business has encountered tremendous challenges with the highly infectious Omicron variant spreading nationwide. Many cities, such as Jilin and Shanghai, have been subject to lockdown since then. We immediately activated our contingency plan to ensure the health and safety of our employees and customers, as well as the operational sustainability of our hotels since the initial outbreak. To undertake our corporate social responsibilities as a leading company, our hotels strictly comply with pandemic prevention requirements and quickly respond to the needs of governmental authorities for quarantine hotel. Moreover, we have reinforced cost control measures for Legacy-Huazhu, which mainly include streamlining headcounts and expenses, concentrating resources on major strategies and negotiating rent waivers. Despite the near-term challenges, our long-term “Sustainable Quality Growth” technique stays intact. In the long term, we are going to constantly heart on clients, franchisees, and workers for constructing {our capability} to trip by means of the ups and downs of the financial cycle in the long term. To assist our franchisees overcome the present tough interval, we launched administration payment waiver and deferral coverage, offered authorized assist for negotiating rental waiver, and utilized tax discount and refund. For our European business, we’re very completely happy to see our DH business has achieved strong restoration for the reason that opening-up in Germany from mid-February 2022. DH’s RevPAR recovered to 80% of the 2019 degree in April 2022, in comparison with solely 47% of the 2019 degree in January 2022. However, since RevPAR restoration continues to be at an early stage, a complete money stream enchancment program stays crucial. Therefore, DH’s near-term focus will stay on effectivity enhancements, negotiation of additional lease waivers, and personnel value optimization.”

First Quarter of 2022 Unaudited Financial Results

Revenue for the primary quarter of 2022 was RMB2.7 billion (US$423 million), representing a 15.2% year-over-year enhance and a 19.9% sequential lower. Revenue from Legacy-Huazhu section for the primary quarter of 2022 was RMB2.3 billion, representing a 4.6% year-over-year enhance and an 18.0% sequential lower. The lower was primarily because of the lockdown in a number of cities in China brought on by large unfold of the Omicron variant. Revenue from Legacy-DH section for the primary quarter of 2022 was RMB406 million, representing a 165.4% year-over-year enhance and a 29.0% sequential lower. The sequential lower was primarily because of disruption of the restoration of our European business when the Omicron variant hit Europe in late December 2021.

Revenue from leased and owned accommodations for the primary quarter of 2022 was RMB1.6 billion (US$259 million), representing a 17.5% year-over-year enhance and a 21.5% sequential lower. Revenue from leased and owned accommodations from Legacy-Huazhu section for the primary quarter of 2022 was RMB1.3 billion, representing a 0.2% year-over-year enhance. Revenue from leased and owned accommodations from Legacy-DH section for the primary quarter of 2022 was RMB384 million, representing a 168.5% year-over-year enhance.

Revenue from manachised and franchised accommodations for the primary quarter of 2022 was RMB989 million (US$156 million), representing a ten.3% year-over-year enhance and a ten.3% sequential lower. Revenue from our Legacy-Huazhu section from manachised and franchised accommodations for the primary quarter of 2022 was RMB974 million, representing a 9.2% year-over-year enhance. Revenue from manachised and franchised accommodations from the Legacy-DH section for the primary quarter of 2022 was RMB15 million, representing a 200.0% year-over-year enhance.

Other income represents income generated from companies aside from our resort operations, which primarily consists of income from the availability of IT services and Huazhu mall and different income from the Legacy-DH section business, totaling RMB50 million (US$8 million) within the first quarter of 2022, in comparison with RMB32 million within the first quarter of 2021 and RMB152 million within the earlier quarter.

Hotel working prices for the primary quarter of 2022 had been RMB2.8 billion (US$443 million), in comparison with RMB2.5 billion within the first quarter of 2021 and RMB3.2 billion within the earlier quarter. The year-over-year enhance was primarily because of steady resort community growth of Legacy-Huazhu, and business restoration of Legacy-DH. Hotel working prices from Legacy-Huazhu section for the primary quarter of 2022 had been RMB2.3 billion, which represented 99.1% of the quarter’s income, in comparison with 92.8% for the primary quarter in 2021 and 84.0% for the earlier quarter.

Selling and advertising bills for the primary quarter of 2022 had been RMB122 million (US$20 million), in comparison with RMB107 million within the first quarter of 2021 and RMB183 million within the earlier quarter. Selling and advertising bills from Legacy-Huazhu section for the primary quarter of 2022 had been RMB78 million, which represented 3.4% of the quarter’s income, in comparison with RMB72 million or 3.3% of income for the primary quarter in 2021, and RMB129 million or 4.6% of income for the earlier quarter.

General and administrative bills for the primary quarter of 2022 had been RMB462 million (US$73 million), in comparison with RMB328 million within the first quarter of 2021 and RMB438 million within the earlier quarter. General and administrative bills from Legacy-Huazhu section for the primary quarter of 2022 had been RMB346 million, which represented 15.2% of the quarter’s income, in comparison with RMB255 million or 11.7% for the primary quarter in 2021 and RMB308 million or 11.1% for the earlier quarter. The enhance was primarily because of investments in our business improvement crew, our data expertise, and our upscale resort division.

Pre-opening bills for the primary quarter of 2022 had been principally associated to the Legacy-Huazhu section and totaled RMB26 million (US$4 million), in comparison with RMB21 million within the first quarter of 2021 and RMB30 million within the earlier quarter.

Other working revenue, internet for the primary quarter of 2022 was RMB45 million (US$7 million), in comparison with RMB29 million within the first quarter of 2021 and RMB555 million within the earlier quarter which primarily associated to governmental subsidy for Legacy-DH business.

Loss from operations for the primary quarter of 2022 was RMB708 million (US$112 million), in comparison with a loss from operations of RMB575 million within the first quarter of 2021 and revenue from operations of RMB39 million within the earlier quarter. Loss from operations from the Legacy-Huazhu section for the primary quarter of 2022 was RMB416 million, in comparison with a loss from operations from the Legacy-Huazhu section of RMB172 million within the first quarter of 2021 and revenue from operations from the Legacy-Huazhu section of RMB60 million within the earlier quarter.

Operating margin, outlined as revenue from operations as a share of revenues, for the primary quarter of 2022 was -26.4%, in contrast with -24.7% for the primary quarter of 2021 and 1.2% for the earlier quarter. Operating margin from the Legacy-Huazhu section for the primary quarter of 2022 was -18.3%, in contrast with -7.9% within the first quarter of 2021 and a pair of.2% within the earlier quarter.

Other revenue, internet for the primary quarter of 2022 was RMB59 million (US$9 million), in comparison with different revenue, internet of RMB262 million for the primary quarter of 2021 and different expense, internet of RMB47 million for the earlier quarter.

Unrealized positive aspects from truthful worth adjustments of fairness securities for the primary quarter of 2022 had been RMB54 million (US$9 million), in comparison with unrealized positive aspects from truthful worth adjustments of fairness securities of RMB238 million within the first quarter of 2021, and unrealized losses from truthful worth adjustments of RMB217 million within the earlier quarter. Unrealized positive aspects (losses) from truthful worth adjustments of fairness securities primarily symbolize the unrealized positive aspects (losses) from our funding in fairness securities with readily determinable truthful values, equivalent to AccorHotels.

Income tax profit for the primary quarter of 2022 was RMB131 million (US$21 million), in comparison with an revenue tax profit of RMB122 million within the first quarter of 2021 and revenue tax expense of RMB16 million within the earlier quarter.

Net loss attributable to Huazhu Group Limited for the primary quarter of 2022 was RMB630 million (US$99 million), in comparison with RMB248 million within the first quarter of 2021 and RMB459 million within the earlier quarter. Net loss attributable to Huazhu Group Limited from the Legacy-Huazhu section for the primary quarter of 2022 was RMB307 million, in comparison with internet revenue attributable to Huazhu Group Limited from the Legacy-Huazhu section of RMB53 million within the first quarter of 2021 and internet loss attributable to Huazhu Group Limited from the Legacy-Huazhu section of RMB419 million within the earlier quarter.

Basic and diluted losses per share/American depositary share (ADS). For the primary quarter of 2022, fundamental and diluted losses per share had been RMB0.20 (US$0.03). Adjusted fundamental and diluted losses per share (non-GAAP), which excluded share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities, had been RMB0.21 (US$0.03). Basic and diluted losses per ADS had been RMB2.02 (US$0.32). Adjusted fundamental and diluted losses per ADS (non-GAAP), which excluded share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities, had been RMB2.12 (US$0.33).

EBITDA (non-GAAP) for the primary quarter of 2022 was damaging RMB301 million (US$48 million), in contrast with RMB70 million within the first quarter of 2021 and RMB46 million within the earlier quarter. EBITDA from the Legacy-Huazhu section for the primary quarter of 2022 was damaging RMB61 million, in contrast with RMB410 million within the first quarter of 2021 and damaging RMB23 million within the earlier quarter. Adjusted EBITDA (non-GAAP), which excluded share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities, for the primary quarter of 2022 was damaging RMB333 million (US$53 million), in contrast with damaging RMB133 million within the first quarter of 2021 and RMB278 million within the earlier quarter. The adjusted EBITDA from the Legacy-Huazhu section (non-GAAP) for the primary quarter of 2022 was damaging RMB93 million, in contrast with RMB207 million within the first quarter of 2021 and RMB209 million within the earlier quarter.

Cash stream. Operating money outflow for the primary quarter of 2022 was RMB921 million (US$144 million). Investing money outflow for the primary quarter of 2022 was RMB201 million (US$32 million). Financing money influx for the primary quarter of 2022 was RMB146 million (US$23 million).

Cash and money equivalents and Restricted money. As of March 31, 2022, the Company had a complete stability of money and money equivalents of RMB4.1 billion (US$651 million) and restricted money of RMB24 million (US$4 million).

Debt financing. As of March 31, 2022, the Company had a complete debt stability of RMB10.1 billion (US$1.6 billion) and the unutilized credit score facility obtainable to the Company was RMB3.0 billion.

COVID-19 replace
For our Legacy-Huazhu business, RevPAR restoration within the first two months of 2022 was on monitor. 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, equivalent to Shanghai and Jilin, have been topic to lockdown since then, which resulted in a pointy decline of each business and leisure touring actions. However, this outbreak led to an increase in demand for our accommodations 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 in phrases of the influence on our Legacy-Huazhu business within the near-term. To mitigate dangers, we at the moment are implementing a number of prices and money stream administration measures.

Legacy-DH has been experiencing steady RevPAR restoration since Germany unfolded its opening-up plan in mid-February 2022. RevPAR in April 2022 recovered to 80% of the 2019 degree, as in comparison with solely 47% of the 2019 degree in January 2022. However, since RevPAR restoration continues to be at an early stage, a complete money stream enchancment program stays crucial. Therefore, DH will constantly deal with effectivity enhancements, negotiation of additional lease waivers, and personnel value optimization.

Guidance
Since March 2022, the extremely infectious Omicron variant has been spreading quickly in China which once more critically affected our business efficiency. Also, the present COVID prevention coverage has rendered business efficiency extra unpredictable within the foreseeable future. Under such circumstances, we are going to droop offering or updating steering in respect of annual income and resort openings till the state of affairs sustainably improves. Nevertheless, we are going to proceed to offer quarterly steering based mostly on our greatest understanding of the newest state of affairs.

In the second quarter of 2022, Huazhu expects income to say no 2% to six% in comparison with the second quarter of 2021, or to say no 23% to 27% if excluding DH, primarily because of massive impacts from the Omicron variant outbreak in China.

The above forecast displays the Company’s present and preliminary view, which is topic to vary.

Conference Call
Huazhu’s administration will host a convention name at 7 a.m. (U.S. Eastern time) on Tuesday, May 31, 2022 (or 7 p.m. (Hong Kong time) on Tuesday, May 31, 2022) following the announcement. The convention name shall be a Direct Event name. All members should preregister on-line previous to the decision. Please use the hyperlink http://apac.directeventreg.com/registration/event/2263289 to full the web registration at the least quarter-hour previous to the graduation of the convention name. Once preregistration has been accomplished, members will obtain dial-in numbers, an occasion passcode, and a singular registrant ID. To be a part of the convention, please dial the quantity you obtain, enter the occasion passcode adopted by your distinctive registrant ID, and you’ll be joined to the convention immediately. Please dial in roughly 10 minutes earlier than the scheduled time of the decision.

A recording of the convention name shall be obtainable after the conclusion of the convention name by means of June 7, 2022. Please dial +1 (855) 452 5696 (for callers within the US), 400 632 2162 (for callers in mainland China), 800 963 117 (for callers in Hong Kong) or +61 2 8199 0299 (for callers outdoors the U.S., mainland China and Hong Kong) and enter the passcode 2263289.

The convention name may even be webcast stay over the Internet and will be accessed by all events on the Company’s web site, https://ir.huazhu.com.

Use of Non-GAAP Financial Measures
To complement the Company’s unaudited consolidated monetary outcomes introduced in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company makes use of the next non-GAAP measures outlined as non-GAAP monetary measures by the U.S. Securities and Exchange Commission (“SEC”): adjusted internet revenue (loss) attributable to Huazhu Group Limited excluding share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities; adjusted fundamental and diluted earnings (losses) per share/ADS excluding share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities; EBITDA; adjusted EBITDA, adjusted EBITDA from the Legacy-Huazhu section and adjusted EBITDA from the Legacy-DH section excluding share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities. The presentation of these non-GAAP monetary measures isn’t supposed to be thought of in isolation or as an alternative choice to the monetary data ready and introduced in accordance with U.S. GAAP. For extra data on these non-GAAP monetary measures, please see the desk captioned “Reconciliations of GAAP and non-GAAP results” set forth on the finish of this launch. The Company believes that these non-GAAP monetary measures present significant supplemental data concerning Company efficiency by excluding share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities that is probably not indicative of Company working efficiency. The Company believes that each administration and traders profit from referring to those non-GAAP monetary measures in assessing Company efficiency and when planning and forecasting future intervals. These non-GAAP monetary measures additionally facilitate administration’s inside comparisons to the Company’s historic efficiency. The Company believes these non-GAAP monetary measures are additionally helpful to traders in permitting for higher transparency with respect to supplemental data used commonly by Company administration in monetary and operational decision-making. A limitation of utilizing non-GAAP monetary measures excluding share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities is that share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities have been and can proceed to be vital and recurring within the Company’s business. Management compensates for these limitations by offering particular data concerning the GAAP quantities excluded from every non-GAAP measure. The accompanying tables have extra particulars on the reconciliations between GAAP monetary measures which are most immediately corresponding to non-GAAP monetary measures.

The Company believes that EBITDA is a helpful monetary metric to evaluate the working and monetary efficiency earlier than the influence of investing and financing transactions and revenue taxes, given the numerous investments that the Company has made in leasehold enhancements, depreciation and amortization expense that comprise a good portion of the Company’s value construction. In addition, the Company believes that EBITDA is broadly utilized by different firms within the lodging business and could also be utilized by traders as a measure of monetary efficiency. The Company believes that EBITDA data offers traders with a useful gizmo for comparability between intervals as a result of it excludes depreciation and amortization expense attributable to capital expenditures. The Company additionally makes use of adjusted EBITDA, which is outlined as EBITDA earlier than share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities, to evaluate working outcomes of its accommodations in operation. The Company believes that the exclusion of share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities helps facilitate year-on-year comparisons of the outcomes of operations because the share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities is probably not indicative of Company working efficiency.

The Company believes that unrealized positive aspects and losses from adjustments in truthful worth of fairness securities are usually meaningless in understanding the Company’s reported outcomes or evaluating the financial efficiency of its companies. These positive aspects and losses have precipitated and can proceed to trigger vital volatility in reported periodic earnings.

Therefore, the Company believes adjusted EBITDA extra intently displays the efficiency functionality of our accommodations. The presentation of EBITDA and adjusted EBITDA shouldn’t be construed as a sign that the Company’s future outcomes shall be unaffected by different expenses and positive aspects thought of to be outdoors the strange course of business.

The use of EBITDA and adjusted EBITDA has sure limitations. Depreciation and amortization expense for numerous long-term belongings (together with land use rights), revenue tax, curiosity expense and curiosity revenue have been and shall be incurred and are usually not mirrored within the presentation of EBITDA. Share-based compensation bills and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities have been and shall be incurred and are usually not mirrored within the presentation of adjusted EBITDA. Each of this stuff must also be thought of within the total analysis of the outcomes. The Company compensates for these limitations by offering the related disclosure of depreciation and amortization, curiosity revenue, curiosity expense, revenue tax expense, share-based compensation bills, and unrealized positive aspects (losses) from truthful worth adjustments of fairness securities and different related gadgets each within the reconciliations to the U.S. GAAP monetary measures and within the consolidated monetary statements, all of which must be thought of when evaluating the efficiency of the Company.

The phrases EBITDA and adjusted EBITDA are usually not outlined underneath U.S. GAAP, and neither EBITDA nor adjusted EBITDA is a measure of internet revenue, working revenue, working efficiency or liquidity introduced in accordance with U.S. GAAP. When assessing the working and monetary efficiency, traders shouldn’t contemplate these information in isolation or as an alternative choice to the Company’s internet revenue, working revenue or another working efficiency measure that’s calculated in accordance with U.S. GAAP. In addition, the Company’s EBITDA or adjusted EBITDA is probably not corresponding to EBITDA or adjusted EBITDA or equally titled measures utilized by different firms since such different firms might not calculate EBITDA or adjusted EBITDA in the identical method because the Company does.

Reconciliations of the Company’s non-GAAP monetary measures, together with EBITDA and adjusted EBITDA, to the consolidated assertion of operations data are included on the finish of this press launch.

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 accommodations with 764,859 rooms in operation in 17 international locations. Huazhu’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, 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 consists of leased and owned, manachised and franchised fashions. Under the lease and possession mannequin, Huazhu immediately operates accommodations sometimes situated on leased or owned properties. Under the manachise mannequin, Huazhu manages manachised accommodations by means of the on-site resort managers that Huazhu appoints, and Huazhu collects charges from franchisees. Under the franchise mannequin, Huazhu offers coaching, reservations and assist providers to the franchised accommodations, and collects charges from franchisees however doesn’t appoint on-site resort managers. Huazhu applies a constant normal and platform throughout all of its accommodations. As of March 31, 2022, Huazhu operates 14 p.c of its resort rooms underneath lease and possession mannequin, and 86 p.c underneath 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 accommodates forward-looking statements which contain dangers and uncertainties. Such elements and dangers embrace our anticipated progress methods; our future outcomes of operations and monetary situation; financial situations; the regulatory setting; our potential to draw and retain clients and leverage our manufacturers; traits and competitors within the lodging business; the anticipated progress of demand for lodging; and different elements and dangers detailed in our filings with the SEC. 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 equivalent to “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the damaging of such phrases or different comparable terminology. Readers shouldn’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 this of new data, future occasions or in any other case, except required by relevant regulation.

—Financial Tables and Operational Data Follow—

Operating Results: Legacy-Huazhu⁽¹⁾

Operating Results: Legacy-DH⁽⁴⁾

Hotel Portfolio by Brand

(6) As of March 31, 2022, 2 operational accommodations and 9 pipeline accommodations of IntercityHotel had been in China.
(7) As of March 31, 2022, 11 operational accommodations and 5 pipeline accommodations of Steigenberger Hotels & Resorts had been in China.
(8) As of March 31, 2022, 2 operational accommodations and seven pipeline accommodations of MAXX had been in China.
(9) As of March 31, 2022, 3 operational accommodations and 1 pipeline resort of Steigenberger Icon had been in China.
(10) Other accommodations embrace different associate accommodations and different resort manufacturers in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House).

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¹ Hotel turnover refers to complete transaction worth of room and non-room income from Huazhu accommodations (i.e., leased and operated, manachised and franchised accommodations).
² The conversion of Renminbi (“RMB”) into United States {dollars} (“US$”) relies on the trade price of US$1.00=RMB6.3393 on March 31, 2022 as set forth in H.10 statistical launch of the U.S. Federal Reserve Board and obtainable at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
³ The conversion of Renminbi (“RMB”) into United States {dollars} (“US$”) relies on the trade price of US$1.00=RMB6.3393 on March 31, 2022 as set forth in H.10 statistical launch of the U.S. Federal Reserve Board and obtainable at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.

Contact Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: [email protected]
http://ir.huazhu.com