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 2021”) and
the full year ended December 31, 2021.
COVID-19 update For our
Legacy-Huazhu business, RevPAR recovery in Q4 2021 was still
significantly impacted by several COVID-19 resurgences in China. In
terms of monthly breakdown, our RevPAR recovered to 90%, 76%, and
90% of the levels in October, November, and December 2019,
respectively. Entering into 2022, we saw that the COVID-19 pandemic
was still lingering in several cities and provinces, such as Xi’an,
Tianjin and Henan Province, etc. Additionally, the new Omicron
variant was also detected recently in several cities in China. More
importantly, travelling restrictions are expected to be stricter in
Beijing and its surrounding areas in anticipation of the upcoming
Beijing Olympic Winter Games. Therefore, all the above factors
would increase uncertainties and pressures to our RevPAR recovery
in the first quarter of 2022.
After continuous business recovery in Q3 2021
thanks to the progress of vaccination campaign and easing of
restrictions, Steigenberger Hotels AG and its subsidiaries
(“DH”) in Q4 2021 were impacted by tightened
governmental control measures and testing requirements due to the
third and fourth waves of the COVID-19 pandemic in European
countries. As a result, the recovery trend of DH was disrupted in
November 2021, as RevPAR and occupancy numbers declined compared to
those in the summer. In terms of vaccination, as of January 18,
2022, approximately 75% of the entire German population has
received at least one dose and approximately 72% of the population
has been fully vaccinated, and 47% has received the third dose.
RevPAR recovery in the near-term is expected to remain under
pressure due to the recent Omicron variant. However, we believe
that the RevPAR recovery trend will quickly resume once the number
of COVID cases start to decline.
Meanwhile, DH continues its effort to implement
a comprehensive cash and cash flow improvement program, especially
focusing on personnel cost reduction, process optimization and
negotiation of further lease waivers. In addition, government
subsidy was received in December 2021. Operating Results:
Legacy-Huazhu(1)
|
Number of hotels |
|
Number of rooms |
|
Opened in Q4 2021 |
Closed
(2)in Q4
2021 |
Net added in Q4 2021 |
As of December 31,2021
(3) |
|
As of December 31,2021 |
|
|
Leased and owned hotels |
7 |
(8 |
) |
(1 |
) |
662 |
|
91,284 |
Manachised and franchised hotels |
436 |
(74 |
) |
362 |
|
7,044 |
|
636,859 |
Total |
443 |
(82 |
) |
361 |
|
7,706 |
|
728,143 |
(1) Legacy-Huazhu refers to Huazhu and its
subsidiaries, excluding DH.(2) The reasons for
hotel closures mainly included non-compliance with our brand
standards, operating losses, and property-related issues. In Q4
2021, we temporarily closed 9 hotels for brand upgrade and business
model change purposes.(3) As of December 31, 2021,
147 hotels were requisitioned by governmental authorities. |
|
As of December 31, 2021 |
|
Number of hotels |
Unopened hotels in pipeline |
Economy hotels |
4,772 |
1,194 |
Leased and owned hotels |
397 |
3 |
Manachised and franchised hotels |
4,375 |
1,191 |
Midscale and upscale hotels |
2,934 |
1,377 |
Leased and owned hotels |
265 |
15 |
Manachised and franchised hotels |
2,669 |
1,362 |
Total |
7,706 |
2,571 |
Operational hotels excluding hotels under
requisition |
|
For the quarter ended |
|
|
December 31, |
September 30, |
December 31, |
yoy |
|
2020 |
|
2021 |
|
2021 |
|
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
272 |
|
296 |
|
286 |
|
5.1 |
% |
Manachised and franchised hotels |
224 |
|
238 |
|
232 |
|
3.9 |
% |
Blended |
231 |
|
246 |
|
239 |
|
3.7 |
% |
Occupancy Rate (as a percentage) |
|
|
|
Leased and owned hotels |
79.6 |
% |
69.7 |
% |
67.4 |
% |
-12.2p.p. |
Manachised and franchised hotels |
80.8 |
% |
72.2 |
% |
68.4 |
% |
-12.4p.p. |
Blended |
80.6 |
% |
71.9 |
% |
68.2 |
% |
-12.4p.p. |
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
217 |
|
206 |
|
193 |
|
-11.0 |
% |
Manachised and franchised hotels |
181 |
|
172 |
|
159 |
|
-12.1 |
% |
Blended |
186 |
|
177 |
|
163 |
|
-12.2 |
% |
|
For the quarter ended |
|
December 31, |
December 31, |
yoy |
|
2019 |
|
2021 |
|
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
277 |
|
286 |
|
3.2 |
% |
Manachised and franchised hotels |
223 |
|
232 |
|
4.5 |
% |
Blended |
232 |
|
239 |
|
3.1 |
% |
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
84.7 |
% |
67.4 |
% |
-17.4p.p. |
Manachised and franchised hotels |
81.6 |
% |
68.4 |
% |
-13.3p.p. |
Blended |
82.2 |
% |
68.2 |
% |
-13.9p.p. |
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
235 |
|
193 |
|
-17.9 |
% |
Manachised and franchised hotels |
182 |
|
159 |
|
-12.5 |
% |
Blended |
191 |
|
163 |
|
-14.4 |
% |
|
For the year ended |
|
December 31, |
December 31, |
yoy |
|
2020 |
|
2021 |
|
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
241 |
|
286 |
|
18.7 |
% |
Manachised and franchised hotels |
204 |
|
232 |
|
13.3 |
% |
Blended |
210 |
|
239 |
|
13.8 |
% |
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
68.9 |
% |
70.6 |
% |
+1.7 p.p. |
Manachised and franchised hotels |
71.4 |
% |
72.4 |
% |
+1.0 p.p. |
Blended |
71.0 |
% |
72.2 |
% |
+1.2 p.p. |
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
166 |
|
202 |
|
21.7 |
% |
Manachised and franchised hotels |
146 |
|
168 |
|
14.9 |
% |
Blended |
149 |
|
172 |
|
15.6 |
% |
|
For the year ended |
|
December 31, |
December 31, |
yoy |
|
2019 |
|
2021 |
|
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
276 |
|
286 |
|
3.5 |
% |
Manachised and franchised hotels |
224 |
|
232 |
|
3.2 |
% |
Blended |
234 |
|
239 |
|
2.0 |
% |
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
87.0 |
% |
70.6 |
% |
-16.3p.p. |
Manachised and franchised hotels |
83.8 |
% |
72.4 |
% |
-11.4p.p. |
Blended |
84.4 |
% |
72.2 |
% |
-12.2p.p. |
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
240 |
|
202 |
|
-15.9 |
% |
Manachised and franchised hotels |
188 |
|
168 |
|
-10.8 |
% |
Blended |
198 |
|
172 |
|
-12.7 |
% |
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 |
|
2020 |
2021 |
2020 |
2021 |
|
2020 |
2021 |
|
2020 |
|
2021 |
|
(p.p.) |
Economy hotels |
3,341 |
3,341 |
152 |
128 |
-15.6 |
% |
179 |
180 |
0.8 |
% |
85.2 |
% |
71.4 |
% |
-13.8 |
Leased and owned hotels |
388 |
388 |
170 |
146 |
-14.1 |
% |
201 |
204 |
1.1 |
% |
84.6 |
% |
71.9 |
% |
-12.7 |
Manachised and franchised hotels |
2,953 |
2,953 |
149 |
125 |
-15.9 |
% |
174 |
175 |
0.6 |
% |
85.3 |
% |
71.3 |
% |
-14.0 |
Midscale and upscale hotels |
1,734 |
1,734 |
247 |
208 |
-15.7 |
% |
314 |
312 |
-0.5 |
% |
78.7 |
% |
66.7 |
% |
-12.0 |
Leased and owned hotels |
222 |
222 |
280 |
238 |
-15.1 |
% |
378 |
378 |
0.2 |
% |
74.2 |
% |
62.8 |
% |
-11.4 |
Manachised and franchised hotels |
1,512 |
1,512 |
240 |
202 |
-15.9 |
% |
301 |
299 |
-0.8 |
% |
79.7 |
% |
67.6 |
% |
-12.1 |
Total |
5,075 |
5,075 |
192 |
162 |
-15.6 |
% |
232 |
233 |
0.3 |
% |
82.5 |
% |
69.4 |
% |
-13.1 |
|
|
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 |
2021 |
2019 |
2021 |
|
2019 |
2021 |
|
2019 |
|
2021 |
|
(p.p.) |
Economy hotels |
2,442 |
2,442 |
163 |
130 |
-20.1 |
% |
186 |
181 |
-2.8 |
% |
87.9 |
% |
72.2 |
% |
-15.7 |
Leased and owned hotels |
380 |
380 |
185 |
145 |
-21.8 |
% |
211 |
202 |
-4.4 |
% |
87.7 |
% |
71.7 |
% |
-16.0 |
Manachised and franchised hotels |
2,062 |
2,062 |
158 |
127 |
-19.7 |
% |
179 |
175 |
-2.4 |
% |
87.9 |
% |
72.3 |
% |
-15.6 |
Midscale and upscale hotels |
1,160 |
1,160 |
269 |
206 |
-23.5 |
% |
325 |
313 |
-3.7 |
% |
82.9 |
% |
65.9 |
% |
-17.0 |
Leased and owned hotels |
187 |
187 |
329 |
229 |
-30.6 |
% |
394 |
369 |
-6.5 |
% |
83.5 |
% |
62.0 |
% |
-21.5 |
Manachised and franchised hotels |
973 |
973 |
253 |
200 |
-21.0 |
% |
305 |
298 |
-2.4 |
% |
82.7 |
% |
66.9 |
% |
-15.8 |
Total |
3,602 |
3,602 |
204 |
160 |
-21.7 |
% |
237 |
229 |
-3.5 |
% |
86.0 |
% |
69.7 |
% |
-16.2 |
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 year |
yoy |
For the year |
yoy |
For the year |
yoy |
|
ended December 31, |
change |
ended December 31, |
change |
ended December 31, |
change |
|
2020 |
2021 |
2020 |
2021 |
|
2020 |
2021 |
|
2020 |
|
2021 |
|
(p.p.) |
Economy hotels |
3,341 |
3,341 |
125 |
138 |
10.8 |
% |
164 |
182 |
10.8 |
% |
75.8 |
% |
75.8 |
% |
+0.0 |
Leased and owned hotels |
388 |
388 |
131 |
153 |
17.3 |
% |
179 |
206 |
15.0 |
% |
73.0 |
% |
74.5 |
% |
+1.5 |
Manachised and franchised hotels |
2,953 |
2,953 |
123 |
135 |
9.3 |
% |
161 |
177 |
9.7 |
% |
76.4 |
% |
76.1 |
% |
-0.3 |
Midscale and upscale hotels |
1,734 |
1,734 |
202 |
221 |
9.3 |
% |
289 |
315 |
8.8 |
% |
69.8 |
% |
70.1 |
% |
+0.3 |
Leased and owned hotels |
222 |
222 |
219 |
250 |
14.2 |
% |
338 |
378 |
11.7 |
% |
64.8 |
% |
66.2 |
% |
+1.4 |
Manachised and franchised hotels |
1,512 |
1,512 |
198 |
214 |
8.1 |
% |
279 |
301 |
8.0 |
% |
70.9 |
% |
71.0 |
% |
+0.1 |
Total |
5,075 |
5,075 |
156 |
172 |
10.2 |
% |
213 |
234 |
10.0 |
% |
73.3 |
% |
73.5 |
% |
+0.1 |
|
|
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 |
2021 |
2019 |
2021 |
|
2019 |
2021 |
|
2019 |
|
2021 |
|
(p.p.) |
Economy hotels |
2,442 |
2,442 |
172 |
138 |
-19.8 |
% |
190 |
182 |
-4.7 |
% |
90.2 |
% |
75.9 |
% |
-14.3 |
Leased and owned hotels |
380 |
380 |
193 |
151 |
-21.6 |
% |
213 |
203 |
-4.4 |
% |
90.7 |
% |
74.4 |
% |
-16.3 |
Manachised and franchised hotels |
2,062 |
2,062 |
166 |
134 |
-19.3 |
% |
185 |
176 |
-4.7 |
% |
90.1 |
% |
76.3 |
% |
-13.7 |
Midscale and upscale hotels |
1,160 |
1,160 |
275 |
218 |
-20.8 |
% |
331 |
315 |
-4.8 |
% |
83.0 |
% |
69.0 |
% |
-14.0 |
Leased and owned hotels |
187 |
187 |
335 |
244 |
-26.9 |
% |
398 |
371 |
-6.8 |
% |
84.1 |
% |
65.9 |
% |
-18.2 |
Manachised and franchised hotels |
973 |
973 |
256 |
209 |
-18.4 |
% |
310 |
299 |
-3.6 |
% |
82.7 |
% |
70.0 |
% |
-12.7 |
Total |
3,602 |
3,602 |
209 |
167 |
-20.1 |
% |
238 |
227 |
-4.7 |
% |
87.6 |
% |
73.4 |
% |
-14.2 |
Operating Results:
Legacy-DH(4)
|
Number of hotels |
|
Number ofrooms |
|
Unopened hotels in pipeline |
|
Opened in Q4 2021 |
Closedin Q4 2021 |
Net added in Q4 2021 |
As of December 31,
2021(5) |
|
As of December31,2021 |
|
As ofDecember31,2021 |
|
Leased hotels |
1 |
- |
|
1 |
76 |
|
14,264 |
|
28 |
Manachised and franchised hotels |
3 |
(1 |
) |
2 |
48 |
|
10,809 |
|
9 |
Total |
4 |
(1 |
) |
3 |
124 |
|
25,073 |
|
37 |
(4) Legacy-DH refers to DH.
(5) As of December 31, 2021, a total of 4 hotels
were temporarily closed. 1 hotel was closed for renovation and 1
hotel was closed due to flood damage. Additionally, 1 hotel was in
winter break and 1 hotel was temporarily closed due to low
demand. |
|
For the quarter ended |
|
|
December 31, |
September 30, |
December 31, |
yoy |
|
2020 |
|
2021 |
|
2021 |
|
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
78 |
|
94 |
|
95 |
|
21.6 |
% |
Manachised and franchised hotels |
73 |
|
104 |
|
93 |
|
26.6 |
% |
Blended |
76 |
|
99 |
|
94 |
|
23.5 |
% |
Occupancy rate (as a percentage) |
|
|
|
|
Leased hotels |
20.9 |
% |
48.0 |
% |
42.8 |
% |
+22.0 p.p. |
Managed and franchised hotels |
25.4 |
% |
49.4 |
% |
50.7 |
% |
+25.3 p.p. |
Blended |
22.5 |
% |
48.6 |
% |
46.1 |
% |
+23.6 p.p. |
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
16 |
|
45 |
|
41 |
|
149.6 |
% |
Managed and franchised hotels |
19 |
|
52 |
|
47 |
|
152.7 |
% |
Blended |
17 |
|
48 |
|
43 |
|
152.6 |
% |
|
For the year ended |
|
December 31, |
December 31, |
yoy |
|
2020 |
|
2021 |
|
change |
Average daily room rate (in EUR) |
|
|
Leased and owned hotels |
89 |
|
91 |
|
2.2 |
% |
Manachised and franchised hotels |
85 |
|
89 |
|
4.8 |
% |
Blended |
88 |
|
90 |
|
3.0 |
% |
Occupancy rate (as a percentage) |
|
|
Leased and owned hotels |
33.9 |
% |
31.6 |
% |
-2.3 p.p. |
Manachised and franchised hotels |
36.3 |
% |
40.5 |
% |
+4.2 p.p. |
Blended |
34.8 |
% |
35.2 |
% |
+0.3 p.p. |
RevPAR (in EUR) |
|
|
|
Leased and owned hotels |
30 |
|
29 |
|
-4.6 |
% |
Manachised and franchised hotels |
31 |
|
36 |
|
16.8 |
% |
Blended |
31 |
|
32 |
|
4.0 |
% |
Hotel Portfolio by Brand
|
As of December 31, 2021 |
|
Hotels |
Rooms |
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,786 |
387,895 |
1,206 |
HanTing Hotel |
3,027 |
274,118 |
696 |
Hi Inn |
443 |
24,674 |
117 |
Elan Hotel(6) |
1,083 |
64,606 |
353 |
Ibis Hotel |
219 |
22,834 |
28 |
Zleep Hotels |
14 |
1,663 |
12 |
Midscale hotels |
2,450 |
271,421 |
1,072 |
Ibis Styles Hotel |
79 |
8,404 |
21 |
Starway Hotel |
528 |
44,016 |
252 |
JI Hotel |
1,381 |
166,836 |
575 |
Orange Hotel |
432 |
47,393 |
217 |
CitiGO Hotel |
30 |
4,772 |
7 |
Upper midscale hotels |
454 |
67,068 |
264 |
Crystal Orange Hotel |
144 |
19,190 |
58 |
Manxin Hotel |
84 |
8,273 |
62 |
Madison Hotel |
37 |
5,490 |
56 |
Mercure Hotel |
125 |
21,217 |
50 |
Novotel Hotel |
15 |
4,032 |
13 |
IntercityHotel(7) |
49 |
8,866 |
25 |
Upscale hotels |
125 |
23,056 |
61 |
Jaz in the City |
3 |
587 |
1 |
Joya Hotel |
9 |
1,760 |
0 |
Blossom House |
34 |
1,658 |
39 |
Grand Mercure Hotel |
7 |
1,485 |
3 |
Steigenberger Hotels & Resorts(8) |
65 |
16,389 |
12 |
MAXX (9) |
7 |
1,177 |
6 |
Others |
15 |
3,776 |
5 |
Other hotels(10) |
15 |
3,776 |
5 |
Total |
7,830 |
753,216 |
2,608 |
(6) As of December 31, 2021, 70 Ni
Hao Hotels were included in the operational hotel for Elan Hotels
and 163 Ni Hao Hotels were included in the pipeline for Elan
Hotels.(7) As of December 31, 2021, 2 operational
hotels and 8 pipeline hotels of IntercityHotel were in
China.(8) As of December 31, 2021, 14 operational
hotels and 6 pipeline hotels of Steigenberger Hotels & Resorts
were in China.(9) As of December 31, 2021, 2
operational hotels and 5 pipeline hotels of MAXX were in
China.(10) Other hotels include other partner
hotels and other hotel brands in Yongle Huazhu Hotel & Resort
Group (excluding Steigenberger Hotels & Resorts and Blossom
House).About Huazhu Group LimitedOriginated in
China, Huazhu Group Limited is a world-leading hotel group. As of
December 31, 2021, Huazhu operated 7,830 hotels with 753,216
rooms in operation in 17 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, Ni Hao Hotel and CitiGO 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 Hotels. 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, 2021, Huazhu operates 14 percent of
its hotel rooms under lease and ownership model, and 86 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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