Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Third Quarter of 2019
October 16 2019 - 1:00AM
Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu” or “our”), a leading
and fast-growing multi-brand hotel group in China, today announced
preliminary results for hotel operations in the third quarter ended
September 30, 2019.
Hotel Development
|
Number of hotels in operation |
|
|
Number of rooms in operation |
|
Opened |
Closed (1) |
Net added |
As of |
|
Net added |
As of |
|
in Q3 2019 |
in Q3 2019 |
in Q3 2019 |
September 30, 2019 |
|
in Q3 2019 |
September 30, 2019 |
Leased and owned hotels |
13 |
(12 |
) |
1 |
697 |
|
1,027 |
88,206 |
Manachised and franchised hotels |
535 |
(50 |
) |
485 |
4,454 |
|
40,091 |
416,208 |
Total |
548 |
(62 |
) |
486 |
5,151 |
|
41,118 |
504,414 |
(1) Reasons for closures include property-related issues, operating
loss and non-compliance issues. In Q3 2019, 4 hotels were
temporarily closed for brand upgrades. |
|
|
|
|
|
|
|
|
|
As of September 30, 2019 |
|
Number of hotels in operation |
Unopened hotels in pipeline |
Economy hotels |
3,204 |
546 |
Leased and owned hotels |
425 |
1 |
Manachised and franchised hotels |
2,779 |
545 |
Midscale and upscale hotels |
1,947 |
1,190 |
Leased and owned hotels |
272 |
51 |
Manachised and franchised hotels |
1,675 |
1,139 |
Total |
5,151 |
1,736 |
|
|
|
Operating Metrics
|
For the quarter ended |
|
|
September 30, |
June 30, |
September 30, |
yoy |
|
2018 |
2019 |
2019 |
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
279 |
|
281 |
|
288 |
|
3.1 |
% |
Manachised and franchised hotels |
228 |
|
225 |
|
235 |
|
3.4 |
% |
Blended |
239 |
|
236 |
|
245 |
|
2.6 |
% |
Occupancy rate (as a percentage) |
|
|
|
|
Leased and owned hotels |
92.0 |
% |
89.4 |
% |
90.0 |
% |
-2.0 |
pp |
Manachised and franchised hotels |
90.4 |
% |
86.3 |
% |
87.2 |
% |
-3.2 |
pp |
Blended |
90.7 |
% |
86.9 |
% |
87.7 |
% |
-3.1 |
pp |
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
257 |
|
252 |
|
259 |
|
0.8 |
% |
Manachised and franchised hotels |
206 |
|
194 |
|
205 |
|
-0.3 |
% |
Blended |
217 |
|
206 |
|
215 |
|
-0.8 |
% |
|
|
|
|
|
Business Update by Segment
Hotel portfolio by brand |
|
|
|
|
|
Number of hotels in operation |
|
Net added |
As of |
|
in Q3 2019 |
September 30, 2019 |
Economy hotels |
214 |
3,204 |
HanTing Hotel |
50 |
2,381 |
Hi Inn |
35 |
450 |
Elan Hotel |
129 |
373 |
Midscale and upscale hotels |
272 |
1,947 |
HanTing Premium Hotel |
51 |
180 |
Ibis Hotel |
20 |
179 |
Ibis Styles Hotel |
6 |
50 |
Starway Hotel |
52 |
317 |
JI Hotel |
93 |
759 |
Orange Select Hotel |
17 |
233 |
Crystal Orange Hotel |
11 |
77 |
Manxin Hotels & Resorts |
4 |
39 |
Madison Hotel |
5 |
5 |
Mercure Hotel |
11 |
63 |
Novotel Hotel |
0 |
9 |
Grand Madison Hotel |
1 |
1 |
Joya Hotel |
0 |
6 |
Vue Hotels & Resorts |
1 |
21 |
Grand Mercure Hotel |
0 |
8 |
Total |
486 |
5,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-hotel operational data by segment |
|
|
|
|
|
|
|
|
|
|
Number of
hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
|
As ofSeptember 30, |
For the
quarter ended |
yoy |
For the
quarter ended |
yoy |
For the
quarter ended |
yoy |
|
|
September 30, |
change |
September 30, |
change |
September 30, |
change |
|
|
2018 |
2019 |
2018 |
2019 |
|
2018 |
2019 |
|
2018 |
|
2019 |
|
(p.p.) |
|
Economy hotels |
2,500 |
2,500 |
186 |
179 |
-3.7 |
% |
196 |
194 |
-0.7 |
% |
95.2 |
% |
92.2 |
% |
-3.0 |
|
Leased and owned hotels |
414 |
414 |
200 |
197 |
-1.6 |
% |
211 |
212 |
0.6 |
% |
95.0 |
% |
92.9 |
% |
-2.0 |
|
Manachised and franchised hotels |
2,086 |
2,086 |
182 |
175 |
-4.3 |
% |
192 |
190 |
-1.0 |
% |
95.3 |
% |
92.1 |
% |
-3.2 |
|
Midscale and upscale hotels |
861 |
861 |
289 |
278 |
-3.9 |
% |
332 |
325 |
-2.2 |
% |
87.1 |
% |
85.6 |
% |
-1.5 |
|
Leased and owned hotels |
184 |
184 |
355 |
337 |
-5.3 |
% |
396 |
382 |
-3.5 |
% |
89.8 |
% |
88.1 |
% |
-1.7 |
|
Manachised and franchised hotels |
677 |
677 |
265 |
257 |
-3.2 |
% |
308 |
303 |
-1.5 |
% |
86.1 |
% |
84.7 |
% |
-1.5 |
|
Total |
3,361 |
3,361 |
219 |
211 |
-3.8 |
% |
236 |
234 |
-1.1 |
% |
92.6 |
% |
90.1 |
% |
-2.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Huazhu Group
LimitedHuazhu Group Limited is a leading hotel operator
and franchisor. As of September 30, 2019, Huazhu operated 5,151
hotels with 504,414 rooms in operation. Huazhu’s brands include Hi
Inn, Elan Hotel, HanTing Hotel, HanTing Premium Hotel, JI Hotel,
Starway Hotel, Orange Hotel Select, Crystal Orange Hotel, Manxin
Hotels & Resorts, Joya Hotel, and Vue Hotels & Resorts.
Huazhu also has the rights as master franchisee for Mercure, Ibis
and Ibis Styles, and co-development rights for Grand Mercure and
Novotel, in the pan-China region.
Huazhu’s business includes leased and owned,
manachised and franchised models. Under the lease and ownership
model, Huazhu directly operates hotels typically located on leased
or owned properties. Under the manachise model, Huazhu manages
manachised hotels through the on-site hotel managers Huazhu
appoints and collects fees from franchisees. Under the franchise
model, Huazhu provides training, reservations and support services
to the franchised hotels, and collects fees from franchisees but
does not appoint on-site hotel managers. Huazhu applies a
consistent standard and platform across all of its hotels. As of
September 30, 2019, Huazhu operates 17 percent of its hotel rooms
under lease and ownership model, and 83 percent under manachise and
franchise models.
For more information, please visit Huazhu’s
website: http://ir.huazhu.com.
Safe Harbor Statement Under the U.S. Private
Securities Litigation Reform Act of 1995: The information in this
release contains forward-looking statements which involve risks and
uncertainties. Such factors and risks include our anticipated
growth strategies; our future results of operations and financial
condition; the economic conditions of China; the regulatory
environment in China; our ability to attract and retain customers
and leverage our brands; trends and competition in the lodging
industry; the expected growth of demand for lodging in China; and
other factors and risks detailed in our filings with the U.S.
Securities and Exchange Commission. Any statements contained herein
that are not statements of historical fact may be deemed to be
forward-looking statements, which may be identified by terminology
such as “may,” “should,” “will,” “expect,” “plan,” “intend,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,”
“forecast,” “project” or “continue,” the negative of such terms or
other comparable terminology. Readers should not rely on
forward-looking statements as predictions of future events or
results.
Huazhu undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by
applicable law.
Contact InformationHuazhu Investor RelationsTel:
86 (21) 6195 9561Email: ir@huazhu.comhttp://ir.huazhu.com
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