H World : Huazhu Group 2022 Q2 Presentation

Second Quarter of 2022 Earnings Call

H World Group Limited

(NASDAQ: HTHT and HKEX: 1179 )

August 30, 2022

1

AGENDA

• 2Q2022 Business Update
• 2Q2022 Operational and Financial Review
• Liquidity and Guidance
• Q and A
• Appendix

2

COVID-19 Resurgence Constantly Impact RevPAR Recovery

疫情不断反复持续影响RevPAR的恢复

Blended RevPAR in 2021 and 2022 as % of 2019

RevPAR Recovery in 2022		RevPAR Recovery in 2021

	100%	106%	100%	103%
83%
		92%
95%				90%	90%
75%		86%	90%
	67%	65%			76%
74%
	53%
56%	Lockdown imposed in several cities		54%	COVID-19 resurgence
	(ie. Shanghai and Jilin) due to					in more than 20 cities

COVID-19 resurgence in Shanghai,	massive spread of Omicron Variant
Beijing and Hebei and stay local policy
Spread of Delta Variant from
	Nanjing to several cities

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

* Numbers in this page refers to Legacy-Huazhu business

3

Key Achievements in Q2 for Legacy-Huazhu

华住中国二季度主要成就

1. Cost Control

• Achieved rental reduction of RMB60m+ in Q2
• Streamlined headquarter headcount in Q2 by ~10%

1. Franchisees Support

•Waived franchisees' management fee payment of ~RMB120m in Q2

3. Sustainable Quality Growth

• Completed organizational restructuring to support long term sustainable quality growth
• Continued to remove inferior hotels from our network

4

Established Six Regional Headquarters to Support Sustainable Quality Growth

建立六大区域分公司支撑未来精益增长

Northeast China	North China	East China
Company	Company	Company
北方公司	华北公司	华东公司

• Shifted from brand-based to regional-based organizational structure for economy and midscale brands
• Localized team could have better understanding of local customers, franchisees' preference, and faster reaction to local market changes

West China	Central China	South China
Company	Company	Company
华西公司	华中公司	华南公司

• Localized regional offices could achieve more synergy in sales and marketing, higher operational efficiency, and shorter decision-making process
• Such change would accelerate our lower tier cities penetration and development in weak regions to achieve our long term sustainable quality growth target

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