H World Group Limited Announces Preliminary Results for Hotel Operations in the Second Quarter of 2022
July 20 2022 - 7:30AM
H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”,
“we” or “our”), a world-leading hotel group, today announced
preliminary results for hotel operations in the second quarter (“Q2
2022”) ended June 30, 2022.
COVID-19 update For our
Legacy-Huazhu business, the large-scale outbreak of Omicron variant
in China since early-March 2022 led to massive lockdown in various
cities and sharp decline in the demand for both business and
leisure travel. As a result, our RevPAR in Q2 2022 only recovered
to 69% of the 2019 level. Breaking down into each month, April and
May 2022 were the hardest-hit with RevPAR only having recovered to
53% and 65% of the 2019 levels respectively. However, RevPAR
recovery improved in June 2022 to 86% of the 2019 level due to
gradual lift of lockdown since late May 2022. In addition, if we
consider the impacts of requisitioned hotels, our RevPAR recovery
in Q2 2022 would have been 75% of the 2019 level.
Steigenberger Hotels AG and its subsidiaries
(“DH”, or “Legacy-DH”) have seen an accelerating RevPAR recovery in
Q2 2022. While RevPAR in March 2022 was 35% lower than the 2019
level, June 2022 RevPAR was only 1% behind that of 2019. However,
against the background of surging inflation in Europe and the
resulting substantial increase in costs as well as uncertainties
about the future development of COVID-19 and energy supplies, DH
has been focusing on cash flow improvement measures. As a
consequence, DH will continue to focus on efficiency improvements,
re-negotiation of lease contracts, and personnel cost
optimization.
Operating Results:
Legacy-Huazhu(1) |
|
|
|
|
|
Number of hotels |
|
Number of rooms |
|
Opened in Q2 2022 |
Closed
(2)in Q2
2022 |
Net added in Q2 2022 |
As of June 30, 2022
(3) |
|
As of June 30, 2022 |
|
|
Leased and owned hotels |
5 |
(12) |
(7) |
646 |
|
91,171 |
Manachised and franchised hotels |
264 |
(74) |
190 |
7,405 |
|
657,771 |
Total |
269 |
(86) |
183 |
8,051 |
|
748,942 |
(1) Legacy-Huazhu refers to H world 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 Q2 2022, we
temporarily closed 7 hotels for brand upgrade and business model
change purposes.(3) As of June 30, 2022,645 hotels
were requisitioned by governmental authorities. |
|
As of June 30, 2022 |
|
Number of hotels |
Unopened hotels in pipeline |
Economy
hotels |
4,859 |
974 |
Leased and owned hotels |
381 |
1 |
Manachised and franchised hotels |
4,478 |
973 |
Midscale and upscale
hotels |
3,192 |
1,225 |
Leased and owned hotels |
265 |
19 |
Manachised and franchised hotels |
2,927 |
1,206 |
Total |
8,051 |
2,199 |
Operational hotels excluding hotels under
requisition(4) |
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
yoy |
|
2021 |
2022 |
2022 |
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
311 |
263 |
243 |
-21.7% |
Manachised and franchised hotels |
246 |
218 |
215 |
-12.8% |
Blended |
255 |
224 |
218 |
-14.5% |
Occupancy Rate (as a percentage) |
|
|
|
Leased and owned hotels |
81.1% |
56.7% |
62.9% |
-18.1p.p. |
Manachised and franchised hotels |
82.5% |
59.6% |
64.9% |
-17.6p.p. |
Blended |
82.3% |
59.2% |
64.6% |
-17.7p.p. |
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
252 |
149 |
153 |
-39.2% |
Manachised and franchised hotels |
203 |
130 |
139 |
-31.4% |
Blended |
210 |
132 |
141 |
-32.9% |
|
For the quarter ended |
|
June 30, |
June 30, |
yoy |
|
2019 |
2022 |
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
281 |
243 |
-13.5% |
Manachised and franchised hotels |
225 |
215 |
-4.7% |
Blended |
236 |
218 |
-7.8% |
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
89.4% |
62.9% |
-26.5p.p. |
Manachised and franchised hotels |
86.3% |
64.9% |
-21.4p.p. |
Blended |
86.9% |
64.6% |
-22.3p.p. |
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
252 |
153 |
-39.2% |
Manachised and franchised hotels |
194 |
139 |
-28.4% |
Blended |
206 |
141 |
-31.4% |
(4) If including hotels under requisition, RevPAR
in Q2 2022 would have been 75% of the 2019 level. |
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 ofJune 30, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
ended June 30, |
change |
ended June 30, |
change |
ended June 30, |
change |
|
2021 |
2022 |
2021 |
2022 |
|
2021 |
2022 |
|
2021 |
2022 |
(p.p.) |
Economy hotels |
3127 |
3127 |
172 |
112 |
-34.8% |
197 |
166 |
-16.0% |
87.2% |
67.7% |
-19.5 |
Leased and owned hotels |
350 |
350 |
193 |
121 |
-37.3% |
229 |
177 |
-22.7% |
84.3% |
68.4% |
-15.9 |
Manachised and franchised hotels |
2777 |
2777 |
168 |
110 |
-34.3% |
191 |
163 |
-14.6% |
87.7% |
67.5% |
-20.2 |
Midscale and upscale hotels |
1785 |
1785 |
275 |
173 |
-37.2% |
335 |
281 |
-16.4% |
81.9% |
61.5% |
-20.4 |
Leased and owned hotels |
203 |
203 |
323 |
190 |
-41.1% |
414 |
332 |
-19.8% |
78.0% |
57.3% |
-20.7 |
Manachised and franchised hotels |
1582 |
1582 |
266 |
169 |
-36.3% |
322 |
272 |
-15.6% |
82.7% |
62.3% |
-20.3 |
Total |
4912 |
4912 |
217 |
138 |
-36.2% |
255 |
213 |
-16.7% |
84.9% |
65.0% |
-19.9 |
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofJune 30, |
For the quarter ended
June 30, |
yoychange |
For the quarter ended
June 30, |
yoychange |
For the quarter ended
June 30, |
yoychange |
|
|
2019 |
2022 |
2019 |
2022 |
|
2019 |
2022 |
|
2019 |
2022 |
(p.p.) |
Economy hotels |
1888 |
1888 |
182 |
110 |
-39.4% |
195 |
164 |
-15.8% |
93.1% |
67.0% |
-26.1 |
Leased and owned hotels |
334 |
334 |
204 |
119 |
-41.8% |
218 |
175 |
-20.0% |
93.6% |
68.1% |
-25.5 |
Manachised and franchised hotels |
1554 |
1554 |
176 |
108 |
-38.7% |
189 |
161 |
-14.5% |
93.0% |
66.7% |
-26.3 |
Midscale and upscale hotels |
773 |
773 |
283 |
165 |
-41.5% |
333 |
279 |
-16.3% |
84.8% |
59.3% |
-25.5 |
Leased and owned hotels |
155 |
155 |
348 |
170 |
-51.0% |
401 |
312 |
-22.3% |
86.6% |
54.7% |
-31.9 |
Manachised and franchised hotels |
618 |
618 |
261 |
164 |
-37.3% |
310 |
269 |
-13.2% |
84.2% |
60.8% |
-23.4 |
Total |
2661 |
2661 |
217 |
129 |
-40.4% |
240 |
201 |
-16.3% |
90.3% |
64.3% |
-25.9 |
Operating Results:
Legacy-DH(5) |
|
|
|
|
|
|
|
Number of hotels |
|
Number of rooms |
|
Unopened hotels in pipeline |
|
Opened in Q2 2022 |
Closedin Q2 2022 |
Net added in Q2 2022 |
As of June 30,
2022(6) |
|
As of June 30,2022 |
|
As ofJune 30,2022 |
|
Leased hotels |
2 |
- |
2 |
79 |
|
14,939 |
|
25 |
Manachised and franchised hotels |
3 |
- |
3 |
46 |
|
10,017 |
|
12 |
Total |
5 |
- |
5 |
125 |
|
24,956 |
|
37 |
(5) Legacy-DH refers to DH.
(6) As of June 30, 2022, a total of 3 hotels were
temporarily closed. 1 hotel was closed for renovation and 1 hotel
was closed due to flood damage. Additionally, 1 hotel was
temporarily closed due to extensive hotel refurbishment. |
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
yoy |
|
2021 |
2022 |
2022 |
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
85.2 |
90.0 |
112.6 |
32.2% |
Manachised and franchised hotels |
77.9 |
85.5 |
106.7 |
37.0% |
Blended |
81.5 |
88.0 |
110.4 |
35.5% |
Occupancy rate (as a percentage) |
|
|
|
|
Leased hotels |
20.0% |
34.1% |
61.2% |
+41.2 p.p. |
Managed and franchised hotels |
30.8% |
44.0% |
57.9% |
+27.1 p.p. |
Blended |
24.4% |
38.0% |
59.8% |
+35.4 p.p. |
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
17.0 |
30.7 |
68.9 |
305.3% |
Managed and franchised hotels |
24.0 |
37.6 |
61.8 |
157.5% |
Blended |
19.8 |
33.4 |
66.0 |
233.3% |
Hotel Portfolio by Brand |
|
|
|
As of June 30, 2022 |
|
Hotels |
Rooms |
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,874 |
384,177 |
985 |
HanTing Hotel |
3,124 |
277,284 |
626 |
Hi Inn |
458 |
24,036 |
120 |
Ni Hao Hotel |
106 |
7,503 |
188 |
Elan Hotel |
952 |
50,910 |
7 |
Ibis Hotel |
219 |
22,734 |
33 |
Zleep Hotels |
15 |
1,710 |
11 |
Midscale hotels |
2,666 |
291,349 |
949 |
Ibis Styles Hotel |
84 |
8,679 |
13 |
Starway Hotel |
557 |
44,683 |
185 |
JI Hotel |
1,515 |
180,847 |
528 |
Orange Hotel |
479 |
52,168 |
215 |
CitiGO Hotel |
31 |
4,972 |
8 |
Upper midscale hotels |
494 |
72,304 |
244 |
Crystal Orange Hotel |
155 |
20,639 |
56 |
Manxin Hotel |
99 |
9,432 |
52 |
Madison Hotel |
43 |
6,346 |
55 |
Mercure Hotel |
131 |
22,533 |
43 |
Novotel Hotel |
15 |
4,032 |
14 |
IntercityHotel(7) |
51 |
9,322 |
24 |
Upscale hotels |
118 |
20,367 |
51 |
Jaz in the City |
3 |
587 |
1 |
Joya Hotel |
8 |
1,386 |
- |
Blossom House |
39 |
1,888 |
28 |
Grand Mercure Hotel |
7 |
1,485 |
5 |
Steigenberger Hotels & Resorts(8) |
53 |
13,710 |
9 |
MAXX (9) |
8 |
1,311 |
8 |
Luxury hotels |
15 |
2,326 |
2 |
Steigenberger Icon(10) |
9 |
1,847 |
1 |
Song Hotels |
6 |
479 |
1 |
Others |
9 |
3,375 |
5 |
Other hotels(11) |
9 |
3,375 |
5 |
Total |
8,176 |
773,898 |
2,236 |
(7) As of June 30, 2022, 2 operational hotels and
9 pipeline hotels of IntercityHotel were in China. |
(8) As of June 30, 2022, 11 operational hotels and
2 pipeline hotels of Steigenberger Hotels & Resorts were in
China. |
(9) As of June 30, 2022, 2 operational hotels and
8 pipeline hotels of MAXX were in China. |
(10) As of June 30, 2022, 3 operational hotels of
Steigenberger Icon were in China. |
(11) Other hotels include other partner hotels and other hotel
brands in Yongle Huazhu Hotel & Resort Group (excluding
Steigenberger Hotels & Resorts and Blossom House). |
|
About H World Group
LimitedOriginated in China, H World Group Limited is a
world-leading hotel group. As of June 30, 2022, H World
operated 8,176 hotels with 773,898 rooms in operation in 17
countries. H World’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, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz
in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and
Song Hotels. In addition, H World 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.
H World’s business includes leased and owned,
manachised and franchised models. Under the lease and ownership
model, H World directly operates hotels typically located on leased
or owned properties. Under the manachise model, H World manages
manachised hotels through the on-site hotel managers that H World
appoints, and H World collects fees from franchisees. Under the
franchise model, H World provides training, reservations and
support services to the franchised hotels, and collects fees from
franchisees but does not appoint on-site hotel managers. H World
applies a consistent standard and platform across all of its
hotels. As of June 30, 2022, H World 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 H World’s
website: https://ir.hworld.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.
H World 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 InformationH World Investor
RelationsTel: 86 (21) 6195
9561Email: ir@huazhu.comhttps://ir.hworld.com
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