Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) (“Huazhu”, “the
Company”, “we” or “our”), a world-leading hotel group, today
announced its unaudited financial results for the fourth quarter
and full year ended December 31, 2020.
As of December 31, 2020, Huazhu’s worldwide
hotel network in operation totaled 6,789 hotels and 652,162 rooms,
including 120 hotels from DH. For the full year of 2020, the
Company opened 40 leased hotels and 1,609 manachised hotels and
franchised hotels, and closed 41 leased hotels and 556 manachised
and franchised hotels. During the fourth quarter of 2020,
Legacy-Huazhu3 business opened 393 hotels, including 4 leased (or
leased-and-operated) hotels and 389 manachised (or
franchised-and-managed) hotels and franchised hotels, and closed a
total of 114 hotels, including 10 leased hotels and 104 manachised
and franchised hotels. For the full year of 2020, Legacy-Huazhu
opened 32 leased hotels and 1,605 manachised hotels and franchised
hotels, and closed 39 leased hotels and 547 manachised and
franchised hotels. During the fourth quarter of 2020, the
Legacy-DH4 business opened 3 hotels, including 2 leased hotels and
1 manachised and franchised hotel. For the full year of 2020,
Legacy-DH opened 8 leased hotels and 4 manachised hotels and
franchised hotels, and closed 2 leased hotels and 9 manachised and
franchised hotels. As of December 31, 2020, Huazhu had a total of
2,449 unopened hotels in the pipeline, including 2,411 hotels from
Legacy-Huazhu business and 38 hotels from the Legacy-DH
business.
Legacy-Huazhu Only
– Fourth Quarter and Full Year of 2020
Operational Highlights
As of December 31, 2020,
Legacy-Huazhu had 6,669 hotels in operation, including 681
leased and owned hotels and 5,988 manachised hotels and franchised
hotels. In addition, as of the same date, Legacy-Huazhu had
628,135 hotel rooms in operation, including 90,942 under the lease
and ownership model and 537,193 under the manachise and franchise
models. Legacy-Huazhu also had 2,411 hotels in the pipeline,
including 18 leased and owned hotels and 2,393 manachised and
franchised hotels. As of December 31, 2020, approximately 99%
of Legacy-Huazhu’s hotels (excluding 74 hotels under governmental
requisition) had resumed operations. The following discusses
Legacy-Huazhu’s RevPAR, average daily room rate (“ADR”) and
occupancy rate for its leased and owned hotels as well as
manachised and franchised hotels (excluding hotels under
governmental requisition) for the periods indicated.
- The ADR was RMB231 in the fourth
quarter of 2020, compared with RMB232 in the fourth quarter of 2019
and RMB218 in the previous quarter. The ADR was RMB210 for the full
year of 2020, compared with RMB234 for the previous year.
- The occupancy rate for all
Legacy-Huazhu hotels in operation was 80.6% in the fourth quarter
of 2020, compared with 82.2% in the fourth quarter of 2019 and
82.0% in the previous quarter. The occupancy rate was 71.0% for the
full year of 2020, compared with 84.4% for the previous year.
- Blended RevPAR was RMB186 in the fourth quarter of 2020,
compared with RMB191 in the fourth quarter of 2019 and RMB179 in
the previous quarter. Blended RevPAR was RMB149 for the full year
of 2020, compared with RMB198 for the previous year.
- For all hotels which had been in
operation for at least 18 months, the same-hotel RevPAR was RMB186
for the fourth quarter of 2020, representing a 7.6% decrease from
RMB201 for the fourth quarter of 2019, with a 3.9% decrease in ADR
and a 3.3-percentage-point decrease in occupancy rate. The
same-hotel RevPAR was RMB148 for the full year of 2020,
representing a 27.9% decrease from RMB205 for the full year of
2019, with a 13.1% decrease in ADR and a 14.8-percentage-point
decrease in occupancy rate.
Legacy-DH Only
– Fourth Quarter and Full Year of 2020
Operational Highlights
As of December 31, 2020, Legacy-DH had
120 hotels in operation, including 72 leased and owned hotels and
48 manachised hotels and franchised hotels. In addition, as of the
same date, Legacy-DH had 24,027 hotel rooms in operation,
including 13,371 under the lease and ownership model and 10,656
under the manachise and franchise models. Legacy-DH also had
38 hotels in the pipeline, including 26 leased and owned hotels and
12 manachised and franchised hotels. The following discusses
Legacy-DH’s RevPAR, average daily room rate (“ADR”) and occupancy
rate for its leased as well as manachised and franchised hotels
(excluding hotels temporarily closed) for the periods
indicated.
- The ADR was EUR76 in the fourth
quarter of 2020, compared with EUR97 in the fourth quarter of 2019
and EUR93 in the previous quarter. The ADR was EUR88 for the full
year of 2020, compared with EUR97 for the previous year.
- The occupancy rate for all Legacy-DH hotels in operation was
22.5% in the fourth quarter of 2020, compared with 68.0% in the
fourth quarter of 2019 and 37.9% in the previous quarter. The
occupancy rate was 34.8% for the full year of 2020, compared with
69.1% for the previous year.
- Blended RevPAR was EUR17 in the
fourth quarter of 2020, compared with EUR66 in the fourth quarter
of 2019 and EUR35 in the previous quarter. Blended RevPAR was EUR31
for the full year of 2020, compared with EUR67 for the previous
year.
Ji Qi, Founder, Executive Chairman and CEO of
Huazhu commented: “COVID-19 has caused very significant challenges
to both our China and European businesses in 2020. However, our
China business achieved strong recovery throughout the year,
especially in the second half of 2020 despite several resurgences
of the COVID-19 pandemic in various regions. In the second half, we
achieved over RMB1.6 billion of adjusted EBITDA for our China
business. More importantly, we continued to expand our hotel
network and pipeline, thanks to our dedicated employees, our
powerful brand portfolio and solid execution. Although our European
business is still being impacted by COVID-19 pandemic, we have
continued to advance our digitalization plan. Moreover, we also
took the opportunity to streamline our organizational structure to
prepare well for future recovery.”
“Looking ahead, we believe the COVID-19 pandemic
has not changed the long-term growth potential of China’s lodging
industry. Under the China’s ’Dual circulation‘ economy model, we
continue to emphasize our China-focus strategy, together with our
unique Three-in-One ’Super Composite’ business model for further
hotel network expansion. More importantly, our future expansion
will not focus on speed only, but more on quality as we see
customers become more quality-oriented after COVID-19.
Additionally, we are continuously improving and upgrading our
technology and organizational capabilities to support our long-term
strategy execution.”
Fourth Quarter and Full Year of 2020
Financial ResultsThe fourth quarter and full year of 2020
financial results included results of the Legacy-DH business, which
was not included in the fourth quarter and full year of 2019
financial results. In the fourth quarter and full year of 2020,
both Legacy-Huazhu business and Legacy-DH businesses were affected
by the COVID-19 pandemic compared with the fourth quarter of 2019
and full year of 2020.
(RMB in millions) |
Q4 2019 |
Q3 2020 |
Q4 2020 |
2019FY |
2020FY |
Revenues: |
|
|
|
|
|
Leased and owned hotels |
1,921 |
2,131 |
2,024 |
7,718 |
6,908 |
Manachised and franchised hotels |
938 |
995 |
999 |
3,342 |
3,136 |
Others |
51 |
32 |
48 |
152 |
152 |
Net revenues |
2,910 |
3,158 |
3,071 |
11,212 |
10,196 |
Net revenues for the fourth
quarter of 2020 were RMB3.1 billion (US$471 million), representing
a 5.5% year-over-year increase and a 2.8% sequential decrease.
Excluding DH, our net revenues for the fourth quarter of 2020 were
RMB2.8 billion, representing a 3.1% year-over-year decrease.
Net revenues for the full year of 2020 were
RMB10.2 billion (US$1.6 billion), representing a decrease of 9.1%
from the full year of 2019. Excluding DH, our net revenues for the
full year of 2020 were RMB8.7 billion, representing a 22.7%
year-over-year decrease.
Net revenues from leased and owned
hotels for the fourth quarter of 2020 were RMB2.0 billion
(US$310 million), representing a 5.4% year-over-year increase and a
5.0% sequential decrease. Excluding DH, our net revenues from
leased and owned hotels for the fourth quarter of 2020 were RMB1.8
billion, representing a 6.8% year-over-year decrease.
For the full year of 2020, net revenues from
leased and owned hotels were RMB6.9 billion (US$1.1 billion),
representing a 10.5% year-over-year decrease. Excluding DH, our net
revenues from leased and owned hotels for the full year of 2020
were RMB5.4 billion, representing a 29.5% year-over-year
decrease.
Net revenues from manachised and
franchised hotels for the fourth quarter of 2020 were
RMB999 million (US$153 million), representing a 6.5% year-over-year
increase and a 0.4% sequential increase. Excluding DH, our net
revenues from manachised and franchised hotels for the fourth
quarter of 2020 were RMB990 million, representing a 5.5%
year-over-year increase.
For the full year of 2020, net revenues from
manachised and franchised hotels were RMB3.1 billion (US$481
million), representing a 6.2% year-over-year decrease. These hotels
accounted for 30.8% of net revenues, compared to 29.8% of net
revenues for the full year of 2019. Excluding DH, our net revenues
from manachised and franchised hotels for the full year of 2020
were RMB3.1 billion, representing a 7.5% year-over-year
decrease.
Other revenues represent
revenues generated from businesses other than the hotel operation,
which mainly include revenues from the provision of IT products and
services to hotels and revenues from Huazhu Mall™ and other
revenues from Legacy-DH business, totaling RMB48 million (US$8
million) in the fourth quarter of 2020, compared to RMB51 million
in the fourth quarter of 2019 and RMB32 million in the previous
quarter.
For the full year of 2020, other revenues were
RMB152 million (US$23 million), same as in 2019.
(RMB in millions) |
Q4 2019 |
Q3 2020 |
Q4 2020 |
2019FY |
2020FY |
Operating costs and expenses: |
|
|
|
|
|
Hotel operating costs |
1,879 |
2,470 |
2,748 |
7,190 |
9,729 |
Other operating costs |
21 |
15 |
22 |
57 |
52 |
Selling and marketing expenses |
134 |
162 |
181 |
426 |
597 |
General and administrative expenses |
330 |
343 |
336 |
1,061 |
1,259 |
Pre-opening expenses |
149 |
42 |
36 |
502 |
288 |
Total operating costs and expenses |
2,513 |
3,032 |
3,323 |
9,236 |
11,925 |
|
|
|
|
|
|
Hotel operating costs for the
fourth quarter of 2020 were RMB2.7 billion (US$420 million),
compared to RMB1.9 billion in the fourth quarter of 2019 and RMB2.5
billion in the previous quarter. Excluding DH, hotel operating
costs for the fourth quarter of 2020 were RMB2.1 billion, which
represented 73.4% of the quarter’s net revenues, compared to 64.6%
for the fourth quarter in 2019 and 70.4% for the previous
quarter.
For the full year of 2020, hotel operating costs
were RMB9.7 billion (US$1.5 billion), compared to RMB7.2 billion in
2019. Excluding DH, hotel operating costs for the full year of 2020
were RMB7.4 billion, which represented 85.1% of the net revenues,
compared to 64.1% for 2019.
Selling and marketing expenses
for the fourth quarter of 2020 were RMB181 million (US$28 million),
compared to RMB134 million in the fourth quarter of 2019 and RMB162
million in the previous quarter. Excluding DH, selling and
marketing expenses for the fourth quarter of 2020 were RMB149
million, which represented 5.3% of the quarter’s net revenues,
compared to RMB134 million or 4.6% of net revenues for the fourth
quarter in 2019, and RMB102 million or 3.7% of net revenues for the
previous quarter. The increase was mainly due to expansion of
direct sales team, promotional events including but not limited to
several Huazhu World conferences in different parts of China to
attract potential franchisees.
For the full year of 2020, selling and marketing
expenses were RMB597 million (US$91 million), compared to RMB426
million in 2019. Excluding DH, selling and marketing expenses for
the full year of 2020 were RMB388 million, which represented 4.5%
of the net revenues, compared to RMB426 million or 3.8% of net
revenues for the full year of 2019.
General and administrative
expenses for the fourth quarter of 2020 were RMB336
million (US$52 million), compared to RMB330 million in the fourth
quarter of 2019 and RMB343 million in the previous quarter.
Excluding DH, general and administrative expenses for the fourth
quarter of 2020 were RMB257 million, which represented 9.1% of the
quarter’s net revenues, compared to RMB330 million for the fourth
quarter in 2019 and RMB235 million for the previous
quarter.
For the full year of 2020, general and
administrative expenses were RMB1.3 billion (US$193 million),
compared to RMB1.1 billion in 2019. Excluding DH, general and
administrative expenses for the full year of 2020 were RMB893
million, which represented 10.3% of the net revenues, compared to
RMB1.1 billion or 9.5% of net revenues for the full year of 2019.
The decline was mainly due to our cost-cutting initiatives, such as
streamlining of head office headcounts during 2020.
Pre-opening expenses for the
fourth quarter of 2020 were mostly related to Legacy-Huazhu
totaling RMB36 million (US$6 million), compared to RMB149 million
in the fourth quarter of 2019 and RMB42 million in the previous
quarter.
Pre-opening expenses for the full year of 2020
were RMB288 million (US$44 million), compared to RMB502 million in
2019, representing a year-over-year decrease of 42.6%. Pre-opening
expenses as a percentage of net revenues were 2.8% in 2020,
compared to 4.5% in 2019.
Other operating income, net for
the fourth quarter of 2020 was RMB118 million (US$18 million),
compared to RMB89 million in the fourth quarter of 2019 and RMB110
million in the previous quarter.
Other operating income, net for the full year of
2020 was RMB480 million (US$74 million), compared to RMB132 million
in 2019. The year-over-year increase was mainly attributable to
subsidy income and insurance income from DH due to COVID-19
impact.
Income from operations for the
fourth quarter of 2020 was negative RMB134 million (US$20 million).
Excluding share-based compensation expenses, adjusted loss from
operations (non-GAAP) for the fourth quarter of 2020 was RMB112
million (US$16 million), compared to adjusted income from
operations (non-GAAP) of RMB508 million in the fourth quarter of
2019 and adjusted loss from operations (non-GAAP) of RMB168 million
in the previous quarter. Excluding DH, our income from operations
for the fourth quarter of 2020 was RMB315 million, compared to
income from operations of RMB486 million in the fourth quarter of
2019 and income from operations of RMB523 million in the previous
quarter.
Income from operations for the full year of 2020
was negative RMB1.7 billion (US$257 million). Excluding share-based
compensation expenses, adjusted loss from operations (non-GAAP) for
the full year of 2020 was RMB1.6 billion (US$238 million), compared
to adjusted income from operations (non-GAAP) of RMB2.2 billion in
2019. Excluding DH, our income from operations for the full year of
2020 was negative RMB100 million, compared to income from
operations of RMB2.1 billion in 2019.
Operating margin, defined as
income from operations as a percentage of net revenues, for the
fourth quarter of 2020, was a negative 4.4%. Excluding DH, the
operating margin for the fourth quarter of 2020 was 11.2%, compared
with 16.7% in the fourth quarter of 2019 and 19.1% in the previous
quarter.
Operating margin for the full year of 2020 was a
negative 16.5%. Excluding DH, the operating margin for the full
year of 2020 was a negative 1.2%, compared with 18.8% in 2019.
Other income, net for the
fourth quarter of 2020 was negative RMB8 million (US$2 million),
compared to a positive RMB45 million for the fourth quarter of 2019
and negative RMB1 million for the previous quarter.
Other income, net for the full year of 2020 was
negative RMB89 million (US$14 million), compared to a positive
RMB331 million in 2019. The decrease was mainly due to impairment
loss on investments totaling RMB92 million in 2020.
Unrealized gains from fair value changes
of equity securities for the fourth quarter of 2020 was
RMB733 million (US$113 million), compared to unrealized gains from
fair value changes of equity securities of RMB230 million in the
fourth quarter of 2019 and unrealized gains from fair value changes
of equity securities of RMB39 million in the previous quarter.
Unrealized gains (losses) from fair value changes of equity
securities mainly represents the unrealized gains (losses) from our
investment in equity securities with readily determinable fair
values, such as AccorHotels.
For the full year of 2020, unrealized losses
from fair value changes of equity securities were RMB265 million
(US$42 million), compared to unrealized gains from fair value
changes of equity securities of RMB316 million in 2019.
Income tax benefit for the
fourth quarter of 2020 was RMB66 million (US$10 million), compared
to income tax expense of RMB133 million in the same period of 2019
and income tax benefit of RMB50 million in the previous quarter.
For the full year of 2020, income tax benefit was RMB215 million
(US$33 million), compared to income tax expense of RMB640 million
in 2019.
Net income attributable to Huazhu Group
Limited for the fourth quarter of 2020 was RMB703 million
(US$108 million). Excluding share-based compensation expenses and
the unrealized gains (losses) from fair value changes of equity
securities, adjusted net loss attributable to Huazhu Group Limited
(non-GAAP) for the fourth quarter of 2020 was RMB8 million (US$1
million). Excluding DH, the net income attributable to Huazhu Group
Limited for the fourth quarter of 2020 was RMB1.0 billion, compared
to net income attributable to Huazhu Group Limited of RMB619
million in the fourth quarter of 2019 and net income attributable
to Huazhu Group Limited of RMB482 million in the previous quarter.
Excluding DH, the adjusted net income attributable to Huazhu Group
Limited (non-GAAP) for the fourth quarter of 2020 was RMB300
million, compared with adjusted net income attributable to Huazhu
Group Limited (non-GAAP) of RMB411 million in the fourth quarter of
2019 and an adjusted net income attributable to Huazhu Group
Limited (non-GAAP) of RMB476 million in the previous quarter.
Net loss attributable to Huazhu Group Limited
for the full year of 2020 was RMB2.2 billion (US$336 million).
Excluding share-based compensation expenses and the unrealized
gains (losses) from fair value changes of equity securities,
adjusted net loss attributable to Huazhu Group Limited (non-GAAP)
for the full year of 2020 was RMB1.8 billion (US$275 million).
Excluding DH, the net loss attributable to Huazhu Group Limited for
the full year of 2020 was RMB847 million, compared to net income
attributable to Huazhu Group Limited of RMB1.8 billion in 2019.
Excluding DH, the adjusted net loss attributable to Huazhu Group
Limited (non-GAAP) for the full year of 2020 was RMB459 million,
compared with adjusted net income attributable to Huazhu Group
Limited (non-GAAP) of RMB1.6 billion in 2019.
Basic and diluted earnings per
share/ADS. For the fourth quarter of 2020, basic and
diluted earnings per share were RMB2.27 (US$0.35) and RMB2.16
(US$0.33), respectively. Excluding share-based compensation
expenses and unrealized gains (losses) from fair value changes of
equity securities, adjusted basic and diluted losses per share
(non-GAAP) were RMB0.02 (US$0.00).
For the full year of 2020, basic losses per
share were RMB7.49 (US$1.15). Excluding share-based compensation
expenses and unrealized gains (losses) from fair value changes of
equity securities, adjusted basic and diluted losses per share
(non-GAAP) were RMB6.16 (US$0.94).
EBITDA (non-GAAP) for the
fourth quarter of 2020 was RMB1.1 billion (US$167 million).
Excluding DH, the EBITDA (non-GAAP) for the fourth quarter of 2020
was RMB1.5 billion (US$226 million), compared with RMB1.1 billion
in the fourth quarter of 2019 and RMB859 million in the previous
quarter. Excluding share-based compensation expenses and unrealized
gains (losses) from fair value changes of equity securities,
adjusted EBITDA (non-GAAP) for the fourth quarter of 2020 was
RMB375 million (US$58 million). Excluding DH, the adjusted EBITDA
(non-GAAP) for the fourth quarter of 2020 was RMB764 million
(US$118 million), compared with RMB854 million in the fourth
quarter of 2019 and RMB853 million in the previous quarter.
EBITDA (non-GAAP) for the full year of 2020 was
negative RMB631 million (US$96 million). Excluding DH, the EBITDA
(non-GAAP) for the full year of 2020 was RMB736 million (US$112
million), compared with RMB3.6 billion in 2019. Excluding
share-based compensation expenses and unrealized gains (losses)
from fair value changes of equity securities, adjusted EBITDA
(non-GAAP) for the full year of 2020 was negative RMB244 million
(US$35 million). Excluding DH, the adjusted EBITDA (non-GAAP) for
the full year of 2020 was RMB1.1 billion (US$172 million), compared
with RMB3.3 billion in 2019.
Adjusted EBITDA margin
(non-GAAP), defined as adjusted EBITDA as a percentage of net
revenues, for the fourth quarter of 2020 was 12.2%, compared to
29.3% in the fourth quarter of 2019 and 5.8% in previous quarter.
Excluding to DH, adjusted EBITDA margin (non-GAAP) for the fourth
quarter of 2020 was 27.1%, compared to 29.3% in the fourth quarter
of 2019 and 31.2% in the previous quarter. Adjusted EBITDA margin
(non-GAAP) for the year of 2020 was a negative 2.4%, compared to a
positive 29.9% in 2019. Excluding to DH, adjusted EBITDA margin
(non-GAAP) for the year of 2020 was 13.0%, compared to 29.9% in
2019.
We achieved very strong recovery in the second
half of 2020. Adjusted EBITDA margin (non-GAAP) for the second half
of 2020 was 9.0%, compared to 29.4% in the second half of 2019 and
a negative 20.2% in the first half of 2020. Excluding to DH,
adjusted EBITDA margin (non-GAAP) for the second half of 2020 was
29.1%, compared to 29.4% in the second half of 2019 and a negative
15.9% in the first half of 2020.
Cash flow. Operating cash
inflow for the fourth quarter of 2020 was RMB304 million (US$46
million). Investing cash outflow for the fourth quarter of 2020 was
RMB515 million (US$79 million). Financing cash outflow for the
fourth quarter of 2020 was RMB410 million (US$62 million).
Operating cash inflow for the full year of 2020
was RMB609 million (US$93 million), representing a decrease of
81.5% from 2019. Investing cash outflow for the full year of 2020
was RMB8.1 billion (US$1.2 billion), compared to RMB285 million in
2019. Financing cash inflow for the full year of 2020 was RMB883
million (US$134 million), compared to RMB6.0 billion in 2019.
Cash and cash equivalents and Restricted
cash. As of December 31, 2020, the Company had a total
balance of cash and cash equivalents of RMB7.0 billion (US$1.1
billion) and restricted cash of RMB64 million (US$10 million).
Debt financing. As of December
31, 2020, the Company had a total debt balance of RMB12.0 billion
(US$1.8 billion) and the unutilized credit facility available to
the Company was RMB6.6 billion. Subsequent to the year end of 2020,
we continue to repay our outstanding loans and further reduce our
debt position.
COVID-19 update During Q4 2020,
despite numerous recurrences of COVID-19 in several cities and
provinces in mainland China, such as Shanghai, Chengdu, and the
Northeastern area of China, our business continued to recover,
thanks to China’s effective and precise control of the COVID-19
pandemic. More importantly, we noticed that demand for travel shows
resilience and recovery in previously-affected cities, with
acceleration after the COVID-19 risk level was moved downward in
those cities (from mid-to-high risk to low risk). This recovery
trend was temporarily paused in the first two months of 2021 due to
another COVID-19 resurgence in Shanghai, Beijing and Hebei
Province. Accordingly, the Chinese government introduced “stay
local” guidance prior to the Chinese New Year holiday (CNY) which
further pressured the recovery in February. However, our
performance started to recover steadily again post the CNY holiday.
RevPAR in March 2021 recovered to 87% of 2019 from only 56% of 2019
in February 2021. Particularly, after the National People’s
Congress and the Chinese People’s Political Consultative Conference
during the first week of March, the Chinese government further
eased travel restrictions which were in effect from March 16, 2021.
After that, we saw hotel demand in the Beijing area recovering
immediately and at a strong pace.
Steigenberger Hotels AG and its subsidiaries
(“DH”) suffered from the second wave and third wave of COVID-19
outbreak in European countries since late September 2020. Given
that the Europe has been encountering several resurgences of the
COVID-19 pandemic, the lockdown period there has been extended
several times, and currently is scheduled to end on April 18, 2021.
Despite these resurgences, the Q4 2020 DH net revenues remain
within our previous guidance. European countries began their
vaccination process in December 2020. However, due to the
uncertainty of the completion of the vaccination process, and
consequently the timing of business recovery, we are taking further
cost reduction and cash flow measures, such as negotiating with
landlords to reduce our rental costs, reducing or eliminating
discretionary corporate spending and capital expenditures, etc. We
also actively sought new business opportunities in the government’s
fight against COVID-19, such as offering Huazhu hotels to support
governmental agencies for pandemic prevention and control. The
extension of lockdown impacts are partially offset by extension of
the scope and duration of European government subsidy programs.
Guidance Huazhu anticipates the
gross opening of 1,800-2,000 hotels in 2021, considering the
COVID-19 resurgence happened in January and February. In 2021,
Huazhu is expected to close 500-550 hotels.
In the first quarter of 2021, Huazhu expects net
revenues growth to range from an 8% to a 10% increase compared to
the first quarter of 2020, or to range from an increase of 61-63%
if excluding DH. For the full year of 2021, we expect the net
revenue growth to range from a 50% to 54%, or to range from 50% to
54% if excluding DH.
To provide a more meaningful guidance
considering the impact of COVID-19, the net revenue guidance
mentioned above if compared to 2019 represents a decline of 7% to
9% in the first quarter of 2021 (or a decline of 12-14% if
excluding DH), and growth of 36% to 40% for the full year in 2021
(or 15% to 19% if excluding DH). In order to contain the spread of
COVID-19 during the Chinese New Year, Chinese government imposed
strict “stay local” guidance, which impacted travel demand in
January and February 2021. Upon the relaxation of travel
restrictions from mid-March, we recorded a strong recovery in
RevPAR. Excluding the impact of January and February, our revenue
guidance for Q1 2021 compared to Q1 2019 would have been a growth
of 7%-9%, (or 1%-3% if excluding DH), and 45%-49% (36%-40% if
excluding DH) for the full year 2021 compared to 2019. The above
forecast reflects the Company’s current and preliminary view, which
is subject to change.
Conference CallThe Company’s
management will host a conference call beginning at 9:00 a.m. Hong
Kong time on Thursday, March 25, 2021 (or 9:00 p.m. U.S. Eastern
time on Wednesday, March 24, 2021) following the announcement of
the results. The conference call will be a Direct Event call. All
participants must preregister online prior to the call. Please use
the link
http://apac.directeventreg.com/registration/event/1749583 to
complete the online registration at least 15 minutes prior to the
commencement of the conference call. Once preregistration has been
completed, participants will receive dial-in numbers, an event
passcode, and a unique registrant ID. To join the conference,
please dial the number you receive, enter the event passcode,
followed by your unique registrant ID, and you will be joined to
the conference promptly. Please dial in approximately 10 minutes
before the scheduled time of the call.
A recording of the conference call will be
available after the conclusion of the conference call through April
1, 2021. Please dial +1 (855) 452 5696 (for callers in the U.S.);
400 632 2162 (for callers in mainland China); 800 963 117 (for
callers in Hong Kong); or +61 2 8199 0299 (for callers outside the
U.S., mainland China and Hong Kong) and enter the passcode
1749583.
Use of Non-GAAP Financial
MeasuresTo supplement the Company’s unaudited consolidated
financial results presented in accordance with U.S. GAAP, the
Company uses the following non-GAAP measures defined as non-GAAP
financial measures by the SEC: hotel operating costs excluding
share-based compensation expenses; general and administrative
expenses excluding share-based compensation expenses; selling and
marketing expenses excluding share-based compensation expenses;
adjusted income from operations excluding share-based compensation
expenses; adjusted net income attributable to Huazhu Group Limited
excluding share-based compensation expenses and unrealized gains
(losses) from fair value changes of equity securities; adjusted
basic and diluted earnings per share/ADS excluding share-based
compensation expenses and unrealized gains (losses) from fair value
changes of equity securities; EBITDA; adjusted EBITDA excluding
share-based compensation expenses and unrealized gains (losses)
from fair value changes of equity securities; and adjusted EBITDA
margin. The presentation of these non-GAAP financial measures is
not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with
U.S. GAAP. For more information on these non-GAAP financial
measures, please see the table captioned “Reconciliations of GAAP
and non-GAAP results” set forth at the end of this release. The
Company believes that these non-GAAP financial measures provide
meaningful supplemental information regarding Company performance
by excluding share-based compensation expenses and unrealized gains
(losses) from fair value changes of equity securities that may not
be indicative of Company operating performance. The Company
believes that both management and investors benefit from referring
to these non-GAAP financial measures in assessing Company
performance and when planning and forecasting future periods. These
non-GAAP financial measures also facilitate management’s internal
comparisons to the Company’s historical performance. The Company
believes these non-GAAP financial measures are also useful to
investors in allowing for greater transparency with respect to
supplemental information used regularly by Company management in
financial and operational decision-making. A limitation of using
non-GAAP financial measures excluding share-based compensation
expenses and unrealized gains (losses) from fair value changes of
equity securities is that share-based compensation expenses and
unrealized gains (losses) from fair value changes of equity
securities have been and will continue to be significant and
recurring in the Company’s business. Management compensates for
these limitations by providing specific information regarding the
GAAP amounts excluded from each non-GAAP measure. The accompanying
tables have more details on the reconciliations between GAAP
financial measures that are most directly comparable to non-GAAP
financial measures.
The Company believes that EBITDA is a useful
financial metric to assess the operating and financial performance
before the impact of investing and financing transactions and
income taxes, given the significant investments that the Company
has made in leasehold improvements, depreciation and amortization
expense that comprise a significant portion of the Company’s cost
structure. In addition, the Company believes that EBITDA is widely
used by other companies in the lodging industry and may be used by
investors as a measure of financial performance. The Company
believes that EBITDA will provide investors with a useful tool for
comparability between periods because it eliminates depreciation
and amortization expense attributable to capital expenditures. The
Company also uses adjusted EBITDA, which is defined as EBITDA
before share-based compensation expenses and unrealized gains
(losses) from fair value changes of equity securities, to assess
operating results of the hotels in operation. The Company believes
that the exclusion of share-based compensation expenses and
unrealized gains (losses) from fair value changes of equity
securities helps facilitate year-on-year comparison of the results
of operations as the share-based compensation expenses and
unrealized gains (losses) from fair value changes of equity
securities may not be indicative of Company operating
performance.
The Company believes that unrealized gains and
losses from changes in fair value of equity securities are
generally meaningless in understanding our reported results or
evaluating our economic performance of our businesses. These gains
and losses have caused and will continue to cause significant
volatility in periodic earnings.
Therefore, the Company believes adjusted EBITDA
more closely reflects the performance capability of hotels. The
presentation of EBITDA and adjusted EBITDA should not be construed
as an indication that the Company’s future results will be
unaffected by other charges and gains considered to be outside the
ordinary course of business.
The use of EBITDA and adjusted EBITDA has
certain limitations. Depreciation and amortization expense for
various long-term assets (including land use rights), income tax,
interest expense and interest income have been and will be incurred
and are not reflected in the presentation of EBITDA. Share-based
compensation expenses and unrealized gains (losses) from fair value
changes of equity securities have been and will be incurred and are
not reflected in the presentation of adjusted EBITDA. Each of these
items should also be considered in the overall evaluation of the
results. The Company compensates for these limitations by providing
the relevant disclosure of the depreciation and amortization,
interest income, interest expense, income tax expense, share-based
compensation expenses, and unrealized gains (losses) from fair
value changes of equity securities and other relevant items both in
the reconciliations to the U.S. GAAP financial measures and in the
consolidated financial statements, all of which should be
considered when evaluating the performance of the Company.
The terms EBITDA and adjusted EBITDA are not
defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is
a measure of net income, operating income, operating performance or
liquidity presented in accordance with U.S. GAAP. When assessing
the operating and financial performance, investors should not
consider these data in isolation or as a substitute for the
Company’s net income, operating income or any other operating
performance measure that is calculated in accordance with U.S.
GAAP. In addition, the Company’s EBITDA or adjusted EBITDA may not
be comparable to EBITDA or adjusted EBITDA or similarly titled
measures utilized by other companies since such other companies may
not calculate EBITDA or adjusted EBITDA in the same manner as the
Company does.
Reconciliations of the Company’s non-GAAP
financial measures, including EBITDA and adjusted EBITDA, to the
consolidated statement of operations information are included at
the end of this press release.
About Huazhu Group
LimitedOriginated in China, Huazhu Group Limited is a
world-leading hotel group. As of December 31, 2020, Huazhu
operated 6,789 hotels with 652,162 rooms in operation in 16
countries. Huazhu’s brands include Hi Inn, Elan Hotel, HanTing
Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel,
Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, and Ni Hao
Hotel. Upon the completion of the acquisition of DH on
January 2, 2020, Huazhu added five brands to its portfolio,
including Steigenberger Hotels & Resorts, Maxx by
Steigenberger, Jaz in the City, IntercityHotel and Zleep
Hotel. In addition, 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 that Huazhu
appoints, and Huazhu 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, 2020, 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; economic conditions; the regulatory environment; 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; 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 InformationInvestor RelationsTel: +86
(21) 6195 9561Email: ir@huazhu.comhttp://ir.huazhu.com
---Financial Tables and Operational Data
Follow---
|
Huazhu Group Limited |
Unaudited Condensed Consolidated Balance
Sheets |
|
December 31, 2019 |
|
|
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
|
RMB |
|
|
US$ |
|
|
|
(in millions) |
|
|
ASSETS |
Current assets: |
Cash and cash equivalents |
3,234 |
|
|
7,026 |
|
|
1,077 |
|
|
Restricted cash |
10,765 |
|
|
64 |
|
|
10 |
|
|
Short-term investments |
2,908 |
|
|
3,903 |
|
|
598 |
|
|
Accounts receivable, net |
218 |
|
|
404 |
|
|
62 |
|
|
Loan receivables, net |
193 |
|
|
304 |
|
|
47 |
|
|
Amounts due from related parties |
182 |
|
|
178 |
|
|
27 |
|
|
Inventories |
57 |
|
|
89 |
|
|
14 |
|
|
Other current assets, net |
699 |
|
|
914 |
|
|
140 |
|
|
Total current assets |
18,256 |
|
|
12,882 |
|
|
1,975 |
|
|
|
|
|
|
Property and equipment, net |
5,854 |
|
|
6,682 |
|
|
1,024 |
|
|
Intangible assets, net |
1,662 |
|
|
5,945 |
|
|
911 |
|
|
Operating lease right-of-use assets |
20,875 |
|
|
28,980 |
|
|
4,441 |
|
|
Finance lease right-of-use assets |
- |
|
|
2,041 |
|
|
313 |
|
|
Land use rights, net |
215 |
|
|
213 |
|
|
33 |
|
|
Long-term investments |
1,929 |
|
|
1,923 |
|
|
295 |
|
|
Goodwill |
2,657 |
|
|
4,988 |
|
|
764 |
|
|
Loan receivables, net |
280 |
|
|
135 |
|
|
21 |
|
|
Other assets, net |
707 |
|
|
743 |
|
|
114 |
|
|
Deferred tax assets |
548 |
|
|
1,266 |
|
|
193 |
|
|
Total assets |
52,983 |
|
|
65,798 |
|
|
10,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
8,499 |
|
|
1,142 |
|
|
175 |
|
|
Accounts payable |
1,176 |
|
|
1,241 |
|
|
190 |
|
|
Amounts due to related parties |
95 |
|
|
132 |
|
|
20 |
|
|
Salary and welfare payables |
491 |
|
|
526 |
|
|
81 |
|
|
Deferred revenue |
1,179 |
|
|
1,272 |
|
|
195 |
|
|
Operating lease liabilities, current |
3,082 |
|
|
3,406 |
|
|
522 |
|
|
Finance lease liabilities, current |
- |
|
|
31 |
|
|
5 |
|
|
Accrued expenses and other current liabilities |
1,856 |
|
|
2,440 |
|
|
374 |
|
|
Dividends payable |
678 |
|
|
- |
|
|
- |
|
|
Income tax payable |
231 |
|
|
339 |
|
|
52 |
|
|
Total current liabilities |
17,287 |
|
|
10,529 |
|
|
1,614 |
|
|
|
|
|
|
Long-term debt |
8,084 |
|
|
10,856 |
|
|
1,664 |
|
|
Operating lease liabilities, noncurrent |
18,496 |
|
|
27,048 |
|
|
4,145 |
|
|
Finance lease liabilities, noncurrent |
- |
|
|
2,497 |
|
|
383 |
|
|
Deferred revenue |
559 |
|
|
662 |
|
|
101 |
|
|
Other long-term liabilities |
566 |
|
|
771 |
|
|
118 |
|
|
Deferred tax liabilities |
491 |
|
|
1,824 |
|
|
280 |
|
|
Retirement benefit obligations |
- |
|
|
179 |
|
|
27 |
|
|
Total liabilities |
45,483 |
|
|
54,366 |
|
|
8,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
Ordinary shares |
0 |
|
|
0 |
|
|
0 |
|
|
Treasury shares |
(107 |
) |
|
(107 |
) |
|
(16 |
) |
|
Additional paid-in capital |
3,834 |
|
|
9,808 |
|
|
1,503 |
|
|
Retained earnings |
3,701 |
|
|
1,502 |
|
|
230 |
|
|
Accumulated other comprehensive income (loss) |
(49 |
) |
|
127 |
|
|
19 |
|
|
Total Huazhu Group Limited shareholders' equity |
7,379 |
|
|
11,330 |
|
|
1,736 |
|
|
Noncontrolling interest |
121 |
|
|
102 |
|
|
16 |
|
|
Total equity |
7,500 |
|
|
11,432 |
|
|
1,752 |
|
|
Total liabilities and equity |
52,983 |
|
|
65,798 |
|
|
10,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Huazhu Group Limited |
Unaudited Condensed Consolidated Statements of
Comprehensive Income |
|
Quarter Ended |
|
|
Year Ended |
|
|
|
December31, 2019 |
|
|
September 30, 2020 |
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
|
December 31, 2020 |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
(in millions, except shares, per share and per ADS
data) |
Revenues: |
|
|
|
|
|
|
|
Leased and owned hotels |
1,921 |
|
|
2,131 |
|
|
2,024 |
|
|
310 |
|
|
7,718 |
|
|
6,908 |
|
|
1,059 |
|
|
Manachised and franchised hotels |
938 |
|
|
995 |
|
|
999 |
|
|
153 |
|
|
3,342 |
|
|
3,136 |
|
|
481 |
|
|
Others |
51 |
|
|
32 |
|
|
48 |
|
|
8 |
|
|
152 |
|
|
152 |
|
|
23 |
|
|
Net revenues |
2,910 |
|
|
3,158 |
|
|
3,071 |
|
|
471 |
|
|
11,212 |
|
|
10,196 |
|
|
1,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Hotel operating costs: |
|
|
|
|
|
|
|
Rents |
(663 |
) |
|
(859 |
) |
|
(929 |
) |
|
(142 |
) |
|
(2,624 |
) |
|
(3,485 |
) |
|
(534 |
) |
|
Utilities |
(91 |
) |
|
(136 |
) |
|
(120 |
) |
|
(18 |
) |
|
(404 |
) |
|
(478 |
) |
|
(73 |
) |
|
Personnel costs |
(490 |
) |
|
(611 |
) |
|
(738 |
) |
|
(113 |
) |
|
(1,854 |
) |
|
(2,501 |
) |
|
(383 |
) |
|
Depreciation and amortization |
(257 |
) |
|
(337 |
) |
|
(348 |
) |
|
(53 |
) |
|
(960 |
) |
|
(1,316 |
) |
|
(202 |
) |
|
Consumables, food and beverage |
(215 |
) |
|
(253 |
) |
|
(257 |
) |
|
(39 |
) |
|
(793 |
) |
|
(885 |
) |
|
(136 |
) |
|
Others |
(163 |
) |
|
(274 |
) |
|
(356 |
) |
|
(55 |
) |
|
(555 |
) |
|
(1,064 |
) |
|
(163 |
) |
|
Total hotel operating costs |
(1,879 |
) |
|
(2,470 |
) |
|
(2,748 |
) |
|
(420 |
) |
|
(7,190 |
) |
|
(9,729 |
) |
|
(1,491 |
) |
|
Other operating costs |
(21 |
) |
|
(15 |
) |
|
(22 |
) |
|
(3 |
) |
|
(57 |
) |
|
(52 |
) |
|
(8 |
) |
|
Selling and marketing expenses |
(134 |
) |
|
(162 |
) |
|
(181 |
) |
|
(28 |
) |
|
(426 |
) |
|
(597 |
) |
|
(91 |
) |
|
General and administrative expenses |
(330 |
) |
|
(343 |
) |
|
(336 |
) |
|
(52 |
) |
|
(1,061 |
) |
|
(1,259 |
) |
|
(193 |
) |
|
Pre-opening expenses |
(149 |
) |
|
(42 |
) |
|
(36 |
) |
|
(6 |
) |
|
(502 |
) |
|
(288 |
) |
|
(44 |
) |
|
Total operating costs and expenses |
(2,513 |
) |
|
(3,032 |
) |
|
(3,323 |
) |
|
(509 |
) |
|
(9,236 |
) |
|
(11,925 |
) |
|
(1,827 |
) |
|
Goodwill impairment loss |
- |
|
|
(437 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(437 |
) |
|
(67 |
) |
|
Other operating income (expense), net |
89 |
|
|
110 |
|
|
118 |
|
|
18 |
|
|
132 |
|
|
480 |
|
|
74 |
|
|
Income (losses) from operations |
486 |
|
|
(201 |
) |
|
(134 |
) |
|
(20 |
) |
|
2,108 |
|
|
(1,686 |
) |
|
(257 |
) |
|
Interest income |
39 |
|
|
31 |
|
|
33 |
|
|
5 |
|
|
160 |
|
|
119 |
|
|
18 |
|
|
Interest expense |
(83 |
) |
|
(136 |
) |
|
(118 |
) |
|
(18 |
) |
|
(315 |
) |
|
(533 |
) |
|
(82 |
) |
|
Other (expense) income, net |
45 |
|
|
(1 |
) |
|
(8 |
) |
|
(2 |
) |
|
331 |
|
|
(89 |
) |
|
(14 |
) |
|
Unrealized gains (losses) from fair value changes of equity
securities |
230 |
|
|
39 |
|
|
733 |
|
|
113 |
|
|
316 |
|
|
(265 |
) |
|
(42 |
) |
|
Foreign exchange (loss) gain |
69 |
|
|
48 |
|
|
151 |
|
|
23 |
|
|
(35 |
) |
|
175 |
|
|
27 |
|
|
Income (Loss) before income taxes |
786 |
|
|
(220 |
) |
|
657 |
|
|
101 |
|
|
2,565 |
|
|
(2,279 |
) |
|
(350 |
) |
|
Income tax (expense) benefit |
(133 |
) |
|
50 |
|
|
66 |
|
|
10 |
|
|
(640 |
) |
|
215 |
|
|
33 |
|
|
Gain (Loss) from equity method investments |
(28 |
) |
|
(35 |
) |
|
(11 |
) |
|
(2 |
) |
|
(164 |
) |
|
(140 |
) |
|
(21 |
) |
|
Net income (loss) |
625 |
|
|
(205 |
) |
|
712 |
|
|
109 |
|
|
1,761 |
|
|
(2,204 |
) |
|
(338 |
) |
|
Net (income) loss attributable to noncontrolling interest |
(6 |
) |
|
(7 |
) |
|
(9 |
) |
|
(1 |
) |
|
8 |
|
|
12 |
|
|
2 |
|
|
Net income (loss) attributable to Huazhu Group Limited |
619 |
|
|
(212 |
) |
|
703 |
|
|
108 |
|
|
1,769 |
|
|
(2,192 |
) |
|
(336 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
Gain arising from defined benefit plan, net of tax |
- |
|
|
(7 |
) |
|
(27 |
) |
|
(4 |
) |
|
- |
|
|
(27 |
) |
|
(4 |
) |
|
Foreign currency translation adjustments, net of tax |
29 |
|
|
237 |
|
|
(8 |
) |
|
(1 |
) |
|
(7 |
) |
|
203 |
|
|
31 |
|
|
Comprehensive income (loss) |
654 |
|
|
25 |
|
|
677 |
|
|
104 |
|
|
1,754 |
|
|
(2,028 |
) |
|
(311 |
) |
|
Comprehensive (income) loss attributable to noncontrolling
interest |
(6 |
) |
|
(7 |
) |
|
(9 |
) |
|
(1 |
) |
|
8 |
|
|
12 |
|
|
2 |
|
|
Comprehensive income (loss) attributable to Huazhu Group
Limited |
648 |
|
|
18 |
|
|
668 |
|
|
103 |
|
|
1,762 |
|
|
(2,016 |
) |
|
(309 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Losses) per share/ADS: |
|
|
|
|
|
|
|
Basic |
2.17 |
|
|
(0.73 |
) |
|
2.27 |
|
|
0.35 |
|
|
6.22 |
|
|
(7.49 |
) |
|
(1.15 |
) |
|
Diluted |
2.07 |
|
|
(0.73 |
) |
|
2.16 |
|
|
0.33 |
|
|
5.94 |
|
|
(7.49 |
) |
|
(1.15 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation: |
|
|
|
|
|
Basic |
285,256,343 |
|
|
291,675,396 |
|
|
309,752,462 |
|
|
309,752,462 |
|
|
284,305,138 |
|
|
292,739,841 |
|
|
292,739,841 |
|
|
Diluted |
304,319,151 |
|
|
291,675,396 |
|
|
326,326,640 |
|
|
326,326,640 |
|
|
304,309,890 |
|
|
292,739,841 |
|
|
292,739,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Huazhu Group Limited |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
Quarter Ended |
|
|
Year Ended |
|
|
|
December 31, 2019 |
|
|
September 30, 2020 |
|
|
December 31, 2020 |
|
|
December 31,2019 |
|
|
December 31, 2020 |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
( in millions) |
Operating activities: |
|
|
|
|
|
|
|
Net (loss) income |
625 |
|
|
(205 |
) |
|
712 |
|
|
109 |
|
|
1,761 |
|
|
(2,204 |
) |
|
(338 |
) |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
Share-based compensation |
22 |
|
|
33 |
|
|
22 |
|
|
4 |
|
|
110 |
|
|
122 |
|
|
19 |
|
|
Depreciation and amortization,and other |
273 |
|
|
367 |
|
|
384 |
|
|
59 |
|
|
1,019 |
|
|
1,445 |
|
|
221 |
|
|
Impairment loss |
10 |
|
|
453 |
|
|
138 |
|
|
21 |
|
|
13 |
|
|
709 |
|
|
109 |
|
|
Loss (Income) from equity method investments, net of dividends |
37 |
|
|
14 |
|
|
38 |
|
|
6 |
|
|
213 |
|
|
145 |
|
|
22 |
|
|
Investment (income) loss |
(353 |
) |
|
(89 |
) |
|
(881 |
) |
|
(135 |
) |
|
(477 |
) |
|
108 |
|
|
17 |
|
|
Changes in operating assets andliabilities |
387 |
|
|
747 |
|
|
399 |
|
|
61 |
|
|
482 |
|
|
339 |
|
|
52 |
|
|
Other |
(22 |
) |
|
(181 |
) |
|
(508 |
) |
|
(79 |
) |
|
172 |
|
|
(55 |
) |
|
(9 |
) |
|
Net cash provided by operating activities |
979 |
|
|
1,139 |
|
|
304 |
|
|
46 |
|
|
3,293 |
|
|
609 |
|
|
93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
Capital expenditures |
(459 |
) |
|
(452 |
) |
|
(501 |
) |
|
(77 |
) |
|
(1,535 |
) |
|
(1,776 |
) |
|
(272 |
) |
|
Acquisitions, net of cash received |
(160 |
) |
|
(3 |
) |
|
(1 |
) |
|
0 |
|
|
(244 |
) |
|
(5,060 |
) |
|
(775 |
) |
|
Purchase of investments |
(63 |
) |
|
(1,631 |
) |
|
(71 |
) |
|
(11 |
) |
|
(329 |
) |
|
(1,702 |
) |
|
(261 |
) |
|
Proceeds from maturity/sale ofinvestments |
1,281 |
|
|
14 |
|
|
12 |
|
|
2 |
|
|
2,002 |
|
|
396 |
|
|
61 |
|
|
Loan advances |
(76 |
) |
|
(48 |
) |
|
(15 |
) |
|
(2 |
) |
|
(541 |
) |
|
(145 |
) |
|
(22 |
) |
|
Loan collections |
92 |
|
|
51 |
|
|
60 |
|
|
9 |
|
|
347 |
|
|
182 |
|
|
28 |
|
|
Other |
20 |
|
|
0 |
|
|
1 |
|
|
0 |
|
|
15 |
|
|
4 |
|
|
1 |
|
|
Net cash provided by (used in) investing activities |
635 |
|
|
(2,069 |
) |
|
(515 |
) |
|
(79 |
) |
|
(285 |
) |
|
(8,101 |
) |
|
(1,240 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
Net proceeds from issuance of ordinary shares |
4 |
|
|
5,245 |
|
|
774 |
|
|
119 |
|
|
14 |
|
|
6,019 |
|
|
922 |
|
|
Proceeds from debt |
11,064 |
|
|
1,468 |
|
|
311 |
|
|
48 |
|
|
15,392 |
|
|
6,906 |
|
|
1,058 |
|
|
Repayment of debt |
(3,136 |
) |
|
(2,844 |
) |
|
(1,410 |
) |
|
(216 |
) |
|
(8,682 |
) |
|
(11,207 |
) |
|
(1,718 |
) |
|
Dividend paid |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(658 |
) |
|
(678 |
) |
|
(104 |
) |
|
Other |
(2 |
) |
|
(33 |
) |
|
(85 |
) |
|
(13 |
) |
|
(21 |
) |
|
(157 |
) |
|
(24 |
) |
|
Net cash provided by (used in) financing activities |
7,930 |
|
|
3,836 |
|
|
(410 |
) |
|
(62 |
) |
|
6,045 |
|
|
883 |
|
|
134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
4 |
|
|
(73 |
) |
|
(189 |
) |
|
(29 |
) |
|
62 |
|
|
(300 |
) |
|
(45 |
) |
|
Net increase (decrease) in cash, cash equivalents and restricted
cash |
9,548 |
|
|
2,833 |
|
|
(810 |
) |
|
(124 |
) |
|
9,115 |
|
|
(6,909 |
) |
|
(1,058 |
) |
|
Cash, cash equivalents and restricted cash at the beginning of the
period |
4,451 |
|
|
5,067 |
|
|
7,900 |
|
|
1,211 |
|
|
4,884 |
|
|
13,999 |
|
|
2,145 |
|
|
Cash, cash equivalents and restricted cash at the end of the
period |
13,999 |
|
|
7,900 |
|
|
7,090 |
|
|
1,087 |
|
|
13,999 |
|
|
7,090 |
|
|
1,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Huazhu Group Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended December 31, 2020 |
|
GAAP Result |
|
|
% of Net Revenues |
|
|
Share-based Compensation |
|
% of Net Revenues |
|
|
Non-GAAP Result |
|
|
% of Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
|
RMB |
|
|
RMB |
|
|
(in millions) |
Hotel operating costs |
2,748 |
|
|
89.5 |
% |
|
10 |
|
0.3 |
% |
|
2,738 |
|
|
89.2 |
% |
|
Other operating costs |
22 |
|
|
0.7 |
% |
|
- |
|
0.0 |
% |
|
22 |
|
|
0.7 |
% |
|
Selling and marketing expenses |
181 |
|
|
5.9 |
% |
|
1 |
|
0.0 |
% |
|
180 |
|
|
5.9 |
% |
|
General and administrative expenses |
336 |
|
|
10.9 |
% |
|
11 |
|
0.4 |
% |
|
325 |
|
|
10.5 |
% |
|
Pre-opening expenses |
36 |
|
|
1.2 |
% |
|
- |
|
0.0 |
% |
|
36 |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses |
3,323 |
|
|
108.2 |
% |
|
22 |
|
0.7 |
% |
|
3,301 |
|
|
107.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
(134 |
) |
|
-4.4 |
% |
|
22 |
|
0.7 |
% |
|
(112 |
) |
|
-3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, 2020 |
|
GAAP Result |
|
|
% of Net Revenues |
|
|
Share-based Compensation |
|
% of Net Revenues |
|
|
Non-GAAP Result |
|
|
% of Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
|
US$ |
|
|
US$ |
|
|
(in millions) |
Hotel operating costs |
420 |
|
|
89.5 |
% |
|
2 |
|
0.3 |
% |
|
418 |
|
|
89.2 |
% |
|
Other operating costs |
3 |
|
|
0.7 |
% |
|
- |
|
0.0 |
% |
|
3 |
|
|
0.7 |
% |
|
Selling and marketing expenses |
28 |
|
|
5.9 |
% |
|
0 |
|
0.0 |
% |
|
28 |
|
|
5.9 |
% |
|
General and administrative expenses |
52 |
|
|
10.9 |
% |
|
2 |
|
0.4 |
% |
|
50 |
|
|
10.5 |
% |
|
Pre-opening expenses |
6 |
|
|
1.2 |
% |
|
- |
|
0.0 |
% |
|
6 |
|
|
1.2 |
% |
|
Total operating costs and expenses |
509 |
|
|
108.2 |
% |
|
4 |
|
0.7 |
% |
|
505 |
|
|
107.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
(20 |
) |
|
-4.4 |
% |
|
4 |
|
0.7 |
% |
|
(16 |
) |
|
-3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 30, 2020 |
|
GAAP Result |
|
|
% of Net Revenues |
|
|
Share-based Compensation |
|
% of Net Revenues |
|
|
Non-GAAP Result |
|
|
% of Net Revenues |
|
|
|
RMB |
|
|
|
|
|
RMB |
|
|
|
|
RMB |
|
|
|
|
|
|
(in millions) |
Hotel operating costs |
2,470 |
|
|
78.2 |
% |
|
12 |
|
0.4 |
% |
|
2,458 |
|
|
77.8 |
% |
|
Other operating costs |
15 |
|
|
0.5 |
% |
|
- |
|
0.0 |
% |
|
15 |
|
|
0.5 |
% |
|
Selling and marketing expenses |
162 |
|
|
5.1 |
% |
|
1 |
|
0.0 |
% |
|
161 |
|
|
5.1 |
% |
|
General and administrative expenses |
343 |
|
|
10.9 |
% |
|
20 |
|
0.6 |
% |
|
323 |
|
|
10.3 |
% |
|
Pre-opening expenses |
42 |
|
|
1.3 |
% |
|
- |
|
0.0 |
% |
|
42 |
|
|
1.3 |
% |
|
Total operating costs and expenses |
3,032 |
|
|
96.0 |
% |
|
33 |
|
1.0 |
% |
|
2,999 |
|
|
95.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
(201 |
) |
|
-6.4 |
% |
|
33 |
|
1.0 |
% |
|
(168 |
) |
|
-5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, 2019 |
|
GAAP Result |
|
|
% of Net Revenues |
|
|
Share-based Compensation |
|
% of Net Revenues |
|
|
Non-GAAP Result |
|
|
% of Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
|
|
|
|
|
RMB |
|
|
|
|
RMB |
|
|
|
|
(in millions) |
Hotel operating costs |
1,879 |
|
|
64.6 |
% |
|
7 |
|
0.2 |
% |
|
1,872 |
|
|
64.4 |
% |
|
Other operating costs |
21 |
|
|
0.7 |
% |
|
- |
|
0.0 |
% |
|
21 |
|
|
0.7 |
% |
|
Selling and marketing expenses |
134 |
|
|
4.6 |
% |
|
1 |
|
0.0 |
% |
|
133 |
|
|
4.6 |
% |
|
General and administrative expenses |
330 |
|
|
11.3 |
% |
|
14 |
|
0.5 |
% |
|
316 |
|
|
10.8 |
% |
|
Pre-opening expenses |
149 |
|
|
5.1 |
% |
|
- |
|
0.0 |
% |
|
149 |
|
|
5.1 |
% |
|
Total operating costs and expenses |
2,513 |
|
|
86.3 |
% |
|
22 |
|
0.7 |
% |
|
2,491 |
|
|
85.6 |
% |
|
Income from operations |
486 |
|
|
16.7 |
% |
|
22 |
|
0.7 |
% |
|
508 |
|
|
17.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2020 |
|
GAAP Result |
% of Net Revenues |
Share-based Compensation |
% of Net Revenues |
Non-GAAP Result |
% of Net Revenues |
|
RMB |
|
RMB |
|
RMB |
|
|
(in millions) |
Hotel operating costs |
9,729 |
|
95.4 |
% |
42 |
0.4 |
% |
9,687 |
|
95.0 |
% |
Other operating costs |
52 |
|
0.5 |
% |
- |
0.0 |
% |
52 |
|
0.5 |
% |
Selling and marketing expenses |
597 |
|
5.9 |
% |
4 |
0.0 |
% |
593 |
|
5.9 |
% |
General and administrative expenses |
1,259 |
|
12.3 |
% |
76 |
0.7 |
% |
1,183 |
|
11.6 |
% |
Pre-opening expenses |
288 |
|
2.8 |
% |
- |
0.0 |
% |
288 |
|
2.8 |
% |
Total operating costs and expenses |
11,925 |
|
116.9 |
% |
122 |
1.1 |
% |
11,803 |
|
115.8 |
% |
Income from operations |
(1,686 |
) |
-16.5 |
% |
122 |
1.1 |
% |
(1,564 |
) |
-15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2020 |
|
GAAP Result |
% of Net Revenues |
Share-based Compensation |
% of Net Revenues |
Non-GAAP Result |
% of Net Revenues |
|
US$ |
|
US$ |
|
US$ |
|
|
(in millions) |
Hotel operating costs |
1,491 |
|
95.4 |
% |
6 |
0.4 |
% |
1,485 |
|
95.0 |
% |
Other operating costs |
8 |
|
0.5 |
% |
- |
0.0 |
% |
8 |
|
0.5 |
% |
Selling and marketing expenses |
91 |
|
5.9 |
% |
1 |
0.0 |
% |
90 |
|
5.9 |
% |
General and administrative expenses |
193 |
|
12.3 |
% |
12 |
0.7 |
% |
181 |
|
11.6 |
% |
Pre-opening expenses |
44 |
|
2.8 |
% |
- |
0.0 |
% |
44 |
|
2.8 |
% |
Total operating costs and expenses |
1,827 |
|
116.9 |
% |
19 |
1.1 |
% |
1,808 |
|
115.8 |
% |
Income from operations |
(257 |
) |
-16.5 |
% |
19 |
1.1 |
% |
(238 |
) |
-15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 |
|
GAAP Result |
% of Net Revenues |
Share-based Compensation |
% of Net Revenues |
Non-GAAP Result |
% of Net Revenues |
|
RMB |
|
RMB |
|
RMB |
|
|
(in millions) |
Hotel operating costs |
7,190 |
64.1 |
% |
35 |
0.3 |
% |
7,155 |
63.8 |
% |
Other operating costs |
57 |
0.5 |
% |
- |
0.0 |
% |
57 |
0.5 |
% |
Selling and marketing expenses |
426 |
3.8 |
% |
3 |
0.0 |
% |
423 |
3.8 |
% |
General and administrative expenses |
1,061 |
9.5 |
% |
72 |
0.6 |
% |
989 |
8.9 |
% |
Pre-opening expenses |
502 |
4.5 |
% |
- |
0.0 |
% |
502 |
4.5 |
% |
Total operating costs and expenses |
9,236 |
82.4 |
% |
110 |
0.9 |
% |
9,126 |
81.5 |
% |
Income from operations |
2,108 |
18.8 |
% |
110 |
0.9 |
% |
2,218 |
19.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Huazhu Group Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended |
|
Year Ended |
|
December 31, 2019 |
|
September 30,2020 |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(in millions, except shares, per share and per ADS
data) |
Net income (loss) attributable to Huazhu Group Limited (GAAP) |
619 |
|
|
(212 |
) |
|
703 |
|
|
108 |
|
|
1,769 |
|
|
(2,192 |
) |
|
(336 |
) |
|
Share-based compensation expenses |
22 |
|
|
33 |
|
|
22 |
|
|
4 |
|
|
110 |
|
|
122 |
|
|
19 |
|
|
Unrealized (gains) losses from fair value changes of equity
securities |
(230 |
) |
|
(39 |
) |
|
(733 |
) |
|
(113 |
) |
|
(316 |
) |
|
265 |
|
|
42 |
|
|
Adjusted net income attributable to Huazhu Group Limited
(non-GAAP) |
411 |
|
|
(218 |
) |
|
(8 |
) |
|
(1 |
) |
|
1,563 |
|
|
(1,805 |
) |
|
(275 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings (losses) per share/ADS (non-GAAP) |
|
|
|
|
|
Basic |
1.44 |
|
|
(0.75 |
) |
|
(0.02 |
) |
|
(0.00 |
) |
|
5.50 |
|
|
(6.16 |
) |
|
(0.94 |
) |
|
Diluted |
1.38 |
|
|
(0.75 |
) |
|
(0.02 |
) |
|
(0.00 |
) |
|
5.27 |
|
|
(6.16 |
) |
|
(0.94 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation |
|
|
|
|
|
Basic |
285,256,343 |
|
|
291,675,396 |
|
|
309,752,462 |
|
|
309,752,462 |
|
|
284,305,138 |
|
|
292,739,841 |
|
|
292,739,841 |
|
|
Diluted |
304,319,151 |
|
|
291,675,396 |
|
|
309,752,462 |
|
|
309,752,462 |
|
|
304,309,890 |
|
|
292,739,841 |
|
|
292,739,841 |
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Year Ended |
|
December 31, 2019 |
|
September 30, 2020 |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(in millions, except per share and per ADS
data) |
Net income (loss) attributable to Huazhu Group Limited
(GAAP) |
619 |
|
|
(212 |
) |
|
703 |
|
|
108 |
|
|
1,769 |
|
|
(2,192 |
) |
|
(336 |
) |
|
Interest income |
(39 |
) |
|
(31 |
) |
|
(33 |
) |
|
(5 |
) |
|
(160 |
) |
|
(119 |
) |
|
(18 |
) |
|
Interest expense |
83 |
|
|
136 |
|
|
118 |
|
|
18 |
|
|
315 |
|
|
533 |
|
|
82 |
|
|
Income tax expense |
133 |
|
|
(50 |
) |
|
(66 |
) |
|
(10 |
) |
|
640 |
|
|
(215 |
) |
|
(33 |
) |
|
Depreciation and amortization |
266 |
|
|
347 |
|
|
364 |
|
|
56 |
|
|
991 |
|
|
1,362 |
|
|
209 |
|
|
EBITDA (non-GAAP) |
1,062 |
|
|
190 |
|
|
1,086 |
|
|
167 |
|
|
3,555 |
|
|
(631 |
) |
|
(96 |
) |
|
Share-based compensation |
22 |
|
|
33 |
|
|
22 |
|
|
4 |
|
|
110 |
|
|
122 |
|
|
19 |
|
|
Unrealized (gains) losses from fair value changes of equity
securities |
(230 |
) |
|
(39 |
) |
|
(733 |
) |
|
(113 |
) |
|
(316 |
) |
|
265 |
|
|
42 |
|
|
Adjusted EBITDA (non-GAAP) |
854 |
|
|
184 |
|
|
375 |
|
|
58 |
|
|
3,349 |
|
|
(244 |
) |
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Results:
Legacy-Huazhu(1)
|
|
|
|
|
Number of hotels |
|
Number of rooms |
|
Opened in Q4 2020 |
Closed
(2)in Q4
2020 |
Net added in Q4 2020 |
As of December 31, 2020
(3) |
|
As of December 31, 2020 |
|
|
Leased and owned hotels |
4 |
(10 |
) |
(6 |
) |
681 |
|
90,942 |
Manachised and franchised hotels |
389 |
(104 |
) |
285 |
|
5,988 |
|
537,193 |
Total |
393 |
(114 |
) |
279 |
|
6,669 |
|
628,135 |
|
|
|
|
|
|
|
|
|
(1) Legacy-Huazhu refers to Huazhu and its
subsidiaries, excluding DH.(2) The reasons for
hotel closures mainly include non-compliance with our brand
standards, operating losses, and property-related issues. In Q4
2020, we temporarily closed 6 hotels for brand upgrade and business
model change purposes.(3) As of December 31, 2020,
74 hotels were requisitioned by governmental authorities. |
|
|
|
|
As of December 31, 2020 |
|
Number of hotels |
Unopened hotels in pipeline |
Economy hotels |
4,362 |
1,183 |
Leased and owned hotels |
438 |
4 |
Manachised and franchised hotels |
3,924 |
1,179 |
Midscale and upscale hotels |
2,307 |
1,228 |
Leased and owned hotels |
243 |
14 |
Manachised and franchised hotels |
2,064 |
1,214 |
Total |
6,669 |
2,411 |
|
|
|
|
|
Operational hotels (excluding hotels under
requisition) |
|
|
For the quarter ended |
|
|
|
December 31, |
September 30, |
December 31, |
yoy |
|
|
2019 |
2020 |
2020 |
change |
|
Average daily room rate (in RMB) |
|
|
|
|
|
Leased and owned hotels |
277 |
255 |
272 |
-1.8% |
|
Manachised and franchised hotels |
223 |
211 |
224 |
0.6% |
|
Blended |
232 |
218 |
231 |
-0.5% |
|
Occupancy rate (as a percentage) |
|
|
|
|
|
Leased and owned hotels |
84.7% |
82.9% |
79.6% |
-5.2p.p. |
|
Manachised and franchised hotels |
81.6% |
81.8% |
80.8% |
-0.9p.p. |
|
Blended |
82.2% |
82.0% |
80.6% |
-1.6p.p. |
|
RevPAR (in RMB) |
|
|
|
|
|
Leased and owned hotels |
235 |
211 |
217 |
-7.8% |
|
Manachised and franchised hotels |
182 |
173 |
181 |
-0.5% |
|
Blended |
191 |
179 |
186 |
-2.4% |
|
|
|
|
For the year ended |
|
December 31, |
December 31, |
yoy |
|
2019 |
2020 |
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
276 |
241 |
-12.8% |
Manachised and franchised hotels |
224 |
204 |
-8.9% |
Blended |
234 |
210 |
-10.3% |
Occupancy rate (as a percentage) |
|
|
|
Leased and owned hotels |
87.0% |
68.9% |
-18.1p.p. |
Manachised and franchised hotels |
83.8% |
71.4% |
-12.4p.p. |
Blended |
84.4% |
71.0% |
-13.4p.p. |
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
240 |
166 |
-30.9% |
Manachised and franchised hotels |
188 |
146 |
-22.3% |
Blended |
198 |
149 |
-24.5% |
|
|
|
|
|
|
|
|
|
Same-hotel operational data by class |
|
|
|
|
|
|
|
|
Mature hotels in operation for more than 18 months
(excluding hotels under requisition) |
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofDecember 31, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
ended December 31, |
change |
ended December 31, |
change |
ended December 31, |
change |
|
2019 |
2020 |
2019 |
2020 |
|
2019 |
2020 |
|
2019 |
|
2020 |
|
(p.p.) |
Economy hotels |
2,651 |
2,651 |
162 |
151 |
-6.7 |
% |
185 |
178 |
-3.7 |
% |
87.6 |
% |
84.9 |
% |
-2.7 |
Leased and owned hotels |
412 |
412 |
184 |
167 |
-8.9 |
% |
210 |
199 |
-5.2 |
% |
87.7 |
% |
84.3 |
% |
-3.4 |
Manachised and franchised hotels |
2,239 |
2,239 |
157 |
147 |
-6.1 |
% |
179 |
173 |
-3.3 |
% |
87.5 |
% |
85.0 |
% |
-2.5 |
Midscale and upscale hotels |
1,225 |
1,225 |
266 |
243 |
-8.5 |
% |
322 |
311 |
-3.4 |
% |
82.5 |
% |
78.2 |
% |
-4.3 |
Leased and owned hotels |
190 |
190 |
327 |
272 |
-16.7 |
% |
392 |
365 |
-6.8 |
% |
83.4 |
% |
74.5 |
% |
-8.8 |
Manachised and franchised hotels |
1,035 |
1,035 |
250 |
236 |
-5.6 |
% |
303 |
298 |
-1.9 |
% |
82.3 |
% |
79.2 |
% |
-3.1 |
Total |
3,876 |
3,876 |
201 |
186 |
-7.6 |
% |
235 |
225 |
-3.9 |
% |
85.7 |
% |
82.4 |
% |
-3.3 |
|
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofDecember 31, |
For the year |
yoy |
For the year |
yoy |
For the year |
yoy |
|
ended December 31, |
change |
ended December 31, |
change |
ended December 31, |
change |
|
2019 |
2020 |
2019 |
2020 |
|
2019 |
2020 |
|
2019 |
|
2020 |
|
(p.p.) |
Economy hotels |
2,651 |
2,651 |
169 |
121 |
-28.8 |
% |
189 |
162 |
-14.1 |
% |
89.7 |
% |
74.3 |
% |
-15.4 |
Leased and owned hotels |
412 |
412 |
191 |
128 |
-32.8 |
% |
211 |
176 |
-16.4 |
% |
90.5 |
% |
72.8 |
% |
-17.7 |
Manachised and franchised hotels |
2,239 |
2,239 |
164 |
118 |
-27.7 |
% |
183 |
159 |
-13.4 |
% |
89.4 |
% |
74.7 |
% |
-14.8 |
Midscale and upscale hotels |
1,225 |
1,225 |
272 |
198 |
-27.0 |
% |
328 |
287 |
-12.4 |
% |
82.8 |
% |
69.0 |
% |
-13.8 |
Leased and owned hotels |
190 |
190 |
332 |
211 |
-36.4 |
% |
395 |
328 |
-17.0 |
% |
84.1 |
% |
64.5 |
% |
-19.7 |
Manachised and franchised hotels |
1,035 |
1,035 |
254 |
194 |
-23.4 |
% |
308 |
276 |
-10.3 |
% |
82.5 |
% |
70.4 |
% |
-12.1 |
Total |
3,876 |
3,876 |
205 |
148 |
-27.9 |
% |
234 |
204 |
-13.1 |
% |
87.3 |
% |
72.5 |
% |
-14.8 |
Operating Results:
Legacy-DH(4)
|
|
|
|
|
|
|
Number of hotels |
|
Number of rooms |
|
Unopened hotels in pipeline |
|
Opened in Q4 2020 |
Closedin Q4 2020 |
Net added in Q4 2020 |
As of December 31,
2020(5) |
|
As of December 31, 2020 |
|
As ofDecember 31, 2020 |
|
Leased hotels |
2 |
- |
2 |
72 |
|
13,371 |
|
26 |
Manachised and franchised hotels |
1 |
- |
1 |
48 |
|
10,656 |
|
12 |
Total |
3 |
- |
3 |
120 |
|
24,027 |
|
38 |
|
|
|
|
|
|
|
|
|
(4) Legacy-DH refers to DH.
(5) As of December 31, 2020, a total of 18 DH
brand hotels were temporarily closed due to COVID-19. |
|
|
|
|
For the quarter ended |
|
|
December 31, |
September 30, |
December 31, |
yoy |
|
2019 |
2020 |
2020 |
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
108 |
88 |
78 |
-27.2% |
Manachised and franchised hotels |
85 |
101 |
73 |
-13.7% |
Blended |
97 |
93 |
76 |
-21.5% |
Occupancy rate (as a percentage) |
|
|
|
Leased hotels |
73.3% |
38.2% |
20.9% |
-52.6p.p. |
Manachised and franchised hotels |
62.6% |
37.5% |
25.4% |
-37.2p.p. |
Blended |
68.0% |
37.9% |
22.5% |
-45.5p.p. |
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
79 |
34 |
16 |
-79.3% |
Manachised and franchised hotels |
53 |
38 |
19 |
-64.9% |
Blended |
66 |
35 |
17 |
-74.0% |
|
|
|
For the year ended |
|
December 31, |
December 31, |
yoy |
|
2019 |
2020 |
change |
Average daily room rate (in EUR) |
|
|
|
Leased hotels |
105 |
89 |
-14.8% |
Manachised and franchised hotels |
88 |
85 |
-3.2% |
Blended |
97 |
88 |
-9.9% |
Occupancy rate (as a percentage) |
|
|
Leased hotels |
72.8% |
33.9% |
-38.9p.p. |
Manachised and franchised hotels |
65.0% |
36.3% |
-28.7p.p. |
Blended |
69.1% |
34.8% |
-34.3p.p. |
RevPAR (in EUR) |
|
|
|
Leased hotels |
76 |
30 |
-60.4% |
Manachised and franchised hotels |
57 |
31 |
-45.8% |
Blended |
67 |
31 |
-54.6% |
Hotel Portfolio by Brand
|
|
|
As of December 31, 2020 |
|
Hotels |
Rooms |
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,376 |
361,435 |
1,192 |
HanTing Hotel |
2,780 |
254,106 |
597 |
Hi Inn |
439 |
25,282 |
91 |
Elan Hotel(6) |
938 |
58,753 |
448 |
Ibis Hotel |
205 |
21,633 |
47 |
Zleep Hotel |
14 |
1,661 |
9 |
Midscale and upscale hotels |
2,413 |
290,727 |
1,257 |
Ibis Styles Hotel |
69 |
7,992 |
22 |
Starway Hotel |
455 |
38,657 |
252 |
JI Hotel |
1,105 |
135,737 |
512 |
Orange Hotel |
320 |
36,167 |
174 |
Crystal Orange Hotel |
114 |
15,400 |
66 |
Manxin Hotel |
61 |
6,009 |
47 |
Madison Hotel |
22 |
2,950 |
42 |
Mercure Hotel |
104 |
17,486 |
61 |
Novotel Hotel |
12 |
3,387 |
14 |
Joya Hotel |
10 |
1,842 |
- |
Blossom House |
28 |
1,249 |
23 |
Grand Mercure Hotel |
7 |
1,485 |
7 |
Steigenberger Hotels & Resorts |
49 |
11,574 |
7 |
IntercityHotel(7) |
45 |
8,056 |
23 |
Maxx by Steigenberger(8) |
5 |
777 |
4 |
Jaz in the City |
2 |
424 |
2 |
Other partner hotels |
5 |
1,535 |
1 |
Total |
6,789 |
652,162 |
2,449 |
(6) As of December 31, 2020, 5 Ni Hao Hotels were
included in the operational hotel total for Elan Hotels and 74 Ni
Hao hotels were included in the pipeline total for Elan
Hotels.(7) As of December 31, 2020, 5 pipeline
hotels of IntercityHotel were in China.(8) As of
December 31, 2020, 3 pipeline hotels of Maxx by Steigenberger were
in China. |
__________________________________________________________1 Hotel
turnover refers to total transaction value of room and non-room
revenues from Huazhu hotels (i.e., leased and operated, manachised
and franchised hotels).2 The conversion of Renminbi (“RMB”) into
United States dollars (“US$”) is based on the exchange rate of
US$1.00=RMB6.5250 on December 31, 2020 as set forth in H.10
statistical release of the U.S. Federal Reserve Board and available
at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.3
Legacy-Huazhu refers to Huazhu and its subsidiaries, excluding DH.4
Legacy-DH refers to DH.
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