H World Group Stock Price, News & Analysis

Huazhu Group Limited (NASDAQ: HTHT) has responded to a recent short seller report by Bonitas Research, released on September 29, 2020, stating that the allegations are unfounded and filled with inaccuracies. The company emphasizes its commitment to transparent corporate governance and adherence to applicable regulations. As of June 30, 2020, Huazhu operated 6,187 hotels across 16 countries, with a diverse portfolio of brands. The firm will limit future responses to allegations unless legally required, emphasizing the importance of not interpreting this as an admission of truth regarding any claims.

Huazhu Group Limited (Nasdaq: HTHT) has formed a special committee to investigate allegations made in a recent short seller report by Bonitas Research LLC. Despite the company's belief that the report is unfounded and contains significant errors, the board aims to ensure transparency for shareholders. The special committee, comprising key executives, will review the claims and has engaged independent legal counsel. Huazhu also plans to submit a preliminary rebuttal to the Hong Kong Stock Exchange addressing the report's inaccuracies.

Huazhu Group Limited (Nasdaq: HTHT) announced the pricing of its global offering of 20,422,150 new ordinary shares at HK$297 each (approx. US$38.32 per ADS). The offering is expected to raise HK$6,065.4 million and will close on September 22, 2020, pending approval from The Stock Exchange of Hong Kong. Proceeds will fund capital expenditures for hotel network expansion, repay part of a US$500 million credit facility, and improve technology platforms. The offering includes an option for underwriters to purchase an additional 3,063,300 shares.

Huazhu Group Limited (NASDAQ: HTHT) reported a net revenue decline of 31.7% year-over-year to RMB2.0 billion (US$277 million) for Q2 2020, slightly better than guidance. The net loss narrowed to RMB548 million (US$76 million) from RMB2.1 billion in Q1 2020. Adjusted EBITDA was negative RMB97 million (US$13 million). Legacy Huazhu's RevPAR showed signs of recovery, increasing from RMB137 in June to RMB187 in August. As of June 30, 2020, the company operated 6,187 hotels and had 2,375 in the pipeline. Cash flow from operating activities stood at RMB512 million (US$74 million).

Huazhu Group Limited (Nasdaq: HTHT) announced its Hong Kong Public Offering of 20,422,150 new ordinary shares, set to list on the HKEx under the stock code 1179.HK. The offering comprises 2,042,300 new shares for the public and 18,379,850 shares for international investors. The shares will be priced at a maximum of HK$368.00 each. Proceeds will fund capital expenditures, repay debt, and enhance technology platforms. The offering opens on September 11 and closes on September 16, with trading expected to commence on September 22.

Huazhu Group Limited (NASDAQ: HTHT) has appointed Lei Cao and Theng Fong Hee as new directors to its board, while Xiaofan Wang transitions to a board observer role. Lei Cao brings extensive experience in tax management from Philips, having served in various roles since 2003. Theng Fong Hee, a qualified solicitor with over 30 years in law, has held positions in multiple firms and serves as an independent director for several companies. The board's composition now reflects a blend of diverse expertise, which is expected to enhance the company's strategic direction.

Huazhu Group Limited (NASDAQ: HTHT) reported preliminary Q2 2020 results, revealing a 32% to 34% year-over-year decline in net revenues. COVID-19 impacted operations, but occupancy rates improved, reaching over 80% by mid-July after facing restrictions in Beijing. As of June 30, 97% of hotels resumed operation, down from 374 requisitioned hotels in March. Deutsche Hospitality also saw a recovery, with only 21% of hotels closed by the end of June. Average daily room rates dropped significantly, with RevPAR down 38.2% for legacy-Huazhu properties compared to Q2 2019.

Huazhu Group Limited (NASDAQ: HTHT) reported a net loss of RMB2.1 billion (US$301 million) for Q1 2020, significantly down from a net income of RMB106 million a year earlier. Net revenues decreased by 15.7% year-over-year to RMB2.0 billion due to the COVID-19 pandemic, with hotel turnover declining 32% to RMB5 billion. The occupancy rate dropped to 39.6%, a steep fall from 80.6% in Q1 2019. The company plans to expand into lower-tier cities in China and is anticipating a further revenue decline of 32% to 34% in Q2 2020.

Huazhu Group Limited (NASDAQ: HTHT) plans to release its unaudited financial results for Q1 2020 on June 30, 2020, after U.S. market closure. The financial results will be available on its investor relations website. Following the announcement, a conference call is scheduled for 9 p.m. ET on the same day. Due to COVID-19, participants must preregister online. As of March 31, 2020, Huazhu operated 5,953 hotels with 575,488 rooms across 15 countries, having recently expanded its brand portfolio through the acquisition of Deutsche Hospitality.