Recently, Huazhu Group made significant progress in its international expansion. In 2019, it acquired Deutsche Hospitality (DH), which has now officially been renamed H World International, marking a key step in its globalization strategy. H World International will integrate all its brands into the H Rewards membership benefits and online booking platform, including Grand Skylight Hotels, Porsche Design Hotels, Jaz in The City, and Zleep Hotels. Jin Hui, CEO of Huazhu Group, commented, "With Deutsche Hospitality's official name change to H World International, a new chapter in our globalization strategy begins, becoming the growth engine for Huazhu outside China."
As of September 2023, H World International has expanded rapidly, operating 9,157 hotels with 885,756 rooms across 18 countries. In the third quarter of 2023, Huazhu Group achieved a revenue of 62.88 billion yuan (about 8.61 billion USD), a 53.6% year-over-year increase and a 13.7% sequential growth, indicating significant improvements in operational efficiency and profitability. The company has projects underway in Asia Pacific, the Middle East, Africa, and Europe, including new hotel projects in Bangkok and Pattaya, Thailand, a new resort in Egypt, and a new city hotel in Muscat, Oman. Additionally, Huazhu announced the inclusion of its fastest-growing mid-scale brand in China, Ji Hotel, into H World International, indicating a strategic move to leverage the brand for global expansion.
Ji Qi, founder of Huazhu Group, wrote in his book "Founder's Notes," "Beyond our Chinese market, Huazhu aims to expand globally." The Group's international strategy began early with a strategic alliance and cross-shareholding with AccorHotels in 2016, which enhanced its expertise in high-end hotel management. In 2019, Huazhu established its international headquarters in Singapore and opened the first overseas direct-operated Ji Hotel in Singapore, marking the official start of its overseas development strategy. Subsequently, Huazhu completed the acquisition of Deutsche Hospitality through its Singapore subsidiary, significantly expanding its influence in Europe, the Middle East, and Africa. In early 2023, Huazhu ended its 7-year cross-shareholding relationship with AccorHotels, refocusing the 300 million Euros gained from the sale of Accor shares on its core business development. This reflects Huazhu's strategy for independent growth in international markets. Furthermore, Huazhu upgraded its H Rewards program, extending its successful Chinese membership direct-sales model to its international hotel operations.
Despite its achievements, Huazhu Group faces challenges in its global journey. Its high-end brands like Grand Skylight and Porsche Design need to enhance their international presence and competitiveness. Moreover, Huazhu needs to efficiently integrate its acquired brands and effectively utilize its successful Ji Hotel brand in emerging markets. The execution of its international expansion strategies will determine Huazhu's position in the global competition.