Huazhu Group Limited Reports Fourth Quarter and Full Year

• A complete of seven,830 resorts or 753,216 lodge rooms in operation as of December 31, 2021.
• Hotel turnover¹ elevated 8.3% year-over-year to RMB11.9 billion for the fourth quarter of 2021, and elevated 36.4% year-over-year to RMB45.4 billion for the total yr of 2021. Excluding Steigenberger Hotels AG and its subsidiaries (“DH”, or “Legacy-DH”), lodge turnover elevated 2.2% year-over-year for the fourth quarter and elevated 38.3% year-over-year for the total yr of 2021.
• Revenue elevated 9.1% year-over-year to RMB3.4 billion (US$526 million)² for the fourth quarter of 2021, in keeping with income steerage beforehand introduced of 6% to 10% in comparison with the fourth quarter of 2020, and elevated 25.4% year-over-year to RMB12.8 billion (US$2.0 billion) for the total yr of 2021. Revenue from Legacy-Huazhu phase for the fourth quarter of 2021 decreased 1.6% year-over-year, higher than income steerage beforehand introduced of unfavorable 4% to unfavorable 8%.
• Net loss attributable to Huazhu Group Limited was RMB459 million (US$72 million) for the fourth quarter of 2021, in contrast with web earnings attributable to Huazhu Group Limited of RMB703 million for the fourth quarter of 2020 and web loss attributable to Huazhu Group Limited of RMB137 million within the earlier quarter. Net loss attributable to Huazhu Group Limited was RMB465 million (US$73 million) for the total yr of 2021, in contrast with RMB2.2 billion for the total yr of 2020. Net loss attributable to Huazhu Group Limited from Legacy-Huazhu phase was RMB419 million for the fourth quarter of 2021, in contrast with web earnings attributable to Huazhu Group Limited from Legacy-Huazhu phase of RMB1.0 billion for the fourth quarter of 2020. Net earnings attributable to Huazhu Group Limited from Legacy-Huazhu phase was RMB153 million for the total yr of 2021, in contrast with web loss attributable to Huazhu Group Limited from Legacy-Huazhu phase of RMB847 million for the total yr of 2020.
• EBITDA (non-GAAP) for the fourth quarter of 2021 was RMB46 million (US$7 million), in contrast with RMB1.1 billion for the fourth quarter of 2020. EBITDA (non-GAAP) for the total yr of 2021 was RMB1.4 billion (US$215 million), in contrast with unfavorable RMB631 million for the total yr of 2020. EBITDA (non-GAAP) from Legacy-Huazhu phase was unfavorable RMB23 million for the fourth quarter of 2021, in contrast with RMB1.5 billion for the fourth quarter of 2020. EBITDA (non-GAAP) from Legacy-Huazhu phase was RMB1.8 billion for the total yr of 2021, in contrast with RMB736 million for the total yr of 2020.
• Adjusted EBITDA (non-GAAP), which excluded share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities, was RMB278 million (US$43 million) for the fourth quarter of 2021, in contrast with RMB375 million for the fourth quarter of 2020. Adjusted EBITDA (non-GAAP) for the total yr of 2021 was RMB1.6 billion (US$247 million), in contrast with unfavorable RMB244 million for the total yr of 2020. Adjusted EBITDA (non-GAAP) from Legacy-Huazhu phase was RMB209 million for the fourth quarter of 2021, in contrast with RMB764 million for the fourth quarter of 2020. Adjusted EBITDA   (non-GAAP) from Legacy-Huazhu phase was RMB2.0 billion for the total yr of 2021, in contrast with RMB1.1 billion for the total yr of 2020.
• In the primary quarter of 2022, Huazhu expects income progress to be within the vary of 11%-15% in comparison with the primary quarter of 2021, or to vary from 1% to five% if excluding DH. For the total yr of 2022, we anticipate income progress to vary from 15% to twenty% in comparison with the total yr of 2021, or to vary from 4% to 9% if excluding DH.

SHANGHAI, China., March 23, 2022 (GLOBE NEWSWIRE) — Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) (“Huazhu”, “the Company”, “we” or “our”), a world-leading lodge group, at the moment introduced its unaudited monetary outcomes for the fourth quarter and full yr ended December 31, 2021.

As of December 31, 2021, Huazhu’s worldwide lodge community in operation totaled 7,830 resorts and 753,216 rooms, together with 124 resorts from DH. For the total yr of 2021, the Company opened 33 leased resorts and 1,507 manachised and franchised resorts, and closed 48 leased resorts and 451 manachised and franchised resorts. During the fourth quarter of 2021, our Legacy-Huazhu business opened 443 resorts, together with 7 leased (or leased-and-operated) resorts and 436 manachised (or franchised-and-managed) resorts and franchised resorts, and closed a complete of 82 resorts, together with 8 leased resorts and 74 manachised and franchised resorts. For the total yr of 2021, Legacy-Huazhu opened 29 leased resorts and 1,503 manachised and franchised resorts, and closed 48 leased resorts and 447 manachised and franchised resorts. During the fourth quarter of 2021, the Legacy-DH business opened 1 leased lodge and 3 manachised and franchised resorts, and closed 1 manachised and franchised lodge. For the total yr of 2021, Legacy-DH opened 4 leased resorts and 4 manachised and franchised resorts, and closed 4 manachised and franchised resorts. As of December 31, 2021, Huazhu had a complete of two,608 unopened resorts in our pipeline, together with 2,571 resorts from the Legacy-Huazhu business and 37 resorts from the Legacy-DH business.

Legacy-Huazhu Only – Fourth Quarter and Full Year of 2021 Operational Highlights

As of December 31, 2021, Legacy-Huazhu had 7,706 resorts in operation, together with 662 leased and owned resorts, and 7,044 manachised and franchised resorts. In addition, as of the identical date, Legacy-Huazhu had 728,143 lodge rooms in operation, together with 91,284 rooms below the lease and possession mannequin, and 636,859 rooms below the manachise and franchise fashions. Legacy-Huazhu additionally had 2,571 unopened resorts in our pipeline, together with 18 leased and owned resorts and 2,553 manachised and franchised resorts. The following discusses Legacy-Huazhu’s RevPAR, common each day room charge (“ADR”) and occupancy charge for its leased and owned resorts, in addition to manachised and franchised resorts (excluding resorts below governmental requisition) for the durations indicated.

• The ADR was RMB239 within the fourth quarter of 2021, in contrast with RMB231 within the fourth quarter of 2020, RMB246 within the earlier quarter, and RMB232 within the fourth quarter of 2019. The ADR was RMB239 for the total yr of 2021, in contrast with RMB210 for the earlier yr, and RMB234 for the 2019.

• The occupancy charge for all Legacy-Huazhu resorts in operation was 68.2% within the fourth quarter of 2021, in contrast with 80.6% within the fourth quarter of 2020, 71.9% within the earlier quarter, and 82.2% within the fourth quarter of 2019. The occupancy charge was 72.2% for the total yr of 2021, in contrast with 71.0% for the earlier yr, and 84.4% for the 2019.

• Blended RevPAR was RMB163 within the fourth quarter of 2021, in contrast with RMB186 within the fourth quarter of 2020, RMB177 within the earlier quarter, and RMB191 within the fourth quarter of 2019. Blended RevPAR was RMB172 for the total yr of 2021, in contrast with RMB149 for the earlier yr, and RMB198 for the 2019.

• For all Legacy-Huazhu resorts which had been in operation for not less than 18 months, the same-hotel RevPAR was RMB162 for the fourth quarter of 2021, representing a 15.6% lower from RMB192 for the fourth quarter of 2020, with a 0.3% improve in ADR and an 13.1-percentage-point lower in occupancy charge; evaluating the fourth quarter of 2021 with the pre-COVID-19 fourth quarter of 2019, RevPAR represented a 21.7% lower from RMB204 for the fourth quarter of 2019, with a 3.5% lower in ADR, and a 16.2-percentage-point lower in occupancy charge. The same-hotel RevPAR was RMB172 for the total yr of 2021, representing a ten.2% improve from RMB156 for the total yr of 2020, with a ten.0% improve in ADR and a 0.1-percentage-point improve in occupancy charge; evaluating the total yr of 2021 with the total yr of 2019, RevPAR represented a 20.1% lower from RMB209, with a 4.7% lower in ADR, and a 14.2-percentage-point lower in occupancy charge.

Legacy-DH Only – Fourth Quarter and Full Year of 2021 Operational Highlights

As of December 31, 2021, Legacy-DH had 124 resorts in operation, together with 76 leased and owned resorts and 48 manachised and franchised resorts. In addition, as of the identical date, Legacy-DH had 25,073 lodge rooms in operation, together with 14,264 rooms below the lease and possession mannequin, and 10,809 rooms below the manachise and franchise fashions. Legacy-DH additionally had unopened 37 resorts in our pipeline, together with 28 leased and owned resorts and 9 manachised and franchised resorts. The following discusses Legacy-DH’s RevPAR, ADR and occupancy charge for its leased in addition to manachised and franchised resorts (excluding resorts quickly closed) for the durations indicated. 

• The ADR was EUR94 within the fourth quarter of 2021, in contrast with EUR76 within the fourth quarter of 2020 and EUR99 within the earlier quarter. The ADR was EUR90 for the total yr of 2021, in contrast with EUR88 for the earlier yr.

• The occupancy charge for all Legacy-DH resorts in operation was 46.1% within the fourth quarter of 2021, in contrast with 22.5% within the fourth quarter of 2020 and 48.6% within the earlier quarter. The occupancy charge was 35.2% for the total yr of 2021, in contrast with 34.8% for the earlier yr.

• Blended RevPAR was EUR43 within the fourth quarter of 2021, in contrast with EUR17 within the fourth quarter of 2020 and EUR48 within the earlier quarter. Blended RevPAR was EUR32 for the total yr of 2021, in contrast with EUR31 for the earlier yr.

Jin Hui, CEO of Huazhu commented: “An upsurge of COVID-19 in more than 20 Chinese provinces has occurred since November 2021and negatively affected our business recovery in the fourth quarter, with RevPAR recovering to 86% of the same period of 2019. Since the beginning of 2022, travelling restrictions due to the Beijing Olympic Winter Games added more pressures to our business in addition to the pandemic. Unfortunately, the situation has not improved since March 2022 as the highly infectious Omicron variant has been spreading rapidly in China. As China’s “zero-COVID” coverage stays in place, these near-term uncertainties and fluctuations are inevitable. For our European business, it was impacted once more by tightened governmental management measures and testing necessities as a result of third and fourth waves of the COVID-19 pandemic in European nations. As a end result, the restoration development of DH was additionally disrupted in November 2021. The RevPAR within the fourth quarter recovered to 66% of the identical interval of 2019, much like final quarter.

“2021 was another challenging year due to COVID-19, especially in the second half,” Mr. Jin continued. “Although the near-term business performance could still inevitably see some volatilities, not only from the pandemic but also from various global macro factors, our long-term view on the Chinese lodging industry remains optimistic and unchanged. We are unswervingly implementing our “Sustainable Quality Growth” technique which implies that whereas progress continues to be the primary theme, high quality and sustainability are two important conditions. We are constantly placing larger emphasis on our prospects’ satisfaction and our franchisees’ profitability. Last however not least, Germany was steadily reopening since mid-February 2022, which might assist reaccelerate our RevPAR restoration. Additionally, operational effectivity enchancment and steady digital transformation will stay as our near-term focus.

Fourth Quarter and Full Year of 2021 Unaudited Financial Results

Revenue for the fourth quarter of 2021 was RMB3.4 billion (US$526 million), representing a 9.1% year-over-year improve and a 4.9% sequential lower. Revenue from Legacy-Huazhu phase for the fourth quarter of 2021 was RMB2.8 billion, representing a 1.6% year-over-year lower and a 5.4% sequential lower. The lower was primarily as a result of widespread COVID-19 outbreaks in additional than 20 provinces of China. Revenue from Legacy-DH phase for the fourth quarter of 2021 was RMB574 million, representing a 129.6% year-over-year improve and 2.5% sequential lower. The sequential lower was primarily due disruption of the restoration of our European business when a fourth wave of the pandemic hit Europe in November.

Revenue for the total yr of 2021 was RMB12.8 billion (US$2.0 billion), representing a rise of 25.4% from the total yr of 2020. Revenue from Legacy-Huazhu phase for the total yr of 2021 was RMB11.2 billion, representing a 29.8% year-over-year improve. Revenue from Legacy-DH phase for the total yr of 2021 was RMB1.5 billion, representing a 0.5% year-over-year improve.

Revenue from leased and owned resorts for the fourth quarter of 2021 was RMB2.1 billion (US$329 million), representing a 3.4% year-over-year improve and a ten.7% sequential lower. Revenue from leased and owned resorts from Legacy-Huazhu phase for the fourth quarter of 2021 was RMB1.6 billion, representing a 12.6% year-over-year lower. Revenue from leased and owned resorts from Legacy-DH phase for the fourth quarter of 2021 was RMB528 million, representing a 125.6% year-over-year improve.

For the total yr of 2021, income from leased and owned resorts was RMB8.1 billion (US$1.3 billion), representing a rise of 17.5% from the total yr of 2020. Revenue from leased and owned resorts from Legacy-Huazhu phase for the total yr of 2021 was RMB6.7 billion, representing a 22.7% year-over-year improve. Revenue from leased and owned resorts from Legacy-DH phase for the total yr of 2021 was RMB1.4 billion, representing a 1.7% year-over-year lower.

Revenue from manachised and franchised resorts for the fourth quarter of 2021 was RMB1.1 billion (US$172 million), representing a 9.9% year-over-year improve and a 2.7% sequential lower. Revenue from Legacy-Huazhu phase from manachised and franchised resorts for the fourth quarter of 2021 was RMB1.1 billion, representing an 8.4% year-over-year improve. Revenue from manachised and franchised resorts from Legacy-DH phase for the fourth quarter of 2021 was RMB25 million, representing a 177.8% year-over-year improve.

For the total yr of 2021, income from manachised and franchised resorts was RMB4.4 billion (US$690 million), representing a rise of 40.2% from the total yr of 2020. Revenue from manachised and franchised resorts from Legacy-Huazhu phase for the total yr of 2021 was RMB4.3 billion, representing a 40.4% year-over-year improve. Revenue from manachised and franchised resorts from Legacy-DH phase for the total yr of 2021 was RMB56 million, representing a 30.2% year-over-year improve.

Other income represents income generated from companies aside from our lodge operations, which primarily consists of income from the supply of IT merchandise and providers to resorts, and income from Huazhu Mall™ and different income from the Legacy-DH phase business, totaling RMB159 million (US$25 million) within the fourth quarter of 2021, in comparison with RMB48 million within the fourth quarter of 2020 and RMB50 million within the earlier quarter.

For the total yr of 2021, different revenues was RMB271 million (US$43 million), in contrast with RMB152 million for the total yr of 2020.

Hotel working prices for the fourth quarter of 2021 had been RMB3.2 billion (US$501 million), in comparison with RMB2.7 billion within the fourth quarter of 2020 and RMB2.9 billion within the earlier quarter. The improve was primarily on account of increased rental prices for our leased and owned upscale resorts and acquired CitiGO resorts, increased personnel prices from steady lodge community growth, and impairment loss totaling RMB257 million，which was primarily associated to DH. Hotel working prices from Legacy-Huazhu phase for the fourth quarter of 2021 had been RMB2.3 billion, which represented 84.0% of the quarter’s income, in comparison with 73.4% for the fourth quarter in 2020 and 76.9% for the earlier quarter.

For the total yr of 2021, lodge working prices had been RMB11.3 billion (US$1.8 billion), in comparison with RMB9.7 billion in 2020. Hotel working prices from Legacy-Huazhu phase for the total yr of 2021 had been RMB8.8 billion, which represented 78.3% of income, in comparison with 85.1% for 2020.

Selling and advertising bills for the fourth quarter of 2021 had been RMB183 million (US$29 million), in comparison with RMB181 million within the fourth quarter of 2020 and RMB189 million within the earlier quarter. Selling and advertising bills from Legacy-Huazhu phase for the fourth quarter of 2021 had been RMB129 million, which represented 4.6% of the quarter’s income, in comparison with RMB149 million or 5.3% of income for the fourth quarter in 2020, and RMB129 million or 4.4% of income for the earlier quarter.

For the total yr of 2021, promoting and advertising bills had been RMB641 million (US$101 million), in comparison with RMB597 million in 2020. Selling and advertising bills from Legacy-Huazhu phase for the total yr of 2021 had been RMB460 million, which represented 4.1% of income, in comparison with RMB388 million or 4.5% of income for the total yr of 2020.

General and administrative bills for the fourth quarter of 2021 had been RMB441 million (US$70 million), in comparison with RMB336 million within the fourth quarter of 2020 and RMB388 million within the earlier quarter. General and administrative bills from Legacy-Huazhu phase for the fourth quarter of 2021 had been RMB308 million, which represented 11.1% of the quarter’s income, in comparison with RMB257 million or 9.1% for the fourth quarter in 2020 and RMB306 million or 10.4% for the earlier quarter. The improve was primarily on account of investments in our business improvement group, our data know-how, and our upscale lodge division.

For the total yr of 2021, basic and administrative bills had been RMB1.5 billion (US$242 million), in comparison with RMB1.3 billion in 2020. General and administrative bills from Legacy-Huazhu phase for the total yr of 2021 had been RMB1.2 billion, which represented 10.3% of income, in comparison with RMB894 million or 10.3% of income for the total yr of 2020. The improve was primarily on account of investments in our business improvement group, our data know-how, and our upscale lodge division.

Pre-opening bills for the fourth quarter of 2021 had been principally associated to Legacy-Huazhu phase and totaled RMB30 million (US$5 million), in comparison with RMB36 million within the fourth quarter of 2020 and RMB15 million within the earlier quarter.

Pre-opening bills for the total yr of 2021 had been RMB81 million (US$13 million), in comparison with RMB288 million in 2020, representing a year-over-year lower of 71.9%. Pre-opening bills as a share of income had been 0.6% in 2021, in comparison with 2.8% in 2020.

Other working earnings, web for the fourth quarter of 2021 was RMB559 million (US$88 million), in comparison with RMB118 million within the fourth quarter of 2020 and RMB40 million within the earlier quarter. The improve was primarily attributable to subsidy earnings in our DH business on account of COVID-19 influence.

Other working earnings, web for the total yr of 2021 was RMB990 million (US$155 million), in comparison with RMB480 million in 2020. The year-over-year improve was primarily attributable to subsidy earnings in our DH business on account of COVID-19 influence.

Income from operations for the fourth quarter of 2021 was RMB39 million (US$6 million), in comparison with loss from operations of RMB134 million within the fourth quarter of 2020 and earnings from operations of RMB72 million within the earlier quarter. Income from operations from Legacy-Huazhu phase for the fourth quarter of 2021 was RMB60 million, in comparison with RMB315 million within the fourth quarter of 2020 and RMB239 million within the earlier quarter.

Income from operations for the total yr of 2021 was RMB164 million (US$26 million). Income from operations from Legacy-Huazhu phase for the total yr of 2021 was RMB891 million, in comparison with a loss from operations of RMB100 million in 2020.

Operating margin, outlined as earnings from operations as a share of revenues, for the fourth quarter of 2021, was 1.2%. Operating margin from Legacy-Huazhu phase for the fourth quarter of 2021 was 2.2%, in contrast with 11.2% within the fourth quarter of 2020 and 8.1% within the earlier quarter.

Operating margin for the total yr of 2021 was 1.3%. Operating margin from Legacy-Huazhu phase for the total yr of 2021 was 7.9%, in contrast with a unfavorable 1.2% in 2020.

Other expense, web for the fourth quarter of 2021 was RMB47 million (US$7 million), in comparison with different expense, web of RMB8 million for the fourth quarter of 2020 and different earnings, web of RMB4 million for the earlier quarter.

Other earnings, web for the total yr of 2021 was RMB157 million (US$25 million), in comparison with different expense, web of RMB89 million in 2020.

Unrealized losses from truthful worth adjustments of fairness securities for the fourth quarter of 2021 had been RMB217 million (US$34 million), in comparison with unrealized beneficial properties from truthful worth adjustments of fairness securities of RMB733 million within the fourth quarter of 2020, and unrealized losses from truthful worth adjustments of RMB60 million within the earlier quarter. Unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities primarily signify the unrealized beneficial properties (losses) from our funding in fairness securities with readily determinable truthful values, corresponding to AccorHotels.

For the total yr of 2021, unrealized losses from truthful worth adjustments of fairness securities had been RMB96 million (US$15 million), in comparison with unrealized losses from truthful worth adjustments of fairness securities of RMB265 million in 2020.

Income tax expense for the fourth quarter of 2021 was RMB16 million (US$3 million), in comparison with earnings tax advantage of RMB66 million in the identical interval of 2020 and RMB13 million within the earlier quarter. For the total yr of 2021, earnings tax expense was RMB12 million (US$2 million), in comparison with earnings tax advantage of RMB215 million in 2020.

Net loss attributable to Huazhu Group Limited for the fourth quarter of 2021 was RMB459 million (US$72 million), in comparison with a web earnings of RMB703 million within the fourth quarter of 2020 and a web lack of RMB137 million within the earlier quarter. Net loss attributable to Huazhu Group Limited from Legacy-Huazhu phase for the fourth quarter of 2021 was RMB419 million, in comparison with web earnings attributable to Huazhu Group Limited from Legacy-Huazhu phase of RMB1.0 billion within the fourth quarter of 2020 and web earnings attributable to Huazhu Group Limited from Legacy-Huazhu phase of RMB27 million within the earlier quarter.

Net loss attributable to Huazhu Group Limited for the total yr of 2021 was RMB465 million (US$73 million).

Basic and diluted losses per share/American depositary share (ADS). For the fourth quarter of 2021, primary and diluted losses per share had been RMB0.15 (US$0.02). Adjusted primary and diluted losses per share (non-GAAP), which excluded share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities, had been RMB0.07 (US$0.01). Basic and diluted losses per ADS had been RMB1.47 (US$0.23). Adjusted primary and diluted losses per ADS (non-GAAP), which excluded share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities, had been RMB0.73 (US$0.11).

For the total yr of 2021, primary and diluted losses per share had been RMB0.15 (US$0.02). Adjusted primary and diluted losses per share (non-GAAP) had been RMB0.08 (US$0.01). Basic and diluted losses per ADS had been RMB1.49 (US$0.23). Adjusted primary and diluted losses per ADS (non-GAAP) had been RMB0.83 (US$0.13).

EBITDA (non-GAAP) for the fourth quarter of 2021 was RMB46 million (US$7 million), in contrast with RMB1.1 billion within the fourth quarter of 2020 and RMB294 million within the earlier quarter. EBITDA (non-GAAP) from Legacy-Huazhu phase for the fourth quarter of 2021 was unfavorable RMB23 million, in contrast with RMB1.5 billion within the fourth quarter of 2020 and RMB409 million within the earlier quarter. Adjusted EBITDA (non-GAAP), which excluded share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities, for the fourth quarter of 2021 was RMB278 million (US$43 million), in contrast with RMB375 million within the fourth quarter of 2020 and RMB385 million within the earlier quarter. The adjusted EBITDA (non-GAAP) from Legacy-Huazhu phase for the fourth quarter of 2021 was RMB209 million, in contrast with RMB764 million within the fourth quarter of 2020 and RMB500 million within the earlier quarter.

EBITDA (non-GAAP) for the total yr of 2021 was RMB1.4 billion (US$215 million), in contrast with a unfavorable RMB631 million in 2020. EBITDA (non-GAAP) from Legacy-Huazhu phase for the total yr of 2021 was RMB1.8 billion, in contrast with RMB736 million in 2020. Excluding share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities, adjusted EBITDA (non-GAAP) for the total yr of 2021 was RMB1.6 billion (US$247 million). The adjusted EBITDA (non-GAAP) from Legacy-Huazhu phase for the total yr of 2021 was RMB2.0 billion, in contrast with RMB1.1 billion in 2020.

Cash movement. Operating money influx for the fourth quarter of 2021 was RMB867 million (US$136 million). Investing money outflow for the fourth quarter of 2021 was RMB503 million (US$79 million). Financing money outflow for the fourth quarter of 2021 was RMB598 million (US$94 million).

Operating money influx for the total yr of 2021 was RMB1.3 billion (US$210 million), representing a rise of 120.4% from 2020. Investing money outflow for the total yr of 2021 was RMB1.4 billion (US$219 million), in comparison with RMB8.1 billion in 2020. Financing money outflow for the total yr of 2021 was RMB1.8 billion (US$283 million), in comparison with financing money influx of RMB883 million in 2020.

Cash and money equivalents and Restricted money. As of December 31, 2021, the Company had a complete steadiness of money and money equivalents of RMB5.1 billion (US$803 million) and restricted money of RMB25 million (US$4 million).

Debt financing. As of December 31, 2021, the Company had a complete debt steadiness of RMB9.8 billion (US$1.5 billion) and the unutilized credit score facility obtainable to the Company was RMB3.3 billion.

COVID-19 replace
For our Legacy-Huazhu business, RevPAR restoration in This autumn 2021 was nonetheless considerably impacted by a number of COVID-19 resurgences in China. In phrases of month-to-month breakdown, our RevPAR recovered to 90%, 76%, and 90% of the degrees in October, November, and December 2019, respectively. Entering into 2022, our RevPAR restoration in January and February was 75% and 83% of the corresponding ranges in 2019, respectively, which slowed down from This autumn 2021. It was primarily as a result of results of the brand new Omicron variant, one other yr of “stay local” steerage throughout the Chinese Lunar New Year vacation, in addition to strict journey restrictions in Beijing and its surrounding areas throughout the Beijing Winter Olympic Games. Unfortunately, the state of affairs has not but improved in March 2022 because the extremely infectious Omicron variant has continued to unfold in China. As lengthy as China’s “zero-COVID” coverage stays in place, these near-term uncertainties and fluctuations are inevitable.

After business restoration in Q3 2021 – because of the progress of vaccination campaigns and easing of restrictions – our DH business in This autumn 2021 was impacted by tightened governmental management measures and testing necessities as a result of third and fourth waves of the COVID-19 pandemic in European nations. As a end result, the restoration development of DH was disrupted in November 2021, as RevPAR and occupancy numbers declined in comparison with these in the summertime. However, an opening-up plan has been unfolding since mid-February 2022, and that is anticipated to result in considerably normalized circumstances for public and business life. With the continual implementation of opening-up plans, our RevPAR restoration ought to see reacceleration.

Meanwhile, DH continues its effort to implement a complete money movement enchancment program, particularly specializing in effectivity enhancements, negotiation of additional lease waivers, and personnel price optimization. In addition, a authorities subsidy of EUR60 million was acquired in December 2021, and the short-time work compensation program has been prolonged till June 30, 2022.

Guidance
Since March 2022, the extremely infectious Omicron variant has been spreading quickly in China which once more significantly affected our business efficiency. Also, China’s unchanged “zero-COVID” coverage has rendered business restoration extra unpredictable within the foreseeable future. Moreover, the latest world unrest could additional convey uncertainties to our worldwide business restoration. Therefore, the steerage is simply reflecting our present views primarily based on our greatest understanding of the latest state of affairs.

Huazhu expects to open round 1,500 resorts and shut 500-550 resorts in 2022.

In the primary quarter of 2022, Huazhu expects income progress to be within the vary of 11%-15% in comparison with the primary quarter of 2021, or to vary from 1% to five% if excluding DH.

For the total yr of 2022, we anticipate income progress to vary from 15% to twenty% in comparison with the total yr of 2021, or to vary from 4% to 9% if excluding DH.

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

Repurchase plan
Huazhu could once in a while make repurchases of its securities, together with American depositary shares and convertible notes, in open market transactions, privately negotiated transactions or in any other case, topic to market circumstances and different elements. 

Conference Call
Huazhu’s administration will host a convention name at 9 p.m. (U.S. Eastern time) on Wednesday, March 23, 2022 (or 9 a.m. (Hong Kong time) on Thursday, March 24, 2022) following the announcement. The convention name will likely 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/4278849 to finish the net registration not less than 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 novel registrant ID. To be part of the convention, please dial the quantity you obtain, enter the occasion passcode adopted by your distinctive registrant ID, and you may 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 will likely be obtainable after the conclusion of the convention name via March 31, 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 4278849.

The convention name can even be webcast stay over the Internet and might 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 offered 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 web earnings (loss) attributable to Huazhu Group Limited excluding share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities; adjusted primary and diluted earnings (losses) per share/ADS excluding share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities; EBITDA; adjusted EBITDA excluding share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities. The presentation of those non-GAAP monetary measures isn’t supposed to be thought-about in isolation or as an alternative choice to the monetary data ready and offered 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 beneficial properties (losses) from truthful worth adjustments of fairness securities that might not be 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 durations. 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 larger transparency with respect to supplemental data used often by Company administration in monetary and operational decision-making. A limitation of utilizing non-GAAP monetary measures excluding share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities is that share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities have been and will 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 can be 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 earnings 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 price construction. In addition, the Company believes that EBITDA is extensively utilized by different firms within the lodging business and could also be utilized by traders as a measure of economic efficiency. The Company believes that EBITDA data supplies traders with a great tool for comparability between durations as a result of it eliminates 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 beneficial properties (losses) from truthful worth adjustments of fairness securities, to evaluate working outcomes of its resorts in operation. The Company believes that the exclusion of share-based compensation bills and unrealized beneficial properties (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 beneficial properties (losses) from truthful worth adjustments of fairness securities might not be indicative of Company working efficiency.

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

Therefore, the Company believes adjusted EBITDA extra intently displays the efficiency functionality of our resorts. The presentation of EBITDA and adjusted EBITDA shouldn’t be construed as a sign that the Company’s future outcomes will likely be unaffected by different prices and beneficial properties thought-about to be outdoors the extraordinary course of business.

The use of EBITDA and adjusted EBITDA has sure limitations. Depreciation and amortization expense for varied long-term property (together with land use rights), earnings tax, curiosity expense and curiosity earnings have been and will likely be incurred and should not mirrored within the presentation of EBITDA. Share-based compensation bills and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities have been and will likely be incurred and should not mirrored within the presentation of adjusted EBITDA. Each of these things must also be thought-about within the total analysis of the outcomes. The Company compensates for these limitations by offering the related disclosure of depreciation and amortization, curiosity earnings, curiosity expense, earnings tax expense, share-based compensation bills, and unrealized beneficial properties (losses) from truthful worth adjustments of fairness securities and different related objects each within the reconciliations to the U.S. GAAP monetary measures and within the consolidated monetary statements, all of which needs to be thought-about when evaluating the efficiency of the Company.

The phrases EBITDA and adjusted EBITDA should not outlined below U.S. GAAP, and neither EBITDA nor adjusted EBITDA is a measure of web earnings, working earnings, working efficiency or liquidity offered in accordance with U.S. GAAP. When assessing the working and monetary efficiency, traders shouldn’t think about these knowledge in isolation or as an alternative choice to the Company’s web earnings, working earnings or another working efficiency measure that’s calculated in accordance with U.S. GAAP. In addition, the Company’s EBITDA or adjusted EBITDA might not be corresponding to EBITDA or adjusted EBITDA or equally titled measures utilized by different firms since such different firms could 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 lodge group. As of December 31, 2021, Huazhu operated 7,830 resorts with 753,216 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 and CitiGO Hotel. Upon the completion of the acquisition of DH on January 2, 2020, Huazhu added 5 manufacturers to its portfolio, together with Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz within the City, IntercityHotel and Zleep 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 resorts sometimes positioned on leased or owned properties. Under the manachise mannequin, Huazhu manages manachised resorts via the on-site lodge managers that Huazhu appoints, and Huazhu collects charges from franchisees. Under the franchise mannequin, Huazhu supplies coaching, reservations and assist providers to the franchised resorts, and collects charges from franchisees however doesn’t appoint on-site lodge managers. Huazhu applies a constant customary and platform throughout all of its resorts. As of December 31, 2021, Huazhu operates 14 p.c of its lodge rooms below lease and possession mannequin, and 86 p.c below 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 comprises 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 atmosphere; 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 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 corresponding to “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the unfavorable 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 new data, future occasions or in any other case, until required by relevant legislation.

—Financial Tables and Operational Data Follow—

Operating Results: Legacy-Huazhu⁽¹⁾

Operating Results: Legacy-DH⁽⁴⁾

Hotel Portfolio by Brand

(6)   As of December 31, 2021, 70 Ni Hao Hotels had been included within the operational lodge for Elan Hotels and 163 Ni Hao Hotels had been included within the pipeline for Elan Hotels.
(7)   As of December 31, 2021, 2 operational resorts and 8 pipeline resorts of IntercityHotel had been in China.
(8)   As of December 31, 2021, 14 operational resorts and 6 pipeline resorts of Steigenberger Hotels & Resorts had been in China.
(9)   As of December 31, 2021, 2 operational resorts and 5 pipeline resorts of MAXX had been in China.
(10)   Other resorts embody different accomplice resorts and different lodge 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 resorts (i.e., leased and operated, manachised and franchised resorts).
² The conversion of Renminbi (“RMB”) into United States {dollars} (“US$”) is predicated on the change charge of US$1.00=RMB6.3726 on December 30, 2021 as set forth in H.10 statistical launch of the U.S. Federal Reserve Board and obtainable at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
³ The conversion of Renminbi (“RMB”) into United States {dollars} (“US$”) is predicated on the change charge of US$1.00=RMB6.3726 on December 30, 2021 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