Huazhu Group Limited Announces Its Preliminary Results for Hotel Operation in the Second Quarter of 2019
Net revenue for 2019 Q2 is expected to increase by 13%-15% year-over-year, in-line with guidance;Our hotel pipeline further accelerated to historical high of 1,553 at 2019 Q2. SHANGHAI, China, July 16, 2019 (GLOBE NEWSWIRE) -- Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu”, or the “Company”), a leading and fast-growing multi-brand hotel group in China, today announced its preliminary results for the hotel operation in the second quarter ended June 30, 2019. Hotel Development Number of hotels in operation Number of rooms in operation Opened Closed (1)Net added As of Net added As of in Q2 2019in Q2 2019in Q2 2019June 30, 2019 in Q2 2019June 30, 2019Leased and owned hotels8(10)(2)696 (587)87,179Manachised and franchised hotels303(32)271 3,969 24,269 376,117Total 311 (42) 269 4,665 23,682 463,296 (1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q2 2019, 20 hotels were temporarily closed for brand upgrade. As of June 30, 2019 Number of hotels in operationNumber of hotels in pipeline Economy hotels2,990433Leased and owned hotels4352Manachised and franchised hotels2,555431Midscale and upscale hotels1,6751,120Leased and owned hotels26153Manachised and franchised hotels1,4141,067Total4,6651,553 Operating Metrics For the quarter ended June 30,March 31,June 30,yoy 201820192019changeAverage daily room rate (in RMB) Leased and owned hotels270 258 281 4.3%Manachised hotels212 210 224 5.8%Franchised hotels248 237 246 -0.7%Blended226 221 236 4.4%Occupancy rate (as a percentage) Leased and owned hotels91.4%83.6%89.4%-1.9ppManachised hotels89.8%80.5%87.1%-2.8ppFranchised hotels78.7%68.6%75.1%-3.6ppBlended89.6%80.6%86.9%-2.7ppRevPAR (in RMB) Leased and owned hotels246 216 252 2.1%Manachised hotels190 169 195 2.5%Franchised hotels195 162 185 -5.2%Blended203 178 206 1.3% Business Update by Segment Hotel breakdown by brand Number of hotels in operation Net added As of in Q2 2019June 30, 2019Economy hotels74 2,990 HanTing Hotel28 2,331Hi Inn16 415Elan Hotel37 244Orange Hotel(2)(7)0Midscale and upscale hotels195 1,675 JI Hotel55 666Starway Hotel35 265Joya Hotel0 6Manxin Hotels & Resorts7 35HanTing Premium Hotel38 129Ibis Hotel10 159Ibis Styles Hotel7 44Mercure Hotel7 52Novotel Hotel2 9Grand Mercure1 8Orange Select27 216Crystal Orange6 66Blossom Hill0 20Total 269 4,665 (2) Orange Hotel was rebranded as Orange Select in Q2 2019. Same-hotel operational data by segment Number of hotels in operationSame-hotel RevPAR Same-hotel ADR Same-hotel Occupancy As ofJune 30,For the quarter endedJune 30, For the quarter endedJune 30, For the quarter endedJune 30, yoychangeyoy changeyoy change (p.p.) 2018201920182019201820192018 2019 Economy hotels2,4892,489175171-2.0%1851870.9%94.3%91.6%-2.7Leased hotels4244241891910.6%2022062.1%94.0%92.7%-1.4Manachised and franchised hotels2,0652,065171166-2.7%1811820.6%94.4%91.3%-3.0Midscale and upscale hotels788788278272-2.4%325323-0.7%85.5%84.1%-1.4Leased and owned hotels179179346334-3.5%392383-2.2%88.5%87.3%-1.2Manachised and franchised hotels609609251247-1.8%2982980.0%84.3%82,8%-1.5Total3,2773,277206202-2.1%2252260.4%91.7%89.3%-2.3 About Huazhu Group LimitedHuazhu Group Limited is a leading hotel operator and franchisor in China. As of June 30, 2019, the Company had 4,665 hotels or 463,296 rooms in operation. With a primary focus on economy and midscale hotel segments, Huazhu’s brands include Hi Inn, Elan Hotel, HanTing Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel, Manxin Hotel, Joya Hotel, Orange Hotel Select, Crystal Orange Hotel and Blossom Hill. The Company also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in Pan-China region. The Company's business includes leased and owned, manachised and franchised models. Under the lease and ownership model, the Company directly operates hotels typically located on leased or owned properties. Under the manachise model, the Company manages manachised hotels through the on-site hotel managers it appoints and collects fees from franchisees. Under the franchise model, the Company provides training, reservation and support services to the franchised hotels and collects fees from franchisees but does not appoint on-site hotel managers. The Company applies a consistent standard and platform across all of its hotels. As of June 30, 2019, Huazhu Group operates 19 percent of its hotel rooms under lease and ownership model, 81 percent under manachise and franchise models. For more information, please visit the Company’s website: http://ir.huazhu.com. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; the economic conditions of China; the regulatory environment in China; our ability to attract customers and leverage our brand; trends and competition in the lodging industry; the expected growth of the lodging market in China; and other factors and risks detailed in our filings with the 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. The Company 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: [email protected]://ir.huazhu.com
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