UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16
UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of March 2025
Commission File Number: 001-34656
H World Group Limited
(Registrant’s name)
No. 1299 Fenghua Road
Jiading District
Shanghai
People’s Republic of China
(86) 21 6195-2011
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F ¨
EXPLANATORY NOTE
Exhibit 99.1 (excluding the bullet points
regarding the expected revenue growth range for the first quarter of 2025 compared to the first quarter of 2024, the expected revenue
growth range for the full year of 2025 compared to the full year of 2024, and the number of hotels expected to open and close for the
full year of 2025, on page 2, and the paragraphs under the headings “Guidance” and “Conference Call”) of
this current report on Form 6-K (the “Report”) shall be incorporated by reference into the Company’s registration
statements on Form F-3, which became effective on July 17, 2024 (Registration No. 333-280844), and shall be a part thereof
from the date on which this Report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.
EXHIBIT INDEX
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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H World Group Limited |
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(Registrant) |
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| Date: March 20, 2025 |
By: |
/s/ Qi Ji |
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Name: |
Qi Ji |
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Title: |
Executive Chairman of the Board of Directors |
Exhibit 99.1
Contact Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@hworld.com
https://ir.hworld.com
H World Group Limited Reports Fourth Quarter
and Full Year of 2024
Unaudited Financial Results
| · | A
total of 11,147 hotels or 1,088,218 hotel rooms in operation as of December 31, 2024. |
| · | Hotel
turnover1 increased 16.5% year-over-year
to RMB23.7 billion in the fourth quarter of 2024 and increased 15.5% year-over-year for the
full year of 2024. Excluding Steigenberger Hotels GmbH and its subsidiaries (“DH”,
or “Legacy-DH”), hotel turnover from the Legacy-Huazhu segment increased
17.5% year-over-year in the fourth quarter of 2024 and increased 16.1% year-over-year for
the full year of 2024. Hotel turnover from the Legacy-DH segment increased 6.5% year-over-year
in the fourth quarter of 2024 and increased 9.0% year-over-year for the full year of 2024. |
| · | Revenue
increased 7.8% year-over-year to RMB6.0 billion (US$825 million)2
in the fourth quarter of 2024, surpassing the revenue guidance previously
announced of a 1% to 5% increase compared to the fourth quarter of 2023, increasing 9.2%
year-over-year to RMB23.9 billion (US$3.3 billion) for the full year of 2024. Revenue from
the Legacy-Huazhu segment in the fourth quarter of 2024 increased 9.2% year-over-year, exceeding
the revenue guidance previously announced of a 1% to 5% increase, increasing 9.1% year-over-year
for the full year of 2024. Revenue from the Legacy-DH segment in the fourth quarter of 2024
increased 2.9% year-over-year, increasing 9.6% year-over-year for the full year of 2024. |
| · | Net
income attributable to H World Group Limited was RMB49 million (US$7 million) in the fourth
quarter of 2024, compared with RMB743 million in the fourth quarter of 2023 and RMB1.3 billion
in the previous quarter. The year-over-year decline was mainly due to the foreign exchange
loss and the rise in withholding tax in the fourth quarter of 2024. Net income attributable
to H World Group Limited was RMB3.0 billion (US$418 million) for the full year of 2024, compared
with RMB4.1 billion for the full year of 2023. The year-over-year decline was mainly attributable
to the foreign exchange loss, DH’s one-off restructuring costs, as well as the rise
in withholding tax in 2024. |
| · | EBITDA
(non-GAAP) in the fourth quarter of 2024 was RMB974 million (US$134 million), compared with
RMB1.4 billion in the fourth quarter of 2023 and RMB2.0 billion in the previous quarter.
The year-over-year decline was mainly due to the foreign exchange loss in the fourth quarter
of 2024. EBITDA (non-GAAP) for the full year of 2024 was RMB6.2 billion (US$844 million),
which was negatively impacted by the foreign exchange loss and DH’s one-off restructuring
costs. compared with RMB6.8 billion for the full year of 2023. |
| 1 | Hotel turnover
refers to total transaction value of room and non-room revenue from H World hotels (i.e.,
leased and operated, manachised and franchised hotels). |
| 2 | The conversion
of Renminbi (“RMB”) into United States dollars (“US$”) is based on
the exchange rate of US$1.00=RMB7.2993 on December 31, 2024, as set forth in H.10 statistical
release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm. |
 |
| · | Adjusted
EBITDA (non-GAAP), which excluded share-based compensation expenses, gain (loss) from fair
value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on
disposal of investments from EBITDA (non-GAAP), was RMB1.2 billion (US$171 million) in the
fourth quarter of 2024, compared with RMB1.1 billion in the fourth quarter of 2023 and RMB2.1
billion in the previous quarter. Adjusted EBITDA (non-GAAP) for the full year of 2024 was
RMB6.8 billion (US$935 million), compared with RMB6.3 billion for the full year of 2023. |
| · | Adjusted
EBITDA is a segment measure. Adjusted EBITDA from the Legacy-Huazhu segment was RMB1.5 billion
in the fourth quarter of 2024, compared with RMB1.1 billion in the fourth quarter of 2023
and RMB2.1 billion in the previous quarter. Adjusted EBITDA from the Legacy-Huazhu segment
was RMB7.0 billion for the full year of 2024, compared with RMB6.2 billion for the full year
of 2023. Adjusted EBITDA from the Legacy-DH segment was a loss of RMB247 million in the fourth
quarter of 2024, compared with a loss of RMB6 million in the fourth quarter of 2023 and a
positive RMB21 million in the previous quarter. The year-over-year decline was mainly due
to the RMB417 million impairment loss in the fourth quarter of 2024. Adjusted EBITDA from
the Legacy-DH segment was a loss of RMB161 million, which included the RMB420 million impairment
loss and the RMB97 million of one-off restructuring costs, for the full year of 2024, compared
with a positive RMB68 million for the full year of 2023. |
| · | For
the second half of 2024, the board of directors of the Company (the “Board”)
declared a cash dividend in the aggregate amount of approximately US$300 million, of US$0.097
per ordinary share, or US$0.97 per American Depositary Share (the “ADS”).
For the full year of 2024, total shareholder returns reached US$767 million, including US$500
million cash dividend and US$267 million share repurchase. |
| · | As
H World is pursuing a more asset-light model, we believe the manachised and franchised business
better reflects the Company’s growth trajectory in the long-run. Therefore, in addition
to the total revenue guidance, the Company is providing revenue guidance for the manachised
and franchised business. |
| · | For
the first quarter of 2025, H World expects its revenue growth to be in the range of 0%-4%,
compared to the first quarter of 2024 or in the range of 3%-7% excluding DH. H World expects
its manachised and franchised revenue growth to be in the range of 18%-22%, compared to the
first quarter of 2024. |
| · | For
the full year of 2025, H World expects revenue growth to be in the range of 2%-6%, compared
to the full year of 2024, or in the range of 5%-9% excluding DH. H World expects its manachised
and franchised revenue growth to be in the range of 17%-21%, compared to the full year of
2024. |
| · | For
the full year of 2025, H World expects to open around 2,300 hotels and close around 600 hotels. |
Singapore/Shanghai, China, March 20, 2025
– H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, the “Company”, “we”
or “our”), a key player in the global hotel industry, today announced its unaudited financial results for the fourth
quarter and full year ended December 31, 2024.
As of December 31, 2024, H World’s
worldwide hotel network in operation totaled 11,147 hotels and 1,088,218 rooms, including 122 hotels from DH. During the fourth quarter
of 2024, our Legacy-Huazhu business opened 520 hotels, including 4 leased and owned hotels, and 516 manachised and franchised hotels,
and closed a total of 202 hotels, including 17 leased and owned hotels and 185 manachised and franchised hotels. As of December 31,
2024, H World had a total of 3,013 unopened hotels in the pipeline, including 2,988 hotels from the Legacy-Huazhu business and 25 hotels
from the Legacy-DH business.
Legacy-Huazhu
– Fourth Quarter and Full Year of 2024 Operational
Highlights
As of December 31, 2024, Legacy-Huazhu had
11,025 hotels in operation, including 557 leased and owned hotels, and 10,468 manachised and franchised hotels. In addition, as of the
same date, Legacy-Huazhu had 1,062,329 hotel rooms in operation, including 82,580 rooms under the lease and ownership model, and 979,749
rooms under the manachise and franchise models. Legacy-Huazhu also had 2,988 unopened hotels in its pipeline, including 5 leased and
owned hotels, and 2,983 manachised and franchised hotels. The following discusses Legacy-Huazhu’s revenue per available room (“RevPAR”),
average daily room rate (“ADR”) and occupancy rate for its leased and owned hotels, as well as manachised and franchised
hotels for the periods indicated.
| · | The
ADR was RMB277 in the fourth quarter of 2024, compared with RMB284 in the fourth quarter
of 2023, and RMB301 in the previous quarter. |
| · | The
occupancy rate for all the Legacy-Huazhu hotels in operation was 80.0% in the fourth quarter
of 2024, compared with 80.5% in the fourth quarter of 2023, and 84.9% in the previous quarter. |
| · | Blended
RevPAR was RMB222 in the fourth quarter of 2024, compared with RMB229 in the fourth quarter
of 2023, and RMB256 in the previous quarter. |
| · | For
all the Legacy-Huazhu hotels which had been in operation for at least 18 months, the same-hotel
RevPAR was RMB222 in the fourth quarter of 2024, a 6.7% decline from RMB238 in the fourth
quarter of 2023, due to a 4.6% decrease in same-hotel ADR and a 1.8 percentage-point contraction
in same-hotel occupancy rate. |
Legacy-DH –
Fourth Quarter and Full Year of 2024 Operational Highlights
As of December 31, 2024, Legacy-DH had 122
hotels in operation, including 76 leased hotels, and 46 manachised and franchised hotels. In addition, as of the same date, Legacy-DH
had 25,889 hotel rooms in operation, including 15,490 rooms under the lease model, and 10,399 rooms under the manachise and franchise
models. Legacy-DH also had 25 unopened hotels in the pipeline, including 12 leased hotels and 13 manachised and franchised hotels. The
following discusses Legacy-DH’s RevPAR, ADR and occupancy rate for its leased as well as manachised and franchised hotels (excluding
hotels temporarily closed) for the periods indicated.
| · | The
ADR was EUR115 in the fourth quarter of 2024, compared with EUR115 in the fourth quarter
of 2023 and EUR117 in the previous quarter. |
| · | The
occupancy rate for all Legacy-DH hotels in operation was 70.5% in the fourth quarter of 2024,
compared with 63.8% in the fourth quarter of 2023 and 69.8% in the previous quarter. |
| · | Blended
RevPAR was EUR81 in the fourth quarter of 2024, compared with EUR73 in the fourth quarter
of 2023 and EUR82 in the previous quarter. |
Jin Hui, CEO of H World commented: “In
2024, H World achieved the 10,000-hotel milestone, and continued our fast network expansion in China. In the year of 2024, Legacy-Huazhu
opened over 2,400 new hotels, far exceeding our initial target of 1,800 hotels, supported by our strong brand reputation and excellent
product quality. While Legacy-Huazhu’s full-year RevPAR declined slightly year-over-year from a high base last year, Legacy-Huazhu
maintained a high occupancy rate of 81.2%, which we believe is encouraging given the speed of our network expansion. Looking ahead, we
will continue to carry out our asset-light strategy, pursue high-quality hotel network growth, strengthen brand positioning and ‘service-excellence’,
and enhance sales capability centered around our H Reward membership program.”
“Regarding our business outside China,
our Legacy-DH business recorded a 5.9% year-over-year RevPAR increase in 2024. Looking into 2025, we will continue to enhance our hotel
operations, focus on cost reduction and efficiency improvement, and continue developing the asset light portfolio.”
Fourth Quarter and Full year of 2024 Unaudited
Financial Results
| (RMB in millions) | |
Q4
2023 | |
Q3
2024 | |
Q4
2024 | |
2023FY | |
2024FY | |
| Revenue: | |
| |
| |
| |
| |
| |
| Leased and owned hotels | |
3,453 | |
3,690 | |
3,373 | |
13,796 | |
13,843 | |
| Manachised and franchised hotels | |
2,016 | |
2,602 | |
2,499 | |
7,694 | |
9,498 | |
| Others | |
116 | |
150 | |
151 | |
392 | |
550 | |
| Total revenue | |
5,585 | |
6,442 | |
6,023 | |
21,882 | |
23,891 | |
Revenue in the fourth quarter of 2024
was RMB6.0 billion (US$825 million), representing a 7.8% year-over-year increase which exceeds the previously announced revenue guidance
of a 1% to 5% increase, and a sequential decrease of 6.5% due to seasonality effects. Revenue from the Legacy-Huazhu segment in the fourth
quarter of 2024 was RMB4.8 billion, representing a 9.2% year-over-year increase and a 7.3% sequential decline. The 9.2% year-over-year
increase exceeds the previously announced revenue guidance of a 1% to 5% increase, which was primarily supported by our fast network
expansion. Revenue from the Legacy-DH segment in the fourth quarter of 2024 was RMB1.2 billion, representing a 2.9% year-over-year increase
and a 3.4% sequential decline.
Revenue for the full year of 2024 was RMB23.9
billion (US$3.3 billion), representing an increase of 9.2% over the full year of 2023. Revenue from Legacy-Huazhu for the full year of
2024 was RMB19.0 billion, representing a 9.1% year-over-year increase. Revenue from the Legacy-DH segment for the full year of 2024 was
RMB4.9 billion, representing a 9.6% year-over-year increase.
Revenue from leased and owned hotels in
the fourth quarter of 2024 was RMB3.4 billion (US$462 million), representing a 2.3% year-over-year decrease and an 8.6% sequential decrease.
Revenue from leased and owned hotels from the Legacy-Huazhu segment in the fourth quarter of 2024 was RMB2.2 billion, representing a
4.8% year-over-year decrease. Revenue from leased and owned hotels from the Legacy-DH segment in the fourth quarter of 2024 was RMB1.2
billion, representing a 2.6% year-over-year increase.
For the full year of 2024, revenue from our leased
and owned hotels was RMB13.8 billion (US$1.9 billion), representing a 0.3% year-over-year increase. Revenue from our Legacy-Huazhu leased
and owned hotels for the full year of 2024 was RMB9.1 billion, representing a 3.9% year-over-year decrease. Revenue from our Legacy-DH
leased and owned hotels for the full year of 2024 was RMB4.7 billion, representing a 9.9% year-over-year increase.
Revenue from manachised and franchised hotels
in the fourth quarter of 2024 was RMB2.5 billion (US$342 million), representing a 24% year-over-year increase and a 4.0% sequential
decline. Revenue from our Legacy-Huazhu segment from manachised and franchised hotels in the fourth quarter of 2024 was RMB2.5 billion,
representing a 24.0% year-over-year increase. Revenue from manachised and franchised hotels from the Legacy-DH segment in the fourth
quarter of 2024 was RMB29 million, representing a 20.8% year-over-year increase.
For the full year of 2024, revenue from manachised
and franchised hotels was RMB9.5 billion (US$1.3 billion), representing a 23.4% year-over-year increase. The revenue from manachised
and franchised hotels accounted for 39.8% of the total revenue for the full year of 2024, compared to 35.2% for the full year of 2023.
Revenue from our Legacy-Huazhu manachised and franchised hotels for the full year of 2024 was RMB9.4 billion, representing a 23.6% year-over-year
increase. The revenue from manachised and franchised hotels accounted for 49.3% of Legacy-Huazhu revenue for the full year of 2024, compared
to 43.6% for the full year of 2023. Revenue from our Legacy-DH manachised and franchised hotels for the full year of 2024 was RMB113
million, representing a 15.3% year-over-year increase.
Other revenue represents revenue generated
from businesses other than our hotel operations, which mainly includes revenue from the provision of IT products and services and Huazhu
Mall™ and other revenue from the Legacy-DH segment, totaling RMB151 million (US$21 million) in the fourth quarter of 2024,
compared to RMB116 million in the fourth quarter of 2023 and RMB150 million in the previous quarter.
For the full year of 2024, other revenue was
RMB550 million (US$76 million), compared to RMB392 million for the full year of 2023.
| (RMB in millions) |
| Q4
2023 | |
| Q3
2024 | |
| Q4
2024 | |
| 2023FY | |
| 2024FY | |
| Operating costs and expenses: |
| | |
| | |
| | |
| | |
| | |
| Hotel operating costs |
| (3,996 | ) |
| (3,799 | ) |
| (4,190 | ) |
| (14,341 | ) |
| (15,285 | ) |
| Other operating costs |
| (10 | ) |
| (11 | ) |
| (5 | ) |
| (34 | ) |
| (31 | ) |
| Selling and marketing expenses |
| (326 | ) |
| (303 | ) |
| (296 | ) |
| (1,072 | ) |
| (1,176 | ) |
| General and administrative expenses |
| (644 | ) |
| (672 | ) |
| (725 | ) |
| (2,086 | ) |
| (2,508 | ) |
| Pre-opening expenses |
| (3 | ) |
| (19 | ) |
| (4 | ) |
| (35 | ) |
| (50 | ) |
| Total operating costs and expenses |
| (4,979 | ) |
| (4,804 | ) |
| (5,220 | ) |
| (17,568 | ) |
| (19,050 | ) |
Hotel operating costs in
the fourth quarter of 2024 were RMB4.2 billion (US$574 million), compared to RMB4.0 billion in the fourth quarter of 2023 and RMB3.8
billion in the previous quarter. The year-over-year increase was mainly due to rising personnel costs as our hotel network continues
to expand. As the Company continues to transform into a more asset-light manachised and franchised model, hotel operating costs from
the Legacy-Huazhu segment in the fourth quarter of 2024 were RMB2.8 billion, which represented 58.1% of revenue, compared to RMB2.9 billion
or 67.0% of revenue in the fourth quarter of 2023 and RMB2.8 billion or 54.3% of revenue for the previous quarter. Hotel operating costs
from the Legacy-DH segment in the fourth quarter of 2024 were RMB1.4 billion, which represented 113.9% of revenue, compared to RMB1.1
billion or 88.2% of revenue in the fourth quarter of 2023 and RMB996 million or 77.8% of revenue for the previous quarter. The higher
hotel operating costs from Legacy-DH were primarily due to the RMB417 million impairment loss recognized in the fourth quarter of 2024.
For the
full year of 2024, hotel operating costs were RMB15.3 billion (US$2.1 billion), compared to RMB14.3 billion for the full year of 2023.
Hotel operating costs from Legacy-Huazhu for the full year of 2024 were RMB10.9 billion, which represented 57.5% of revenue, compared
to 60.4% for the full year of 2023. Hotel operating costs from Legacy-DH for the full year of 2024 were RMB4.3 billion, which represented
89.3% of revenue, compared to 85.6% for the full year of 2023.
Selling and marketing expenses in
the fourth quarter of 2024 were RMB296 million (US$40 million), compared to RMB326 million in the fourth quarter of 2023 and RMB303 million
in the previous quarter. Selling and marketing expenses from the Legacy-Huazhu segment in the fourth quarter of 2024 were RMB192 million,
which represented 4.0% of revenue, compared to RMB202 million or 4.6% of revenue in the fourth quarter of 2023, and RMB186 million or
3.6% of revenue in the previous quarter. Selling and marketing expenses from the Legacy-DH segment in the fourth quarter of 2024 were
RMB104 million, which represented 8.4% of revenue, compared to RMB124 million or 10.3% of DH revenue in the fourth quarter of 2023, and
RMB117 million or 9.1% for the previous quarter.
For the full year of 2024, selling and marketing
expenses were RMB1.2 billion (US$161 million), compared to RMB1.1 billion for the full year of
2023. Selling and marketing expenses from Legacy-Huazhu for the full year of 2024 were RMB730 million, which represented 3.8% of revenue,
compared to RMB649 million or 3.7% of revenue for the full year of 2023. Selling and marketing expenses from Legacy-DH for the
full year of 2024 were RMB446 million or 9.2% of DH revenue, compared to RMB423 million or 9.5% of DH revenue for the full year of 2023.
General and administrative expenses in
the fourth quarter of 2024 were RMB725 million (US$99 million), compared to RMB644 million in the fourth quarter of 2023 and RMB672 million
in the previous quarter. The year-over-year expense increase was mainly due to rising headcount as well as an increase in share-based
compensation to attract and retain core employees who are key to our sustainable long-term business growth.
General and administrative expenses from the Legacy-Huazhu segment in the fourth quarter of 2024 were RMB586 million, which represented
12.2% of revenue, compared to RMB484 million or 11.0% in the fourth quarter of 2023 and RMB457 million or 8.9% for the previous quarter.
General and administrative expenses from the Legacy-DH segment in the fourth quarter of 2024 were RMB139 million, which represented 11.2%
of DH revenue, compared to RMB160 million or 13.3% of DH revenue in the fourth quarter of 2023 and RMB215 million or 16.8% in the previous
quarter.
For the full year of 2024, general and administrative
expenses were RMB2.5 billion (US$344 million), compared to RMB2.1 billion for the full year of
2023. General and administrative expenses from Legacy-Huazhu for the full year of 2024 were RMB1.9 billion, which represented 10.1% of
revenue, compared to RMB1.6 billion or 9.0% of revenue for the full year of 2023. General and administrative expenses from Legacy-DH
for the full year of 2024 were RMB587 million, which represented 12.1% of DH revenue, compared to RMB521 million or 11.7% of DH revenue
for the full year of 2023.
Pre-opening expenses in
the fourth quarter of 2024 were primarily related to the Legacy-Huazhu segment and totaled RMB4 million (US$1 million), compared to RMB3
million in the fourth quarter of 2023 and RMB19 million in the previous quarter.
Pre-opening expenses for the full year of 2024
were RMB50 million (US$7 million), compared to RMB35 million for the full year of 2023.
Pre-opening expenses from Legacy-Huazhu as a percentage of revenue were 0.3% for the full year of 2024, compared to 0.2% for the full
year of 2023.
Other operating income, net in
the fourth quarter of 2024 was RMB99 million (US$13 million), compared to RMB155 million in the fourth quarter of 2023 and RMB85 million
in the previous quarter.
Other operating income, net for the full year
of 2024 was RMB359 million (US$49 million), compared to RMB404 million for the full year of 2023.
Income from operations in
the fourth quarter of 2024 was RMB902 million (US$123 million), compared to RMB757 million in the fourth quarter of 2023 and RMB1.7 billion
in the previous quarter. Income from operations from the Legacy-Huazhu segment in the fourth quarter of 2024 was RMB1.2 billion, compared
to RMB821 million in the fourth quarter of 2023 and RMB1.8 billion in the previous quarter. The Legacy-DH segment had a loss from operations
of RMB311 million in the fourth quarter of 2024, compared to a loss from operations of RMB64 million in the fourth quarter of 2023 and
a loss of RMB40 million in the previous quarter. The widened operating loss from Legacy-DH was due primarily to the RMB417 million impairment
loss recognized in the fourth quarter of 2024.
Income from operations for the full year of 2024
was RMB5.2 billion (US$713 million), compared to RMB4.7 billion for the full year of 2023. Income
from operations from Legacy-Huazhu for the full year of 2024 was RMB5.6 billion, compared to RMB4.9 billion for the full year of 2023.
Loss from operations from Legacy-DH for the full year of 2024 were RMB406 million, compared to
loss of RMB185 million for the full year of 2023.
Operating margin,
defined as income from operations as a percentage of revenue, was 15.0% in the fourth quarter of 2024, compared with 13.6% in the fourth
quarter of 2023 and 26.7% for the previous quarter. Operating margin from the Legacy-Huazhu segment in the fourth quarter of 2024 was
25.3%, compared with 18.7% in the fourth quarter of 2023 and 34.2% in the previous quarter. Operating margin from the Legacy-DH segment
in the fourth quarter of 2024 was a negative 25.2%, compared with a negative 5.3% in the fourth quarter of 2023 and a negative 3.1% in
the previous quarter. The margin contraction of Legacy-DH was primarily due to the impairment loss recognized in the fourth quarter of
2024.
Operating
margin for the full year of 2024 was 21.8%, compared with 21.5% for the full year of 2023. Operating margin from Legacy-Huazhu for the
full year of 2024 was 29.5%, compared with 28.1% for the full year of 2023. Operating margin from Legacy-DH for the full year of 2024
was a negative 8.3%, compared with a negative 4.2% for the full year of 2023.
Other income, net in the fourth quarter
of 2024 was an expense of RMB14 million (US$2 million), compared to an income of RMB2 million in the fourth quarter of 2023 and an income
of RMB1 million for the previous quarter.
Other income, net for the full year of 2024 was
RMB51 million (US$7 million), compared to RMB573 million which was associated with gains from selling Accor shares for the full year
of 2023.
Gains (losses) from fair value changes of
equity securities in the fourth quarter of 2024 were losses of RMB19 million (US$3 million), compared to gains of RMB124 million
in the fourth quarter of 2023, and losses of RMB34 million in the previous quarter. Gains (losses) from fair value changes of equity
securities mainly represent the gains (losses) from our investments in equity securities with readily determinable fair values.
For the full year of 2024, losses from fair value
changes of equity securities were RMB66 million (US$9 million), compared to gains of RMB109 million for the full year of 2023. The gains
in 2023 were mainly from an increase in the value of UBOX holdings by the Company.
Income tax expense in the fourth quarter
of 2024 was RMB578 million (US$79 million), compared to RMB281 million in the fourth quarter of 2023 and RMB382 million in the previous
quarter. The higher income tax expense in the quarter was due to withholding tax related to dividend distributions.
For the full year of 2024, income tax expense
was RMB1.7 billion (US$228 million), compared to RMB1.2 billion for the full year of 2023.
Net income attributable to H World Group Limited
in the fourth quarter of 2024 was RMB49 million (US$7 million), compared to RMB743 million in the fourth quarter of 2023 and RMB1.3
billion in the previous quarter. Net income attributable to H World Group Limited from the Legacy-Huazhu segment was RMB358 million in
the fourth quarter of 2024, compared to RMB827 million in the fourth quarter of 2023 and RMB1.4 billion in the previous quarter. Net
loss attributable to H World Group Limited from the Legacy-DH segment was RMB309 million in the fourth quarter of 2024, compared to RMB84
million in the fourth quarter of 2023 and RMB83 million in the previous quarter. The widened net loss of Legacy-DH was due mainly to
the impairment loss.
Net income attributable to H World Group Limited
for the full year of 2024 was RMB3.0 billion (US$418 million), compared to RMB4.1 billion for the full year of 2023. Net income attributable
to H World Group Limited from Legacy-Huazhu for the full year of 2024 was RMB3.6 billion, compared to RMB4.4 billion for the full year
of 2023. The year-over-year decrease in net income attributable to H World Group Limited from the Legacy-Huazhu segment was due primarily
to the foreign exchange loss and the rise in withholding tax related to dividend distributions. Net
loss attributable to H World Group Limited from Legacy-DH for the full year of 2024 was RMB532 million, compared to a net loss of RMB265
million for the full year of 2023.
| |
EBITDA (non-GAAP) in the fourth quarter
of 2024 was RMB974 million (US$134 million), compared with RMB1.4 billion in the fourth quarter of 2023 and RMB2.0 billion in the previous
quarter. Adjusted EBITDA (non-GAAP), which excluded the following from EBITDA (non-GAAP): share-based compensation expenses, gain (loss)
from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments, was RMB1.2
billion (US$171 million) in the fourth quarter of 2024, compared with RMB1.1 billion in the fourth quarter of 2023 and RMB2.1 billion
in the previous quarter. Adjusted EBITDA from the Legacy-Huazhu segment, which is a segment measure, was RMB1.5 billion in the fourth
quarter of 2024, compared with RMB1.1 billion in the fourth quarter of 2023 and RMB2.1 billion in the previous quarter. Adjusted EBITDA
from the Legacy-DH segment, which is a segment measure, was a loss of RMB247 million in the fourth quarter of 2024, compared with a loss
of RMB6 million in the fourth quarter of 2023 and a positive RMB21 million in the previous quarter. The year-over-year decline was mainly
due to the RMB417 million impairment loss in the fourth quarter of 2024.
EBITDA (non-GAAP) for the full year of 2024 was
RMB6.2 billion (US$844 million), compared to RMB6.8 billion for the full year of 2023. Excluding share-based compensation expenses, gains
(losses) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments,
adjusted EBITDA (non-GAAP) for the full year of 2024 was RMB6.8 billion (US$935 million), compared with RMB6.3 billion for the full year
of 2023. The adjusted EBITDA from Legacy-Huazhu for the full year of 2024 was RMB7.0 billion, compared with RMB6.2 billion for the full
year of 2023. The adjusted EBITDA from Legacy-DH for the full year of 2024 was a loss of RMB161 million, which included the RMB420
million impairment loss and the RMB97 million of one-off restructuring costs, compared with a positive
RMB68 million for the full year of 2023.
Cash flow. Operating cash inflow in the
fourth quarter of 2024 was RMB2.7 billion (US$371 million). Investing cash outflow in the fourth quarter of 2024 was RMB3.1 billion (US$424
million) due to the purchase of time deposits and financial products. Financing
cash outflow in the fourth quarter of 2024 was RMB37 million (US$6 million).
Operating cash inflow for the full year of 2024
was RMB7.5 billion (US$1.0 billion), compared to RMB7.7 billion for the full year of 2023. Investing cash outflow for the full year of
2024 was RMB2.2 billion (US$307 million), compared to RMB1.5 billion for the full year of 2023. Financing cash outflow for the full year
of 2024 was RMB5.5 billion (US$754 million), compared to RMB3.7 billion for the full year of 2023.
Cash, cash equivalents and restricted cash.
As of December 31, 2024, the Company had a total balance of cash and cash equivalents
of RMB7.5 billion (US$1.0 billion) and restricted cash of RMB50 million (US$7 million).
Debt financing. As
of December 31, 2024, the Company had a total debt and net cash balance of RMB5.4 billion (US$743 million) and RMB2.1 billion (US$288
million), respectively; the unutilized credit facility available to the Company was RMB3.3 billion.
Cash Dividend
The Board has approved the declaration and payment
of an ordinary cash dividend (the “Cash Dividend”), for the second half of 2024 in the aggregate amount of approximately
US$300 million, of US$0.097 per ordinary share, or US$0.97 per ADS. Holders of the Company’s ordinary shares or ADSs as of the
close of business on April 9, 2025 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 April 23, 2025. Citibank, N.A. (“Citi”), depositary bank for the Company’s
ADS program, expects to pay out dividends to ADS holders on or about April 30, 2025. 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 ADSs issued thereunder, including the fees and expenses payable thereunder.
Shareholder Return
In July 2024, H World announced a three-year
shareholder return plan with an aggregate amount of up to US$2 billion (the “Shareholder Return Plan”). For the full year
of 2024, the Board has declared cash dividends in an aggregate amount of approximately US$500 million and the Company had made on-market
share repurchases of approximately US$267 million. Accordingly, such cash dividends and share repurchases totaled to approximately US$767
million, representing over one-third of the Shareholder Return Plan, and over 80% of the free cash flow generated by the Company in the
year of 2024.
Guidance
As H World is pursuing a more asset-light model,
we believe the manachised and franchised business better reflects the Company’s growth trajectory in the long-run. Therefore, in
addition to the total revenue guidance, the Company is providing revenue guidance for the manachised and franchised business.
For the first quarter of 2025, H World expects
its revenue growth to be in the range of 0%-4%, compared to the first quarter of 2024 or in the range of 3%-7% excluding DH. H World
expects its manachised and franchised revenue growth to be in the range of 18%-22%, compared to the first quarter of 2024.
For the full year of 2025, H World expects revenue
growth to be in the range of 2%-6%, compared to the full year of 2024, or in the range of 5%-9% excluding DH. H World expects its manachised
and franchised revenue growth to be in the range of 17%-21%, compared to the full year of 2024.
For the full year of 2025, H World expects to
open around 2,300 hotels and close around 600 hotels.
The above forecast reflects the Company’s
current and preliminary view, which is subject to change.
Conference Call
H World’s management will host a conference
call at 8 a.m. U.S. Eastern time on Thursday, March 20, 2025 (8 p.m. Hong Kong time on Thursday, March 20, 2025)
following the announcement.
To join by phone, all participants must pre-register
this conference call using the Participant Registration link of https://register-conf.media-server.com/register/BI303638c962504ffcb81bb09e374f8485.
Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode
and a unique access PIN.
A live webcast of the call can be accessed at
https://edge.media-server.com/mmc/p/z7bi4fve or the Company’s website at https://ir.hworld.com/news-and-events/events-calendar.
A replay of the conference call will be available
for twelve months from the date of the conference at the Company’s website, https://ir.hworld.com/news-and-events/events-calendar.
Use of Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated
financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company
uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission (“SEC”):
adjusted net income (loss) attributable to H World Group Limited excluding share-based compensation expenses, gain (loss) from fair value
changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments; adjusted basic and diluted
earnings (losses) per share/ADS excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities,
foreign exchange gain (loss), net, and gain (loss) on disposal of investments; EBITDA; adjusted EBITDA excluding share-based compensation
expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of
investments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures,
please see the table captioned “Unaudited Reconciliations of GAAP and non-GAAP Results” set forth at the end of this release.
The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding Company performance
by excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities,
foreign exchange gain (loss), net, and gain (loss) on disposal of investments that may not be indicative of Company operating
performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing
Company performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s
internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful
to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial
and operational decision-making. A limitation of using non-GAAP financial measures excluding share-based
compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on
disposal of investments is that share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign
exchange gain (loss), net, and gain (loss) on disposal of investments have been and may continue to be significant and recurring in the
Company’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts
excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures
that are most directly comparable to non-GAAP financial measures.
| |
The Company believes that EBITDA is a useful
financial metric to assess the operating and financial performance before the impact of investing and financing transactions and income
taxes, given the significant investments that the Company has made in leasehold improvements, depreciation and amortization expense that
comprise a significant portion of the Company’s cost structure. In addition, the Company believes that EBITDA is widely used by
other companies in the lodging industry and may be used by investors as a measure of financial performance. The Company believes that
EBITDA information provides investors with a useful tool for comparability between periods because it excludes depreciation and amortization
expense attributable to capital expenditures. The Company also uses adjusted EBITDA to assess operating results of its hotels in operation.
The Company believes that the exclusion of share-based compensation expenses, gain (loss) from fair value changes of equity securities,
foreign exchange gain (loss), net, and gain (loss) on disposal of investments helps facilitate year-over-year comparisons of the results
of operations as the share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain
(loss), net, and gain (loss) on disposal of investments may not be indicative of Company operating performance.
Therefore, the Company believes adjusted EBITDA
more closely reflects the financial performance capability of our hotels. The presentation of EBITDA and adjusted EBITDA should not be
construed as an indication that the Company’s future results will be unaffected by other charges and gains considered to be outside
the ordinary course of business.
The use of EBITDA and adjusted EBITDA has certain
limitations. Depreciation and amortization expense for various long-term assets (including land use rights), income tax, interest expense
and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Share-based compensation expenses,
gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments
have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered
in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of depreciation
and amortization, interest income, interest expense, income tax expense, share-based compensation expenses, gain (loss) from fair value
changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments all in the reconciliations
to the U.S. GAAP financial measures and in the consolidated financial statements, all of which should be considered when evaluating the
performance of the Company.
The terms EBITDA and adjusted EBITDA are not
defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is a measure of net income, operating income, operating performance or
liquidity presented in accordance with U.S. GAAP. When assessing the operating and financial performance, investors should not consider
these data in isolation or as a substitute for the Company’s net income, operating income or any other operating performance measure
that is calculated in accordance with U.S. GAAP. In addition, the Company’s EBITDA or adjusted EBITDA may not be comparable to
EBITDA or adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA
or adjusted EBITDA in the same manner as the Company does.
Reconciliations of the Company’s non-GAAP
financial measures, including EBITDA and adjusted EBITDA, to the consolidated statement of operations information are included at the
end of this press release.
About H World Group Limited
Originated in China, H World Group Limited is
a key player in the global hotel industry. As of December 31, 2024, H World operated 11,147 hotels with 1,088,218 rooms in operation
in 19 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 December 31, 2024, H World operated 9 percent of its hotel rooms under the lease and
ownership model, and 91 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.
—Financial Tables and Operational Data Follow—
H
World Group Limited
Unaudited
Condensed Consolidated Balance Sheets
| | |
December 31,
2023 | |
December 31,
2024 | |
| | |
RMB | |
RMB | |
US$3 | |
| | |
(in millions) | |
| ASSETS | |
| |
| |
| |
| Current assets: | |
| |
| |
| |
| Cash
and cash equivalents | |
6,946 | |
7,474 | |
1,024 | |
| Restricted
cash | |
764 | |
50 | |
7 | |
| Short-term
investments | |
2,189 | |
3,603 | |
494 | |
| Accounts
receivable, net | |
755 | |
817 | |
112 | |
| Loan
receivables - current, net | |
184 | |
114 | |
16 | |
| Amounts
due from related parties, current | |
210 | |
297 | |
41 | |
| Inventories | |
59 | |
60 | |
8 | |
| Other
current assets, net | |
949 | |
800 | |
108 | |
| Total current assets | |
12,056 | |
13,215 | |
1,810 | |
| | |
| |
| |
| |
| Property and equipment, net | |
6,097 | |
5,682 | |
778 | |
| Intangible assets, net | |
5,280 | |
4,776 | |
654 | |
| Operating lease right-of-use
assets | |
25,658 | |
24,992 | |
3,424 | |
| Finance lease right-of-use
assets | |
2,171 | |
2,272 | |
311 | |
| Land use rights, net | |
181 | |
174 | |
24 | |
| Long-term investments | |
2,564 | |
2,316 | |
317 | |
| Goodwill | |
5,318 | |
5,221 | |
715 | |
| Amounts due from related parties,
non-current | |
25 | |
51 | |
7 | |
| Loan receivables, net | |
163 | |
190 | |
26 | |
| Other assets, net | |
663 | |
668 | |
94 | |
| Deferred tax assets | |
1,043 | |
1,054 | |
144 | |
| Assets
held for sale | |
2,313 | |
1,941 | |
266 | |
| Total
assets | |
63,532 | |
62,552 | |
8,570 | |
| | |
| |
| |
| |
| LIABILITIES AND EQUITY | |
| |
| |
| |
| Current liabilities: | |
| |
| |
| |
| Short-term
debt | |
4,049 | |
880 | |
120 | |
| Accounts
payable | |
1,019 | |
983 | |
135 | |
| Amounts
due to related parties | |
77 | |
74 | |
10 | |
| Salary
and welfare payables | |
1,067 | |
1,201 | |
165 | |
| Deferred
revenue | |
1,637 | |
1,822 | |
250 | |
| Operating
lease liabilities, current | |
3,609 | |
3,492 | |
478 | |
| Finance
lease liabilities, current | |
45 | |
50 | |
7 | |
| Accrued
expenses and other current liabilities | |
3,261 | |
4,006 | |
549 | |
| Dividends
payable | |
2,085 | |
0 | |
0 | |
| Income
tax payable | |
562 | |
813 | |
111 | |
| Total current liabilities | |
17,411 | |
13,321 | |
1,825 | |
| | |
| |
| |
| |
| Long-term debt | |
1,265 | |
4,546 | |
623 | |
| Operating lease liabilities,
non-current | |
24,215 | |
23,634 | |
3,238 | |
| Finance lease liabilities, non-current | |
2,697 | |
2,843 | |
390 | |
| Deferred revenue | |
1,072 | |
1,351 | |
185 | |
| Other long-term liabilities | |
1,118 | |
1,472 | |
201 | |
| Deferred tax liabilities | |
845 | |
919 | |
126 | |
| Retirement benefit obligations | |
124 | |
111 | |
15 | |
| Liabilities
held for sale | |
2,536 | |
2,084 | |
286 | |
| Total liabilities | |
51,283 | |
50,281 | |
6,889 | |
| | |
| |
| |
| |
| Equity: | |
| |
| |
| |
| Ordinary shares | |
0 | |
0 | |
0 | |
| Treasury shares | |
(906 | ) |
(274 | ) |
(38 | ) |
| Additional
paid-in capital | |
11,861 | |
9,620 | |
1,318 | |
| Retained
earnings | |
794 | |
2,449 | |
336 | |
| Accumulated
other comprehensive income | |
386 | |
382 | |
52 | |
| Total H World Group Limited shareholders'
equity | |
12,135 | |
12,177 | |
1,668 | |
| Noncontrolling
interest | |
114 | |
94 | |
13 | |
| Total equity | |
12,249 | |
12,271 | |
1,681 | |
| Total
liabilities and equity | |
63,532 | |
62,552 | |
8,570 | |
3 The conversion of Renminbi (“RMB”)
into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB7.2993 on December 31, 2024, as set
forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
H
World Group Limited
Unaudited
Condensed Consolidated Statements of Comprehensive Income
| | |
Quarter
Ended | | |
Year
Ended | |
| | |
December
31, 2023 | | |
September 30, 2024 | | |
December 31,
2024 | | |
December 31,
2023 | | |
December 31,
2024 | |
| | |
RMB | | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| | |
(in millions,
except shares, per share and per ADS data) | |
| Revenue: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Leased
and owned hotels | |
| 3,453 | | |
| 3,690 | | |
| 3,373 | | |
| 462 | | |
| 13,796 | | |
| 13,843 | | |
| 1,897 | |
| Manachised
and franchised hotels | |
| 2,016 | | |
| 2,602 | | |
| 2,499 | | |
| 342 | | |
| 7,694 | | |
| 9,498 | | |
| 1,301 | |
| Others | |
| 116 | | |
| 150 | | |
| 151 | | |
| 21 | | |
| 392 | | |
| 550 | | |
| 76 | |
| Total revenue | |
| 5,585 | | |
| 6,442 | | |
| 6,023 | | |
| 825 | | |
| 21,882 | | |
| 23,891 | | |
| 3,274 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating costs and expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Hotel
operating costs: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Rents | |
| (1,033 | ) | |
| (1,088 | ) | |
| (1,100 | ) | |
| (151 | ) | |
| (4,290 | ) | |
| (4,365 | ) | |
| (598 | ) |
| Utilities | |
| (160 | ) | |
| (194 | ) | |
| (155 | ) | |
| (21 | ) | |
| (685 | ) | |
| (690 | ) | |
| (94 | ) |
| Personnel
costs | |
| (1,331 | ) | |
| (1,371 | ) | |
| (1,393 | ) | |
| (191 | ) | |
| (4,684 | ) | |
| (5,326 | ) | |
| (730 | ) |
| Depreciation
and amortization | |
| (320 | ) | |
| (315 | ) | |
| (305 | ) | |
| (42 | ) | |
| (1,329 | ) | |
| (1,254 | ) | |
| (172 | ) |
| Consumables,
food and beverage | |
| (361 | ) | |
| (337 | ) | |
| (336 | ) | |
| (46 | ) | |
| (1,327 | ) | |
| (1,293 | ) | |
| (177 | ) |
| Others | |
| (791 | ) | |
| (494 | ) | |
| (901 | ) | |
| (123 | ) | |
| (2,026 | ) | |
| (2,357 | ) | |
| (323 | ) |
| Total
hotel operating costs | |
| (3,996 | ) | |
| (3,799 | ) | |
| (4,190 | ) | |
| (574 | ) | |
| (14,341 | ) | |
| (15,285 | ) | |
| (2,094 | ) |
| Other
operating costs | |
| (10 | ) | |
| (11 | ) | |
| (5 | ) | |
| (1 | ) | |
| (34 | ) | |
| (31 | ) | |
| (4 | ) |
| Selling
and marketing expenses | |
| (326 | ) | |
| (303 | ) | |
| (296 | ) | |
| (40 | ) | |
| (1,072 | ) | |
| (1,176 | ) | |
| (161 | ) |
| General
and administrative expenses | |
| (644 | ) | |
| (672 | ) | |
| (725 | ) | |
| (99 | ) | |
| (2,086 | ) | |
| (2,508 | ) | |
| (344 | ) |
| Pre-opening
expenses | |
| (3 | ) | |
| (19 | ) | |
| (4 | ) | |
| (1 | ) | |
| (35 | ) | |
| (50 | ) | |
| (7 | ) |
| Total operating
costs and expenses | |
| (4,979 | ) | |
| (4,804 | ) | |
| (5,220 | ) | |
| (715 | ) | |
| (17,568 | ) | |
| (19,050 | ) | |
| (2,610 | ) |
| Goodwill
impairment loss | |
| (4 | ) | |
| - | | |
| - | | |
| - | | |
| (4 | ) | |
| - | | |
| - | |
| Other
operating income (expense), net | |
| 155 | | |
| 85 | | |
| 99 | | |
| 13 | | |
| 404 | | |
| 359 | | |
| 49 | |
| Income (loss) from operations | |
| 757 | | |
| 1,723 | | |
| 902 | | |
| 123 | | |
| 4,714 | | |
| 5,200 | | |
| 713 | |
| Interest income | |
| 85 | | |
| 50 | | |
| 53 | | |
| 7 | | |
| 248 | | |
| 210 | | |
| 29 | |
| Interest expense | |
| (76 | ) | |
| (77 | ) | |
| (74 | ) | |
| (10 | ) | |
| (385 | ) | |
| (318 | ) | |
| (44 | ) |
| Other income (expense), net | |
| 2 | | |
| 1 | | |
| (14 | ) | |
| (2 | ) | |
| 573 | | |
| 51 | | |
| 7 | |
| Gains (losses) from fair value
changes of equity securities | |
| 124 | | |
| (34 | ) | |
| (19 | ) | |
| (3 | ) | |
| 109 | | |
| (66 | ) | |
| (9 | ) |
| Foreign
exchange gains (losses) | |
| 140 | | |
| (1 | ) | |
| (155 | ) | |
| (21 | ) | |
| 90 | | |
| (272 | ) | |
| (37 | ) |
| Income (loss) before income taxes | |
| 1,032 | | |
| 1,662 | | |
| 693 | | |
| 94 | | |
| 5,349 | | |
| 4,805 | | |
| 659 | |
| Income tax (expense) benefit | |
| (281 | ) | |
| (382 | ) | |
| (578 | ) | |
| (79 | ) | |
| (1,204 | ) | |
| (1,662 | ) | |
| (228 | ) |
| Income (Loss)
from equity method investments | |
| (8 | ) | |
| 12 | | |
| (54 | ) | |
| (7 | ) | |
| (14 | ) | |
| (41 | ) | |
| (6 | ) |
| Net income (loss) | |
| 743 | | |
| 1,292 | | |
| 61 | | |
| 8 | | |
| 4,131 | | |
| 3,102 | | |
| 425 | |
| Net (income)
loss attributable to noncontrolling interest | |
| (0 | ) | |
| (19 | ) | |
| (12 | ) | |
| (1 | ) | |
| (46 | ) | |
| (54 | ) | |
| (7 | ) |
| Net income
(loss) attributable to H World Group Limited | |
| 743 | | |
| 1,273 | | |
| 49 | | |
| 7 | | |
| 4,085 | | |
| 3,048 | | |
| 418 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gains (losses) arising from defined
benefit plan, net of tax | |
| (9 | ) | |
| - | | |
| 6 | | |
| 1 | | |
| (9 | ) | |
| 6 | | |
| 1 | |
| Gains (losses) from fair value
changes of debt securities, net of tax | |
| (31 | ) | |
| - | | |
| (13 | ) | |
| (2 | ) | |
| (12 | ) | |
| (38 | ) | |
| (5 | ) |
| Foreign
currency translation adjustments, net of tax | |
| (23 | ) | |
| 128 | | |
| (70 | ) | |
| (10 | ) | |
| 175 | | |
| 28 | | |
| 4 | |
| Comprehensive income (loss) | |
| 680 | | |
| 1,420 | | |
| (16 | ) | |
| (3 | ) | |
| 4,285 | | |
| 3,098 | | |
| 425 | |
| Comprehensive
(income) loss attributable to noncontrolling interest | |
| (0 | ) | |
| (19 | ) | |
| (12 | ) | |
| (1 | ) | |
| (46 | ) | |
| (54 | ) | |
| (7 | ) |
| Comprehensive
income (loss) attributable to H World Group Limited | |
| 680 | | |
| 1,401 | | |
| (28 | ) | |
| (4 | ) | |
| 4,239 | | |
| 3,044 | | |
| 418 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Earnings (Losses) per share: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 0.23 | | |
| 0.41 | | |
| 0.02 | | |
| 0.00 | | |
| 1.28 | | |
| 0.98 | | |
| 0.13 | |
| Diluted | |
| 0.23 | | |
| 0.40 | | |
| 0.02 | | |
| 0.00 | | |
| 1.25 | | |
| 0.96 | | |
| 0.13 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Earnings (Losses) per ADS: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 2.33 | | |
| 4.10 | | |
| 0.16 | | |
| 0.02 | | |
| 12.83 | | |
| 9.78 | | |
| 1.34 | |
| Diluted | |
| 2.31 | | |
| 3.99 | | |
| 0.16 | | |
| 0.02 | | |
| 12.55 | | |
| 9.64 | | |
| 1.32 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of shares
used in computation: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 3,182,802,226 | | |
| 3,102,868,424 | | |
| 3,080,973,793 | | |
| 3,080,973,793 | | |
| 3,183,163,131 | | |
| 3,115,130,107 | | |
| 3,115,130,107 | |
| Diluted | |
| 3,217,737,686 | | |
| 3,257,589,866 | | |
| 3,123,364,616 | | |
| 3,123,364,616 | | |
| 3,351,421,211 | | |
| 3,278,308,290 | | |
| 3,278,308,290 | |
H World Group Limited
Unaudited
Condensed Consolidated Statements of Cash Flows
| | |
Quarter
Ended | | |
Year
Ended | |
| | |
December
31, 2023 | | |
September
30, 2024 | | |
December 31,
2024 | | |
December 31,
2023 | | |
December 31,
2024 | |
| | |
RMB | | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| | |
(in millions) | |
| Operating activities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net
income (loss) | |
| 743 | | |
| 1,292 | | |
| 61 | | |
| 8 | | |
| 4,131 | | |
| 3,102 | | |
| 425 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Share-based
compensation | |
| 38 | | |
| 79 | | |
| 73 | | |
| 10 | | |
| 143 | | |
| 322 | | |
| 44 | |
| Depreciation and amortization, and
other | |
| 346 | | |
| 329 | | |
| 326 | | |
| 45 | | |
| 1,448 | | |
| 1,337 | | |
| 183 | |
| Impairment
loss | |
| 430 | | |
| 32 | | |
| 469 | | |
| 64 | | |
| 516 | | |
| 537 | | |
| 74 | |
| Loss (income)
from equity method investments, net of dividends | |
| 8 | | |
| (9 | ) | |
| 65 | | |
| 9 | | |
| 72 | | |
| 97 | | |
| 13 | |
| Investment
(income) loss and foreign exchange (gain) loss | |
| (452 | ) | |
| (15 | ) | |
| 195 | | |
| 27 | | |
| (925 | ) | |
| 250 | | |
| 34 | |
| Changes
in operating assets and liabilities | |
| 1,359 | | |
| 43 | | |
| 1,323 | | |
| 182 | | |
| 2,508 | | |
| 1,886 | | |
| 259 | |
| Other | |
| (61 | ) | |
| (58 | ) | |
| 192 | | |
| 26 | | |
| (219 | ) | |
| (13 | ) | |
| (2 | ) |
| Net cash
provided by (used in) operating activities | |
| 2,411 | | |
| 1,693 | | |
| 2,704 | | |
| 371 | | |
| 7,674 | | |
| 7,518 | | |
| 1,030 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Investing activities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Capital
expenditures | |
| (313 | ) | |
| (209 | ) | |
| (205 | ) | |
| (28 | ) | |
| (901 | ) | |
| (898 | ) | |
| (123 | ) |
| Purchase
of investments | |
| (700 | ) | |
| (32 | ) | |
| (3,099 | ) | |
| (424 | ) | |
| (3,509 | ) | |
| (4,017 | ) | |
| (550 | ) |
| Proceeds
from maturity/sale and return of investments | |
| 771 | | |
| 406 | | |
| 176 | | |
| 24 | | |
| 2,972 | | |
| 2,563 | | |
| 351 | |
| Loan advances | |
| (140 | ) | |
| (75 | ) | |
| (54 | ) | |
| (7 | ) | |
| (262 | ) | |
| (193 | ) | |
| (26 | ) |
| Loan collections | |
| 36 | | |
| 65 | | |
| 73 | | |
| 10 | | |
| 147 | | |
| 229 | | |
| 31 | |
| Other | |
| 69 | | |
| 11 | | |
| 10 | | |
| 1 | | |
| 76 | | |
| 77 | | |
| 10 | |
| Net cash
provided by (used in) investing activities | |
| (277 | ) | |
| 166 | | |
| (3,099 | ) | |
| (424 | ) | |
| (1,477 | ) | |
| (2,239 | ) | |
| (307 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Financing activities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net proceeds
from issuance of ordinary shares | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,973 | | |
| - | | |
| - | |
| Payment
of share repurchase | |
| (848 | ) | |
| (496 | ) | |
| - | | |
| - | | |
| (848 | ) | |
| (1,172 | ) | |
| (161 | ) |
| Proceeds
from debt | |
| 370 | | |
| 29 | | |
| 25 | | |
| 3 | | |
| 1,169 | | |
| 643 | | |
| 88 | |
| Repayment
of debt | |
| (204 | ) | |
| (135 | ) | |
| (49 | ) | |
| (7 | ) | |
| (5,862 | ) | |
| (613 | ) | |
| (84 | ) |
| Dividend
paid | |
| - | | |
| (1,389 | ) | |
| (0 | ) | |
| (0 | ) | |
| - | | |
| (3,480 | ) | |
| (477 | ) |
| Purchase
of prepaid put option | |
| - | | |
| 0 | | |
| - | | |
| - | | |
| - | | |
| (710 | ) | |
| (97 | ) |
| Other | |
| (62 | ) | |
| (113 | ) | |
| (13 | ) | |
| (2 | ) | |
| (152 | ) | |
| (172 | ) | |
| (23 | ) |
| Net cash
provided by (used in) financing activities | |
| (744 | ) | |
| (2,104 | ) | |
| (37 | ) | |
| (6 | ) | |
| (3,720 | ) | |
| (5,504 | ) | |
| (754 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Effect of
exchange rate changes on cash, cash equivalents and restricted cash | |
| 41 | | |
| 16 | | |
| 21 | | |
| 3 | | |
| 164 | | |
| 30 | | |
| 4 | |
| Net increase (decrease) in cash,
cash equivalents and restricted cash, including cash classified within assets held for sale | |
| 1,431 | | |
| (229 | ) | |
| (411 | ) | |
| (56 | ) | |
| 2,641 | | |
| (195 | ) | |
| (27 | ) |
| Less: net
increase (decrease) in cash and cash equivalents classified within assets held for sale | |
| 17 | | |
| (4 | ) | |
| 5 | | |
| 1 | | |
| 17 | | |
| (9 | ) | |
| (1 | ) |
| Cash,
cash equivalents and restricted cash at the beginning of the period | |
| 6,296 | | |
| 8,165 | | |
| 7,940 | | |
| 1,088 | | |
| 5,086 | | |
| 7,710 | | |
| 1,057 | |
| Cash,
cash equivalents and restricted cash at the end of the period | |
| 7,710 | | |
| 7,940 | | |
| 7,524 | | |
| 1,031 | | |
| 7,710 | | |
| 7,524 | | |
| 1,031 | |
H
World Group Limited
Unaudited
Reconciliation of GAAP and Non-GAAP Results
| | |
Quarter Ended | | |
Year Ended | |
| | |
December 31,
2023 | | |
September
30, 2024 | | |
December 31,
2024 | | |
December
31, 2023 | | |
December 31,
2024 | |
| | |
RMB | | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| | |
(in millions, except shares, per share
and per ADS data) | |
| Net income (loss) attributable to H World Group
Limited (GAAP) | |
| 743 | | |
| 1,273 | | |
| 49 | | |
| 7 | | |
| 4,085 | | |
| 3,048 | | |
| 418 | |
| Share-based compensation expenses | |
| 38 | | |
| 79 | | |
| 73 | | |
| 10 | | |
| 143 | | |
| 322 | | |
| 44 | |
| (Gain) loss from fair value changes of equity securities | |
| (124 | ) | |
| 34 | | |
| 19 | | |
| 3 | | |
| (109 | ) | |
| 66 | | |
| 9 | |
| Foreign exchange (gain) loss, net | |
| (140 | ) | |
| 1 | | |
| 155 | | |
| 21 | | |
| (90 | ) | |
| 272 | | |
| 37 | |
| (Gain) loss on disposal of investments | |
| 0 | | |
| (15 | ) | |
| 25 | | |
| 3 | | |
| （516) | | |
| 10 | | |
| 1 | |
| Adjusted net income (loss) attributable
to H World Group Limited (non-GAAP) | |
| 517 | | |
| 1,372 | | |
| 321 | | |
| 44 | | |
| 3,513 | | |
| 3,718 | | |
| 509 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Adjusted earnings (losses) per share (non-GAAP) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 0.16 | | |
| 0.44 | | |
| 0.10 | | |
| 0.01 | | |
| 1.10 | | |
| 1.19 | | |
| 0.16 | |
| Diluted | |
| 0.16 | | |
| 0.43 | | |
| 0.10 | | |
| 0.01 | | |
| 1.08 | | |
| 1.17 | | |
| 0.16 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Adjusted earnings (losses) per ADS (non-GAAP) |
| Basic | |
| 1.62 | | |
| 4.42 | | |
| 1.04 | | |
| 0.14 | | |
| 11.03 | | |
| 11.94 | | |
| 1.64 | |
| Diluted | |
| 1.61 | | |
| 4.29 | | |
| 1.03 | | |
| 0.14 | | |
| 10.84 | | |
| 11.68 | | |
| 1.60 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of shares used in computation | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 3,182,802,226 | | |
| 3,102,868,424 | | |
| 3,080,973,793 | | |
| 3,080,973,793 | | |
| 3,183,163,131 | | |
| 3,115,130,107 | | |
| 3,115,130,107 | |
| Diluted | |
| 3,217,737,686 | | |
| 3,257,589,866 | | |
| 3,123,364,616 | | |
| 3,123,364,616 | | |
| 3,351,421,211 | | |
| 3,278,308,290 | | |
| 3,278,308,290 | |
|
| | |
Quarter Ended | | |
Year Ended | |
| | |
December 31,
2023 | | |
September
30, 2024 | | |
December 31,
2024 | | |
December
31, 2023 | | |
December 31,
2024 | |
| | |
RMB | | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| | |
(in millions, except per share and per
ADS data) | |
| Net income (loss) attributable to H World
Group Limited (GAAP) | |
| 743 | | |
| 1,273 | | |
| 49 | | |
| 7 | | |
| 4,085 | | |
| 3,048 | | |
| 418 | |
| Interest income | |
| (85 | ) | |
| (50 | ) | |
| (53 | ) | |
| (7 | ) | |
| (248 | ) | |
| (210 | ) | |
| (29 | ) |
| Interest expense | |
| 76 | | |
| 77 | | |
| 74 | | |
| 10 | | |
| 385 | | |
| 318 | | |
| 44 | |
| Income tax expense | |
| 281 | | |
| 382 | | |
| 578 | | |
| 79 | | |
| 1,204 | | |
| 1,662 | | |
| 228 | |
| Depreciation and amortization | |
| 341 | | |
| 332 | | |
| 326 | | |
| 45 | | |
| 1,414 | | |
| 1,332 | | |
| 183 | |
| EBITDA (non-GAAP) | |
| 1,356 | | |
| 2,014 | | |
| 974 | | |
| 134 | | |
| 6,840 | | |
| 6,150 | | |
| 844 | |
| Share-based compensation | |
| 38 | | |
| 79 | | |
| 73 | | |
| 10 | | |
| 143 | | |
| 322 | | |
| 44 | |
| (Gain) loss from fair value changes of equity securities | |
| (124 | ) | |
| 34 | | |
| 19 | | |
| 3 | | |
| (109 | ) | |
| 66 | | |
| 9 | |
| Foreign exchange (gain) loss, net | |
| (140 | ) | |
| 1 | | |
| 155 | | |
| 21 | | |
| (90 | ) | |
| 272 | | |
| 37 | |
| (Gain) loss on disposal of investments | |
| 0 | | |
| (15 | ) | |
| 25 | | |
| 3 | | |
| (516 | ) | |
| 10 | | |
| 1 | |
| Adjusted EBITDA (non-GAAP) | |
| 1,130 | | |
| 2,113 | | |
| 1,246 | | |
| 171 | | |
| 6,268 | | |
| 6,820 | | |
| 935 | |
| H World Group Limited |
| Segment Financial Summary |
| |
| | |
Quarter Ended December 31,
2023 | | |
Quarter Ended September 30,
2024 | | |
Quarter Ended December 31,
2024 | |
| | |
Legacy-
Huazhu | | |
Legacy-
DH | | |
Legacy-
Huazhu | | |
Legacy-
DH | | |
Legacy-
Huazhu | | |
Legacy-
DH | |
| | |
RMB | | |
RMB | | |
RMB | | |
RMB | | |
RMB | | |
RMB | |
| | |
(in millions) | | |
(in millions) | | |
(in millions) | |
| Leased and owned hotels | |
| 2,288 | | |
| 1,165 | | |
| 2,461 | | |
| 1,229 | | |
| 2,178 | | |
| 1,195 | |
| Manachised and franchised hotels | |
| 1,992 | | |
| 24 | | |
| 2,568 | | |
| 34 | | |
| 2,470 | | |
| 29 | |
| Others | |
| 104 | | |
| 12 | | |
| 133 | | |
| 17 | | |
| 139 | | |
| 12 | |
| Revenue | |
| 4,384 | | |
| 1,201 | | |
| 5,162 | | |
| 1,280 | | |
| 4,787 | | |
| 1,236 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| 282 | | |
| 59 | | |
| 271 | | |
| 61 | | |
| 265 | | |
| 61 | |
| Adjusted EBITDA | |
| 1,136 | | |
| (6 | ) | |
| 2,092 | | |
| 21 | | |
| 1,493 | | |
| (247 | ) |
| H World Group Limited |
| Segment Financial Summary |
| |
| | |
Year Ended December 31, 2023 | | |
Year Ended December 31, 2024 | |
| | |
Legacy-
Huazhu | | |
Legacy-
DH | | |
Legacy-
Huazhu | | |
Legacy-
DH | |
| | |
RMB | | |
RMB | | |
RMB | | |
RMB | |
| | |
(in millions) | | |
(in millions) | |
| Leased and owned hotels | |
| 9,522 | | |
| 4,274 | | |
| 9,146 | | |
| 4,697 | |
| Manachised and franchised hotels | |
| 7,596 | | |
| 98 | | |
| 9,385 | | |
| 113 | |
| Others | |
| 320 | | |
| 72 | | |
| 491 | | |
| 59 | |
| Revenue | |
| 17,438 | | |
| 4,444 | | |
| 19,022 | | |
| 4,869 | |
| | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| 1,166 | | |
| 248 | | |
| 1,095 | | |
| 237 | |
| Adjusted EBITDA | |
| 6,200 | | |
| 68 | | |
| 6,981 | | |
| (161 | ) |
Operating Results:
Legacy-Huazhu(1)
| | |
Number
of hotels | | |
Number
of rooms | |
| | |
Opened | | |
Closed
(2) | | |
Net added | | |
As of
December 31, | | |
As of
December 31, | |
| | |
in Q4 2024 | | |
in Q4 2024 | | |
in Q4 2024 | | |
2024 | | |
2024 | |
| Leased and owned hotels | |
| 4 | | |
| (17 | ) | |
| (13 | ) | |
| 557 | | |
| 82,580 | |
| Manachised and franchised hotels | |
| 516 | | |
| (185 | ) | |
| 331 | | |
| 10,468 | | |
| 979,749 | |
| Total | |
| 520 | | |
| (202 | ) | |
| 318 | | |
| 11,025 | | |
| 1,062,329 | |
(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
Q4 2024, we temporarily closed 5 hotels for brand upgrade or business model change purposes.
| | |
As of December 31,
2024 | |
| | |
Number
of hotels | | |
Unopened
hotels in pipeline | |
| Economy hotels | |
| 5,485 | | |
| 1,158 | |
| Leased and owned hotels | |
| 279 | | |
| 1 | |
| Manachised and franchised hotels | |
| 5,206 | | |
| 1,157 | |
| Midscale, upper-midscale hotels and others | |
| 5,540 | | |
| 1,830 | |
| Leased and owned hotels | |
| 278 | | |
| 4 | |
| Manachised and
franchised hotels | |
| 5,262 | | |
| 1,826 | |
| Total | |
| 11,025 | | |
| 2,988 | |
| | |
For the
quarter ended | | |
| |
| | |
December 31, | | |
September 30, | | |
December 31, | | |
yoy | |
| | |
2023 | | |
2024 | | |
2024 | | |
change | |
| Average daily room rate (in RMB) | |
| | |
| | |
| |
| Leased and owned hotels | |
| 356 | | |
| 381 | | |
| 353 | | |
| -0.7 | % |
| Manachised and franchised hotels | |
| 276 | | |
| 294 | | |
| 270 | | |
| -2.1 | % |
| Blended | |
| 284 | | |
| 301 | | |
| 277 | | |
| -2.5 | % |
| Occupancy rate (as a percentage) | |
| | | |
| | | |
| | | |
| | |
| Leased and owned hotels | |
| 83.7 | % | |
| 87.4 | % | |
| 83.7 | % | |
| +0.0 | p.p. |
| Manachised and franchised hotels | |
| 80.1 | % | |
| 84.6 | % | |
| 79.7 | % | |
| -0.5 | p.p. |
| Blended | |
| 80.5 | % | |
| 84.9 | % | |
| 80.0 | % | |
| -0.5 | p.p. |
| RevPAR (in RMB) | |
| | | |
| | | |
| | | |
| | |
| Leased and owned hotels | |
| 298 | | |
| 333 | | |
| 296 | | |
| -0.7 | % |
| Manachised and franchised hotels | |
| 221 | | |
| 249 | | |
| 215 | | |
| -2.7 | % |
| Blended | |
| 229 | | |
| 256 | | |
| 222 | | |
| -3.1 | % |
| | |
For full
year ended | |
| | |
December 31, | | |
December 31, | | |
yoy | |
| | |
2023 | | |
2024 | | |
change | |
| Average daily room rate (in RMB) | |
| | |
| |
| Leased and owned hotels | |
| 372 | | |
| 364 | | |
| -2.0 | % |
| Manachised and franchised hotels | |
| 290 | | |
| 281 | | |
| -2.8 | % |
| Blended | |
| 299 | | |
| 289 | | |
| -3.2 | % |
| Occupancy rate (as a percentage) | |
| | | |
| | | |
| | |
| Leased and owned hotels | |
| 82.8 | % | |
| 84.4 | % | |
| +1.6
| p.p. |
| Manachised and franchised hotels | |
| 80.8 | % | |
| 80.9 | % | |
| +0.1 | p.p. |
| Blended | |
| 81.1 | % | |
| 81.2 | % | |
| +0.2 | p.p. |
| RevPAR (in RMB) | |
| | | |
| | | |
| | |
| Leased and owned hotels | |
| 308 | | |
| 308 | | |
| -0.1 | % |
| Manachised and franchised hotels | |
| 234 | | |
| 228 | | |
| -2.7 | % |
| Blended | |
| 242 | | |
| 235 | | |
| -3.0 | % |
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 | |
| | |
| | |
For the quarter | |
| |
| |
For the quarter | |
| | |
|
For the quarter | | |
| |
| | |
As
of
December 31, | | |
ended
December 31, | |
yoy | |
| |
ended
December 31, | |
yoy | | |
|
ended
December 31, | | |
yoy
change | |
| | |
2023 | |
2024 | | |
2023 | |
2024 | |
change | |
| |
2023 | |
2024 | |
change | | |
|
2023 | | |
2024 | | |
(p.p.) | |
| Economy hotels | |
3,757 | |
3,757 | | |
179 | |
166 | |
-7.5 | % |
| |
215 | |
204 | |
-5.0 | % | |
|
83.2 | % | |
81.0 | % | |
-2.2 | |
| Leased and owned hotels | |
272 | |
272 | | |
215 | |
202 | |
-6.0 | % |
| |
253 | |
239 | |
-5.3 | % | |
|
85.1 | % | |
84.5 | % | |
-0.6 | |
| Manachised and
franchised hotels | |
3,485 | |
3,485 | | |
175 | |
161 | |
-7.8 | % |
| |
211 | |
200 | |
-5.0 | % | |
|
82.9 | % | |
80.5 | % | |
-2.4 | |
| Midscale, upper-midscale hotels and others | |
3,406 | |
3,406 | | |
286 | |
268 | |
-6.3 | % |
| |
352 | |
335 | |
-4.6 | % | |
|
81.5 | % | |
80.0 | % | |
-1.4 | |
| Leased and owned hotels | |
253 | |
253 | | |
373 | |
356 | |
-4.5 | % |
| |
446 | |
427 | |
-4.1 | % | |
|
83.6 | % | |
83.3 | % | |
-0.3 | |
| Manachised and
franchised hotels | |
3,153 | |
3,153 | | |
276 | |
258 | |
-6.6 | % |
| |
339 | |
323 | |
-4.7 | % | |
|
81.2 | % | |
79.6 | % | |
-1.5 | |
| Total | |
7,163 | |
7,163 | | |
238 | |
222 | |
-6.7 | % |
| |
289 | |
276 | |
-4.6 | % | |
|
82.2 | % | |
80.5 | % | |
-1.8 | |
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 | |
| | |
| | |
For the
year | |
| |
| |
For the
year | |
| |
| |
For the
year | | |
| |
| | |
As
of
December 31, | | |
ended
December 31, | |
yoy | |
| |
ended
December 31, | |
yoy | |
| |
ended
December 31, | | |
yoy
change | |
| | |
2023 | |
2024 | | |
2023 | |
2024 | |
change | |
| |
2023 | |
2024 | |
change | |
| |
2023 | | |
2024 | | |
(p.p.) | |
| Economy hotels | |
3,757 | |
3,757 | | |
191 | |
180 | |
-6.0 | % |
| |
229 | |
217 | |
-5.0 | % |
| |
83.7 | % | |
82.8 | % | |
-0.9 | |
| Leased
and owned hotels | |
272 | |
272 | | |
229 | |
220 | |
-3.8 | % |
| |
270 | |
256 | |
-5.2 | % |
| |
84.8 | % | |
86.0 | % | |
+1.2 | |
| Manachised
and franchised hotels | |
3,485 | |
3,485 | | |
187 | |
175 | |
-6.3 | % |
| |
223 | |
212 | |
-5.0 | % |
| |
83.6 | % | |
82.4 | % | |
-1.2 | |
| Midscale, upper-midscale
hotels and others | |
3,406 | |
3,406 | | |
301 | |
285 | |
-5.2 | % |
| |
369 | |
351 | |
-4.8 | % |
| |
81.5 | % | |
81.2 | % | |
-0.3 | |
| Leased
and owned hotels | |
253 | |
253 | | |
384 | |
373 | |
-2.9 | % |
| |
467 | |
446 | |
-4.5 | % |
| |
82.2 | % | |
83.5 | % | |
+1.4 | |
| Manachised
and franchised hotels | |
3,153 | |
3,153 | | |
290 | |
274 | |
-5.5 | % |
| |
356 | |
339 | |
-4.9 | % |
| |
81.4 | % | |
80.9 | % | |
-0.5 | |
| Total | |
7,163 | |
7,163 | | |
250 | |
236 | |
-5.4 | % |
| |
303 | |
289 | |
-4.8 | % |
| |
82.5 | % | |
82.0 | % | |
-0.6 | |
Operating Results: Legacy-DH(3)
| | |
Number
of hotels | | |
Number of
rooms | | |
Unopened hotels
in pipeline | |
| | |
| | |
| | |
| | |
As of | | |
As of | | |
As of | |
| | |
Opened | | |
Closed | | |
Net added | | |
December | | |
December 31, | | |
December 31, | |
| | |
in Q4 2024 | | |
in Q4 2024 | | |
in Q4 2024 | | |
31, 2024(4) | | |
2024 | | |
2024 | |
| Leased hotels | |
| | | |
| (1 | ) | |
| (1 | ) | |
| 76 | | |
| 15,490 | | |
| 12 | |
| Manachised and franchised hotels | |
| - | | |
| (15 | ) | |
| (15 | ) | |
| 46 | | |
| 10,399 | | |
| 13 | |
| Total | |
| - | | |
| (16 | ) | |
| (16 | ) | |
| 122 | | |
| 25,889 | | |
| 25 | |
(3) Legacy-DH
refers to DH.
(4) As
of December 31, 2024, a total of 3 hotels were temporarily closed due to repair work.
| | |
For the
quarter ended | | |
| |
| | |
December 31, | | |
September 30, | | |
December 31, | | |
yoy | |
| | |
2023 | | |
2024 | | |
2024 | | |
change | |
| Average daily room rate (in EUR) | |
| | | |
| | | |
| | | |
| | |
| Leased hotels | |
| 118 | | |
| 118 | | |
| 115 | | |
| -2.1 | % |
| Manachised and franchised hotels | |
| 111 | | |
| 116 | | |
| 115 | | |
| 3.9 | % |
| Blended | |
| 115 | | |
| 117 | | |
| 115 | | |
| 0.2 | % |
| Occupancy rate (as a percentage) | |
| | | |
| | | |
| | | |
| | |
| Leased hotels | |
| 64.7 | % | |
| 72.2 | % | |
| 70.0 | % | |
| +5.4 | p.p. |
| Manachised and franchised hotels | |
| 62.6 | % | |
| 66.6 | % | |
| 71.2 | % | |
| +8.6 | p.p. |
| Blended | |
| 63.8 | % | |
| 69.8 | % | |
| 70.5 | % | |
| +6.7 | p.p. |
| RevPAR (in EUR) | |
| | | |
| | | |
| | | |
| | |
| Leased hotels | |
| 76 | | |
| 85 | | |
| 81 | | |
| 6.1 | % |
| Manachised and franchised hotels | |
| 69 | | |
| 77 | | |
| 82 | | |
| 18.1 | % |
| Blended | |
| 73 | | |
| 82 | | |
| 81 | | |
| 10.7 | % |
| | |
For full
year ended | |
| | |
December 31, | | |
December 31, | | |
yoy | |
| | |
2023 | | |
2024 | | |
change | |
| Average daily room rate (in EUR) | |
| | |
| |
| Leased and owned hotels | |
| 115 | | |
| 117 | | |
| 2.0 | % |
| Manachised and franchised hotels | |
| 110 | | |
| 110 | | |
| 0.7 | % |
| Blended | |
| 113 | | |
| 114 | | |
| 1.5 | % |
| Occupancy Rate (as a percentage) | |
| | | |
| | | |
| | |
| Leased and owned hotels | |
| 64.7 | % | |
| 67.2 | % | |
| +2.6 | p.p. |
| Manachised and franchised hotels | |
| 61.6 | % | |
| 64.5 | % | |
| +3.0 | p.p. |
| Blended | |
| 63.4 | % | |
| 66.1 | % | |
| +2.7 | p.p. |
| RevPAR (in EUR) | |
| | | |
| | | |
| | |
| Leased and owned hotels | |
| 74 | | |
| 79 | | |
| 6.1 | % |
| Manachised and franchised hotels | |
| 67 | | |
| 71 | | |
| 5.6 | % |
| Blended | |
| 71 | | |
| 76 | | |
| 5.9 | % |
Hotel Portfolio by Brand
| | |
As of
December 31, 2024 | |
| | |
Hotels | | |
Rooms | | |
Unopened hotels | |
| | |
in operation | | |
in pipeline | |
| Economy hotels | |
| 5,489 | | |
| 449,763 | | |
| 1,167 | |
| HanTing Hotel | |
| 4,139 | | |
| 359,475 | | |
| 711 | |
| Hi Inn | |
| 546 | | |
| 28,680 | | |
| 294 | |
| Ni Hao Hotel | |
| 415 | | |
| 31,335 | | |
| 136 | |
| Elan Hotel | |
| 162 | | |
| 8,018 | | |
| - | |
| Ibis Hotel | |
| 223 | | |
| 21,598 | | |
| 17 | |
| Zleep Hotels | |
| 4 | | |
| 657 | | |
| 9 | |
| Midscale hotels | |
| 4,547 | | |
| 484,733 | | |
| 1,204 | |
| Ibis Styles Hotel | |
| 105 | | |
| 10,105 | | |
| 8 | |
| Starway Hotel | |
| 724 | | |
| 58,547 | | |
| 127 | |
| JI Hotel | |
| 2,867 | | |
| 325,999 | | |
| 814 | |
| Orange Hotel | |
| 851 | | |
| 90,082 | | |
| 255 | |
| Upper midscale hotels | |
| 935 | | |
| 126,158 | | |
| 526 | |
| Crystal Orange Hotel | |
| 245 | | |
| 31,105 | | |
| 159 | |
| CitiGO Hotel | |
| 34 | | |
| 5,107 | | |
| 4 | |
| Manxin Hotel | |
| 166 | | |
| 15,585 | | |
| 64 | |
| Madison Hotel | |
| 149 | | |
| 17,623 | | |
| 105 | |
| Mercure Hotel | |
| 199 | | |
| 30,714 | | |
| 55 | |
| Novotel Hotel | |
| 31 | | |
| 6,850 | | |
| 19 | |
| IntercityHotel(5) | |
| 99 | | |
| 17,466 | | |
| 113 | |
| MAXX(6) | |
| 12 | | |
| 1,708 | | |
| 7 | |
| Upscale hotels | |
| 149 | | |
| 21,790 | | |
| 106 | |
| Jaz in the City | |
| 3 | | |
| 587 | | |
| 1 | |
| Joya Hotel | |
| 7 | | |
| 1,234 | | |
| 1 | |
| Blossom House | |
| 75 | | |
| 3,622 | | |
| 91 | |
| Grand Mercure Hotel | |
| 9 | | |
| 1,726 | | |
| - | |
| Steigenberger Hotels& Resorts(7) | |
| 55 | | |
| 14,621 | | |
| 13 | |
| Luxury hotels | |
| 16 | | |
| 2,325 | | |
| 5 | |
| Steigenberger Icon(8) | |
| 9 | | |
| 1,804 | | |
| 3 | |
| Song Hotels | |
| 7 | | |
| 521 | | |
| 2 | |
| Others | |
| 11 | | |
| 3,449 | | |
| 5 | |
| Other hotels(9) | |
| 11 | | |
| 3,449 | | |
| 5 | |
| Total | |
| 11,147 | | |
| 1,088,218 | | |
| 3,013 | |
(5) As
of December 31, 2024, 42 operational hotels and 108 pipeline hotels of IntercityHotel were under Legacy-Huazhu.
(6) As
of December 31, 2024, 7 operational hotels and 7 pipeline hotels of MAXX were under Legacy-Huazhu.
(7) As
of December 31, 2024, 12 operational hotels and 6 pipeline hotels of Steigenberger Hotels & Resorts were under Legacy-Huazhu.
(8) As
of December 31, 2024, 3 operational hotels and 2 pipeline hotels of Steigenberger Icon were under Legacy-Huazhu.
(9) Other
hotels include other partner hotels and other hotel brands in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels &
Resorts and Blossom House).
H World (NASDAQ:HTHT)
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H World (NASDAQ:HTHT)
Graphique Historique de l'Action
De Avr 2024 à Avr 2025
