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H World Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2022

H World Group Limited
H World Group Limited

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 2022

Net added
in Q4 2022

As of
December 31, 2022 (3)

As of
December 31, 2022

 

Leased and owned hotels

5

 

(13

)

(8

)

623

 

89,638

Manachised and franchised hotels

239

 

(96

)

143

 

7,788

 

693,536

Total

244

 

(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 hotels

4930

 

1053

Leased and owned hotels

353

 

1

Manachised and franchised hotels

4577

 

1052

Midscale and upscale hotels

3481

 

1491

Leased and owned hotels

270

 

13

Manachised and franchised hotels

3211

 

1478

Total

8411

 

2544

 

Operational hotels excluding hotels under requisition(4)

For the quarter ended

December 31,

September 30,

December 31,

yoy

2021

 

2022

 

2022

 

change

Average daily room rate (in RMB)

Leased and owned hotels

286

 

294

 

279

 

-2.6

%

Manachised and franchised hotels

232

 

248

 

236

 

1.4

%

Blended

239

 

254

 

240

 

0.4

%

Occupancy Rate (as a percentage)

Leased and owned hotels

67.4

%

73.1

%

63.1

%

-4.3p.p.

Manachised and franchised hotels

68.4

%

76.4

%

66.6

%

-1.8p.p.

Blended

68.2

%

76.0

%

66.2

%

-2.0p.p.

RevPAR (in RMB)

Leased and owned hotels

193

 

215

 

176

 

-8.8

%

Manachised and franchised hotels

159

 

190

 

157

 

-1.2

%

Blended

163

 

193

 

159

 

-2.6

%

 

For the quarter ended

December 31,

December 31,

yoy

2019

 

2022

 

change

Average daily room rate (in RMB)

Leased and owned hotels

277

 

279

 

0.5

%

Manachised and franchised hotels

223

 

236

 

5.9

%

Blended

232

 

240

 

3.6

%

Occupancy Rate (as a percentage)

Leased and owned hotels

84.7

%

63.1

%

-21.6p.p.

Manachised and franchised hotels

81.6

%

66.6

%

-15.0p.p.

Blended

82.2

%

66.2

%

-16.0p.p.

RevPAR (in RMB)

Leased and owned hotels

235

 

176

 

-25.2

%

Manachised and franchised hotels

182

 

157

 

-13.6

%

Blended

191

 

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 hotels

286

 

272

 

-5.1

%

 

Manachised and franchised hotels

232

 

231

 

-0.2

%

 

Blended

239

 

236

 

-1.3

%

 

Occupancy Rate (as a percentage)

 

Leased and owned hotels

70.6

%

63.9

%

-6.7p.p.

 

Manachised and franchised hotels

72.4

%

67.1

%

-5.4p.p.

 

Blended

72.2

%

66.7

%

-5.5p.p.

 

RevPAR (in RMB)

 

Leased and owned hotels

202

 

174

 

-14.1

%

 

Manachised and franchised hotels

168

 

155

 

-7.6

%

 

Blended

172

 

157

 

-8.8

%

 

 

For full year ended

December 31,

December 31,

yoy

2019

 

2022

 

change

Average daily room rate (in RMB)

Leased and owned hotels

276

 

272

 

-1.8

%

Manachised and franchised hotels

224

 

231

 

3.0

%

Blended

234

 

236

 

0.6

%

Occupancy Rate (as a percentage)

Leased and owned hotels

87.0

%

63.9

%

-23.0p.p.

Manachised and franchised hotels

83.8

%

67.1

%

-16.7p.p.

Blended

84.4

%

66.7

%

-17.7p.p.

RevPAR (in RMB)

Leased and owned hotels

240

 

174

 

-27.8

%

Manachised and franchised hotels

188

 

155

 

-17.5

%

Blended

198

 

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 hotels

Same-hotel RevPAR

Same-hotel ADR

Same-hotel Occupancy

 

As of
December 31,

For the quarter

yoy

For the quarter

yoy

For the quarter

yoy

 

ended
December 31,

change

ended
December 31,

change

ended
December 31,

change

 

2021

2022

2021

2022

 

2021

2022

 

2021

 

2022

 

(p.p.)

Economy hotels

3,199

3,199

137

123

-10.1

%

183

181

-1.0

%

75.0

%

68.1

%

-6.9

Leased and owned hotels

335

335

148

132

-11.1

%

204

199

-2.6

%

72.5

%

66.2

%

-6.4

Manachised and franchised hotels

2,864

2,864

135

122

-9.9

%

179

178

-0.7

%

75.5

%

68.5

%

-7.0

Midscale and upscale hotels

2,097

2,097

215

196

-8.6

%

313

301

-3.8

%

68.6

%

65.1

%

-3.4

Leased and owned hotels

227

227

245

222

-9.5

%

387

361

-6.8

%

63.4

%

61.5

%

-1.9

Manachised and franchised hotels

1,870

1,870

209

192

-8.4

%

301

292

-3.2

%

69.5

%

65.7

%

-3.7

Total

5,296

5,296

174

158

-9.2

%

241

236

-2.0

%

72.0

%

66.7

%

-5.3

 

 

 

Number of hotels

Same-hotel RevPAR

Same-hotel ADR

Same-hotel Occupancy

 

As of
December 31,

For the quarter

yoy

For the quarter

yoy

For the quarter

yoy

 

ended
December 31,

change

ended
December 31,

change

ended
December 31,

change

 

2019

2022

2019

2022

 

2019

2022

 

2019

 

2022

 

(p.p.)

Economy hotels

1,969

1,969

167

122

-26.8

%

188

180

-4.1

%

88.6

%

67.6

%

-21.0

Leased and owned hotels

324

324

189

130

-31.5

%

215

197

-8.3

%

88.0

%

65.8

%

-22.2

Manachised and franchised hotels

1,645

1,645

161

120

-25.4

%

181

176

-2.8

%

88.8

%

68.1

%

-20.7

Midscale and upscale hotels

1,009

1,009

272

192

-29.4

%

325

300

-7.9

%

83.5

%

64.0

%

-19.5

Leased and owned hotels

166

166

329

202

-38.7

%

395

335

-15.3

%

83.3

%

60.3

%

-23.0

Manachised and franchised hotels

843

843

256

189

-26.1

%

307

291

-5.1

%

83.5

%

65.0

%

-18.5

Total

2,978

2,978

209

150

-28.0

%

241

227

-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 hotels

Same-hotel RevPAR

Same-hotel ADR

Same-hotel Occupancy

 

As of
December 31,

For the year

yoy

For the year

yoy

For the year

yoy

 

ended
December 31,

change

ended
December 31,

change

ended
December 31,

change

 

2021

2022

2021

2022

 

2021

2022

 

2021

 

2022

 

(p.p.)

Economy hotels

3,199

3,199

142

123

-13.6

%

183

176

-3.6

%

77.5

%

69.5

%

-8.0

Leased and owned hotels

335

335

155

133

-14.1

%

207

194

-6.3

%

74.5

%

68.3

%

-6.2

Manachised and franchised hotels

2,864

2,864

139

121

-13.5

%

179

173

-3.1

%

78.0

%

69.7

%

-8.3

Midscale and upscale hotels

2,097

2,097

224

196

-12.4

%

315

301

-4.4

%

71.0

%

65.0

%

-6.0

Leased and owned hotels

227

227

255

219

-14.1

%

386

362

-6.3

%

66.1

%

60.6

%

-5.5

Manachised and franchised hotels

1,870

1,870

218

191

-12.0

%

303

291

-3.9

%

71.9

%

65.8

%

-6.1

Total

5,296

5,296

179

156

-13.0

%

240

231

-3.8

%

74.6

%

67.5

%

-7.1

 

 

 

Number of hotels

Same-hotel RevPAR

Same-hotel ADR

Same-hotel Occupancy

 

As of
December 31,

For the year

yoy

For the year

yoy

For the year

yoy

 

ended
December 31,

change

ended
December 31,

change

ended
December 31,

change

 

2019

2022

2019

2022

 

2019

2022

 

2019

 

2022

 

(p.p.)

Economy hotels

1,969

1,969

174

121

-30.5

%

192

176

-8.7

%

90.7

%

69.0

%

-21.7

Leased and owned hotels

324

324

195

130

-33.3

%

215

191

-10.9

%

90.8

%

68.0

%

-22.8

Manachised and franchised hotels

1,645

1,645

169

119

-29.6

%

186

171

-7.9

%

90.6

%

69.3

%

-21.4

Midscale and upscale hotels

1,009

1,009

276

190

-31.2

%

331

300

-9.5

%

83.2

%

63.3

%

-19.9

Leased and owned hotels

166

166

334

200

-40.0

%

396

338

-14.6

%

84.2

%

59.1

%

-25.1

Manachised and franchised hotels

843

843

258

187

-27.6

%

311

289

-7.1

%

82.9

%

64.6

%

-18.3

Total

2,978

2,978

212

147

-30.8

%

241

219

-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

 

Closed
in Q4 2022

Net added
in Q4 2022

 

As of
December 31, 2022(7)





As of
December 31,2022





As of
December 31,2022

 

 

Leased hotels

2

 

-

2

 

81

 

15,328

 

26

Manachised and franchised hotels

4

 

-

4

 

51

 

10,976

 

10

 

 

 

 

 

 

 

 

 

 

 

Total

6

 

-

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

 

change

Average daily room rate (in EUR)

 

 

 

 

Leased hotels

95

 

113

 

114

 

19.5

%

Manachised and franchised hotels

93

 

116

 

134

 

44.6

%

Blended

94

 

114

 

122

 

29.7

%

Occupancy rate (as a percentage)

Leased hotels

42.9

%

67.4

%

60.0

%

+17.1 p.p.

  Manachised and franchised hotels

50.7

%

64.1

%

58.3

%

+7.6 p.p.

Blended

46.1

%

66.1

%

59.3

%

+13.2 p.p.

RevPAR (in EUR)

Leased hotels

41

 

76

 

68

 

67.3

%

  Manachised and franchised hotels

47

 

74

 

78

 

66.2

%

Blended

43

 

75

 

72

 

66.8

%

 

For full year ended

December 31,

December 31,

yoy

2021

 

2022

 

change

Average daily room rate (in EUR)

Leased and owned hotels

91

 

110

 

20.1

%

Manachised and franchised hotels

89

 

113

 

26.6

%

Blended

90

 

111

 

22.9

%

Occupancy Rate (as a percentage)

Leased and owned hotels

31.6

%

56.0

%

+24.4 p.p.

Manachised and franchised hotels

40.5

%

56.4

%

+15.9 p.p.

Blended

35.2

%

56.2

%

+21.0 p.p.

RevPAR (in EUR)

Leased and owned hotels

29

 

61

 

112.6

%

Manachised and franchised hotels

36

 

64

 

76.4

%

Blended

32

 

62

 

96.2

%


Hotel Portfolio by Brand

As of December 31, 2022

Hotels

Rooms

Unopened hotels

in operation

in pipeline

Economy hotels

4,948

389,383

1,066

HanTing Hotel

3,257

288,956

652

Hi Inn

456

23,998

170

Ni Hao Hotel

159

11,534

199

Elan Hotel

836

39,948

-

Ibis Hotel

222

22,826

32

Zleep Hotels

18

2,121

13

Midscale hotels

2,898

317,117

1,146

Ibis Styles Hotel

85

8,864

25

Starway Hotel

567

47,378

242

JI Hotel

1,694

199,581

611

Orange Hotel

519

56,035

261

CitiGO Hotel

33

5,259

7

Upper midscale hotels

538

75,467

286

Crystal Orange Hotel

164

21,552

57

Manxin Hotel

112

10,601

59

Madison Hotel

52

7,195

64

Mercure Hotel

137

21,193

62

Novotel Hotel

17

4,424

19

IntercityHotel(8)

56

10,502

25

Upscale hotels

134

21,609

72

Jaz in the City

3

587

1

Joya Hotel

8

1,368

1

Blossom House

53

2,326

49

Grand Mercure Hotel

7

1,726

5

Steigenberger Hotels & Resorts(9)

54

14,040

8

MAXX (10)

9

1,562

8

Luxury hotels

15

2,318

5

Steigenberger Icon(11)

9

1,847

1

Song Hotels

6

471

4

Others

10

3,584

5

Other hotels(12)

10

3,584

5

Total

8,543

809,478

2,580

(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 Limited
Originated 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.

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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 Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@hworld.com
https://ir.hworld.com