Investment Rating - Buy (Maintained) [7] Core Views - The company's Q3 2024 performance was largely in line with expectations, with revenue reaching RMB 6.442 billion, a YoY increase of 2.45%, within the guidance range of 2%-5% [2] - Domestic RevPAR declined due to a high base effect, with ADR having a greater impact, while overseas operational indicators remained stable [3] - The company continues to expand its hotel network and upgrade its products, raising its full-year store opening guidance to 2,400 stores (previously 2,200 stores) [4] - Operating costs and expenses increased YoY due to business expansion, but the company's performance remained largely in line with expectations [5] - The company emphasized its dividend and share repurchase plans to enhance shareholder returns, including a USD 1 billion share repurchase plan over five years [6] Financial Performance - Q3 2024 revenue: RMB 6.442 billion, up 2.45% YoY, with domestic revenue at RMB 5.162 billion (up 0.96% YoY) and overseas revenue at RMB 1.280 billion (up 8.94% YoY) [2] - Q3 2024 net profit attributable to shareholders: RMB 1.273 billion, down 4.79% YoY [2] - Domestic RevPAR: RMB 256, down 8.1% YoY, with ADR at RMB 301, down 7.0% YoY [3] - Overseas RevPAR: EUR 82, up 3.7% YoY, with ADR at EUR 117, up 2.5% YoY [3] Expansion and Operations - Q3 2024 domestic store openings: 774 new stores (3 directly operated, 771 franchised), with a net increase of 557 stores [4] - Pipeline: 2,899 stores in the domestic market, with 1,082 economy and 1,817 mid-to-high-end hotels [4] - The company is accelerating its store expansion, with a focus on upgrading its product offerings and optimizing its brand portfolio [4] Shareholder Returns - The company announced a 3-year shareholder return plan, including a maximum distribution of USD 2 billion and a USD 1 billion share repurchase plan over five years [6] - In the first three quarters of 2024, the company repurchased approximately USD 270 million worth of shares and returned approximately USD 470 million to shareholders through dividends and share repurchases [6] Future Outlook - The company expects Q4 2024 revenue growth of 1%-5% (excluding DH growth) [12] - Forecasted revenue for 2024-2026: RMB 23.774 billion, RMB 25.455 billion, and RMB 27.561 billion, with YoY growth rates of 8.6%, 7.1%, and 8.3%, respectively [12] - Forecasted net profit attributable to shareholders for 2024-2026: RMB 3.839 billion, RMB 4.524 billion, and RMB 5.134 billion, with YoY growth rates of -5.9%, 17.8%, and 13.5%, respectively [12] Financial Ratios - 2024E P/E: 20.1x, 2025E P/E: 17.1x, 2026E P/E: 15.0x [12] - 2024E P/B: 4.6x, 2025E P/B: 3.6x, 2026E P/B: 2.9x [13]

Investment Rating - The report maintains a "Buy" rating for Huazhu Group-S (01179 HK) and Huazhu (HTHT O) with a target price of HKD 36 01 per share for the Hong Kong-listed stock and USD 46 28 per ADS for the US-listed stock [5] Core Views - Huazhu Group reported Q3 2024 revenue of RMB 6 44 billion (+2 4% YoY) at the lower end of the guidance range Net profit attributable to shareholders was RMB 1 27 billion (-4 8% YoY) while adjusted net profit was RMB 1 37 billion (-10 8% YoY) [1] - For the first three quarters of 2024 the company achieved revenue of RMB 17 87 billion (+9 6% YoY) and net profit attributable to shareholders of RMB 3 00 billion (-10 3% YoY) Adjusted net profit for the period was RMB 3 40 billion (+13 4% YoY) [1] - Domestic RevPAR ADR and occupancy rates in Q3 2024 were RMB 256 (-8 1% YoY) RMB 301 (-7 0% YoY) and 84 9% (-1 0 pct YoY) respectively International RevPAR ADR and occupancy rates were EUR 82 (+3 7% YoY) EUR 117 (+2 5% YoY) and 69 8% (+0 8 pct YoY) respectively [1] - The company accelerated its domestic hotel openings with 774 new hotels in Q3 2024 (a record high) and a net increase of 557 hotels bringing the total domestic hotel count to 10 707 By the end of Q3 2024 the company had opened 1 910 hotels domestically achieving 87% of its annual target of 2 200+ hotels [1] Financial Performance - Operating costs increased to 59 0% (+1 5 pct YoY) in Q3 2024 mainly due to rising labor costs (21 3% +2 4 pct YoY) Sales expenses were 4 7% (+0 1 pct YoY) and management expenses were 10 4% (+1 9 pct YoY) Net profit margin attributable to shareholders was 19 8% (-1 5 pct YoY) while adjusted net profit margin was 21 3% (-3 2 pct YoY) [2] - Revenue growth guidance for Q4 2024 is 1%-5% (regardless of DH inclusion) The report forecasts net profit attributable to shareholders of RMB 3 7 billion RMB 4 5 billion and RMB 5 0 billion for 2024 2025 and 2026 respectively [2] Growth and Profitability - Revenue growth is projected at 7 9% 6 7% and 5 8% for 2024 2025 and 2026 respectively [3] - Net profit attributable to shareholders is expected to grow by 21 6% and 12 2% in 2025 and 2026 respectively [3] - ROE is forecasted at 23 1% 21 8% and 19 5% for 2024 2025 and 2026 respectively [3] Valuation - The report values Huazhu Group at 24x PE for 2025 corresponding to a fair value of HKD 36 01 per share for the Hong Kong-listed stock and USD 46 28 per ADS for the US-listed stock [2]

Investment Rating - Maintains a "Buy" rating for Huazhu Group (1179 HK/HTHT US) with an upward revision of the target price to HKD 32.9 for HK shares and USD 41.1 for US shares [2][3] Core Views - Huazhu Group's 3Q24 revenue reached RMB 6.4 billion, a YoY increase of 2.4%, with domestic revenue growing 1% and overseas revenue growing 8.9% [2] - Net profit attributable to shareholders in 3Q24 was RMB 1.27 billion, a YoY decline of 4.8%, impacted by one-off factors [2] - The company opened 790 new stores in 3Q24, setting a new quarterly record, with 774 net new stores in China and 16 overseas [2] - Domestic RevPAR in 3Q24 was RMB 256, a YoY decline of 8.1%, primarily due to high base effects from the previous year and adverse weather conditions [2] - Overseas business restructuring is expected to drive long-term high-quality growth, with one-time restructuring costs of RMB 81 million in 3Q24 [2] Financial Performance and Forecasts - Revenue for 2024E is projected at RMB 23.6 billion, with a YoY growth of 7.8%, while net profit attributable to shareholders is expected to be RMB 3.525 billion, a YoY decline of 13.7% [4] - Gross margin for 2024E is forecasted at 35.7%, with operating margin at 19.7% [4] - The company's PE ratio for 2024E is estimated at 22.1x for US shares and 22.0x for HK shares [4] Operational Metrics - Domestic ADR in 3Q24 was RMB 301, a YoY decline of 7%, while OCC remained relatively stable at 84.9%, down 1ppt YoY [15] - Overseas ADR in 3Q24 was USD 117, a YoY increase of 2.5%, with OCC at 69.8%, up 0.8ppt YoY [15] Market Valuation and Target Price - The target price for Huazhu Group's HK shares is set at HKD 32.9, representing a potential upside of 26.1% from the current price of HKD 26.1 [3] - The target price for Huazhu Group's US shares is set at USD 41.1, representing a potential upside of 24.2% from the current price of USD 33.1 [3] Industry Context - The hotel industry's valuation multiple has increased, leading to an upward revision of Huazhu Group's target price based on a 14x 2025E EV/EBITDA, a 20% discount compared to the average of international hotel groups [2]

Investment Rating - Maintains an "Outperform" rating for Huazhu Group-S (1179 HK) [1][16] Core Views - Q3 2024 revenue increased slightly by 2 4% to RMB 6 44 billion, within the lower range of the guidance (2-5% growth) [1][7] - Adjusted net profit declined by 10 8% YoY to RMB 1 37 billion, and adjusted EBITDA decreased by 9 5% to RMB 2 11 billion, slightly below Bloomberg consensus estimates [1][7] - Domestic hotel RevPAR declined by 7 9% YoY to RMB 256, impacted by high base effects and weather disruptions [1][8] - Overseas hotel revenue grew by 8 9% YoY to RMB 1 28 billion, with a net loss of RMB 89 million due to restructuring costs [1][11] Domestic Hotel Operations - Domestic hotel RevPAR for mature stores decreased by 10 3% YoY to RMB 258, with ADR down 8 4% and occupancy rate down 1 8 percentage points [1][8] - 774 new hotels opened in Q3 2024, with a net increase of 557 hotels, bringing the total domestic hotel count to 10,707 by the end of Q3 2024 [1][8] - Domestic revenue grew by 1 0% YoY to RMB 5 162 billion, with franchised revenue up 14 7% and direct-operated revenue down 10 4% [1][8] Overseas Hotel Operations - Overseas DH RevPAR increased by 3 7% YoY, driven by a 2 5% increase in ADR and a 0 8 percentage point increase in occupancy rate [1][11] - The company exited 14 self-operated hotels in Denmark and fully took over the Zleep brand, with restructuring costs of RMB 81 million [1][11] Future Outlook - Q4 2024 revenue is expected to grow by 1-5%, with RevPAR expected to decline in the mid-single digits but with a narrowing YoY decline [1][12] - The company plans to accelerate its expansion in lower-tier cities, upgrade its mid-to-high-end hotel brands, and strengthen direct sales capabilities [1][12] - Overseas operations are expected to improve in 2025 due to ongoing asset-light optimization and operational enhancements [1][12] Financial Forecasts - Revenue for 2024E is projected at RMB 23 305 billion, with adjusted net profit of RMB 3 935 billion [4] - Adjusted EPS for 2024E is forecasted at RMB 1 23, with a PE ratio of 19 8x [4] - ROE is expected to be 25 2% in 2024E, with an EBIT margin of 16 9% [4]

Investment Rating - Buy (Maintained) [1] Core Views - Huazhu Group's Q3 revenue was at the lower end of guidance, with operating profit down 10% YoY [2] - Domestic business net profit declined 1% YoY, while DH business narrowed its operating loss [2] - Domestic business accelerated store openings, with 774 new stores in Q3, reaching a total of 10,707 stores by Q3 2024 [3] - RevPAR declined 8% YoY due to a high base, but Q4 revenue growth guidance is 2-5%, indicating a narrowing decline [3] - Huazhu Group is a leader in the hotel industry, with competitive advantages in brand, traffic, and technology, and has expanded against the trend during the pandemic [4] Financial Performance - Q3 revenue was RMB 6.442 billion, up 2.4% YoY, at the lower end of the 2-5% guidance range [2] - Q3 net profit attributable to shareholders was RMB 1.273 billion, down 5% YoY, with adjusted net profit of RMB 1.372 billion, down 11% YoY [2] - Domestic business revenue was RMB 5.162 billion, up 1% YoY, contributing RMB 1.356 billion in net profit, down 1% YoY [2] - DH business revenue was RMB 1.28 billion, up 9% YoY, with a net loss of RMB 83 million, narrowing from the previous year [2] Store Expansion - Total stores reached 10,707 by Q3 2024, up 18.6% YoY, with 95% being franchised stores [3] - Q3 saw 774 new store openings, with a net increase of 556 stores, and a target of 2,200 new stores for the full year [3] - Domestic room count reached 1.03 million, up 20% YoY, with franchised rooms at 950,000, up 23% YoY [3] RevPAR and Occupancy - Overall RevPAR in Q3 was RMB 256, down 8.4% YoY, with occupancy at 84.9%, down 1.0 pct YoY [3] - Huazhu's RevPAR was RMB 244, down 2.4% YoY, with occupancy at 82.6%, up 0.8 pct YoY [3] - Q4 revenue growth guidance is 1-5%, implying a low single-digit decline in RevPAR, narrowing from Q3 [3] Financial Forecasts - Adjusted net profit forecasts for 2024-2026 are RMB 3.684 billion, RMB 4.065 billion, and RMB 4.481 billion, respectively [4] - PE ratios for 2024-2026 are 22x, 20x, and 18x, respectively [4] Market Data - Closing price: HKD 26.90 [7] - 52-week low/high: HKD 20.80/34.40 [7] - Price-to-book ratio: 6.86x [7] - Market capitalization: HKD 86.36 billion [7] Financial Ratios - ROE for 2023A: 33.66%, expected to decline to 18.39% by 2026E [12] - Gross margin for 2023A: 34.46%, expected to rise to 36.50% by 2026E [12] - Net profit margin for 2023A: 18.67%, expected to be 15.58% by 2026E [12]

Hotel Operations - As of September 30, 2024, the company operated 10,845 hotels with a total of 1,062,546 rooms[12] - The company opened 774 hotels in Q3 2024 and closed 217 hotels during the same period[12] - As of September 30, 2024, there were 2,925 hotels in the pipeline, including 2,899 from Legacy-Huazhu[12] - As of September 30, 2024, Legacy-DH operates 138 hotels with a total of 27,687 rooms, including 15,700 rooms under lease and 11,987 under management and franchising[17] - The company operates 4,057 Hanting hotels, with 355,690 rooms currently in operation[79] Financial Performance - In Q3 2024, hotel operating revenue increased by 10.7% year-over-year to RMB 26 billion, with Legacy-Huazhu revenue growing by 11.0% and Legacy-DH revenue increasing by 7.8%[5] - Revenue for Q3 2024 rose by 2.4% year-over-year to RMB 6.4 billion (approximately $918 million), aligning with previous guidance of 2% to 5% growth[5] - Net profit attributable to the company for Q3 2024 was RMB 1.3 billion (approximately $181 million), consistent with Q3 2023 results[6] - Adjusted EBITDA for Q3 2024 was RMB 2.1 billion (approximately $300 million), down from RMB 2.3 billion in Q3 2023[7] - Total revenue for Q3 2024 was RMB 6.442 billion (approximately $918 million), representing a year-over-year increase of 2.4% and a quarter-over-quarter increase of 4.8%[19] - Operating profit was RMB 1.7 billion (approximately USD 245 million), compared to RMB 1.9 billion in Q3 2023 and RMB 1.6 billion in the previous quarter[27] - The operating profit margin for Q3 2024 was 26.7%, down from 30.4% in Q3 2023 and 25.6% in the previous quarter[28] - Cash flow from operations in Q3 2024 was RMB 1.7 billion (approximately USD 242 million)[32] - The company reported a net loss of RMB 83 million from the Legacy-DH segment in Q3 2024, including one-time restructuring costs of RMB 81 million[29] Revenue Breakdown - Revenue from the Legacy-Huazhu segment in Q3 2024 was RMB 5.2 billion, a year-over-year increase of 1.0% and a quarter-over-quarter increase of 6.9%[19] - Revenue from management and franchised hotels in Q3 2024 was RMB 2.6 billion, a year-over-year increase of 14.7% and a quarter-over-quarter increase of 11.5%[20] - Legacy-DH's average revenue per available room (RevPAR) in Q3 2024 was €82, compared to €79 in Q3 2023 and €82 in the previous quarter[17] - The revenue from management franchise and licensed hotels for the quarter ended September 30, 2023, was RMB 2,238 million, compared to RMB 2,305 million in the same quarter of 2024, indicating a decrease of 2.9%[66] Cost and Expenses - Operating costs for hotels in Q3 2024 were RMB 3.8 billion, compared to RMB 3.6 billion in Q3 2023, primarily due to increased personnel costs from network expansion[23] - General and administrative expenses in Q3 2024 were RMB 672 million, up from RMB 539 million in Q3 2023, mainly due to an increase in employee numbers and stock incentives[25] Market Trends - Average daily rate for Legacy-Huazhu hotels in Q3 2024 was RMB 301, down from RMB 324 in Q3 2023[13] - Occupancy rate for all operating Legacy-Huazhu hotels in Q3 2024 was 84.9%, compared to 85.9% in Q3 2023[13] - The occupancy rate for all operating Legacy-DH hotels in Q3 2024 was 69.8%, up from 69.0% in Q3 2023 and 68.3% in the previous quarter[17] - The occupancy rate for managed and franchised hotels improved to 65.5%, an increase of 1.1 percentage points year-over-year[77] Cash and Debt - As of September 30, 2024, total cash and cash equivalents amounted to RMB 7.2 billion (approximately USD 1 billion)[32] - The company had total debt of RMB 5.4 billion (approximately USD 769 million) as of September 30, 2024[32] Non-GAAP Measures - EBITDA is emphasized as a key financial metric, reflecting operational performance before financing and tax impacts, and is widely used in the hospitality industry[40] - Adjusted EBITDA is used to assess the operating performance of hotels, excluding stock-based compensation and other non-operational gains or losses[40] - The company believes that non-GAAP financial measures, such as adjusted EBITDA, provide meaningful supplemental information for evaluating performance[42] - The company acknowledges the limitations of EBITDA and adjusted EBITDA, as they do not reflect depreciation, interest, and tax expenses[41] Future Outlook - The company expects Q4 2024 revenue to grow between 1% and 5% compared to Q4 2023, excluding Legacy-DH[11] - The company plans to temporarily close 12 hotels for brand upgrades or business model changes in the third quarter of 2024[69] - The company plans to open 1,091 new economy hotels, indicating a strong growth strategy in the budget segment[79]

Investment Rating - The report assigns a "Buy" rating to Huazhu Group-S (01179) for the next 6 months [1] Financial Performance - Q2 2024 revenue reached RMB 6.15 billion, up 11.2% YoY [1] - Net profit attributable to shareholders was RMB 1.1 billion, increasing 5.1% YoY [1] - Operating profit margin improved to 25.6%, up 0.6 percentage points YoY [1] - Domestic hotel revenue grew 11.1% YoY to RMB 4.8 billion [1] - Deutsche Hospitality revenue increased 11.6% YoY to RMB 1.3 billion [1] - Direct-operated revenue rose 2.5% YoY to RMB 3.7 billion [1] - Franchise revenue surged 25.8% YoY to RMB 2.3 billion [1] Operational Metrics - Domestic RevPAR declined 2.0% YoY to RMB 244, with recovery rate at 118.4% compared to 2019 levels [1] - Domestic ADR decreased 3.0% YoY to RMB 296, representing 125% of 2019 levels [1] - Domestic occupancy rate improved 0.7 percentage points YoY to 82.6%, reaching 95.1% of 2019 levels [1] - Deutsche Hospitality RevPAR increased 4.5% YoY to €82, with recovery rate improving 17.2 percentage points to 115% [1] Expansion Strategy - Opened 572 new hotels in Q2 2024, including 567 domestic properties [1] - Achieved 64% of annual new hotel target in H1 2024 [1] - Total domestic hotel count reached 10,150, with 136 international properties [1] - Raised full-year new hotel guidance to 2,200 from previous 1,800 [1] Valuation and Outlook - Forecasts net profit of RMB 4.0/4.6/4.9 billion for 2024-2026 [1] - Current PE ratios stand at 24x/21x/20x for 2024-2026 [1] - Expects Q3 2024 revenue growth of 2%-5% [1] Industry Analysis - The company operates in the non-essential consumer sector, specifically tourism and leisure facilities [1] - Huazhu Group demonstrates leading scale advantages and operational efficiency in the hotel industry [1]

Investment Rating - Maintain "Buy" rating for Huazhu Group-S (1179 HK) [1] Core Views - Huazhu Group demonstrated resilience in Q2 2024 with revenue of RMB 6 15 billion (+11 2% YoY) and net profit attributable to shareholders of RMB 1 067 billion (+5% YoY) [1] - The company achieved a milestone of 10 286 global hotels with 10 150 under the Huazhu brand including 9 558 franchised hotels [1] - Huazhu Group announced a 3-year shareholder return plan including up to $2 billion in dividends and a $1 billion share repurchase program [1] Financial Performance - Q2 2024 revenue reached RMB 6 15 billion (+11 2% YoY) at the upper end of guidance [1] - Net profit attributable to shareholders was RMB 1 067 billion (+5% YoY) [1] - EBITDA reached RMB 1 9 billion with adjusted EBITDA of RMB 2 billion (+11% YoY) [1] - Huazhu brand contributed RMB 1 033 billion in net profit (+4% YoY) while DH segment contributed RMB 34 million (+54 5% YoY) [1] Expansion and Market Position - Total hotels reached 10 286 globally with 10 150 under Huazhu brand [1] - 567 new hotels opened in Q2 with net openings of 466 [1] - Pipeline hotels increased to 3 258 [1] - Full-year new hotel opening target raised from 1 800 to 2 200 [1] Operational Metrics - Huazhu brand RevPAR was RMB 244 (-2% YoY) with OCC of 82 6% (+0 7pct YoY) and ADR of RMB 296 (-2 9% YoY) [1] - DH brand RevPAR was €82 (+4 5% YoY) with ADR of €120 (+2 7% YoY) and OCC of 68 3% (+1 2pct YoY) [1] - Q3 2024 revenue growth guidance of 2-5% [1] Shareholder Returns - 3-year shareholder return plan announced with up to $2 billion in dividends [1] - Semi-annual dividends with annual payout ratio of at least 60% of net profit [1] - $1 billion share repurchase program approved effective August 21 2024 [1] Financial Forecasts - 2024-2026 revenue forecast at RMB 23 396 million RMB 24 774 million and RMB 25 953 million respectively [2] - 2024-2026 net profit forecast at RMB 4 165 million RMB 4 438 million and RMB 4 711 million respectively [2] - 2024-2026 EPS forecast at RMB 1 30 RMB 1 38 and RMB 1 47 respectively [2] - 2024-2026 PE ratios forecast at 16x 15x and 14x respectively [2] Valuation Metrics - Current price: HK$22 65 [2] - 2024-2026 PB ratios forecast at 4 1x 3 2x and 2 6x respectively [2] - 2024-2026 EV/EBITDA ratios forecast at 11 46x 10 79x and 10 19x respectively [6]

Investment Rating - The report maintains a "Buy" rating for Huazhu Group-S (01179 HK) and Huazhu (HTHT O) [4] Core Views - Huazhu Group reported strong Q2 2024 results with revenue of 6 15 billion CNY (+11 2% YoY) and adjusted net profit of 1 25 billion CNY (+16 9% YoY) [1] - Domestic occupancy rate (Occ) outperformed ADR while international markets saw growth in both volume and price [1] - Operational efficiency improved with reductions in rent depreciation and consumables costs [1] - The company achieved a milestone of 10 000 domestic hotels and raised its full-year store opening guidance from 1 800 to 2 200+ [1] Financial Performance - Q2 2024 domestic RevPAR was 244 CNY (-2% YoY) with ADR at 296 CNY (-3% YoY) and Occ at 82 6% (+1pp YoY) [1] - International RevPAR grew 5% YoY to 82 EUR with ADR at 120 EUR (+3% YoY) and Occ at 68 3% (+1pp YoY) [1] - H1 2024 revenue reached 11 43 billion CNY (+14 1% YoY) with adjusted net profit of 2 03 billion CNY (+39 0% YoY) [1] Store Expansion - Q2 2024 saw a net increase of 466 domestic hotels (567 new openings) bringing the total to 10 150 [1] - The pipeline of hotels under development increased to 3 294 (3 266 domestic) up by 156 from Q1 2024 [1] - H1 2024 saw 1 136 new openings with 1 064 remaining to meet the revised full-year target [1] Valuation and Forecast - The report forecasts 2024-2026 net profits of 4 2/4 8/5 4 billion CNY respectively [2] - A 24x PE valuation for 2024 implies a fair value of 35 29 HKD/share for HK-listed shares and 45 38 USD/ADS for US-listed shares [2] Financial Ratios - 2024E revenue growth is projected at 10 7% with EBITDA of 7 287 million CNY [3] - ROE is expected to be 25 6% in 2024E declining to 19 9% by 2026E [3] - Net profit margin is forecasted at 17 5% in 2024E increasing to 18 8% by 2026E [3]

Investment Rating - The report assigns a rating of "Accumulate" for the company [4][5]. Core Insights - The company's performance meets expectations, with macroeconomic fluctuations causing a slowdown in growth. However, the company has raised its store opening guidance, indicating an expansion in market share [4][5]. - The adjusted net profit for 2024 has been increased to 4.488 billion RMB (+2.58 billion), while the adjusted net profit for 2025 and 2026 has been lowered to 4.978 billion and 5.943 billion RMB respectively [5]. - The target price is maintained at 42.50 HKD based on an industry average PE of 25x for 2025 [5]. Financial Summary - Revenue for 2023 is projected at 21.882 billion RMB, with a year-on-year growth of 57.86%. The adjusted net profit for 2023 is expected to be 4.085 billion RMB [4]. - The company’s revenue for Q2 2024 is reported at 6.148 billion RMB, reflecting an increase of 11.18%, with adjusted net profit at 1.254 billion RMB (+17.42%) [5]. - The RevPAR for Q2 2024 shows a slight decline of 2.0% year-on-year, with ADR down by 2.9% and occupancy rate up by 0.7 percentage points [5].