Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Second Quarter of 2021
July 22 2021 - 6:30AM
Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) (“Huazhu”, “we”
or “our”), a world-leading hotel group, today announced preliminary
results for hotel operations in the second quarter (“Q2 2021”)
ended June 30, 2021.
COVID-19 update For our
Legacy-Huazhu business, the RevPAR in 2Q2021 recovered to 102% of
2019, slightly below our previous expectation. RevPAR recovery in
June achieved 100%, slowing down from 106% in May. It was mainly
due to COVID-19 resurgence in Guangdong Province and traffic
control in Beijing for the celebration of centenary of the
Communist Party of China since late May. However, if excluding the
impact of Guangdong Province and Beijing, our RevPAR recovery was
on track. In July, with the COVID-19 resurgence in Guangdong
effectively contained and relaxation of travel restriction in
Beijing, our RevPAR recovery resumed.
Steigenberger Hotels AG and its subsidiaries
(“DH”) saw an initial recovery of hotel demand along with
vaccination process in Germany since the first lockdown in November
2020. As of July 16th, 2021, almost 60% of Germans have received at
least one shot of vaccine. In July, the recovery continued with
occupancy rate reaching 35%. But the recovery is still uncertain
given that the recent news shows there is possibly another upcoming
wave of delta variant of COVID-19 resurgence in European
countries.
Operating Results:
Legacy-Huazhu(1)
|
Number of hotels |
|
Number of rooms |
|
Opened in Q2 2021 |
Closed
(2)in Q2
2021 |
Net added in Q2 2021 |
As of June 30, 2021
(3) |
|
As of June 30, 2021 |
|
|
Leased and owned hotels |
18 |
(7 |
) |
11 |
675 |
|
91,892 |
Manachised and franchised hotels |
381 |
(149 |
) |
232 |
6,329 |
|
575,778 |
Total |
399 |
(156 |
) |
243 |
7,004 |
|
667,670 |
|
|
|
|
|
|
|
|
(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 Q2
2021, we temporarily closed 8 hotels for brand upgrade and business
model change purposes.(3) As of June 30, 2021, 32
hotels were requisitioned by governmental authorities. |
|
As of June 30, 2021 |
|
Number of hotels |
Unopened hotels in pipeline |
Economy hotels |
4,451 |
1,295 |
Leased and owned hotels |
417 |
3 |
Manachised and franchised hotels |
4,034 |
1,292 |
Midscale and upscale hotels |
2,553 |
1,401 |
Leased and owned hotels |
258 |
13 |
Manachised and franchised hotels |
2,295 |
1,388 |
Total |
7,004 |
2,696 |
Operational hotels excluding hotels under
requisition |
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
yoy |
|
2020 |
2021 |
2021 |
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
205 |
243 |
311 |
51.8% |
Manachised and franchised hotels |
181 |
203 |
246 |
36.2% |
Blended |
185 |
209 |
255 |
38.3% |
Occupancy rate (as a percentage) |
|
|
|
Leased and owned hotels |
67.4% |
64.0% |
81.1% |
13.7 p.p. |
Manachised and franchised hotels |
69.1% |
66.6% |
82.5% |
13.4 p.p. |
Blended |
68.8% |
66.2% |
82.3% |
13.5 p.p. |
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
138 |
156 |
252 |
82.7% |
Manachised and franchised hotels |
125 |
135 |
203 |
62.7% |
Blended |
127 |
138 |
210 |
65.5% |
|
For the quarter ended |
|
June 30, |
June 30, |
yoy |
|
2019 |
2021 |
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
281 |
311 |
10.4% |
Manachised and franchised hotels |
225 |
246 |
9.2% |
Blended |
236 |
255 |
7.9% |
Occupancy rate (as a percentage) |
|
|
Leased and owned hotels |
89.4% |
81.1% |
-8.4p.p. |
Manachised and franchised hotels |
86.3% |
82.5% |
-3.8p.p. |
Blended |
86.9% |
82.3% |
-4.6p.p. |
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
252 |
252 |
0.1% |
Manachised and franchised hotels |
194 |
203 |
4.4% |
Blended |
206 |
210 |
2.2% |
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 ofJune 30, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
ended June 30, |
change |
ended June 30, |
change |
ended June 30, |
change |
|
2020 |
2021 |
2020 |
2021 |
|
2020 |
2021 |
|
2020 |
|
2021 |
|
(p.p.) |
Economy hotels |
3,017 |
3,017 |
107 |
168 |
57.7 |
% |
146 |
196 |
34.4 |
% |
73.1 |
% |
85.8 |
% |
12.7 |
Leased and owned hotels |
408 |
408 |
109 |
191 |
75.7 |
% |
154 |
227 |
47.6 |
% |
70.8 |
% |
84.2 |
% |
13.5 |
Manachised and franchised hotels |
2,609 |
2,609 |
106 |
163 |
53.6 |
% |
144 |
189 |
31.3 |
% |
73.7 |
% |
86.2 |
% |
12.5 |
Midscale and upscale hotels |
1,520 |
1,520 |
172 |
272 |
57.8 |
% |
254 |
336 |
32.3 |
% |
68.0 |
% |
81.0 |
% |
13.1 |
Leased and owned hotels |
213 |
213 |
182 |
316 |
73.3 |
% |
285 |
405 |
42.3 |
% |
64.0 |
% |
77.9 |
% |
13.9 |
Manachised and franchised hotels |
1,307 |
1,307 |
170 |
262 |
54.1 |
% |
247 |
321 |
29.9 |
% |
68.9 |
% |
81.7 |
% |
12.8 |
Total |
4,537 |
4,537 |
133 |
210 |
58.1 |
% |
187 |
250 |
33.9 |
% |
71.1 |
% |
83.9 |
% |
12.8 |
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofJune 30, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
ended June 30, |
change |
ended June 30, |
change |
ended June 30, |
change |
|
2019 |
2021 |
2019 |
2021 |
|
2019 |
2021 |
|
2019 |
|
2021 |
|
(p.p.) |
Economy hotels |
2,308 |
2,308 |
179 |
168 |
-5.9 |
% |
193 |
195 |
1.2 |
% |
92.5 |
% |
86.0 |
% |
-6.5 |
Leased and owned hotels |
392 |
392 |
202 |
187 |
-7.2 |
% |
217 |
223 |
2.9 |
% |
93.3 |
% |
84.1 |
% |
-9.2 |
Manachised and franchised hotels |
1,916 |
1,916 |
172 |
163 |
-5.6 |
% |
187 |
188 |
0.8 |
% |
92.3 |
% |
86.5 |
% |
-5.8 |
Midscale and upscale hotels |
931 |
931 |
285 |
269 |
-5.7 |
% |
337 |
338 |
0.1 |
% |
84.6 |
% |
79.7 |
% |
-4.9 |
Leased and owned hotels |
184 |
184 |
350 |
311 |
-11.1 |
% |
406 |
401 |
-1.4 |
% |
86.1 |
% |
77.7 |
% |
-8.5 |
Manachised and franchised hotels |
747 |
747 |
264 |
255 |
-3.3 |
% |
314 |
317 |
1.1 |
% |
84.1 |
% |
80.4 |
% |
-3.7 |
Total |
3,239 |
3,239 |
216 |
203 |
-5.7 |
% |
240 |
243 |
1.0 |
% |
89.7 |
% |
83.8 |
% |
-6.0 |
Operating Results:
Legacy-DH(4)
|
Number of hotels |
|
Number of rooms |
|
Unopened hotels in pipeline |
|
Opened in Q2 2021 |
Closedin Q2 2021 |
Net added in Q2 2021 |
As of June 30,
2021(5) |
|
As of June 30, 2021 |
|
As ofJune 30, 2021 |
|
Leased hotels |
1 |
- |
1 |
74 |
|
13,839 |
|
27 |
Manachised and franchised hotels |
1 |
- |
1 |
48 |
|
10,775 |
|
11 |
Total |
2 |
- |
2 |
122 |
|
24,614 |
|
38 |
|
|
|
|
|
|
|
|
|
(4) Legacy-DH refers to DH.
(5) As of June 30, 2021, a total of 5 DH brand
hotels were temporarily closed due to COVID-19, and 1 hotel was
closed for renovation. |
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
yoy |
|
2020 |
|
2021 |
|
2021 |
|
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
82.4 |
|
77.9 |
|
85.2 |
|
3.4 |
% |
Manachised and franchised hotels |
96.5 |
|
59.0 |
|
77.9 |
|
-19.3 |
% |
Blended |
86.5 |
|
68.5 |
|
81.5 |
|
-5.8 |
% |
Occupancy rate (as a percentage) |
|
|
|
|
Leased hotels |
18.7 |
% |
14.6 |
% |
20.0 |
% |
1.3 |
% |
Managed and franchised hotels |
17.3 |
% |
26.5 |
% |
30.8 |
% |
13.5 |
% |
Blended |
18.3 |
% |
18.8 |
% |
24.4 |
% |
6.1 |
% |
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
15.4 |
|
11.4 |
|
17.04 |
|
10.7 |
% |
Managed and franchised hotels |
16.7 |
|
15.6 |
|
24.01 |
|
43.5 |
% |
Blended |
15.8 |
|
12.9 |
|
19.85 |
|
25.6 |
% |
Hotel Portfolio by Brand
|
Total |
|
Hotels |
Rooms |
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,465 |
370,297 |
1,307 |
HanTing Hotel |
2,834 |
260,252 |
740 |
Hi Inn |
430 |
25,419 |
83 |
Elan Hotel(6) |
976 |
60,645 |
431 |
Ibis Hotel |
211 |
22,320 |
41 |
Zleep Hotels |
14 |
1,661 |
12 |
Midscale hotels |
2,146 |
241,370 |
1,121 |
Ibis Styles Hotel |
78 |
9,046 |
19 |
Starway Hotel |
477 |
39,524 |
279 |
JI Hotel |
1,203 |
148,008 |
616 |
Orange Hotel |
360 |
40,285 |
202 |
CitiGO Hotel(7) |
28 |
4,507 |
5 |
Upper midscale hotels |
408 |
61,350 |
250 |
Crystal Orange Hotel |
129 |
17,517 |
60 |
Manxin Hotel |
68 |
6,764 |
54 |
Madison Hotel |
31 |
4,745 |
40 |
Mercure Hotel |
117 |
19,786 |
57 |
Novotel Hotel |
13 |
3,579 |
17 |
IntercityHotel(8) |
48 |
8,535 |
20 |
Upscale hotels |
101 |
17,681 |
54 |
Joya Hotel |
9 |
1,760 |
0 |
Blossom House |
29 |
1,420 |
30 |
Grand Mercure Hotel |
7 |
1,485 |
6 |
Steigenberger Hotels & Resorts(9) |
51 |
12,239 |
12 |
MAXX (10) |
5 |
777 |
6 |
Jaz in the City |
2 |
424 |
2 |
Others |
6 |
1,586 |
2 |
Other hotels(11) |
6 |
1,586 |
2 |
Total |
7,126 |
692,284 |
2,734 |
(6) As of June 30, 2021, 17 Ni Hao
Hotels were included in the operational hotel for Elan Hotels and
111 Ni Hao hotels were included in the pipeline for Elan
Hotels.(7) We completed CitiGO acquisition in May
2021.(8) As of June 30, 2021, 2 operational hotels
and 4 pipeline hotels of IntercityHotel were in
China.(9) As of June 30, 2021, 1 operational hotel
and 5 pipeline hotels of Steigenberger Hotels & Resorts were in
China.(10) As of June 30, 2021, 5 pipeline hotels of MAXX were
in China.(11) Other hotels include other partner hotels and
other hotel brands in Yongle Huazhu Hotel & Resort Group
(excluding Steigenberger Hotels & Resorts and Blossom
House).
About Huazhu Group
LimitedOriginated in China, Huazhu Group Limited is a
world-leading hotel group. As of June 30, 2021, Huazhu
operated 7,126 hotels with 692,284 rooms in operation in 17
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, Ni Hao
Hotel and CitiGO 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
Hotels. 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 June 30, 2021, Huazhu operates 15 percent of its
hotel rooms under lease and ownership model, and 85 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 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