Hotel Operations and Performance - H World Group operated a total of 9,394 hotels (or 912,444 rooms) as of December 31, 2023[2] - Legacy-Huazhu's Q4 2023 ADR was RMB 284, up from RMB 240 in Q4 2022, with an occupancy rate of 80.5%[6] - Legacy-Huazhu's Q4 2023 RevPAR was RMB 229, up from RMB 159 in Q4 2022, with a same-store RevPAR growth of 40.8% YoY[6] - Legacy-DH operated 131 hotels (26,814 rooms) as of December 31, 2023, with 37 hotels in the pipeline[6] - Average daily rate (ADR) in Q4 2023 was €115, compared to €122 in Q4 2022 and €114 in the previous quarter[7] - Occupancy rate for Legacy-DH hotels in Q4 2023 was 63.8%, up from 59.3% in Q4 2022 but down from 69.0% in the previous quarter[7] - Revenue per available room (RevPAR) in Q4 2023 was €73, compared to €72 in Q4 2022 and €79 in the previous quarter[7] - The company operates 9,394 hotels with 912,444 rooms in operation across 18 countries as of December 31, 2023[24] - 11% of the company's hotel rooms are operated under the lease and owned model, while 89% are under the managed franchise and franchise model[24] - Total number of operating hotels reached 9,394 with 912,444 rooms as of December 31, 2023[46] - Economy hotels accounted for 4,984 operating hotels with 407,657 rooms and 1,121 hotels in the pipeline[46] - Midscale hotels represented 3,543 operating hotels with 379,614 rooms and 1,503 hotels in the pipeline[46] - Upscale hotels had 704 operating hotels with 98,508 rooms and 397 hotels in the pipeline[46] - Luxury hotels included 16 operating hotels with 2,360 rooms and 2 hotels in the pipeline[46] - Intercity Hotel had 9 operating hotels and 53 hotels in the pipeline in China as of December 31, 2023[47] - Steigenberger had 11 operating hotels and 3 hotels in the pipeline in China as of December 31, 2023[47] Financial Performance - Q4 2023 hotel turnover increased by 55.0% YoY to RMB 20.4 billion, and excluding DH, it increased by 60.6% YoY[2] - Q4 2023 revenue grew by 50.7% YoY to RMB 5.6 billion (USD 786 million), exceeding the guidance of 41% to 45% growth[2] - Q4 2023 net profit attributable to H World Group was RMB 743 million (USD 105 million), compared to a net loss of RMB 124 million in Q4 2022[2] - Q4 2023 EBITDA (non-GAAP) was RMB 1.4 billion (USD 191 million), compared to RMB 529 million in Q4 2022[3] - Total revenue in Q4 2023 was RMB 5.585 billion (USD 786 million), a 50.7% YoY increase but an 11.2% QoQ decrease[9] - Legacy-Huazhu revenue in Q4 2023 was RMB 4.4 billion, a 59.0% YoY increase, exceeding the previously announced guidance of 48% to 52% growth[9] - Legacy-DH revenue in Q4 2023 was RMB 1.2 billion, a 26.6% YoY increase and a 2.2% QoQ increase[9] - Full-year 2023 revenue was RMB 21.9 billion (USD 3.1 billion), a 57.9% YoY increase[10] - Legacy-Huazhu full-year 2023 revenue was RMB 17.4 billion, a 63.7% YoY increase[10] - Legacy-DH full-year 2023 revenue was RMB 4.4 billion, a 38.6% YoY increase[10] - Management and franchised hotel revenue in Q4 2023 was RMB 2.0 billion (USD 284 million), a 74.1% YoY increase but an 11.1% QoQ decrease[11] - Hotel operating costs for Q4 2023 were RMB 4 billion (USD 563 million), a 17.6% YoY increase from RMB 3.4 billion in Q4 2022, primarily due to business recovery and smaller rent reductions[13] - Legacy-Huazhu division's hotel operating costs in Q4 2023 were RMB 2.9 billion, accounting for 67.0% of revenue, compared to 88.7% in Q4 2022[13] - Full-year 2023 hotel operating costs were RMB 14.3 billion (USD 2 billion), a 16.3% increase from RMB 12.3 billion in 2022[13] - Sales and marketing expenses for Q4 2023 were RMB 326 million (USD 46 million), a 92.9% YoY increase from RMB 169 million in Q4 2022[13] - General and administrative expenses for Q4 2023 were RMB 644 million (USD 91 million), a 46.4% YoY increase from RMB 440 million in Q4 2022[13] - Operating profit for Q4 2023 was RMB 757 million (USD 106 million), compared to an operating loss of RMB 93 million in Q4 2022[15] - Legacy-Huazhu division's operating profit for Q4 2023 was RMB 821 million, compared to an operating loss of RMB 3 million in Q4 2022[15] - Full-year 2023 operating profit was RMB 4.7 billion (USD 662 million), compared to an operating loss of RMB 294 million in 2022[15] - Operating profit margin for Q4 2023 was 13.6%, compared to -2.5% in Q4 2022[15] - Full-year 2023 operating profit margin was 21.5%, compared to -2.1% in 2022[15] - Equity securities fair value change income for 2023 was RMB 109 million (USD 15 million), compared to a loss of RMB 359 million in 2022, primarily due to gains from UBOX fair value changes and losses from Accor shares in 2022[17] - Net income attributable to Huazhu Group Limited for Q4 2023 was RMB 743 million (USD 105 million), compared to a net loss of RMB 124 million in Q4 2022 and net income of RMB 1.3 billion in the previous quarter[17] - Full-year 2023 net income attributable to Huazhu Group Limited was RMB 4.1 billion (USD 575 million), compared to a net loss of RMB 1.8 billion in 2022[17] - Q4 2023 EBITDA (non-GAAP) was RMB 1.4 billion (USD 191 million), compared to RMB 529 million in Q4 2022 and RMB 2.1 billion in the previous quarter[17] - Full-year 2023 EBITDA (non-GAAP) was RMB 6.8 billion (USD 961 million), compared to RMB 164 million in 2022[18] - Operating cash inflow for Q4 2023 was RMB 2.4 billion (USD 339 million), with full-year operating cash inflow reaching RMB 7.7 billion (USD 1.1 billion), compared to RMB 1.6 billion in 2022[19] - As of December 31, 2023, the company's cash and cash equivalents totaled RMB 6.9 billion (USD 978 million), with restricted cash at RMB 764 million (USD 108 million)[19] - Total revenue for 2023 reached RMB 21.882 billion (USD 3.082 billion), a significant increase from RMB 13.862 billion in 2022[29] - Net profit attributable to Huazhu Group Limited for 2023 was RMB 4.085 billion (USD 575 million), compared to a net loss of RMB 1.821 billion in 2022[30] - Total liabilities decreased from RMB 52.704 billion in 2022 to RMB 51.283 billion (USD 7.223 billion) in 2023[28] - Total equity increased from RMB 8.803 billion in 2022 to RMB 12.249 billion (USD 1.725 billion) in 2023[28] - Operating profit for 2023 was RMB 4.714 billion (USD 662 million), a significant improvement from an operating loss of RMB 294 million in 2022[29] - Revenue from leased and owned hotels increased to RMB 13.796 billion (USD 1.943 billion) in 2023, up from RMB 9.148 billion in 2022[29] - Revenue from managed and franchised hotels grew to RMB 7.694 billion (USD 1.084 billion) in 2023, compared to RMB 4.405 billion in 2022[29] - Total operating costs and expenses for 2023 were RMB 17.568 billion (USD 2.476 billion), up from RMB 14.705 billion in 2022[29] - Basic earnings per share for 2023 were RMB 1.28 (USD 0.18), a significant improvement from a loss of RMB 0.59 per share in 2022[30] - Total assets increased from RMB 61.507 billion in 2022 to RMB 63.532 billion (USD 8.948 billion) in 2023[28] - Net profit (loss) for the year 2023 was RMB 4,131 million (USD 582 million), a significant improvement from the net loss of RMB 1,849 million in 2022[31] - Operating cash flow for 2023 was RMB 7,674 million (USD 1,080 million), compared to RMB 1,564 million in 2022[31] - Capital expenditures for 2023 were RMB 901 million (USD 127 million), a decrease from RMB 1,053 million in 2022[31] - Net cash used in investing activities for 2023 was RMB 1,477 million (USD 207 million), compared to RMB 522 million in 2022[31] - Net cash used in financing activities for 2023 was RMB 3,720 million (USD 523 million), compared to RMB 1,394 million in 2022[32] - Adjusted net profit (non-GAAP) for 2023 was RMB 4,119 million (USD 580 million), compared to a net loss of RMB 1,375 million in 2022[33] - Basic adjusted earnings per share (non-GAAP) for 2023 were RMB 1.29 (USD 0.18), compared to a loss of RMB 0.44 in 2022[33] - Diluted adjusted earnings per share (non-GAAP) for 2023 were RMB 1.26 (USD 0.18), compared to a loss of RMB 0.44 in 2022[33] - Basic adjusted earnings per ADS (non-GAAP) for 2023 were RMB 12.94 (USD 1.82), compared to a loss of RMB 4.42 in 2022[33] - Diluted adjusted earnings per ADS (non-GAAP) for 2023 were RMB 12.65 (USD 1.78), compared to a loss of RMB 4.42 in 2022[33] - Net profit attributable to Huazhu Group Ltd. (GAAP) for the full year 2023 reached RMB 4,085 million, a significant improvement from a loss of RMB 1,821 million in 2022[34] - Adjusted EBITDA (non-GAAP) for the full year 2023 was RMB 6,874 million, compared to RMB 610 million in 2022, reflecting strong operational recovery[34] - Total revenue for Legacy-Huazhu in 2023 was RMB 17,438 million, a 63.7% increase from RMB 10,655 million in 2022[36] Future Growth and Expansion - H World Group expects Q1 2024 revenue growth of 12% to 16% YoY, and full-year 2024 revenue growth of 8% to 12% YoY[4] - H World Group plans to open approximately 1,800 hotels and close around 650 hotels in 2024[5] - For 2024, Huazhu expects revenue growth of 8% to 12% year-over-year, with plans to open approximately 1,800 hotels and close around 650 hotels[19] - Q1 2024 revenue is projected to grow between 12% to 16% compared to Q1 2023[19] - The number of hotels under development as of December 31, 2023, was 3,061, indicating strong future growth potential[38] Key Financial Metrics and Non-GAAP Measures - The company emphasizes the use of EBITDA and adjusted EBITDA as key financial metrics to evaluate operating performance, excluding depreciation, amortization, and equity incentive expenses[22] - Adjusted EBITDA is considered a better reflection of the company's hotel financial performance, excluding equity incentive expenses and gains/losses from fair value changes in equity securities[22] - The company acknowledges that EBITDA and adjusted EBITDA have limitations and should not be considered as substitutes for net income or other GAAP measures[23] - The company provides reconciliations of non-GAAP financial measures, including EBITDA and adjusted EBITDA, to GAAP financial statements[23] Hotel Revenue and Performance by Segment - Revenue from leased and owned hotels in Q4 2023 was RMB 2,288 million, a 48.9% increase from RMB 1,537 million in Q4 2022[35] - Revenue from managed and franchised hotels in Q4 2023 was RMB 1,992 million, a 76.3% increase from RMB 1,130 million in Q4 2022[35] - The average daily rate (ADR) for leased and owned hotels increased by 36.9% year-over-year to RMB 372 in 2023[40] - The occupancy rate for leased and owned hotels rose by 18.9 percentage points to 82.8% in 2023[40] - The revenue per available room (RevPAR) for leased and owned hotels surged by 77.4% year-over-year to RMB 308 in 2023[40] - The RevPAR for economy hotels increased by 44.4% year-over-year to RMB 186 in 2023[42] - The ADR for mid-scale and upper mid-scale hotels grew by 21.7% year-over-year to RMB 369 in 2023[42] - The occupancy rate for mid-scale and upper mid-scale hotels rose by 16.2 percentage points to 81.4% in 2023[42] - The total number of hotels increased by 2 to 131 in Q4 2023, with 26,814 rooms[43] - The ADR for leased hotels in Europe increased by 3.1% year-over-year to €118 in Q4 2023[44] - The occupancy rate for leased hotels in Europe rose by 4.7 percentage points to 64.7% in Q4 2023[44] - The RevPAR for leased hotels in Europe increased by 11.2% year-over-year to €76 in Q4 2023[44] - Average daily rate (ADR) for leased and owned hotels increased by 4.6% to €115 in 2023 compared to €110 in 2022[45] - Occupancy rate for leased and owned hotels rose by 8.7 percentage points to 64.7% in 2023 from 56.0% in 2022[45] - Revenue per available room (RevPAR) for leased and owned hotels grew by 20.9% to €74 in 2023 from €61 in 2022[45] Asset and Liability Management - Total assets increased from RMB 61,507 million in 2022 to RMB 63,532 million in 2023, with cash and cash equivalents rising from RMB 3,583 million to RMB 6,946 million[26] - Property and equipment net decreased from RMB 6,784 million in 2022 to RMB 6,097 million in 2023[26] - Operating lease right-of-use assets decreased from RMB 28,970 million in 2022 to RMB 25,658 million in 2023[26] - Total liabilities decreased from RMB 52.704 billion in 2022 to RMB 51.283 billion (USD 7.223 billion) in 2023[28] - Total equity increased from RMB 8.803 billion in 2022 to RMB 12.249 billion (USD 1.725 billion) in 2023[28] Brand Portfolio - The company's brands include Hi Inn, Yitel, HanTing, Ji Hotel, Starway Hotel, Orange Hotel, Orange Crystal Hotel, Manxin Hotel, and others[24]

H World Group Limited (HTHT) is scheduled to report fourth-quarter 2023 results on Mar 20. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 14.3%.Q4 EstimatesThe Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at 31 cents, up 616.7% year over year. In the past 30 days, estimate revisions have been unchanged. In the last reported quarter, HTHT registered a loss of 6 cents. The consensus mark for revenues is pegged at $760 million, suggesting a 41.5 ...

SINGAPORE and SHANGHAI, China, March 08, 2024 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”) a key player in the global hotel industry, today announced that it will schedule to release its unaudited financial results for the fourth quarter and full year of 2023 on Wednesday, March 20, 2024 (Hong Kong time), after the trading hours of The Stock Exchange of Hong Kong Limited and before the opening of the U.S. market. H World’s management will host a conferen ...

SINGAPORE and SHANGHAI, China, March 08, 2024 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ:HTHT) ("H World", "we" or "our") a key player in the global hotel industry, today announced that it will schedule to release its unaudited financial results for the fourth quarter and full year of 2023 on Wednesday, March 20, 2024 (Hong Kong time), after the trading hours of The Stock Exchange of Hong Kong Limited and before the opening of the U.S. market. H World's management will host a conference call at 9 p.m ...

Group 1 - H World Group is well-positioned to maintain its earnings-beat streak, having a history of beating earnings estimates with an average surprise of 8.33% over the last two quarters [1] - In the last reported quarter, H World Group achieved earnings of $0.56 per share, surpassing the Zacks Consensus Estimate of $0.49 per share by 14.29% [1] - The previous quarter also saw H World Group exceed expectations, posting earnings of $0.43 per share against an estimate of $0.42 per share, resulting in a surprise of 2.38% [1] Group 2 - Recent estimates for H World Group have been increasing, with a positive Zacks Earnings ESP indicating a strong likelihood of an earnings beat [2] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [2] - H World Group currently has an Earnings ESP of +21.31%, reflecting analysts' bullish sentiment regarding its near-term earnings potential [3] Group 3 - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [3] - A positive Earnings ESP combined with a Zacks Rank of 2 (Buy) suggests that H World Group is likely to beat earnings expectations again [3] - It is important to check a company's Earnings ESP before quarterly releases to enhance the chances of successful investment decisions [4]

H World Group (HTHT) closed the last trading session at $33.30, gaining 0.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $58.75 indicates a 76.4% upside potential.The mean estimate comprises four short-term price targets with a standard deviation of $5.50. While the lowest estimate of $51 indicates a 53.2% increase from the current price level, the most optimistic analyst expec ...

SINGAPORE and SHANGHAI, China, Jan. 22, 2024 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ:HTHT) ("H World", "we" or "our"), a key player in the global hotel industry, today announced preliminary results for hotel operations in the fourth quarter ("Q4 2023") and the full year ended December 31, 2023. Business update For our Legacy-Huazhu business, our RevPAR in Q4 2023 recovered to 120% of the 2019 level, supported by the sustained recovery in both leisure and business travel demand. Breaking down into ...

H World Group Limited (NASDAQ:HTHT) Q3 2023 Earnings Call Transcript November 27, 2023 8:00 PM ET Company Participants Jason Chen - Director, Investor Relations HE Jihong - Chief Financial Officer JIN Hui - Chief Executive Officer Conference Call Participants Ronald Leung - Bank of America Simon Cheung - Goldman Sachs Sijie Lin - CICC Operator Thank you for standing by and welcome to the H World Q3 2023 Earnings Conference Call. All participants are in a listen-only mode. There will be a presentation follow ...

Third Quarter of 2023 Earnings Call ...

Financial Performance - Hotel revenue for Q3 2023 increased by 55.1% year-over-year to RMB 23.5 billion, and by 59.2% excluding Steigenberger Hotels GmbH[2] - Total revenue for Q3 2023 grew by 53.6% year-over-year to RMB 6.3 billion (approximately $861 million), exceeding previous guidance of 43% to 47% growth[2] - Net profit attributable to the company for Q3 2023 was RMB 1.3 billion (approximately $183 million), a significant recovery from a net loss of RMB 717 million in Q3 2022[2] - Adjusted EBITDA for Q3 2023 was RMB 2.2 billion (approximately $300 million), compared to RMB 491 million in Q3 2022[2] - Operating profit for Q3 2023 was RMB 1.9 billion (approximately USD 262 million), compared to RMB 500 million in Q3 2022 and RMB 1.4 billion in the previous quarter[11] - The operating profit margin was 30.4%, significantly up from 12.2% in Q3 2022 and 25.0% in the previous quarter[11] - EBITDA for Q3 2023 was RMB 2.1 billion (approximately USD 293 million), compared to RMB 149 million in Q3 2022 and RMB 1.7 billion in the previous quarter[12] - The company reported a year-over-year revenue growth of 61.8% from the Legacy-Huazhu segment, with revenue of RMB 5.1 billion in Q3 2023[7] - The company reported an adjusted net profit of RMB 1,390 million for Q3 2023, compared to an adjusted net loss of RMB 375 million in Q3 2022[25] Hotel Operations - As of September 30, 2023, the company operated 9,157 hotels with a total of 885,756 rooms[4] - The company opened 545 hotels in Q3 2023 and closed 139 hotels during the same period[4] - Legacy-DH had 129 operating hotels with an occupancy rate of 69.0% in Q3 2023, up from 66.1% in Q3 2022[6] - The total number of hotels operated by Huazhu Group as of September 30, 2023, was 9,028, with a net increase of 406 hotels during the quarter[27] - The total number of hotels as of September 30, 2023, was 9,157, with a net increase of 1 hotel during the third quarter[31] - The company temporarily closed 8 hotels in Q3 2023 for brand upgrades or business model changes[28] - The company has 24 hotels under development as of September 30, 2023[31] Revenue Breakdown - Revenue from leased and owned hotels was RMB 3.878 billion (approximately USD 531 million), a year-over-year increase of 43.9% and a quarter-over-quarter increase of 8.0%[8] - Revenue from management franchise and licensed hotels was RMB 2.268 billion (approximately USD 311 million), showing a year-over-year increase of 72.7% and a quarter-over-quarter increase of 22.2%[8] - The average daily rate (ADR) for Legacy-Huazhu hotels in Q3 2023 was RMB 324, up from RMB 254 in Q3 2022[5] - The average revenue per available room (RevPAR) for leased and owned hotels rose by 65.8% year-over-year to RMB 356 in Q3 2023[29] - The average revenue per available room (RevPAR) for economy hotels increased by 40.1% year-over-year, reaching €216 as of September 30, 2023[30] - The average daily rate (ADR) for managed and franchised hotels rose by 37.3% year-over-year, reaching €209 for the same period[30] Cash Flow and Financial Position - In Q3 2023, operating cash inflow was RMB 1.2 billion (approximately $163 million) while investment cash outflow was RMB 2 billion (approximately $282 million) primarily due to the purchase of RMB 1.8 billion in time deposits and financial products[13] - As of September 30, 2023, total cash and cash equivalents amounted to RMB 5.8 billion (approximately $790 million) with restricted cash of RMB 529 million (approximately $73 million)[13] - Total debt and net cash balance as of September 30, 2023, were RMB 5.2 billion (approximately $714 million) and RMB 1.1 billion (approximately $149 million) respectively[13] - The company holds RMB 2.8 billion in time deposits and financial products, including RMB 2 billion in short-term investments, and has available undrawn credit facilities of RMB 2.7 billion[13] - Total current assets increased from RMB 9,178 million on December 31, 2022, to RMB 10,798 million as of September 30, 2023, representing a growth of 17.6%[20] - Cash and cash equivalents rose from RMB 3,583 million to RMB 5,767 million, an increase of 60.7%[20] - Total liabilities decreased from RMB 52,704 million to RMB 48,288 million, a reduction of 8.0%[21] - Total equity increased significantly from RMB 8,803 million to RMB 14,474 million, reflecting a growth of 64.5%[21] - The company reported a short-term debt increase from RMB 3,288 million to RMB 4,234 million, a rise of 28.8%[21] Future Outlook - The company expects Q4 2023 revenue to grow between 41% to 45% year-over-year, or 48% to 52% excluding DH[3] - For Q4 2023, the company expects revenue growth between 41% to 45% compared to Q4 2022, or 48% to 52% growth excluding DH[13] - Huazhu Group plans to expand its market presence by opening 1,000 new hotels in 2024[22] - Huazhu Group plans to open 2,935 new hotels, indicating a strong pipeline for future growth[28] - Future growth strategies include expanding its hotel portfolio and enhancing brand presence in various markets[18] Key Metrics - The occupancy rate for all operating Legacy-Huazhu hotels in Q3 2023 was 85.9%, compared to 76.0% in Q3 2022[5] - The occupancy rate for leased and owned hotels improved by 14.7 percentage points year-over-year to 87.8% in Q3 2023[29] - The average daily rate for leased hotels remained stable at €113, with a year-over-year change of 0.0%[33] - The average occupancy rate for leased hotels increased by 4.0 percentage points year-over-year, reaching 71.4%[33]