Huazhu Group Announces Formation of Special Committee
25 September 2020 - 11:13PM
Huazhu Group Limited (Nasdaq: HTHT), a leading and fast-growing
multi-brand hotel group in China with international coverage (the
“Company” or “Huazhu”), today announced that the Company’s board of
directors (the “Board”) had formed a special committee (the
“Special Committee”) to conduct an investigation of the allegations
raised in a short seller report issued by Bonitas Research LLC on
September 22, 2020 (the “Bonitas Report”). While the Company
believes the Bonitas Report is without merit and that it contains
numerous errors, unsubstantiated statements, and misleading
conclusions regarding the Company’s business and operations, the
Board decided to form the Special Committee to review the
allegations in the Bonitas Report and to conduct any related
investigation, in order to provide transparency to the
shareholders.
The Special Committee is comprised of three members, including
the chairman of the audit committee, the chief financial officer,
and the secretary and general counsel of the Company, and is
chaired by the chairman of the Company’s audit committee. The
Special Committee is authorized to retain outside legal, accounting
and other advisors. Cleary Gottlieb Steen & Hamilton LLP has
been retained as the Special Committee’s independent outside
counsel. The Company will release the results of the internal
investigation in due course once it is completed.
Based on guidance from the Hong Kong Stock Exchange for issuers
subject to market commentaries or rumours, the Company will also
make a preliminary submission to the Hong Kong Stock Exchange
identifying several key errors in the Bonitas Report. The Company
will also, at the request of the Hong Kong Stock Exchange, publish
in due course a clarification announcement describing those errors
on the websites of the Hong Kong Stock Exchange and the Company.
The Company will then promptly furnish the clarification
announcement on Form 6-K with the U.S. Securities and Exchange
Commission.
About Huazhu Group
Limited
Originated in China, Huazhu Group Limited is a world-leading
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, Blossom House, and Ni Hao Hotel. Upon the completion of
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.
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, including
statements regarding the Company’s 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
incorrect. 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 and Europe, the regulatory environment in China
and Europe, the Company’s ability to attract customers and leverage
its brands, trends and competition in the lodging industry, the
expected growth of the lodging market in China and Europe, the
spread and impact of COVID-19, and other factors and risks outlined
in the Company’s filings with the Securities and Exchange
Commission, including its 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 InformationHuazhu Investor RelationsTel: +86 (21) 6195
9561Email: ir@huazhu.comhttp://ir.huazhu.com
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