Huazhu Group Limited Announces Preliminary Results for Hotel Operations  in the Third Quarter of 2019

10/16, 8:00 AM (Source: GlobeNewswire)
  • Net revenue for 2019 Q3 is expected to increase by 10%-11% year-over-year, in line with guidance.
  • Our unopened hotel pipeline further accelerated to an historical high of 1,736 hotels as of September 30, 2019.

SHANGHAI, China, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu” or “our”), a leading and fast-growing multi-brand hotel group in China, today announced preliminary results for hotel operations in the third quarter ended September 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 Q3 2019in Q3 2019in Q3 2019September 30, 2019 in Q3 2019September 30, 2019
Leased and owned hotels13(12)1697 1,02788,206
Manachised and franchised hotels535(50)4854,454 40,091416,208
Total  548   (62)  486   5,151    41,118   504,414
(1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q3 2019, 4 hotels were temporarily closed for brand upgrades.
        


 As of September 30, 2019
 Number of hotels in operationUnopened hotels in pipeline
Economy hotels3,204546
Leased and owned hotels4251
Manachised and franchised hotels2,779545
Midscale and upscale hotels1,9471,190
Leased and owned hotels27251
Manachised and franchised hotels1,6751,139
Total5,1511,736
   



Operating Metrics

 For the quarter ended 
 September 30,June 30,September 30,yoy
 2018 2019 2019 change
Average daily room rate  (in RMB)   
Leased and owned hotels279 281 288 3.1%
Manachised and franchised hotels228 225 235 3.4%
Blended239 236 245 2.6%
Occupancy rate (as a percentage)    
Leased and owned hotels92.0%89.4%90.0%-2.0pp
Manachised and franchised hotels90.4%86.3%87.2%-3.2pp
Blended90.7%86.9%87.7%-3.1pp
RevPAR  (in RMB)    
Leased and owned hotels257 252 259 0.8%
Manachised and franchised hotels206 194 205 -0.3%
Blended217 206 215 -0.8%
     

Business Update by Segment

Hotel portfolio by brand 
   
 Number of hotels in operation
 Net added  As of 
 in Q3 2019September 30, 2019
Economy hotels214 3,204
HanTing Hotel502,381
Hi Inn35450
Elan Hotel129373
Midscale and upscale hotels272 1,947
HanTing Premium Hotel51180
Ibis Hotel20179
Ibis Styles Hotel650
Starway Hotel52317
JI Hotel93759
Orange Select Hotel17233
Crystal Orange Hotel1177
Manxin Hotels & Resorts439
Madison Hotel55
Mercure Hotel1163
Novotel Hotel09
Grand Madison Hotel11
Joya Hotel06
Vue Hotels & Resorts121
Grand Mercure Hotel08
Total  486   5,151
   


             
Same-hotel operational data by segment         
 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy 
 As of
September 30,
For the quarter ended
yoyFor the quarter ended
yoyFor the quarter ended
yoy 
 September 30,change  September 30,change  September 30,  change  
 2018201920182019 20182019 2018 2019   (p.p.) 
Economy hotels2,5002,500186179-3.7%196194-0.7%95.2%92.2%-3.0 
Leased and owned hotels414414200197-1.6%2112120.6%95.0%92.9%-2.0 
Manachised and franchised hotels2,0862,086182175-4.3%192190-1.0%95.3%92.1%-3.2 
Midscale and upscale hotels861861289278-3.9%332325-2.2%87.1%85.6%-1.5 
Leased and owned hotels184184355337-5.3%396382-3.5%89.8%88.1%-1.7 
Manachised and franchised hotels677677265257-3.2%308303-1.5%86.1%84.7%-1.5 
Total3,3613,361219211-3.8%236234-1.1%92.6%90.1%-2.5 
             


About Huazhu Group Limited

Huazhu Group Limited is a leading hotel operator and franchisor. As of September 30, 2019, Huazhu operated 5,151 hotels with 504,414 rooms in operation. Huazhu’s brands include Hi Inn, Elan Hotel, HanTing Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel, Orange Hotel Select, Crystal Orange Hotel, Manxin Hotels & Resorts, Joya Hotel, and Vue Hotels & Resorts. Huazhu also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in the pan-China region.

Huazhu’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, Huazhu directly operates hotels typically located on leased or owned properties. Under the manachise model, Huazhu manages manachised hotels through the on-site hotel managers Huazhu appoints and collects fees from franchisees. Under the franchise model, Huazhu provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. Huazhu applies a consistent standard and platform across all of its hotels. As of September 30, 2019, Huazhu operates 17 percent of its hotel rooms under lease and ownership model, and 83 percent under manachise and franchise models.

For more information, please visit Huazhu’s website: http://ir.huazhu.com.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; the economic conditions of China; the regulatory environment in China; our ability to attract and retain customers and leverage our brands; trends and competition in the lodging industry; the expected growth of demand for lodging in China; and other factors and risks detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results.

Huazhu undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contact Information
Huazhu Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com

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