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 - 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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECT ...

Huazhu Group Limited (NASDAQ:HTHT) Q4 2021 Earnings Conference Call March 23, 2022 9:00 PM ET Corporate 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 Lina Yan - HSBC Bruce Lee - UBS Operator Ladies and gentlemen, thank you for standing by. And welcome to the Huazhu Group 2021 Q4 and Full Year Earnings Conference Call. Please b ...

Hotel Operations - As of December 31, 2021, Huazhu operated a total of 7,830 hotels and 753,216 hotel rooms[1][11] - The company opened 1,507 manachised and franchised hotels in 2021, while closing 451[11] - The company operates 7,830 hotels with 753,216 rooms in 17 countries as of December 31, 2021, with 14% of rooms under lease and ownership model and 86% under manachise and franchise models[82][83] - The company had 2,571 unopened hotels in the pipeline as of December 31, 2021[106] - The total number of unopened hotels in the pipeline as of December 31, 2021, was 1,206, indicating ongoing market expansion[119] Financial Performance - Revenue for Q4 2021 was RMB3.4 billion (US$526 million), a 9.1% year-over-year increase, while full year revenue was RMB12.8 billion (US$2.0 billion), a 25.4% year-over-year increase[3][24] - Revenue for the full year of 2021 was RMB12.8 billion (US$2.0 billion), representing an increase of 25.4% from 2020[25] - Net loss attributable to Huazhu for Q4 2021 was RMB459 million (US$72 million), compared to a net income of RMB703 million in Q4 2020[4] - Net loss attributable to Huazhu Group Limited for the full year of 2021 was RMB465 million (US$73 million)[52] - Total revenue for the year ended December 31, 2021, was RMB 12,787 million, representing a 25.5% increase from RMB 10,196 million in 2020[89] Adjusted EBITDA and Operating Costs - Adjusted EBITDA (non-GAAP) for Q4 2021 was RMB278 million (US$43 million), compared to RMB375 million in Q4 2020; for the full year 2021, it was RMB1.6 billion (US$247 million) compared to negative RMB244 million in 2020[8] - EBITDA (non-GAAP) for the full year of 2021 was RMB1.4 billion (US$215 million), compared with a negative RMB631 million in 2020[57] - Hotel operating costs for the full year of 2021 were RMB11.3 billion (US$1.8 billion), compared to RMB9.7 billion in 2020[34] - Operating costs for the year ended December 31, 2021, totaled RMB 13,613 million, an increase from RMB 11,925 million in 2020, reflecting a rise of 14.1%[90] Revenue Breakdown - Revenue from Legacy-Huazhu segment for the full year of 2021 was RMB11.2 billion, representing a 29.8% year-over-year increase[25] - Revenue from leased and owned hotels for the full year of 2021 was RMB8.1 billion (US$1.3 billion), representing an increase of 17.5% from 2020[27] - Revenue from manachised and franchised hotels for the full year of 2021 was RMB4.4 billion (US$690 million), representing an increase of 40.2% from 2020[29] - Legacy-DH segment revenue for Q4 2021 was RMB574 million, a 129.6% year-over-year increase[24] Cash Flow and Assets - Operating cash inflow for Q4 2021 was RMB867 million (US$136 million) and for the full year 2021 was RMB1.3 billion (US$210 million), representing a 120.4% increase from 2020[58][59] - As of December 31, 2021, total cash and cash equivalents were RMB5.1 billion (US$803 million) with total debt balance of RMB9.8 billion (US$1.5 billion)[61] - Total current assets as of December 31, 2021, were RMB 9,553 million, a decrease from RMB 12,882 million as of December 31, 2020[86] - The company’s total assets as of December 31, 2021, were RMB 63,269 million, a decrease from RMB 65,155 million as of December 31, 2020[87] Future Outlook - For Q1 2022, Huazhu expects revenue growth of 11%-15% compared to Q1 2021, or 1%-5% excluding Legacy-DH[9] - Huazhu expects to open around 1,500 hotels and close 500-550 hotels in 2022, with revenue growth forecasted at 11%-15% for Q1 2022 and 15%-20% for the full year compared to 2021[67] - The guidance for future performance is uncertain due to the ongoing impact of the Omicron variant and China's "zero-COVID" policy[65] Market Conditions - The company maintains a long-term optimistic view on the Chinese lodging industry despite near-term uncertainties due to COVID-19[22] - RevPAR recovery in Q4 2021 was 90%, 76%, and 90% of October, November, and December 2019 levels, respectively, with January and February 2022 showing 75% and 83% recovery[62] Shareholder Information - The company may repurchase its securities, including American depositary shares and convertible notes, subject to market conditions[68] - The company’s share-based compensation expenses for the quarter were 15 million RMB, down from 31 million RMB in the previous quarter[97]

Huazhu Group Limited (NASDAQ:HTHT) Q3 2021 Earnings Conference Call November 24, 2021 8:00 PM ET Company Representatives JI Qi - Founder, Chairman Jin Hui - Chief Executive Officer Liu Xinxin - President Chen Hui - Chief Financial Officer Ye Fei - Deputy Chief Financial Officer Jason Chen - General Manager Conference Call Participants Billy Ng - Bank of America Simon Cheung - Goldman Sachs Operator Hello everyone! Thank you for standing by. Welcome to the Huazhu Group’s Q3 Earnings Conference Call. At this ...