H World Group Limited · HKEX:1179

H World — Huazhu Group — Q2 2021 Earnings Presentation

26 slides from H World's earnings presentation, Aug 25, 2021

  1. Slide 1: Second Quarter of 2021 Earnings Call

    Second Quarter of 2021 Earnings Call Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) Aug 25, 2021

  2. Slide 2: Agenda

    AGENDA • 2Q2021 Business Updates • 2Q2021 Operational and Financial Review • COVID-19 Updates and Guidance • Q and A • Appendix 1

  3. Slide 3: RevPAR in Late July Starts to Decline for the Spread of Delta Variant

    RevPAR in late July Start to Decline for the Spread of Delta Variant 从七月下旬开始RevPAR受新一轮疫情影响同比2019年开始下滑 Blended RevPAR in 2021 as % of 2019 COVID-19 resurgence in Guangdong and traffic control in Beijing COVID-19 resurgence in Shanghai, Beijing and Hebei 100% 106% 100% 103% Spread of Delta Stay local

  4. Slide 4: New Signings Hit a Record High in 2021H1

    New Signings Hit a Record High in 2021H1 上半年新签约创新高 Hotels Breakdown Number of New City Coverage (hotels in operation and in (as of June 30) Signings pipeline) 7,004 2,696 1,502 Tier-1 cities, 1,016 11% 38% 836 56% 1,024 Tier-2 cities, 32% 41% Tie-3 and below cities, 33% 57% 21% 11% Hotel in Operatio

  5. Slide 5: Multi-Brand Strategy in Upper Midscale Segment

    Multi-Brand Strategy in Upper Midscale Segment 多品牌探索中高档酒店市场机会 • As of Q2’21: 406 hotels in operation 248 hotels in pipeline • Target: 1000+ Hotels in 2023 ( in operation and in pipeline) 4

  6. Slide 6: Joint Hotel Brand between Steigenberger and Porsche Design Group

    Joint Hotel Brand between Steigenberger and Porsche Design Group 施柏阁携手保时捷设计合作全新酒店品牌 5

  7. Slide 7: CRS Contribution Increased in Lower Tier Cities

    CRS Contribution Increased in Lower Tier Cities 低线城市中央预定贡献占比增加 CRS Contribution by City Tier in Q2’21 Overall Tier 1&2 cities Tier 3 and Below cities 57% 58% 56% *Numbers in this page refers to Legacy-Huazhu business 6

  8. Slide 8: Data Security is of Our Highest Priority

    Data Security is of Our Highest Priority 数据安全是华住的生命线 ISO27001/27701 Certificate Compliance of PCI-DSS 7

  9. Slide 9: One Global Digital Platform Ready for Massive Rollout In DH

    One Global Digital Platform Ready for Massive Rollout In DH 全球数字化平台进入DH规模化推广阶段 One Global Share Service One Direct Digital Platform Channel One CRS • Seamless Guest Journey • Efficiency-driven hotel One One CRM operation Operation • Centralized business model globally One Infrastructure Target to ro

  10. Slide 10: Agenda

    AGENDA • 2Q2021 Business Updates • 2Q2021 Operational and Financial Review • COVID-19 Updates and Guidance • Q and A • Appendix 9

  11. Slide 11: Hotel Network Continued to Expand

    Hotel Network Continued to Expand 酒店网络持续扩张 Hotel Network Expansion Hotel Turnover (Number of rooms in operation) (in RMB millions) 13,137 Legacy-DH 692,284 425 599,235 Legacy-DH 24,614 Legacy-DH 23,324 6,640 Legacy- Legacy-DH Huazhu Legacy- 127 12.712, Huazhu +95% Legacy- 667,670, Huazhu +16% 575,91

  12. Slide 12: Legacy-Huazhu - Blended RevPAR Increased in Q2'21 yoy

    Legacy-Huazhu - Blended RevPAR Increased in Q2’21 yoy 华住中国-二季度混合RevPAR同比增长 ADR +38% yoy and +8% Compared to 2019 (RMB) 236 255 185 RevPAR +65% yoy and +2% Compared to 2019 (RMB) 206 210 Q2'19 Q2'20 Q2'21 127 Occupancy +13 p.p. yoy and -5 p.p. Compared to 2019 87% 82% 69% Q2'19 Q2'20 Q2'21 Q2'19 Q2'2

  13. Slide 13: Legacy-DH - Blended RevPAR Increased in Q2'21 yoy

    Legacy-DH - Blended RevPAR Increased in Q2’21 yoy DH-二季度混合RevPAR同比增长 ADR -6% in Q2’21 (EUR) RevPAR +26% in Q2’21 87 82 (EUR) 20 16 Q2’20 Q2’21 Occupancy +6 p.p. in Q2’21 24% 18% Q2’20 Q2’21 Q2’20 Q2’21 12

  14. Slide 14: Net Revenues: Q2'21 Increased 84%

    Net Revenues: Q2’21 Increased 84% 营收二季度增长84% Net Revenues Net Revenues from Leased and Owned Hotels (in RMB millions) (in RMB millions) +85% 2,282 +84% Legacy-DH 3,587 212 Legacy-DH 1,236 224 Legacy-DH Legacy- 112 Huazhu 1,953 Legacy- Legacy- Huazhu 2,070, +84% Legacy-DH Huazhu 131 3,363 1,124 Legac

  15. Slide 15: Q2'21 Operating Income Turned Positive

    Q2’21 Operating Income Turned Positive 二季度经营利润转亏为盈 Income from Operations Group: -494 Group: -575 Group: 629 ( in RMB millions ) Huazhu -207 Huazhu 763 *Huazhu refers to Legacy-Huazhu *DH refers to Legacy-DH Huazhu -172 DH -287 DH -134 DH -403 Q2'20 Q1'21 Q2'21 Hotel operating costs Pre-opening expe

  16. Slide 16: Adjusted EBITDA and Adjusted Net Income in Q2'21

    Adjusted EBITDA and Adjusted Net Income in Q2’21 二季度调整后的EBITDA和净利润情况 Adjusted EBITDA Adjusted Net Income (in RMB millions) (in RMB millions) Huazhu Group: -97 Huazhu Group: 1,043 Huazhu Group: -476 Huazhu Group: 464 Legacy-Huazhu 1116 Legacy- Huazhu Legacy- 579 Huazhu 138 Legacy- Huazhu -253 Legacy-

  17. Slide 17: Agenda

    AGENDA • 2Q2021 Business Updates • 2Q2021 Operational and Financial Review • COVID-19 Updates and Guidance • Q and A • Appendix 16

  18. Slide 18: COVID-19 Update

    COVID-19 Update 疫情情况更新 • Improved liquidity : 1. Net debt – RMB4.4 billion at June 30, 2021 • Increased available cash and bank facilities at June 30, 2021 1. Cash balance – RMB6.2 billion 2. Legacy-Huazhu Banks facilities – Unutilized bank facilities of RMB6.8 billion 17

  19. Slide 19: COVID-19 Update - Deutsche Hospitality

    COVID-19 Update - Deutsche Hospitality DH疫情情况更新 • DH occupancy rises continuously from about 19% in Q1, 24% in Q2 and roughly 50% in August, 2021. • 93% or 114 of the 122 hotels remained open at beginning of August 2021. • As of August 23rd, about 64% Germans have received at least one shot of vacci

  20. Slide 20: Guidance

    Guidance 业绩指引 Q3 2021 Full year 2021 • Net revenues vs. Q3 2020 • Net revenue vs.2020 • Grow 8%-12% • Grow 29%-33% • Excluding DH - Grow 4-8% • Excluding DH - Grow 34-38% • Net revenue vs. 2019 • Net revenue vs. Q3 2019 • Grow 17%-21% • Grow 12%-16% • Excluding DH - Grow 2-6% • Excluding DH - Declin

  21. Slide 21: Agenda

    AGENDA • 2Q2021 Business Updates • 2Q2021 Operational and Financial Review • COVID-19 Updates and Guidance • Q and A • Appendix 20

  22. Slide 22: Agenda

    AGENDA • 2Q2021 Business Updates • 2Q2021 Operational and Financial Review • COVID-19 Updates and Guidance • Q and A • Appendix 21

  23. Slide 23: Same-Hotel Operational Data by Segment

    Same-Hotel Operational Data by Segment 同店经营数据 Same-hotel operational data by segment Operational hotels excluding hotels under requisition Number of hotels in operation Same-hotel RevPAR Same-hotel ADR Same-hotel Occupancy As of For the quarter ended For the quarter ended For the quarter ended June

  24. Slide 24: Number of Hotels and Rooms

    Number of Hotels and Rooms 酒店数量和房间数量 . As of June, 2021 Total Hotels Rooms Unopened hotels in operation in pipeline Economy hotels 4,465 370,297 1,307 HanTing Hotel 2,834 260,252 740 Hi Inn 430 25,419 83 Elan Hotel 976 60,645 431 Ibis Hotel 211 22,320 41 Zleep Hotels 14 1,661 12 Midscale hotels 2,14

  25. Slide 25: Number of Hotels in Operation

    Number of Hotels in Operation 在营酒店数量 As of As of As of 12/31/2020 3/31/2021 6/30/2021 Economy hotels 4,376 4,397 4,465 HanTing Hotel 2,780 2,767 2,834 Hi Inn 439 436 430 Elan Hotel 938 972 976 Ibis Hotel 205 208 211 Zleep Hotel 14 14 14 Midscale hotels 1,949 2,005 2,146 Ibis Styles Hotel 69 70 78 St

  26. Slide 26: Number of Rooms in Operation

    Number of Rooms in Operation 在营房间数量 As of As of As of 12/31/2020 3/31/2021 6/30/2021 Economy hotels 361,435 363,494 370,297 HanTing Hotel 254,106 255,385 260,252 Hi Inn 25,282 25,228 25,419 Elan Hotel 58,753 59,319 60,645 Ibis Hotel 21,633 21,901 22,320 Zleep Hotel 1,661 1,661 1,661 Midscale hotels

Huazhu Group — Q2 2021 Earnings Presentation on 6ix