H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World” or
the “Company”), a leading and fast-growing hotel group, today
announced that, in order to enhance shareholder value, its board of
directors (the “Board”) has approved a three-year shareholder
return plan with an aggregate amount of distributions that may be
made to the Company’s shareholders of up to US$2,000,000,000,
effective from July 23, 2024 (the “Shareholder Return Plan”). Under
the Shareholder Return Plan, the Board has the sole discretion to:
(i) declare and distribute ordinary dividends semi-annually, the
aggregate amount of which for each financial year shall be no less
than 60% of the Company’s net income in such financial year (the
“Amended Dividend Policy”), and (ii) declare and distribute, from
time to time, special dividends and/or make repurchases of American
depositary shares (“ADS”) pursuant to the Share Repurchase Program
(as defined below), considering the financial position of the
Company and otherwise in accordance with its articles of
association and Cayman Islands law. The Company has also amended
and replaced its existing ordinary dividend policy with the Amended
Dividend Policy.
As part of the Shareholder Return Plan, on the same date, the
Board declared a cash dividend (the “Cash Dividend”) for the first
half of 2024 in the aggregate amount of approximately US$200
million, of US$0.063 per ordinary share, or US$0.63 per ADS.
Holders of the Company’s ordinary shares or ADSs as of the close of
business on August 14, 2024 will be entitled to receive the Cash
Dividend. Dividends to holders of the Company’s ordinary shares are
expected to be distributed on or about August 27, 2024. Citibank,
N.A. (“Citi”), depositary bank for the Company’s ADS program,
expects to pay out dividends to ADS holders on or about September
3, 2024. Dividends to be paid to the Company’s ADS holders through
Citi will be subject to the terms of the deposit agreement by and
among the Company and Citi, and the holders and beneficial owners
of ADS issued thereunder, including the fees and expenses payable
thereunder.
Additionally, on the same date, the Board approved a five-year
share repurchase program of its ADSs with an aggregate amount of up
to US$1,000,000,000, effective from August 21, 2024, pursuant and
subject to applicable laws and the Company’s securities trading
policy (the “Share Repurchase Program”). The Share Repurchase
Program replaced the share repurchase program previously approved
and adopted on August 21, 2019 with an aggregate amount of up to
US$750,000,000. Repurchases made under the Share Repurchase Program
shall be funded from the Company’s profits, cash or share premium
account. The Company expects to effect the share repurchases
through open market transactions at prevailing market prices or in
privately negotiated transactions from time to time as market
conditions warrant and in compliance with applicable requirements
of Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange
Act of 1934, as amended, at times and in such amounts as the
Company deems appropriate. The Board will review the Share
Repurchase Program periodically, and may authorize adjustment of
its terms and size or suspend or discontinue the program.
H World remains committed to delivering sustainable shareholder
value and will continue to enhance long-term value creation.
About H World Group Limited
Originated in China, H World Group Limited is a key player in
the global hotel industry. As of March 31, 2024, H World operated
9,817 hotels with 955,657 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, 2024, H World operated 11 percent of its hotel rooms
under the lease and ownership model, and 89 percent under the
manachise and franchise model.
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
H World (NASDAQ:HTHT)
Historical Stock Chart
From Jul 2024 to Aug 2024
H World (NASDAQ:HTHT)
Historical Stock Chart
From Aug 2023 to Aug 2024