Rapid Business Recovery for the Group with Limited-service
Hotels Meeting Rigid Market Demand
SINGAPORE and SHANGHAI, Oct. 31,
2023 /PRNewswire/ -- From October
23rd to 25th, the Hotel Investment
Conference Asia Pacific ("HICAP") 2023 was successfully held in
Singapore. This conference focused
on the dynamics and future prospects of the hospitality and travel
industry in the Asia-Pacific
region, discussing topics related to emerging travel trends, new
developments in the hotel industry, and economic investment
opportunities. It provided insights into the latest market trends
and anticipated future directions for the industry. The conference
was attended by nearly a thousand industry professionals and
esteemed industry leaders. Ms He Jihong, the Chief Financial
Officer of H World Group Limited ("H World" or
"the Group"), and Mr Murphy Zhu, President of Asia Pacific, were invited to attend the
conference and delivered speeches on the Group's business and the
development of the travel industry.
He Jihong highlighted that from the opening of the first Hanting
Hotel 18 years ago, H World has become one of the fastest-growing
hotel groups in the world and is currently ranked 6th in
the world. H World has rapidly recovered from the impact of the
Covid-19. Particularly during Chinese New Year this year, the
RevPAR of Legacy-Huazhu (refers to H World's business in
China) rebounded to 140% of the
2019 level. In Q3 2023, Legacy-Huazhu's RevPAR recovered to 129% of
the 2019 level. Speaking about the Chinese economy and the tourism
industry, He Jihong emphasized a new consumer trend where
individuals of all age groups prioritize "experiential
consumption", which allows them to seek happiness through
relatively small budget. H World's portfolio consisting of over 90%
limited-service hotels, is well-suited to meet these consumer
needs. In addition, the anticipated rebound of business travel in
China further contributes to the
favorable outlook for H World's business.
Regarding customer loyalty programs, He Jihong stated that H
World has consistently embraced technological innovation. With
their in-house operational system and analytical tools, the Group
has significantly enhanced its ability to attract and retain
loyalty members. Currently, more than 80% of their bookings come
from their proprietary platform, with over 70% of them being made
by loyalty members. The Group has a membership base of over 200
million and the number is expected to increase further next year as
they work on building a robust ecosystem.
Furthermore, He Jihong emphasized that H World's management and
franchise model played a crucial role in the Group's rapid growth.
By providing a complete supply chain and assigning on-site hotel
managers to manage franchised hotels, H World ensures
consistent brand quality and revenue while simplifying operations
for franchisees, realizing the Group's rapid expansion to form a
network effect, which is expected to open more than 1,000 hotels in
the coming year.
During the "A Spotlight on East
Asia - Opportunities and Challenges" session, Murphy Zhu
also shared the recovery status of H World Group. The domestic
consumption in the service industry increased by 21% compared to
last year during the October Golden Week period, with tourism,
lodging and restaurant businesses being the key drivers. As of
September 30, 2023, H World operated
9,157 hotels with 885,756 rooms in operation in 18 countries. For
Legacy-Huazhu, the like-for-like comparison with the mature hotel
(6,500 hotels) RevPAR saw an increase of 41% compared to last year
in Q3 2023, while the blended occupancy rate reached 86%. DH
continued its promising business recovery trend and its RevPAR
recovered to 107% of the 2019 level. In Q3 2023, H World has a
pipeline of 2,970 projects. These solid pipeline results endorse
the Group's growth trends in 2024. Additionally, CJA, a subsidiary
of H World, operates more than 200 apartments with 30,000 units in
China, creating a strong synergy
between hotels and apartments with their extensive network of over
9,000 hotels. In the future, with the accelerated urbanization in
China and rapid development of
extended-stay segment, H world will be able to create added value
for owners and investors.
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