海 外 研 证券研究报告 究 ＃industryId＃ 酒店出行 ＃investSuggestion＃ ＃ ＃01179 .HK ＃华dy住Com集pa团ny＃- S dyStockco investS 买入 ( u 维gg 持esti ） d e＃ 20 24Q1 开店＃ 快t 速itl ，e＃ 业 绩符合预期 onChan ge＃ ＃createTime1＃ 2024年 5月 23 日 投资要点 公 ＃市场ma数rk据et Data＃ ＃ ⚫ sum 维ma 持ry “＃买 入”评级：公司2024Q1经营指标保持平稳增长，净开店数量好于预期。休闲 司 日期 2024.5.22 旅游需求复苏持续带动公司 RevPAR恢复，同时公司主动积极发力B2B业务，商旅 跟 收盘价（港元） 29.05 业务能力优于行业。我们维持盈利预测，预计公司 2024E/2025E/2026E 营业收入为 踪 总股本（亿股） 32.10 241/259/279亿元人民币，同比增长10.0%/7.8%/7.6%；归母净利润为43/50/56亿元人 报 总市值（亿港元） 932.62 民币，同比增长 5.6%/15.5%/12.6%。 ...

Q1业绩亮眼，经营凸显韧性 ——华住集团-S 24Q1业绩点评 华住集团-S（1179.HK）/商 证券研究报告/公司点评 2024年05月21日 社 [Table_Industry] [评Ta级ble：_T增itle持] （维持） [公Ta司ble盈_F利in预anc测e1及] 估值 市场价格：30.7港元 指标 2022A 2023A 2024E 2025E 2026E 营业收入（百万元） 13862 21882 24282 26429 28273 分析师：郑澄怀 增长率yoy% 57.9% 11.0% 8.8% 7.0% 执业证书编号：S0740524040004 归母净利润（百万元） -1821 4085 4234 5047 5824 Email：zhengch@zts.com.cn 增长率yoy% -324.3% 3.6% 19.2% 15.4% 每股收益（元） -0.58 1.31 1.36 1.62 1.87 每股现金流量 0.12 2.67 1.68 2.28 2.49 分析师：张友华 净资产收益率 -18.5% 39.2% 28.2% 24.7% 22.5% 执业证书编号：S07405231 ...

Q1业绩亮眼，经营凸显韧性 ——华住集团-S 24Q1业绩点评 华住集团-S（1179.HK）/商 证券研究报告/公司点评 2024年05月21日 社 [Table_Industry] [评Ta级ble：_T增itle持] （维持） [公Ta司ble盈_F利in预anc测e1及] 估值 市场价格：30.7港元 指标 2022A 2023A 2024E 2025E 2026E 营业收入（百万元） 13862 21882 24282 26429 28273 分析师：郑澄怀 增长率yoy% 57.9% 11.0% 8.8% 7.0% 执业证书编号：S0740524040004 归母净利润（百万元） -1821 4085 4234 5047 5824 Email：zhengch@zts.com.cn 增长率yoy% -324.3% 3.6% 19.2% 15.4% 每股收益（元） -0.58 1.31 1.36 1.62 1.87 每股现金流量 0.12 2.67 1.68 2.28 2.49 分析师：张友华 净资产收益率 -18.5% 39.2% 28.2% 24.7% 22.5% 执业证书编号：S07405231 ...

Investment Rating - Buy (Maintained) [1] Core Views - Q1 revenue exceeded guidance: Revenue for Q1 2024 reached 5.3 billion yuan, up 18% YoY, surpassing the guidance of 12-16% growth [3] - Net store openings accelerated: In Q1, the company opened 569 new stores, with a net increase of 421 stores, exceeding expectations [3] - RevPAR under pressure due to high base: Q1 RevPAR was 216 yuan, up 3% YoY, with a room rate of 280 yuan and an occupancy rate of 77.2% [3] - Q2 revenue growth guidance: The company expects Q2 revenue growth to be between 7-11% [3] Financial Performance - Revenue: 2024E revenue is projected at 23.97 billion yuan, with a YoY growth of 9.54% [2] - Net profit: 2024E net profit is forecasted at 3.79 billion yuan, a decrease of 7.28% YoY [2] - EPS: 2024E EPS is expected to be 1.18 yuan per share [2] - P/E ratio: The current P/E ratio is 23.68x for 2024E [2] Store and Room Metrics - Total stores: As of Q1 2024, the company had 9,684 stores, with 47% being mid-to-high-end brands and 94% being franchised [3] - Room count: The total room count reached 929,000, with franchised rooms accounting for 843,000, up 19.5% YoY [3] - Store pipeline: The company has a pipeline of 3,138 stores, with plans to open 1,800 stores and achieve a net increase of 1,150 stores in 2024 [3] Market Data - Closing price: The stock closed at HKD 30.65 [5] - Market cap: The company's market cap is HKD 98.4 billion [5] - P/B ratio: The P/B ratio is 8.02x [5] Financial Ratios - ROE: 2024E ROE is projected at 23.79% [8] - Gross margin: 2024E gross margin is expected to be 35.44% [8] - Net profit margin: 2024E net profit margin is forecasted at 15.80% [8] Historical Performance - 2023 revenue: 21.88 billion yuan, up 57.86% YoY [2] - 2023 net profit: 4.09 billion yuan, up 324.33% YoY [2] - 2023 EPS: 1.27 yuan per share [2]

证券研究报告 | 季报点评 2024年05月22日 华住集团-S（01179.HK） 营收增速超先前指引，利润基本符合预期 事件：公司发布2024Q1财务公告，2024Q1华住境内酒店BI RevPAR 216 买入（维持） 元（同比2023Q1/2019Q1分别+2.9%/+21.3%），境内新开酒店569家， 股票信息 关店 148 家，净开业 421 家。德意志酒店 BI RevPAR 58 欧元（同比 行业 酒店及度假村 2023Q1/2019Q1分别+4.5%/-1.7%），新开酒店5家，关店3家，净开 前次评级 买入 业2家。 5月21日收盘价(港元) 30.65 总市值(百万港元) 96,177.95 2024Q1境内外RevPAR指标基本符合预期。2024Q1华住境内酒店BI 总股本(百万股) 3,137.94 RevPAR 216元（同比2023Q1/2019Q1分别+2.9%/+21.3%），OCC 77.2% 其中自由流通股(%) 100.00 30日日均成交量(百万股) 2.07 （同比 2023Q1/2019Q1 分别+1.6pct/-3.4pct），ADR 280 元（同比 股价走 ...

[Table_Page] 季报点评|消费者服务Ⅱ 证券研究报告 [【Table_广Title] 发批零社服&海外】华住集团-S [公Tab司le_I评nves级t] 买入-美股/买入-H 当前价格 41.33美元/33.30港元 （01179.HK）/华住（HTHT.O） 合理价值 44.77美元/35.06港元 前次评级 买入-美股/买入-H 24Q1 收入超指引，新开店超预期 报告日期 2024-05-19 [Table_Summary] 核心观点： [相Tab对le_P市icQ场uote表] 现 ⚫ 公司发布24年一季报：（1）收入端：24Q1收入同增18%至53亿元， 12% 超此前指引（12%-16%），较19Q1增长162%，收入增长主因新开店 4% 超预期，加盟收入同增 33%至 21 亿元，直营酒店收入同增 8%至 31 -5%05/23 07/23 09/23 11/23 01/24 03/24 05/24 -13% 亿元。（2）利润端：24Q1归母净利润同减33%至6.6亿元，主因23Q1 -22% 出售雅高收益约5亿元，剔除后同增约30%。经调EBITDA同增38% -30% 至14亿元 ...

股 票 研 究 [Table_industryInfo] 社会服务业 [ Table_Main[ 华 TIna 住fbole] 集 _T 团itle -] S （1179） [评Tab级le_：Inv est] 增持 当前价格（港元）： 33.30 业绩超预期，持续领先行业 2024.05.19 海 ——华住集团 24Q1 业绩点评 [ 交Ta易bl数e_据M arket] 外 刘越男(分析师) 于清泰(分析师) 52周内股价区间（港元） 23.45-37.10 公 021-38677706 021-38022689 当前股本（百万股） 3,210 当前市值（百万港元） 106,906 司 liuyuenan@gtjas.com yuqingtai@gtjas.com 证书编号 S0880516030003 S0880519100001 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 2024Q1 拓店及加盟驱动收入及业绩超预期，国内业绩高增且海外减亏。但考虑较高 华住集团-S 恒生指数 香 基数，对24Q2指引偏保守。 14% 摘要： 港 6% ） [T abl业e_绩S ...

证券研究报告 | 2024年05月20日 华住集团-S（01179.HK） 买入 一季度经调整净利润翻倍，强品牌高效率助长期成长 核心观点 公司研究·海外公司财报点评 2024年一季度收入增长超此前公司指引，经调整净利润增长翻倍。2024Q1， 社会服务·酒店餐饮 公司收入52.78亿元/+17.80%,超此前指引（+12-16%）；实现归母/经调整 证券分析师：曾光 证券分析师：钟潇 净利润6.59/7.71亿元，同比约-33%/+101%；归母净利润下滑主要系汇兑损 0755-82150809 0755-82132098 zengguang@guosen.com.cn zhongxiao@guosen.com.cn 益波动和2023Q1处置雅高股权带来投资收益5.16亿元影响，主业增长强劲。 S0980511040003 S0980513100003 国内酒店一季度整体REVPAR同增3%领先行业，开店迅猛加速其收入和经调 证券分析师：张鲁 联系人：杨玉莹 010-88005377 0755-81982942 利润较快增长。2024Q1，国内酒店整体RevPAR+3.1%（ADR+1%，OCC+1.6pc ...

Hotel Operations - As of March 31, 2024, the company operated 9,817 hotels with a total of 955,657 rooms[3] - As of March 31, 2024, there were 3,172 hotels under development, including 3,138 from Legacy-Huazhu[4] - As of March 31, 2024, Legacy-DH operates 133 hotels with a total of 27,148 rooms, including 16,369 rooms under lease and 10,779 under management and franchise[6] - The company opened 569 hotels in Q1 2024 and closed 148 hotels during the same period[4] - The company temporarily closed 12 hotels in Q1 2024 for brand upgrades and business model changes[31] - The total number of operating hotels under the economy segment is 5,118, with 420,702 rooms available[37] Financial Performance - Total revenue for Q1 2024 grew by 17.8% year-over-year to RMB 5.3 billion (approximately $731 million), exceeding the previous guidance of 12% to 16% growth[3] - Hotel revenue for Q1 2024 increased by 21.1% year-over-year to RMB 19.7 billion, excluding Legacy-DH, the increase was 21.6%[3] - Net profit attributable to the company for Q1 2024 was RMB 659 million (approximately $91 million), compared to RMB 990 million in Q1 2023[3] - Adjusted EBITDA for Q1 2024 was RMB 1.4 billion (approximately $197 million), up from RMB 1.0 billion in Q1 2023[3] - Total revenue for Q1 2024 was RMB 5.278 billion (approximately $731 million), representing a year-over-year increase of 17.8% but a quarter-over-quarter decrease of 5.5%[7] - Revenue from the Legacy-Huazhu segment in Q1 2024 was RMB 4.2 billion, up 18.1% year-over-year, exceeding the previous guidance of 11% to 15%[7] - Revenue from the Legacy-DH segment in Q1 2024 was RMB 1 billion, a year-over-year increase of 16.6%[7] - Operating profit for Q1 2024 was RMB 1 billion (approximately USD 139 million), compared to RMB 664 million in Q1 2023 and RMB 757 million in the previous quarter[12] - The operating profit margin for Q1 2024 was 19.0%, up from 14.8% in Q1 2023 and 13.6% in the previous quarter, driven by increased revenue from management franchise and franchising businesses[12] Cost and Expenses - Operating costs for Q1 2024 were RMB 4.351 billion, compared to RMB 3.890 billion in Q1 2023, primarily due to network expansion and reduced rent waivers[9] - The hotel operating cost for Q1 2024 was RMB 3.6 billion, accounting for 61.6% of revenue, down from 66.3% in Q1 2023[10] - The management franchise and licensing hotel revenue for Q1 2024 was RMB 2.1 billion, a year-over-year increase of 32.8%[8] Cash Flow and Assets - Operating cash inflow for Q1 2024 was RMB 886 million (approximately USD 123 million)[14] - As of March 31, 2024, total cash and cash equivalents amounted to RMB 5.9 billion (approximately USD 818 million) with restricted cash of RMB 755 million (approximately USD 105 million)[14] - Total current assets decreased from RMB 12,056 million on December 31, 2023, to RMB 10,498 million as of March 31, 2024[21] - Cash and cash equivalents declined from RMB 6,946 million to RMB 5,909 million during the same period[21] - Total liabilities decreased from RMB 51,283 million to RMB 49,046 million from December 31, 2023, to March 31, 2024[22] - Total equity increased slightly from RMB 12,249 million to RMB 12,398 million in the same timeframe[22] Future Outlook - The company expects revenue for Q2 2024 to grow between 7% and 11% compared to Q2 2023[4] - The company expects revenue growth of 7% to 11% in Q2 2024 compared to Q2 2023, excluding the DH segment[14] - The company plans to continue expanding its market presence and investing in new technologies and products in the upcoming quarters[23] - The company has made significant investments in lease renovations, which contribute to a substantial portion of its cost structure[17] Non-GAAP Measures - The company utilizes non-GAAP financial measures, including adjusted net profit and adjusted EBITDA, to provide meaningful supplemental information about its performance[16] - EBITDA is considered a useful financial metric for evaluating operational and financial performance before the impact of financing transactions and income taxes[17] - Adjusted EBITDA is believed to better reflect the financial performance capability of the company's hotels[18] - The company emphasizes that EBITDA and adjusted EBITDA should not be viewed as indicators of future performance unaffected by other expenses and income considered outside normal business operations[18] - The limitations of using EBITDA and adjusted EBITDA include the exclusion of depreciation, amortization, income taxes, interest expenses, and incentive compensation costs[18] - The company believes that the use of non-GAAP measures enhances transparency in financial and operational decision-making[16] - The company provides reconciliations of non-GAAP financial measures to GAAP measures in its financial statements for better assessment of performance[18] - The company asserts that adjusted EBITDA allows for year-over-year comparisons by excluding certain costs that may not reflect operational performance[17] Market Position - The company operates 11% of its hotel rooms under the lease and ownership model, while 89% are managed through franchise and management agreements[19] - Huazhu's business model includes leasing, management franchising, and licensing, ensuring standardized operations across all hotels[19] - The company has rights as a major franchisee for brands such as Mercure, Ibis, and Novotel in the Greater China region[19] - Huazhu Group emphasizes its growth strategies and ability to attract and retain guests as key factors for future performance[19]

Hotel Network Expansion - The company expanded its hotel network from 7,830 hotels as of December 31, 2021, to 9,394 hotels as of December 31, 2023, with a compound annual growth rate of 9.5%[3] - As of December 31, 2023, the company operated 9,394 hotels, including 691 leased and owned hotels and 8,703 managed and franchised hotels, totaling 912,444 hotel rooms[3] - The company is developing an additional 3,098 new hotels, including 30 leased and owned hotels and 3,068 managed and franchised hotels as of December 31, 2023[3] - The company's hotel network covers 9,394 hotels across 31 provinces, autonomous regions, and municipalities in Greater China and 18 other countries, with 3,098 hotels under development as of December 31, 2023[33] - The company operates 47 managed and franchised hotels through Deutsche Hospitality and 8,656 managed and franchised hotels through other entities[35] - The company has 991 cities across 29 provinces and municipalities with operating hotels, and 889 cities across 30 provinces and municipalities (including Taiwan) with hotels under development[35] - The company has 30 leased and owned hotels under development, with 25 in the pre-conversion phase and 5 in the conversion phase, with a total budgeted development cost of RMB 147 million (USD 21 million)[36] - The company has 683 leased hotels and 8 owned hotels, accounting for approximately 7.4% of its operating hotels[38] - The company has 8,526 managed hotels and 177 franchised hotels, accounting for approximately 91% and 2% of its operating hotels, respectively[40] Membership and Direct Sales - The company's membership program, Huazhu Club, had over 228 million members as of December 31, 2023, with 73% of room nights sold to individual or corporate members in 2023[3] - In 2023, 78% of room nights were sold through the company's direct sales channels[3] - The company's loyalty program, Huazhu Club, had over 228 million members as of December 31, 2023, and 73% of Legacy Huazhu's room nights were sold to Huazhu Club members in 2023[58] - Legacy Huzahu had 78% of room nights sold through the company's own sales channels, with the remaining 22% sold through intermediaries in 2023[58] Financial Performance - The company's total revenue for 2021, 2022, and 2023 was RMB 12,785 million, RMB 13,862 million, and RMB 21,882 million (USD 3,082 million), respectively[4] - The company reported a net loss attributable to Huazhu Group Limited of RMB 465 million in 2021 and RMB 1,821 million in 2022, but achieved a net profit of RMB 4,085 million (USD 575 million) in 2023[4] - Adjusted EBITDA (non-GAAP) for 2021, 2022, and 2023 was RMB 1,571 million, RMB 610 million, and RMB 6,874 million (USD 966 million), respectively[4] - Net cash generated from operating activities for 2021, 2022, and 2023 was RMB 1,342 million, RMB 1,564 million, and RMB 7,674 million (USD 1,080 million), respectively[4] - Total revenue increased from RMB 12,785 million in 2021 to RMB 21,882 million (USD 3,082 million) in 2023, with net profit attributable to the company reaching RMB 4,085 million (USD 575 million) in 2023[118] - Adjusted EBITDA (non-GAAP) rose from RMB 1,571 million in 2021 to RMB 6,874 million (USD 966 million) in 2023, with net cash generated from operating activities increasing from RMB 1,342 million in 2021 to RMB 7,674 million (USD 1,080 million) in 2023[118] - Total revenue increased by 57.9% from RMB 13,862 million in 2022 to RMB 21,882 million (USD 3,082 million) in 2023, driven by recovery from COVID-19 and increased occupancy rates[154] - Revenue from leased and owned hotels grew by 50.8% from RMB 9,148 million in 2022 to RMB 13,796 million (USD 1,943 million) in 2023[154] - Revenue from managed and franchised hotels surged by 74.7% from RMB 4,405 million in 2022 to RMB 7,694 million (USD 1,084 million) in 2023[154] - Other income increased by 26.9% from RMB 309 million in 2022 to RMB 392 million (USD 55 million) in 2023[154] - Total operating costs and expenses rose by 19.5% from RMB 14,705 million in 2022 to RMB 17,568 million (USD 2,476 million) in 2023[154] - Hotel operating costs increased by 17.0% from RMB 12,260 million in 2022 to RMB 14,341 million (USD 2,021 million) in 2023, primarily due to higher employee costs and consumables[154] - Adjusted EBITDA for Legacy Huazhu increased significantly from RMB 725 million in 2022 to RMB 6,772 million in 2023, while Legacy DH improved from a loss of RMB 112 million to a profit of RMB 103 million[153] - Net loss attributable to Huazhu Group Limited was RMB 1,821 million in 2022, improving to a net profit of RMB 4,085 million (USD 575 million) in 2023[150] - Sales and marketing expenses increased by 74.9% from RMB 613 million in 2022 to RMB 1,072 million (USD 151 million) in 2023, primarily due to higher commissions and promotional fees related to business recovery[155] - General and administrative expenses increased by 24.5% from RMB 1,675 million in 2022 to RMB 2,086 million (USD 294 million) in 2023, mainly due to rising employee costs as business recovered[155] - Pre-opening expenses decreased by 63.2% from RMB 95 million in 2022 to RMB 35 million (USD 5 million) in 2023, due to more selective opening of leased and owned hotels[155] - Operating profit in 2023 was RMB 4,714 million (USD 662 million), compared to an operating loss of RMB 294 million in 2022[155] - Net interest expense in 2023 was RMB 137 million (USD 19 million), with interest income of RMB 248 million (USD 35 million) and interest expense of RMB 385 million (USD 54 million)[155] - Other net profit in 2023 was RMB 573 million (USD 81 million), compared to RMB 10 million in 2022, mainly due to gains from the sale of Accor shares[156] - Legacy Huazhu's total revenue in 2023 increased by 63.6% to RMB 17,444 million, driven by the recovery of the Chinese business from COVID-19[157] - Legacy DH's total revenue in 2023 increased by 39.0% to RMB 4,465 million, driven by the continued recovery of the European business[157] - Legacy Huazhu's adjusted EBITDA in 2023 was RMB 6,772 million, a significant increase from RMB 725 million in 2022, due to the recovery of the Chinese business[158] - Legacy DH's adjusted EBITDA in 2023 improved to RMB 103 million from a negative RMB 112 million in 2022, due to the recovery of the European business[158] - Sales and marketing expenses decreased by 4.4% from RMB 641 million in 2021 to RMB 613 million in 2022, with the expense ratio dropping from 5.0% to 4.4% of total revenue[160] - General and administrative expenses increased by 8.4% from RMB 1,545 million in 2021 to RMB 1,675 million in 2022, maintaining a stable ratio of 12.1% of total revenue[160] - Pre-opening expenses increased by 17.3% from RMB 81 million in 2021 to RMB 95 million in 2022, with the expense ratio rising from 0.6% to 0.7% of total revenue[160] - Operating loss of RMB 294 million in 2022, compared to an operating profit of RMB 164 million in 2021[160] - Net interest expense of RMB 322 million in 2022, with interest income of RMB 87 million and interest expense of RMB 409 million[160] - Other net profit decreased significantly from RMB 157 million in 2021 to RMB 10 million in 2022, primarily due to the sale of Accor shares in 2021[161] - Foreign exchange loss increased from RMB 317 million in 2021 to RMB 641 million in 2022, mainly due to the depreciation of the euro[162] - Legacy Huazhu's total revenue decreased by 5.2% from RMB 11,247 million in 2021 to RMB 10,661 million in 2022, while Legacy DH's revenue surged due to the recovery of European business[162] - Adjusted EBITDA for Legacy Huazhu decreased by 64.3% from RMB 2,032 million in 2021 to RMB 725 million in 2022, while Legacy DH's adjusted EBITDA improved significantly[162] Hotel Brands and Development - The company operates over 20 distinctive hotel brands, targeting various market segments from economy to luxury[5] - HanTing Hotel has 3,598 operating hotels and 731 under development as of December 31, 2023[7] - Hello Inn has 269 operating hotels and 177 under development as of December 31, 2023[8] - Hanting Express has 471 operating hotels and 180 under development as of December 31, 2023[9] - Elan Hotel has 404 operating hotels and 1 under development as of December 31, 2023[10] - Ibis Hotel has 226 operating hotels and 17 under development as of December 31, 2023[11] - Zleep Hotels has 16 operating hotels and 15 under development as of December 31, 2023[12] - Ji Hotel has 2,116 operating hotels and 936 under development as of December 31, 2023[13] - Orange Hotel has 652 operating hotels and 315 under development as of December 31, 2023[14] - Starway Hotel has 670 operating hotels and 228 under development as of December 31, 2023[15] - IntercityHotel has 63 operating hotels and 64 under development as of December 31, 2023[18] - CitiGO hotels have 35 operating hotels and 4 under development as of December 31, 2023[23] - Meilun Meihuan hotels have 9 operating hotels (including 4 in China) and 2 under development in China as of December 31, 2023[24] - Xiyue hotels have 7 operating hotels as of December 31, 2023[25] - Huajiantang hotels have 63 operating hotels and 56 under development as of December 31, 2023[26] - Steigenberger hotels have 54 operating hotels (including 11 in China) and 10 under development (including 3 in China) as of December 31, 2023[27] - Jaz in the City hotels have 3 operating hotels and 1 under development as of December 31, 2023[28] - Mercure hotels have 10 operating hotels and 2 under development as of December 31, 2023[29] - Steigenberger Grand hotels have 9 operating hotels (including 3 in China) and 2 under development (including 1 in China) as of December 31, 2023[30] - Songpin hotels have 7 operating hotels as of December 31, 2023[31] Franchise and Management Fees - The company charges franchisees an initial franchise fee ranging from RMB 80,000 to RMB 1,000,000 per hotel and a monthly franchise fee of approximately 3% to 6.5% of total revenue generated by each managed hotel[41] - Deutsche Hospitality's management fees for franchised hotels range from 0.5% to 3.5% of hotel revenue and 6% to 10% of adjusted total operating profit[42] - Deutsche Hospitality charges a licensing fee of 0.5% to 2% of revenue for certain overseas franchised hotels[42] - Legacy Huazhu's franchise agreements typically have an initial term of 8 to 10 years, extendable upon mutual agreement[43] - Deutsche Hospitality's franchise fees for franchised hotels range from 0.5% to 4.0% of total room revenue or turnover, with fixed fees of €40,000 to €150,000 annually for some overseas hotels[44] - For Legacy Huazhu managed hotels, franchisees typically pay an upfront franchise fee ranging from RMB 80,000 to RMB 1,000,000 per hotel[138] - Monthly franchise fees for Legacy Huazhu managed hotels range from 3% to 6.5% of total revenue generated by each hotel[138] - For Deutsche Hospitality managed hotels, franchisees pay a base fee of 0.5% to 3.5% of hotel turnover and an incentive fee of 6% to 10% of adjusted total operating profit[138] - Franchise fees for Deutsche Hospitality franchised hotels range from 0.5% to 4.0% of total room revenue or turnover and total operating income[139] - Initial terms for franchise agreements are typically 8-10 years for Legacy Huazhu hotels and 15-20 years for Deutsche Hospitality hotels[137] Technology and Digital Systems - The company's cloud-based property management system enables real-time monitoring of occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) for each hotel[50] - The company's global unified digital core platform integrates 20+ distribution platforms, including OTAs, GDS, and TMCs, achieving 100% direct connectivity across all countries, brands, and hotels[51] - The company's central revenue management system (RMS) uses AI and algorithms to automatically adjust room rates across the network within minutes, optimizing occupancy and revenue[52] - The company's central procurement system (CPS) is one of the largest IoT-based procurement platforms in China's hospitality industry, enabling bulk purchasing for all hotels in the network[53] - The company's integrated CRM system tracks member data, including booking history, points accumulation, and prepaid balances, to enhance customer loyalty and targeted promotions[52] - The company's hotel operation system platform (H-HOS) integrates PMS, POS, and EMS, covering brands in China and expanding to markets like Singapore, Germany, and Denmark[51] - The company's global unified collaboration platform (H-TONE) supports real-time multilingual communication, deployed across multiple countries in Asia-Pacific and Europe[51] - Cloud-PMS system enables real-time management of room inventory, reservations, and pricing, optimizing occupancy rates, ADR, and RevPAR[54] - "Easy" series digital systems, including "Easy Room" and "Easy Invoice," streamline hotel operations and reduce check-out to check-in time[54] - Self-service check-in/out terminals replace traditional manual processes with advanced automation[54] - Digital payment options include online credit card payments, Alipay, WeChat Pay, and Apple Pay[54] - Smart robots deployed across hotels improve operational efficiency and guest experience[54] - AI-powered voice assistant enhances guest interaction and experience through mobile app integration[55] - Smart room features like "Hello Huazhu" enable voice control of lights, TV, AC, and curtains[55] - Free Wi-Fi offered to all hotel guests since 2013, significantly boosting customer growth[55] - Data security measures include ISO27001 and ISO27701 certifications, PCI-DSS compliance, and a dedicated data security committee[56] - Annual vulnerability scans and 7*24 emergency response strategies ensure continuous data security compliance[57] Environmental and Sustainability Initiatives - Over 30% of the company's leased and owned hotel properties are equipped with air source heat pumps, and nearly 10% have adopted solar hot water systems[63] - Approximately 70 Legacy DH properties have obtained ISO50001 energy management system certification, and around 90 properties have achieved ISO14001 environmental management system certification[63] - The company launched the "Stay Longer, Skip Laundry" initiative in November 2023, offering additional membership points to guests who opt out of changing bed linens during extended stays[63] - The "Smart Linen Project" was initiated in 2023 to establish a digital management solution for linen processing, aiming to improve efficiency and extend linen lifespan[64] - The company has integrated environmental standards into supplier selection processes, particularly for laundry suppliers, emphasizing water and energy-saving capabilities[64] - The company's "Easy Energy Consumption" system monitors electricity and water usage, providing real-time alerts for anomalies to prevent resource waste[63] - The company introduced eco-friendly products in 2023, including straw-based toothbrushes, cornstarch shower caps, and bamboo paper[63] - The company encourages customers to opt for electronic invoices to enhance operational efficiency and reduce paper usage[63] - The company is actively exploring rainwater and greywater reuse methods to conserve water resources[63] - The company is working to expand the use of renewable energy equipment across its hotel network through collaboration with franchisees[63] Legal and Regulatory Compliance - Special construction projects (e.g., hotels with a total construction area exceeding 10,000 square meters) must pass fire safety inspections and approvals before operation, with penalties ranging from RMB 30,000 to RMB 300,000 for non-compliance[68] - Hotels providing entertainment facilities (e.g., discos, karaoke, or dance halls) must obtain an entertainment business license[68] - Hotels eligible for star ratings must apply for assessments, with ratings valid for three years[69] - Single-purpose commercial prepaid cards issued by hotels must not exceed 40% of the previous fiscal year's main business revenue[69] - Online tourism platforms must verify the identity, licenses, and credit ratings of registered tourism operators and protect tourists' personal data privacy[70] - Foreign-invested travel agencies in Shanghai and Chongqing are temporarily allowed to provide outbound travel services for mainland