15/01/2019 07:00:00

Huazhu Group Limited Announces Its Preliminary Results for Hotel Operation in the Fourth Quarter of 2018

  • Net revenue for 2018 Q4 is expected to exceed the high end of our guidance (17%-19% year-over-year growth)

  • Pipeline hotel at 2018 Q4 reached historical high of 1,105.

SHANGHAI, China, Jan. 15, 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 fourth quarter ended December 31, 2018.

Operating Metrics

 

 

For the quarter ended

 
 

December 31,

September 30,

December 31,

yoy

 

2017 

2018 

2018 

change

Average daily room rate

 

(in RMB)

 

 

 

  Leased and owned hotels251 279 275 9.4%
  Manachised hotels197 226 216 10.0%
  Franchised hotels232 264 248 7.2%
  Blended211 239 230 9.2%

Occupancy rate (as a percentage)

 

 

 

  Leased and owned hotels87.2%92.0%86.7%-0.4%
  Manachised hotels86.6%91.1%85.5%-1.2%
  Franchised hotels72.1%80.7%74.5%2.4%
  Blended86.0%90.7%85.2%-0.9%

RevPAR

 

(in RMB)

 

 

 

 

  Leased and owned hotels219 257 238 8.8%
  Manachised hotels170 205 185 8.5%
  Franchised hotels167 213 185 10.8%
  Blended181 217 196 8.1%

Like-for-like performance for hotels opened for at least 18 months during the current quarter 
      
 

As of and for the quarter ended

   
 

December 31,

yoy

  
 

2017

 

2018

 

change

  
Total   2,980   2,980    
  Leased and owned hotels  545   545    
  Manachised and franchised hotels  2,435   2,435    
Occupancy rate (as a percentage)88.3%87.5%-0.8%  
Average daily room rate (in RMB)206 216 4.9%

 

 

RevPAR (in RMB)182 189 3.9%  

Hotel Development

 

 

Number of hotels in operation

 

Number of rooms in operation

 

Opened

 

Closed

(1)

Net added

 

As of

 

 

Net added

 

As of

 

 

in Q4 2018

in Q4 2018

in Q4 2018

December 31, 2018

 

in Q4 2018

December 31, 2018

Leased and owned hotels  9  (8)  1  699   (38)  86,787
Manachised and franchised hotels  205  (31)  174  3,531   13,269   335,960

Total

 

214

 

(39

)

 

175

 

4,230

 

 

13,231

 

 

422,747

          

(1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q4 2018, 11 hotels were temporarily closed for brand upgrade.

 

 

Number of hotels in pipeline

as of December 31, 2018

Leased hotels  42
Manachised and franchised hotels  1,063

Total

(2)

 

1,105

 

(2) Including 196 hotels under brands of ibis, ibis Styles, Mercure, Grand Mercure and Novotel; 132 hotels under brands of Orange Select and Crystal Orange,17 hotels under brand of Blossom Hill.

  

Business Update by Segment

Hotel breakdown by segment

 
 

 

 

Number of hotels in operation

 

Net added

 

As of

 

 

in Q4 2018

December 31, 2018

Economy hotels

34

 

2,892

  HanTing Hotel28 2,283
  Hi Inn10 402
  Elan Hotel(4)200
  Orange Hotel0 7

Midscale and upscale hotels

141

 

1,338

  JI Hotel52 553
  Starway Hotel19 212
  Joya Hotel0 6
  Manxin Hotels & Resorts3 24
  HanTing Premium Hotel15 74
  Ibis Hotel12 137
  Ibis Styles Hotel 6 34
  Mercure Hotel4 39
  Novotel Hotel0 7
  Grand Mercure 0 6
  Orange Select29 172
  Crystal Orange4 56
  Blossom Hill(3)18

Total

 

175

 

 

4,230

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

  
 

December 31,

December 31,

yoy

change

December 31,

yoy

change

December 31,

yoy

change

 
 

2017

2018

2017

2018

2017

2018

2017

 

2018

  

Economy hotels

  2,454  2,454  157  1644.1%  174  1835.3%90%89%-1.1% 
  Leased hotels  440  440  165  1777.7%  186  1986.7%89%89%0.8% 
  Manachised and franchised hotels  2,014  2,014  155  1603.0%  171  1794.8%91%89%-1.6% 

Midscale and upscale hotels

  526  526  255  2643.7%  311  3223.9%82%82%-0.1% 
  Leased and owned hotels  105  105  316  3253.0%  367  3844.4%86%85%-1.2% 
  Manachised and franchised hotels  421  421  229  2384.2%  284  2953.7%80%81%0.3% 

Total

  2,980  2,980  182  1893.9%  206  2164.9%88%87%-0.8% 
             

About Huazhu Group Limited

Huazhu Group Limited is a leading hotel operator and franchisor in China. As of December 31, 2018, the Company had 4,230 hotels or 422,747 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 December 31, 2018, Huazhu Group operates 21 percent of its hotel rooms under lease and ownership model, 79 percent under manachise and franchise models.

For more information, please visit the Company’s website: https://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

https://ir.huazhu.com

 

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