Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2019
January 14 2020 - 2:00AM
Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu” or “our”), a leading
and fast-growing hotel group, today announced preliminary results
for hotel operations in the fourth quarter and the full year ended
December 31, 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 Q4 2019 |
in Q4 2019 |
in Q4 2019 |
December 31, 2019 |
|
in Q4 2019 |
December 31, 2019 |
|
Leased
and owned hotels |
11 |
(20 |
) |
(9 |
) |
688 |
|
(741 |
) |
87,465 |
|
Manachised and franchised hotels |
619 |
(143 |
) |
476 |
|
4,930 |
|
33,203 |
|
449,411 |
|
Total |
630 |
(163 |
) |
467 |
|
5,618 |
|
32,462 |
|
536,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reasons for
closures include property-related issues, operating loss and
non-compliance issues. In Q4 2019, 56 hotels were temporarily
closed for brand upgrade and business model change purposes. |
|
|
|
As of
December 31, 2019 |
|
Number of hotels in operation |
Unopened hotels in pipeline |
Economy hotels |
3,485 |
826 |
Leased and owned hotels |
415 |
2 |
Manachised and franchised hotels |
3,070 |
824 |
Midscale and upscale hotels |
2,133 |
1,436 |
Leased and owned hotels |
273 |
41 |
Manachised and franchised hotels |
1,860 |
1,395 |
Total |
5,618 |
2,262 |
|
Operating Metrics
|
For the
quarter ended |
|
|
December 31, |
September 30, |
December
31, |
yoy |
|
2018 |
2019 |
2019 |
change |
Average
daily room rate (in RMB) |
|
|
|
|
Leased and owned hotels |
275 |
|
288 |
|
277 |
|
0.9 |
% |
Manachised and franchised hotels |
218 |
|
235 |
|
223 |
|
2.1 |
% |
Blended |
230 |
|
245 |
|
232 |
|
0.9 |
% |
Occupancy
rate (as a percentage) |
|
|
|
|
Leased and owned hotels |
86.7 |
% |
90.0 |
% |
84.7 |
% |
-2.0 |
pp |
Manachised and franchised hotels |
84.8 |
% |
87.2 |
% |
81.6 |
% |
-3.1 |
pp |
Blended |
85.2 |
% |
87.7 |
% |
82.2 |
% |
-3.0 |
pp |
RevPAR (in
RMB) |
|
|
|
|
Leased and owned hotels |
238 |
|
259 |
|
235 |
|
-1.4 |
% |
Manachised and franchised hotels |
185 |
|
205 |
|
182 |
|
-1.7 |
% |
Blended |
196 |
|
215 |
|
191 |
|
-2.7 |
%(2) |
(2) Excluding our soft brands (Hi Inn, Elan,
Starway, Madison and Grand Madison), the blended RevPAR for 2019Q4
declined by 0.5% year-over-year.
|
For the full
year ended |
|
December 31, |
December 31, |
yoy |
|
2018 |
2019 |
change |
Average
daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
267 |
|
276 |
|
3.6 |
% |
Manachised and franchised hotels |
214 |
|
224 |
|
4.6 |
% |
Blended |
226 |
|
234 |
|
3.6 |
% |
Occupancy
rate (as a percentage) |
|
|
|
Leased and owned hotels |
89.0 |
% |
87.0 |
% |
-2.0 |
% |
Manachised and franchised hotels |
86.9 |
% |
83.8 |
% |
-3.1 |
% |
Blended |
87.3 |
% |
84.4 |
% |
-3.0 |
% |
RevPAR (in
RMB) |
|
|
|
Leased and owned hotels |
237 |
|
240 |
|
1.2 |
% |
Manachised and franchised hotels |
186 |
|
188 |
|
0.8 |
% |
Blended |
197 |
|
198 |
|
0.1 |
%(3) |
(3) Excluding our soft brands (Hi Inn, Elan,
Starway, Madison and Grand Madison), the blended RevPAR for 2019
grew by 0.8%.
Business Update by Segment
Hotel and room portfolio by brand |
|
|
|
|
|
|
|
|
|
|
|
|
Number of hotels in operation |
Number of
rooms in operation |
|
|
Net added |
As of |
|
Net added |
As
of |
|
|
in Q4 2019 |
December 31, 2019 |
|
in Q4 2019 |
December 31, 2019 |
|
Economy hotels |
281 |
|
3,485 |
|
12,473 |
|
290,615 |
|
HanTing Hotel |
(9 |
) |
2,372 |
|
(3,299 |
) |
224,626 |
|
Hi Inn |
15 |
|
465 |
|
871 |
|
28,153 |
|
Elan Hotel |
275 |
|
648 |
|
14,901 |
|
37,836 |
|
Midscale and upscale hotels |
186 |
|
2,133 |
|
19,989 |
|
246,261 |
|
HanTing Premium Hotel |
34 |
|
214 |
|
3,363 |
|
19,748 |
|
Ibis Hotel |
6 |
|
185 |
|
472 |
|
20,533 |
|
Ibis Styles Hotel |
5 |
|
55 |
|
549 |
|
6,681 |
|
Starway Hotel |
33 |
|
350 |
|
3,099 |
|
30,363 |
|
JI Hotel |
72 |
|
831 |
|
8,289 |
|
104,521 |
|
Orange Select Hotel |
15 |
|
248 |
|
1,510 |
|
28,821 |
|
Crystal Orange Hotel |
8 |
|
85 |
|
975 |
|
11,182 |
|
Manxin Hotels & Resorts |
7 |
|
46 |
|
825 |
|
4,133 |
|
Madison Hotel |
4 |
|
9 |
|
347 |
|
883 |
|
Mercure Hotel |
5 |
|
68 |
|
530 |
|
12,502 |
|
Novotel Hotel |
0 |
|
9 |
|
0 |
|
2,928 |
|
Grand Madison Hotel |
3 |
|
4 |
|
569 |
|
772 |
|
Joya Hotel |
0 |
|
6 |
|
0 |
|
1,250 |
|
Blossom Hill Hotels & Resorts |
(4 |
) |
17 |
|
(79 |
) |
648 |
|
Grand Mercure Hotel |
(2 |
) |
6 |
|
(460 |
) |
1,296 |
|
Total |
467 |
|
5,618 |
|
32,462 |
|
536,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-hotel operational data by segment |
|
|
|
|
|
|
|
|
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
|
As of |
For the quarter ended |
yoy |
For the quarter ended |
yoy |
For the quarter ended |
yoy |
|
|
December 31, |
December 31, |
change |
December 31, |
change |
December 31, |
change |
|
|
2018 |
2019 |
2018 |
2019 |
|
2018 |
2019 |
|
2018 |
|
2019 |
|
(p.p.) |
|
Economy hotels |
2,467 |
2,467 |
165 |
155 |
-6.2 |
% |
183 |
179 |
-2.4 |
% |
90.0 |
% |
86.5 |
% |
-3.5 |
|
Leased and owned hotels |
409 |
409 |
180 |
172 |
-4.4 |
% |
200 |
198 |
-0.7 |
% |
90.2 |
% |
86.9 |
% |
-3.3 |
|
Manachised and franchised hotels |
2,058 |
2,058 |
161 |
151 |
-6.7 |
% |
179 |
174 |
-2.9 |
% |
90.0 |
% |
86.4 |
% |
-3.6 |
|
Midscale and upscale hotels |
950 |
950 |
266 |
253 |
-4.7 |
% |
324 |
309 |
-4.4 |
% |
82.0 |
% |
81.8 |
% |
-0.2 |
|
Leased and owned hotels |
199 |
199 |
330 |
309 |
-6.3 |
% |
389 |
366 |
-5.9 |
% |
84.8 |
% |
84.4 |
% |
-0.3 |
|
Manachised and franchised hotels |
751 |
751 |
243 |
233 |
-4.1 |
% |
300 |
289 |
-3.8 |
% |
81.1 |
% |
80.9 |
% |
-0.2 |
|
Total |
3,417 |
3,417 |
199 |
188 |
-5.4 |
% |
228 |
222 |
-2.7 |
% |
87.3 |
% |
84.9 |
% |
-2.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
|
As of |
For the year ended |
yoy |
For the year ended |
yoy |
For the year ended |
yoy |
|
|
December 31, |
December 31, |
change |
December 31, |
change |
December 31, |
change |
|
|
2018 |
2019 |
2018 |
2019 |
|
2018 |
2019 |
|
2018 |
|
2019 |
|
(p.p.) |
|
Economy hotels |
2,467 |
2,467 |
170 |
164 |
-3.0 |
% |
184 |
184 |
0.3 |
% |
92.2 |
% |
89.1 |
% |
-3.1 |
|
Leased and owned hotels |
409 |
409 |
183 |
182 |
-0.4 |
% |
198 |
202 |
1.7 |
% |
92.0 |
% |
90.0 |
% |
-2.0 |
|
Manachised and franchised hotels |
2,058 |
2,058 |
166 |
160 |
-3.8 |
% |
180 |
180 |
-0.2 |
% |
92.2 |
% |
88.9 |
% |
-3.3 |
|
Midscale and upscale hotels |
950 |
950 |
269 |
261 |
-3.2 |
% |
323 |
317 |
-1.8 |
% |
83.4 |
% |
82.2 |
% |
-1.2 |
|
Leased and owned hotels |
199 |
199 |
332 |
317 |
-4.6 |
% |
385 |
374 |
-3.0 |
% |
86.3 |
% |
84.9 |
% |
-1.4 |
|
Manachised and franchised hotels |
751 |
751 |
245 |
239 |
-2.5 |
% |
298 |
294 |
-1.2 |
% |
82.3 |
% |
81.2 |
% |
-1.1 |
|
Total |
3,417 |
3,417 |
201 |
194 |
-3.1 |
% |
224 |
224 |
-0.3 |
% |
89.5 |
% |
87.0 |
% |
-2.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Huazhu Group
LimitedHuazhu Group Limited is a leading hotel operator
and franchisor. As of December 31, 2019, Huazhu operated 5,618
hotels with 536,876 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 completed the
acquisition of Deutsche Hospitality on January 2, 2020, further
expanding our brands portfolio to include Steigenberger Hotels
& Resorts, Maxx by Steigenberger, Jaz Hotel, Intercity Hotel
and Zleep Hotel.
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
December 31, 2019, Huazhu operates 16 percent of its hotel rooms
under lease and ownership model, and 84 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
H World (NASDAQ:HTHT)
Historical Stock Chart
From Jun 2024 to Jul 2024
H World (NASDAQ:HTHT)
Historical Stock Chart
From Jul 2023 to Jul 2024