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H World Group Ltd 6-K, filed Jul 16, 2020

H World Group Ltd (HTHT)

6-K 2020-07-16 For: 2020-07-16
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Added on April 11, 2026

About this 6-K

H World Group Ltd filed this 6-K on July 16, 2020.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2020

Commission File Number: 001-34656

Huazhu Group Limited (Registrant's name)

No. 2266 Hongqiao RoadChangning DistrictShanghai 200336People's Republic of China(86) 21 6195-2011 (Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F [ X ]      Form 40-F [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (7):

EXHIBIT INDEX

Exhibit Number Description
Exhibit 99.1 Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Second Quarter of 2020

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Huazhu Group Limited
(Registrant)
Date: July 16, 2020 By: /s/ Qi Ji
Name: Qi Ji
Title: Executive Chairman of the Board of Directors, Chief Executive Officer

EdgarFiling EXHIBIT 99.1

Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Second Quarter of 2020

SHANGHAI, China, July 16, 2020 (GLOBE NEWSWIRE) -- Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu”, “we” or “our”), a world-leading hotel group, today announced preliminary results for hotel operations in the second quarter ended June 30, 2020.

COVID-19 Impact in Q2 2020 The recovery continued in Q2 2020, with our occupancy rate improving steadily from March through mid-June. Since June 11, 2020, however, there were new COVID-19 cases discovered in Beijing. Beijing reinstituted strict travel restrictions to curb the spread of COVID-19 once again. Since then, our occupancy rate in Beijing and its nearby cities and provinces, such as Tianjin and Heibei, was affected. Since early July, with the containment of mini outbreak of COVID-19 in Beijing, our occupancy rate in China gradually improved once again, reaching more than 80% by mid-July. As China kept COVID-19 largely under control, 97% hotels resumed operation in Q2 2020. As of June 30, 2020, Huazhu had 139 hotels under governmental requisition, compared to 374 as of March 31, 2020.

Deutsche Hospitality (“DH”) has been affected since the outbreak of COVID-19 in Europe since early March. At the end of March 2020, 74% or 85 of hotels of DH hotels were temporarily closed. With the containment of the pandemic, Germany and some European countries started to stop land border checks and remove travel restrictions, and the lodging industry in Europe started to recover. As of June 30, 2020, 21% or 24 of hotels of DH hotels were temporarily closed, including 5 leased hotels and 19 manachised and franchised hotels.

In the second quarter of 2020, Huazhu expects net revenues to decline 32% to 34% year-over-year or 35% to 37% if excluding the addition of Deutsche Hospitality.

Operating Results: Legacy-Huazhu

Number of hotels Number of rooms
Opened <br>in Q2 2020 Closed ^(1)^<br>in Q2 2020 Net added <br>in Q2 2020 As of <br>June 30, 2020 ^(2)^ As of <br>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<br>(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 <br>in Q2 2020 Closed<br>in Q2 2020 Net added <br>in Q2 2020 As of <br>June 30, 2020^(3)^ As of <br>June 30, 2020 As of<br>June 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.
--- --- --- ---
March 31, June 30, yoy
2020 2020 change
Average daily room rate  (in )
Leased hotels 97 82 -24.0%
Manachised and franchised hotels 80 97 8.6%
Blended 89 87 -13.4%
Occupancy rate (as a percentage)
Leased hotels 52.6% 18.7% -55.6p.p.
Manachised and franchised hotels 50.4% 17.3% -49.3p.p.
Blended 51.7% 18.3% -52.4p.p.
RevPAR  (in )
Leased hotels 51 15 -80.9%
Manachised and franchised hotels 40 17 -71.8%
Blended 46 16 -77.6%

All values are in Euros.

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 H hotels were included in the pipeline of Elan Hotel.

About Huazhu Group Limited Originated in China, Huazhu Group Limited is a world-leading hotel operator and franchisor. As of June 30, 2020, Huazhu operated 6,187 hotels with 599,235 rooms in operation in 15 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 Deutsche Hospitality acquisition on January 2, 2020, Huazhu added 5 brands to our 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 operates 17 percent of its hotel rooms under lease and ownership model, and 83 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; the 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 Information Huazhu Investor Relations Tel: 86 (21) 6195 9561 Email: ir@huazhu.com http://ir.huazhu.com