H World Group Limited Announces Preliminary Results for Hotel Operations in the First Quarter of 2023
25 April 2023 - 8:15PM
H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“
H
World”, “
we” or “
our”),
a key player in the global hotel industry, today announced
preliminary results for hotel operations in the first quarter (“Q1
2023”) ended March 31, 2023.
Business updateFor our
Legacy-Huazhu business, our RevPAR in Q1 2023 recovered to 118% of
the 2019 level. Breaking down into monthly numbers, our RevPAR in
January, February and March 2023 recovered to 96%, 140% and 120% of
the 2019 levels, respectively. The strong recovery was primarily
due to the pent-up demand in Q1 2023, and largely driven by ADR
growth. During the quarter, a large part of our hotel closures were
carried over from last year due to the impact of COVID-19. In line
with our ‘Sustainable High Quality Growth’ strategy, we also
conducted a round of thorough review of our existing pipeline and
eliminated lower-quality pipeline hotels. This resulted in a
quarter-over-quarter decline in the number of unopened hotels in
pipeline. Our new hotel signings gained momentum quickly, reaching
over 670 new hotels during the quarter, in tandem with the market
recovery.
Steigenberger Hotels GmbH and its subsidiaries
(“DH”, or “Legacy-DH”) continued
with promising business recovery. Q1 2023 Blended RevPAR recovered
to 94% of the 2019 levels mainly driven by ADR recovery.
Operating Results:
Legacy-Huazhu(1)
|
Number of hotels |
|
Number of rooms |
|
Openedin Q1 2023 |
|
Closed
(2)in Q1
2023 |
Net addedin Q1 2023 |
As ofMarch 31, 2023 |
|
As ofMarch 31, 2023 |
|
|
|
Leased and owned hotels |
2 |
|
(5 |
) |
(3 |
) |
620 |
|
88,416 |
Manachised and franchised hotels |
260 |
|
(204 |
) |
56 |
|
7,844 |
|
705,511 |
Total |
262 |
|
(209 |
) |
53 |
|
8,464 |
|
793,927 |
(1) Legacy-Huazhu refers to H World and its
subsidiaries, excluding DH.(2) The reasons for
hotel closures mainly included non-compliance with our brand
standards, operating losses, and property-related issues. In Q1
2023, we temporarily closed 7 hotels for brand upgrade and business
model change purposes. |
|
As of March 31, 2023 |
|
Number of hotels |
|
Unopened hotels in pipeline |
|
Economy hotels |
4,880 |
|
903 |
|
Leased and owned hotels |
348 |
|
1 |
|
Manachised and franchised hotels |
4,532 |
|
902 |
|
Midscale and upscale hotels |
3,584 |
|
1,401 |
|
Leased and owned hotels |
272 |
|
12 |
|
Manachised and franchised hotels |
3,312 |
|
1,389 |
|
Total |
8,464 |
|
2,304 |
|
|
For the quarter ended |
|
|
March 31, |
December 31, |
March 31, |
yoy |
|
2022 |
2022 |
2023 |
|
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
263 |
|
279 |
|
337 |
|
28.4 |
% |
Manachised and franchised hotels |
218 |
|
236 |
|
269 |
|
23.4 |
% |
Blended |
224 |
|
240 |
|
277 |
|
23.9 |
% |
Occupancy Rate (as a percentage) |
|
|
|
Leased and owned hotels |
56.7 |
% |
63.1 |
% |
76.3 |
% |
+19.6 p.p. |
Manachised and franchised hotels |
59.6 |
% |
66.6 |
% |
75.5 |
% |
+16.0 p.p. |
Blended |
59.2 |
% |
66.2 |
% |
75.6 |
% |
+16.4 p.p. |
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
149 |
|
176 |
|
257 |
|
72.9 |
% |
Manachised and franchised hotels |
130 |
|
157 |
|
203 |
|
56.4 |
% |
Blended |
132 |
|
159 |
|
210 |
|
58.3 |
% |
|
For the quarter ended |
|
March 31, |
March 31, |
yoy |
|
2019 |
|
2023 |
|
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
258 |
|
337 |
|
30.8 |
% |
Manachised and franchised hotels |
211 |
|
269 |
|
27.4 |
% |
Blended |
221 |
|
277 |
|
25.4 |
% |
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
83.6 |
% |
76.3 |
% |
-7.3p.p. |
Manachised and franchised hotels |
79.8 |
% |
75.5 |
% |
-4.3p.p. |
Blended |
80.6 |
% |
75.6 |
% |
-5.0p.p. |
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
216 |
|
257 |
|
19.4 |
% |
Manachised and franchised hotels |
169 |
|
203 |
|
20.5 |
% |
Blended |
178 |
|
210 |
|
17.6 |
% |
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 ofMarch 31, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
endedMarch 31, |
change |
endedMarch 31, |
change |
endedMarch 31, |
change |
|
2022 |
2023 |
2022 |
2023 |
|
2022 |
2023 |
|
2022 |
|
2023 |
|
(p.p.) |
Economy hotels |
3,427 |
3,427 |
111 |
160 |
44.6 |
% |
171 |
208 |
21.3 |
% |
64.7 |
% |
77.1 |
% |
+12.4 |
Leased and owned hotels |
332 |
332 |
116 |
190 |
63.2 |
% |
188 |
241 |
28.5 |
% |
62.0 |
% |
78.7 |
% |
+16.7 |
Manachised and franchised hotels |
3,095 |
3,095 |
110 |
155 |
41.4 |
% |
168 |
202 |
19.8 |
% |
65.2 |
% |
76.9 |
% |
+11.7 |
Midscale and upscale hotels |
2,433 |
2,433 |
167 |
263 |
57.1 |
% |
292 |
344 |
18.0 |
% |
57.3 |
% |
76.3 |
% |
+19.0 |
Leased and owned hotels |
250 |
250 |
187 |
319 |
71.1 |
% |
355 |
426 |
20.2 |
% |
52.7 |
% |
75.0 |
% |
+22.3 |
Manachised and franchised hotels |
2,183 |
2,183 |
164 |
253 |
54.4 |
% |
282 |
330 |
17.3 |
% |
58.1 |
% |
76.5 |
% |
+18.4 |
Total |
5,860 |
5,860 |
138 |
210 |
51.8 |
% |
227 |
274 |
20.8 |
% |
61.1 |
% |
76.7 |
% |
+15.7 |
Operating Results:
Legacy-DH(3)
|
Number of hotels |
|
Number ofrooms |
|
Unopened hotelsin pipeline |
|
Openedin Q1 2023 |
|
Closedin Q1 2023 |
Net addedin Q1 2023 |
As ofMarch 31,
2023(4) |
|
As ofMarch 31,2023 |
|
As ofMarch 31,2023 |
|
|
Leased hotels |
1 |
|
(2 |
) |
(1 |
) |
80 |
|
15,497 |
|
25 |
Manachised and franchised hotels |
1 |
|
(4 |
) |
(3 |
) |
48 |
|
10,675 |
|
10 |
Total |
2 |
|
(6 |
) |
(4 |
) |
128 |
|
26,172 |
|
35 |
(3) Legacy-DH refers to DH.
(4) As of March 31, 2023, a total of 2 hotels were
temporarily closed. 1 hotel was closed due to flood damage, and 1
hotel was closed due to repair work. |
|
For the quarter ended |
|
|
March 31, |
December 31, |
March 31, |
yoy |
|
2022 |
|
2022 |
|
2023 |
|
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
90 |
|
114 |
|
108 |
|
19.9 |
% |
Manachised and franchised hotels |
85 |
|
134 |
|
97 |
|
13.9 |
% |
Blended |
88 |
|
122 |
|
104 |
|
17.7 |
% |
Occupancy rate (as a percentage) |
|
|
|
|
Leased hotels |
34.1 |
% |
60.0 |
% |
53.0 |
% |
+18.9 p.p. |
Manachised and franchised hotels |
44.0 |
% |
58.3 |
% |
54.1 |
% |
+10.2 p.p. |
Blended |
38.0 |
% |
59.3 |
% |
53.5 |
% |
+15.5 p.p. |
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
31 |
|
68 |
|
57 |
|
86.2 |
% |
Manachised and franchised hotels |
38 |
|
78 |
|
53 |
|
40.1 |
% |
Blended |
33 |
|
72 |
|
55 |
|
65.8 |
% |
Hotel Portfolio by Brand
|
As of March 31, 2023 |
|
Hotels |
|
Rooms |
|
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,896 |
|
387,694 |
|
916 |
HanTing Hotel |
3,285 |
|
291,489 |
|
596 |
Hi Inn |
445 |
|
23,193 |
|
129 |
Ni Hao Hotel |
184 |
|
13,553 |
|
153 |
Elan Hotel |
747 |
|
35,255 |
|
1 |
Ibis Hotel |
219 |
|
22,308 |
|
24 |
Zleep Hotels |
16 |
|
1,896 |
|
13 |
Midscale hotels |
2,956 |
|
322,093 |
|
1,103 |
Ibis Styles Hotel |
87 |
|
9,114 |
|
34 |
Starway Hotel |
563 |
|
47,691 |
|
206 |
JI Hotel |
1,758 |
|
206,410 |
|
639 |
Orange Hotel |
548 |
|
58,878 |
|
224 |
Upper midscale hotels |
590 |
|
84,317 |
|
250 |
CitiGO Hotel |
34 |
|
5,337 |
|
5 |
Crystal Orange Hotel |
164 |
|
21,239 |
|
60 |
Manxin Hotel |
114 |
|
10,903 |
|
57 |
Madison Hotel |
56 |
|
7,369 |
|
41 |
Mercure Hotel |
139 |
|
22,532 |
|
47 |
Novotel Hotel |
19 |
|
4,734 |
|
12 |
IntercityHotel(5) |
56 |
|
10,742 |
|
23 |
MAXX (6) |
8 |
|
1,461 |
|
5 |
Upscale hotels |
126 |
|
20,494 |
|
59 |
Jaz in the City |
3 |
|
587 |
|
1 |
Joya Hotel |
8 |
|
1,368 |
|
- |
Blossom House |
53 |
|
2,470 |
|
46 |
Grand Mercure Hotel |
8 |
|
1,674 |
|
4 |
Steigenberger Hotels & Resorts(7) |
54 |
|
14,395 |
|
8 |
Luxury hotels |
15 |
|
2,318 |
|
5 |
Steigenberger Icon(8) |
9 |
|
1,847 |
|
1 |
Song Hotels |
6 |
|
471 |
|
4 |
Others |
9 |
|
3,183 |
|
6 |
Other hotels(9) |
9 |
|
3,183 |
|
6 |
Total |
8,592 |
|
820,099 |
|
2,339 |
(5) As of March 31, 2023, 5 operational hotels and 10
pipeline hotels of IntercityHotel were in
China. |
(6) As of March 31, 2023, 3 operational hotels and
5 pipeline hotels of MAXX were in China. |
(7) As of March 31, 2023, 11 operational hotels
and 3 pipeline hotels of Steigenberger Hotels & Resorts were in
China. |
(8) As of March 31, 2023, 3 operational hotels of
Steigenberger Icon were in China. |
(9) Other hotels include other partner hotels and
other hotel brands in Yongle Huazhu Hotel & Resort Group
(excluding Steigenberger Hotels & Resorts and Blossom
House). |
About H World Group
LimitedOriginated in China, H World Group Limited is a key
player in the global hotel industry. As of March 31, 2023, H
World operated 8,592 hotels with 820,099 rooms in operation in 18
countries. 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. As of March 31, 2023, H World operates 13 percent of its
hotel rooms under lease and ownership model, and 87 percent under
manachise and franchise models.
For more information, please visit H World’s
website: https://ir.hworld.com.
Safe Harbor Statement Under the U.S. Private
Securities Litigation Reform Act of 1995: The information in this
release contains forward-looking statements which involve risks and
uncertainties. Such factors and risks include our anticipated
growth strategies; our future results of operations and financial
condition; economic conditions; the regulatory environment; our
ability to attract and retain customers and leverage our brands;
trends and competition in the lodging industry; the expected growth
of demand for lodging; and other factors and risks detailed in our
filings with the U.S. Securities and Exchange Commission. Any
statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements, which may be
identified by terminology such as “may,” “should,” “will,”
“expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,”
“predict,” “potential,” “forecast,” “project” or “continue,” the
negative of such terms or other comparable terminology. Readers
should not rely on forward-looking statements as predictions of
future events or results.
H World undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by
applicable law.
Contact InformationInvestor RelationsTel: +86
(21) 6195 9561Email: ir@hworld.comhttps://ir.hworld.com
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