Fourth Quarter and Full Year of 2022 Earnings Call H World Group Limited HT and HKEX: 1179) March 28, 2023 H World Group Limited AGENDA ○ 2022 Review and 2023 Focus 2022 Operational and Financial Review Q and A Appendix Our Achievements in 2022 - Legacy-Huazhu 2022年华住中国主要成就 | --- | --- | --- | |------------------------------|-------|-----------------------------------------------------------------------------------------------------------------------------------------| | Key priorities | | Achievements | | ...

Hotel Operations - As of December 31, 2022, the company operated 8,543 hotels with a total of 809,478 rooms[2] - As of December 31, 2022, Legacy-Huazhu operated 8,411 hotels with a total of 783,174 rooms, including 2,544 hotels under development[5] - As of December 31, 2022, there were 2,580 hotels in the pipeline, including 2,544 from Legacy-Huazhu and 36 from Legacy-DH[4] - The company operates 13% of its hotel rooms under lease and ownership models, while 87% are managed through franchise and management agreements[25] - The economy hotel segment includes 4,948 hotels with 389,383 rooms and 1,066 hotels under development[48] - The mid-range hotel segment consists of 2,898 hotels with 317,117 rooms and 1,146 hotels in the pipeline[48] - The upscale hotel segment has 134 hotels with 21,609 rooms and 72 hotels under development[48] - The company has 3,257 Hanting hotels with 288,956 rooms and 652 hotels in the pipeline[48] - The company has 456 Haiyou hotels with 23,998 rooms and 170 hotels under development[48] - The company has 567 Xingcheng hotels with 47,378 rooms and 242 hotels in the pipeline[48] - The company has 1,694 Quanjing hotels with 199,581 rooms and 611 hotels under development[48] - The company has 85 Ibis Styles hotels with 8,864 rooms and 25 hotels in the pipeline[48] - The company has 10 other hotels with 3,584 rooms and 5 hotels under development[49] Financial Performance - In Q4 2022, hotel revenue increased by 10.5% year-over-year to RMB 13.1 billion, while full-year revenue rose by 9.3% to RMB 49.6 billion[2] - For the full year 2022, the company reported a full-year net loss of RMB 1.8 billion, down from a net loss of RMB 465 million in 2021[2] - The company expects Q1 2023 revenue to grow between 61% to 65% year-over-year, or 53% to 57% excluding DH[3] - For the full year 2023, the company projects revenue growth of 42% to 46%, or 46% to 50% excluding DH[20] - The company reported a total revenue for the year ended December 31, 2022, of RMB 13,862 million, a decrease from RMB 14,785 million in 2021, representing a decline of 6.2%[36] - The operating profit for the year ended December 31, 2022, was RMB (294) million, compared to RMB 164 million in 2021, indicating a significant decrease[36] - The net profit attributable to Huazhu Group Limited for the year ended December 31, 2022, was RMB (1,821) million, compared to RMB (465) million in 2021[36] Costs and Expenses - In Q4 2022, hotel operating costs were RMB 3.43 billion (approximately USD 496 million), an increase from RMB 3.2 billion in Q4 2021 and RMB 3.0 billion in Q3 2022[11] - For the full year 2022, hotel operating costs totaled RMB 12.26 billion (approximately USD 1.8 billion), compared to RMB 11.28 billion in 2021[12] - In Q4 2022, sales and marketing expenses were RMB 169 million (approximately USD 25 million), down from RMB 183 million in Q4 2021 and RMB 181 million in Q3 2022[12] - For the full year 2022, sales and marketing expenses were RMB 613 million (approximately USD 89 million), a decrease from RMB 641 million in 2021[12] - In Q4 2022, general and administrative expenses were RMB 440 million (approximately USD 64 million), slightly up from RMB 438 million in Q4 2021 and RMB 405 million in Q3 2022[13] - For the full year 2022, general and administrative expenses reached RMB 1.7 billion (approximately USD 243 million), compared to RMB 1.5 billion in 2021[13] EBITDA and Adjusted EBITDA - EBITDA for Q4 2022 was RMB 529 million, significantly up from RMB 46 million in Q4 2021[3] - The adjusted EBITDA for Q4 2022 was RMB 398 million, compared to RMB 278 million in Q4 2021[3] - The adjusted EBITDA for the year ended December 31, 2022, was RMB 610 million, down from RMB 1,571 million in 2021[36] - The company emphasizes the importance of EBITDA as a financial metric to assess operational and financial performance before financing transactions and tax impacts[23] - Adjusted EBITDA is defined as EBITDA excluding stock-based compensation and unrealized gains (losses) from equity securities, providing a clearer view of hotel operating performance[23] - The company believes that adjusted EBITDA better reflects the operational capabilities of its hotels, as it excludes significant fluctuations from stock-based compensation and equity securities[23] Cash Flow and Liquidity - As of December 31, 2022, total cash and cash equivalents amounted to RMB 3.6 billion (equivalent to $520 million)[19] - The net cash generated from operating activities for Q4 2022 was RMB 1,042 million, a significant increase from RMB 452 million in Q3 2022[31] - The company experienced a cash decrease of RMB 131 million in Q4 2022, following an increase of RMB 537 million in Q3 2022[32] - The total cash and cash equivalents at the end of Q4 2022 were RMB 5,086 million, down from RMB 5,217 million at the end of Q3 2022[32] Debt and Equity - As of December 31, 2022, total debt was RMB 9.9 billion (equivalent to $1.4 billion)[19] - Long-term debt rose significantly from RMB 3,565 million in 2021 to RMB 6,635 million in 2022, an increase of about 86.63%[28] - Total equity decreased from RMB 11,044 million in 2021 to RMB 8,803 million in 2022, a decline of approximately 20.03%[28] Hotel Performance Metrics - In Q4 2022, the average daily rate (ADR) for Legacy-Huazhu hotels was RMB 240, a slight increase from RMB 239 in Q4 2021, but a decrease from RMB 254 in Q3 2022[5] - The occupancy rate for all operating Legacy-Huazhu hotels in Q4 2022 was 66.2%, down from 68.2% in Q4 2021 and 76.0% in Q3 2022[5] - The average revenue per available room (RevPAR) for the Legacy-Huazhu business in Q4 2022 returned to approximately 83% of 2019 levels, with monthly figures of 74%, 87%, and 91% for October, November, and December respectively[20] - The average occupancy rate for the total portfolio was 66.7%, down 5.3 percentage points compared to the previous year[42] - The average daily room rate for managed and franchised hotels increased by 3.0% to RMB 231 for the year ending December 31, 2022[41] - The average daily room revenue for economy hotels decreased by 13.6% to $123 for the year ending December 31, 2022, compared to $142 for the year ending December 31, 2021[43]

Exhibit 99.1 H WORLD GROUP LIMITED INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Unaudited Interim Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2022 F-2 Unaudited Interim Condensed Consolidated Statements of Comprehensive Income for the Nine Months Ended September 30, 2021 and 2022 F-3 Unaudited Interim Condensed Consolidated Statements of Changes in Equity for the Nine Months Ended September 30, 2021 and 2022 F-4 Unaudited Interim Condensed Consol ...

H World Group Limited (NASDAQ:HTHT) Q3 2022 Earnings Conference Call November 28, 2022 8:00 PM ET Company Participants Jason Chen - Director, Investor Relations Qi Ji - Chairman Hui Jin - Chief Executive Officer Jihong He - Chief Executive Officer, International Business Ye Fei - Deputy Chief Financial Officer Conference Call Participants Dan Xu - Morgan Stanley Ronald Leung - Bank of America Simon Cheung - Goldman Sachs Operator Good day, and thank you for standing by. Welcome to the H World Third Quarter ...

Hotel Operations - As of September 30, 2022, the company operated 8,402 hotels with a total of 797,489 rooms[5] - The company opened 429 hotels in Q3 2022, while closing 204 hotels during the same period[5] - The total number of hotels as of September 30, 2022, is 8,402, with 797,489 rooms and 2,313 hotels in the pipeline[48] - The total number of temporarily closed hotels as of September 30, 2022, is 4, due to renovations and seasonal closures[46] - The total number of hotels as of September 30, 2022, was 8,276, with a net increase of 225 hotels compared to the previous year[40] Financial Performance - Total revenue for Q3 2022 grew by 16.2% year-over-year to RMB 4.1 billion (approximately USD 575 million), aligning with previous guidance of 13% to 17% growth[2] - The net loss attributable to the company for Q3 2022 was RMB 717 million (approximately USD 101 million), compared to a net loss of RMB 137 million in Q3 2021[3] - Adjusted EBITDA for Q3 2022 was RMB 491 million (approximately USD 69 million), up from RMB 385 million in Q3 2021[4] - The company's operating profit for Q3 2022 was RMB 500 million (approximately USD 70 million), compared to RMB 72 million in Q3 2021 and RMB 8 million in Q2 2022, with an operating profit margin of 12.2%[16] - The company reported a significant increase in user data, with a notable rise in hotel management and franchise operations contributing to revenue growth[33] Revenue Metrics - Hotel revenue for Q3 2022 increased by 24.4% year-over-year to RMB 15.2 billion, while excluding Steigenberger Hotels AG, the growth was 21.6%[2] - Revenue from the Legacy-Huazhu segment in Q3 2022 was RMB 3,200 million, a year-over-year increase of 7.7% and a quarter-over-quarter increase of 28.4%[10] - The Legacy-DH segment reported revenue of RMB 932 million in Q3 2022, a year-over-year increase of 58.2% and a quarter-over-quarter increase of 1.2%[10] - The management franchise and licensed hotel revenue in Q3 2022 was RMB 1,313 million, a year-over-year increase of 16.4% and a quarter-over-quarter increase of 38.9%[11] Occupancy and Rates - The average daily rate (ADR) for Legacy-Huazhu hotels in Q3 2022 was RMB 254, compared to RMB 246 in Q3 2021[6] - The occupancy rate for all operating Legacy-Huazhu hotels in Q3 2022 was 76.0%, up from 71.9% in Q3 2021[6] - Average revenue per available room (RevPAR) in China recovered to 90% of 2019 levels in Q3 2022, driven by pent-up leisure travel demand during July and August, but slowed to 74% in October due to COVID-19 resurgence[9] - The average daily room rate for leased hotels increased by 19.7% year-over-year to €112.9 as of September 30, 2022[47] - The occupancy rate for leased hotels improved by 19.5 percentage points year-over-year to 67.4% as of September 30, 2022[47] Cash Flow and Debt - Operating cash inflow for Q3 2022 was RMB 452 million (approximately USD 64 million), while investment cash outflow was RMB 525 million (approximately USD 74 million)[21] - As of September 30, 2022, the total cash and cash equivalents amounted to RMB 5.2 billion (approximately USD 728 million) and restricted cash was RMB 400 million (approximately USD 6 million)[21] - The total debt balance as of September 30, 2022, was RMB 11.2 billion (approximately USD 1.6 billion), with available undrawn credit facilities of RMB 2.9 billion[21] - The company’s long-term debt rose to RMB 6,091 million as of September 30, 2022, from RMB 3,565 million as of December 31, 2021[32] Future Outlook - The company expects Q4 2022 revenue to grow by 7% to 11% year-over-year, or decline by 1% to 5% excluding DH[4] - The company plans to focus on cost control and cautious capital expenditure to ensure operational and cash flow safety amid ongoing COVID-19 challenges[9] - The company plans to expand its market presence and enhance customer retention strategies in the upcoming quarters[30] Non-GAAP Measures - The company believes that adjusted EBITDA better reflects the operational performance of its hotels, excluding the impact of stock-based compensation and unrealized gains or losses from equity securities[26] - The company emphasizes that EBITDA and adjusted EBITDA should not be viewed as indicators of future performance, as they do not account for depreciation, amortization, taxes, and interest expenses[27] - The company aims to enhance transparency in financial and operational decision-making by providing non-GAAP financial measures[25]

H World Group Ltd (NASDAQ:HTHT) Q2 2022 Earnings Conference Call August 29, 2022 9:00 PM ET Company Participants Jason Chen - IR Director Ji Qi - Founder & Executive Chairman Jin Hui - CEO Ye Fei - Deputy CFO & VP, Strategic Investment and Capital Market Conference Call Participants Billy Ng - Bank of America Merrill Lynch Simon Cheung - Goldman Sachs Group Sijie Lin - CICC Operator Good day, and thank you for standing by. Welcome to the H World Group Conference Call. I would now like to hand the conference ...

Financial Performance - In Q2 2022, hotel revenue decreased by 10.3% year-over-year to RMB 11.8 billion; excluding Steigenberger Hotels AG, the decline was 18.9%[4] - Revenue for Q2 2022 was RMB 3.4 billion (approximately $504 million), down 5.7% year-over-year, aligning with previous guidance of a 2% to 6% decline[4] - The net loss attributable to the company in Q2 2022 was RMB 350 million (approximately $52 million), compared to a net profit of RMB 378 million in Q2 2021[5] - Adjusted EBITDA for Q2 2022 was RMB 53 million (approximately $7 million), down from RMB 1 billion in Q2 2021[6] - Total revenue for Q2 2022 was RMB 3.382 billion (approximately $504 million), a year-over-year decrease of 5.7% but a quarter-over-quarter increase of 26.1%[13] - Revenue from the Legacy-DH segment in Q2 2022 was RMB 921 million, a year-over-year increase of 311.2% and a quarter-over-quarter increase of 126.8%[13] - Operating profit for Q2 2022 was RMB 8 million (approximately USD 1 million), a significant decrease from RMB 629 million in Q2 2021 and a loss of RMB 708 million in Q1 2022[21] - The operating profit margin for Q2 2022 was 0.2%, down from 17.5% in Q2 2021 and negative 26.4% in Q1 2022[22] - The company reported a basic loss per share of RMB 0.11 for the quarter ended June 30, 2022, compared to earnings of RMB 0.12 in the same quarter of 2021[43] Hotel Operations - As of June 30, 2022, the company operated 8,176 hotels with a total of 773,898 rooms[8] - The company opened 269 hotels in Q2 2022 while closing 86 hotels during the same period[8] - As of June 30, 2022, there were 2,236 hotels under development, including 2,199 from Legacy-Huazhu[8] - The average daily rate (ADR) for Legacy-Huazhu hotels in Q2 2022 was RMB 218, down from RMB 255 in Q2 2021[9] - The occupancy rate for all operating Legacy-Huazhu hotels in Q2 2022 was 64.6%, compared to 82.3% in Q2 2021[9] - The average daily rate was €110, up from €82 in Q2 2021 and €88 in Q1 2022[11] - The occupancy rate for all operating Legacy-DH hotels in Q2 2022 was 59.8%, compared to 24.4% in Q2 2021 and 38.0% in Q1 2022[11] - The company has paused providing full-year revenue and hotel opening guidance due to the impact of COVID-19 and related policies[31] Costs and Expenses - In Q2 2022, hotel operating costs were RMB 3 billion (approximately USD 443 million), an increase from RMB 2.7 billion in Q2 2021 and RMB 2.8 billion in Q1 2022[17] - For the first half of 2022, hotel operating costs totaled RMB 5.8 billion (approximately USD 864 million), compared to RMB 5.2 billion in the same period of 2021[18] - General and administrative expenses in Q2 2022 were RMB 368 million (approximately USD 55 million), compared to RMB 392 million in Q2 2021 and RMB 462 million in Q1 2022[19] - Total operating costs and expenses for the quarter ended June 30, 2022, were RMB 3,528 million, up from RMB 3,320 million in the same quarter of 2021[42] Cash Flow and Debt - Operating cash inflow for Q2 2022 was RMB 989 million (approximately USD 147 million)[27] - As of June 30, 2022, the total cash and cash equivalents amounted to RMB 4.6 billion (approximately USD 693 million), with restricted cash of RMB 38 million (approximately USD 6 million)[29] - The total debt balance as of June 30, 2022, was RMB 10.4 billion (approximately USD 1.6 billion), with available undrawn credit facilities of RMB 3 billion[29] - Cash and cash equivalents decreased from RMB 5,116 million at the end of 2021 to RMB 4,642 million by June 30, 2022, a reduction of about 9.3%[40] - Short-term debt increased from RMB 6,232 million to RMB 6,707 million, reflecting a rise of about 7.6%[41] - Huazhu's long-term debt increased from RMB 3,565 million to RMB 3,696 million, representing a rise of approximately 3.7%[41] Market Strategy and Future Outlook - The company expects Q3 2022 revenue to grow by 13% to 17% year-over-year, or 5% to 9% excluding DH[6] - The company plans to accelerate the exit from the economy soft brand hotel market within the next one to two years to improve overall hotel quality[12] - The company has outlined growth strategies that include enhancing customer retention and leveraging brand strength, although specific numerical targets were not disclosed[39] - The company continues to explore new strategies for market expansion and product development[61] Non-GAAP Measures and Financial Metrics - The company emphasizes the importance of EBITDA as a financial metric, which reflects operational and financial performance before financing transactions and tax impacts[33] - Adjusted EBITDA is used to evaluate the operating performance of hotels, excluding stock-based compensation and unrealized gains or losses from equity securities[34] - The company believes that adjusted EBITDA provides a more accurate reflection of hotel performance capabilities[34] - The company uses non-GAAP financial measures to provide meaningful supplemental information about its performance[36] - The company believes that the use of non-GAAP measures enhances transparency in financial and operational decision-making[36] Impairment and Investment - The company experienced a substantial increase in impairment losses, reporting RMB 91 million for the six months ended June 30, 2022, compared to RMB 9 million for the same period in 2021[44] - The company reported a significant increase in investment income, with a profit of RMB 531 million for the six months ended June 30, 2022, compared to a loss of RMB 314 million for the same period in 2021[44]

Financial Performance - Hotel turnover decreased 10.3% year-over-year to RMB11.8 billion in Q2 2022, with a decrease of 18.9% excluding Legacy-DH[2]. - Revenue in Q2 2022 was RMB3.4 billion (US$504 million), a 5.7% year-over-year decrease, aligning with previous guidance of a 2% to 6% decrease[3]. - Net loss attributable to H World Group Limited was RMB350 million (US$52 million) in Q2 2022, compared to a net income of RMB378 million in Q2 2021[4]. - Adjusted EBITDA (non-GAAP) was RMB53 million (US$7 million) in Q2 2022, down from RMB1.0 billion in Q2 2021[6]. - Total revenue for the quarter ended June 30, 2022, was RMB 3,382 million, a decrease of 6% compared to RMB 3,587 million for the same quarter in 2021[84]. - Net income attributable to H World Group Limited for the quarter was a loss of RMB 350 million, compared to a profit of RMB 378 million in the same quarter of the previous year[84]. - Adjusted EBITDA for the quarter ended June 30, 2022, was RMB 53 million (approximately USD 7 million), a significant decrease from RMB 1,043 million in the same quarter of 2021[88]. - The company reported a loss from operations of RMB 700 million for the six months ended June 30, 2022, compared to a profit of RMB 54 million in the same period of 2021[92]. Operational Metrics - The average daily rate (ADR) for Legacy-Huazhu hotels was RMB218 in Q2 2022, down from RMB255 in Q2 2021[12]. - The occupancy rate for all Legacy-Huazhu hotels was 64.6% in Q2 2022, compared to 82.3% in Q2 2021[12]. - RevPAR in Q2 2022 recovered to 69% of the 2019 level, with April and May 2022 at 53% and 65% respectively, improving to 86% in June 2022 due to lifted lockdowns[60]. - In Q2 2022, DH experienced a RevPAR recovery, with March 2022 RevPAR at 35% lower than 2019 levels, while June 2022 RevPAR was only 1% lower than 2019 levels[62]. - The average daily room rate for leased and owned hotels decreased by 21.7% year-over-year to RMB 243 in Q2 2022[96]. - The occupancy rate for leased and owned hotels was 62.9% in Q2 2022, down 18.1 percentage points from the previous year[96]. - Same-hotel RevPAR for economy hotels decreased by 34.8% year-over-year, from RMB 172 in June 2021 to RMB 112 in June 2022[99]. Cost and Expenses - Hotel operating costs in Q2 2022 were RMB2.97 billion (US$443 million), an increase from RMB2.74 billion in Q2 2021 and RMB2.81 billion in Q1 2022, primarily due to hotel network expansion and business recovery[32]. - In H1 2022, hotel operating costs totaled RMB5.8 billion (US$864 million), up from RMB5.2 billion in H1 2021, with Legacy-Huazhu segment costs representing 93.4% of revenue compared to 76.2% in 2021[33]. - Selling and marketing expenses in Q2 2022 were RMB142 million (US$21 million), a decrease from RMB161 million in Q2 2021 and RMB122 million in Q1 2022, with Legacy-Huazhu segment expenses at 2.6% of revenue[34]. - General and administrative expenses in Q2 2022 were RMB368 million (US$55 million), down from RMB392 million in Q2 2021 and RMB462 million in Q1 2022, with Legacy-Huazhu segment expenses at 10.8% of revenue[36]. - The company experienced a significant increase in personnel costs, which rose to RMB 899 million for the quarter, compared to RMB 757 million in the same quarter of 2021[84]. Cash Flow and Liquidity - Operating cash inflow in Q2 2022 was RMB989 million (US$147 million), while operating cash inflow in H1 2022 was RMB68 million (US$11 million), down from RMB281 million in H1 2021[57][58]. - As of June 30, 2022, the company had cash and cash equivalents of RMB4.6 billion (US$693 million) and total debt of RMB10.4 billion (US$1.6 billion)[59]. - The company reported a net cash provided by operating activities of RMB 989 million (approximately USD 147 million) for the quarter ended June 30, 2022, compared to RMB 1,238 million in the same quarter of 2021[85]. - The company reported a net cash used in investing activities of RMB 201 million (approximately USD 10 million) for the quarter ended June 30, 2022, compared to RMB 582 million in the same quarter of 2021[85]. - The net cash provided by financing activities for the quarter ended June 30, 2022, was RMB 146 million (approximately USD 22 million), a decrease from RMB (185) million in the same quarter of 2021[85]. Future Outlook - H World expects revenue in Q3 2022 to increase by 13% to 17% compared to Q3 2021, or by 5% to 9% excluding Legacy-DH[9]. - The company will suspend providing annual revenue guidance due to the unpredictable business performance caused by COVID-19 in China[63]. - DH is focusing on cash flow improvement measures, including efficiency improvements and re-negotiation of lease contracts[62]. Hotel Portfolio - As of June 30, 2022, H World had a total of 2,236 unopened hotels in its pipeline, including 2,199 from Legacy-Huazhu[10]. - As of June 30, 2022, H World operated 8,176 hotels with 773,898 rooms across 17 countries[78]. - H World operates 14% of its hotel rooms under lease and ownership models, and 86% under manachise and franchise models[79]. - The number of leased and owned hotels as of June 30, 2022, was 646, with a net addition of 5 hotels in Q2 2022[93]. - The total number of operational hotels as of June 30, 2022, was 8,051, with a total of 748,942 rooms[93]. - The company has 985 unopened hotels in the pipeline as of June 30, 2022[104]. - Five new hotels were opened in Q2 2022, contributing to a total of 125 hotels as of June 30, 2022[101].

Huazhu Group Limited (NASDAQ:HTHT) Q1 2022 Earnings Conference Call May 31, 2022 7:00 AM ET Company Participants Jason Chen - Investor Relations Director Ji Qi - Founder and Chairman Jin Hui - Chief Executive Officer Ye Fei - Deputy Chief Financial Officer Conference Call Participants Billy Ng - Bank of America Sijie Lin - CICC Simon Cheung - Goldman Sachs Operator Good day and thank you for standing by. Welcome to Huazhu Group Limited First Quarter 2022 Earnings Conference Call. At this time, all participa ...