- A total of 9,817 hotels or 955,657 hotel rooms in operation as of
March 31, 2024 . - Hotel turnover1 increased 21.1% year-over-year to
RMB19.7 billion in the first quarter of 2024. Excluding Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”), hotel turnover increased 21.6% year-over-year in the first quarter of 2024. Hotel turnover from the Legacy-DH segment increased 15.5% in the first quarter of 2024. - Revenue increased 17.8% year-over-year to
RMB5.3 billion (US$731 million )2 in the first quarter of 2024, surpassing the revenue guidance previously announced of a 12% to 16% increase compared to the first quarter of 2023. Revenue from the Legacy-Huazhu segment in the first quarter of 2024 wasRMB4.2 billion , which increased 18.1% year-over-year, exceeding the revenue guidance previously announced of an 11% to 15% increase. Revenue from the Legacy-DH segment in the first quarter of 2024 wasRMB1.0 billion , which increased 16.6% year-over-year. - Net income attributable to
H World Group Limited wasRMB659 million (US$91 million ) in the first quarter of 2024, compared withRMB990 million in the first quarter of 2023 andRMB743 million in the previous quarter. Net income attributable toH World Group Limited from the Legacy-Huazhu segment wasRMB833 million in the first quarter of 2024, compared withRMB1.2 billion in the first quarter of 2023 andRMB827 million in the previous quarter. Net loss attributable toH World Group Limited from the Legacy-DH segment wasRMB174 million in the first quarter of 2024, compared withRMB165 million in the first quarter of 2023 andRMB84 million in the previous quarter. - EBITDA (non-GAAP) in the first quarter of 2024 was
RMB1.3 billion (US$181 million ), compared withRMB1.6 billion in the first quarter of 2023 andRMB1.4 billion in the previous quarter. - Adjusted EBITDA (non-GAAP), which excluded share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments from EBITDA (non-GAAP), was
RMB1.4 billion (US$197 million ) in the first quarter of 2024, compared withRMB1.0 billion in the first quarter of 2023 andRMB1.1 billion in the previous quarter. - Adjusted EBITDA is our segment measure. Adjusted EBITDA from the Legacy-Huazhu segment was
RMB1.5 billion in the first quarter of 2024, compared withRMB1.1 billion in the first quarter of 2023 andRMB1.1 billion in the previous quarter. Adjusted EBITDA from the Legacy-DH segment was a loss ofRMB66 million in the first quarter of 2024, compared with a loss ofRMB98 million in the first quarter of 2023 and a loss ofRMB6 million in the previous quarter. - For the second quarter of 2024,
H World expects its revenue growth to be in the range of 7%-11% compared to the second quarter of 2023 or in the range of 7%-11% excluding DH.
As of
Legacy-Huazhu – First Quarter of 2024 Operational Highlights
As of
- The ADR was
RMB280 in the first quarter of 2024, compared withRMB277 in the first quarter of 2023 andRMB284 in the previous quarter. - The occupancy rate for all the Legacy-Huazhu hotels in operation was 77.2% in the first quarter of 2024, compared with 75.6% in the first quarter of 2023 and 80.5% in the previous quarter.
- Blended RevPAR was
RMB216 in the first quarter of 2024, compared withRMB210 in the first quarter of 2023 andRMB229 in the previous quarter. - For all the Legacy-Huazhu hotels which had been in operation for at least 18 months, the same-hotel RevPAR was
RMB218 in the first quarter of 2024, representing a 0.9% increase fromRMB216 in the first quarter of 2023, with a 0.6% decrease in same-hotel ADR and a 1.1 percentage-point increase in same-hotel occupancy rate.
Legacy-DH – First Quarter of 2024 Operational Highlights
As of
- The ADR was
EUR104 in the first quarter of 2024, compared withEUR104 in the first quarter of 2023 andEUR115 in the previous quarter. - The occupancy rate for all Legacy-DH hotels in operation was 55.8% in the first quarter of 2024, compared with 53.5% in the first quarter of 2023 and 63.8% in the previous quarter.
- Blended RevPAR was
EUR58 in the first quarter of 2024, compared withEUR55 in the first quarter of 2023 andEUR73 in the previous quarter.
“Regarding our business outside
First Quarter of 2024 Unaudited Financial Results
(RMB in millions) | Q1 2023 | Q4 2023 | Q1 2024 | ||
Revenue: | |||||
Leased and owned hotels | 2,874 | 3,453 | 3,099 | ||
Manachised and franchised hotels | 1,554 | 2,016 | 2,063 | ||
Others | 52 | 116 | 116 | ||
Total revenue | 4,480 | 5,585 | 5,278 | ||
Revenue in the first quarter of 2024 was
Revenue from leased and owned hotels in the first quarter of 2024 was
Revenue from manachised and franchised hotels in the first quarter of 2024 was
Other revenue represents revenue generated from businesses other than our hotel operations, which mainly includes revenue from the provision of IT products, and services and Huazhu Mall™ and other revenue from the Legacy-DH segment, totaling
(RMB in millions) | Q1 2023 | Q4 2023 | Q1 2024 | |||||
Operating costs and expenses: | ||||||||
Hotel operating costs | (3,250 | ) | (3,996 | ) | (3,565 | ) | ||
Other operating costs | (11 | ) | (10 | ) | (9 | ) | ||
Selling and marketing expenses | (195 | ) | (326 | ) | (260 | ) | ||
General and administrative expenses | (425 | ) | (644 | ) | (509 | ) | ||
Pre-opening expenses | (9 | ) | (3 | ) | (8 | ) | ||
Total operating costs and expenses | (3,890 | ) | (4,979 | ) | (4,351 | ) | ||
Hotel operating costs in the first quarter of 2024 were
Selling and marketing expenses in the first quarter of 2024 were
General and administrative expenses in the first quarter of 2024 were
Pre-opening expenses in the first quarter of 2024 were primarily related to the Legacy-Huazhu segment and totaled
Other operating income, net in the first quarter of 2024 was
Income from operations in the first quarter of 2024 was
Operating margin, defined as income from operations as a percentage of revenue, was 19.0% in the first quarter of 2024, compared with 14.8% in the first quarter of 2023 and 13.6% for the previous quarter. The margin improvement was mainly due to higher revenue contribution from manachised and franchised business. This was in line with our asset-light expansion strategy. Operating margin from the Legacy-Huazhu segment in the first quarter of 2024 was 26.6%, compared with 22.9% in the first quarter of 2023 and 18.7% in the previous quarter. Operating margin from the Legacy-DH segment in the first quarter of 2024 was a negative 12.4%, compared with a negative 17.8% in the first quarter of 2023 and a negative 5.3% in the previous quarter.
Other income, net in the first quarter of 2024 was
Gain from fair value changes of equity securities in the first quarter of 2024 were
Income tax expense in the first quarter of 2024 was
Net income attributable to
EBITDA (non-GAAP) in the first quarter of 2024 was
Adjusted EBITDA, which excluded share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments from EBITDA (non-GAAP), was
Cash flow. Operating cash inflow in the first quarter of 2024 was
Cash, cash equivalents and restricted cash. As of
Debt financing. As of
Guidance
For the second quarter of 2024,
The above forecast reflects the Company’s current and preliminary view, which is subject to change.
Conference Call
H World’s management will host a conference call at
To join by phone, all participants must pre-register for this conference call using the Participant Registration link of https://register.vevent.com/register/BI09049d430bb54c5eb1c1a1b9e153b589. Upon registration, each participant will receive details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN.
A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/4qzbkdyj or the Company’s website at https://ir.hworld.com/news-and-events/events-calendar.
A replay of the conference call will be available for twelve months from the date of the conference call at the Company’s website, https://ir.hworld.com/news-and-events/events-calendar.
Use of Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated financial results presented in accordance with
The Company believes that EBITDA is a useful financial metric to assess the operating and financial performance before the impact of investing and financing transactions and income taxes, given the significant investments that the Company has made in leasehold improvements, depreciation and amortization expense that comprise a significant portion of the Company’s cost structure. In addition, the Company believes that EBITDA is widely used by other companies in the lodging industry and may be used by investors as a measure of financial performance. The Company believes that EBITDA information provides investors with a useful tool for comparability between periods because it excludes depreciation and amortization expense attributable to capital expenditures. The Company also uses adjusted EBITDA to assess operating results of its hotels in operation. The Company believes that the exclusion of share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments helps facilitate year-over-year comparisons of the results of operations as the share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments may not be indicative of Company operating performance.
Therefore, the Company believes adjusted EBITDA more closely reflects the financial performance capability of our hotels. The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that the Company’s future results will be unaffected by other charges and gains considered to be outside the ordinary course of business.
The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets (including land use rights), income tax, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of depreciation and amortization, interest income, interest expense, income tax expense, share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments all in the reconciliations to the
The terms EBITDA and adjusted EBITDA are not defined under
Reconciliations of the Company’s non-GAAP financial measures, including EBITDA and adjusted EBITDA, to the consolidated statement of operations information are included at the end of this press release.
About
Originated in
H World’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model,
For more information, please visit H World’s website: https://ir.hworld.com.
Safe Harbor Statement Under the
—Financial Tables and Operational Data Follow—
Unaudited Condensed Consolidated Balance Sheets | |||||||||
RMB | RMB | US$3 | |||||||
(in millions) | |||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 6,946 | 5,909 | 818 | ||||||
Restricted cash | 764 | 755 | 105 | ||||||
Short-term investments | 2,189 | 1,657 | 229 | ||||||
Accounts receivable, net | 755 | 812 | 112 | ||||||
Loan receivables - current, net | 184 | 185 | 26 | ||||||
Amounts due from related parties, current | 210 | 191 | 26 | ||||||
Inventories | 59 | 56 | 8 | ||||||
Other current assets, net | 949 | 933 | 129 | ||||||
Total current assets | 12,056 | 10,498 | 1,453 | ||||||
Property and equipment, net | 6,097 | 6,002 | 831 | ||||||
Intangible assets, net | 5,280 | 5,188 | 719 | ||||||
Operating lease right-of-use assets | 25,658 | 25,532 | 3,536 | ||||||
Finance lease right-of-use assets | 2,171 | 2,071 | 287 | ||||||
Land use rights, net | 181 | 179 | 25 | ||||||
Long-term investments | 2,564 | 2,552 | 354 | ||||||
5,318 | 5,265 | 729 | |||||||
Amounts due from related parties, non-current | 25 | 25 | 3 | ||||||
Loan receivables, net | 163 | 176 | 24 | ||||||
Other assets, net | 663 | 664 | 92 | ||||||
Deferred tax assets | 1,043 | 1,036 | 144 | ||||||
Assets held for sale | 2,313 | 2,256 | 312 | ||||||
Total assets | 63,532 | 61,444 | 8,509 | ||||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Short-term debt | 4,049 | 4,104 | 568 | ||||||
Accounts payable | 1,019 | 900 | 125 | ||||||
Amounts due to related parties | 77 | 81 | 11 | ||||||
Salary and welfare payables | 1,067 | 756 | 105 | ||||||
Deferred revenue | 1,637 | 1,674 | 232 | ||||||
Operating lease liabilities, current | 3,609 | 3,588 | 497 | ||||||
Finance lease liabilities, current | 45 | 45 | 6 | ||||||
Accrued expenses and other current liabilities | 3,261 | 3,345 | 463 | ||||||
Dividends payable | 2,085 | - | - | ||||||
Income tax payable | 562 | 553 | 77 | ||||||
Total current liabilities | 17,411 | 15,046 | 2,084 | ||||||
Long-term debt | 1,265 | 1,645 | 228 | ||||||
Operating lease liabilities, non-current | 24,215 | 24,117 | 3,340 | ||||||
Finance lease liabilities, non-current | 2,697 | 2,594 | 359 | ||||||
Deferred revenue | 1,072 | 1,126 | 156 | ||||||
Other long-term liabilities | 1,118 | 1,145 | 159 | ||||||
Deferred tax liabilities | 845 | 838 | 116 | ||||||
Retirement benefit obligations | 124 | 121 | 17 | ||||||
Liabilities held for sale | 2,536 | 2,414 | 334 | ||||||
Total liabilities | 51,283 | 49,046 | 6,793 | ||||||
Equity: | |||||||||
Ordinary shares | 0 | 0 | 0 | ||||||
(906 | ) | (1,441 | ) | (200 | ) | ||||
Additional paid-in capital | 11,861 | 11,909 | 1,649 | ||||||
Retained earnings | 794 | 1,453 | 201 | ||||||
Accumulated other comprehensive income | 386 | 355 | 49 | ||||||
12,135 | 12,276 | 1,699 | |||||||
Noncontrolling interest | 114 | 122 | 17 | ||||||
Total equity | 12,249 | 12,398 | 1,716 | ||||||
Total liabilities and equity | 63,532 | 61,444 | 8,509 |
Unaudited Condensed Consolidated Statements of Comprehensive Income | ||||||||||||
Quarter Ended | ||||||||||||
RMB | RMB | RMB | US$ | |||||||||
(in millions, except shares, per share and per ADS data) | ||||||||||||
Revenue: | ||||||||||||
Leased and owned hotels | 2,874 | 3,453 | 3,099 | 429 | ||||||||
Manachised and franchised hotels | 1,554 | 2,016 | 2,063 | 286 | ||||||||
Others | 52 | 116 | 116 | 16 | ||||||||
Total revenue | 4,480 | 5,585 | 5,278 | 731 | ||||||||
Operating costs and expenses: | ||||||||||||
Hotel operating costs: | ||||||||||||
Rents | (1,051 | ) | (1,033 | ) | (1,086 | ) | (150 | ) | ||||
Utilities | (204 | ) | (160 | ) | (192 | ) | (27 | ) | ||||
Personnel costs | (1,036 | ) | (1,331 | ) | (1,225 | ) | (170 | ) | ||||
Depreciation and amortization | (346 | ) | (320 | ) | (319 | ) | (44 | ) | ||||
Consumables, food and beverage | (278 | ) | (361 | ) | (293 | ) | (41 | ) | ||||
Others | (335 | ) | (791 | ) | (450 | ) | (62 | ) | ||||
Total hotel operating costs | (3,250 | ) | (3,996 | ) | (3,565 | ) | (494 | ) | ||||
Other operating costs | (11 | ) | (10 | ) | (9 | ) | (1 | ) | ||||
Selling and marketing expenses | (195 | ) | (326 | ) | (260 | ) | (36 | ) | ||||
General and administrative expenses | (425 | ) | (644 | ) | (509 | ) | (70 | ) | ||||
Pre-opening expenses | (9 | ) | (3 | ) | (8 | ) | (1 | ) | ||||
Total operating costs and expenses | (3,890 | ) | (4,979 | ) | (4,351 | ) | (602 | ) | ||||
- | (4 | ) | - | - | ||||||||
Other operating income (expense), net | 74 | 155 | 76 | 10 | ||||||||
Income (loss) from operations | 664 | 757 | 1,003 | 139 | ||||||||
Interest income | 44 | 85 | 51 | 7 | ||||||||
Interest expense | (130 | ) | (76 | ) | (83 | ) | (11 | ) | ||||
Other income (expense), net | 514 | 2 | 40 | 6 | ||||||||
Gain (loss) from fair value changes of equity securities | 13 | 124 | 38 | 5 | ||||||||
Foreign exchange gain (loss) | 104 | 140 | (92 | ) | (13 | ) | ||||||
Income (loss) before income taxes | 1,209 | 1,032 | 957 | 133 | ||||||||
Income tax (expense) benefit | (194 | ) | (281 | ) | (279 | ) | (39 | ) | ||||
Income (Loss) from equity method investments | (15 | ) | (8 | ) | (11 | ) | (2 | ) | ||||
Net income (loss) | 1,000 | 743 | 667 | 92 | ||||||||
Net (income) loss attributable to noncontrolling interest | (10 | ) | (0 | ) | (8 | ) | (1 | ) | ||||
Net income (loss) attributable to | 990 | 743 | 659 | 91 | ||||||||
Gain (loss) arising from defined benefit plan, net of tax | - | (9 | ) | - | - | |||||||
Gain (loss) from fair value changes of debt securities, net of tax | - | (31 | ) | - | - | |||||||
Foreign currency translation adjustments, net of tax | 39 | (23 | ) | (31 | ) | (4 | ) | |||||
Comprehensive income (loss) | 1,039 | 680 | 636 | 88 | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (10 | ) | (0 | ) | (8 | ) | (1 | ) | ||||
Comprehensive income (loss) attributable to | 1,029 | 680 | 628 | 87 | ||||||||
Earnings (Losses) per share: | ||||||||||||
Basic | 0.31 | 0.23 | 0.21 | 0.03 | ||||||||
Diluted | 0.30 | 0.23 | 0.21 | 0.03 | ||||||||
Earnings (Losses) per ADS: | ||||||||||||
Basic | 3.12 | 2.33 | 2.10 | 0.29 | ||||||||
Diluted | 3.05 | 2.31 | 2.08 | 0.29 | ||||||||
Weighted average number of shares used in computation: | ||||||||||||
Basic | 3,174,229,716 | 3,182,802,226 | 3,139,466,152 | 3,139,466,152 | ||||||||
Diluted | 3,343,723,364 | 3,217,737,686 | 3,172,770,493 | 3,172,770,493 |
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||
Quarter Ended | |||||||||||
RMB | RMB | RMB | US$ | ||||||||
(in millions) | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | 1,000 | 743 | 667 | 92 | |||||||
Share-based compensation | 27 | 38 | 58 | 8 | |||||||
Depreciation and amortization, and other | 385 | 346 | 345 | 48 | |||||||
Impairment loss | - | 430 | - | - | |||||||
Loss (income) from equity method investments, net of dividends | 15 | 8 | 11 | 2 | |||||||
Investment (income) loss and foreign exchange (gain) loss | (544 | ) | (452 | ) | 29 | 4 | |||||
Changes in operating assets and liabilities | 1,020 | 1,359 | (230 | ) | (32 | ) | |||||
Other | (59 | ) | (61 | ) | 6 | 1 | |||||
Net cash provided by (used in) operating activities | 1,844 | 2,411 | 886 | 123 | |||||||
Investing activities: | |||||||||||
Capital expenditures | (222 | ) | (313 | ) | (281 | ) | (39 | ) | |||
Acquisitions, net of cash received | - | (0 | ) | - | - | ||||||
Purchase of investments | (1 | ) | (700 | ) | (254 | ) | (35 | ) | |||
Proceeds from maturity/sale and return of investments | 2,200 | 771 | 842 | 117 | |||||||
Loan advances | (34 | ) | (140 | ) | (52 | ) | (7 | ) | |||
Loan collections | 34 | 36 | 38 | 5 | |||||||
Other | 4 | 69 | 55 | 7 | |||||||
Net cash provided by (used in) investing activities | 1,981 | (277 | ) | 348 | 48 | ||||||
Financing activities: | |||||||||||
Net proceeds from issuance of ordinary shares | 1,973 | - | - | - | |||||||
Payment of share repurchase | - | (848 | ) | (544 | ) | (75 | ) | ||||
Proceeds from debt | 428 | 370 | 536 | 74 | |||||||
Repayment of debt | (889 | ) | (204 | ) | (137 | ) | (19 | ) | |||
Dividend paid | - | - | (2,091 | ) | (290 | ) | |||||
Other | (50 | ) | (62 | ) | (22 | ) | (3 | ) | |||
Net cash provided by (used in) financing activities | 1,462 | (744 | ) | (2,258 | ) | (313 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21 | ) | 41 | (17 | ) | (2 | ) | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash, including cash classified within assets held for sale | 5,266 | 1,431 | (1,041 | ) | (144 | ) | |||||
Less: net increase (decrease) in cash and cash equivalents classified within assets held for sale | - | 17 | 5 | 1 | |||||||
Cash, cash equivalents and restricted cash at the beginning of the period | 5,086 | 6,296 | 7,710 | 1,068 | |||||||
Cash, cash equivalents and restricted cash at the end of the period | 10,352 | 7,710 | 6,664 | 923 |
Unaudited Reconciliation of GAAP and Non-GAAP Results | ||||||||||
Quarter Ended | ||||||||||
RMB | RMB | RMB | US$ | |||||||
(in millions, except shares, per share and per ADS data) | ||||||||||
Net income (loss) attributable to | 990 | 743 | 659 | 91 | ||||||
Share-based compensation expenses | 27 | 38 | 58 | 8 | ||||||
(Gain) loss from fair value changes of equity securities | (13 | ) | (124 | ) | (38 | ) | (5 | ) | ||
Foreign exchange (gain) loss, net | (104 | ) | (140 | ) | 92 | 13 | ||||
(Gain) loss on disposal of investments | (516 | ) | - | - | - | |||||
Adjusted net income (loss) attributable to | 384 | 517 | 771 | 107 | ||||||
Adjusted earnings (losses) per share (non-GAAP) | ||||||||||
Basic | 0.12 | 0.16 | 0.25 | 0.03 | ||||||
Diluted | 0.12 | 0.16 | 0.24 | 0.03 | ||||||
Adjusted earnings (losses) per ADS (non-GAAP) | ||||||||||
Basic | 1.21 | 1.62 | 2.46 | 0.34 | ||||||
Diluted | 1.19 | 1.61 | 2.43 | 0.34 | ||||||
Weighted average number of shares used in computation | ||||||||||
Basic | 3,174,229,716 | 3,182,802,226 | 3,139,466,152 | 3,139,466,152 | ||||||
Diluted | 3,223,122,364 | 3,217,737,686 | 3,172,770,493 | 3,172,770,493 | ||||||
Quarter Ended | ||||||||||
RMB | RMB | RMB | US$ | |||||||
(in millions, except per share and per ADS data) | ||||||||||
Net income (loss) attributable to | 990 | 743 | 659 | 91 | ||||||
Interest income | (44 | ) | (85 | ) | (51 | ) | (7 | ) | ||
Interest expense | 130 | 76 | 83 | 11 | ||||||
Income tax expense | 194 | 281 | 279 | 39 | ||||||
Depreciation and amortization | 367 | 341 | 339 | 47 | ||||||
EBITDA (non-GAAP) | 1,637 | 1,356 | 1,309 | 181 | ||||||
Share-based compensation | 27 | 38 | 58 | 8 | ||||||
(Gain) loss from fair value changes of equity securities | (13 | ) | (124 | ) | (38 | ) | (5 | ) | ||
Foreign exchange (gain) loss, net | (104 | ) | (140 | ) | 92 | 13 | ||||
(Gain) loss on disposal of investments | (516 | ) | - | - | - | |||||
Adjusted EBITDA (non-GAAP) | 1,031 | 1,130 | 1,421 | 197 |
Segment Financial Summary | ||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||||
Legacy- Huazhu | Legacy- DH | Legacy- Huazhu | Legacy- DH | Legacy- Huazhu | Legacy- DH | |||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||
(in millions) | (in millions) | (in millions) | ||||||||||||
Leased and owned hotels | 2,020 | 854 | 2,288 | 1,165 | 2,112 | 987 | ||||||||
Manachised and franchised hotels | 1,536 | 18 | 1,992 | 24 | 2,042 | 21 | ||||||||
Others | 38 | 14 | 104 | 12 | 91 | 25 | ||||||||
Revenue | 3,594 | 886 | 4,384 | 1,201 | 4,245 | 1,033 | ||||||||
Depreciation and amortization | 304 | 63 | 282 | 59 | 280 | 59 | ||||||||
Adjusted EBITDA | 1,129 | (98 | ) | 1,136 | (6 | ) | 1,487 | (66 | ) |
Operating Results: Legacy-Huazhu(1)
Number of hotels | Number of rooms | |||||||
Opened in Q1 2024 | Closed (2) in Q1 2024 | Net added in Q1 2024 | As of | As of | ||||
Leased and owned hotels | 2 | (11 | ) | (9 | ) | 598 | 85,416 | |
Manachised and franchised hotels | 567 | (137 | ) | 430 | 9,086 | 843,093 | ||
Total | 569 | (148 | ) | 421 | 9,684 | 928,509 | ||
(1) Legacy-Huazhu refers to (2) The reasons for hotel closures mainly included non-compliance with our brand standards, operating losses, and property-related issues. In Q1 2024, we temporarily closed 12 hotels for brand upgrade and business model change purposes. |
As of | ||
Number of hotels | Unopened hotels in pipeline | |
Economy hotels | 5,102 | 1,171 |
Leased and owned hotels | 321 | 1 |
Manachised and franchised hotels | 4,781 | 1,170 |
Midscale, upper-midscale hotels and others | 4,582 | 1,967 |
Leased and owned hotels | 277 | 9 |
Manachised and franchised hotels | 4,305 | 1,958 |
Total | 9,684 | 3,138 |
For the quarter ended | ||||||||
yoy | ||||||||
2023 | 2023 | 2024 | change | |||||
Average daily room rate (in RMB) | ||||||||
Leased and owned hotels | 337 | 356 | 346 | 2.5% | ||||
Manachised and franchised hotels | 269 | 276 | 272 | 1.3% | ||||
Blended | 277 | 284 | 280 | 1.0% | ||||
Occupancy rate (as a percentage) | ||||||||
Leased and owned hotels | 76.3% | 83.7% | 81.0% | +4.7 p.p. | ||||
Manachised and franchised hotels | 75.5% | 80.1% | 76.8% | +1.3 p.p. | ||||
Blended | 75.6% | 80.5% | 77.2% | +1.6 p.p. | ||||
RevPAR (in RMB) | ||||||||
Leased and owned hotels | 257 | 298 | 280 | 8.8% | ||||
Manachised and franchised hotels | 203 | 221 | 209 | 3.0% | ||||
Blended | 210 | 229 | 216 | 3.1% |
Same-hotel operational data by class | |||||||||||
Mature hotels in operation for more than 18 months | |||||||||||
Number of hotels | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||
As of | For the quarter | yoy | For the quarter | yoy | For the quarter | yoy | |||||
ended | change | ended | change | ended | change | ||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | (p.p.) | |||
Economy hotels | 3,732 | 3,732 | 166 | 167 | 0.7% | 211 | 210 | -0.6% | 78.6% | 79.6% | +1.0 |
Leased and owned hotels | 309 | 309 | 192 | 203 | 6.0% | 242 | 245 | 1.0% | 79.0% | 82.9% | +3.9 |
Manachised and franchised hotels | 3,423 | 3,423 | 162 | 162 | -0.2% | 207 | 205 | -0.9% | 78.5% | 79.1% | +0.6 |
Midscale, upper-midscale hotels and others | 3,067 | 3,067 | 261 | 264 | 1.0% | 345 | 343 | -0.7% | 75.6% | 76.9% | +1.3 |
Leased and owned hotels | 255 | 255 | 322 | 342 | 6.3% | 427 | 428 | 0.2% | 75.3% | 79.8% | +4.6 |
Manachised and franchised hotels | 2,812 | 2,812 | 253 | 253 | 0.1% | 334 | 331 | -1.0% | 75.7% | 76.5% | +0.9 |
Total | 6,799 | 6,799 | 216 | 218 | 0.9% | 280 | 279 | -0.6% | 77.0% | 78.2% | +1.1 |
Operating Results: Legacy-DH(3)
Number of hotels | Number of rooms | Unopened hotels in pipeline | |||||||
Opened in Q1 2024 | Closed in Q1 2024 | Net added in Q1 2024 | As of 2024(4) | As of 2024 | As of 2024 | ||||
Leased hotels | 2 | (2 | ) | - | 84 | 16,369 | 19 | ||
Manachised and franchised hotels | 3 | (1 | ) | 2 | 49 | 10,779 | 15 | ||
Total | 5 | (3 | ) | 2 | 133 | 27,148 | 34 | ||
(3) Legacy-DH refers to DH. (4) As of |
For the quarter ended | ||||||||
yoy | ||||||||
2023 | 2023 | 2024 | change | |||||
Average daily room rate (in EUR) | ||||||||
Leased hotels | 108 | 118 | 110 | 1.6% | ||||
Manachised and franchised hotels | 97 | 111 | 95 | -2.3% | ||||
Blended | 104 | 115 | 104 | 0.2% | ||||
Occupancy rate (as a percentage) | ||||||||
Leased hotels | 53.0% | 64.7% | 55.4% | +2.4 p.p. | ||||
Manachised and franchised hotels | 54.1% | 62.6% | 56.4% | +2.3 p.p. | ||||
Blended | 53.5% | 63.8% | 55.8% | +2.3 p.p. | ||||
RevPAR (in EUR) | ||||||||
Leased hotels | 57 | 76 | 61 | 6.1% | ||||
Manachised and franchised hotels | 53 | 69 | 54 | 1.8% | ||||
Blended | 55 | 73 | 58 | 4.5% |
As of | |||
Hotels | Rooms | Unopened hotels | |
in operation | in pipeline | ||
Economy hotels | 5,118 | 420,702 | 1,185 |
3,744 | 329,477 | 785 | |
482 | 25,014 | 198 | |
310 | 23,115 | 177 | |
339 | 18,193 | - | |
227 | 22,992 | 11 | |
16 | 1,911 | 14 | |
Midscale hotels | 3,787 | 404,544 | 1,466 |
106 | 10,611 | 23 | |
686 | 56,525 | 200 | |
2,310 | 264,944 | 926 | |
685 | 72,464 | 317 | |
Upper midscale hotels | 747 | 103,786 | 439 |
191 | 24,478 | 137 | |
35 | 5,308 | 5 | |
142 | 12,962 | 82 | |
100 | 12,283 | 71 | |
175 | 28,032 | 55 | |
27 | 6,181 | 10 | |
68 | 12,984 | 77 | |
MAXX(6) | 9 | 1,558 | 2 |
Upscale hotels | 139 | 21,001 | 75 |
Jaz in the City | 3 | 587 | 1 |
7 | 1,234 | - | |
66 | 2,955 | 63 | |
9 | 1,806 | 1 | |
54 | 14,419 | 10 | |
Luxury hotels | 16 | 2,360 | 2 |
Steigenberger Icon(8) | 9 | 1,847 | 2 |
7 | 513 | - | |
Others | 10 | 3,264 | 5 |
Other hotels(9) | 10 | 3,264 | 5 |
Total | 9,817 | 955,657 | 3,172 |
(5) As of
(6) As of
(7) As of
(8) As of
(9) Other hotels include other partner hotels and other hotel brands in
Contact Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@hworld.com
https://ir.hworld.com
_______________________
1 Hotel turnover refers to total transaction value of room and non-room revenue from
2 The conversion of Renminbi (“RMB”) into
3 The conversion of Renminbi (“RMB”) into
Source:
2024 GlobeNewswire, Inc., source