Turnover Increased
72.0% YOY
Legacy-Huazhu
Signed over 1,000
New Hotels
HONG KONG, Aug. 25, 2023 /PRNewswire/ -- H World Group
Limited ("H World" or "the Group", NASDAQ:
HTHT and HKEX: 1179) announced its unaudited financial results
in the second quarter and the first half ended June 30, 2023.
Revenue for the first half of 2023 was RMB10.0 billion (US$1.4
billion), representing an increase of 65.1% compared to the
first half of 2022. Revenue from Legacy-Huazhu was RMB7.9 billion, which represented a 67.7%
year-over-year increase. Revenue from Steigenberger Hotels GmbH and
its subsidiaries ("DH", or "Legacy-DH") was
RMB2.1 billion, representing a 55.9%
year-over-year increase.
H World's Hotel turnover increased significantly by 72.0%
year-over-year to RMB20.3 billion in
the second quarter of 2023. Excluding DH, hotel turnover raised to
78.1% year-over-year in the second quarter of 2023. Revenue
increased 63.5% year-over-year to RMB5.5
billion (US$762 million).
Revenue from the Legacy-Huazhu was RMB4.3
billion, representing a 76.6% year-over-year increase, which
was a result of the strong recovery in demand for travel, as well
as due to the continued product upgrades and operational
optimization via the Group's regional headquarters. Revenue growth
for both the Group and Legacy-Huazhu exceeded the revenue guidance
previously announced. Revenue from the DH segment was RMB1.2 billion, representing a 28.4%
year-over-year increase and a 33.5% sequential increase. The
year-over-year increase was largely due to the continued recovery
of the Group's business, and the sequential increase was mainly due
to seasonality. Net income attributable to H World was RMB1.0 billion (US$138
million), compared with net losses attributable to H World
of RMB350 million in the second
quarter of 2022. EBITDA (non-GAAP) was RMB1.7 billion (US$234
million), compared with a negative RMB213 million in the second quarter of 2022 and
RMB1.6 billion in the previous
quarter.
As of June 30, 2023, H World's
worldwide hotel network in operation totaled 8,750 hotels and
844,417 rooms, including 128 hotels from DH. Legacy-Huazhu had
8,622 hotels in operation and 818,245 hotel rooms in operation. In
the second quarter of 2023, Legacy-Huazhu celebrated a historical
high signing of over 1,000 new hotels. The ADR was RMB305, compared with RMB218 in the second quarter of 2022,
RMB277 in the previous quarter, and
RMB236 in the second quarter of 2019.
The OCC for all the Legacy-Huazhu hotels in operation was 81.8%,
representing a 17.2p.p. year-over-year increase. Blended RevPAR was
RMB250, which has recovered to 121%
of the Q2 2019 level. When broken down into monthly numbers, the
Group's RevPAR in April, May and June
2023 recovered to 127%, 115% and 123% of the 2019 levels of
the corresponding months respectively. The ADR of DH increased to
EUR117, and the OCC for all DH hotels
in operation increased by 7.3 p.p. to 67.1% year-over-year, with
blended RevPAR being EUR78.
Jin Hui, CEO of H World
commented: "The strong recovery continues to be largely driven by
ADR growth in the second quarter, which reflected a combination of
product mix change and product upgrades, as well as market
penetration and synergy via our regional offices. Continued
increases in our franchisees' confidence level led us to enjoy a
historical high of new hotels signed during the quarter. Regarding
our overseas business, our DH business recovery improved
sequentially, and EBITDA turned positive in the second
quarter."
As a leading player in the hotel industry in China and one of the fastest-growing hotel
groups in the world, H World has achieved its RevPAR growth
momentum by consistently upgrading its brands and services, helping
the Group to recover from uncertainty and maintain its rapid
growth. By focusing on economy and midscale as the core products,
serving the mass market, and implementing a strategy to further
develop the upper-midscale segment, the Group has successfully
achieved its vision of high-quality brand development. Meanwhile,
the Group also focused on digital development to empower growth, to
accomplish a higher quality, more efficient, and stable operational
model and enhance consumer stickiness. Meanwhile, H World was
ranked 6th in the "Top 200 Global Hotel Groups 2022"
list published by HOTELS Magazine in the
United States, which reflects the rapid development and
increasing comprehensive competitiveness of the Group. In the
future, the Group will continue to adhere to its sustainable and
high-quality development path and sharpen its performance to bring
long-term stable returns to shareholders.
About H World Group Limited:
Originated
in China, H World Group Limited is
a key player in the global hotel industry. H World'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, Ni Hao Hotel,
CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the
City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song
Hotels. In addition, H World 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.
H World's business includes leased and owned, manachised and
franchised models. Under the lease and ownership model, H World
directly operates hotels typically located on leased or owned
properties. Under the manachise model, H World manages manachised
hotels through the on-site hotel managers that H World appoints,
and H World collects fees from franchisees. Under the franchise
model, H World provides training, reservations and support services
to the franchised hotels, and collects fees from franchisees but
does not appoint on-site hotel managers. H World applies a
consistent standard and platform across all of its hotels.
For more information, please visit H World's website:
https://ir.hworld.com.
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