Huazhu Group Limited Announces the Closing of the Deutsche Hospitality Acquisition and the Signing of a Facilities Agreement
January 02 2020 - 8:00PM
Huazhu Group Limited (NASDAQ: HTHT) (the “Company”), a leading and
fast-growing hotel group, today announced the closing of the
acquisition of all shares in Steigenberger Hotels
Aktiengesellschaft, Germany (“the Deutsche Hospitality
Acquisition”), which was previously announced in the press release
dated November 4, 2019.
In connection with the Deutsche Hospitality Acquisition, China
Lodging Holdings (HK) Limited, a subsidiary of the Company, has
signed a EUR440,000,000 term facility and USD500,000,000 revolving
credit facility agreement (the “Facilities Agreement”) for a term
of 3 years with a bank consortium led by JPMorgan Chase Bank, N.A.,
acting through its Hong Kong Branch, Deutsche Bank AG, Singapore
Branch and Morgan Stanley Senior Funding, Inc. to fund the payment
of all amounts payable under or in connection with the acquisition.
The balance under the Facilities Agreement will be used, among
other things, for the general corporate and working capital
purposes of the Company and its subsidiaries.
About Huazhu Group Limited
Huazhu 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 Blossom Hill 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 mainly includes leased, manachised and
franchised models. Under the lease model, Huazhu directly operates
hotels typically located on leased 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. In
addition, Huazhu has a limited number of hotels in owned or
partially owned properties. Huazhu applies a consistent standard
and platform across all of its hotels. As of September 30, 2019,
Huazhu operates 83 percent of its hotel rooms under manachise and
franchise models.
For more information, please visit the Company’s website:
http://ir.huazhu.com.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995: The information in this release contains
forward-looking statements which involve risks and uncertainties,
including statements regarding the Company’s capital needs,
business strategy and expectations. 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. Any or all of the Company’s forward-looking statements may
turn out to be wrong. They can be affected by inaccurate
assumptions, risks and uncertainties, and other factors which could
cause actual events or results to be materially different from
those expressed or implied in the forward-looking statements. In
evaluating these statements, readers should consider various
factors, including the anticipated growth strategies of the
Company, the future results of operations and financial condition
of the Company, economic conditions in China, the regulatory
environment in China, the Company’s ability to attract and retain
customers over time, the Company’s ability to leverage its brands,
business trends and competition in the lodging industry, the
expected growth of demand for lodging in China, and other factors
and risks outlined in the Company’s filings with the U.S.
Securities and Exchange Commission, including its annual report on
Form 20-F and other filings. These factors may cause the Company’s
actual results to differ materially from any forward-looking
statement. In addition, new factors emerge from time to time and it
is not possible for the Company to predict all factors that may
cause actual results to differ materially from those contained in
any forward-looking statements. Any projections in this release are
based on limited information currently available to the Company,
which is subject to change. This release also contains statements
or projections that are based upon information available to the
public, as well as other information from sources which the Company
believes to be reliable, but it is not guaranteed by the Company to
be accurate, nor does the Company purport it to be complete. The
Company disclaims any obligation to publicly update any
forward-looking statements to reflect events or circumstances after
the date of this document, except as required by applicable
law.
Contact Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com
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