Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu” or the “Company”), a
world-leading hotel group, today announced its unaudited financial
results for the second quarter ended June 30, 2020.
As of June 30, 2020, Huazhu’s worldwide hotel
network in operation totaled 6,187 hotels and 599,235 rooms,
including 116 hotels from legacy DH. During the second quarter of
2020, legacy Huazhu opened 428 hotels, including 9 leased hotels
and 419 manachised (“franchised-and-managed”) hotels and franchised
hotels, and closed a total of 195 hotels, including 8 leased hotels
and 187 manachised and franchised hotels. During the second quarter
of 2020, legacy DH opened 1 leased hotels without closures. As of
June 30, 2020, Huazhu had a total of 2,375 unopened hotels in
pipeline, including 2,335 hotels from legacy Huazhu business and 40
hotels from legacy DH business.
Legacy Huazhu Only
– Second Quarter of 2020 Operational
Highlights
As of June 30, 2020, legacy Huazhu had 6,071
hotels in operation, including 690 leased and owned hotels and
5,381 manachised hotels and franchised hotels. In addition, as of
the same date, legacy Huazhu had 575,911 hotel rooms in operation,
including 89,599 under the lease and ownership model and 486,312
under the manachise and franchise models. Legacy Huazhu also had
2,335 hotels in the pipeline, including 27 leased and owned hotels
and 2,308 manachised and franchised hotels. Legacy Huazhu has
experienced recovery outperforming the industry since March 2020.
As of June 30, 2020, approximately 96% of legacy Huazhu’s hotels
(excluding 139 hotels under governmental requisition) had resumed
operations. The following discusses legacy Huazhu’s RevPAR, average
daily room rate and occupancy rate for its leased and owned hotels
as well as manachised and franchised hotels (excluding hotels under
governmental requisition) for the periods indicated.
Operational hotels (excluding hotels under
requisition for the second quarter of 2020)
- The ADR, which is defined as the average daily rate for all
hotels in operation, was RMB185 in the second quarter of 2020,
compared with RMB236 in the second quarter of 2019 and RMB189
(excluding hotels under requisition or temporarily closed) in the
first quarter of 2020.
- The occupancy rate for all hotels in operation, was 69% in the
second quarter of 2020, compared with 86.9% in the second quarter
of 2019 and 46.7% in the first quarter of 2020 (excluding hotels
under requisition or temporarily closed).
- Blended RevPAR, defined as revenue per available room for all
hotels in operation, was RMB127 in the second quarter of 2020,
compared with RMB206 in the second quarter of 2019 and RMB88
in the first quarter of 2020 (excluding hotels under
requisition or temporarily closed).
Recent development in July and August
2020 – Legacy HuazhuThe RevPAR, average daily room rate
(“ADR”) and occupancy rate (“Occ”) of legacy Huazhu’s hotels
(excluding hotels under governmental requisition) in July 2020 were
RMB162 (RevPAR), RMB205 (ADR) and 79% (Occ), respectively. The
RevPAR, average daily room rate (“ADR”) and occupancy rate (“Occ”)
of legacy Huazhu’s hotels (excluding hotels under governmental
requisition) in August 2020 were RMB187 (RevPAR), RMB223 (ADR) and
84% (Occ), respectively. These indicators in July and August 2020
all increased compared to June 2020, reflecting a recovery from the
impact of COVID-19.
Legacy DH Only
– Second Quarter of 2020 Operational
Highlights
As of June 30, 2020, legacy DH had 116 hotels in
operation, including 68 leased hotels and 48 manachised hotels and
franchised hotels. In addition, as of the same date, legacy DH had
23,324 hotel rooms in operation, including 12,525 under the lease
model and 10,799 under the manachise and franchise models. Legacy
DH also had 40 hotels in the pipeline, including 27 leased hotels
and 13 manachised and franchised hotels. As of June 30, 2020,
legacy DH still had 24 hotels temporarily closed due to the impact
of COVID-19, including 5 leased hotels and 19 manachised and
franchised hotels. The following discusses legacy DH’s RevPAR,
average daily room rate (“ADR”) and occupancy rate (“Occ”) for its
leased as well as manachised and franchised hotels (excluding
hotels temporarily closed) for the periods indicated.
- The ADR was EUR87 in the second quarter of 2020, compared with
EUR100 in the second quarter of 2019 and EUR89 in the previous
quarter.
- The occupancy rate (“Occ”) for all legacy DH hotels in
operation was 18% in the second quarter of 2020, compared with
70.7% in the second quarter of 2019 and 51.7% in the previous
quarter.
- Blended RevPAR was EUR16 in the second quarter of 2020,
compared with EUR71 in the second quarter of 2019 and EUR46 in the
previous quarter.
Recent development in July and August
2020 – Legacy DHThe RevPAR, average daily room rate
(“ADR”) and occupancy rate (“Occ”) of legacy DH’s hotels (excluding
hotels temporarily closed) in July 2020 were EUR33 (RevPAR), EUR96
(ADR) and 34% (Occ), respectively. The RevPAR, average daily room
rate (“ADR”) and occupancy rate (“Occ”) of legacy DH’s hotels
(excluding hotels temporarily closed) in August 2020 were EUR39
(RevPAR), EUR95 (ADR) and 41% (Occ), respectively. These indicators
in July and August 2020 all increased compared to June 2020,
reflecting a recovery from the impact of COVID-19.
Ji Qi, founder, Executive Chairman and CEO of
Huazhu commented: “We are pleased to see our negative adjusted
EBITDA narrowed significantly by RMB613 million from RMB704 million
in first quarter 2020 to only RMB97 million in second quarter 2020,
mainly due to the strong recovery of legacy Huazhu’s hotels during
the second quarter, following the upward trend in its RevPAR.
Legacy DH’s RevPAR has also been steadily recovering from the
trough in late March and beginning of April. We are happy to see
the recovery trend for both legacy Huazhu and legacy DH continue in
July and August during the third quarter. Additionally, we are
encouraged to see us record positive operating cash flows during
the second quarter.”
“Market consolidation will accelerate,”
continued Mr. Ji, “and Huazhu has prepared to expand our market
share after the crisis. For the next three years, we expect to
penetrate into additional lower-tier cities in China where
customers’ brand awareness and demand for quality have risen. In
the meantime, our exploration in the upscale segment continues
under Joya and Blossom House brands, as well as Steigenberger and
Intercity brands.”
Second Quarter of 2020 Financial
ResultsThe second quarter of 2020 financial results
included the results of legacy DH business, which was not included
in the second quarter of 2019 financial results. In the second
quarter of 2020, legacy Huazhu business had seen great recovery
while legacy DH business were greatly affected by the COVID-19
pandemic.
(RMB in millions) |
Q2 2019 |
|
Q1 2020 |
|
Q2 2020 |
Revenues: |
|
|
|
|
|
Leased and owned hotels |
2,001 |
|
1,516 |
|
1,236 |
Manachised and franchised hotels |
803 |
|
465 |
|
676 |
Others |
55 |
|
32 |
|
41 |
Net revenues |
2,859 |
|
2,013 |
|
1,953 |
Net revenues decreased by 3.0%
from RMB2,013 million in the three months ended March 31, 2020 to
RMB1,953 million (US$277 million) in the three months ended June
30, 2020, comprising RMB1,822 million, or 93%, from legacy Huazhu
and RMB131 million, or 7%, from legacy DH. This decrease of the
Company’s net revenues was primarily due to a significant decrease
in legacy DH’s net revenues, as Deutsche Hospitality was severely
hit by COVID-19 from March 2020 through the second quarter of 2020.
The RevPAR, average daily room rate and occupancy rate of Deutsche
Hospitality’s hotels (excluding hotels temporary closed) slumped in
March and has been recovering since May 2020. The decrease in
legacy DH’s net revenues was largely offset by the increase in net
revenues of legacy Huazhu, because its business has been recovering
since March 2020, as indicated by the increases in its RevPAR,
average daily room rate and occupancy rate since then. Compared to
the second quarter of 2019, the Company’s net revenues decreased by
31.7% in the same period of 2020, primarily due to the impact of
COVID-19.
Net revenues from leased and owned
hotels decreased by 18.5% from RMB1,516 million in the
three months ended March 31, 2020 to RMB1,236 million (US$175
million) in the three months ended June 30, 2020. The decrease was
primarily due to a significant decrease in legacy DH’s net revenues
from its leased hotels, as Deutsche Hospitality was severely hit by
COVID-19 from March 2020 through the second quarter of 2020. This
factor was partially offset by the revenue recovery of leased and
owned hotels of legal Huazhu due to (i) the reopening of
temporarily closed hotels in China and (ii) the increased RevPAR
for legacy Huazhu’s leased and owned hotels, which was RMB138 in
the three months ended June 30, 2020 (excluding hotels under
governmental requisition), compared to RMB92 in the three months
ended March 31, 2020 (excluding hotels under governmental
requisition or temporarily closed). Compared to the second quarter
of 2019, the Company’s net revenues from its leased and owned
hotels decreased by 38.2% in the same period of 2020, primarily due
to the impact of COVID-19.
Net revenues from manachised and
franchised hotels increased by 45.4% from RMB465 million
in the three months ended March 31, 2020 to RMB676 million (US$96
million) in the three months ended June 30, 2020. This increase was
primarily due to (i) the reopening of temporary closed hotels in
China and (ii) the increased RevPAR for legacy Huazhu’s manachised
and franchised hotels, which was RMB125 in the three months ended
June 30, 2020 (excluding those under governmental requisition),
compared to RMB87 in the three months ended March 31, 2020
(excluding hotels under governmental requisition or temporarily
closed). Compared to the second quarter of 2019, the Company’s net
revenues from its manachised and franchised hotels decreased by
15.8% in the same period of 2020, primarily due to the impact of
COVID-19.
Other revenues increased by
28.1% from RMB32 million in the three months ended March 31, 2020
to RMB41 million (US$6 million) in the three months ended June 30,
2020. This increase was primarily attributable to the increase in
other revenues of legacy DH. Compared to the second quarter of
2019, the Company’s other revenues decreased by 25.5% in the same
period of 2020, primarily due to the impact of COVID-19.
(RMB in millions) |
Q2 2019 |
|
Q1 2020 |
|
Q2 2020 |
Operating costs and expenses: |
|
|
|
|
|
Hotel operating costs |
1,743 |
|
2,377 |
|
2,135 |
Other operating costs |
17 |
|
8 |
|
7 |
Selling and marketing expenses |
102 |
|
146 |
|
107 |
General and administrative expenses |
247 |
|
316 |
|
263 |
Pre-opening expenses |
122 |
|
111 |
|
99 |
Total operating costs and expenses |
2,231 |
|
2,958 |
|
2,611 |
Hotel operating costs decreased
by 10.2% from RMB2,377 million in the three months ended March 31,
2020 to RMB2,135 million (US$302 million) in the three months ended
June 30, 2020. This decrease was primarily due to (i) rental
reduction granted by lessors for legacy Huazhu’s hotels and a
decrease in variable rent based on hotel turnover or gross
operating profit for legacy DH’s hotels; (ii) the Company’s
reduction of personnel costs by arranging hotel staff ’s furlough
to adjust for the COVID-19 situation and salary compensation for
the short-time contract employees received from the German
government; and (iii) a decrease in utilities and consumables due
to the lower occupancy rates and temporary closures of legacy DH’s
hotels as a result of COVID-19. The Company’s hotel operating costs
as a percentage of net revenues decreased from 118.1% in the three
months ended March 31, 2020 to 109.3% in the three months ended
June 30, 2020. Primarily due to the Company’s consolidation of
Deutsche Hospitality, compared to the second quarter of 2019, the
Company’s hotel operating costs increased by 22.5% in the same
period of 2020.
Selling and marketing expenses
decreased by 26.7% from RMB146 million in the three months ended
March 31, 2020 to RMB107 million (US$15 million) in the three
months ended June 30, 2020. This decrease was mainly due to the
Company’s cut-down of sales and marketing activities to mitigate
the impact of COVID-19, as well as less sales commissions paid to
third party agents of legacy DH. The Company’s selling and
marketing expenses as a percentage of net revenues decreased from
7.3% in the three months ended March 31, 2020 to 5.5% in the three
months ended June 30, 2020. Primarily due to the Company’s
consolidation of Deutsche Hospitality, compared to the second
quarter of 2019, the Company’s selling and marketing expenses
increased by 4.9% in the same period of 2020.
General and administrative
expenses decreased by 16.8% from RMB316 million in the
three months ended March 31, 2020 to RMB263 million (US$37 million)
in the three months ended June 30, 2020, primarily due to the
Company’s cut-down of salaries of some of its head office staff in
light of COVID-19 and reversal of over-accrued bonus for the prior
year. The Company’s general and administrative expenses as a
percentage of net revenues decreased from 15.7% in the three months
ended March 31, 2020 to 13.5% in the three months ended June 30,
2020. Primarily due to the Company’s consolidation of Deutsche
Hospitality, compared to the second quarter of 2019, the Company’s
general and administrative expenses increased by 6.5% in the same
period of 2020.
Pre-opening expenses decreased
by 10.8% from RMB111 million in the three months ended March 31,
2020 to RMB99 million (US$14 million) in the three months ended
June 30, 2020 primarily because certain of the Company’s upscale
leased and owned hotels had commenced operations in the second
quarter of 2020. The Company’s pre-opening expenses as a percentage
of net revenues remained relatively stable at 5.5% in the three
months ended March 31, 2020 and 5.1% in the three months ended June
30, 2020. For the above reason, compared to the second quarter of
2019, the Company’s pre-opening expenses decreased by 18.9% in the
same period of 2020.
Other operating income, net
increased by 86.4% from RMB88 million in the three months ended
March 31, 2020 to RMB164 million (US$23 million) in the three
months ended June 30, 2020, primarily related to the insurance
compensation for hotel closure receivable by Deutsche Hospitality
due to COVID-19. The Company’s other operating income, net,
increased significantly from RMB29 million in the three months
ended June 30, 2019 to RMB164 million in the same period of 2020,
primarily due the insurance compensation discussed above and the
Company’s consolidation of Deutsche Hospitality.
Loss from operations was RMB857
million in the three months ended March 31, 2020 compared to income
from operations of RMB657 million in the three months ended June
30, 2019 and loss from operations of RMB494 million (US$69 million)
in the three months ended June 30, 2020. In the three months ended
June 30, 2020, RMB208 million, or 42.1%, of the Company’s loss from
operations were attributed to legacy Huazhu and RMB286 million, or
57.9%, were from legacy DH.
Other expense, net was RMB21
million (US$3 million) in the three months ended June 30, 2020,
compared to other expense, net, of RMB102 million in the three
months ended March 31, 2020. Other expense, net, in the three
months ended March 31, 2020 was mainly related to impairment loss
on investments totaling RMB92 million. Compared to the second
quarter of 2019, the Company’s other income, net, decreased by
84.4% in the same period of 2020, primarily attributable to the
dividends the Company received from Accor’s shares in the second
quarter of 2019.
Unrealized losses from fair value
changes of equity securities decreased significantly from
RMB1,003 million in the three months ended March 31, 2020 to RMB34
million (US$5 million) in the three months ended June 30, 2020,
primarily because the prices of Accor’s shares decreased to a
lesser extent than in the first quarter of 2020. In comparison with
the three months ended June 30, 2020, the Company had unrealized
gains from fair value changes of equity securities in the same
period in 2019, primarily related to increases in the prices of
Accor’s shares.
Income tax benefit increased
from RMB30 million in the three months ended March 31, 2020 to
RMB68 million (US$10 million) in the three months ended June 30,
2020. The Company’s income tax expense was RMB286 million in the
three months ended June 30, 2019.
Net loss attributable to Huazhu Group
Limited was RMB548 million (US$76 million) in the three
months ended June 30, 2020, compared to net loss attributable to
Huazhu Group Limited of RMB2,135 million in the three months ended
March 31, 2020 and net income attributable to Huazhu Group Limited
of RMB613 million in the three months ended June 30, 2019.
Excluding share-based compensation expenses and the unrealized
losses from fair value changes of equity securities, the
adjusted net loss attributable to Huazhu
Group Limited (non-GAAP) for the three
months ended June 30, 2020 was RMB476 million (US$66 million),
compared to adjusted net loss attributable to Huazhu Group Limited
(non-GAAP) of RMB1.1 billion in the three months ended March 31,
2020 and adjusted net income attributable to our Company (non-GAAP)
of RMB495 million in the three months ended June 30, 2019.
EBITDA (non-GAAP) was negative
RMB169 million (US$23 million) in the three months ended June 30,
2020, compared to negative EBITDA (non-GAAP) of RMB1,736 million in
the three months ended March 31, 2020 and EBITDA (non-GAAP) of
RMB1,186 million in the three months ended June 30, 2019.
Adjusted EBITDA (non-GAAP) was negative RMB97
million (US$13 million) in the three months ended June 30, 2020,
compared to negative Adjusted EBITDA (non-GAAP) of RMB704 million
in the three months ended March 31, 2020 and Adjusted EBITDA
(non-GAAP) of RMB1,068 million in the three months ended June 30,
2019.
Cash flow. Net cash provided by
operating activities amounted to RMB512 million (US$74 million) in
the three months ended June 30, 2020, primarily attributable to net
loss of RMB554 million (US$77 million) mainly due to the impact of
COVID-19, and (i) an add-back of RMB470 million (US$66 million) in
changes in operating assets and liabilities and (ii) an add-back of
RMB359 million (US$51 million) in depreciation and amortization.
The Company’s cash used in investing activities of RMB281 million
(US$40 million) in the three months ended June 30, 2020 was
primarily related to RMB339 million (US$48 million) of capital
expenditure, including purchase of property and equipment. Net cash
provided by financing activities of RMB1,349 million (US$191
million) in the three months ended June 30, 2020 primarily
consisted of proceeds from debt of RMB4,291 million (US$607
million), including the convertible senior notes due 2026 in
aggregate principal amount of US$500 million which the Company
issued in May 2020, partially offset by its repayment of debt of
RMB2,930 million (US$414 million).
Cash and cash equivalents and Restricted
cash. As of June 30, 2020, the Company had a total balance
of cash and cash equivalents of RMB3.7 billion (US$524 million) and
restricted cash of RMB1.4 billion (US$194 million).
Debt financing. As of June 30,
2020, the Company had a total debt balance of RMB15.1 billion
(US$2.1 billion) and the unutilized credit facility available to
the Company was RMB5.3 billion. On April 17, 2020, the Company
obtained a leverage covenant waiver for its syndication loan, which
consisted of US$500 million and EUR440 million, due in December
2022. Pursuant to this waiver, the Company is restricted from
distributing cash dividends until June 30, 2021, among other
amended covenants. In addition, on June 30, 2020, the Company
obtained a leverage covenant waiver for an RMB1.2 billion loan due
in March 2024. This waiver restricts the Company’s ability to
distribute dividends in the second half of 2020, among other
amended covenants. On May 26, 2020, the Company issued US$500
million of convertible senior notes due 2026. The proceeds of these
convertible senior notes were partially used for the repayment of
the revolving portion of its syndicated bank borrowings.
Use of Non-GAAP Financial
Measures
To supplement the Company’s unaudited
consolidated financial results presented in accordance with U.S.
Generally Accepted Accounting Principles (or U.S. GAAP), the
Company uses the following non-GAAP measures defined as non-GAAP
financial measures by the U.S. Securities and Exchange Commission
(or SEC): adjusted net income (loss) attributable to Huazhu Group
Limited excluding share-based compensation expenses and unrealized
gains (losses) from fair value changes of equity securities;
adjusted basic and diluted earnings (loss) per share/ADS excluding
share-based compensation expenses and unrealized gains (losses)
from fair value changes of equity securities; EBITDA; and adjusted
EBITDA excluding share-based compensation expenses and unrealized
gains (losses) from fair value changes of equity securities. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with U.S. GAAP.
For more information on these non-GAAP financial measures, please
see the table captioned “Reconciliations of GAAP and non-GAAP
results” at the end of this release. The Company believes that
these non-GAAP financial measures provide meaningful supplemental
information regarding Company performance by excluding share-based
compensation expenses and unrealized gains (losses) from fair value
changes of equity securities that may not be indicative of Company
operating performance. The Company believes that both management
and investors benefit from referring to these non-GAAP financial
measures in assessing Company performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management’s internal comparisons to the Company’s
historical performance. The Company believes these non-GAAP
financial measures are also useful to investors in allowing for
greater transparency with respect to supplemental information used
regularly by Company management in financial and operational
decision-making. A limitation of using non-GAAP financial measures
excluding share-based compensation expenses and unrealized gains
(losses) from fair value changes of equity securities is that
share-based compensation expenses and unrealized gains (losses)
from fair value changes of equity securities have been and will
continue to be significant and recurring in the Company’s business.
Management compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from each non-GAAP
measure. The accompanying tables have more details on the
reconciliations between GAAP financial measures that are most
directly comparable to non-GAAP financial measures.
The Company believes that EBITDA is a useful
financial metric to assess the operating and financial performance
before reflecting the effects of investing and financing
transactions and income taxes, given the significant investments
that the Company has made in leasehold improvements, depreciation
and amortization expense that comprise a significant portion of the
Company’s cost structure. In addition, the Company believes that
EBITDA is widely used by other companies in the lodging and other
industry, and may be used by investors and Company management as a
measure of financial performance. The Company believes that EBITDA
provides investors with a useful tool for comparability between
periods because it eliminates depreciation and amortization expense
attributable to capital expenditures. The Company also uses
adjusted EBITDA, which is defined as EBITDA before share-based
compensation expenses and unrealized gains (losses) from fair value
changes of equity securities, to assess operating results of its
hotels in operation. The Company believes that the exclusion of
share-based compensation expenses and unrealized gains (losses)
from fair value changes of equity securities helps facilitate
year-on-year comparison of the results of operations as the
share-based compensation expenses and unrealized gains (losses)
from fair value changes of equity securities may not be indicative
of Company operating performance.
The Company believes that unrealized gains and
losses from changes in fair value of equity securities have little
analytical or predictive value in understanding its reported
results or evaluating the economic performance of its businesses.
These gains and losses have caused and will continue to cause
significant volatility in reported periodic earnings.
Therefore, the Company believes that adjusted
EBITDA more closely reflects the performance capability of its
hotels. The presentation of EBITDA and adjusted EBITDA should not
be construed as an indication that the Company’s future results
will be unaffected by other charges and gains considered to be
outside the ordinary course of business.
The use of EBITDA and adjusted EBITDA has
certain limitations. Depreciation and amortization expense for
various long-term assets (including land use rights), income tax,
interest expense and interest income have been and will be incurred
and are not reflected in the presentation of EBITDA. Share-based
compensation expenses and unrealized gains (losses) from fair value
changes of equity securities have been and will be incurred and are
not reflected in the presentation of adjusted EBITDA. Each of these
items should also be considered in the overall evaluation of the
results. The Company compensates for these limitations by providing
the relevant disclosure of the depreciation and amortization,
interest income, interest expense, income tax expense, share-based
compensation expenses, and unrealized gains (losses) from fair
value changes of equity securities and other relevant items both in
the reconciliations to the U.S. GAAP financial measures and in the
consolidated financial statements, all of which should be
considered when evaluating the performance of the Company.
The terms EBITDA and adjusted EBITDA are not
defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is
a measure of net income, operating income, operating performance or
liquidity presented in accordance with U.S. GAAP. When assessing
the operating and financial performance, investors should not
consider these data in isolation or as a substitute for the
Company’s net income, operating income or any other operating
performance measure that is calculated in accordance with U.S.
GAAP. In addition, the Company’s EBITDA or adjusted EBITDA may not
be comparable to EBITDA or adjusted EBITDA or similarly titled
measures utilized by other companies since such other companies may
not calculate EBITDA or adjusted EBITDA in the same manner as the
Company does.
Reconciliations of the Company’s non-GAAP
financial measures, including EBITDA and adjusted EBITDA, to the
consolidated statement of operations information are included at
the end of this press release.
About Huazhu Group Limited
Originated in China, Huazhu Group Limited is a
world-leading and fast-growing hotel group. As of June 30, 2020,
Huazhu operated 6,187 hotels with 599,235 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, and Blossom House. Upon
the completion of the Deutsche Hospitality acquisition 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 Huazhu
appoints, and 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
June 30, 2020, Huazhu operated approximately 17 percent of its
hotel rooms under lease and ownership model, and 83 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, including statements regarding the Company’s capital
needs, business strategy and expectations. 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. Any or all of the Company’s forward-looking statements may
turn out to be wrong. They can be affected by inaccurate
assumptions, risks and uncertainties and other factors which could
cause actual events or results to be materially different from
those expressed or implied in the forward-looking statements. In
evaluating these statements, readers should consider various
factors, including the anticipated growth strategies of the
Company, the future results of operations and financial condition
of the Company, the economic conditions of China, the regulatory
environment in China, the Company’s ability to attract customers
and leverage its brands, trends and competition in the lodging
industry, the expected growth of demand for lodging in China and
other factors and risks outlined in the Company’s filings with the
SEC, including the Company’s annual report on Form 20-F and other
filings. These factors may cause the Company’s actual results to
differ materially from any forward-looking statement. In addition,
new factors emerge from time to time and it is not possible for the
Company to predict all factors that may cause actual results to
differ materially from those contained in any forward-looking
statements. Any projections in this release are based on limited
information currently available to the Company, which is subject to
change. This release also contains statements or projections that
are based upon information available to the public, as well as
other information from sources which the Company believes to be
reliable, but it is not guaranteed by the Company to be accurate,
nor does the Company purport it to be complete. The Company
disclaims any obligation to publicly update any forward-looking
statements to reflect events or circumstances after the date of
this document, except as required by applicable law.
Contact InformationInvestor RelationsTel: +86
(21) 6195 9561Email: ir@huazhu.comhttp://ir.huazhu.com
---Financial Tables and Operational Data
Follow—
Huazhu Group Limited |
Unaudited Condensed Consolidated Balance
Sheets |
|
|
December 31, 2019 |
|
June 30, 2020 |
|
RMB |
|
|
RMB |
|
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
3,234 |
|
|
3,699 |
|
|
|
524 |
|
Restricted cash |
10,765 |
|
|
1,368 |
|
|
|
194 |
|
Short-term investments |
2,908 |
|
|
1,504 |
|
|
|
213 |
|
Accounts receivable, net |
218 |
|
|
426 |
|
|
|
60 |
|
Loan receivables, net |
193 |
|
|
238 |
|
|
|
34 |
|
Amounts due from related parties |
182 |
|
|
182 |
|
|
|
26 |
|
Inventories |
57 |
|
|
92 |
|
|
|
13 |
|
Income tax receivables |
- |
|
|
3 |
|
|
|
0 |
|
Other current assets, net |
699 |
|
|
854 |
|
|
|
121 |
|
Total current assets |
18,256 |
|
|
8,366 |
|
|
|
1,185 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
5,854 |
|
|
6,568 |
|
|
|
930 |
|
Intangible assets, net |
1,662 |
|
|
5,928 |
|
|
|
839 |
|
Operating lease right-of-use assets |
20,875 |
|
|
29,321 |
|
|
|
4,150 |
|
Finance lease right-of-use assets |
- |
|
|
1,792 |
|
|
|
254 |
|
Land use rights, net |
215 |
|
|
211 |
|
|
|
30 |
|
Long-term investments |
1,929 |
|
|
1,888 |
|
|
|
267 |
|
Goodwill |
2,657 |
|
|
5,402 |
|
|
|
765 |
|
Loan receivables, net |
280 |
|
|
270 |
|
|
|
38 |
|
Other assets, net |
707 |
|
|
740 |
|
|
|
105 |
|
Deferred tax assets |
548 |
|
|
857 |
|
|
|
121 |
|
Total assets |
52,983 |
|
|
61,343 |
|
|
|
8,684 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Short-term debt |
8,499 |
|
|
5,821 |
|
|
|
824 |
|
Accounts payable |
1,176 |
|
|
1,343 |
|
|
|
190 |
|
Amounts due to related parties |
95 |
|
|
92 |
|
|
|
13 |
|
Salary and welfare payables |
491 |
|
|
505 |
|
|
|
72 |
|
Deferred revenue |
1,179 |
|
|
1,280 |
|
|
|
181 |
|
Operating lease liabilities, current |
3,082 |
|
|
3,452 |
|
|
|
489 |
|
Finance lease liabilities, current |
- |
|
|
27 |
|
|
|
4 |
|
Accrued expenses and other current liabilities |
1,856 |
|
|
1,700 |
|
|
|
241 |
|
Dividends payable |
678 |
|
|
- |
|
|
|
- |
|
Income tax payable |
231 |
|
|
131 |
|
|
|
18 |
|
Total current liabilities |
17,287 |
|
|
14,351 |
|
|
|
2,032 |
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
8,084 |
|
|
9,240 |
|
|
|
1,308 |
|
Operating lease liabilities, noncurrent |
18,496 |
|
|
27,553 |
|
|
|
3,900 |
|
Finance lease liabilities, noncurrent |
- |
|
|
2,210 |
|
|
|
313 |
|
Deferred revenue |
559 |
|
|
553 |
|
|
|
78 |
|
Other long-term liabilities |
566 |
|
|
687 |
|
|
|
97 |
|
Deferred tax liabilities |
491 |
|
|
1,820 |
|
|
|
258 |
|
Retirement benefit obligations |
- |
|
|
123 |
|
|
|
17 |
|
Total liabilities |
45,483 |
|
|
56,537 |
|
|
|
8,003 |
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
Ordinary shares |
0 |
|
|
0 |
|
|
|
0 |
|
Treasury shares |
(107 |
) |
|
(107 |
) |
|
|
(15 |
) |
Additional paid-in capital |
3,834 |
|
|
3,901 |
|
|
|
552 |
|
Retained earnings |
3,701 |
|
|
1,011 |
|
|
|
144 |
|
Accumulated other comprehensive income (loss) |
(49 |
) |
|
(69 |
) |
|
|
(10 |
) |
Total Huazhu Group Limited shareholders' equity |
7,379 |
|
|
4,736 |
|
|
|
671 |
|
Noncontrolling interest |
121 |
|
|
70 |
|
|
|
10 |
|
Total equity |
7,500 |
|
|
4,806 |
|
|
|
681 |
|
Total liabilities and equity |
52,983 |
|
|
61,343 |
|
|
|
8,684 |
|
Huazhu Group Limited |
Unaudited Condensed Consolidated Statements of
Comprehensive Income |
|
Quarter Ended |
|
June 30, 2019 |
|
March 31, 2020 |
|
June 30, 2020 |
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
(in millions, except share, per share and per ADS
data) |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Leased and owned hotels |
2,001 |
|
|
1,516 |
|
|
1,236 |
|
|
175 |
|
Manachised and franchised hotels |
803 |
|
|
465 |
|
|
676 |
|
|
96 |
|
Others |
55 |
|
|
32 |
|
|
41 |
|
|
6 |
|
Net revenues |
2,859 |
|
|
2,013 |
|
|
1,953 |
|
|
277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Hotel operating costs: |
|
|
|
|
|
|
|
|
|
|
|
Rents |
(646 |
) |
|
(866 |
) |
|
(833 |
) |
|
(118 |
) |
Utilities |
(79 |
) |
|
(132 |
) |
|
(91 |
) |
|
(13 |
) |
Personnel costs |
(453 |
) |
|
(643 |
) |
|
(508 |
) |
|
(72 |
) |
Depreciation and amortization |
(237 |
) |
|
(311 |
) |
|
(320 |
) |
|
(45 |
) |
Consumables, food and beverage |
(201 |
) |
|
(191 |
) |
|
(185 |
) |
|
(26 |
) |
Others |
(127 |
) |
|
(234 |
) |
|
(198 |
) |
|
(28 |
) |
Total hotel operating costs |
(1,743 |
) |
|
(2,377 |
) |
|
(2,135 |
) |
|
(302 |
) |
Other operating costs |
(17 |
) |
|
(8 |
) |
|
(7 |
) |
|
(1 |
) |
Selling and marketing expenses |
(102 |
) |
|
(146 |
) |
|
(107 |
) |
|
(15 |
) |
General and administrative expenses |
(247 |
) |
|
(316 |
) |
|
(263 |
) |
|
(37 |
) |
Pre-opening expenses |
(122 |
) |
|
(111 |
) |
|
(99 |
) |
|
(14 |
) |
Total operating costs and expenses |
(2,231 |
) |
|
(2,958 |
) |
|
(2,611 |
) |
|
(369 |
) |
Other operating income (expense), net |
29 |
|
|
88 |
|
|
164 |
|
|
23 |
|
Income (Losses) from operations |
657 |
|
|
(857 |
) |
|
(494 |
) |
|
(69 |
) |
Interest income |
41 |
|
|
29 |
|
|
26 |
|
|
4 |
|
Interest expense |
(83 |
) |
|
(137 |
) |
|
(142 |
) |
|
(20 |
) |
Other (expense) income, net |
135 |
|
|
(102 |
) |
|
21 |
|
|
3 |
|
Unrealized gains (losses) from fair value changes of equity
securities |
149 |
|
|
(1,003 |
) |
|
(34 |
) |
|
(5 |
) |
Foreign exchange gain (loss) |
35 |
|
|
(58 |
) |
|
34 |
|
|
5 |
|
Income (Loss) before income taxes |
934 |
|
|
(2,128 |
) |
|
(589 |
) |
|
(82 |
) |
Income tax (expense) benefit |
(286 |
) |
|
30 |
|
|
68 |
|
|
10 |
|
Gain (Loss) from equity method investments |
(43 |
) |
|
(60 |
) |
|
(33 |
) |
|
(5 |
) |
Net income (loss) |
605 |
|
|
(2,158 |
) |
|
(554 |
) |
|
(77 |
) |
Net (income) loss attributable to noncontrolling interest |
8 |
|
|
23 |
|
|
6 |
|
|
1 |
|
Net income (loss) attributable to Huazhu Group Limited |
613 |
|
|
(2,135 |
) |
|
(548 |
) |
|
(76 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
Gain arising from defined benefit plan, net of tax |
- |
|
|
3 |
|
|
4 |
|
|
1 |
|
Foreign currency translation adjustments, net of tax |
(64 |
) |
|
(69 |
) |
|
43 |
|
|
6 |
|
Comprehensive income (loss) |
541 |
|
|
(2,224 |
) |
|
(507 |
) |
|
(70 |
) |
Comprehensive (income) loss attributable to noncontrolling
interest |
8 |
|
|
23 |
|
|
6 |
|
|
1 |
|
Comprehensive income (loss) attributable to Huazhu Group
Limited |
549 |
|
|
(2,201 |
) |
|
(501 |
) |
|
(69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Losses) per share/ADS: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
2.16 |
|
|
(7.46 |
) |
|
(1.91 |
) |
|
(0.27 |
) |
Diluted |
2.05 |
|
|
(7.46 |
) |
|
(1.91 |
) |
|
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation: |
|
|
|
|
|
|
|
|
Basic |
284,029,267 |
|
|
286,013,704 |
|
|
286,473,344 |
|
|
286,473,344 |
|
Diluted |
304,526,084 |
|
|
286,013,704 |
|
|
286,473,344 |
|
|
286,473,344 |
|
Huazhu Group Limited |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
Quarter Ended |
|
June 30, 2019 |
|
March 31, 2020 |
|
June 30, 2020 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
(in millions) |
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
605 |
|
|
(2,158 |
) |
|
(554 |
) |
|
(77 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
31 |
|
|
29 |
|
|
38 |
|
|
5 |
|
Depreciation and amortization, and other |
252 |
|
|
336 |
|
|
359 |
|
|
51 |
|
Impairment loss |
- |
|
|
102 |
|
|
16 |
|
|
2 |
|
Loss from equity method investments, net of dividends |
43 |
|
|
60 |
|
|
33 |
|
|
5 |
|
Investment (income) loss |
(194 |
) |
|
1,088 |
|
|
(11 |
) |
|
(1 |
) |
Changes in operating assets and liabilities |
382 |
|
|
(1,275 |
) |
|
470 |
|
|
66 |
|
Other |
42 |
|
|
472 |
|
|
161 |
|
|
23 |
|
Net cash provided by (used in) operating activities |
1,161 |
|
|
(1,346 |
) |
|
512 |
|
|
74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
(301 |
) |
|
(484 |
) |
|
(339 |
) |
|
(48 |
) |
Acquisitions, net of cash received |
(25 |
) |
|
(5,056 |
) |
|
(0 |
) |
|
(0 |
) |
Purchase of long-term investments |
(148 |
) |
|
- |
|
|
(0 |
) |
|
(0 |
) |
Proceeds from maturity/sale of long-term investments |
- |
|
|
336 |
|
|
35 |
|
|
5 |
|
Loan advances |
(149 |
) |
|
(58 |
) |
|
(24 |
) |
|
(3 |
) |
Loan collections |
66 |
|
|
24 |
|
|
47 |
|
|
6 |
|
Other |
4 |
|
|
3 |
|
|
- |
|
|
- |
|
Net cash provided by (used in) investing activities |
(553 |
) |
|
(5,235 |
) |
|
(281 |
) |
|
(40 |
) |
Financing activities: |
7 |
|
|
0 |
|
|
0 |
|
|
0 |
|
Net proceeds from issuance of ordinary shares upon exercise of
options |
- |
|
|
- |
|
|
- |
|
|
- |
|
Proceeds from debt |
1,682 |
|
|
836 |
|
|
4,291 |
|
|
607 |
|
Repayment of debt |
(2,756 |
) |
|
(4,023 |
) |
|
(2,930 |
) |
|
(414 |
) |
Dividend paid |
- |
|
|
(677 |
) |
|
- |
|
|
- |
|
Other |
13 |
|
|
(29 |
) |
|
(12 |
) |
|
(2 |
) |
Net cash provided by (used in) financing activities |
(1,054 |
) |
|
(3,893 |
) |
|
1,349 |
|
|
191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
54 |
|
|
(50 |
) |
|
12 |
|
|
2 |
|
Net increase (decrease) in cash, cash equivalents and restricted
cash |
(392 |
) |
|
(10,524 |
) |
|
1,592 |
|
|
227 |
|
Cash, cash equivalents and restricted cash at the beginning of the
period |
4,457 |
|
|
13,999 |
|
|
3,475 |
|
|
491 |
|
Cash, cash equivalents and restricted cash at the end of the
period |
4,065 |
|
|
3,475 |
|
|
5,067 |
|
|
718 |
|
Huazhu Group Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended |
|
June 30, 2019 |
|
March 31, 2020 |
|
June 30, 2020 |
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
(in millions, except shares, per share and per ADS
data) |
Net income (loss) attributable to Huazhu Group Limited (GAAP) |
613 |
|
|
(2,135 |
) |
|
(548 |
) |
|
(76 |
) |
Share-based compensation expenses |
31 |
|
|
29 |
|
|
38 |
|
|
5 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
(149 |
) |
|
1,003 |
|
|
34 |
|
|
5 |
|
Adjusted net income (loss) attributable to Huazhu Group Limited
(non-GAAP) |
495 |
|
|
(1,103 |
) |
|
(476 |
) |
|
(66 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings (losses) per share/ADS (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Basic |
1.74 |
|
|
(3.85 |
) |
|
(1.66 |
) |
|
(0.24 |
) |
Diluted |
1.66 |
|
|
(3.85 |
) |
|
(1.66 |
) |
|
(0.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation |
|
|
|
|
|
|
|
|
|
|
|
Basic |
284,029,267 |
|
|
286,013,704 |
|
|
286,473,344 |
|
|
286,473,344 |
|
Diluted |
304,526,084 |
|
|
286,013,704 |
|
|
286,473,344 |
|
|
286,473,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
June 30, 2019 |
|
March 31, 2020 |
|
June 30, 2020 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
(in millions, except per share and per ADS
data) |
Net income (loss) attributable to Huazhu Group Limited
(GAAP) |
613 |
|
|
(2,135 |
) |
|
(548 |
) |
|
(76 |
) |
Interest income |
(41 |
) |
|
(29 |
) |
|
(26 |
) |
|
(4 |
) |
Interest expense |
83 |
|
|
137 |
|
|
142 |
|
|
20 |
|
Income tax expense (benefit) |
286 |
|
|
(30 |
) |
|
(68 |
) |
|
(10 |
) |
Depreciation and amortization |
245 |
|
|
321 |
|
|
331 |
|
|
47 |
|
EBITDA (non-GAAP) |
1,186 |
|
|
(1,736 |
) |
|
(169 |
) |
|
(23 |
) |
Share-based compensation |
31 |
|
|
29 |
|
|
38 |
|
|
5 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
(149 |
) |
|
1,003 |
|
|
34 |
|
|
5 |
|
Adjusted EBITDA (non-GAAP) |
1,068 |
|
|
(704 |
) |
|
(97 |
) |
|
(13 |
) |
|
Operating Results: Legacy Huazhu |
|
Number of hotels |
|
Number of rooms |
|
Opened |
Closed (1) |
Net added |
As of |
|
As of |
|
in Q2 2020 |
in Q2 2020 |
in Q2 2020 |
June 30, 2020 (2) |
|
June 30, 2020 |
Leased and owned hotels |
9 |
(8 |
) |
1 |
690 |
|
89,599 |
Manachised and franchised hotels |
419 |
(187 |
) |
232 |
5,381 |
|
486,312 |
Total |
428 |
(195 |
) |
233 |
6,071 |
|
575,911 |
(1) The reasons for hotel closures mainly include
non-compliance to brand standards, operating losses, and
property-related issues. In Q2 2020, we had 45 hotels closed for
brand upgrade and business model change purposes(2) As
of June 30, 2020, 139 hotels were requisitioned by the government
authorities |
|
As of June 30, 2020 |
|
Number of hotels |
Unopened hotels in pipeline |
Economy hotels |
4,127 |
1,123 |
Leased and owned hotels |
455 |
5 |
Manachised and franchised hotels |
3,672 |
1,118 |
Midscale and upscale hotels |
1,944 |
1,212 |
Leased and owned hotels |
235 |
22 |
Manachised and franchised hotels |
1,709 |
1,190 |
Total |
6,071 |
2,335 |
|
Operational hotels (excluding hotels under
requisition) |
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
yoy |
|
2019 |
2020 |
2020 |
change |
Average daily room rate (in RMB) |
|
|
|
|
Leased and owned hotels |
281 |
211 |
205 |
-27.3% |
Manachised and franchised hotels |
225 |
184 |
181 |
-19.8% |
Blended |
236 |
189 |
185 |
-22.0% |
Occupancy rate (as a percentage) |
|
|
|
|
Leased and owned hotels |
89.4% |
43.8% |
67.4% |
-22.1p.p. |
Manachised and franchised hotels |
86.3% |
47.4% |
69.1% |
-17.2p.p. |
Blended |
86.9% |
46.7% |
68.8% |
-18.1p.p. |
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
252 |
92 |
138 |
-45.2% |
Manachised and franchised hotels |
194 |
87 |
125 |
-35.8% |
Blended |
206 |
88 |
127 |
-38.2% |
|
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 of |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
|
yoy |
|
June 30, |
ended June 30, |
change |
ended June 30, |
change |
ended June 30, |
|
change |
|
2019 |
2020 |
2019 |
2020 |
|
2019 |
2020 |
|
2019 |
|
2020 |
|
|
(p.p.) |
Economy hotels |
2,552 |
2,552 |
175 |
102 |
-41.6 |
% |
191 |
143 |
-25.0 |
% |
91.9 |
% |
71.5 |
% |
|
-20.4 |
Leased and owned hotels |
419 |
419 |
199 |
106 |
-46.7 |
% |
214 |
151 |
-29.5 |
% |
93.1 |
% |
70.4 |
% |
|
-22.8 |
Manachised and franchised hotels |
2,133 |
2,133 |
169 |
101 |
-40.1 |
% |
185 |
141 |
-23.6 |
% |
91.6 |
% |
71.9 |
% |
|
-19.8 |
Midscale and upscale hotels |
987 |
987 |
281 |
169 |
-39.9 |
% |
333 |
252 |
-24.2 |
% |
84.4 |
% |
66.9 |
% |
|
-17.5 |
Leased and owned hotels |
185 |
185 |
348 |
177 |
-49.1 |
% |
404 |
279 |
-30.9 |
% |
86.1 |
% |
63.5 |
% |
|
-22.6 |
Manachised and franchised hotels |
802 |
802 |
260 |
166 |
-36.0 |
% |
310 |
244 |
-21.1 |
% |
83.9 |
% |
68.0 |
% |
|
-15.8 |
Total |
3,539 |
3,539 |
211 |
125 |
-40.8 |
% |
236 |
178 |
-24.4 |
% |
89.4 |
% |
70.0 |
% |
|
-19.4 |
Operating Results: Legacy
DH
|
Number of
hotels |
|
Number of rooms |
|
Unopened hotels in pipeline |
|
Opened in Q2 2020 |
Closedin Q2 2020 |
Net added in Q2 2020 |
As of June 30, 2020(3) |
|
As of June 30, 2020 |
|
As ofJune 30, 2020 |
|
Leased
hotels |
1 |
- |
1 |
68 |
|
12,525 |
|
27 |
Manachised
and franchised hotels |
- |
- |
- |
48 |
|
10,799 |
|
13 |
Total |
1 |
- |
1 |
116 |
|
23,324 |
|
40 |
|
|
|
|
|
|
|
|
|
(3) As of June 30, 2020, a total of 24 hotels were
temporarily closed due to COVID-19 outbreak. |
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
yoy |
|
2019 |
2020 |
2020 |
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
108 |
97 |
82 |
-24.0% |
Manachised and franchised hotels |
89 |
80 |
97 |
8.6% |
Blended |
100 |
89 |
87 |
-13.4% |
Occupancy rate (as a percentage) |
|
|
|
|
Leased hotels |
74.3% |
52.6% |
18.7% |
-55.6p.p. |
Manachised and franchised hotels |
66.6% |
50.4% |
17.3% |
-49.3p.p. |
Blended |
70.7% |
51.7% |
18.3% |
-52.4p.p. |
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
81 |
51 |
15 |
-80.9% |
Manachised and franchised hotels |
59 |
40 |
17 |
-71.8% |
Blended |
71 |
46 |
16 |
-77.6% |
Hotel Portfolio by Brand |
|
|
As of June 30, 2020 |
|
Hotels |
Rooms |
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,140 |
347,498 |
1,132 |
HanTing Hotel |
2,638 |
246,979 |
523 |
Hi Inn |
464 |
27,388 |
102 |
Elan Hotel(4) |
838 |
51,484 |
434 |
Ibis Hotel |
187 |
20,201 |
64 |
Zleep Hotel |
13 |
1,446 |
9 |
Midscale and upscale hotels |
2,047 |
251,737 |
1,243 |
Ibis Styles Hotel |
60 |
7,093 |
30 |
Starway Hotel |
392 |
34,323 |
288 |
JI Hotel |
926 |
115,928 |
478 |
Orange Hotel |
265 |
30,418 |
180 |
Crystal Orange Hotel |
99 |
13,255 |
57 |
Manxin Hotel |
53 |
4,966 |
34 |
Madison Hotel |
18 |
2,929 |
23 |
Mercure Hotel |
80 |
13,877 |
76 |
Novotel Hotel |
11 |
3,246 |
11 |
Joya Hotel |
9 |
1,588 |
3 |
Blossom House |
25 |
919 |
24 |
Grand Mercure Hotel |
6 |
1,317 |
8 |
Steigenberger Hotels & Resorts |
50 |
11,909 |
8 |
IntercityHotel |
42 |
7,537 |
19 |
Maxx by Steigenberger |
5 |
777 |
1 |
Jaz in the City |
2 |
424 |
2 |
Other partner hotels |
4 |
1,231 |
1 |
Total |
6,187 |
599,235 |
2,375 |
(4) As of June 30, 2020, 17 Ni Hao hotels were
included in the pipeline of Elan Hotel. |
H World (NASDAQ:HTHT)
Historical Stock Chart
From Jun 2024 to Jul 2024
H World (NASDAQ:HTHT)
Historical Stock Chart
From Jul 2023 to Jul 2024