On January 22, Huazhu Group Limited (Huazhu Group, NASDAQ: HTHT; 01179.HK) disclosed preliminary hotel operating results for the fourth quarter and full year 2023.
In terms of business from Huazhu China, the Group’s hotels in China, RevPAR (average rentable room revenue) recovered to 120% of 2019 levels in the fourth quarter of 2023, supported by continued recovery in leisure and business travel demand, the announcement showed. On a monthly basis, China’s RevPAR in October, November and December 2023 recovered to 120%, 117% and 123% of 2019 levels, respectively.
For the whole of 2023, China’s RevPAR reached 122% of the 2019 level. While the RevPAR growth in 2023 was primarily driven by ADR (average daily rate), occupancy also continued to recover.
According to the data disclosed by Huazhu Group, the comprehensive ADR of Huazhu China’s hotels in the fourth quarter of 2023 was 284 yuan, an increase of 18.3% over the same period in 2019, an increase of 22.5%; The occupancy rate reached 80.5%, a decrease of 1.7 percentage points compared with the same period in 2019 and an increase of 14.3 percentage points year-on-year; RevPAR was 229 yuan, an increase of 43.8% year-on-year and 20% higher than the same period in 2019.
For the whole year of 2023, the comprehensive ADR of Huazhu China’s hotels was 299 yuan, an increase of 26.6% year-on-year and 34.5% compared with 2019; The occupancy rate was 81.1%, an increase of 14.4 percentage points year-on-year and a decrease of 3.3 percentage points compared with 2019; RevPAR was 242 yuan, an increase of 53.9% year-on-year and 22.4% compared to 2019.
It is worth mentioning that, according to data obtained from Huazhu Group by Thepaper.cn (www.thepaper.cn), since the beginning of winter, as Harbin’s tourism popularity continues to heat up, the occupancy rate of Huazhu Group’s hotels in Harbin has reached the peak almost overnight: In December 2023, the occupancy rate reached 97.5%, an increase of 1.5% month on month and 34% year on year. According to the person in charge of Huazhu Hotel Harbin, there is still one month to go before the Spring Festival holiday of the Lunar Year of the Dragon in 2024, the hotel reservations of Huazhu Harbin area are also gradually increasing, and on Valentine’s Day on February 14, the hotel reservations in Harbin area have risen to 70%, and there is a continuing trend of rising.
For DH Hotels of Huazhu Group (Steigenberger Hotels GmbH and its affiliates), RevPAR recovered to 111% of 2019 levels in the fourth quarter of 2023 and slightly higher than 2022 levels. This was mainly due to higher average daily rates during the FIFA World Cup and the 27th United Nations Climate Change Conference in the fourth quarter of 2022.
According to the data disclosed by Huazhu Group, the ADR of DH hotels in the fourth quarter of 2023 was 115 euros, a year-on-year decrease of 5.9%; The occupancy rate was 63.8%, an increase of 4.5 percentage points. RevPAR was €73, up 1.3% year-on-year. For the full year 2023, ADR for DH hotels was 113 euros, an increase of 1.4%; The occupancy rate was 63.4%, an increase of 7.2 percentage points. RevPAR was €71, an increase of 14.5%.
In the fourth quarter of 2023, Huazhu Group opened 460 new hotels and closed 225 hotels, resulting in a net increase of 852 hotels for the full year of 2023.
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