Business

Stock News in Focus: Huazhu Group Limited (NASDAQ:HTHT)

 Huazhu Group Limited (NASDAQ:HTHT) stock identified change of 27.23% away from 52-week low price and recently located move of -30.20% off 52-week high price. It has market worth of $8755.08M and dividend yield of 1.07%. HTHT stock has been recorded -4.86% away from 50 day moving average and -6.93% away from 200 day moving average. Moving closer, we can see that shares have been trading -1.62% off 20-day moving average.

On Aug.21, 2019, Huazhu Group Limited (NASDAQ:HTHT) a leading and fast-growing multi-brand hotel group in China, disclosed its unaudited financial results for the second quarter ended June 30, 2019.

Second Quarter of 2019 Operational Highlights

  • During the second quarter of 2019, Huazhu opened 311 hotels, including 8 leased (leased-and-operated) hotels and 303 manachised (franchised-and-managed) hotels and franchised hotels.
  • Huazhu closed a total of 42 hotels, including 10 leased hotels and 32 manachised and franchised hotels, during the second quarter of 2019. This was due to three reasons:
  • With strategic focus to upgrade product and service quality, Huazhu temporarily closed 25 hotels for brand upgrade and business model change purposes; and removed 1 hotel for its non-compliance with Huazhu’s brand and operating standards.
  • Property-related issues, including rezoning and expiry of leases, which resulted in the closure of 14 hotels.
  • Two manachised hotels were closed due to operating losses.
  • As of June 30, 2019, Huazhu had 696 leased hotels, 3,692 manachised hotels, and 277 franchised hotels in operation in 413 China cities. The number of hotel rooms in operation totaled 463,296, an increase of 17.8% from a year ago. The rooms under midscale and upscale brands accounted for 43% of total rooms in operation, up 9 percentage points from 34% a year ago.
  • As of June 30, 2019, Huazhu had a total number of 1,553 unopened pipeline hotels contracted or under construction, including 55 leased hotels and 1,498 manachised and franchised hotels. The unopened hotels in our pipeline represented 33% of the number of hotels in operation as of the end of Q2 2019 compared to 21% a year ago, a 12-percentage-point increase.
  • The ADR, which is defined as the average daily rate for all hotels in operation, was RMB236 in the second quarter of 2019, compared with RMB226 in the second quarter of 2018 and RMB221 in the previous quarter. The year-over-year increase of 4.4% was due to both an increase in ADR of our mature hotels (where mature means those of our hotels which have been in operation for at least 18 months), as well as an increase in the proportion of midscale and upscale hotels with higher ADR in Huazhu’s brand mix. The sequential increase resulted mainly from seasonality.
  • The occupancy rate for all hotels in operation was 86.9% in the second quarter of 2019, compared with 89.6% in the second quarter of 2018 and 80.6% in the previous quarter. The year-over-year decrease of 2.7 percentage points was due to the deepening China economic slowdown. The sequential increase was mainly due to seasonality.
  • RevPAR, defined as revenue per available room for all hotels in operation, was RMB206 in the second quarter of 2019, compared with RMB203 in the second quarter of 2018 and RMB178 in the previous quarter. The year-over-year increase of 1.3% was attributable to higher ADR. The sequential increase was mainly due to seasonality.
  • For all of our mature hotels, the same-hotel RevPAR was RMB202 for the second quarter of 2019, representing a 2.1% decrease from RMB206 for the second quarter of 2018, with a 0.4% increase in ADR and a 2.3-percentage-point decrease in occupancy rate. The year-over-year weaker performance was mainly due to macroeconomic softness.
  • As of June 30, 2019, Huazhu’s loyalty program had approximately 132 million members, who contributed approximately 75% of room nights sold during the second quarter of 2019, and approximately 84% of room nights were sold through Huazhu’s direct channels.

 The Services sector company, Huazhu Group Limited noticed change of -4.00% to $31.68 along volume of 3903120 shares in recent session compared to an average volume of 1425.51K. The stock observed return of 3.80% in 5 days trading activity. The stock was at -5.15% over one month performance. HTHT’s shares are at -7.91% for the quarter and driving a -4.52% return over the course of the past year and is now at 10.65% since this point in 2018. 

 The average volatility for the week at 4.75% and for month was at 3.60%. There are 276.36M shares outstanding.Right now the stock beta is 1.8. 

Leave a Reply

Your email address will not be published. Required fields are marked *