Core Viewpoint - H World Group Limited, a significant player in the global hotel industry, is set to release its unaudited financial results for Q1 2025 on May 20, 2025, after Hong Kong trading hours and before the U.S. market opens [1]. Company Overview - H World Group Limited operates 11,147 hotels with a total of 1,088,218 rooms across 18 countries as of December 31, 2024 [5]. - The company's hotel 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 [5]. - H World holds master franchise rights for Mercure, Ibis, and Ibis Styles, along with co-development rights for Grand Mercure and Novotel in the pan-China region [5]. Business Model - H World employs a mix of leased and owned, manachised, and franchised hotel models [6]. - As of December 31, 2024, 9% of hotel rooms were operated under the lease and ownership model, while 91% were under the manachise and franchise models [6].

Core Viewpoint - The lawsuit between Mengbaihe and Huazhu highlights the competitive dynamics between the mattress and hotel industries, with both sides seeking to capitalize on each other's markets [1][3][20]. Group 1: Legal Dispute - Mengbaihe Home Technology Co., Ltd. has filed a lawsuit against Huazhu Hotel Management Co., Ltd. and its subsidiaries for trademark infringement [2]. - The case is set to be heard in the Shanghai Pudong New Area People's Court on February 13, 2025 [2]. - The ongoing competition between the two companies has been characterized as a "water under the bridge" rivalry, with both aiming to capture market share from each other [2][3]. Group 2: Industry Challenges - The hotel industry is facing declining performance, with the average occupancy rate in 2024 at 58.8%, down 2.5 percentage points year-on-year, and average room prices decreasing by 5.8% [4]. - Increased competition and a saturated market have forced hotels to lower prices and seek cost-cutting measures, leading them to consider producing their own bedding products [4][20]. Group 3: Market Strategies - Huazhu's decision to enter the mattress market is driven by the need to enhance profitability amid declining hotel revenues [3][4]. - Other hotel brands, like Atour, have successfully launched their own bedding lines, significantly boosting their revenue [8][10]. - Mengbaihe's strategy involves collaborating with hotels to promote its products, effectively turning hotel rooms into immersive showrooms for its bedding items [16][20]. Group 4: Future Outlook - Mengbaihe aims to open 2,000 "zero-pressure" hotels, although its current progress is limited, with only a few locations operational [17][19]. - The competition between mattress manufacturers and hotels is expected to intensify, as both sectors explore new revenue streams and customer engagement strategies [13][20].

Core Insights - H World Group Limited experienced a significant increase in guest numbers during the 2025 May Day holiday, with nearly 6.3 million guests, representing a 30% increase compared to the previous year [1][6] - The overall hotel occupancy rate for H World exceeded 84%, marking a 1% year-on-year increase, with major cities showing strong performance [2][6] - The implementation of China's 240-hour visa-free transit policy contributed to a 75% year-on-year increase in international guest stays, totaling over 43,000 during the holiday [4][6] Domestic Travel Trends - During the five-day holiday, China saw 314 million domestic trips, reflecting a 6.4% year-on-year increase, with total domestic tourism spending reaching 180.27 billion yuan, an 8.0% year-on-year growth [2] - Second-tier cities like Xuzhou, Changchun, and Foshan reported occupancy rates exceeding 90%, indicating robust domestic travel demand beyond major urban centers [3] - Smaller third- and fourth-tier cities also attracted more leisure travelers, with cities such as Bengbu and Liaoyang achieving full occupancy [3] Performance by City - Major cities performed strongly with occupancy rates of 88% in Guangzhou, 87% in Shenzhen, and 85% in Xi'an, representing year-on-year growth of 10%, 14.5%, and 10.4% respectively [2]

Group 1: Travel and Tourism Data - During the five-day May Day holiday, 314 million domestic trips were made in China, representing a year-on-year increase of 6.4% [1] - Domestic tourists spent a total of 180.27 billion yuan during the holiday, marking an 8.0% increase compared to the previous year [1] Group 2: Hotel Industry Performance - Huazhu Group reported that its hotels received nearly 6.3 million guests during the May Day holiday, 1.3 times more than the same period last year [2] - The overall hotel occupancy rate exceeded 84%, with peak occupancy reaching 97% from May 1 to May 3, and on May 2, occupancy hit 103% [2] - Jinjiang Hotels (China) reported nearly 8.9 million guests from April 30 to May 4, a 13% increase year-on-year, with over 5,000 hotels fully booked for three consecutive days [2] Group 3: Performance in Smaller Cities - Many third and fourth-tier cities showed strong growth, with cities like Bengbu, Huaihua, and Yangjiang reporting hotel occupancy rates exceeding 100% [3] - Jinjiang Hotels noted that the average occupancy rate in Qianjiang reached 104%, the highest in the country during the holiday [3] Group 4: Resort and Vacation Destination Success - The Atlantis Sanya hotel achieved an average occupancy rate of 94% during the holiday, with 120,000 visitors [4] - Several Club Med resorts reported occupancy rates exceeding 95% during the holiday period [4] Group 5: Inbound Tourism Growth - Huazhu Group received over 43,000 foreign guests during the holiday, 1.75 times more than last year [6] - Jinjiang Hotels reported a 4.7 times increase in foreign guests compared to the previous year, with top source countries including Russia, South Korea, and Thailand [6] Group 6: Rise of the Homestay Industry - Tujia reported that the homestay industry experienced its "hottest May Day" with a booking increase of over 30% compared to last year [7] - Popular destinations for homestays included Chengdu and Chongqing, with Guangdong becoming the top province for homestay bookings [7] Group 7: Impact of Music Events - Numerous concerts and music festivals contributed to increased homestay bookings, with some cities experiencing booking increases of over 80% due to local events [8]

5月6日，记者从华住集团获悉，2025年"五一"假期期间(5月1日至5月5日)，该集团旗下酒店总接待人次 近630万，是2024年同期的1.3倍；酒店整体的入住率超84%，和2024年同期相比微增约1个百分点。其 入住高峰时段出现在5月1日至5月3日，这三日酒店平均入住率达97%。其中，5月2日当天的酒店整体入 住率达103%，满房酒店数量超过9600家，入住率90%以上的门店超1万家。(上证报) ...

Group 1 - The inbound tourism market in China is expected to experience a significant surge during the upcoming "May Day" holiday, with daily cross-border movement projected at 2.15 million people, surpassing pre-pandemic levels [1] - Inbound travel orders have seen a remarkable year-on-year increase of 173% during the "May Day" holiday, with Japan and China experiencing a notable reciprocal travel trend [2] - Major airports such as Shanghai Pudong, Guangzhou Baiyun, Beijing Capital, and Chengdu Tianfu are expected to see daily inbound and outbound passenger numbers exceeding 10,000 [1][2] Group 2 - The trend of "reverse tourism" is gaining traction, with younger consumers opting for vacations in smaller cities, leading to a consumption upgrade in county-level tourism markets [3][4] - Data indicates that tourism in lower-tier cities is growing at a faster rate than in higher-tier cities, with a 25% increase in market heat for four-tier cities and below, outpacing higher-tier cities by 11 percentage points [3] - Hotel bookings in county-level cities have expanded significantly, with a 30% year-on-year increase in high-star hotel reservations during the "May Day" holiday [3]

Core Insights - The collaboration between Huazhu and Didi Chuxing aims to address the time management challenges faced by business travelers, enhancing the overall travel experience by integrating accommodation and transportation services [8][10][12] - The traditional hotel industry has limitations, primarily focusing on accommodation, while the evolving needs of travelers demand a more comprehensive service that includes travel logistics [4][6][15] Group 1: Market Demand and Challenges - Business travelers experience significant time anxiety due to fragmented travel arrangements, requiring them to switch between multiple apps for transportation and accommodation [3][4] - There is a growing expectation from travelers for hotels to provide services beyond just lodging, with a focus on seamless travel integration [5][6] Group 2: Huazhu and Didi Collaboration - The partnership allows over 270 million Huazhu members to book Didi rides directly through the Huazhu app, streamlining the travel process [9][10] - This integration reduces the need for users to switch between different platforms, addressing the anxiety associated with fragmented travel experiences [10][12] Group 3: Redefining Service Value - The collaboration signifies a shift in the hotel industry towards valuing time as a currency, with services designed to enhance the efficiency of travel [12][19] - The Huazhu app now serves as a comprehensive travel management tool, extending its services from accommodation to transportation and other travel-related needs [12][15] Group 4: Future of Hotel Membership Systems - The evolution of hotel membership programs is moving towards a model that emphasizes seamless integration of various services rather than traditional point-based rewards [14][16] - Huazhu aims to become an intelligent platform that manages the entire travel journey, enhancing user experience through data-driven insights [14][15]

Group 1 - The tourism market is experiencing a significant increase in activity as the "May Day" holiday approaches, with online hotel and flight searches rising sharply, indicating a peak in bookings [1][2] - Domestic travel bookings for the "May Day" holiday have more than doubled compared to the same period last year, with self-driving tours, free travel, and group tours showing particularly high growth [1] - The "May Day" holiday is characterized by three main trends: rapid growth in long-distance travel, a two-way increase in cross-border travel, and a resurgence in county-level tourism, contributing to structural growth in the tourism market [1][3] Group 2 - Ctrip's report indicates that the holiday travel consumption is marked by explosive growth in long-distance travel and a significant increase in inbound travel orders, which surged by 173% year-on-year [1][3] - The proportion of cross-city accommodation orders has exceeded 80%, with deep travel users planning to stay for two days or more expected to reach 20% [3] - Popular domestic destinations include traditional cities like Beijing and Shanghai, while emerging destinations such as Taiyuan and Yining are also seeing significant growth in hotel bookings [3][4] Group 3 - The overall transaction volume (GMV) for travel services has increased by approximately 65% year-on-year, with product diversity growing by 55.25% [3] - The "May Day" holiday is expected to reach a historical peak in travel heat, with the travel peak anticipated to occur in the first two days of the holiday [4] - The Ministry of Commerce and other departments have announced policies to optimize the outbound tax refund system, which is expected to boost inbound tourism and shopping [4][5] Group 4 - Companies like Ctrip are expected to benefit from the growing demand for travel, as high-level consumption continues to expand [6] - Huazhu Group's adjusted EBITDA for Q4 2024 is projected to grow by 10%, with an upward revision of EBITDA forecasts for 2025-2026 [6] - China Duty Free Group is expected to see revenue growth driven by the recovery of port traffic and operational optimizations, with new store policies creating growth opportunities [6]

Hotel Network Expansion - The company expanded its hotel network from 8,543 hotels as of December 31, 2022, to 11,147 hotels as of December 31, 2024, representing a compound annual growth rate (CAGR) of 14.2%[4] - The company is developing 3,013 new hotels, including 17 leased and owned hotels and 2,996 managed franchise hotels[4] - The hotel network covers 11,147 hotels across 1,115 cities in Greater China and 18 other countries, with an additional 3,013 hotels under development[37] Financial Performance - Total revenue for the company was RMB 13,862 million in 2022, RMB 21,882 million in 2023, and RMB 23,891 million in 2024, showing a significant recovery post-COVID-19[7] - The net profit attributable to the company was RMB 4,085 million in 2023 and RMB 3,048 million in 2024, compared to a net loss of RMB 1,821 million in 2022[7] - Adjusted EBITDA for the company was RMB 1,178 million in 2022, RMB 6,268 million in 2023, and RMB 6,820 million in 2024, indicating strong operational recovery[7] Loyalty Program - As of December 31, 2024, the company has over 266 million members in its loyalty program, with approximately 70% of room nights sold to these members[5] - As of December 31, 2024, the Huazhu loyalty program had over 266 million members, contributing to about 70% of room nights sold[73] Hotel Management and Operations - The company operates 4,139 existing HanTing hotels and has 711 HanTing hotels under development as of December 31, 2024[10] - The company’s unique hotel management approach balances scale, quality, and returns, allowing for effective expansion in a capital-light model[6] - The company provides comprehensive support to franchisees, including training, marketing, and operational assistance, to ensure product quality and consistency across its hotel network[47] Franchise and Licensing - The company has entered into a brand franchising agreement with Accor, gaining exclusive rights for several hotel brands in China and Mongolia[9] - The company charges franchise fees ranging from RMB 80,000 to RMB 1,000,000 per hotel, and monthly fees of approximately 3% to 6.5% of total revenue generated by each managed franchise hotel[48] - The company has 1,789 hotels in the conversion phase, with 1,224 hotels expected to be operational by the end of the reporting period[41] Technology and Innovation - The company has established a proprietary technology infrastructure that enhances customer experience and operational efficiency, supporting rapid growth[5] - The company utilizes a centralized revenue management system to adjust hotel room prices based on seasonal and market demand, optimizing revenue generation[59] - The company has developed a fully automated revenue management system that adjusts hotel prices in real-time based on market demand, aiming to maximize room revenue[64] Environmental Initiatives - Over 3,300 hotels are equipped with air source heat pumps, and nearly 1,000 hotels have adopted solar water heating systems as of the end of 2024[78] - The "Green Stay - No Towel Change" initiative has expanded to over 9,000 hotels, successfully avoiding the washing of over 7.8 million towels[80] - The company is actively collaborating with suppliers to develop eco-friendly materials, including straw toothbrushes and RPET bottled products[81] Regulatory Compliance - The company must comply with labor laws that protect employee rights, including the right to request non-fixed-term contracts after two consecutive fixed-term contracts[120] - The company must ensure strict confidentiality and security of personal information collected from users, as mandated by various regulations[123] - The company has established dedicated committees and centers to oversee data security, ensuring compliance with laws such as the Cybersecurity Law of the People's Republic of China and GDPR[69] Market Presence and Competition - The hotel industry is highly fragmented, with competition arising from independent hotels, other lodging facilities, and major hotel groups like Marriott and Hilton[74] - The company is expanding its market presence by entering three new countries, aiming for a 15% market share within the first year[94] Future Projections - The company provided guidance for the next quarter, projecting revenue between $1.6 billion and $1.8 billion, which reflects a growth rate of 10% to 20%[92] - The company expects continued revenue growth from managed franchise and licensed hotels due to an increase in the number of such hotels in its network[170] - The company plans to maintain a 15% preferential tax rate for its high-tech enterprises through 2026[183]

Core Viewpoint - The article discusses the recent quarterly report of E Fund's star fund manager Zhang Kun, highlighting his portfolio adjustments and investment philosophy amidst changing market conditions [1][2]. Group 1: Fund Performance and Adjustments - As of the end of Q1 2025, Zhang Kun's managed funds have a total scale exceeding 60.82 billion yuan, an increase of 1.841 billion yuan from the end of the previous year [2]. - The largest fund, E Fund Blue Chip Selection, saw its scale grow by over 1.4 billion yuan to 38.908 billion yuan, while E Fund Quality Selection increased by 500 million yuan to 14.169 billion yuan [2]. - All four funds experienced varying degrees of net redemptions, with E Fund Blue Chip Selection facing a net redemption of 960 million units [3]. Group 2: Portfolio Composition and Strategy - Zhang Kun maintained a high stock position, with stock holdings remaining above 94% across his funds, and a consistent allocation of around 45% in Hong Kong stocks [4]. - In Q1, he optimized the structure of his holdings, reducing exposure to internet stocks while increasing investments in logistics and tourism sectors [5]. - Major reductions were noted in holdings of Tencent Holdings, Alibaba-W, and Yanghe Brewery, with reductions around 30% for Alibaba and Yanghe, and over 10% for Tencent [5][6]. Group 3: Market Outlook and Investment Philosophy - Zhang Kun emphasized that the stock market's returns are fundamentally linked to corporate earnings, which he believes will not remain below the return on equity (ROE) levels for an extended period [7]. - He noted improvements in competitive landscapes across certain industries and highlighted the importance of focusing on companies with strong business models and shareholder-friendly capital allocation [7]. - The manager expressed optimism regarding the economic impact of real estate downturns and consumer stimulus policies, suggesting that investors should concentrate on corporate performance rather than macroeconomic concerns [7].