- 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 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 2019 | in Q2 2019 | in Q2 2019 | June 30, 2019 | in Q2 2019 | June 30, 2019 | |||||
| Leased and owned hotels | 8 | (10 | ) | (2 | ) | 696 | (587 | ) | 87,179 | |
| Manachised and franchised hotels | 303 | (32 | ) | 271 | 3,969 | 24,269 | 376,117 | |||
| Total | 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 operation | Number of hotels in pipeline | |
| Economy hotels | 2,990 | 433 |
| Leased and owned hotels | 435 | 2 |
| Manachised and franchised hotels | 2,555 | 431 |
| Midscale and upscale hotels | 1,675 | 1,120 |
| Leased and owned hotels | 261 | 53 |
| Manachised and franchised hotels | 1,414 | 1,067 |
| Total | 4,665 | 1,553 |
Operating Metrics
| For the quarter ended | ||||||||
| June 30, | March 31, | June 30, | yoy | |||||
| 2018 | 2019 | 2019 | change | |||||
| Average daily room rate (in RMB) | ||||||||
| Leased and owned hotels | 270 | 258 | 281 | 4.3 | % | |||
| Manachised hotels | 212 | 210 | 224 | 5.8 | % | |||
| Franchised hotels | 248 | 237 | 246 | -0.7 | % | |||
| Blended | 226 | 221 | 236 | 4.4 | % | |||
| Occupancy rate (as a percentage) | ||||||||
| Leased and owned hotels | 91.4 | % | 83.6 | % | 89.4 | % | -1.9pp | |
| Manachised hotels | 89.8 | % | 80.5 | % | 87.1 | % | -2.8pp | |
| Franchised hotels | 78.7 | % | 68.6 | % | 75.1 | % | -3.6pp | |
| Blended | 89.6 | % | 80.6 | % | 86.9 | % | -2.7pp | |
| RevPAR (in RMB) | ||||||||
| Leased and owned hotels | 246 | 216 | 252 | 2.1 | % | |||
| Manachised hotels | 190 | 169 | 195 | 2.5 | % | |||
| Franchised hotels | 195 | 162 | 185 | -5.2 | % | |||
| Blended | 203 | 178 | 206 | 1.3 | % | |||
Business Update by Segment
| Hotel breakdown by brand | |||
| Number of hotels in operation | |||
| Net added | As of | ||
| in Q2 2019 | June 30, 2019 | ||
| Economy hotels | 74 | 2,990 | |
| HanTing Hotel | 28 | 2,331 | |
| Hi Inn | 16 | 415 | |
| Elan Hotel | 37 | 244 | |
| Orange Hotel(2) | (7 | ) | 0 |
| Midscale and upscale hotels | 195 | 1,675 | |
| JI Hotel | 55 | 666 | |
| Starway Hotel | 35 | 265 | |
| Joya Hotel | 0 | 6 | |
| Manxin Hotels & Resorts | 7 | 35 | |
| HanTing Premium Hotel | 38 | 129 | |
| Ibis Hotel | 10 | 159 | |
| Ibis Styles Hotel | 7 | 44 | |
| Mercure Hotel | 7 | 52 | |
| Novotel Hotel | 2 | 9 | |
| Grand Mercure | 1 | 8 | |
| Orange Select | 27 | 216 | |
| Crystal Orange | 6 | 66 | |
| Blossom Hill | 0 | 20 | |
| Total | 269 | 4,665 | |
| (2) Orange Hotel was rebranded as Orange Select in Q2 2019. | |||
| Same-hotel operational data by segment | |||||||||||||||
| Number of hotels in operation | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
| As of June 30, | For the quarter ended June 30, | For the quarter ended June 30, | For the quarter ended June 30, | ||||||||||||
| yoy change | yoy change | yoy change (p.p.) | |||||||||||||
| 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | ||||||||
| Economy hotels | 2,489 | 2,489 | 175 | 171 | -2.0 | % | 185 | 187 | 0.9 | % | 94.3 | % | 91.6 | % | -2.7 |
| Leased hotels | 424 | 424 | 189 | 191 | 0.6 | % | 202 | 206 | 2.1 | % | 94.0 | % | 92.7 | % | -1.4 |
| Manachised and franchised hotels | 2,065 | 2,065 | 171 | 166 | -2.7 | % | 181 | 182 | 0.6 | % | 94.4 | % | 91.3 | % | -3.0 |
| Midscale and upscale hotels | 788 | 788 | 278 | 272 | -2.4 | % | 325 | 323 | -0.7 | % | 85.5 | % | 84.1 | % | -1.4 |
| Leased and owned hotels | 179 | 179 | 346 | 334 | -3.5 | % | 392 | 383 | -2.2 | % | 88.5 | % | 87.3 | % | -1.2 |
| Manachised and franchised hotels | 609 | 609 | 251 | 247 | -1.8 | % | 298 | 298 | 0.0 | % | 84.3 | % | 82,8 | % | -1.5 |
| Total | 3,277 | 3,277 | 206 | 202 | -2.1 | % | 225 | 226 | 0.4 | % | 91.7 | % | 89.3 | % | -2.3 |
About Huazhu Group Limited
Huazhu 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 Information
Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@huazhu.com
http://ir.huazhu.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
