Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Third Quarter of 2021
October 27 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 third quarter (“Q3 2021”) ended
September 30, 2021.
COVID-19 update For our
Legacy-Huazhu business, our RevPAR recovery momentum resumed
quickly in early July. Since late July, however, the spread of the
Delta variant of COVID-19 from Nanjing to several provinces and
cities resulted in the relevant governmental authorities imposing a
new round of strict travelling restrictions, and the blended RevPAR
of Legacy-Huazhu in August dropped significantly to only 54% of the
2019 level. After the Delta variant of COVID-19 in Nanjing became
largely contained in early September, the monthly blended RevPAR of
Legacy-Huazhu continued to recover, reaching approximately 92% of
the 2019 level. However, with the relatively small-scale outbreak
occurred in Fujian province in mid-September, the relevant
governmental authorities again imposed strict travelling
restrictions, especially for students, during the “Golden Week” in
celebration of the National Day Holidays. As a result, the blended
RevPAR of Legacy-Huazhu during the Golden Week recovered to only
approximately 82% of the 2019 level. Nevertheless, RevPAR recovery
in the second week of October resumed to close to 90% of the 2019
level, mainly driven by the rebound of business travelling. In
addition, despite the uncertainty of the COVID-19 situation, we
made significant progress in upscale hotel penetration and signed
up over 20 upscale hotels in early October through our joint
venture with Sunac.
Steigenberger Hotels AG and its subsidiaries
(“DH”) observed continued recovery since the first lockdown in
November 2020, along with the rollout of vaccination campaign in
Germany. As of October 25th, 2021, approximately 69% of the German
population have received at least one dose of vaccine and
approximately 66% of the population are fully vaccinated. During
the summer holiday season, the recovery of hotel demand was
encouraging due to the strong leisure demand. After the summer
holiday, the recovery of DH hotels’ RevPAR remained resilient,
mainly driven by the business demand. For the third quarter of
2021, the occupancy rate of DH hotels’ reached approximately 49%
and blended RevPAR reached approximately 65% of the 2019 level.
Meanwhile, DH continued to implement further cost reduction and
cash flow management measures, especially regarding personnel and
lease costs.
Operating Results:
Legacy-Huazhu(1)
|
Number of hotels |
|
Number of rooms |
|
Opened in Q3 2021 |
Closed
(2)in Q3
2021 |
Net added in Q3 2021 |
As of September 30, 2021
(3) |
|
As of September 30, 2021 |
|
|
Leased and owned hotels |
2 |
(14 |
) |
(12 |
) |
663 |
|
91,609 |
Manachised and franchised hotels |
479 |
(126 |
) |
353 |
|
6,682 |
|
607,059 |
Total |
481 |
(140 |
) |
341 |
|
7,345 |
|
698,668 |
(1) Legacy-Huazhu refers to Huazhu and its
subsidiaries, excluding DH.(2) The reasons for
hotel closures mainly included non-compliance with our brand
standards, operating losses, and property-related issues. In Q3
2021, we temporarily closed 18 hotels for brand upgrade and
business model change purposes.(3) As of September
30, 2021, 120 hotels were requisitioned by governmental
authorities. |
|
|
|
As of September 30, 2021 |
|
Number of hotels |
Unopened hotels in pipeline |
Economy hotels |
4,621 |
1,374 |
Leased and owned hotels |
404 |
3 |
Manachised and franchised hotels |
4,217 |
1,371 |
Midscale and upscale hotels |
2,724 |
1,414 |
Leased and owned hotels |
259 |
14 |
Manachised and franchised hotels |
2,465 |
1,400 |
Total |
7,345 |
2,788 |
|
Operational hotels excluding hotels under
requisition |
|
For the quarter ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
yoy |
|
2020 |
|
2021 |
|
2021 |
|
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
255 |
|
311 |
|
296 |
|
16.0 |
% |
Manachised and franchised hotels |
211 |
|
246 |
|
238 |
|
12.8 |
% |
Blended |
218 |
|
255 |
|
246 |
|
12.8 |
% |
Occupancy Rate (as a percentage) |
|
|
|
Leased and owned hotels |
82.9 |
% |
81.1 |
% |
69.7 |
% |
-13.1p.p. |
|
Manachised and franchised hotels |
81.8 |
% |
82.5 |
% |
72.2 |
% |
-9.6p.p. |
|
Blended |
82.0 |
% |
82.3 |
% |
71.9 |
% |
-10.1p.p. |
|
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
211 |
|
252 |
|
206 |
|
-2.4 |
% |
Manachised and franchised hotels |
173 |
|
203 |
|
172 |
|
-0.5 |
% |
Blended |
179 |
|
210 |
|
177 |
|
-1.1 |
% |
|
For the quarter ended |
|
September 30, |
|
September 30, |
|
yoy |
|
2019 |
|
2021 |
|
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
288 |
|
296 |
|
2.7 |
% |
Manachised and franchised hotels |
235 |
|
238 |
|
1.2 |
% |
Blended |
245 |
|
246 |
|
0.3 |
% |
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
90.0 |
% |
69.7 |
% |
-20.3p.p. |
|
Manachised and franchised hotels |
87.2 |
% |
72.2 |
% |
-15.0p.p. |
|
Blended |
87.7 |
% |
71.9 |
% |
-15.8p.p. |
|
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
259 |
|
206 |
|
-20.4 |
% |
Manachised and franchised hotels |
205 |
|
172 |
|
-16.2 |
% |
Blended |
215 |
|
177 |
|
-17.8 |
% |
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 ofSeptember 30, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
ended September 30, |
change |
ended September 30, |
change |
ended September 30, |
change |
|
2020 |
2021 |
2020 |
2021 |
|
2020 |
2021 |
|
2020 |
|
2021 |
|
(p.p.) |
Economy hotels |
3,157 |
3,157 |
147 |
141 |
-3.9 |
% |
170 |
187 |
10.3 |
% |
86.6 |
% |
75.4 |
% |
-11.2 |
Leased and owned hotels |
398 |
398 |
162 |
157 |
-3.4 |
% |
187 |
213 |
14.2 |
% |
87.0 |
% |
73.6 |
% |
-13.4 |
Manachised and franchised hotels |
2,759 |
2,759 |
144 |
138 |
-4.1 |
% |
166 |
182 |
9.5 |
% |
86.5 |
% |
75.8 |
% |
-10.7 |
Midscale and upscale hotels |
1,646 |
1,646 |
244 |
225 |
-7.9 |
% |
301 |
323 |
7.2 |
% |
80.9 |
% |
69.6 |
% |
-11.3 |
Leased and owned hotels |
218 |
218 |
280 |
257 |
-8.3 |
% |
358 |
392 |
9.5 |
% |
78.4 |
% |
65.7 |
% |
-12.7 |
Manachised and franchised hotels |
1,428 |
1,428 |
236 |
217 |
-7.8 |
% |
289 |
309 |
6.7 |
% |
81.5 |
% |
70.4 |
% |
-11.0 |
Total |
4,803 |
4,803 |
187 |
176 |
-5.9 |
% |
222 |
241 |
8.7 |
% |
84.2 |
% |
73.0 |
% |
-11.3 |
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofSeptember 30, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
ended September 30, |
change |
ended September 30, |
change |
ended September 30, |
change |
|
2019 |
2021 |
2019 |
2021 |
|
2019 |
2021 |
|
2019 |
|
2021 |
|
(p.p.) |
Economy hotels |
2,364 |
2,364 |
187 |
141 |
-24.5 |
% |
201 |
187 |
-6.7 |
% |
93.2 |
% |
75.4 |
% |
-17.8 |
Leased and owned hotels |
385 |
385 |
209 |
154 |
-26.2 |
% |
224 |
210 |
-6.2 |
% |
93.5 |
% |
73.5 |
% |
-19.9 |
Manachised and franchised hotels |
1,979 |
1,979 |
181 |
138 |
-24.1 |
% |
195 |
181 |
-6.9 |
% |
93.1 |
% |
75.9 |
% |
-17.2 |
Midscale and upscale hotels |
1,057 |
1,057 |
293 |
219 |
-25.4 |
% |
340 |
321 |
-5.6 |
% |
86.4 |
% |
68.2 |
% |
-18.1 |
Leased and owned hotels |
187 |
187 |
355 |
245 |
-31.0 |
% |
406 |
379 |
-6.7 |
% |
87.3 |
% |
64.5 |
% |
-22.8 |
Manachised and franchised hotels |
870 |
870 |
275 |
211 |
-23.4 |
% |
320 |
304 |
-4.9 |
% |
86.1 |
% |
69.4 |
% |
-16.7 |
Total |
3,421 |
3,421 |
226 |
170 |
-24.8 |
% |
249 |
234 |
-6.3 |
% |
90.7 |
% |
72.7 |
% |
-17.9 |
Operating Results:
Legacy-DH(4)
|
Number of hotels |
|
Number of rooms |
|
Unopened hotels in pipeline |
|
Opened in Q3 2021 |
Closedin Q3 2021 |
Net added in Q3 2021 |
As of September 30,
2021(5) |
|
As of September 30, 2021 |
|
As ofSeptember 30, 2021 |
|
Leased hotels |
1 |
- |
|
1 |
|
75 |
|
14,002 |
|
28 |
Manachised and franchised hotels |
- |
(2 |
) |
(2 |
) |
46 |
|
10,313 |
|
11 |
Total |
1 |
(2 |
) |
(1 |
) |
121 |
|
24,315 |
|
39 |
(4) Legacy-DH refers to DH.
(5) As of September 30, 2021, a total of 4 DH
brand hotels were temporarily closed due to COVID-19. 1 hotel is
closed for renovation and 1 hotel due to flood damage. |
|
For the quarter ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
yoy |
|
2020 |
|
2021 |
|
2021 |
|
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
88 |
|
85 |
|
94 |
|
6.8 |
% |
Manachised and franchised hotels |
101 |
|
78 |
|
104 |
|
3.6 |
% |
Blended |
93 |
|
81 |
|
99 |
|
6.1 |
% |
Occupancy rate (as a percentage) |
|
|
|
|
Leased hotels |
38.2 |
% |
20.0 |
% |
48.0 |
% |
9.8p.p. |
|
Managed and franchised hotels |
37.5 |
% |
30.8 |
% |
49.4 |
% |
12.0p.p. |
|
Blended |
37.9 |
% |
24.4 |
% |
48.6 |
% |
10.7p.p. |
|
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
34 |
|
17 |
|
45 |
|
34.1 |
% |
Managed and franchised hotels |
38 |
|
24 |
|
52 |
|
36.7 |
% |
Blended |
35 |
|
20 |
|
48 |
|
35.9 |
% |
Hotel Portfolio by Brand
|
Total |
|
Hotels |
Rooms |
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,635 |
382,337 |
1,386 |
HanTing Hotel |
2,937 |
268,347 |
765 |
Hi Inn |
430 |
25,069 |
107 |
Elan Hotel(6) |
1,040 |
64,757 |
468 |
Ibis Hotel |
214 |
22,503 |
34 |
Zleep Hotels |
14 |
1,661 |
12 |
Midscale hotels |
2,288 |
256,146 |
1,099 |
Ibis Styles Hotel |
78 |
8,299 |
17 |
Starway Hotel |
496 |
41,913 |
280 |
JI Hotel |
1,294 |
158,008 |
588 |
Orange Hotel |
390 |
43,146 |
209 |
CitiGO Hotel |
30 |
4,780 |
5 |
Upper midscale hotels |
429 |
63,959 |
276 |
Crystal Orange Hotel |
137 |
18,406 |
67 |
Manxin Hotel |
76 |
7,416 |
63 |
Madison Hotel |
35 |
5,247 |
54 |
Mercure Hotel |
119 |
20,561 |
52 |
Novotel Hotel |
14 |
3,723 |
16 |
IntercityHotel(7) |
48 |
8,606 |
24 |
Upscale hotels |
107 |
18,383 |
62 |
Jaz in the City |
3 |
587 |
1 |
Joya Hotel |
9 |
1,760 |
0 |
Blossom House |
32 |
1,579 |
35 |
Grand Mercure Hotel |
7 |
1,485 |
6 |
Steigenberger Hotels & Resorts(8) |
50 |
12,013 |
14 |
MAXX (9) |
6 |
959 |
6 |
Others |
7 |
2,158 |
4 |
Other hotels(10) |
7 |
2,158 |
4 |
Total |
7,466 |
722,983 |
2,827 |
(6) As of September 30, 2021, 46
Ni Hao Hotels were included in the operational hotel for Elan
Hotels and 145 Ni Hao hotels were included in the pipeline for Elan
Hotels.(7) As of September 30, 2021, 2 operational
hotels and 6 pipeline hotels of IntercityHotel were in
China.(8) As of September 30, 2021, 1 operational
hotel and 7 pipeline hotels of Steigenberger Hotels & Resorts
were in China.(9) As of September 30, 2021, 1
operational hotel and 5 pipeline hotels of MAXX were in
China.(10) 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
September 30, 2021, Huazhu operated 7,466 hotels with 722,983
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 September 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
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