Huazhu Group Stock Gains On Q1 Earnings Beat

Huazhu Group Ltd HTHT reported a first-quarter FY22 sales growth of 15.2% year-on-year to $423 million, beating the consensus of $378.25 million.
The occupancy rate for all legacy-Huazhu hotels in operation was 59.2%, down 700 basis points Y/Y.
Blended RevPAR (revenue per available room) was RMB132 versus RMB138 the previous year.
The operating loss for the quarter was RMB(708) million or $(112) million compared to a loss of RMB(575) million last year.
The company held RMB4.1 billion ($655 million) in cash and equivalents as of March 31, 2022.
Adjusted EBITDA was RMB(333) million or $(53) million versus an adjusted EBITDA loss of RMB(133) million last year.
Adjusted loss per ADS of $(0.33) beat the analyst consensus of $(0.38).
The company has suspended providing or updating on annual revenue and hotel openings guidance in the wake of the spread of the Omicron variant in China.
For Q2, Huazhu expects revenue to decline 2% to 6% Y/Y or to decline 23% to 27% if excluding DH.
Price Action: HTHT shares are trading higher by 7.77% at $33.15 on the last check Tuesday.

Overview Rating:

Speculative

0100

Earnings Calendar