Huazhu Group Suffers Losses of CNY 2.1 Billion
It is expected that the company’s net revenue in the second quarter will decline by 32% to 34% YoY.
According to the financial report, the occupancy rate of all Huazhu hotels in the first quarter of this year was 39.6%, a substantial decrease of 41% compared with the same period last year. The multifunctional hotel reservation platform suffered losses of CNY 2.1 billion in Q1 2020. Compared with the net profit of CNY 106 million in the first quarter of last year, the net profit decreased by CNY 2.2 billion.
By the end of the second quarter, the average daily house prices of directly operated stores of Huazhu Group decreased by 27.3% YoY to CNY 205, and the occupancy rate was 67.4%, a decrease of 22.1% YoY.
Moreover, keeping uncertain factors such as the widespread of the pandemic in mind, Huazhu said that, currently, it is unable to provide meaningful income expectations for the whole year of 2020.