Huazhu Group Limited Reports First Quarter of 2020 Financial Results
A total of 5,953 hotels or 575,488 hotel rooms in operation and 2,375 unopened hotels in pipeline as of March 31, 2020. Excluding Deutsche Hospitality (“DH”), a total of 5,838 hotels or 552,362 hotel room in operation.Hotel turnover1decreased 32% year-over-year to RMB5 billion for the first quarter. Excluding DH, hotel turnover decreased 49%.Net revenues decreased 15.7% year-over-year to RMB2.0 billion (US$284 million)2for the first quarter, in line with revenue guidance previously announced of 15% to 20% decrease. Excluding DH, net revenue decreased 46.0% year-over-year.Due to the COVID-19 outbreak, net revenue of Legacy-Huazhu decreased by RMB1.1 billion year-over-year. We took cost mitigation measures to reduce costs and expenditures, but some measures to reduce rental, personnel costs and general and administrative expenses could only affect future quarters. Therefore, the reduction in net revenue directly affected operating income, EBITDA and net income.Net loss attributable to Huazhu Group Limited was RMB2.1 billion (US$301 million) for the first quarter of 2020, compared with net income attributable to Huazhu Group Limited of RMB106 million in the first quarter of 2019 and net income attributable to Huazhu Group Limited of RMB619 million in the previous quarter.Excluding share-based compensation expenses and unrealized gains (losses) from fair value changes of equity securities, adjusted net loss attributable to Huazhu Group Limited (non-GAAP) for the first quarter of 2020 was RMB1.1 billion (US$155 million), compared with adjusted net income attributable to Huazhu Group Limited (non-GAAP) of RMB222 million for the first quarter of 2019.EBITDA (non-GAAP) for the first quarter of 2020 was negative RMB1.7 billion (US$245 million), compared with positive RMB412 million for the first quarter of 2019.Excluding share-based compensation expenses and unrealized gains (losses) from fair value changes of equity securities, adjusted EBITDA (non-GAAP) for the first quarter of 2020 was negative RMB704 million (US$99 million), compared to positive RMB528 million for the first quarter of 2019.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.SHANGHAI, China, June 30, 2020 (GLOBE NEWSWIRE) — Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu” or the “Company”), a world-leading hotel group, today announced its unaudited financial results for the first quarter ended March 31, 2020.Upon the completion of the Deutsche Hospitality acquisition on January 2, 2020, we added 5 new hotel brands, including Steigenberger Hotels & Resorts, Maxx by Steigenberger, Jaz in the City, IntercityHotel and Zleep Hotel. As of March 31, 2020, Huazhu’s worldwide hotel network in operation totaled 5,953 hotels and 575,488 rooms, including 115 hotels from the addition of DH. During the first quarter of 2020, Legacy-Huazhu business opened 296 hotels, including 10 leased (“leased-and-operated”) hotels and 286 manachised (“franchised-and-managed”) hotels and franchised hotels, and closed a total of 76 hotels, including 9 leased hotels and 67 manachised and franchised hotels. During the first quarter of 2020, Legacy-DH business opened 5 hotels, including 3 leased hotels and 2 manachised hotels and franchised hotels, and closed 9 hotels, including 2 leased hotels and 7 manachised and franchised hotels. As of March 31, 2020, Huazhu had a total of 2,375 unopened hotels in pipeline, including 2,334 hotels from Legacy-Huazhu business and 41 hotels from Legacy-DH businessLegacy-Huazhu Only – First Quarter of 2020 Operational Highlights
