Hotel Network Expansion and Development - The company expanded its hotel network from 6,789 hotels as of December 31, 2020, to 8,543 hotels as of December 31, 2022, with a compound annual growth rate of 12.2%[3] - As of December 31, 2022, the company had 8,543 operating hotels, including 704 leased and owned hotels and 7,839 managed and franchised hotels, totaling 809,478 hotel rooms[3] - The company is developing 2,580 new hotels, including 40 leased and owned hotels and 2,540 managed and franchised hotels[3] - The company operates over 20 distinctive hotel brands, covering all market segments[3] - The company operates 8,543 hotels as of December 31, 2022, with 2,580 hotels under development[33] - The company's hotel network covers 882 cities across 31 provinces, autonomous regions, and municipalities in Greater China, as well as 17 other countries[33] - The company has 704 leased and owned hotels, 7,617 managed and franchised hotels, and 222 franchised hotels as of December 31, 2022[33] - The company has 9 operating hotels under the 美侖美奐 brand, with 8 under development in China[24] - The company has 53 operating hotels under the 花間堂 brand, with 49 under development[26] - The company has 54 operating hotels under the 施柏閣 brand, with 8 under development, including 11 operating hotels and 3 under development in China[27] - The company has 9 operating hotels under the 施柏閣大觀 brand, with 1 under development[30] - The company has 6 operating hotels under the 宋品 brand, with 4 under development[31] - The company has 572 hotels in China temporarily requisitioned due to COVID-19 as of December 31, 2022[34] - 40 leased and owned hotels are under development, with 34 in the pre-conversion phase and 6 in the conversion phase, with a total budgeted development cost of RMB 164 million (USD 24 million)[36] - 2,540 managed and franchised hotels are under development, with 1,790 in the pre-conversion phase and 750 in the conversion phase[36] - 695 leased hotels and 9 owned hotels are in operation, accounting for approximately 8.2% of the company's total operating hotels[38] - 7,617 managed hotels and 222 franchised hotels are in operation, accounting for approximately 89% and 3% of the company's total operating hotels, respectively[40] - The company has 628 leases for operating and under-development hotels, with 58 leases expiring in 2023 and 143 leases expiring between 2028 and 2030[39] - The company renewed 25 leases, converted 17 to managed and franchised hotels, and terminated 25 leases out of 67 leases that expired in 2022[38] - The company primarily uses management franchise and franchise models to expand its network with lower capital intensity[45] - The company's development department analyzes economic data to determine target locations in each city and regularly formulates a three-year development plan for new hotels[45] - The investment committee evaluates potential management franchise and franchise opportunities based on factors such as location attractiveness, potential franchisee quality, and product compliance with standards[45] - The company seeks properties in economically developed cities with convenient locations, typically accommodating 80 to 300 rooms[48] - The company uses a centralized procurement system to purchase most construction materials and supplies for new hotels[48] - The company provides technical expertise and recommends pre-selected qualified suppliers to franchisees, and appoints or trains hotel managers to ensure consistent service quality[47] - The company's hotel network expanded from 6,789 hotels as of December 31, 2020, to 8,543 hotels as of December 31, 2022, with a compound annual growth rate of 12.2%[116] - The company is developing an additional 2,580 new hotels, including 40 leased and owned hotels and 2,540 managed and franchised hotels[116] - Total operating hotels increased from 6,669 in 2020 to 8,411 in 2022, with Legacy Huazhu accounting for the majority[122] - Total operating hotel rooms grew from 628,135 in 2020 to 783,174 in 2022, with Legacy Huazhu contributing the most[122] Loyalty Program and Sales Channels - The company's loyalty program, Huazhu Club, had over 199 million members as of December 31, 2022, with 76% of Legacy Huazhu room nights sold to individual or corporate members of Huazhu Club in 2022[3] - In 2022, approximately 87% of room nights were sold through the company's sales channels[3] - The company's loyalty program, Huazhu Club, had over 199 million members as of December 31, 2022[58] - 76% of Legacy Huazhu's room nights in 2022 were sold to Huazhu Club members[58] - Legacy Huzahu had 87% of room nights sold through its own sales channels in 2022, with the remaining 13% sold through intermediaries[58] - The company's integrated CRM system tracks member data, including booking history, points accumulation, and prepaid balances, to enhance customer loyalty and targeted promotions[52] Financial Performance - The company's total revenue for 2022 was RMB 13,862 million (USD 2,010 million), with a net loss attributable to Huazhu Group of RMB 1,821 million (USD 264 million)[4] - The company's adjusted EBITDA (non-GAAP) for 2022 was RMB 610 million (USD 88 million)[4] - Total revenue for 2020, 2021, and 2022 was RMB 10,196 million, RMB 12,785 million, and RMB 13,862 million (USD 2,010 million), respectively[116] - Net losses attributable to Huazhu Group for 2020, 2021, and 2022 were RMB 2,192 million, RMB 465 million, and RMB 1,821 million (USD 264 million), respectively[116] - Adjusted EBITDA (non-GAAP) for 2020, 2021, and 2022 was negative RMB 244 million, RMB 1,571 million, and RMB 610 million (USD 88 million), respectively[116] - Net cash generated from operating activities for 2020, 2021, and 2022 was RMB 609 million, RMB 1,342 million, and RMB 1,564 million (USD 227 million), respectively[116] - Revenue from leased and owned hotels accounted for 66.0% of total revenue in 2022, amounting to RMB 9,148 million (USD 1,326 million)[132] - Revenue from managed and franchised hotels increased from RMB 3,136 million in 2020 to RMB 4,405 million in 2022, representing 31.8% of total revenue[132] - Total revenue grew from RMB 10,196 million in 2020 to RMB 13,862 million in 2022, with a significant contribution from other income sources[132] - The company's Legacy Huazhu business accelerated recovery from mid-November 2022 following the modification of COVID policies by Chinese authorities[121] - Legacy DH hotels' RevPAR has been rebounding since March 2022, with all temporarily closed hotels resuming operations by December 31, 2022[121] - The company's available room nights for Legacy Huazhu increased from 193.8 million as of December 31, 2020, to 229.5 million as of December 31, 2022, excluding temporarily requisitioned or closed hotels[121] - Legacy Huazhu's RevPAR (Revenue per Available Room) for all operating hotels decreased from RMB 172 in 2021 to RMB 157 in 2022, impacted by the Omicron variant[125] - Legacy DH's RevPAR for all operating hotels increased from €32 in 2021 to €62 in 2022, showing significant recovery post-COVID-19 restrictions[126] - Legacy Huazhu had 572 hotels temporarily requisitioned and 10 hotels temporarily closed as of December 31, 2022, affecting operations[123] - Legacy Huazhu's quarterly average RevPAR (RMB) for leased and owned hotels increased from 156 in Q1 2021 to 176 in Q4 2022, with a peak of 252 in Q2 2021[128] - Legacy DH's quarterly average RevPAR (EUR) for franchised hotels rose from 20 in Q1 2021 to 82 in Q4 2022, showing consistent growth[129] - The number of Legacy Huazhu hotels operating for at least 18 months increased from 4,209 in Q1 2021 to 5,296 in Q4 2022[130] - Legacy Huazhu's same-store RevPAR change (YoY) showed a significant decline of 36.2% in Q2 2022 but recovered to a 3.9% increase in Q3 2022[130] - Total revenue increased by 8.4% from RMB 12,785 million in 2021 to RMB 13,862 million (USD 2,010 million) in 2022, driven by the strong recovery of European operations following the lifting of COVID-19 restrictions[149] - Revenue from leased and owned hotels grew by 12.7% from RMB 8,118 million in 2021 to RMB 9,148 million (USD 1,326 million) in 2022, with Legacy DH contributing significantly due to the European recovery[149] - Revenue from managed and franchised hotels remained stable at RMB 4,404 million in 2021 and RMB 4,405 million (USD 639 million) in 2022, with Legacy DH showing a 30.6% increase[149] - Other income increased by 17.5% from RMB 263 million in 2021 to RMB 309 million (USD 45 million) in 2022[150] - Total operating costs and expenses rose by 8.1% from RMB 13,607 million in 2021 to RMB 14,705 million (USD 2,132 million) in 2022[150] - Hotel operating costs increased by 8.7% from RMB 11,282 million in 2021 to RMB 12,260 million (USD 1,777 million) in 2022, with cost control measures partially offsetting the rise[150] - Legacy Huazhu's hotel operating costs accounted for 86.1% of its total revenue in 2022, compared to 78.3% in 2021[150] - The company recognized negative rental expenses of RMB 281 million in 2022 due to COVID-19-related rent reductions[150] - Net loss attributable to Huazhu Group Limited was RMB 1,821 million (USD 264 million) in 2022, compared to RMB 465 million in 2021[148] - Legacy Huazhu's total revenue decreased by 5.3% to RMB 10,655 million (USD 1,545 million) in 2022, primarily due to the negative impact of COVID-19 restrictions[149] - Sales and marketing expenses decreased by 4.4% from RMB 641 million in 2021 to RMB 613 million (USD 89 million) in 2022, with the expense ratio dropping from 5.0% to 4.4% of total revenue[151] - General and administrative expenses increased by 8.4% from RMB 1,545 million in 2021 to RMB 1,675 million (USD 243 million) in 2022, maintaining a stable ratio of 12.1% of total revenue[151] - Pre-opening expenses increased by 17.3% from RMB 81 million in 2021 to RMB 95 million (USD 14 million) in 2022, with the ratio rising from 0.6% to 0.7% of total revenue[151] - Operating loss of RMB 294 million (USD 43 million) in 2022, compared to an operating profit of RMB 164 million in 2021[152] - Net interest expense of RMB 322 million (USD 46 million) in 2022, with interest income of RMB 87 million (USD 13 million) and interest expense of RMB 409 million (USD 59 million)[152] - Unrealized loss on equity securities fair value changes of RMB 359 million (USD 52 million) in 2022, primarily due to the decline in Accor share prices[153] - Foreign exchange loss of RMB 641 million (USD 93 million) in 2022, mainly due to euro-denominated investments and receivables[153] - Net loss attributable to Huazhu Group Limited increased from RMB 465 million in 2021 to RMB 1,821 million (USD 264 million) in 2022[153] - Adjusted EBITDA (non-GAAP) decreased from RMB 1,571 million in 2021 to RMB 610 million (USD 88 million) in 2022[154] - Total revenue increased by 25.4% from RMB 10,196 million in 2020 to RMB 12,785 million in 2021, driven by recovery from COVID-19[155] - Total operating costs and expenses increased by 14.1% from RMB 11,925 million in 2020 to RMB 13,607 million in 2021[156] - Hotel operating costs rose by 16.0% from RMB 9,729 million in 2020 to RMB 11,282 million in 2021, with the cost-to-revenue ratio dropping from 95.4% to 88.3%[156] - Sales and marketing expenses increased by 7.4% from RMB 597 million in 2020 to RMB 641 million in 2021, with the cost-to-revenue ratio decreasing from 5.9% to 5.0%[157] - General and administrative expenses grew by 22.7% from RMB 1,259 million in 2020 to RMB 1,545 million in 2021, with the cost-to-revenue ratio slightly decreasing from 12.3% to 12.1%[157] - Pre-opening expenses decreased by 71.9% from RMB 288 million in 2020 to RMB 81 million in 2021, with the cost-to-revenue ratio dropping from 2.8% to 0.6%[157] - Operating profit for 2021 was RMB 164 million, compared to an operating loss of RMB 1,686 million in 2020[157] - Net interest expense decreased to RMB 316 million in 2021 from RMB 414 million in 2020, due to reduced bank borrowings[157] - Other net profit for 2021 was RMB 157 million, compared to a net expense of RMB 89 million in 2020, driven by realized gains from the sale of part of Accor shares[158] - EBITDA (non-GAAP) for 2021 was RMB 1,366 million, compared to a negative RMB 631 million in 2020, with adjusted EBITDA at RMB 1,571 million[159] - The company issued USD 500 million in 2026 notes with a 3.00% annual interest rate and secured a RMB 650 million syndicated loan for headquarters construction[160] - The company secured a one-year uncommitted term loan facility of up to $123 million in October 2022, with $121 million drawn at a fixed annual interest rate of 5.4%. As of December 31, 2022, the outstanding loan amount was $121 million[161] - As of December 31, 2022, the company's total debt balance was RMB 9.9 billion ($1.4 billion), with unused credit facilities of approximately RMB 2.1 billion[161] - The company had cash and cash equivalents of RMB 3.583 billion ($520 million) as of December 31, 2022[162] - The company expects to incur capital expenditures of approximately RMB 1.487 billion ($216 million) for the renovation and equipment installation of 40 leased and owned hotels, to be spent over the next one to two years[162] - Net cash generated from operating activities in 2022 was RMB 1.564 billion ($227 million), primarily due to non-cash lease expenses of RMB 2.257 billion ($327 million) and depreciation and amortization of RMB 1.456 billion ($211 million)[164] - Net cash used in investing activities in 2022 was RMB 522 million ($76 million), a decrease from RMB 1.402 billion in 2021, mainly due to reduced acquisition costs and lower purchases of property and equipment[165] - Net cash used in financing activities in 2022 was RMB 1.394 billion ($201 million), compared to RMB 1.801 billion in 2021, primarily due to proceeds from short-term and long-term debt, partially offset by repayments of convertible preferred notes and other debts[166] - The company's cash, cash equivalents, and restricted cash decreased by RMB 55 million ($7 million) in 2022, ending the year with RMB 5.086 billion ($738 million)[163] - Capital expenditures for 2020, 2021, and 2022 were RMB 1,776 million, RMB 1,675 million, and RMB 1,053 million (USD 153 million) respectively, with 2022 including RMB 1,049 million (USD 152 million) for property and equipment and RMB 4 million (USD 1 million) for software and licenses[167] - Variable interest entities contributed less than 2% of the company's retained earnings for 2020, 2021, and 2022[168] - Subsidiaries paid approximately RMB 29 million, RMB 34 million, and RMB 30 million (USD 4 million) to variable interest entities for telecommunications and internet-related services in 2020, 2021, and 2022 respectively[169] - Variable interest entities lent approximately RMB 14 million, RMB 21 million, and RMB 2 million (USD 0.3 million) to subsidiaries in 2020, 2021, and 2022 respectively, with subsidiaries repaying RMB 3 million, RMB 7 million, and RMB 5 million (USD 1 million) in the same periods[169] - Subsidiaries borrowed approximately RMB 6,267 million, RMB 1,050 million, and RMB 750 million (USD 109 million) from the company in 2020, 2021, and
华住集团-S(01179) - 2022 - 年度财报