- Huazhu Group Ltd (NASDAQ:HTHT) reported fourth-quarter FY21 revenue growth of 9.1% year-on-year, to RMB3.5 billion ($526 million), missing the consensus of $530.15 million.
- Hotel turnover increased 8.3% Y/Y to RMB11.9 billion in Q4.
- Adjusted loss per ADS was $(0.11) for the quarter.
- Revenue from the Legacy-Huazhu segment decreased 1.6% Y/Y. The occupancy rate for all Legacy-Huazhu hotels in operation was 68.2% in Q4, compared with 80.6% in 4Q20.
- Revenue from the Legacy-DH segment was RMB574 million (+129.6% Y/Y).
- Hotel operating cost for the quarter was RMB3.2 billion ($501 million), compared to RMB2.7 billion in 4Q20.
- Income from operations was RMB39 million ($6 million), compared to a loss from operations of RMB(134) million a year ago.
- The total operating margin was 1.2%. The operating margin from the Legacy-Huazhu segment was 2.2% versus 11.2% in 4Q20.
- HTHT’s operating cash inflow for the quarter was RMB867 million ($136 million). As of December 31, 2021, Huazhu held cash and equivalents of $807 million.
- The company had 7,830 hotels or 753,216 hotel rooms in operation as of December 31, 2021.
- 1Q22 Guidance: Huazhu expects revenue growth to be 11% - 15% compared to 1Q21, or 1% - 5% if excluding DH.
- FY22 Guidance: Huazhu expects to open around 1,500 hotels and close 500-550 hotels in 2022. It expects revenue growth to range from 15% - 20% compared to FY21 or 4% - 9% if excluding DH.
- Price Action: HTHT shares are trading lower by 0.53% at $33.76 on the last check Wednesday.
