Huazhu Group-S (01179.HK): Huazhu operates 7,830 hotels in 17 countries by the end of 2021

On January 20, 2021, Huazhu Group-S (01179.HK) announced that the average rental room revenue of legacy-Huazhu business was still severely affected by the COVID-19 epidemic in China several times in the fourth quarter of 2021. On a monthly basis, the company's average rental room revenue recovered to 90%, 76% and 90% of the levels of October, November and December 2019, respectively. Entering 2022, the company observed that the COVID-19 epidemic continued in several cities and provinces, including Xi'an, Tianjin and Henan Province. In addition, the new Omicron variant has recently been detected in several cities in China. What's more, stricter travel restrictions are expected in beijing and its surrounding areas in and around the beijing winter olympics. As a result, all of the above factors will increase uncertainty and pressure on the recovery of average rental room revenue in the first quarter of 2022.

For the year ended December 31, 2021, the combined occupancy rate of hotels in operation (excluding hotels in requisition) was 72.2%, up 1.2p.p. year-on-year. The average comprehensive revenue of rentable rooms was RMB172, up 15.6% year-on-year.

As of December 31, 2021, Huazhu operated 7,830 hotels in 17 countries with 753,216 on-site rooms. Huazhu's brands include Hi Inn Hotel, Elan Hotel, Hanting Hotel, JI Hotel, Starway Hotel, Orange Hotel, Orange Crystal Hotel, Manxin Hotel, Meilun Hotel, Xiyue Hotel, Huajiantang, HaoHao Hotel and Citigo Hotel. Following the completion of the acquisition of DH on 2 January 2020, China Lodging added five new brands to its portfolio, including Steigenberger, M.L.L., Jaz in the City, IntercityHotel and Zleep Hotels. In addition, China Lodging also owns the main concessions for Mercure, Ibis and ibis Styles and the co-development rights of Grand Mercure and Novotel in the Pan China region.

This article originated from Grand Gateway