Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2020
January 22 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 fourth quarter (“Q4 2020”) and
the full year ended December 31, 2020.
Recovery continued in Q4
2020During Q4 2020, despite numerous recurrence of
COVID-19 in several cities and provinces in mainland China, such as
Shanghai, Chengdu, and Northeastern of China, our business
continued to recover, thanks to China’s more effective and precise
control of the COVID-19 pandemic. More importantly, we noticed that
travelling demand shows resilience and recovery in previously
affected cities started accelerating after adjusting down the risk
level in those cities (from mid-to-high risk to low risk). Hence,
in Q4 2020, Huazhu expects net revenues in China to be better than
our previous guidance.
Steigenberger Hotels AG and its subsidiaries
(“DH”) suffered from the second wave of COVID-19 outbreak in
European countries since late September 2020. The lock down period
in Germany extended to February 14, 2021. However, even with the
extension of the lock down period, the Q4 2020 DH net revenues
remains within our previous guidance. In addition, we are taking
further cost and cash flow measures, such as negotiating with
landlords to reduce our rental costs, reducing or eliminating
discretionary corporate spending and capital expenditures, etc. We
also actively sought new business opportunities in the government’s
fight against COVID-19, such as offering hotels to support
government for pandemic prevention and control.Operating
Results:
Legacy-Huazhu(1)
|
Number of hotels |
|
Number of rooms |
|
Opened in Q4 2020 |
Closed
(2)in Q4
2020 |
Net added in Q4 2020 |
As of December 31, 2020
(3) |
|
As of December 31, 2020 |
|
|
Leased and owned hotels |
4 |
(10) |
(6) |
681 |
|
90,942 |
Manachised and franchised hotels |
389 |
(104) |
285 |
5,988 |
|
537,193 |
Total |
393 |
(114) |
279 |
6,669 |
|
628,135 |
|
|
|
|
|
|
|
|
|
(1) Legacy-Huazhu refers to Huazhu and its
subsidiaries, excluding DH.(2) The reasons for
hotel closures mainly include non-compliance with our brand
standards, operating losses, and property-related issues. In Q4
2020, we temporarily closed 6 hotels for brand upgrade and business
model change purposes.(3) As of December 31, 2020,
74 hotels were requisitioned by governmental authorities. |
|
As of December 31, 2020 |
|
Number of hotels |
Unopened hotels in pipeline |
Economy hotels |
4,362 |
1,183 |
Leased and owned hotels |
438 |
4 |
Manachised and franchised hotels |
3,924 |
1,179 |
Midscale and upscale hotels |
2,307 |
1,228 |
Leased and owned hotels |
243 |
14 |
Manachised and franchised hotels |
2,064 |
1,214 |
Total |
6,669 |
2,411 |
|
Operational hotels (excluding hotels under
requisition) |
|
|
For the quarter ended |
|
|
|
December 31, |
September 30, |
December 31, |
yoy |
|
|
2019 |
2020 |
2020 |
change |
|
Average daily room rate (in RMB) |
|
|
|
|
|
Leased and owned hotels |
277 |
|
255 |
|
272 |
|
-1.8 |
% |
|
Manachised and franchised hotels |
223 |
|
211 |
|
224 |
|
0.6 |
% |
|
Blended |
232 |
|
218 |
|
231 |
|
-0.5 |
% |
|
Occupancy rate (as a percentage) |
|
|
|
|
|
Leased and owned hotels |
84.7 |
% |
82.9 |
% |
79.6 |
% |
-5.2p.p. |
|
Manachised and franchised hotels |
81.6 |
% |
81.8 |
% |
80.8 |
% |
-0.9p.p. |
|
Blended |
82.2 |
% |
82.0 |
% |
80.6 |
% |
-1.6p.p. |
|
RevPAR (in RMB) |
|
|
|
|
|
Leased and owned hotels |
235 |
|
211 |
|
217 |
|
-7.8 |
% |
|
Manachised and franchised hotels |
182 |
|
173 |
|
181 |
|
-0.5 |
% |
|
Blended |
191 |
|
179 |
|
186 |
|
-2.4 |
% |
|
|
|
|
For the year ended |
|
December 31, |
December 31, |
yoy |
|
2019 |
2020 |
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
276 |
|
241 |
|
-12.8 |
% |
Manachised and franchised hotels |
224 |
|
204 |
|
-8.9 |
% |
Blended |
234 |
|
210 |
|
-10.3 |
% |
Occupancy rate (as a percentage) |
|
|
|
Leased and owned hotels |
87.0 |
% |
68.9 |
% |
-18.1p.p. |
Manachised and franchised hotels |
83.8 |
% |
71.4 |
% |
-12.4p.p. |
Blended |
84.4 |
% |
71.0 |
% |
-13.4p.p. |
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
240 |
|
166 |
|
-30.9 |
% |
Manachised and franchised hotels |
188 |
|
146 |
|
-22.3 |
% |
Blended |
198 |
|
149 |
|
-24.5 |
% |
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 ofDecember 31, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
ended December 31, |
change |
ended December 31, |
change |
ended December 31, |
change |
|
2019 |
2020 |
2019 |
2020 |
|
2019 |
2020 |
|
2019 |
|
2020 |
|
(p.p.) |
Economy hotels |
2,651 |
2,651 |
162 |
151 |
-6.7 |
% |
185 |
178 |
-3.7 |
% |
87.6 |
% |
84.9 |
% |
-2.7 |
Leased and owned hotels |
412 |
412 |
184 |
167 |
-8.9 |
% |
210 |
199 |
-5.2 |
% |
87.7 |
% |
84.3 |
% |
-3.4 |
Manachised and franchised
hotels |
2,239 |
2,239 |
157 |
147 |
-6.1 |
% |
179 |
173 |
-3.3 |
% |
87.5 |
% |
85.0 |
% |
-2.5 |
Midscale and upscale hotels |
1,225 |
1,225 |
266 |
243 |
-8.5 |
% |
322 |
311 |
-3.4 |
% |
82.5 |
% |
78.2 |
% |
-4.3 |
Leased and owned hotels |
190 |
190 |
327 |
272 |
-16.7 |
% |
392 |
365 |
-6.8 |
% |
83.4 |
% |
74.5 |
% |
-8.8 |
Manachised and franchised hotels |
1,035 |
1,035 |
250 |
236 |
-5.6 |
% |
303 |
298 |
-1.9 |
% |
82.3 |
% |
79.2 |
% |
-3.1 |
Total |
3,876 |
3,876 |
201 |
186 |
-7.6 |
% |
235 |
225 |
-3.9 |
% |
85.7 |
% |
82.4 |
% |
-3.3 |
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofDecember 31, |
For the year |
yoy |
For the year |
yoy |
For the year |
yoy |
|
ended December 31, |
change |
ended December 31, |
change |
ended December 31, |
change |
|
2019 |
2020 |
2019 |
2020 |
|
2019 |
2020 |
|
2019 |
|
2020 |
|
(p.p.) |
Economy hotels |
2,651 |
2,651 |
169 |
121 |
-28.8 |
% |
189 |
162 |
-14.1 |
% |
89.7 |
% |
74.3 |
% |
-15.4 |
Leased and owned hotels |
412 |
412 |
191 |
128 |
-32.8 |
% |
211 |
176 |
-16.4 |
% |
90.5 |
% |
72.8 |
% |
-17.7 |
Manachised and franchised
hotels |
2,239 |
2,239 |
164 |
118 |
-27.7 |
% |
183 |
159 |
-13.4 |
% |
89.4 |
% |
74.7 |
% |
-14.8 |
Midscale and upscale hotels |
1,225 |
1,225 |
272 |
198 |
-27.0 |
% |
328 |
287 |
-12.4 |
% |
82.8 |
% |
69.0 |
% |
-13.8 |
Leased and owned hotels |
190 |
190 |
332 |
211 |
-36.4 |
% |
395 |
328 |
-17.0 |
% |
84.1 |
% |
64.5 |
% |
-19.7 |
Manachised and franchised hotels |
1,035 |
1,035 |
254 |
194 |
-23.4 |
% |
308 |
276 |
-10.3 |
% |
82.5 |
% |
70.4 |
% |
-12.1 |
Total |
3,876 |
3,876 |
205 |
148 |
-27.9 |
% |
234 |
204 |
-13.1 |
% |
87.3 |
% |
72.5 |
% |
-14.8 |
Operating Results:
Legacy-DH(4)
|
Number of hotels |
|
Number of rooms |
|
Unopened hotels in pipeline |
|
Opened in Q4 2020 |
Closedin Q4 2020 |
Net added in Q4 2020 |
As of December 31,
2020(5) |
|
As of December 31, 2020 |
|
As ofDecember 31, 2020 |
|
Leased hotels |
2 |
- |
2 |
72 |
|
13,371 |
|
26 |
Manachised and franchised hotels |
1 |
- |
1 |
48 |
|
10,656 |
|
12 |
Total |
3 |
- |
3 |
120 |
|
24,027 |
|
38 |
|
|
|
|
|
|
|
|
|
(4) Legacy-DH refers to DH.
(5) As of December 31, 2020, a total of 18 DH
brand hotels were temporarily closed due to COVID-19. |
|
For the quarter ended |
|
|
December 31, |
September 30, |
December 31, |
yoy |
|
2019 |
2020 |
2020 |
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
108 |
|
88 |
|
78 |
|
-27.2 |
% |
Manachised and franchised hotels |
85 |
|
101 |
|
73 |
|
-13.7 |
% |
Blended |
97 |
|
93 |
|
76 |
|
-21.5 |
% |
Occupancy rate (as a percentage) |
|
|
|
Leased hotels |
73.3 |
% |
38.2 |
% |
20.9 |
% |
-52.6p.p. |
Manachised and franchised hotels |
62.6 |
% |
37.5 |
% |
25.4 |
% |
-37.2p.p. |
Blended |
68.0 |
% |
37.9 |
% |
22.5 |
% |
-45.5p.p. |
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
79 |
|
34 |
|
16 |
|
-79.3 |
% |
Manachised and franchised hotels |
53 |
|
38 |
|
19 |
|
-64.9 |
% |
Blended |
66 |
|
35 |
|
17 |
|
-74.0 |
% |
|
For the year ended |
|
December 31, |
December 31, |
yoy |
|
2019 |
2020 |
change |
Average daily room rate (in EUR) |
|
|
|
Leased hotels |
105 |
|
89 |
|
-14.8 |
% |
Manachised and franchised hotels |
88 |
|
85 |
|
-3.2 |
% |
Blended |
97 |
|
88 |
|
-9.9 |
% |
Occupancy rate (as a percentage) |
|
|
Leased hotels |
72.8 |
% |
33.9 |
% |
-38.9p.p. |
Manachised and franchised hotels |
65.0 |
% |
36.3 |
% |
-28.7p.p. |
Blended |
69.1 |
% |
34.8 |
% |
-34.3p.p. |
RevPAR (in EUR) |
|
|
|
Leased hotels |
76 |
|
30 |
|
-60.4 |
% |
Manachised and franchised hotels |
57 |
|
31 |
|
-45.8 |
% |
Blended |
67 |
|
31 |
|
-54.6 |
% |
Hotel Portfolio by Brand
|
As of December 31, 2020 |
|
Hotels |
Rooms |
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,376 |
361,435 |
1,192 |
HanTing Hotel |
2,780 |
254,106 |
597 |
Hi Inn |
439 |
25,282 |
91 |
Elan Hotel(6) |
938 |
58,753 |
448 |
Ibis Hotel |
205 |
21,633 |
47 |
Zleep Hotel |
14 |
1,661 |
9 |
Midscale and upscale hotels |
2,413 |
290,727 |
1,257 |
Ibis Styles Hotel |
69 |
7,992 |
22 |
Starway Hotel |
455 |
38,657 |
252 |
JI Hotel |
1,105 |
135,737 |
512 |
Orange Hotel |
320 |
36,167 |
174 |
Crystal Orange Hotel |
114 |
15,400 |
66 |
Manxin Hotel |
61 |
6,009 |
47 |
Madison Hotel |
22 |
2,950 |
42 |
Mercure Hotel |
104 |
17,486 |
61 |
Novotel Hotel |
12 |
3,387 |
14 |
Joya Hotel |
10 |
1,842 |
- |
Blossom House |
28 |
1,249 |
23 |
Grand Mercure Hotel |
7 |
1,485 |
7 |
Steigenberger Hotels & Resorts |
49 |
11,574 |
7 |
IntercityHotel(7) |
45 |
8,056 |
23 |
Maxx by Steigenberger(8) |
5 |
777 |
4 |
Jaz in the City |
2 |
424 |
2 |
Other partner hotels |
5 |
1,535 |
1 |
Total |
6,789 |
652,162 |
2,449 |
(6) As of December 31, 2020, 5 Ni Hao Hotels were
included in the operational hotel total for Elan Hotels and 74 Ni
Hao hotels were included in the pipeline total for Elan
Hotels.(7) As of December 31, 2020, 5 pipeline
hotels of IntercityHotel were in China.(8) As of
December 31, 2020, 3 pipeline hotels of Maxx by Steigenberger were
in China. |
About Huazhu Group
LimitedOriginated in China, Huazhu Group Limited is a
world-leading hotel group. As of December 31, 2020, Huazhu
operated 6,789 hotels with 652,162 rooms in operation in 16
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, and Ni Hao
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
Hotel. 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 December 31, 2020, Huazhu operates 16 percent of
its hotel rooms under lease and ownership model, and 84 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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