Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries H World Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2022 By: H World Group Limited via GlobeNewswire January 31, 2023 at 06:15 AM EST SHANGHAI, China, Jan. 31, 2023 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”), a key player in the global hotel industry, today announced preliminary results for hotel operations in the fourth quarter (“Q4 2022”) and the full year ended December 31, 2022. COVID-19 update For our Legacy-Huazhu business, our RevPAR in Q4 2022 recovered to 83% of the 2019 level. The recovery was accelerated after Chinese Government announced the reopening policy in mid-November. Breaking down into each month, our RevPAR in October, November and December 2022 recovered to 74%, 87% and 91% of the 2019 levels, respectively. The trend continued during the Spring Festival holiday with RevPAR recovered to roughly 95% of 2019 seven days’ holiday period. Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”) have experienced a seasonal slowdown of RevPAR recovery in Q4 2022. Blended RevPAR recovered to 110% of 2019 levels in Q4, driven by the Steigenberger hotels in Qatar and Egypt. Excluding the effects of the FIFA World Cup and the COP27 UN Climate Conference, the RevPAR recovered to 100% of 2019 levels. RevPAR recovery continues to be driven by ADR increases while occupancy levels still remain behind the levels achieved in 2019. The ongoing reduction of energy-related risks eases energy prices in Europe. However, inflation is continuing to impact operating costs. We will bridge the rising cost through further rate increases as well as an ongoing focus on cost reduction, process optimization and stringent cash management.Operating Results: Legacy-Huazhu(1) Number of hotels Number of rooms Opened in Q4 2022 Closed (2)in Q4 2022Net added in Q4 2022As of December 31, 2022 (3) As of December 31, 2022 Leased and owned hotels5 (13)(8)623 89,638Manachised and franchised hotels239 (96)143 7,788 693,536Total244 (109)135 8,411 783,174(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 Q4 2022, we temporarily closed 10 hotels for brand upgrade and business model change purposes.(3) As of December 31, 2022, 572 hotels were requisitioned by governmental authorities. As of December 31, 2022 Number of hotels Unopened hotels in pipeline Economy hotels4930 1053Leased and owned hotels353 1Manachised and franchised hotels4577 1052Midscale and upscale hotels3481 1491Leased and owned hotels270 13Manachised and franchised hotels3211 1478Total8411 2544 Operational hotels excluding hotels under requisition(4) For the quarter ended December 31,September 30,December 31,yoy 2021 2022 2022 changeAverage daily room rate (in RMB) Leased and owned hotels286 294 279 -2.6%Manachised and franchised hotels232 248 236 1.4%Blended239 254 240 0.4%Occupancy Rate (as a percentage) Leased and owned hotels67.4%73.1%63.1%-4.3p.p.Manachised and franchised hotels68.4%76.4%66.6%-1.8p.p.Blended68.2%76.0%66.2%-2.0p.p.RevPAR (in RMB) Leased and owned hotels193 215 176 -8.8%Manachised and franchised hotels159 190 157 -1.2%Blended163 193 159 -2.6% For the quarter ended December 31,December 31,yoy 2019 2022 changeAverage daily room rate (in RMB) Leased and owned hotels277 279 0.5%Manachised and franchised hotels223 236 5.9%Blended232 240 3.6%Occupancy Rate (as a percentage) Leased and owned hotels84.7%63.1%-21.6p.p.Manachised and franchised hotels81.6%66.6%-15.0p.p.Blended82.2%66.2%-16.0p.p.RevPAR (in RMB) Leased and owned hotels235 176 -25.2%Manachised and franchised hotels182 157 -13.6%Blended191 159 -16.6% (4) If including hotels under requisition, RevPAR in Q4 2022 would have been 85% of the 2019 level. Operational hotels excluding hotels under requisition(5) For full year ended December 31,December 31,yoy 2021 2022 change Average daily room rate (in RMB) Leased and owned hotels286 272 -5.1% Manachised and franchised hotels232 231 -0.2% Blended239 236 -1.3% Occupancy Rate (as a percentage) Leased and owned hotels70.6%63.9%-6.7p.p. Manachised and franchised hotels72.4%67.1%-5.4p.p. Blended72.2%66.7%-5.5p.p. RevPAR (in RMB) Leased and owned hotels202 174 -14.1% Manachised and franchised hotels168 155 -7.6% Blended172 157 -8.8% For full year ended December 31,December 31,yoy 2019 2022 changeAverage daily room rate (in RMB) Leased and owned hotels276 272 -1.8%Manachised and franchised hotels224 231 3.0%Blended234 236 0.6%Occupancy Rate (as a percentage) Leased and owned hotels87.0%63.9%-23.0p.p.Manachised and franchised hotels83.8%67.1%-16.7p.p.Blended84.4%66.7%-17.7p.p.RevPAR (in RMB) Leased and owned hotels240 174 -27.8%Manachised and franchised hotels188 155 -17.5%Blended198 157 -20.5% (5) If including hotels under requisition, RevPAR in 2022 would have been 82% 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 hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the quarter yoyFor the quarter yoyFor the quarter yoy ended December 31,changeended December 31,changeended December 31,change 2021202220212022 20212022 2021 2022 (p.p.)Economy hotels3,1993,199137123-10.1%183181-1.0%75.0%68.1%-6.9Leased and owned hotels335335148132-11.1%204199-2.6%72.5%66.2%-6.4Manachised and franchised hotels2,8642,864135122-9.9%179178-0.7%75.5%68.5%-7.0Midscale and upscale hotels2,0972,097215196-8.6%313301-3.8%68.6%65.1%-3.4Leased and owned hotels227227245222-9.5%387361-6.8%63.4%61.5%-1.9Manachised and franchised hotels1,8701,870209192-8.4%301292-3.2%69.5%65.7%-3.7Total5,2965,296174158-9.2%241236-2.0%72.0%66.7%-5.3 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the quarter yoyFor the quarter yoyFor the quarter yoy ended December 31,changeended December 31,changeended December 31,change 2019202220192022 20192022 2019 2022 (p.p.)Economy hotels1,9691,969167122-26.8%188180-4.1%88.6%67.6%-21.0Leased and owned hotels324324189130-31.5%215197-8.3%88.0%65.8%-22.2Manachised and franchised hotels1,6451,645161120-25.4%181176-2.8%88.8%68.1%-20.7Midscale and upscale hotels1,0091,009272192-29.4%325300-7.9%83.5%64.0%-19.5Leased and owned hotels166166329202-38.7%395335-15.3%83.3%60.3%-23.0Manachised and franchised hotels843843256189-26.1%307291-5.1%83.5%65.0%-18.5Total2,9782,978209150-28.0%241227-5.8%86.6%66.2%-20.4 Same-hotel operational data by class Mature hotels in operation for more than 18 months (excluding hotels under requisition) Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the year yoyFor the year yoyFor the year yoy ended December 31,changeended December 31,changeended December 31,change 2021202220212022 20212022 2021 2022 (p.p.)Economy hotels3,1993,199142123-13.6%183176-3.6%77.5%69.5%-8.0Leased and owned hotels335335155133-14.1%207194-6.3%74.5%68.3%-6.2Manachised and franchised hotels2,8642,864139121-13.5%179173-3.1%78.0%69.7%-8.3Midscale and upscale hotels2,0972,097224196-12.4%315301-4.4%71.0%65.0%-6.0Leased and owned hotels227227255219-14.1%386362-6.3%66.1%60.6%-5.5Manachised and franchised hotels1,8701,870218191-12.0%303291-3.9%71.9%65.8%-6.1Total5,2965,296179156-13.0%240231-3.8%74.6%67.5%-7.1 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the year yoyFor the year yoyFor the year yoy ended December 31,changeended December 31,changeended December 31,change 2019202220192022 20192022 2019 2022 (p.p.)Economy hotels1,9691,969174121-30.5%192176-8.7%90.7%69.0%-21.7Leased and owned hotels324324195130-33.3%215191-10.9%90.8%68.0%-22.8Manachised and franchised hotels1,6451,645169119-29.6%186171-7.9%90.6%69.3%-21.4Midscale and upscale hotels1,0091,009276190-31.2%331300-9.5%83.2%63.3%-19.9Leased and owned hotels166166334200-40.0%396338-14.6%84.2%59.1%-25.1Manachised and franchised hotels843843258187-27.6%311289-7.1%82.9%64.6%-18.3Total2,9782,978212147-30.8%241219-9.0%87.9%66.9%-21.0 Operating Results: Legacy-DH(6) Number of hotels Number of rooms Unopened hotels in pipeline Opened in Q4 2022 Closedin Q4 2022Net added in Q4 2022 As of December 31, 2022(7) As of December 31,2022 As ofDecember 31,2022 Leased hotels2 - 2 81 15,328 26Manachised and franchised hotels4 - 4 51 10,976 10 Total6 - 6 132 26,304 36(6) Legacy-DH refers to DH. (7) As of December 31, 2022, a total of 3 hotels were temporarily closed. 1 hotel was closed due to flood damage, 1 hotel was closed due to extensive hotel refurbishment, and 1 hotel was closed due to repairment. For the quarter ended December 31,September 30,December 31,yoy 2021 2022 2022 changeAverage daily room rate (in EUR) Leased hotels95 113 114 19.5%Manachised and franchised hotels93 116 134 44.6%Blended94 114 122 29.7%Occupancy rate (as a percentage) Leased hotels42.9%67.4%60.0%+17.1 p.p. Manachised and franchised hotels50.7%64.1%58.3%+7.6 p.p.Blended46.1%66.1%59.3%+13.2 p.p.RevPAR (in EUR) Leased hotels41 76 68 67.3% Manachised and franchised hotels47 74 78 66.2%Blended43 75 72 66.8% For full year ended December 31,December 31,yoy 2021 2022 changeAverage daily room rate (in EUR) Leased and owned hotels91 110 20.1%Manachised and franchised hotels89 113 26.6%Blended90 111 22.9%Occupancy Rate (as a percentage) Leased and owned hotels31.6%56.0%+24.4 p.p.Manachised and franchised hotels40.5%56.4%+15.9 p.p.Blended35.2%56.2%+21.0 p.p.RevPAR (in EUR) Leased and owned hotels29 61 112.6%Manachised and franchised hotels36 64 76.4%Blended32 62 96.2% Hotel Portfolio by Brand As of December 31, 2022 HotelsRoomsUnopened hotels in operationin pipelineEconomy hotels4,948389,3831,066HanTing Hotel3,257288,956652Hi Inn45623,998170Ni Hao Hotel15911,534199Elan Hotel83639,948-Ibis Hotel22222,82632Zleep Hotels182,12113Midscale hotels2,898317,1171,146Ibis Styles Hotel858,86425Starway Hotel56747,378242JI Hotel1,694199,581611Orange Hotel51956,035261CitiGO Hotel335,2597Upper midscale hotels53875,467286Crystal Orange Hotel16421,55257Manxin Hotel11210,60159Madison Hotel527,19564Mercure Hotel13721,19362Novotel Hotel174,42419IntercityHotel(8)5610,50225Upscale hotels13421,60972Jaz in the City35871Joya Hotel81,3681Blossom House532,32649Grand Mercure Hotel71,7265Steigenberger Hotels & Resorts(9)5414,0408MAXX (10)91,5628Luxury hotels152,3185Steigenberger Icon(11)91,8471Song Hotels64714Others103,5845Other hotels(12)103,5845Total8,543809,4782,580 (8) As of December 31, 2022, 5 operational hotels and 11 pipeline hotels of IntercityHotel were in China.(9) As of December 31, 2022, 11 operational hotels and 3 pipeline hotels of Steigenberger Hotels & Resorts were in China.(10) As of December 31, 2022, 3 operational hotels and 8 pipeline hotels of MAXX were in China.(11) As of December 31, 2022, 3 operational hotels of Steigenberger Icon were in China.(12) 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 key player in the global hotel industry. As of December 31, 2022, H World operated 8,543 hotels with 809,478 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 December 31, 2022, H World operates 13 percent of its hotel rooms under lease and ownership model, and 87 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 InformationInvestor RelationsTel: +86 (21) 6195 9561Email: ir@hworld.comhttps://ir.hworld.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
H World Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2022 By: H World Group Limited via GlobeNewswire January 31, 2023 at 06:15 AM EST SHANGHAI, China, Jan. 31, 2023 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”), a key player in the global hotel industry, today announced preliminary results for hotel operations in the fourth quarter (“Q4 2022”) and the full year ended December 31, 2022. COVID-19 update For our Legacy-Huazhu business, our RevPAR in Q4 2022 recovered to 83% of the 2019 level. The recovery was accelerated after Chinese Government announced the reopening policy in mid-November. Breaking down into each month, our RevPAR in October, November and December 2022 recovered to 74%, 87% and 91% of the 2019 levels, respectively. The trend continued during the Spring Festival holiday with RevPAR recovered to roughly 95% of 2019 seven days’ holiday period. Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”) have experienced a seasonal slowdown of RevPAR recovery in Q4 2022. Blended RevPAR recovered to 110% of 2019 levels in Q4, driven by the Steigenberger hotels in Qatar and Egypt. Excluding the effects of the FIFA World Cup and the COP27 UN Climate Conference, the RevPAR recovered to 100% of 2019 levels. RevPAR recovery continues to be driven by ADR increases while occupancy levels still remain behind the levels achieved in 2019. The ongoing reduction of energy-related risks eases energy prices in Europe. However, inflation is continuing to impact operating costs. We will bridge the rising cost through further rate increases as well as an ongoing focus on cost reduction, process optimization and stringent cash management.Operating Results: Legacy-Huazhu(1) Number of hotels Number of rooms Opened in Q4 2022 Closed (2)in Q4 2022Net added in Q4 2022As of December 31, 2022 (3) As of December 31, 2022 Leased and owned hotels5 (13)(8)623 89,638Manachised and franchised hotels239 (96)143 7,788 693,536Total244 (109)135 8,411 783,174(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 Q4 2022, we temporarily closed 10 hotels for brand upgrade and business model change purposes.(3) As of December 31, 2022, 572 hotels were requisitioned by governmental authorities. As of December 31, 2022 Number of hotels Unopened hotels in pipeline Economy hotels4930 1053Leased and owned hotels353 1Manachised and franchised hotels4577 1052Midscale and upscale hotels3481 1491Leased and owned hotels270 13Manachised and franchised hotels3211 1478Total8411 2544 Operational hotels excluding hotels under requisition(4) For the quarter ended December 31,September 30,December 31,yoy 2021 2022 2022 changeAverage daily room rate (in RMB) Leased and owned hotels286 294 279 -2.6%Manachised and franchised hotels232 248 236 1.4%Blended239 254 240 0.4%Occupancy Rate (as a percentage) Leased and owned hotels67.4%73.1%63.1%-4.3p.p.Manachised and franchised hotels68.4%76.4%66.6%-1.8p.p.Blended68.2%76.0%66.2%-2.0p.p.RevPAR (in RMB) Leased and owned hotels193 215 176 -8.8%Manachised and franchised hotels159 190 157 -1.2%Blended163 193 159 -2.6% For the quarter ended December 31,December 31,yoy 2019 2022 changeAverage daily room rate (in RMB) Leased and owned hotels277 279 0.5%Manachised and franchised hotels223 236 5.9%Blended232 240 3.6%Occupancy Rate (as a percentage) Leased and owned hotels84.7%63.1%-21.6p.p.Manachised and franchised hotels81.6%66.6%-15.0p.p.Blended82.2%66.2%-16.0p.p.RevPAR (in RMB) Leased and owned hotels235 176 -25.2%Manachised and franchised hotels182 157 -13.6%Blended191 159 -16.6% (4) If including hotels under requisition, RevPAR in Q4 2022 would have been 85% of the 2019 level. Operational hotels excluding hotels under requisition(5) For full year ended December 31,December 31,yoy 2021 2022 change Average daily room rate (in RMB) Leased and owned hotels286 272 -5.1% Manachised and franchised hotels232 231 -0.2% Blended239 236 -1.3% Occupancy Rate (as a percentage) Leased and owned hotels70.6%63.9%-6.7p.p. Manachised and franchised hotels72.4%67.1%-5.4p.p. Blended72.2%66.7%-5.5p.p. RevPAR (in RMB) Leased and owned hotels202 174 -14.1% Manachised and franchised hotels168 155 -7.6% Blended172 157 -8.8% For full year ended December 31,December 31,yoy 2019 2022 changeAverage daily room rate (in RMB) Leased and owned hotels276 272 -1.8%Manachised and franchised hotels224 231 3.0%Blended234 236 0.6%Occupancy Rate (as a percentage) Leased and owned hotels87.0%63.9%-23.0p.p.Manachised and franchised hotels83.8%67.1%-16.7p.p.Blended84.4%66.7%-17.7p.p.RevPAR (in RMB) Leased and owned hotels240 174 -27.8%Manachised and franchised hotels188 155 -17.5%Blended198 157 -20.5% (5) If including hotels under requisition, RevPAR in 2022 would have been 82% 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 hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the quarter yoyFor the quarter yoyFor the quarter yoy ended December 31,changeended December 31,changeended December 31,change 2021202220212022 20212022 2021 2022 (p.p.)Economy hotels3,1993,199137123-10.1%183181-1.0%75.0%68.1%-6.9Leased and owned hotels335335148132-11.1%204199-2.6%72.5%66.2%-6.4Manachised and franchised hotels2,8642,864135122-9.9%179178-0.7%75.5%68.5%-7.0Midscale and upscale hotels2,0972,097215196-8.6%313301-3.8%68.6%65.1%-3.4Leased and owned hotels227227245222-9.5%387361-6.8%63.4%61.5%-1.9Manachised and franchised hotels1,8701,870209192-8.4%301292-3.2%69.5%65.7%-3.7Total5,2965,296174158-9.2%241236-2.0%72.0%66.7%-5.3 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the quarter yoyFor the quarter yoyFor the quarter yoy ended December 31,changeended December 31,changeended December 31,change 2019202220192022 20192022 2019 2022 (p.p.)Economy hotels1,9691,969167122-26.8%188180-4.1%88.6%67.6%-21.0Leased and owned hotels324324189130-31.5%215197-8.3%88.0%65.8%-22.2Manachised and franchised hotels1,6451,645161120-25.4%181176-2.8%88.8%68.1%-20.7Midscale and upscale hotels1,0091,009272192-29.4%325300-7.9%83.5%64.0%-19.5Leased and owned hotels166166329202-38.7%395335-15.3%83.3%60.3%-23.0Manachised and franchised hotels843843256189-26.1%307291-5.1%83.5%65.0%-18.5Total2,9782,978209150-28.0%241227-5.8%86.6%66.2%-20.4 Same-hotel operational data by class Mature hotels in operation for more than 18 months (excluding hotels under requisition) Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the year yoyFor the year yoyFor the year yoy ended December 31,changeended December 31,changeended December 31,change 2021202220212022 20212022 2021 2022 (p.p.)Economy hotels3,1993,199142123-13.6%183176-3.6%77.5%69.5%-8.0Leased and owned hotels335335155133-14.1%207194-6.3%74.5%68.3%-6.2Manachised and franchised hotels2,8642,864139121-13.5%179173-3.1%78.0%69.7%-8.3Midscale and upscale hotels2,0972,097224196-12.4%315301-4.4%71.0%65.0%-6.0Leased and owned hotels227227255219-14.1%386362-6.3%66.1%60.6%-5.5Manachised and franchised hotels1,8701,870218191-12.0%303291-3.9%71.9%65.8%-6.1Total5,2965,296179156-13.0%240231-3.8%74.6%67.5%-7.1 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the year yoyFor the year yoyFor the year yoy ended December 31,changeended December 31,changeended December 31,change 2019202220192022 20192022 2019 2022 (p.p.)Economy hotels1,9691,969174121-30.5%192176-8.7%90.7%69.0%-21.7Leased and owned hotels324324195130-33.3%215191-10.9%90.8%68.0%-22.8Manachised and franchised hotels1,6451,645169119-29.6%186171-7.9%90.6%69.3%-21.4Midscale and upscale hotels1,0091,009276190-31.2%331300-9.5%83.2%63.3%-19.9Leased and owned hotels166166334200-40.0%396338-14.6%84.2%59.1%-25.1Manachised and franchised hotels843843258187-27.6%311289-7.1%82.9%64.6%-18.3Total2,9782,978212147-30.8%241219-9.0%87.9%66.9%-21.0 Operating Results: Legacy-DH(6) Number of hotels Number of rooms Unopened hotels in pipeline Opened in Q4 2022 Closedin Q4 2022Net added in Q4 2022 As of December 31, 2022(7) As of December 31,2022 As ofDecember 31,2022 Leased hotels2 - 2 81 15,328 26Manachised and franchised hotels4 - 4 51 10,976 10 Total6 - 6 132 26,304 36(6) Legacy-DH refers to DH. (7) As of December 31, 2022, a total of 3 hotels were temporarily closed. 1 hotel was closed due to flood damage, 1 hotel was closed due to extensive hotel refurbishment, and 1 hotel was closed due to repairment. For the quarter ended December 31,September 30,December 31,yoy 2021 2022 2022 changeAverage daily room rate (in EUR) Leased hotels95 113 114 19.5%Manachised and franchised hotels93 116 134 44.6%Blended94 114 122 29.7%Occupancy rate (as a percentage) Leased hotels42.9%67.4%60.0%+17.1 p.p. Manachised and franchised hotels50.7%64.1%58.3%+7.6 p.p.Blended46.1%66.1%59.3%+13.2 p.p.RevPAR (in EUR) Leased hotels41 76 68 67.3% Manachised and franchised hotels47 74 78 66.2%Blended43 75 72 66.8% For full year ended December 31,December 31,yoy 2021 2022 changeAverage daily room rate (in EUR) Leased and owned hotels91 110 20.1%Manachised and franchised hotels89 113 26.6%Blended90 111 22.9%Occupancy Rate (as a percentage) Leased and owned hotels31.6%56.0%+24.4 p.p.Manachised and franchised hotels40.5%56.4%+15.9 p.p.Blended35.2%56.2%+21.0 p.p.RevPAR (in EUR) Leased and owned hotels29 61 112.6%Manachised and franchised hotels36 64 76.4%Blended32 62 96.2% Hotel Portfolio by Brand As of December 31, 2022 HotelsRoomsUnopened hotels in operationin pipelineEconomy hotels4,948389,3831,066HanTing Hotel3,257288,956652Hi Inn45623,998170Ni Hao Hotel15911,534199Elan Hotel83639,948-Ibis Hotel22222,82632Zleep Hotels182,12113Midscale hotels2,898317,1171,146Ibis Styles Hotel858,86425Starway Hotel56747,378242JI Hotel1,694199,581611Orange Hotel51956,035261CitiGO Hotel335,2597Upper midscale hotels53875,467286Crystal Orange Hotel16421,55257Manxin Hotel11210,60159Madison Hotel527,19564Mercure Hotel13721,19362Novotel Hotel174,42419IntercityHotel(8)5610,50225Upscale hotels13421,60972Jaz in the City35871Joya Hotel81,3681Blossom House532,32649Grand Mercure Hotel71,7265Steigenberger Hotels & Resorts(9)5414,0408MAXX (10)91,5628Luxury hotels152,3185Steigenberger Icon(11)91,8471Song Hotels64714Others103,5845Other hotels(12)103,5845Total8,543809,4782,580 (8) As of December 31, 2022, 5 operational hotels and 11 pipeline hotels of IntercityHotel were in China.(9) As of December 31, 2022, 11 operational hotels and 3 pipeline hotels of Steigenberger Hotels & Resorts were in China.(10) As of December 31, 2022, 3 operational hotels and 8 pipeline hotels of MAXX were in China.(11) As of December 31, 2022, 3 operational hotels of Steigenberger Icon were in China.(12) 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 key player in the global hotel industry. As of December 31, 2022, H World operated 8,543 hotels with 809,478 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 December 31, 2022, H World operates 13 percent of its hotel rooms under lease and ownership model, and 87 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 InformationInvestor RelationsTel: +86 (21) 6195 9561Email: ir@hworld.comhttps://ir.hworld.com
SHANGHAI, China, Jan. 31, 2023 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”), a key player in the global hotel industry, today announced preliminary results for hotel operations in the fourth quarter (“Q4 2022”) and the full year ended December 31, 2022. COVID-19 update For our Legacy-Huazhu business, our RevPAR in Q4 2022 recovered to 83% of the 2019 level. The recovery was accelerated after Chinese Government announced the reopening policy in mid-November. Breaking down into each month, our RevPAR in October, November and December 2022 recovered to 74%, 87% and 91% of the 2019 levels, respectively. The trend continued during the Spring Festival holiday with RevPAR recovered to roughly 95% of 2019 seven days’ holiday period. Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”) have experienced a seasonal slowdown of RevPAR recovery in Q4 2022. Blended RevPAR recovered to 110% of 2019 levels in Q4, driven by the Steigenberger hotels in Qatar and Egypt. Excluding the effects of the FIFA World Cup and the COP27 UN Climate Conference, the RevPAR recovered to 100% of 2019 levels. RevPAR recovery continues to be driven by ADR increases while occupancy levels still remain behind the levels achieved in 2019. The ongoing reduction of energy-related risks eases energy prices in Europe. However, inflation is continuing to impact operating costs. We will bridge the rising cost through further rate increases as well as an ongoing focus on cost reduction, process optimization and stringent cash management.Operating Results: Legacy-Huazhu(1) Number of hotels Number of rooms Opened in Q4 2022 Closed (2)in Q4 2022Net added in Q4 2022As of December 31, 2022 (3) As of December 31, 2022 Leased and owned hotels5 (13)(8)623 89,638Manachised and franchised hotels239 (96)143 7,788 693,536Total244 (109)135 8,411 783,174(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 Q4 2022, we temporarily closed 10 hotels for brand upgrade and business model change purposes.(3) As of December 31, 2022, 572 hotels were requisitioned by governmental authorities. As of December 31, 2022 Number of hotels Unopened hotels in pipeline Economy hotels4930 1053Leased and owned hotels353 1Manachised and franchised hotels4577 1052Midscale and upscale hotels3481 1491Leased and owned hotels270 13Manachised and franchised hotels3211 1478Total8411 2544 Operational hotels excluding hotels under requisition(4) For the quarter ended December 31,September 30,December 31,yoy 2021 2022 2022 changeAverage daily room rate (in RMB) Leased and owned hotels286 294 279 -2.6%Manachised and franchised hotels232 248 236 1.4%Blended239 254 240 0.4%Occupancy Rate (as a percentage) Leased and owned hotels67.4%73.1%63.1%-4.3p.p.Manachised and franchised hotels68.4%76.4%66.6%-1.8p.p.Blended68.2%76.0%66.2%-2.0p.p.RevPAR (in RMB) Leased and owned hotels193 215 176 -8.8%Manachised and franchised hotels159 190 157 -1.2%Blended163 193 159 -2.6% For the quarter ended December 31,December 31,yoy 2019 2022 changeAverage daily room rate (in RMB) Leased and owned hotels277 279 0.5%Manachised and franchised hotels223 236 5.9%Blended232 240 3.6%Occupancy Rate (as a percentage) Leased and owned hotels84.7%63.1%-21.6p.p.Manachised and franchised hotels81.6%66.6%-15.0p.p.Blended82.2%66.2%-16.0p.p.RevPAR (in RMB) Leased and owned hotels235 176 -25.2%Manachised and franchised hotels182 157 -13.6%Blended191 159 -16.6% (4) If including hotels under requisition, RevPAR in Q4 2022 would have been 85% of the 2019 level. Operational hotels excluding hotels under requisition(5) For full year ended December 31,December 31,yoy 2021 2022 change Average daily room rate (in RMB) Leased and owned hotels286 272 -5.1% Manachised and franchised hotels232 231 -0.2% Blended239 236 -1.3% Occupancy Rate (as a percentage) Leased and owned hotels70.6%63.9%-6.7p.p. Manachised and franchised hotels72.4%67.1%-5.4p.p. Blended72.2%66.7%-5.5p.p. RevPAR (in RMB) Leased and owned hotels202 174 -14.1% Manachised and franchised hotels168 155 -7.6% Blended172 157 -8.8% For full year ended December 31,December 31,yoy 2019 2022 changeAverage daily room rate (in RMB) Leased and owned hotels276 272 -1.8%Manachised and franchised hotels224 231 3.0%Blended234 236 0.6%Occupancy Rate (as a percentage) Leased and owned hotels87.0%63.9%-23.0p.p.Manachised and franchised hotels83.8%67.1%-16.7p.p.Blended84.4%66.7%-17.7p.p.RevPAR (in RMB) Leased and owned hotels240 174 -27.8%Manachised and franchised hotels188 155 -17.5%Blended198 157 -20.5% (5) If including hotels under requisition, RevPAR in 2022 would have been 82% 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 hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the quarter yoyFor the quarter yoyFor the quarter yoy ended December 31,changeended December 31,changeended December 31,change 2021202220212022 20212022 2021 2022 (p.p.)Economy hotels3,1993,199137123-10.1%183181-1.0%75.0%68.1%-6.9Leased and owned hotels335335148132-11.1%204199-2.6%72.5%66.2%-6.4Manachised and franchised hotels2,8642,864135122-9.9%179178-0.7%75.5%68.5%-7.0Midscale and upscale hotels2,0972,097215196-8.6%313301-3.8%68.6%65.1%-3.4Leased and owned hotels227227245222-9.5%387361-6.8%63.4%61.5%-1.9Manachised and franchised hotels1,8701,870209192-8.4%301292-3.2%69.5%65.7%-3.7Total5,2965,296174158-9.2%241236-2.0%72.0%66.7%-5.3 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the quarter yoyFor the quarter yoyFor the quarter yoy ended December 31,changeended December 31,changeended December 31,change 2019202220192022 20192022 2019 2022 (p.p.)Economy hotels1,9691,969167122-26.8%188180-4.1%88.6%67.6%-21.0Leased and owned hotels324324189130-31.5%215197-8.3%88.0%65.8%-22.2Manachised and franchised hotels1,6451,645161120-25.4%181176-2.8%88.8%68.1%-20.7Midscale and upscale hotels1,0091,009272192-29.4%325300-7.9%83.5%64.0%-19.5Leased and owned hotels166166329202-38.7%395335-15.3%83.3%60.3%-23.0Manachised and franchised hotels843843256189-26.1%307291-5.1%83.5%65.0%-18.5Total2,9782,978209150-28.0%241227-5.8%86.6%66.2%-20.4 Same-hotel operational data by class Mature hotels in operation for more than 18 months (excluding hotels under requisition) Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the year yoyFor the year yoyFor the year yoy ended December 31,changeended December 31,changeended December 31,change 2021202220212022 20212022 2021 2022 (p.p.)Economy hotels3,1993,199142123-13.6%183176-3.6%77.5%69.5%-8.0Leased and owned hotels335335155133-14.1%207194-6.3%74.5%68.3%-6.2Manachised and franchised hotels2,8642,864139121-13.5%179173-3.1%78.0%69.7%-8.3Midscale and upscale hotels2,0972,097224196-12.4%315301-4.4%71.0%65.0%-6.0Leased and owned hotels227227255219-14.1%386362-6.3%66.1%60.6%-5.5Manachised and franchised hotels1,8701,870218191-12.0%303291-3.9%71.9%65.8%-6.1Total5,2965,296179156-13.0%240231-3.8%74.6%67.5%-7.1 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy As ofDecember 31,For the year yoyFor the year yoyFor the year yoy ended December 31,changeended December 31,changeended December 31,change 2019202220192022 20192022 2019 2022 (p.p.)Economy hotels1,9691,969174121-30.5%192176-8.7%90.7%69.0%-21.7Leased and owned hotels324324195130-33.3%215191-10.9%90.8%68.0%-22.8Manachised and franchised hotels1,6451,645169119-29.6%186171-7.9%90.6%69.3%-21.4Midscale and upscale hotels1,0091,009276190-31.2%331300-9.5%83.2%63.3%-19.9Leased and owned hotels166166334200-40.0%396338-14.6%84.2%59.1%-25.1Manachised and franchised hotels843843258187-27.6%311289-7.1%82.9%64.6%-18.3Total2,9782,978212147-30.8%241219-9.0%87.9%66.9%-21.0 Operating Results: Legacy-DH(6) Number of hotels Number of rooms Unopened hotels in pipeline Opened in Q4 2022 Closedin Q4 2022Net added in Q4 2022 As of December 31, 2022(7) As of December 31,2022 As ofDecember 31,2022 Leased hotels2 - 2 81 15,328 26Manachised and franchised hotels4 - 4 51 10,976 10 Total6 - 6 132 26,304 36(6) Legacy-DH refers to DH. (7) As of December 31, 2022, a total of 3 hotels were temporarily closed. 1 hotel was closed due to flood damage, 1 hotel was closed due to extensive hotel refurbishment, and 1 hotel was closed due to repairment. For the quarter ended December 31,September 30,December 31,yoy 2021 2022 2022 changeAverage daily room rate (in EUR) Leased hotels95 113 114 19.5%Manachised and franchised hotels93 116 134 44.6%Blended94 114 122 29.7%Occupancy rate (as a percentage) Leased hotels42.9%67.4%60.0%+17.1 p.p. Manachised and franchised hotels50.7%64.1%58.3%+7.6 p.p.Blended46.1%66.1%59.3%+13.2 p.p.RevPAR (in EUR) Leased hotels41 76 68 67.3% Manachised and franchised hotels47 74 78 66.2%Blended43 75 72 66.8% For full year ended December 31,December 31,yoy 2021 2022 changeAverage daily room rate (in EUR) Leased and owned hotels91 110 20.1%Manachised and franchised hotels89 113 26.6%Blended90 111 22.9%Occupancy Rate (as a percentage) Leased and owned hotels31.6%56.0%+24.4 p.p.Manachised and franchised hotels40.5%56.4%+15.9 p.p.Blended35.2%56.2%+21.0 p.p.RevPAR (in EUR) Leased and owned hotels29 61 112.6%Manachised and franchised hotels36 64 76.4%Blended32 62 96.2% Hotel Portfolio by Brand As of December 31, 2022 HotelsRoomsUnopened hotels in operationin pipelineEconomy hotels4,948389,3831,066HanTing Hotel3,257288,956652Hi Inn45623,998170Ni Hao Hotel15911,534199Elan Hotel83639,948-Ibis Hotel22222,82632Zleep Hotels182,12113Midscale hotels2,898317,1171,146Ibis Styles Hotel858,86425Starway Hotel56747,378242JI Hotel1,694199,581611Orange Hotel51956,035261CitiGO Hotel335,2597Upper midscale hotels53875,467286Crystal Orange Hotel16421,55257Manxin Hotel11210,60159Madison Hotel527,19564Mercure Hotel13721,19362Novotel Hotel174,42419IntercityHotel(8)5610,50225Upscale hotels13421,60972Jaz in the City35871Joya Hotel81,3681Blossom House532,32649Grand Mercure Hotel71,7265Steigenberger Hotels & Resorts(9)5414,0408MAXX (10)91,5628Luxury hotels152,3185Steigenberger Icon(11)91,8471Song Hotels64714Others103,5845Other hotels(12)103,5845Total8,543809,4782,580 (8) As of December 31, 2022, 5 operational hotels and 11 pipeline hotels of IntercityHotel were in China.(9) As of December 31, 2022, 11 operational hotels and 3 pipeline hotels of Steigenberger Hotels & Resorts were in China.(10) As of December 31, 2022, 3 operational hotels and 8 pipeline hotels of MAXX were in China.(11) As of December 31, 2022, 3 operational hotels of Steigenberger Icon were in China.(12) 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 key player in the global hotel industry. As of December 31, 2022, H World operated 8,543 hotels with 809,478 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 December 31, 2022, H World operates 13 percent of its hotel rooms under lease and ownership model, and 87 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 InformationInvestor RelationsTel: +86 (21) 6195 9561Email: ir@hworld.comhttps://ir.hworld.com