H World Group Limited — Earnings Release 2020

Jan 22, 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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Huazhu Group Limited 華住集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1179)

ANNOUNCEMENT OF PRELIMINARY RESULTS FOR HOTEL OPERATIONS IN THE FOURTH QUARTER AND THE FULL YEAR OF 2020 AND OVERSEAS REGULATORY ANNOUNCEMENT

Huazhu Group Limited (the “ Company ”) hereby announces its preliminary results for hotel operations in the fourth quarter and the full year ended December 31, 2020. This announcement is available for viewing on the website of The Stock Exchange of Hong Kong Limited at www.hkexnews.hk and the Company’s website at http://ir.huazhu.com.

The Company is also making this announcement pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The Company will file a Form 6-K with the Securities and Exchange Commission of the United States in relation to the following announcement, before the trading hours of the NASDAQ Global Select Market on January 22, 2021 (U.S. Eastern Time).

By order of the Board Huazhu Group Limited JI Qi Executive Chairman

Hong Kong, January 22, 2021

As at the date of this announcement, the board of directors of the Company comprises Mr. JI Qi, the Executive Chairman, Ms. ZHANG Min, Mr. Sébastien, Marie, Christophe BAZIN and Mr. ZHANG Shangzhi as directors; Mr. John WU Jiong, Ms. ZHAO Tong Tong, Mr. SHANG Jian, Mr. HEE Theng Fong and Ms. CAO Lei as independent directors; and Mr. Gaurav BHUSHAN as alternate director to Mr. Sébastien, Marie, Christophe BAZIN.

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Huazhu Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2020

Shanghai, China, January 22, 2021-Huazhu Group Limited (NASDAQ: HTHT and HKEX: 1179) (“ Huazhu ”, “ we ” or “ our ”), a world-leading hotel group, today announced preliminary results for hotel operations in the fourth quarter (“ Q4 2020 ”) and the full year ended December 31, 2020.

Recovery continued in Q4 2020

During Q4 2020, despite numerous recurrence of COVID-19 in several cities and provinces in mainland China, such as Shanghai, Chengdu, and Northeastern of China, our business continued to recover, thanks to China’s more effective and precise control of the COVID-19 pandemic. More importantly, we noticed that travelling demand shows resilience and recovery in previously affected cities started accelerating after adjusting down the risk level in those cities (from mid-tohigh risk to low risk). Hence, in Q4 2020, Huazhu expects net revenues in China to be better than our previous guidance.

Steigenberger Hotels AG and its subsidiaries (“ DH ”) suffered from the second wave of COVID-19 outbreak in European countries since late September 2020. The lock down period in Germany extended to February 14, 2021. However, even with the extension of the lock down period, the Q4 2020 DH net revenues remains within our previous guidance. In addition, we are taking further cost and cash flow measures, such as negotiating with landlords to reduce our rental costs, reducing or eliminating discretionary corporate spending and capital expenditures, etc. We also actively sought new business opportunities in the government’s fight against COVID-19, such as offering hotels to support government for pandemic prevention and control.

Operating Results: Legacy-Huazhu[(1)]

Leased and owned hotels Manachised and franchised hotels Total	Opened in Q4 2020 4 389 393	Number of hotels Closed(2) in Q4 2020 Net added in Q4 2020 (10) (6) (104) 285 (114) 279	As of December 31, 2020(3) 681 5,988 6,669	Number of rooms As of December 31, 2020 90,942 537,193 628,135

(1) Legacy-Huazhu refers to Huazhu and its subsidiaries, excluding DH.

• (2) The reasons for hotel closures mainly include non-compliance with our brand standards, operating losses, and property-related issues. In Q4 2020, we temporarily closed 6 hotels for brand upgrade and business model change purposes.

• (3) As of December 31, 2020, 74 hotels were requisitioned by governmental authorities.

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Economy hotels Leased and owned hotels Manachised and franchised hotels Midscale and upscale hotels Leased and owned hotels Manachised and franchised hotels Total Operational hotels (excluding hotels under requisition)	As of December 31, 2020 Number of hotels Unopened hotels in pipeline 4,362 1,183 438 4 3,924 1,179 2,307 1,228 243 14 2,064 1,214 6,669 2,411	As of December 31, 2020 Number of hotels Unopened hotels in pipeline 4,362 1,183 438 4 3,924 1,179 2,307 1,228 243 14 2,064 1,214 6,669 2,411
		2,411

Average daily room rate (in RMB) Leased and owned hotels Manachised and franchised hotels Blended Occupancy rate (as a percentage) Leased and owned hotels Manachised and franchised hotels Blended RevPAR (in RMB) Leased and owned hotels Manachised and franchised hotels Blended	For December 31, 2019 277 223 232 84.7% 81.6% 82.2% 235 182 191	the quarter ended September 30, December 31, 2020 2020 255 272 211 224 218 231 82.9% 79.6% 81.8% 80.8% 82.0% 80.6% 211 217 173 181 179 186	yoy change -1.8% 0.6% -0.5%
			-5.2p.p. -0.9p.p. -1.6p.p.
			-7.8% -0.5% -2.4%

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Average daily room rate (in RMB) Leased and owned hotels Manachised and franchised hotels Blended Occupancy rate (as a percentage) Leased and owned hotels Manachised and franchised hotels Blended RevPAR (in RMB) Leased and owned hotels Manachised and franchised hotels Blended	For the year ended December 31, December 31, yoy 2019 2020 change 276 241 -12.8% 224 204 -8.9% 234 210 -10.3% 87.0% 68.9% -18.1p.p. 83.8% 71.4% -12.4p.p. 84.4% 71.0% -13.4p.p. 240 166 -30.9% 188 146 -22.3% 198 149 -24.5%	For the year ended December 31, December 31, yoy 2019 2020 change 276 241 -12.8% 224 204 -8.9% 234 210 -10.3% 87.0% 68.9% -18.1p.p. 83.8% 71.4% -12.4p.p. 84.4% 71.0% -13.4p.p. 240 166 -30.9% 188 146 -22.3% 198 149 -24.5%
		-18.1p.p. -12.4p.p. -13.4p.p.
		-30.9% -22.3% -24.5%

Same-hotel operational data by class

Mature hotels in operation for more than 18 months (excluding hotels under requisition)

Economy hotels Leased and owned hotels Manachised and franchised hotels Midscale and upscale hotels Leased and owned hotels Manachised and franchised hotels Total	Number of hotels As of December 31, 2019 2020 2,651 2,651 412 412 2,239 2,239 1,225 1,225 190 190 1,035 1,035 3,876 3,876	Same-hotel RevPAR For the quarter ended December 31, yoy change 2019 2020 162 151 -6.7% 184 167 -8.9% 157 147 -6.1% 266 243 -8.5% 327 272 -16.7% 250 236 -5.6% 201 186 -7.6%	Same-hotel ADR For the quarter ended December 31, yoy change 2019 2020 185 178 -3.7% 210 199 -5.2% 179 173 -3.3% 322 311 -3.4% 392 365 -6.8% 303 298 -1.9% 235 225 -3.9%	Same-hotel Occupancy For the quarter ended December 31, yoy change 2019 2020 (p.p.) 87.6% 84.9% -2.7 87.7% 84.3% -3.4 87.5% 85.0% -2.5 82.5% 78.2% -4.3 83.4% 74.5% -8.8 82.3% 79.2% -3.1 85.7% 82.4% -3.3	Same-hotel Occupancy For the quarter ended December 31, yoy change 2019 2020 (p.p.) 87.6% 84.9% -2.7 87.7% 84.3% -3.4 87.5% 85.0% -2.5 82.5% 78.2% -4.3 83.4% 74.5% -8.8 82.3% 79.2% -3.1 85.7% 82.4% -3.3
					-4.3 -8.8 -3.1
					-3.3

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Economy hotels Leased and owned hotels Manachised and franchised hotels Midscale and upscale hotels Leased and owned hotels Manachised and franchised hotels Total	Number of hotels As of December 31, 2019 2020 2,651 2,651 412 412 2,239 2,239 1,225 1,225 190 190 1,035 1,035 3,876 3,876	Same-hotel RevPAR For the year ended December 31, yoy change 2019 2020 169 121 -28.8% 191 128 -32.8% 164 118 -27.7% 272 198 -27.0% 332 211 -36.4% 254 194 -23.4% 205 148 -27.9%	Same-hotel ADR For the year ended December 31, yoy change 2019 2020 189 162 -14.1% 211 176 -16.4% 183 159 -13.4% 328 287 -12.4% 395 328 -17.0% 308 276 -10.3% 234 204 -13.1%	Same-hotel Occupancy For the year ended December 31, yoy change 2019 2020 (p.p.) 89.7% 74.3% -15.4 90.5% 72.8% -17.7 89.4% 74.7% -14.8 82.8% 69.0% -13.8 84.1% 64.5% -19.7 82.5% 70.4% -12.1 87.3% 72.5% -14.8

Operating Results: Legacy-DH[(4)]

Leased hotels Manachised and franchised hotels Total	Opened in Q4 2020 2 1 3	Number of hotels Closed in Q4 2020 Net added in Q4 2020 – 2 – 1 – 3	As of December 31, 2020(5) 72 48 120	Number of rooms As of December 31, 2020 13,371 10,656 24,027	Unopened hotels in pipeline As of December 31, 2020 26 12 38

(4) Legacy-DH refers to DH.

(5) As of December 31, 2020, a total of 18 DH brand hotels were temporarily closed due to COVID-19.

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Average daily room rate (in EUR) Leased hotels Manachised and franchised hotels Blended Occupancy rate (as a percentage) Leased hotels Manachised and franchised hotels Blended RevPAR (in EUR) Leased hotels Manachised and franchised hotels Blended Average daily room rate (in EUR) Leased hotels Manachised and franchised hotels Blended Occupancy rate (as a percentage) Leased hotels Manachised and franchised hotels Blended RevPAR (in EUR) Leased hotels Manachised and franchised hotels Blended	For the quarter ended December 31, September 30, December 31, 2019 2020 2020 108 88 78 85 101 73 97 93 76 73.3% 38.2% 20.9% 62.6% 37.5% 25.4% 68.0% 37.9% 22.5% 79 34 16 53 38 19 66 35 17 For the year ended December 31, December 31, 2019 2020 105 89 88 85 97 88 72.8% 33.9% 65.0% 36.3% 69.1% 34.8% 76 30 57 31 67 31	For the quarter ended December 31, September 30, December 31, 2019 2020 2020 108 88 78 85 101 73 97 93 76 73.3% 38.2% 20.9% 62.6% 37.5% 25.4% 68.0% 37.9% 22.5% 79 34 16 53 38 19 66 35 17 For the year ended December 31, December 31, 2019 2020 105 89 88 85 97 88 72.8% 33.9% 65.0% 36.3% 69.1% 34.8% 76 30 57 31 67 31	yoy change -27.2% -13.7% -21.5%
			-52.6p.p. -37.2p.p. -45.5p.p.
			-79.3% -64.9% -74.0%
			yoy change -14.8% -3.2% -9.9%
			-38.9p.p. -28.7p.p. -34.3p.p.
			-60.4% -45.8% -54.6%

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Hotel Portfolio by Brand

Economy hotels HanTing Hotel Hi Inn Elan Hotel(6) Ibis Hotel Zleep Hotel Midscale and upscale hotels Ibis Styles Hotel Starway Hotel JI Hotel Orange Hotel Crystal Orange Hotel Manxin Hotel Madison Hotel Mercure Hotel Novotel Hotel Joya Hotel Blossom House Grand Mercure Hotel Steigenberger Hotels & Resorts IntercityHotel(7) Maxx by Steigenberger(8) Jaz in the City Other partner hotels Total

As of December 31, 2020 Hotels Rooms Unopened hotels in operation in pipeline 4,376 361,435 1,192 2,780 254,106 597 439 25,282 91 938 58,753 448 205 21,633 47 14 1,661 9 2,413 290,727 1,257 69 7,992 22 455 38,657 252 1,105 135,737 512 320 36,167 174 114 15,400 66 61 6,009 47 22 2,950 42 104 17,486 61 12 3,387 14 10 1,842 – 28 1,249 23 7 1,485 7 49 11,574 7 45 8,056 23 5 777 4 2 424 2 5 1,535 1 6,789 652,162 2,449

• (6) As of December 31, 2020, 5 Ni Hao Hotels were included in the operational hotel total for Elan Hotels and 74 Ni Hao hotels were included in the pipeline total for Elan Hotels.

• (7) As of December 31, 2020, 5 pipeline hotels of IntercityHotel were in China.

• (8) As of December 31, 2020, 3 pipeline hotels of Maxx by Steigenberger were in China.

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About Huazhu Group Limited

Originated in China, Huazhu Group Limited is a world-leading hotel group. As of December 31, 2020, Huazhu operated 6,789 hotels with 652,162 rooms in operation in 16 countries. Huazhu’s brands include Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, and Ni Hao Hotel. Upon the completion of the acquisition of DH on January 2, 2020, Huazhu added five brands to its portfolio, including Steigenberger Hotels & Resorts, Maxx by Steigenberger, Jaz in the City, IntercityHotel and Zleep Hotel. In addition, Huazhu also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in the pan-China region.

Huazhu’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, Huazhu directly operates hotels typically located on leased or owned properties. Under the manachise model, Huazhu manages manachised hotels through the onsite hotel managers that Huazhu appoints, and Huazhu collects fees from franchisees. Under the franchise model, Huazhu provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. Huazhu applies a consistent standard and platform across all of its hotels. As of December 31, 2020, Huazhu operates 16 percent of its hotel rooms under lease and ownership model, and 84 percent under manachise and franchise models.

For more information, please visit Huazhu’s website: http://ir.huazhu.com.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; economic conditions; the regulatory environment; our ability to attract and retain customers and leverage our brands; trends and competition in the lodging industry; the expected growth of demand for lodging; and other factors and risks detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forwardlooking statements as predictions of future events or results.

Huazhu undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contact Information Huazhu Investor Relations Tel: 86 (21) 6195 9561 Email: ir@huazhu.com http://ir.huazhu.com

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