Huazhu Group Limited announced that the company’s board of directors (the “Board”) had formed a special committee (the “Special Committee”) to conduct an investigation of the allegations raised in a short seller report issued by Bonitas Research LLC on September 22, 2020 (the “Bonitas Report”). While the Company believes the Bonitas Report is without merit and that it contains numerous errors, unsubstantiated statements, and misleading conclusions regarding the Company’s business and operations, the Board decided to form the Special Committee to review the allegations in the Bonitas Report and to conduct any related investigation, in order to provide transparency to the shareholders. The Special Committee is comprised of three members, including the chairman of the audit committee, the chief financial officer, and the secretary and general counsel of the Company, and is chaired by the chairman of the Company’s audit committee. The Special Committee is authorized to retain outside legal, accounting and other advisors. Cleary Gottlieb Steen & Hamilton LLP has been retained as the Special Committee’s independent outside counsel.