H World Group Limited
A complete of 9,394 inns or 912,444 resort rooms in operation as of December 31, 2023.
Hotel turnover1 elevated 55.0% year-over-year to RMB20.4 billion within the fourth quarter of 2023. Excluding Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”), resort turnover elevated 60.6% year-over-year within the fourth quarter of 2023 and elevated 65.9% year-over-year for the total 12 months of 2023.
Revenue elevated 50.7% year-over-year to RMB5.6 billion (US$786 million)2 within the fourth quarter of 2023, surpassing the income steering beforehand introduced of a 41% to 45% enhance in comparison with the fourth quarter of 2022, and elevated 57.9% year-over-year to RMB21.9 billion (US$3.1 billion) for the total 12 months of 2023. Revenue from the Legacy-Huazhu section within the fourth quarter of 2023 was RMB4.4 billion, which elevated 59.0% year-over-year, exceeding the income steering beforehand introduced of a 48% to 52% enhance.
Net earnings attributable to H World Group Limited was RMB743 million (US$105 million) within the fourth quarter of 2023, in contrast with a internet loss attributable to H World Group Limited of RMB124 million within the fourth quarter of 2022 and a internet earnings attributable to H World Group Limited of RMB1.3 billion within the earlier quarter. Net earnings attributable to H World Group Limited was RMB4.1 billion (US$575 million) for the total 12 months of 2023, in contrast with a internet loss attributable to H World Group Limited of RMB1.8 billion for the total 12 months of 2022. Net earnings attributable to H World Group Limited from the Legacy-Huazhu section was RMB827 million within the fourth quarter of 2023, in contrast with a internet loss attributable to H World Group Limited from the Legacy-Huazhu section of RMB84 million within the fourth quarter of 2022 and a internet earnings attributable to H World Group Limited from the Legacy-Huazhu section of RMB1.4 billion within the earlier quarter. Net earnings attributable to H World Group Limited from the Legacy-Huazhu section was RMB4.4 billion for the total 12 months of 2023, in contrast with a internet loss attributable to H World Group Limited from the Legacy-Huazhu section of RMB1.4 billion for the total 12 months of 2022.
EBITDA (non-GAAP) within the fourth quarter of 2023 was RMB1.4 billion (US$191 million), in contrast with RMB529 million within the fourth quarter of 2022 and RMB2.1 billion within the earlier quarter. EBITDA (non-GAAP) for the total 12 months of 2023 was RMB6.8 billion (US$961 million), in contrast with RMB164 million for the total 12 months of 2022.
Adjusted EBITDA (non-GAAP), which excluded share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities from EBITDA (non-GAAP), was RMB1.3 billion (US$178 million) within the fourth quarter of 2023, in contrast with RMB398 million within the fourth quarter of 2022 and RMB2.2 billion within the earlier quarter. Adjusted EBITDA (non-GAAP) for the total 12 months of 2023 was RMB6.9 billion (US$966 million), in contrast with RMB610 million for the total 12 months of 2022.
Adjusted EBITDA is a section measure. Adjusted EBITDA from the Legacy-Huazhu section was RMB1.3 billion within the fourth quarter of 2023, in contrast with RMB397 million within the fourth quarter of 2022 and RMB2.1 billion within the earlier quarter. Adjusted EBITDA from the Legacy-Huazhu section was RMB6.8 billion for the total 12 months of 2023, in contrast with RMB728 million for the total 12 months of 2022.
For the primary quarter of 2024, H World expects its income progress to be within the vary of 12%-16% in comparison with the primary quarter of 2023 or within the vary of 11%-15% excluding DH.
For the total 12 months of 2024, H World expects income progress to be within the vary of 8%-12% in comparison with the total 12 months of 2023, or within the vary of 8%-12% excluding DH.
For the total 12 months of 2024, H World expects to open round 1,800 inns and shut round 650 inns.
Story continues
SINGAPORE and SHANGHAI, China, March 20, 2024 (GLOBE NEWSWIRE) — H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, the “Company”, “we” or “our”), a key participant within the world resort business, right now introduced its unaudited monetary outcomes for the fourth quarter and full 12 months ended December 31, 2023.
As of December 31, 2023, H World’s worldwide resort community in operation totaled 9,394 inns and 912,444 rooms, together with 131 inns from DH. During the fourth quarter of 2023, our Legacy-Huazhu enterprise opened 460 inns, together with 4 leased and owned inns, and 456 manachised and franchised inns, and closed a complete of 225 inns, together with 5 leased and owned inns and 220 manachised and franchised inns. As of December 31, 2023, H World had a complete of three,098 unopened inns within the pipeline, together with 3,061 inns from the Legacy-Huazhu enterprise and 37 inns from the Legacy-DH enterprise.
Legacy-Huazhu – Fourth Quarter and Full Year of 2023 Operational Highlights
As of December 31, 2023, Legacy-Huazhu had 9,263 inns in operation, together with 607 leased and owned inns, and eight,656 manachised and franchised inns. In addition, as of the identical date, Legacy-Huazhu had 885,630 resort rooms in operation, together with 86,691 rooms beneath the lease and possession mannequin, and 798,939 rooms beneath the manachise and franchise fashions. Legacy-Huazhu additionally had 3,061 unopened inns in its pipeline, together with 9 leased and owned inns, and three,052 manachised and franchised inns. The following discusses Legacy-Huazhu’s income per accessible room (“RevPAR”), common each day room price (“ADR”) and occupancy price for its leased and owned inns, in addition to manachised and franchised inns for the intervals indicated.
The ADR was RMB284 within the fourth quarter of 2023, in contrast with RMB240 within the fourth quarter of 2022, RMB324 within the earlier quarter, and RMB232 within the fourth quarter of 2019.
The occupancy price for all of the Legacy-Huazhu inns in operation was 80.5% within the fourth quarter of 2023, in contrast with 66.2% within the fourth quarter of 2022, 85.9% within the earlier quarter, and 82.2% within the fourth quarter of 2019.
Blended RevPAR was RMB229 within the fourth quarter of 2023, in contrast with RMB159 within the fourth quarter of 2022, RMB278 within the earlier quarter, and RMB191 within the fourth quarter of 2019.
For all of the Legacy-Huazhu inns which had been in operation for no less than 18 months, the same-hotel RevPAR was RMB230 within the fourth quarter of 2023, representing a 40.8% enhance from RMB164 within the fourth quarter of 2022, with a 16.7% enhance in same-hotel ADR and a 13.9 percentage-point enhance in same-hotel occupancy price.
Legacy-DH – Fourth Quarter and Full Year of 2023 Operational Highlights
As of December 31, 2023, Legacy-DH had 131 inns in operation, together with 84 leased inns, and 47 manachised and franchised inns. In addition, as of the identical date, Legacy-DH had 26,814 resort rooms in operation, together with 16,303 rooms beneath the lease mannequin, and 10,511 rooms beneath the manachise and franchise fashions. Legacy-DH additionally had 37 unopened inns within the pipeline, together with 21 leased inns and 16 manachised and franchised inns. The following discusses Legacy-DH’s RevPAR, ADR and occupancy price for its leased in addition to manachised and franchised inns (excluding inns briefly closed) for the intervals indicated.
The ADR was EUR115 within the fourth quarter of 2023, in contrast with EUR122 within the fourth quarter of 2022 and EUR114 within the earlier quarter.
The occupancy price for all Legacy-DH inns in operation was 63.8% within the fourth quarter of 2023, in contrast with 59.3% within the fourth quarter of 2022 and 69.0% within the earlier quarter.
Blended RevPAR was EUR73 within the fourth quarter of 2023, in contrast with EUR72 within the fourth quarter of 2022 and EUR79 within the earlier quarter.
Jin Hui, CEO of H World commented: “We completed the 12 months with sturdy efficiency. Our Legacy-Huazhu’s 2023 RevPAR recovered to 122% of the 2019 degree, pushed by a robust demand for leisure journey and the continued restoration for enterprise journey. While ADR progress was the important thing driver of the RevPAR restoration in 2023, the restoration of occupancy price additionally improved sequentially all year long. Our ADR progress primarily mirrored a mixture of product combine change and product upgrades. Looking forward, whereas persevering with to execute our ‘Sustainable Growth Strategy’ and carry via high-quality community growth, we’ll put extra emphasis on enhancing service high quality and bettering the visitor expertise to realize ‘Service Excellence’.”
“Regarding our enterprise exterior China, our Legacy-DH recorded 14.5% year-over-year RevPAR enhance in 2023. Thanks to the continued enterprise restoration and our price management efforts, Legacy-DH achieved optimistic EBITDA for the total 12 months of 2023. Looking into 2024, we purpose to rework our Legacy-DH enterprise to a extra asset-light mannequin, proceed the give attention to price discount and effectivity enchancment, strengthen direct gross sales through H Reward world loyalty program, and search progress alternatives within the Asia-Pacific (APAC) and the Middle East.”
Fourth Quarter and Full 12 months of 2023 Unaudited Financial Results
(RMB in hundreds of thousands)
This autumn 2022
Q3 2023
This autumn 2023
2022FY
2023FY
Revenue:
Leased and owned inns
2,450
3,878
3,453
9,148
13,796
Manachised and franchised inns
1,158
2,268
2,016
4,405
7,694
Others
98
142
116
309
392
Total income
3,706
6,288
5,585
13,862
21,882
Revenue within the fourth quarter of 2023 was RMB5.6 billion (US$786 million), representing a 50.7% year-over-year enhance and a sequential lower of 11.2% attributable to seasonality results. Revenue from the Legacy-Huazhu section within the fourth quarter of 2023 was RMB4.4 billion, representing a 59.0% year-over-year enhance and a 14.3% sequential decline. The 59.0% year-over-year enhance exceeds the beforehand introduced income steering of a 48% to 52% enhance, which was primarily supported by our continued product upgrades and operational optimization through our regional headquarters, in addition to our enhanced gross sales functionality. Revenue from the Legacy-DH section within the fourth quarter of 2023 was RMB1.2 billion, representing a 26.6% year-over-year enhance and a 2.2% sequential enhance.
Revenue for the total 12 months of 2023 was RMB21.9 billion (US$3.1 billion), representing a rise of 57.9% over the total 12 months of 2022. Revenue from Legacy-Huazhu for the total 12 months of 2023 was RMB17.4 billion, representing a 63.7% year-over-year enhance. Revenue from the Legacy-DH section for the total 12 months of 2023 was RMB4.4 billion, representing a 38.6% year-over-year enhance.
Revenue from leased and owned inns within the fourth quarter of 2023 was RMB3.5 billion (US$486 million), representing a 40.9% year-over-year enhance and an 11.0% sequential lower. Revenue from leased and owned inns from the Legacy-Huazhu section within the fourth quarter of 2023 was RMB2.3 billion, representing a 48.9% year-over-year enhance. Revenue from leased and owned inns from the Legacy-DH section within the fourth quarter of 2023 was RMB1.2 billion, representing a 27.6% year-over-year enhance.
For the total 12 months of 2023, income from our leased and owned inns was RMB13.8 billion (US$1.9 billion), representing a 50.8% year-over-year enhance. Revenue from our Legacy-Huazhu leased and owned inns for the total 12 months of 2023 was RMB9.5 billion, representing a 57.1% year-over-year enhance. Revenue from our Legacy-DH leased and owned inns for the total 12 months of 2023 was RMB4.3 billion, representing a 38.5% year-over-year enhance.
Revenue from manachised and franchised inns within the fourth quarter of 2023 was RMB2.0 billion (US$284 million), representing a 74.1% year-over-year enhance and a 11.1% sequential decline. Revenue from our Legacy-Huazhu section from manachised and franchised inns within the fourth quarter of 2023 was RMB2.0 billion, representing a 76.3% year-over-year enhance. Revenue from manachised and franchised inns from the Legacy-DH section within the fourth quarter of 2023 was RMB24 million, representing a 14.3% year-over-year lower.
For the total 12 months of 2023, income from manachised and franchised inns was RMB7.7 billion (US$1.1 billion), representing a 74.7% year-over-year enhance. These inns accounted for 35.2% of income, in comparison with 31.8% of income for the total 12 months of 2022. Revenue from our Legacy-Huazhu manachised and franchised inns for the total 12 months of 2023 was RMB7.6 billion, representing a 75.7% year-over-year enhance.
Other income represents income generated from companies aside from our resort operations, which primarily contains income from the supply of IT services and Huazhu Mall™ and different income from the Legacy-DH section, totaling RMB116 million (US$16 million) within the fourth quarter of 2023, in comparison with RMB98 million within the fourth quarter of 2022 and RMB142 million within the earlier quarter.
For the total 12 months of 2023, different income was RMB392 million (US$55 million), in comparison with RMB309 million for the total 12 months of 2022.
(RMB in hundreds of thousands)
This autumn 2022
Q3 2023
This autumn 2023
2022FY
2023FY
Operating prices and bills:
Hotel working prices
(3,430
)
(3,613
)
(3,996
)
(12,260
)
(14,341
)
Other working prices
(22
)
(7
)
(10
)
(62
)
(34
)
Selling and advertising bills
(169
)
(289
)
(326
)
(613
)
(1,072
)
General and administrative bills
(440
)
(539
)
(644
)
(1,675
)
(2,086
)
Pre-opening bills
(14
)
(11
)
(3
)
(95
)
(35
)
Total working prices and bills
(4,075
)
(4,459
)
(4,979
)
(14,705
)
(17,568
)
Hotel working prices within the fourth quarter of 2023 had been RMB4.0 billion (US$563 million), in comparison with RMB3.4 billion within the fourth quarter of 2022 and RMB3.6 billion within the earlier quarter. The year-over-year price enhance was primarily attributable to our enterprise restoration, in addition to much less rental discount. The quarter-over-quarter price enhance was primarily attributable to an impairment lack of RMB362 million booked within the fourth quarter of 2023, in comparison with RMB5 million impairment loss within the earlier quarter. Hotel working prices from the Legacy-Huazhu section within the fourth quarter of 2023 had been RMB2.9 billion, which represented 67.0% of income, in comparison with RMB2.4 billion or 88.7% of the income within the fourth quarter of 2022 and RMB2.7 billion or 52.0% of income for the earlier quarter.
For the total 12 months of 2023, resort working prices had been RMB14.3 billion (US$2.0 billion), in comparison with RMB12.3 billion for the total 12 months of 2022. Hotel working prices from Legacy-Huazhu for the total 12 months of 2023 had been RMB10.5 billion, which represented 60.4% of income, in comparison with 86.1% for the total 12 months of 2022.
Selling and advertising bills within the fourth quarter of 2023 had been RMB326 million (US$46 million), in comparison with RMB169 million within the fourth quarter of 2022 and RMB289 million within the earlier quarter. The year-over-year expense enhance was primarily attributable to larger commissions and promotional bills related to enterprise restoration. Selling and advertising bills from the Legacy-Huazhu section within the fourth quarter of 2023 had been RMB202 million, which represented 4.6% of income, in comparison with RMB88 million or 3.2% of income within the fourth quarter of 2022, and RMB177 million or 3.5% of income within the earlier quarter.
For the total 12 months of 2023, promoting and advertising bills had been RMB1.1 billion (US$151 million), in comparison with RMB613 million for the total 12 months of 2022. Selling and advertising bills from Legacy-Huazhu for the total 12 months of 2023 had been RMB649 million, which represented 3.7% of income, in comparison with RMB336 million or 3.2% of income for the total 12 months of 2022.
General and administrative bills within the fourth quarter of 2023 had been RMB644 million (US$91 million), in comparison with RMB440 million within the fourth quarter of 2022 and RMB539 million within the earlier quarter. The year-over-year expense will increase had been primarily attributable to larger headquarters personnel prices together with our enterprise restoration. General and administrative bills from the Legacy-Huazhu section within the fourth quarter of 2023 had been RMB484 million, which represented 11.0% of income, in comparison with RMB320 million or 11.6% within the fourth quarter of 2022 and RMB417 million or 8.2% for the earlier quarter.
For the total 12 months of 2023, normal and administrative bills had been RMB2.1 billion (US$294 million), in comparison with RMB1.7 billion for the total 12 months of 2022. General and administrative bills from Legacy-Huazhu for the total 12 months of 2023 had been RMB1.6 billion, which represented 9.0% of income, in comparison with RMB1.3 billion or 11.8% of income for the total 12 months of 2022.
Pre-opening bills within the fourth quarter of 2023 had been primarily associated to the Legacy-Huazhu section and totaled RMB3 million, in comparison with RMB14 million within the fourth quarter of 2022 and RMB11 million within the earlier quarter. The lower was attributable to extra selective openings of leased and owned inns.
Pre-opening bills for the total 12 months of 2023 had been RMB35 million (US$5 million), in comparison with RMB95 million for the total 12 months of 2022. Pre-opening bills from Legacy-Huazhu as a proportion of income had been 0.2% for the total 12 months of 2023, in comparison with 0.9% for the total 12 months of 2022.
Other working earnings, internet within the fourth quarter of 2023 was RMB155 million (US$22 million), in comparison with RMB276 million within the fourth quarter of 2022 and RMB80 million within the earlier quarter.
Other working earnings, internet for the total 12 months of 2023 was RMB404 million (US$57 million), in comparison with RMB549 million for the total 12 months of 2022.
Income from operations within the fourth quarter of 2023 was RMB757 million (US$106 million), in comparison with losses from operations of RMB93 million within the fourth quarter of 2022 and earnings from operations of RMB1.9 billion within the earlier quarter. Income from operations from the Legacy-Huazhu section within the fourth quarter of 2023 was RMB821 million, in comparison with losses from operations of RMB3 million within the fourth quarter of 2022 and earnings from operations of RMB1.9 billion within the earlier quarter. The Legacy-DH section had losses from operations of RMB64 million within the fourth quarter of 2023, in comparison with losses from operations of RMB90 million within the fourth quarter of 2022 and earnings from operations of RMB3 million within the earlier quarter.
Income from operations for the total 12 months of 2023 was RMB4.7 billion (US$662 million), in comparison with losses from operation of RMB294 million for the total 12 months of 2022. Income from operations from Legacy-Huazhu for the total 12 months of 2023 was RMB4.9 billion, in comparison with RMB51 million for the total 12 months of 2022. Loss from operations from Legacy-DH for the total 12 months of 2023 was RMB185 million, in comparison with losses of RMB345 million for the total 12 months of 2022.
Operating margin, outlined as earnings from operations as a proportion of income, was 13.6% within the fourth quarter of 2023, in contrast with a damaging 2.5% within the fourth quarter of 2022 and 30.4% for the earlier quarter. Operating margin from the Legacy-Huazhu section within the fourth quarter of 2023 was 18.7%, in contrast with a damaging 0.1% within the fourth quarter of 2022 and 37.3% within the earlier quarter.
Operating margin for the total 12 months of 2023 was 21.5%, in contrast with a damaging 2.1% for the total 12 months of 2022. Operating margin from Legacy-Huazhu for the total 12 months of 2023 was 28.1%, in contrast with 0.5% for the total 12 months of 2022.
Other earnings, internet within the fourth quarter of 2023 was RMB2 million, in comparison with an expense of RMB65 million within the fourth quarter of 2022 and an earnings of RMB24 million for the earlier quarter.
Other earnings, internet for the total 12 months of 2023 was RMB573 million (US$81 million) which was primarily attributable to good points from promoting Accor shares, in comparison with RMB10 million for the total 12 months of 2022.
Gains from truthful worth modifications of fairness securities within the fourth quarter of 2023 had been RMB124 million (US$18 million), in comparison with good points of RMB140 million within the fourth quarter of 2022, and losses of RMB9 million within the earlier quarter. Gains (losses) from truthful worth modifications of fairness securities primarily signify the unrealized good points (losses) from our funding in fairness securities with readily determinable truthful values.
For the total 12 months of 2023, good points from truthful worth modifications of fairness securities had been RMB109 million (US$15 million), in comparison with losses of RMB359 million for the total 12 months of 2022, which had been primarily attributable to good points from truthful worth modifications of UBOX in 2023 in addition to losses from holding Accor shares in 2022. We bought all the Company’s holdings of Accor shares in March 2023.
Income tax expense within the fourth quarter of 2023 was RMB281 million (US$39 million), in comparison with RMB203 million within the fourth quarter of 2022 and RMB421 million within the earlier quarter.
For the total 12 months of 2023, earnings tax expense was RMB1.2 billion (US$168 million), in comparison with RMB207 million for the total 12 months of 2022.
Net earnings attributable to H World Group Limited within the fourth quarter of 2023 was RMB743 million (US$105 million), in contrast with a internet loss attributable to H World Group Limited of RMB124 million within the fourth quarter of 2022 and internet earnings attributable to H World Group Limited of RMB1.3 billion within the earlier quarter. Net earnings attributable to H World Group Limited from the Legacy-Huazhu section was RMB827 million within the fourth quarter of 2023, in contrast with a internet loss attributable to H World Group Limited from the Legacy-Huazhu section of RMB84 million within the fourth quarter of 2022 and internet earnings attributable to H World Group Limited from the Legacy-Huazhu section of RMB1.4 billion within the earlier quarter.
Net earnings attributable to H World Group Limited for the total 12 months of 2023 was RMB4.1 billion (US$575 million), in contrast with a internet loss attributable to H World Group Limited of RMB1.8 billion for the total 12 months of 2022. Net earnings attributable to H World Group Limited from Legacy-Huazhu for the total 12 months of 2023 was RMB4.4 billion, in comparison with a internet loss attributable to H World Group Limited of RMB1.4 billion for the total 12 months of 2022.
EBITDA (non-GAAP) within the fourth quarter of 2023 was RMB1.4 billion (US$191 million), in contrast with RMB529 million within the fourth quarter of 2022 and RMB2.1 billion within the earlier quarter. Adjusted EBITDA (non-GAAP), which excluded share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities from EBITDA (non-GAAP), was RMB1.3 billion (US$178 million) within the fourth quarter of 2023, in contrast with RMB398 million within the fourth quarter of 2022 and RMB2.2 billion within the earlier quarter. Adjusted EBITDA from the Legacy-Huazhu section, which is a section measure, was RMB1.3 billion within the fourth quarter of 2023, in contrast with RMB397 million within the fourth quarter of 2022 and RMB2.1 billion within the earlier quarter.
EBITDA (non-GAAP) for the total 12 months of 2023 was RMB6.8 billion (US$961 million), in comparison with RMB164 million for the total 12 months of 2022. Excluding share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities, adjusted EBITDA (non-GAAP) for the total 12 months of 2023 was RMB6.9 billion (US$966 million), in contrast with RMB610 million for the total 12 months of 2022. The adjusted EBITDA from Legacy-Huazhu for the total 12 months of 2023 was RMB6.8 billion, in contrast with RMB728 million for the total 12 months of 2022.
Cash circulate. Operating money influx within the fourth quarter of 2023 was RMB2.4 billion (US$339 million). Investing money outflow within the fourth quarter of 2023 was RMB277 million (US$38 million). Financing money outflow within the fourth quarter of 2023 was RMB744 million (US$105 million).
Operating money influx for the total 12 months of 2023 was RMB7.7 billion (US$1.1 billion), in comparison with RMB1.6 billion for the total 12 months of 2022. Investing money outflow for the total 12 months of 2023 was RMB1.5 billion (US$207 million), in comparison with RMB522 million for the total 12 months of 2022. Financing money outflow for the total 12 months of 2023 was RMB3.7 billion (US$523 million), in comparison with RMB1.4 billion for the total 12 months of 2022.
Cash, money equivalents and restricted money. As of December 31, 2023, the Company had a complete stability of money and money equivalents of RMB6.9 billion (US$978 million) and restricted money of RMB764 million (US$108 million).
Debt financing. As of December 31, 2023, the Company had a complete debt and internet money stability of RMB5.3 billion (US$749 million) and RMB2.4 billion (US$337 million), respectively; the unutilized credit score facility accessible to the Company was RMB2.8 billion.
Guidance
For the primary quarter of 2024, H World expects its income progress to be within the vary of 12%-16% in comparison with the primary quarter of 2023, or within the vary of 11%-15% excluding DH.
For the total 12 months of 2024, H World expects income progress to be within the vary of 8%-12% in comparison with the total 12 months of 2023, or within the vary of 8%-12% excluding DH.
For the total 12 months of 2024, H World expects to open round 1,800 inns and shut round 650 inns.
The above forecast displays the Company’s present and preliminary view, which is topic to vary.
Conference Call
H World’s administration will host a convention name at 9 p.m. U.S. Eastern time on Wednesday, March 20, 2024 (9 a.m. Hong Kong time on Thursday, March 21, 2024) following the announcement.
To be part of by telephone, all members should pre-register this convention name utilizing the Participant Registration hyperlink of https://register.vevent.com/register/BI6c40e138e35f49faab0334b5e7db2048. Upon registration, every participant will obtain particulars for the convention name, together with dial-in numbers, convention name passcode and a novel entry PIN.
A dwell webcast of the decision could be accessed at https://edge.media-server.com/mmc/p/55zwtf8m or the Company’s web site at https://ir.hworld.com/news-and-events/events-calendar.
A replay of the convention name will likely be accessible for twelve months from the date of the convention on the Company’s web site, https://ir.hworld.com/news-and-events/events-calendar.
Use of Non-GAAP Financial Measures
To complement the Company’s unaudited consolidated monetary outcomes introduced in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company makes use of the next non-GAAP measures outlined as non-GAAP monetary measures by the U.S. Securities and Exchange Commission (“SEC”): adjusted internet earnings (loss) attributable to H World Group Limited excluding share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities; adjusted fundamental and diluted earnings (losses) per share/ADS excluding share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities; EBITDA; adjusted EBITDA excluding share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities. The presentation of those non-GAAP monetary measures shouldn’t be supposed to be thought of in isolation or as an alternative to the monetary data ready and introduced in accordance with U.S. GAAP. For extra data on these non-GAAP monetary measures, please see the desk captioned “Unaudited Reconciliations of GAAP and non-GAAP Results” set forth on the finish of this launch. The Company believes that these non-GAAP monetary measures present significant supplemental data concerning Company efficiency by excluding share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities that is probably not indicative of Company working efficiency. The Company believes that each administration and buyers profit from referring to those non-GAAP monetary measures in assessing Company efficiency and when planning and forecasting future intervals. These non-GAAP monetary measures additionally facilitate administration’s inside comparisons to the Company’s historic efficiency. The Company believes these non-GAAP monetary measures are additionally helpful to buyers in permitting for better transparency with respect to supplemental data used commonly by Company administration in monetary and operational decision-making. A limitation of utilizing non-GAAP monetary measures excluding share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities is that share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities have been and will proceed to be important and recurring within the Company’s enterprise. Management compensates for these limitations by offering particular data concerning the GAAP quantities excluded from every non-GAAP measure. The accompanying tables have extra particulars on the reconciliations between GAAP monetary measures which are most straight akin to non-GAAP monetary measures.
The Company believes that EBITDA is a helpful monetary metric to evaluate the working and monetary efficiency earlier than the influence of investing and financing transactions and earnings taxes, given the numerous investments that the Company has made in leasehold enhancements, depreciation and amortization expense that comprise a good portion of the Company’s price construction. In addition, the Company believes that EBITDA is extensively utilized by different corporations within the lodging business and could also be utilized by buyers as a measure of economic efficiency. The Company believes that EBITDA data offers buyers with a great tool for comparability between intervals as a result of it excludes depreciation and amortization expense attributable to capital expenditures. The Company additionally makes use of adjusted EBITDA to evaluate working outcomes of its inns in operation. The Company believes that the exclusion of share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities helps facilitate year-over-year comparisons of the outcomes of operations because the share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities is probably not indicative of Company working efficiency.
The Company believes that good points and losses from modifications in truthful worth of fairness securities are typically much less important in understanding the Company’s reported outcomes or evaluating the financial efficiency of its companies. These good points and losses have induced and will proceed to trigger important volatility in reported periodic earnings.
Therefore, the Company believes adjusted EBITDA extra carefully displays the monetary efficiency functionality of our inns. The presentation of EBITDA and adjusted EBITDA shouldn’t be construed as a sign that the Company’s future outcomes will likely be unaffected by different prices and good points thought of to be exterior the strange course of enterprise.
The use of EBITDA and adjusted EBITDA has sure limitations. Depreciation and amortization expense for numerous long-term belongings (together with land use rights), earnings tax, curiosity expense and curiosity earnings have been and will likely be incurred and should not mirrored within the presentation of EBITDA. Share-based compensation bills and good points (losses) from truthful worth modifications of fairness securities have been and will likely be incurred and should not mirrored within the presentation of adjusted EBITDA. Each of these things also needs to be thought of within the total analysis of the outcomes. The Company compensates for these limitations by offering the related disclosure of depreciation and amortization, curiosity earnings, curiosity expense, earnings tax expense, share-based compensation bills, and good points (losses) from truthful worth modifications of fairness securities and different related objects each within the reconciliations to the U.S. GAAP monetary measures and within the consolidated monetary statements, all of which needs to be thought of when evaluating the efficiency of the Company.
The phrases EBITDA and adjusted EBITDA should not outlined beneath U.S. GAAP, and neither EBITDA nor adjusted EBITDA is a measure of internet earnings, working earnings, working efficiency or liquidity introduced in accordance with U.S. GAAP. When assessing the working and monetary efficiency, buyers shouldn’t take into account these information in isolation or as an alternative to the Company’s internet earnings, working earnings or some other working efficiency measure that’s calculated in accordance with U.S. GAAP. In addition, the Company’s EBITDA or adjusted EBITDA is probably not akin to EBITDA or adjusted EBITDA or equally titled measures utilized by different corporations since such different corporations might not calculate EBITDA or adjusted EBITDA in the identical method because the Company does.
About H World Group Limited
Originated in China, H World Group Limited is a key participant within the world resort business. As of December 31, 2023, H World operated 9,394 inns with 912,444 rooms in operation in 18 nations. H World’s manufacturers embrace Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, Ni Hao Hotel, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz within the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song Hotels. In addition, H World additionally has the rights as grasp franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, within the pan-China area.
H World’s enterprise contains leased and owned, manachised and franchised fashions. Under the lease and possession mannequin, H World straight operates inns sometimes positioned on leased or owned properties. Under the manachise mannequin, H World manages manachised inns via the on-site resort managers that H World appoints, and H World collects charges from franchisees. Under the franchise mannequin, H World offers coaching, reservations and help providers to the franchised inns, and collects charges from franchisees however doesn’t appoint on-site resort managers. H World applies a constant commonplace and platform throughout all of its inns. As of December 31, 2023, H World operates 11 % of its resort rooms beneath the lease and possession mannequin, and 89 % beneath the manachise and franchise mannequin.
For extra data, please go to H World’s web site: https://ir.hworld.com.
Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The data on this launch accommodates forward-looking statements which contain dangers and uncertainties. Such elements and dangers embrace our anticipated progress methods; our future outcomes of operations and monetary situation; financial situations; the regulatory surroundings; our capability to draw and retain prospects and leverage our manufacturers; tendencies and competitors within the lodging business; the anticipated progress of demand for lodging; and different elements and dangers detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that aren’t statements of historic reality could also be deemed to be forward-looking statements, which can be recognized by terminology similar to “might,” “ought to,” “will,” “count on,” “plan,” “intend,” “anticipate,” “consider,” “estimate,” “predict,” “potential,” “forecast,” “undertaking” or “proceed,” the damaging of such phrases or different comparable terminology. Readers shouldn’t depend on forward-looking statements as predictions of future occasions or outcomes.
H World undertakes no obligation to replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case, except required by relevant legislation.
H World Group Limited
Unaudited Condensed Consolidated Balance Sheets
December 31, 2022
December 31, 2023
RMB
RMB
US$3
(in hundreds of thousands)
ASSETS
Current belongings:
Cash and money equivalents
3,583
6,946
978
Restricted money
1,503
764
108
Short-term investments
1,788
2,189
308
Accounts receivable, internet
1,113
755
106
Loan receivables – present, internet
134
184
26
Amounts due from associated events, present
178
210
30
Inventories
70
59
8
Other present belongings, internet
809
949
134
Total present belongings
9,178
12,056
1,698
Property and gear, internet
6,784
6,097
859
Intangible belongings, internet
5,278
5,280
744
Operating lease right-of-use belongings
28,970
25,658
3,614
Finance lease right-of-use belongings
2,047
2,171
306
Land use rights, internet
199
181
25
Long-term investments
1,945
2,564
361
Goodwill
5,195
5,318
749
Amounts due from associated events, non-current
6
25
3
Loan receivables, internet
124
163
23
Other belongings, internet
688
663
93
Deferred tax belongings
1,093
1,043
147
Assets held on the market
–
2,313
326
Total belongings
61,507
63,532
8,948
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt
3,288
4,049
570
Accounts payable
1,171
1,019
143
Amounts attributable to associated events
71
77
11
Salary and welfare payables
657
1,067
150
Deferred income
1,308
1,637
231
Operating lease liabilities, present
3,773
3,609
508
Finance lease liabilities, present
41
45
6
Accrued bills and different present liabilities
2,337
3,261
459
Dividends payable
–
2,085
294
Income tax payable
500
562
78
Total present liabilities
13,146
17,411
2,450
Long-term debt
6,635
1,265
179
Operating lease liabilities, non-current
27,637
24,215
3,411
Finance lease liabilities, non-current
2,513
2,697
380
Deferred income
828
1,072
151
Other long-term liabilities
977
1,118
157
Deferred tax liabilities
858
845
119
Retirement profit obligations
110
124
18
Liabilities held on the market
–
2,536
358
Total liabilities
52,704
51,283
7,223
Equity:
Ordinary shares
0
0
0
Treasury shares
(441
)
(906
)
(128
)
Additional paid-in capital
10,138
11,861
1,671
Retained earnings
(1,200
)
794
112
Accumulated different complete earnings
232
386
54
Total H World Group Limited shareholders’ fairness
8,729
12,135
1,709
Noncontrolling curiosity
74
114
16
Total fairness
8,803
12,249
1,725
Total liabilities and fairness
61,507
63,532
8,948
H World Group Limited
Unaudited Condensed Consolidated Statements of Comprehensive Income
Quarter Ended
Year Ended
December 31, 2022
September 30, 2023
December 31, 2023
December 31, 2022
December 31, 2023
RMB
RMB
RMB
US$
RMB
RMB
US$
(in hundreds of thousands, besides shares, per share and per ADS information)
Revenue:
Leased and owned inns
2,450
3,878
3,453
486
9,148
13,796
1,943
Manachised and franchised inns
1,158
2,268
2,016
284
4,405
7,694
1,084
Others
98
142
116
16
309
392
55
Total income
3,706
6,288
5,585
786
13,862
21,882
3,082
Operating prices and bills:
Hotel working prices:
Rents
(956
)
(1,118
)
(1,033
)
(146
)
(3,927
)
(4,290
)
(604
)
Utilities
(162
)
(185
)
(160
)
(23
)
(603
)
(685
)
(97
)
Personnel prices
(981
)
(1,186
)
(1,331
)
(187
)
(3,683
)
(4,684
)
(660
)
Depreciation and amortization
(351
)
(330
)
(320
)
(45
)
(1,414
)
(1,329
)
(187
)
Consumables, meals and beverage
(289
)
(353
)
(361
)
(51
)
(1,026
)
(1,327
)
(187
)
Others
(691
)
(441
)
(791
)
(111
)
(1,607
)
(2,026
)
(286
)
Total resort working prices
(3,430
)
(3,613
)
(3,996
)
(563
)
(12,260
)
(14,341
)
(2,021
)
Other working prices
(22
)
(7
)
(10
)
(1
)
(62
)
(34
)
(5
)
Selling and advertising bills
(169
)
(289
)
(326
)
(46
)
(613
)
(1,072
)
(151
)
General and administrative bills
(440
)
(539
)
(644
)
(91
)
(1,675
)
(2,086
)
(294
)
Pre-opening bills
(14
)
(11
)
(3
)
(0
)
(95
)
(35
)
(5
)
Total working prices and bills
(4,075
)
(4,459
)
(4,979
)
(701
)
(14,705
)
(17,568
)
(2,476
)
Goodwill impairment loss
–
–
(4
)
(1
)
–
(4
)
(1
)
Other working earnings (expense), internet
276
80
155
22
549
404
57
Income (loss) from operations
(93
)
1,909
757
106
(294
)
4,714
662
Interest earnings
27
62
85
12
87
248
35
Interest expense
(117
)
(85
)
(76
)
(11
)
(409
)
(385
)
(54
)
Other earnings (expense), internet
(65
)
24
2
0
10
573
81
Gains (losses) from truthful worth modifications of fairness securities
140
(9
)
124
18
(359
)
109
15
Foreign trade good points (losses)
181
(148
)
140
20
(641
)
90
13
Income (loss) earlier than earnings taxes
73
1,753
1,032
145
(1,606
)
5,349
752
Income tax (expense) profit
(203
)
(421
)
(281
)
(39
)
(207
)
(1,204
)
(168
)
Income (Loss) from fairness technique investments
3
20
(8
)
(1
)
(36
)
(14
)
(2
)
Net earnings (loss)
(127
)
1,352
743
105
(1,849
)
4,131
582
Net (earnings) loss attributable to noncontrolling curiosity
3
(15
)
(0
)
(0
)
28
(46
)
(7
)
Net earnings (loss) attributable to H World Group Limited
(124
)
1,337
743
105
(1,821
)
4,085
575
Gains (losses) arising from outlined profit plan, internet of tax
22
–
(9
)
(1
)
22
(9
)
(1
)
Gains(losses) from truthful worth modifications of debt securities, internet of tax
57
–
(31
)
(4
)
57
(12
)
(2
)
Foreign foreign money translation changes, internet of tax
82
(24
)
(23
)
(3
)
112
175
25
Comprehensive earnings (loss)
34
1,328
680
97
(1,658
)
4,285
604
Comprehensive (earnings) loss attributable to noncontrolling curiosity
3
(15
)
(0
)
(0
)
28
(46
)
(7
)
Comprehensive earnings (loss) attributable to H World Group Limited
37
1,313
680
97
(1,630
)
4,239
597
Earnings (Losses) per share:
Basic
(0.04
)
0.42
0.23
0.03
(0.59
)
1.28
0.18
Diluted
(0.04
)
0.41
0.23
0.03
(0.59
)
1.25
0.18
Earnings (Losses) per ADS:
Basic
(0.40
)
4.19
2.33
0.33
(5.85
)
12.83
1.81
Diluted
(0.40
)
4.07
2.31
0.33
(5.85
)
12.55
1.77
Weighted common variety of shares utilized in computation:
Basic
3,109,528,097
3,188,274,127
3,182,802,226
3,182,802,226
3,111,196,757
3,183,163,131
3,183,163,131
Diluted
3,109,528,097
3,355,586,429
3,217,737,686
3,217,737,686
3,111,196,757
3,351,421,211
3,351,421,211
H World Group Limited
Unaudited Condensed Consolidated Statements of Cash Flows
Quarter Ended
Year Ended
December 31, 2022
September 30, 2023
December 31, 2023
December 31, 2022
December 31, 2023
RMB
RMB
RMB
US$
RMB
RMB
US$
(in hundreds of thousands)
Operating actions:
Net earnings (loss)
(127
)
1,352
743
105
(1,849
)
4,131
582
Share-based compensation
9
44
38
5
87
143
20
Depreciation and amortization,
and different
369
358
346
49
1,513
1,448
204
Impairment loss
390
5
430
61
491
516
73
Loss (earnings) from fairness technique investments, internet of dividends
(3
)
(18
)
8
1
85
72
10
Investment (earnings) loss and international trade (acquire) loss
(362
)
167
(452
)
(64
)
662
(925
)
(130
)
Changes in working belongings and liabilities
1,008
(583
)
1,359
191
166
2,508
352
Other
(242
)
(144
)
(61
)
(9
)
409
(219
)
(31
)
Net money supplied by (utilized in) working actions
1,042
1,181
2,411
339
1,564
7,674
1,080
Investing actions:
Capital expenditures
(229
)
(196
)
(313
)
(44
)
(1,053
)
(901
)
(127
)
Acquisitions, internet of money acquired
2
–
(0
)
(0
)
(57
)
(0
)
(0
)
Purchase of investments
(23
)
(1,846
)
(700
)
(99
)
(401
)
(3,509
)
(494
)
Proceeds from maturity/sale and return of investments
370
–
771
109
937
2,972
419
Loan advances
(30
)
(48
)
(140
)
(20
)
(182
)
(262
)
(37
)
Loan collections
52
39
36
5
224
147
21
Other
7
2
69
11
10
76
11
Net money supplied by (utilized in) investing actions
149
(2,049
)
(277
)
(38
)
(522
)
(1,477
)
(207
)
Financing actions:
Net proceeds from issuance of strange shares
–
–
–
–
–
1,973
278
Payment of share repurchase
–
–
(848
)
(119
)
(334
)
(848
)
(119
)
Proceeds from debt
2,288
71
370
52
7,101
1,169
165
Repayment of debt
(3,670
)
(666
)
(204
)
(29
)
(7,781
)
(5,862
)
(826
)
Dividend paid
–
–
–
–
(416
)
–
–
Other
(19
)
(18
)
(62
)
(9
)
36
(152
)
(21
)
Net money supplied by (utilized in) financing actions
(1,401
)
(613
)
(744
)
(105
)
(1,394
)
(3,720
)
(523
)
Effect of trade price modifications on money, money equivalents and restricted money
79
(59
)
41
6
297
164
22
Net enhance (lower) in money, money equivalents and restricted money, together with money labeled inside belongings held on the market
(131
)
(1,540
)
1,431
202
(55
)
2,641
372
Less: internet enhance (lower) in money and money equivalents labeled inside belongings held on the market
–
–
17
2
–
17
2
Cash, money equivalents and restricted money initially of the interval
5,217
7,836
6,296
886
5,141
5,086
716
Cash, money equivalents and restricted money on the finish of the interval
5,086
6,296
7,710
1,086
5,086
7,710
1,086
H World Group Limited
Unaudited Reconciliation of GAAP and Non-GAAP Results
Quarter Ended
Year Ended
December 31, 2022
September 30, 2023
December 31, 2023
December 31, 2022
December 31, 2023
RMB
RMB
RMB
US$
RMB
RMB
US$
(in hundreds of thousands, besides shares, per share and per ADS information)
Net earnings (loss) attributable to H World Group Limited (GAAP)
(124
)
1,337
743
105
(1,821
)
4,085
575
Share-based compensation bills
9
44
38
5
87
143
20
(Gains) losses from truthful worth modifications of fairness securities
(140
)
9
(124
)
(18
)
359
(109
)
(15
)
Adjusted internet earnings (loss) attributable to H World Group Limited (non-GAAP)
(255
)
1,390
657
92
(1,375
)
4,119
580
Adjusted earnings (losses) per share (non-GAAP)
Basic
(0.08
)
0.44
0.21
0.03
(0.44
)
1.29
0.18
Diluted
(0.08
)
0.42
0.20
0.03
(0.44
)
1.26
0.18
Adjusted earnings (losses) per ADS (non-GAAP)
Basic
(0.82
)
4.36
2.06
0.29
(4.42
)
12.94
1.82
Diluted
(0.82
)
4.23
2.04
0.29
(4.42
)
12.65
1.78
Weighted common variety of shares utilized in computation
Basic
3,109,528,097
3,188,274,127
3,182,802,226
3,182,802,226
3,111,196,757
3,183,163,131
3,183,163,131
Diluted
3,109,528,097
3,355,586,429
3,217,737,686
3,217,737,686
3,111,196,757
3,351,421,211
3,351,421,211
Quarter Ended
Year Ended
December 31, 2022
September 30, 2023
December 31, 2023
December 31, 2022
December 31, 2023
RMB
RMB
RMB
US$
RMB
RMB
US$
(in hundreds of thousands, besides per share and per ADS information)
Net earnings (loss) attributable to H World Group Limited (GAAP)
(124
)
1,337
743
105
(1,821
)
4,085
575
Interest earnings
(27
)
(62
)
(85
)
(12
)
(87
)
(248
)
(35
)
Interest expense
117
85
76
11
409
385
54
Income tax expense
203
421
281
39
207
1,204
168
Depreciation and amortization
360
352
341
48
1,456
1,414
199
EBITDA (non-GAAP)
529
2,133
1,356
191
164
6,840
961
Share-based compensation
9
44
38
5
87
143
20
(Gains) losses from truthful worth modifications of fairness securities
(140
)
9
(124
)
(18
)
359
(109
)
(15
)
Adjusted EBITDA (non-GAAP)
398
2,186
1,270
178
610
6,874
966
H World Group Limited
Segment Financial Summary
Quarter Ended December 31, 2022
Quarter Ended September 30, 2023
Quarter Ended December 31, 2023
Legacy- Huazhu
Legacy- DH
Legacy- Huazhu
Legacy- DH
Legacy- Huazhu
Legacy- DH
RMB
RMB
RMB
RMB
RMB
RMB
(in hundreds of thousands)
(in hundreds of thousands)
(in hundreds of thousands)
Leased and owned inns
1,537
913
2,748
1,130
2,288
1,165
Manachised and franchised inns
1,130
28
2,238
30
1,992
24
Others
90
8
127
15
104
12
Revenue
2,757
949
5,113
1,175
4,384
1,201
Depreciation and amortization
295
65
286
66
282
59
Adjusted EBITDA
397
1
2,131
55
1,270
0
H World Group Limited
Segment Financial Summary
Year Ended December 31, 2022
Year Ended December 31, 2023
Legacy- Huazhu
Legacy- DH
Legacy- Huazhu
Legacy- DH
RMB
RMB
RMB
RMB
(in hundreds of thousands)
(in hundreds of thousands)
Leased and owned inns
6,062
3,086
9,522
4,274
Manachised and franchised inns
4,324
81
7,596
98
Others
269
40
320
72
Revenue
10,655
3,207
17,438
4,444
Depreciation and amortization
1,212
244
1,166
248
Adjusted EBITDA
728
(118
)
6,787
87
Operating Results: Legacy-Huazhu(1)
Number of inns
Number of rooms
Opened
in This autumn 2023
Closed(2)
in This autumn 2023
Net added
in This autumn 2023
As of
December 31,
2023
As of
December 31,
2023
Leased and owned inns
4
(5
)
(1
)
607
86,691
Manachised and franchised inns
456
(220
)
236
8,656
798,939
Total
460
(225
)
235
9,263
885,630
(1) Legacy-Huazhu refers to H World and its subsidiaries, excluding DH.
(2) The causes for resort closures primarily included non-compliance with our model requirements, working losses, and property-related points. In This autumn 2023, we briefly closed 18 inns for model improve and enterprise mannequin change functions.
As of December 31, 2023
Number of inns
Unopened inns in pipeline
Economy inns
4,968
1,106
Leased and owned inns
329
0
Manachised and franchised inns
4,639
1,106
Midscale, upper-midscale inns and others
4,295
1,955
Leased and owned inns
278
9
Manachised and franchised inns
4,017
1,946
Total
9,263
3,061
Operational inns excluding inns beneath requisition
For the quarter ended
December 31,
September 30,
December 31,
yoy
2022
2023
2023
change
Average each day room price (in RMB)
Leased and owned inns
279
406
356
27.7%
Manachised and franchised inns
236
314
276
17.1%
Blended
240
324
284
18.3%
Occupancy price (as a proportion)
Leased and owned inns
63.1%
87.8%
83.7%
+20.6 p.p.
Manachised and franchised inns
66.6%
85.7%
80.1%
+13.5 p.p.
Blended
66.2%
85.9%
80.5%
+14.3 p.p.
RevPAR (in RMB)
Leased and owned inns
176
356
298
69.4%
Manachised and franchised inns
157
269
221
40.9%
Blended
159
278
229
43.8%
For the quarter ended
December 31,
December 31,
yoy
2019
2023
change
Average each day room price (in RMB)
Leased and owned inns
277
356
28.4%
Manachised and franchised inns
223
276
24.1%
Blended
232
284
22.5%
Occupancy price (as a proportion)
Leased and owned inns
84.7%
83.7%
-1.1 p.p.
Manachised and franchised inns
81.6%
80.1%
-1.5 p.p.
Blended
82.2%
80.5%
-1.7 p.p.
RevPAR (in RMB)
Leased and owned inns
235
298
26.8%
Manachised and franchised inns
182
221
21.8%
Blended
191
229
20.0%
Operational inns excluding inns beneath requisition
For full 12 months ended
December 31,
December 31,
yoy
2022
2023
change
Average each day room price (in RMB)
Leased and owned inns
272
372
36.9%
Manachised and franchised inns
231
290
25.3%
Blended
236
299
26.6%
Occupancy price (as a proportion)
Leased and owned inns
63.9%
82.8%
+18.9 p.p.
Manachised and franchised inns
67.1%
80.8%
+13.8 p.p.
Blended
66.7%
81.1%
+14.4 p.p.
RevPAR (in RMB)
Leased and owned inns
174
308
77.4%
Manachised and franchised inns
155
234
51.0%
Blended
157
242
53.9%
For full 12 months ended
December 31,
December 31,
yoy
2019
2023
change
Average each day room price (in RMB)
Leased and owned inns
276
372
34.5%
Manachised and franchised inns
224
290
29.1%
Blended
234
299
27.4%
Occupancy price (as a proportion)
Leased and owned inns
87.0%
82.8%
-4.1p.p.
Manachised and franchised inns
83.8%
80.8%
-2.9p.p.
Blended
84.4%
81.1%
-3.3p.p.
RevPAR (in RMB)
Leased and owned inns
240
308
28.1%
Manachised and franchised inns
188
234
24.6%
Blended
198
242
22.4%
Same-hotel operational information by class
Mature inns in operation for greater than 18 months (excluding inns beneath requisition)
Number of inns
Same-hotel RevPAR
Same-hotel ADR
Same-hotel Occupancy
As of
December 31,
For the quarter
yoy
For the quarter
yoy
For the quarter
yoy
ended
December 31,
change
ended
December 31,
change
ended
December 31,
change
2022
2023
2022
2023
2022
2023
2022
2023
(p.p.)
Economy inns
3,641
3,641
129
173
34.5
%
184
212
14.9
%
69.8
%
81.7
%
+11.9
Leased and owned inns
318
318
134
209
56.6
%
200
248
24.1
%
66.8
%
84.3
%
+17.5
Manachised and franchised inns
3,323
3,323
128
168
31.3
%
182
206
13.3
%
70.2
%
81.3
%
+11.1
Midscale, upper-midscale inns and others
2,898
2,898
197
283
44.2
%
302
351
16.0
%
65.0
%
80.8
%
+15.8
Leased and owned inns
250
250
223
370
66.0
%
364
445
22.2
%
61.3
%
83.2
%
+22.0
Manachised and franchised inns
2,648
2,648
193
271
40.5
%
294
337
14.4
%
65.5
%
80.5
%
+14.9
Total
6,539
6,539
164
230
40.8
%
243
283
16.7
%
67.3
%
81.2
%
+13.9
Same-hotel operational information by class
Mature inns in operation for greater than 18 months (excluding inns beneath requisition)
Number of inns
Same-hotel RevPAR
Same-hotel ADR
Same-hotel Occupancy
As of
December 31,
For the 12 months
yoy
For the 12 months
yoy
For the 12 months
yoy
ended
December 31,
change
ended
December 31,
change
ended
December 31,
change
2022
2023
2022
2023
2022
2023
2022
2023
(p.p.)
Economy inns
3,641
3,641
129
186
44.4
%
180
225
25.1
%
71.5
%
82.5
%
+11.0
Leased and owned inns
318
318
135
225
65.9
%
196
266
36.0
%
69.2
%
84.3
%
+15.2
Manachised and franchised inns
3,323
3,323
128
180
41.0
%
178
219
23.2
%
71.8
%
82.2
%
+10.4
Midscale, upper-midscale inns and others
2,898
2,898
198
301
51.9
%
304
369
21.7
%
65.2
%
81.4
%
+16.2
Leased and owned inns
250
250
219
381
74.0
%
365
465
27.5
%
60.1
%
82.0
%
+21.9
Manachised and franchised inns
2,648
2,648
195
288
48.0
%
295
354
20.1
%
66.0
%
81.3
%
+15.3
Total
6,539
6,539
163
244
49.4
%
239
298
24.6
%
68.3
%
81.9
%
+13.6
Operating Results: Legacy-DH(3)
Number of inns
Number of
rooms
Unopened inns
in pipeline
Opened
in This autumn 2023
Closed
in This autumn 2023
Net added
in This autumn 2023
As of
December
31, 2023(4)
As of
December 31,
2023
As of
December 31,
2023
Leased inns
2
–
2
84
16,303
21
Manachised and franchised inns
–
–
–
47
10,511
16
Total
2
–
2
131
26,814
37
(3) Legacy-DH refers to DH.
(4) As of December 31, 2023, a complete of two inns had been briefly closed attributable to restore work.
For the quarter ended
December 31,
September 30,
December 31,
yoy
2022
2023
2023
change
Average each day room price (in EUR)
Leased inns
114
113
118
3.1%
Manachised and franchised inns
134
116
111
-17.3%
Blended
122
114
115
-5.9%
Occupancy price (as a proportion)
Leased inns
60.0%
71.4%
64.7%
+4.7 p.p.
Manachised and franchised inns
58.3%
65.5%
62.6%
+4.3 p.p.
Blended
59.3%
69.0%
63.8%
+4.5 p.p.
RevPAR (in EUR)
Leased inns
68
81
76
11.2%
Manachised and franchised inns
78
76
69
-11.2%
Blended
72
79
73
1.3%
For full 12 months ended
December 31,
December 31,
yoy
2022
2023
change
Average each day room price (in EUR)
Leased and owned inns
110
115
4.6%
Manachised and franchised inns
113
110
-3.2%
Blended
111
113
1.4%
Occupancy Rate (as a proportion)
Leased and owned inns
56.0%
64.7%
+8.7 p.p.
Manachised and franchised inns
56.4%
61.6%
+5.1 p.p.
Blended
56.2%
63.4%
+7.2 p.p.
RevPAR (in EUR)
Leased and owned inns
61
74
20.9%
Manachised and franchised inns
64
67
5.6%
Blended
62
71
14.5%
Hotel Portfolio by Brand
As of December 31, 2023
Hotels
Rooms
Unopened inns
in operation
in pipeline
Economy inns
4,984
407,657
1,121
HanTing Hotel
3,598
317,647
731
Hi Inn
471
24,431
180
Ni Hao Hotel
269
20,009
177
Elan Hotel
404
21,012
1
Ibis Hotel
226
22,659
17
Zleep Hotels
16
1,899
15
Midscale inns
3,543
379,614
1,503
Ibis Styles Hotel
105
10,607
24
Starway Hotel
670
55,786
228
JI Hotel
2,116
244,175
936
Orange Hotel
652
69,046
315
Upper midscale inns
704
98,508
397
Crystal Orange Hotel
183
23,664
119
CitiGO Hotel
35
5,308
4
Manxin Hotel
137
12,678
69
Madison Hotel
90
11,704
64
Mercure Hotel
164
25,803
58
Novotel Hotel
23
5,763
17
IntercityHotel(5)
63
12,219
64
MAXX(6)
9
1,369
2
Upscale inns
137
21,046
69
Jaz within the City
3
587
1
Joya Hotel
7
1,234
–
Blossom House
63
2,791
56
Grand Mercure Hotel
10
2,039
2
Steigenberger Hotels & Resorts(7)
54
14,395
10
Luxury inns
16
2,360
2
Steigenberger Icon(8)
9
1,847
2
Song Hotels
7
513
–
Others
10
3,259
6
Other inns(9)
10
3,259
6
Total
9,394
912,444
3,098
(5) As of December 31, 2023, 9 operational inns and 53 pipeline inns of IntercityHotel had been in China.
(6) As of December 31, 2023, 4 operational inns and a pair of pipeline inns of MAXX had been in China.
(7) As of December 31, 2023, 11 operational inns and three pipeline inns of Steigenberger Hotels & Resorts had been in China.
(8) As of December 31, 2023, 3 operational inns and 1 pipeline resort of Steigenberger Icon had been in China.
(9) Other inns embrace different companion inns and different resort manufacturers in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House).
Contact Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@hworld.com
https://ir.hworld.com
_____________________
1 Hotel turnover refers to whole transaction worth of room and non-room income from H World inns (i.e., leased and operated, manachised and franchised inns).
2 The conversion of Renminbi (“RMB”) into United States {dollars} (“US$”) is predicated on the trade price of US$1.00=RMB7.0999 on December 29, 2023, as set forth in H.10 statistical launch of the U.S. Federal Reserve Board and accessible at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
3 The conversion of Renminbi (“RMB”) into United States {dollars} (“US$”) is predicated on the trade price of US$1.00=RMB7.0999 on December 29, 2023, as set forth in H.10 statistical launch of the U.S. Federal Reserve Board and accessible at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
