Huazhu Group Responds to Additional Short Seller Report
Huazhu Group Limited (Nasdaq: HTHT) has responded to a short seller report from Bonitas Research, reiterating that the allegations are unfounded and filled with inaccuracies. The company, which operates 6,187 hotels worldwide, emphasized its commitment to corporate governance and compliance with regulatory standards. Huazhu will respond to future allegations only if legally necessary, without acknowledging any merit in those claims. As of June 30, 2020, the company continues to expand its portfolio, including acquisitions like Deutsche Hospitality completed in January 2020.
- Huazhu operates 6,187 hotels with 599,235 rooms in 16 countries.
- The acquisition of Deutsche Hospitality added five brands to its portfolio.
- Allegations from Bonitas Research may impact investor confidence.
SHANGHAI, China, Sept. 30, 2020 (GLOBE NEWSWIRE) -- Huazhu Group Limited (Nasdaq: HTHT and HKEX: 1179), a leading and fast-growing multi-brand hotel group in China with international coverage (the “Company” or “Huazhu”), today responded to allegations made in an additional short seller report published by Bonitas Research LLC (“Bonitas Research”) on September 29, 2020.
Similar to the initial report published by Bonitas Research on September 22, 2020, the Company believes the additional report is without merit and that it contains numerous errors, unsubstantiated statements, and misleading conclusions regarding the Company’s business and operations.
Given that it has already responded to Bonitas Research’s allegations twice, the Company may not respond to future allegations by Bonitas Research, unless required by the applicable laws or listing rules, and the market should not interpret that as an admission that any future allegations are true.
The Company reiterates its commitment to maintaining the highest standards of corporate governance, as well as transparent and timely disclosure in compliance with the applicable rules and regulations of the United States Securities and Exchange Commission, the Nasdaq Global Select Market and The Stock Exchange of Hong Kong Limited.
About Huazhu Group Limited
Originated in China, Huazhu Group Limited is a world-leading hotel group. As of June 30, 2020, Huazhu operated 6,187 hotels with 599,235 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 Deutsche Hospitality acquisition 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.
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. 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 forward-looking statements as predictions of future events or results. Any or all of the Company’s forward-looking statements may turn out to be incorrect. They can be affected by inaccurate assumptions, risks and uncertainties and other factors which could cause actual events or results to be materially different from those expressed or implied in the forward-looking statements. In evaluating these statements, readers should consider various factors, including the anticipated growth strategies of the Company, the future results of operations and financial condition of the Company, the economic conditions of China and Europe, the regulatory environment in China and Europe, the Company’s ability to attract customers and leverage its brands, trends and competition in the lodging industry, the expected growth of the lodging market in China and Europe, the spread and impact of COVID-19, and other factors and risks outlined in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 20-F and other filings. These factors may cause the Company’s actual results to differ materially from any forward-looking statement. In addition, new factors emerge from time to time and it is not possible for the Company to predict all factors that may cause actual results to differ materially from those contained in any forward-looking statements. Any projections in this release are based on limited information currently available to the Company, which is subject to change. This release also contains statements or projections that are based upon information available to the public, as well as other information from sources which the Company believes to be reliable, but it is not guaranteed by the Company to be accurate, nor does the Company purport it to be complete. The Company disclaims any obligation to publicly update any forward-looking statements to reflect events or circumstances after the date of this document, except as 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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