SHANGHAI, China, Jan. 14, 2020 (GLOBE NEWSWIRE) -- Huazhu Group Limited (NASDAQ: HTHT) (“Huazhu” or “our”), a leading and fast-growing hotel group, today announced preliminary results for hotel operations in the fourth quarter and the full year ended December 31, 2019.

Hotel Development

  Number of hotels in operation   Number of rooms in operation   Opened Closed Net As of   Net As of (1) added added   in Q4 2019 in Q4 in Q4 December 31, 2019   in Q4 December 31, 2019 2019 2019 2019 ---------- ------ ----- ----------------- -------- ----------------- Leased and owned hotels 11 (20 ) (9 ) 688 (741 ) 87,465 Manachised and franchised hotels 619 (143 ) 476 4,930 33,203 449,411 Total 630 (163 ) 467 5,618 32,462 536,876 -------------------------------- ---------- ---- - --- - ----------------- ------ - ----------------- (1) Reasons for closures include property-related issues, operating loss and non-compliance issues. In Q4 2019, 56 hotels were temporarily closed for brand upgrade and business model change purposes.

  As of December 31, 2019   Number of hotels in operation Unopened hotels in pipeline ----------------------------- --------------------------- Economy hotels 3,485 826 Leased and owned hotels 415 2 Manachised and franchised hotels 3,070 824 Midscale and upscale hotels 2,133 1,436 Leased and owned hotels 273 41 Manachised and franchised hotels 1,860 1,395 Total 5,618 2,262 -------------------------------- ----------------------------- ---------------------------

Operating Metrics

  For the quarter   ended   DecembeSeptembDecembeyoy r 31, er 30, r 31,   2018 2019 2019 change ------ ------ ------ --------- Average daily room rate (in RMB)         Leased and owned hotels 275 288 277 0.9 % Manachised and franchised hotels 218 235 223 2.1 % Blended 230 245 232 0.9 % -------------------------------- ---- - ---- - ---- - ---- ---- Occupancy rate (as a percentage)         Leased and owned hotels 86.7 % 90.0 % 84.7 % -2.0 pp Manachised and franchised hotels 84.8 % 87.2 % 81.6 % -3.1 pp Blended 85.2 % 87.7 % 82.2 % -3.0 pp -------------------------------- ---- - ---- - ---- - ---- ---- RevPAR (in RMB)         Leased and owned hotels 238 259 235 -1.4 % Manachised and franchised hotels 185 205 182 -1.7 % Blended 196 215 191 -2.7 %(2) -------------------------------- ---- - ---- - ---- - ---- ----

(2) Excluding our soft brands (Hi Inn, Elan, Starway, Madison and Grand Madison), the blended RevPAR for 2019Q4 declined by 0.5% year-over-year.

  For the full year ended   DecembeDecembeyoy r 31, r 31,   2018 2019 change -------------------------------- ------ ------ --------- Average daily room rate (in RMB)       Leased and owned hotels 267 276 3.6 % Manachised and franchised hotels 214 224 4.6 % Blended 226 234 3.6 % -------------------------------- ---- - ---- - ---- ---- Occupancy rate (as a percentage)       Leased and owned hotels 89.0 % 87.0 % -2.0 % Manachised and franchised hotels 86.9 % 83.8 % -3.1 % Blended 87.3 % 84.4 % -3.0 % -------------------------------- ---- - ---- - ---- ---- RevPAR (in RMB)       Leased and owned hotels 237 240 1.2 % Manachised and franchised hotels 186 188 0.8 % Blended 197 198 0.1 %(3) -------------------------------- ---- - ---- - ---- ----

(3) Excluding our soft brands (Hi Inn, Elan, Starway, Madison and Grand Madison), the blended RevPAR for 2019 grew by 0.8%.

Business Update by Segment

Hotel and room portfolio by brand                       Number of hotels in Number of rooms in operation operation   Net As of   Net As of added added   in Q4 December 31, 2019   in Q4 December 31, 2019 2019 2019 ----------------------------- ----- ------------------ - -------- ----------------- Economy hotels 281 3,485   12,473 290,615 HanTing Hotel (9 ) 2,372   (3,299 ) 224,626 Hi Inn 15 465   871 28,153 Elan Hotel 275 648   14,901 37,836 ----------------------------- --- - ------------------ - ------ - ----------------- Midscale and upscale hotels 186 2,133   19,989 246,261 HanTing Premium Hotel 34 214   3,363 19,748 Ibis Hotel 6 185   472 20,533 Ibis Styles Hotel 5 55   549 6,681 Starway Hotel 33 350   3,099 30,363 JI Hotel 72 831   8,289 104,521 Orange Select Hotel 15 248   1,510 28,821 Crystal Orange Hotel 8 85   975 11,182 Manxin Hotels & Resorts 7 46   825 4,133 Madison Hotel 4 9   347 883 Mercure Hotel 5 68   530 12,502 Novotel Hotel 0 9   0 2,928 Grand Madison Hotel 3 4   569 772 Joya Hotel 0 6   0 1,250 Blossom Hill Hotels & Resorts (4 ) 17   (79 ) 648 Grand Mercure Hotel (2 ) 6   (460 ) 1,296 Total 467 5,618   32,462 536,876 ----------------------------- --- - ------------------ - ------ - -----------------            

Same-hotel operational data by segment Number of hotels Same-hotel Same-hotel ADR Same-hotel Occupancy RevPAR For the For the For the As of quarter yoy quarter yoy quarter ended yoy ended ended December 31, December change December December 31, change 31, 31, change 2018 2019 2018 2019 2018 2019 2018 2019 (p.p.) ---------- ---- ---- ------ ---- ---- ------ ---- - ---- - ------ Economy hotels 2,467 2,467 165 155 -6.2 % 183 179 -2.4 % 90.0 % 86.5 % -3.5 Leased and owned hotels 409 409 180 172 -4.4 % 200 198 -0.7 % 90.2 % 86.9 % -3.3 Manachised and franchised hotels 2,058 2,058 161 151 -6.7 % 179 174 -2.9 % 90.0 % 86.4 % -3.6 ---- - ---- - ---- - ---- - ------ Midscale and upscale hotels 950 950 266 253 -4.7 % 324 309 -4.4 % 82.0 % 81.8 % -0.2 Leased and owned hotels 199 199 330 309 -6.3 % 389 366 -5.9 % 84.8 % 84.4 % -0.3 Manachised and franchised hotels 751 751 243 233 -4.1 % 300 289 -3.8 % 81.1 % 80.9 % -0.2 ---- - ---- - ------ Total 3,417 3,417 199 188 -5.4 % 228 222 -2.7 % 87.3 % 84.9 % -2.4 -------------------------------- ----- ---------- ---- ---- ---- - ---- ---- ---- - ---- - ---- - ------ Number of hotels Same-hotel Same-hotel ADR Same-hotel Occupancy RevPAR For the For the For the year As of year yoy year yoy ended yoy ended ended December 31, December change December December 31, change 31, 31, change 2018 2019 2018 2019 2018 2019 2018 2019 (p.p.) ---------- ---- ---- ------ ---- ---- ------ ---- - ---- - ------ Economy hotels 2,467 2,467 170 164 -3.0 % 184 184 0.3 % 92.2 % 89.1 % -3.1 Leased and owned hotels 409 409 183 182 -0.4 % 198 202 1.7 % 92.0 % 90.0 % -2.0 Manachised and franchised hotels 2,058 2,058 166 160 -3.8 % 180 180 -0.2 % 92.2 % 88.9 % -3.3 ---- - ---- - ---- - ---- - ------ Midscale and upscale hotels 950 950 269 261 -3.2 % 323 317 -1.8 % 83.4 % 82.2 % -1.2 Leased and owned hotels 199 199 332 317 -4.6 % 385 374 -3.0 % 86.3 % 84.9 % -1.4 Manachised and franchised hotels 751 751 245 239 -2.5 % 298 294 -1.2 % 82.3 % 81.2 % -1.1 ---- - ---- - ------ Total 3,417 3,417 201 194 -3.1 % 224 224 -0.3 % 89.5 % 87.0 % -2.5 -------------------------------- ----- ---------- ---- ---- ---- - ---- ---- ---- - ---- - ---- - ------

About Huazhu Group LimitedHuazhu Group Limited is a leading hotel operator and franchisor. As of December 31, 2019, Huazhu operated 5,618 hotels with 536,876 rooms in operation. Huazhu’s brands include Hi Inn, Elan Hotel, HanTing Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel, Orange Hotel Select, Crystal Orange Hotel, Manxin Hotels & Resorts, Joya Hotel, and Blossom Hill Hotels & Resorts. Huazhu 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. Huazhu completed the acquisition of Deutsche Hospitality on January 2, 2020, further expanding our brands portfolio to include Steigenberger Hotels & Resorts, Maxx by Steigenberger, Jaz Hotel, Intercity Hotel and Zleep Hotel.

Huazhu’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, Huazhu directly operates hotels typically located on leased or owned properties. Under the manachise model, Huazhu manages manachised hotels through the on-site hotel managers Huazhu appoints and collects fees from franchisees. Under the franchise model, Huazhu provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. Huazhu applies a consistent standard and platform across all of its hotels. As of December 31, 2019, Huazhu operates 16 percent of its hotel rooms under lease and ownership model, and 84 percent under manachise and franchise models.

For more information, please visit Huazhu’s website: http://ir.huazhu.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; the economic conditions of China; the regulatory environment in China; 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 in China; 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.

Huazhu 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 InformationHuazhu Investor RelationsTel: 86 (21) 6195 9561Email: ir@huazhu.comhttp://ir.huazhu.com

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