Hotel Network Expansion - The company expanded its hotel network from 5,618 hotels as of December 31, 2019, to 7,830 hotels (including 124 Legacy DH hotels) as of December 31, 2021, with a compound annual growth rate of 18.1%[3] - As of December 31, 2021, the company had 7,830 operating hotels, including 738 leased and owned hotels and 7,092 managed and franchised hotels, totaling 753,216 hotel rooms[3] - The company is developing an additional 2,608 new hotels, including 46 leased and owned hotels and 2,562 managed and franchised hotels[3] - From December 31, 2019, to December 31, 2021, the company added a net total of 2,212 hotels (including 124 Legacy DH hotels), with 97.7% being managed and franchised hotels[8] - The company's hotel network has grown to 7,830 hotels as of December 31, 2021, covering 811 cities across 31 provinces and municipalities in Greater China and 16 other countries[13] - The company has 2,608 hotels under development, including 46 leased and owned hotels and 2,562 managed and franchised hotels[13] - In Greater China, the company operates 661 leased and owned hotels, 6,796 managed hotels, and 247 franchised hotels, with 2,552 hotels under development[15] - Outside Greater China, the company operates 77 leased and owned hotels, 28 managed hotels, and 21 franchised hotels, with 38 hotels under development[15] - The company has 1,702 hotels in the pre-conversion phase and 906 hotels in the conversion phase, totaling 2,608 hotels under development[18] - The company's hotel network expanded from 5,618 hotels as of December 31, 2019, to 7,830 hotels as of December 31, 2021, with a compound annual growth rate of 18.1%[134] - The company had 7,830 operating hotels as of December 31, 2021, including 738 leased and owned hotels and 7,092 managed and franchised hotels, totaling 753,216 hotel rooms[134] - The company is developing an additional 2,608 new hotels, including 46 leased and owned hotels and 2,562 managed and franchised hotels[134] - Total operating hotels increased from 5,618 in 2019 to 7,706 in 2021, with leased and owned hotels decreasing slightly from 688 to 662[145] - Total operating hotel rooms grew from 536,876 in 2019 to 728,143 in 2021, with leased and owned hotel rooms increasing from 87,465 to 91,284[145] - Available hotel room nights for sale rose from 171,660,048 in 2019 to 234,841,153 in 2021, with leased and owned hotels contributing 32,818,789 room nights in 2021[145] - As of December 31, 2021, the company had 46 leased and owned hotels under development[156] - The company had 2,562 managed and franchised hotels under development as of December 31, 2021[159] Membership Program - The company's membership program, Huazhu Club, had over 193 million members as of December 31, 2021, and accounted for approximately 75% of Legacy Huazhu's room nights sold in 2021[7] - Huazhu's loyalty program, Huazhu Club, had over 193 million members as of December 31, 2021, with approximately 75% of Legacy Huazhu's room nights sold to members in 2021[70] - The company's Huazhu Club had over 150 million members by 2019[126] Financial Performance - The company's total revenue for 2019, 2020, and 2021 was RMB 11,212 million, RMB 10,196 million, and RMB 12,785 million (USD 2,006 million), respectively[9] - The company reported net losses attributable to Huazhu Group of RMB 2,192 million in 2020 and RMB 465 million (USD 73 million) in 2021[9] - Adjusted EBITDA (non-GAAP) for 2019, 2020, and 2021 was RMB 3,349 million, negative RMB 244 million, and RMB 1,571 million (USD 247 million), respectively[9] - Net cash generated from operating activities for 2019, 2020, and 2021 was RMB 3,293 million, RMB 609 million, and RMB 1,342 million (USD 210 million), respectively[9] - Total revenue for 2019, 2020, and 2021 was RMB 11,212 million, RMB 10,196 million, and RMB 12,785 million (USD 2,006 million), respectively[135] - Net profit attributable to Huazhu Group was RMB 1,769 million in 2019, a net loss of RMB 2,192 million in 2020, and a net loss of RMB 465 million (USD 73 million) in 2021[135] - Adjusted EBITDA (non-GAAP) for 2019, 2020, and 2021 was RMB 3,349 million, negative RMB 244 million, and RMB 1,571 million (USD 247 million), respectively[135] - Total revenue increased by 25.4% from RMB 10,196 million in 2020 to RMB 12,785 million (USD 2,006 million) in 2021, driven by the recovery from COVID-19 in China[182] - Revenue from leased and owned hotels increased by 17.5% from RMB 6,908 million in 2020 to RMB 8,118 million (USD 1,274 million) in 2021, primarily due to the easing impact of COVID-19 in China[183] - Legacy Huazhu's total revenue from leased and owned hotels (excluding government requisitioned hotels) increased by 22.7% to RMB 6,674 million (USD 1,047 million) in 2021 compared to 2020[183] - Legacy Huazhu's total revenue in 2021 was RMB 11,247 million (USD 1,765 million), a 29.8% increase from 2020[182] - Operating profit (loss) was RMB 164 million (USD 26 million) in 2021, compared to a loss of RMB 1,686 million in 2020[180] - Net profit (loss) attributable to Huazhu Group Limited was a loss of RMB 465 million (USD 73 million) in 2021, compared to a loss of RMB 2,192 million in 2020[180] - Total operating costs and expenses increased to RMB 13,607 million (USD 2,135 million) in 2021, representing 106.4% of total revenue[180] - Hotel operating costs accounted for 88.3% of total revenue in 2021, amounting to RMB 11,282 million (USD 1,770 million)[180] - General and administrative expenses increased to RMB 1,545 million (USD 242 million) in 2021, representing 12.1% of total revenue[180] - Total revenue from managed and franchised hotels increased by 40.4% from RMB 3,136 million in 2020 to RMB 4,404 million (USD 691 million) in 2021, driven by the easing impact of COVID-19[184] - Legacy Huazhu's revenue from managed and franchised hotels reached RMB 4,342 million (USD 681 million) in 2021, a 40.4% increase compared to 2020[184] - Legacy-DH's revenue from managed and franchised hotels increased by 44.2% to RMB 62 million in 2021, attributed to the strong recovery of leisure travel, particularly in Egypt[184] - Other income rose by 73.0% from RMB 152 million in 2020 to RMB 263 million in 2021[184] - Total operating costs and expenses increased by 14.1% from RMB 11,925 million in 2020 to RMB 13,607 million (USD 2,135 million) in 2021[184] - Hotel operating costs increased by 16.0% from RMB 9,729 million in 2020 to RMB 11,282 million (USD 1,770 million) in 2021, primarily due to higher rental costs for upscale hotels and CitiGO hotels, increased employee costs, and impairment losses related to Legacy DH[184] - Sales and marketing expenses increased by 7.4% from RMB 597 million in 2020 to RMB 641 million (USD 101 million) in 2021, but decreased as a percentage of total revenue from 5.9% to 5.0%[185] - General and administrative expenses rose by 22.7% from RMB 1,259 million in 2020 to RMB 1,545 million (USD 242 million) in 2021, mainly due to investments in development teams, IT, and upscale hotel segments[185] - Operating profit for 2021 was RMB 164 million (USD 26 million), compared to an operating loss of RMB 1,686 million in 2020, with Legacy Huazhu contributing an operating profit of RMB 891 million (USD 140 million)[186] - EBITDA (non-GAAP) for 2021 was RMB 1,366 million (USD 215 million), a significant improvement from a negative RMB 631 million in 2020, with adjusted EBITDA (non-GAAP) reaching RMB 1,571 million (USD 247 million)[192] - Total revenue decreased by 9.1% from RMB 11,212 million in 2019 to RMB 10,196 million in 2020, primarily due to the impact of COVID-19 on hotel occupancy and average daily rate (ADR), as well as temporary closures of many hotels in China[193] - Revenue from leased and owned hotels decreased by 10.5% from RMB 7,718 million in 2019 to RMB 6,908 million in 2020, with ADR dropping from RMB 240 in 2019 to RMB 166 in 2020[194] - Revenue from managed and franchised hotels decreased by 6.2% from RMB 3,342 million in 2019 to RMB 3,136 million in 2020, with ADR dropping from RMB 188 in 2019 to RMB 146 in 2020[195] - Total operating costs and expenses increased by 29.1% from RMB 9,236 million in 2019 to RMB 11,925 million in 2020, primarily due to the consolidation of Deutsche Hospitality[195] - Hotel operating costs increased by 35.3% from RMB 7,190 million in 2019 to RMB 9,729 million in 2020, with the cost-to-revenue ratio rising from 64.1% in 2019 to 95.4% in 2020[196] - Sales and marketing expenses increased by 40.1% from RMB 426 million in 2019 to RMB 597 million in 2020, with the expense-to-revenue ratio rising from 3.8% in 2019 to 5.9% in 2020[198] - General and administrative expenses increased by 18.7% from RMB 1,061 million in 2019 to RMB 1,259 million in 2020, with the expense-to-revenue ratio rising from 9.5% in 2019 to 12.3% in 2020[198] - Pre-opening expenses decreased by 42.6% from RMB 502 million in 2019 to RMB 288 million in 2020, with the expense-to-revenue ratio dropping from 4.5% in 2019 to 2.8% in 2020[199] - The company recorded a goodwill impairment loss of RMB 437 million in 2020 related to the acquisition of Deutsche Hospitality[199] - Net interest expense increased from RMB 155 million in 2019 to RMB 414 million in 2020, primarily due to increased bank borrowings and the issuance of 2026 notes[199] COVID-19 Impact - Approximately 98% of Legacy Huazhu hotels in China (excluding those requisitioned by the government) had resumed operations by December 31, 2021[20] - As of December 31, 2021, 147 hotels in China were requisitioned by the government for COVID-19 related purposes[20] - All Deutsche Hospitality hotels in Europe that were temporarily closed due to COVID-19 had resumed operations by December 31, 2021[20] - The company's occupancy rate (excluding requisitioned hotels) dropped to approximately 59% in March 2022 due to COVID-19 outbreaks and city lockdowns in China[77] - As of March 31, 2022, 1,299 Legacy Huazhu hotels were requisitioned by the government for quarantine and medical purposes[78] - The average RevPAR (Revenue per Available Room) for Deutsche Hospitality hotels recovered to 65% of 2019 levels in March 2022, up from 47% in January 2022[80] - Over 2,000 hotels were temporarily closed during the peak of the COVID-19 outbreak in February 2020[77] - The company implemented cost-saving measures, including rent reductions, deferred payments, and workforce optimization, to mitigate COVID-19 impacts[79] - Deutsche Hospitality hotels resumed operations by December 31, 2021, after temporary closures due to COVID-19[79] - The company provided smart non-contact services and financial support to franchisees, including low-interest loans, to maintain hotel operations[78] - Government relief measures, such as wage subsidies and insurance compensations, partially offset the negative impacts of COVID-19 on operations[79] - The company secured exemptions from bank agreements and additional low-interest credit facilities to manage financial challenges during the pandemic[80] - COVID-19-related travel restrictions and lockdowns in Europe disrupted the recovery of Deutsche Hospitality's operations in Q4 2021[79] - Due to COVID-19, 610 hotels in China were temporarily closed in Q1 2020, and 147 hotels in China were requisitioned by the government as of December 31, 2021[142] - Legacy Huazhu's available room nights, excluding requisitioned or temporarily closed hotels, were 234.8 million as of December 31, 2021[142] - Legacy DH's available room nights, excluding a small number of hotels temporarily closed for reasons unrelated to COVID-19, were 8 million as of December 31, 2021[143] Franchise and Management Agreements - The company charges franchisees an initial franchise fee ranging from RMB 80,000 to RMB 1,000,000 per hotel and a monthly franchise fee of approximately 3% to 6.5% of the total revenue generated by each managed franchised hotel[26] - The company's franchise and managed franchise agreements typically have an initial term of 8 to 10 years, which can be extended upon mutual agreement between the company and the franchisee[26] - For Deutsche Hospitality's managed franchised hotels, the company charges a base fee of 0.5% to 3.5% of the hotel's revenue and an incentive fee of 6% to 10% of the hotel's adjusted total operating profit[27] - The company is gradually revising the terms of Deutsche Hospitality's franchise and management agreements to align with those of its other managed franchised hotels[27] - The company's franchise agreements for franchised hotels typically have an initial term of 8 to 10 years, which can be extended upon mutual agreement between the company and the franchisee[29] - Deutsche Hospitality franchisees typically pay a franchise fee of 0.5% to 4.0% of total room revenue or turnover, with some international hotels charged a fixed fee ranging from €40,000 to €150,000 annually[30] - The company charges franchisees an upfront franchise fee ranging from RMB 80,000 to RMB 1,000,000 per hotel for Legacy Huazhu managed franchise hotels, with monthly franchise fees of approximately 3% to 6.5% of total revenue generated by each hotel[161] - For Deutsche Hospitality managed franchise hotels, franchisees historically pay a base fee of 0.5% to 3.5% of the hotel's revenue and an incentive fee of 6% to 10% of the hotel's adjusted total operating profit[162] - The company is gradually adjusting the terms of Deutsche Hospitality's franchise and management agreements to align with those of other managed franchise hotels[162] - For Legacy Huazhu franchise hotels, the company charges fees similar to those for managed franchise hotels, but does not appoint hotel managers or charge monthly management service fees[163] - For Deutsche Hospitality franchise hotels, franchisees historically pay a franchise fee of approximately 0.5% to 4.0% of the hotel's total room revenue or turnover, with some hotels outside Germany paying a fixed annual franchise fee ranging from EUR 40,000 to EUR 150,000[164] Technology and Innovation - The company has implemented a proprietary, scalable technology infrastructure, leveraging advanced technologies like AI, big data, and IoT to enhance operational efficiency and profitability[61] - A global business integration plan was launched in 2021 to combine the company's rapid growth and digital expertise with Deutsche Hospitality's service excellence and international network[61] - The company's CRM system tracks member data, including booking history, spending patterns, and loyalty points, to provide targeted promotions and improve customer loyalty[61] - The company's Central Reservation System (CRS) operates 24/7, enabling real-time inventory management and improving booking efficiency, customer satisfaction, and profitability[62] - The Central Revenue Management System (RMS) automatically adjusts room rates across the hotel network in minutes, optimizing average daily rate (ADR) and occupancy rates[62] - The Central Procurement System (CPS) is one of the largest in China's hospitality industry, enabling cost-effective bulk purchasing of supplies[63] - The Cloud Property Management System (Cloud-PMS) integrates with CRS and CRM, enhancing operational efficiency and profitability across the hotel network[64] - The "Easy Room" digital system reduces the time between check-out and check-in, improving room turnover efficiency[65] - The company has deployed AI-driven smart robots in hotels to enhance operational efficiency and guest experience[65] - The AI-powered smart assistant, integrated into the mobile app, improves guest interaction and experience[66] - The company's payment systems comply with PCI DSS standards, and it holds ISO27001 and ISO27701 certifications for data security[67] -
华住集团-S(01179) - 2021 - 年度财报