China’s Huazhu Group reports solid recovery in Q2 2021 hotel operations

Huazhu Group provides preliminary results for its hotel operations in the Q2 2021.

The company has achieved 100% recovery in June’s revenue generated per available room ((RevPAR)); however, down from 106% in May due to COVID-19 resurgence in Guangdong Province and traffic control in Beijing for the celebration of centenary of the Communist Party of China since late May.

Q2 RevPAR compared to 2019 levels: Leased and owned hotels, RMB252 (+0.1%); Manachised and franchised hotels, RMB203 (+4.4%); and Blended, RMB210 (+2.2%).

For Legacy-Huazhu business, the RevPAR recovered to 102% of 2019, slightly below the company’s previous expectation.

Steigenberger Hotels AG and its subsidiaries saw an initial recovery of hotel demand along with vaccination process in Germany. The recovery continued with occupancy rate reaching 35% in July.

“But the recovery is still uncertain given that the recent news shows there is possibly another upcoming wave of delta variant of COVID-19 resurgence in European countries,” notes the company.

As of June 30, 2021, 17 Ni Hao Hotels were included in the operational hotel for Elan Hotels and 111 in the pipeline.

Author: Shweta Agarwal, Seeking Alpha

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