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) ...

Summary of Hotel and Tourism Industry Conference Call Industry Overview - The hotel industry during the 2024 May Day holiday exceeded expectations, driven by long holiday opportunities leading to increased inter-provincial and long-distance travel, particularly in lower-tier cities. Coastal cities showed better performance compared to last year, and the 144-hour visa-free transit policy boosted foreign tourist numbers. Hotel prices, including those of Huazhu and Jinjiang, saw approximately a 10% increase [1][4][25]. Key Insights - **Performance by Hotel Tier**: Different tiers of hotels showed varied performance during the holiday. High-end hotels experienced significant growth in occupancy rates, while mid-range hotels saw increases in both price and traffic. Economy hotels had relatively smaller increases [1][5]. - **RevPAR Growth**: During the 2024 May Day period, Huazhu's RevPAR was 110.3 RMB, and Jinjiang's was 118.4 RMB, both showing over 10 percentage points growth compared to the previous year. This growth suggests a potential similar trend for Q2 and raises expectations for summer data [1][6][7]. - **Regional Performance**: The Southwest and South China regions performed particularly well, while the Northwest region, except for Xinjiang, showed weaker results [2][4]. Additional Important Points - **Government Initiatives**: The government is considering issuing accommodation vouchers through OTA platforms to stimulate tourism and related services, expected to launch before the summer [3][25]. - **Supply Dynamics**: Huazhu plans to open 2,400 new stores in 2025, focusing on lower-tier markets, while Jinjiang's pace is slower with fewer than 300 new openings. The overall slowdown in supply growth is seen as positive for the chain hotel market [12][13]. - **Business Travel Trends**: Business travel demand remained stable in April, with Huazhu's demand holding steady year-on-year, while Jinjiang experienced a decline due to first-quarter reforms [10][11]. - **Market Outlook**: The overall hotel industry is expected to remain flat or decline by 1-2% in 2025, with Jinjiang projected to decline by about 5% and Yaduo by 2-3% [21]. Conclusion - The hotel industry is experiencing a positive trend driven by increased travel demand and government support. However, the performance varies significantly across different hotel tiers and regions. The supply dynamics and business travel trends will play a crucial role in shaping the industry's outlook for the coming months.

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].

Regulatory Environment - As of December 31, 2024, a total of RMB1,455 million (US$199 million) was not distributable in the form of dividends due to PRC regulations[189]. - The share capital of RMB2,726 million (US$373 million) as of December 31, 2024, is considered restricted due to PRC regulations[189]. - Current PRC laws permit subsidiaries to pay dividends only out of accumulated profits, which are determined according to PRC accounting standards[189]. - PRC regulations may delay or prevent the company from using proceeds from offerings to make loans or additional capital contributions to PRC subsidiaries[190]. - Loans to PRC entities are subject to statutory limits based on total investment and registered capital[191]. - The company must comply with foreign exchange regulations when financing PRC entities, which may affect liquidity and business expansion[192]. - If treated as a PRC resident enterprise, the company could be subject to a 25% PRC income tax on worldwide income[197]. - Non-compliance with PRC regulations could result in fines or sanctions, affecting the ability to grant shares or share options[193]. - The Foreign Investment Law and its implementing rules may impact the company's business operations and financial condition, particularly regarding the VIE structure[219]. - The company may face substantial uncertainties regarding compliance with future regulatory changes related to foreign investments[219]. Financial Performance - In 2022, the company recorded a net loss of RMB1,821 million due to the impact of COVID-19, but operating income in 2023 rebounded to RMB4,714 million and net income reached RMB4,085 million (US$575 million)[229]. - For 2024, the company anticipates operating income of RMB5,200 million and net income of RMB3,048 million (US$418 million)[229]. - As of December 31, 2024, current liabilities exceeded current assets by US$15 million, indicating potential liquidity challenges[229]. - The company may need to seek additional capital through the sale of equity or debt securities, which could dilute existing shareholders' interests[228]. - The company has not entered into hedging transactions to mitigate dilution from the conversion of convertible senior notes due 2026[232]. Market and Trading Conditions - The market price for the company's ADSs has been volatile, ranging from a low of US$27.56 to a high of US$42.04 on the NASDAQ in 2024[220]. - The ordinary shares on the Hong Kong Stock Exchange experienced a high of HK$33.3 and a low of HK$21.0 in 2024[220]. - The trading market for the company's ordinary shares on the Hong Kong Stock Exchange may not be sustained, affecting market price and liquidity[223]. - Short selling practices may lead to significant volatility in the prices of the company's ADSs and ordinary shares[227]. - The company has had to allocate resources to investigate and respond to short seller reports, which could divert management's attention from core operations[227]. Corporate Governance and Shareholder Rights - The company is permitted to rely on exemptions from certain NASDAQ corporate governance standards, which may afford less protection to shareholders[245]. - The company's articles of association contain anti-takeover provisions that could limit opportunities for shareholders to sell their shares at a premium[246]. - There are uncertainties regarding the enforceability of U.S. and Hong Kong court judgments in the Cayman Islands, China, and Germany, which may limit shareholder rights[251]. - The company may face difficulties in protecting shareholder interests due to the legal environment in the Cayman Islands compared to jurisdictions like the U.S. or Hong Kong[253]. - There are significant legal obstacles in China for pursuing shareholder claims or regulatory investigations that are common in the U.S.[255]. Operational Structure - The company operates primarily through subsidiaries in China and Europe, and investors do not hold equity interest in the operating entities in China[203]. - The company relies on contractual arrangements with Consolidated Affiliated Entities to operate restricted businesses, which may not be as effective as direct ownership[210]. - If the contractual arrangements are deemed illegal by PRC authorities, the company may lose control over the Consolidated Affiliated Entities[208]. - The company may face substantial costs and limitations if it exercises the option to acquire equity ownership of the Consolidated Affiliated Entities[214]. - The company relies on legal representatives to execute contracts, which poses risks if they misuse their authority[218]. Audit and Inspection - The PCAOB signed a Statement of Protocol with the CSRC and the Ministry of Finance of the PRC on August 26, 2022, allowing for inspections of registered public accounting firms in Mainland China and Hong Kong[201]. - The PCAOB announced on December 15, 2022, that it could inspect and investigate audit firms in Mainland China and Hong Kong, resulting in the company not being a Commission-Identified Issuer for the fiscal years 2022 and 2023[201]. - The company was identified as a "Commission-Identified Issuer" on May 26, 2022, which could lead to trading prohibitions if audit reports are not inspected for two consecutive years[200]. - The PCAOB's ability to inspect firms may be obstructed by PRC authorities in the future, which could lead to new determinations affecting trading status[201]. - The delisting of the company's ADSs could materially and adversely affect the value of investments[201]. Shareholder Dilution and Rights - The company holds approximately 127.5 million non-vested restricted stocks and 28.0 million share options outstanding, which could lead to dilution if sold[230]. - Holders of ADSs may not receive dividends or distributions if it is deemed illegal or impractical to make them available[235]. - Hong Kong stamp duty may apply to the trading or conversion of the company's ADSs, currently set at a total rate of 0.2% of the greater of the consideration or the value of shares transferred[262]. - The trading prices of the company's ordinary shares and ADSs may be affected by the different characteristics of the capital markets in Hong Kong and the U.S.[256]. - The time required for the exchange between ordinary shares and ADSs may be longer than expected, potentially preventing investors from settling or effecting sales during delays[258].

第137届中国进出口商品交易会（广交会）将于2025年4月15日至5月5日在广州举办。伴随广交会的临 近，白云机场口岸客流呈现稳步增长态势。广州酒店业已迎来客商入住高峰，共建"一带一路"国家采购 商占比显著提升，"商务+度假"类型的客人比例增加。 广州酒店业已迎来广交会客商入住高峰 来自岭南酒店的数据显示，根据当前的预定情况，预计本届春交会期间，酒店普通散客及团队与去年同 期相比有所提升，广交会首期酒店客房收入预计同比会有一定增长；广交会第二期、第三期预计会采取 更为灵活的经营策略，以更为创新型产品及体验来吸引更多新客群，为酒店经营带来新空间。 爱群大酒店在2025年春季广交会第一期岭居创享公寓沿江路店江景双床房已订满，主要以线上渠道预订 为主。价格方面为了保持高性价比，特别推出连住优惠和连住赠餐券的超高性价比套餐，更可凭房卡到 餐厅消费享受折扣等多种实惠措施。今年爱群大酒店岭居创享公寓不仅提供优质的自助早餐，房间内洗 烘一体洗衣机，为客人多天入住清洗其衣物，更增设广交会接驳巴士服务，有望通过交通服务吸引更多 广交会的宾客入住临江房间的爱群大酒店。 另据消息，目前华住在广州拥有146家酒店，已经提前做好充分准 ...