Market Overview

Huazhu Group Limited Announces Its Preliminary Results for Hotel Operation in the First Quarter of 2019

Share:

SHANGHAI, China, April 18, 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 first quarter ended March 31, 2019.

Operating Metrics

     
  For the quarter ended   
  March 31, December 31, March 31, yoy
  2018 2018 2019 change
Average daily room rate  (in RMB)      
  Leased and owned hotels 243 275 258 6.3%
  Manachised hotels 194 216 210 8.0%
  Franchised hotels 228 248 237 3.6%
  Blended 207 230 221 6.9%
Occupancy rate (as a percentage)      
  Leased and owned hotels 85.6% 86.7% 83.6% -2.0pp
  Manachised hotels 84.0% 85.5% 80.5% -3.5pp
  Franchised hotels 69.8% 74.5% 68.6% -1.2pp
  Blended 83.7% 85.2% 80.6% -3.1pp
RevPAR  (in RMB)        
  Leased and owned hotels 208 238 216 3.8%
  Manachised hotels 163 185 169 3.5%
  Franchised hotels 159 185 162 1.8%
  Blended 173 196 178 2.9%
         


Same-hotel operational data (Like-for-like performance for hotels opened for at least 18 months during the current quarter)  
  As of and for the quarter ended  
  March 31, yoy
  2018 2019 change
Total    3,189   3,189  
  Leased and owned hotels   608   608  
  Manachised and franchised hotels   2,581   2,581  
Occupancy rate (as a percentage) 86.1% 83.4% -2.8pp
Average daily room rate (in RMB) 205 211 2.9%
RevPAR (in RMB) 176 176 -0.4%
Note: Excluding hotel rooms under renovations for product upgrades, the normalized same-hotel RevPAR growth would be flat (0).


Hotel Development 

       
  Number of hotels in operation   Number of rooms in operation
  Opened  Closed (1) Net added  As of    Net added  As of 
  in Q1 2019 in Q1 2019 in Q1 2019 March 31, 2019   in Q1 2019 March 31, 2019
Leased and owned hotels   11   (12)   (1)   698     979   87,766
Manachised and franchised hotels   215   (48)   167   3,698     15,888   351,848
Total   226   (60)   166   4,396     16,867   439,614
(1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q1 2019, eight hotels were temporarily closed for brand upgrade. 

 

   
  Number of hotels in pipeline
as of March 31, 2019
Leased hotels   50
Manachised and franchised hotels   1,261
Total(2)   1,311
(2) Including 202 hotels under brands of ibis, ibis Styles, Mercure, Grand Mercure and Novotel; 148 hotels under brands of Orange Select and Crystal Orange,22 hotels under brand of Blossom Hill.


Business Update by Segment 

Hotel breakdown by segment  
   
  Number of hotels in operation
  Net added  As of 
  in Q1 2019 March 31, 2019
Economy hotels 24 2,916
  HanTing Hotel 20 2,303
  Hi Inn (3) 399
  Elan Hotel 7 207
  Orange Hotel 0 7
Midscale and upscale hotels 142 1,480
  JI Hotel 58 611
  Starway Hotel 18 230
  Joya Hotel 0 6
  Manxin Hotels & Resorts 4 28
  HanTing Premium Hotel 17 91
  Ibis Hotel 12 149
  Ibis Styles Hotel  3 37
  Mercure Hotel 6 45
  Novotel Hotel 0 7
  Grand Mercure  1 7
  Orange Select 17 189
  Crystal Orange 4 60
  Blossom Hill 2 20
Total   166   4,396

 


                     
Same-hotel operational data by segment                    
  Number of hotels in operation Same-hotel RevPAR   Same-hotel ADR   Same-hotel Occupancy  
  As of For the quarter ended   For the quarter ended   For the quarter ended  
  March 31, March 31, yoy
change
March 31, yoy
change
March 31, yoy
change
(p.p.)
  2018 2019 2018 2019 2018 2019 2018 2019
Economy hotels   2,481   2,481   152   152 0.1%   170   176 3.7% 89% 86% (3.1)
  Leased hotels   439   439   161   167 4.0%   181   191 5.4% 89% 88% (1.1)
  Manachised and franchised hotels   2,042   2,042   149   148 -1.1%   167   172 3.1% 89% 86% (3.6)
Midscale and upscale hotels   708   708   240   237 -1.1%   306   310 1.3% 78% 76% (1.9)
  Leased and owned hotels   169   169   295   287 -2.8%   360   362 0.4% 82% 79% (2.6)
  Manachised and franchised hotels   539   539   216   216 -0.1%   281   286 2.0% 77% 75% (1.6)
Total   3,189   3,189   176   176 -0.4%   205   211 2.9% 86% 83% (2.8)
                       


About Huazhu Group Limited
Huazhu Group Limited is a leading hotel operator and franchisor in China. As of March 31, 2019, the Company had 4,396 hotels or 439,614 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, Crystal Orange Hotel, Orange Hotel Select, 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 March 31, 2019, Huazhu Group operates 20 percent of its hotel rooms under lease and ownership model, 80 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 Information
Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com

View Comments and Join the Discussion!