Group 1 - The core viewpoint of the article highlights Huazhu's recent stock performance and financial results, indicating a mixed outlook with revenue growth but a decline in net profit [1][2]. - As of April 11, Huazhu's stock price increased by 2.01%, reaching $32.46 per share, with a total market capitalization of $10.171 billion [1]. - For the fiscal year ending December 31, 2024, Huazhu reported total revenue of 23.891 billion RMB, reflecting a year-on-year growth of 9.18%, while the net profit attributable to shareholders decreased by 25.39% to 3.048 billion RMB [1]. Group 2 - Huazhu Group, a globally recognized hotel group originating from China, operates 8,176 hotels across 17 countries as of June 30, 2022, with a total of 773,898 rooms in operation [3]. - The company's brand portfolio includes various hotel brands such as Hanting, Hi Inn, and others, and it operates under different business models including leasing, management franchising, and licensing [3]. - As of June 30, 2022, Huazhu managed 14% of its hotel rooms under leasing and ownership models, while 86% were operated under management franchising and licensing models [3].

Group 1 - H World (华住) shares increased by 2.92%, reaching $38.42 per share, with a total market capitalization of $12.038 billion [1] - As of September 30, 2024, H World reported total revenue of 17.868 billion RMB, a year-on-year increase of 9.63%, while net profit attributable to shareholders was 2.999 billion RMB, a year-on-year decrease of 10.26% [1] - H World operates 8,176 hotels across 17 countries, with a total of 773,898 rooms in operation as of June 30, 2022 [3] Group 2 - H World’s business model includes leasing and ownership, management franchising, and licensing, with 14% of hotel rooms operated under leasing and ownership, and 86% under management franchising and licensing as of June 30, 2022 [3] - The company has a diverse brand portfolio, including Haiyou Hotel, Yilai Hotel, Hanting Hotel, and many others, and holds rights for major franchises in Greater China [3] - H World is set to disclose its fiscal year 2024 annual report on March 19, 2024, with the actual date subject to company announcement [2]

Group 1 - The core thesis for H World Group (NASDAQ: HTHT) is that the demand/supply situation remains favorable, suggesting potential upward movement in stock price [1] - The investment approach emphasizes a blend of value investing principles and long-term growth focus, aiming to buy quality companies at a discount to their intrinsic value [1] - The strategy involves holding investments for the long term to allow for compounding of earnings and shareholder returns [1]

Core Insights - H World Group reported a revenue of 60 billion yuan in Q4 2024, a year-on-year increase of 7.8%, with hotel revenue reaching 237 billion yuan, up 16.5% [1] - For the full year 2024, the company achieved a total revenue of 239 billion yuan, reflecting a 9.2% increase, while hotel revenue was 928 billion yuan, marking a 15.5% growth [1] Group 1: Financial Performance - In Q4 2024, H World Group's hotel revenue was 237 billion yuan, showing a year-on-year growth of 16.5% [1] - The total revenue for the year 2024 was 239 billion yuan, which is a 9.2% increase compared to the previous year [1] - The company reported a total hotel revenue of 928 billion yuan for the year, reflecting a growth of 15.5% [1] Group 2: Operational Metrics - H World Group's occupancy rate in China was 81.2% in 2024, with a slight increase of 0.2 percentage points year-on-year [2] - The average daily rate (ADR) in China was 289 yuan, while the revenue per available room (RevPAR) was 235 yuan, indicating stable performance [2] - Internationally, key operational metrics for H World Group showed growth, with ADR increasing by 1.5%, occupancy rate rising by 2.7 percentage points, and RevPAR up by 5.9% [2] Group 3: Market Expansion - By the end of 2024, H World Group had 11,025 hotels in operation in China, covering 1,380 cities, an increase of 123 cities from the previous year [3] - The proportion of hotels in third-tier cities and below increased by 2 percentage points to 42% [3] - The company has 2,988 hotels under development, with 54% of these located in third-tier cities and below, which is 12 percentage points higher than the proportion of operating hotels [3] Group 4: Product and Brand Development - H World Group launched new hotel models, including "Hello 2.0" and "Haiyou," focusing on enhancing customer experience and operational efficiency [7][8] - The company reported that 36% of its HanTing hotels are now rated 3.5 stars and above, a 15 percentage point increase from the previous year [9] - The number of mid-to-high-end hotels in operation and under development grew by 35%, reaching 873 and 521 respectively [11] Group 5: Strategic Outlook - H World Group aims to continue its focus on high-quality development and expand its presence in lower-tier cities and untapped markets [11] - The company plans to enhance its brand and service quality, emphasizing customer-centric strategies and product upgrades [11] - H World Group is positioned as a "pathfinder" in the hotel industry, committed to improving service quality in response to government initiatives aimed at boosting consumption [12]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue for the group increased 7.8% year-over-year to RMB6 billion, exceeding guidance [45] - For the full-year 2024, total revenue increased 9.2% year-over-year to RMB23.9 billion [45] - Adjusted net income was RMB321 million in Q4 2024, with full-year adjusted net income increasing 5.8% year-over-year to RMB3.7 billion [54] - The group generated operational cash inflow of RMB7.5 billion in 2024 [54] Business Line Data and Key Metrics Changes - Legacy-Huazhu's revenue increased 9.2% year-over-year to RMB4.8 billion in Q4 2024, with full-year revenue growing 9.1% to RMB19 billion [45] - Legacy-DH's revenue rose 2.9% year-over-year to RMB1.2 billion in Q4 and increased 9.6% year-over-year to RMB4.9 billion for the full-year [46] - Legacy-Huazhu's blended RevPAR decreased slightly by 3% to RMB235, while occupancy rate improved by 0.2 percentage points to 81.2% [17][18] Market Data and Key Metrics Changes - The number of domestic tourists in China reached 5.6 billion, up 14.8% year-over-year, with total domestic tourism spending increasing 17.1% to RMB5.8 trillion [10] - The hotel turnover for the full-year 2024 was RMB93 billion, a 15% year-over-year increase [44] Company Strategy and Development Direction - The company aims to reach 20,000 hotels in 2,000 cities in the near future, focusing on high-quality development and brand positioning [16][32] - The asset-light model strategy is expected to generate stronger and healthier cash flow, with over 50% of revenue contribution from asset-light business [13][47] Management Comments on Operating Environment and Future Outlook - Management noted that while there are macro uncertainties, domestic travel demand continues to grow steadily, with leisure travel outpacing business travel [8][10] - For Q1 2025, management expects a low single-digit decline in RevPAR year-over-year, but remains confident about stabilization and potential growth for the full year [65] Other Important Information - The company revised its dividend payout policy to no less than 60% of net profit and announced a US$300 million final cash dividend for the second half of 2024 [56] - The company plans to open around 2,300 hotels in 2025 while closing around 600 hotels, representing a 15% year-over-year growth in hotel network [60] Q&A Session Summary Question: RevPAR outlook for Q1 and full-year - Management expects a low single-digit decline in Q1 RevPAR year-over-year but is confident about stabilization and potential growth for the full year [65] Question: Strategy change for Legacy-DH and earnings recovery - Management indicated that the focus for 2025 will be on stabilizing the business and performance while looking for growth opportunities through asset-light and organic growth [67][68] Question: Future dividend payout expectations - Management confirmed the commitment to the current shareholder return plan, aiming to return up to US$2 billion over three years, primarily through cash dividends [78]

Core Insights - H World Group Limited reported significant growth in its hotel network, achieving a milestone of 10,000 hotels and opening over 2,400 new hotels in 2024, surpassing its initial target of 1,800 hotels [2][5] - The company maintained a high occupancy rate of 81.2% despite a slight year-over-year decline in RevPAR, indicating strong operational performance amid rapid expansion [2] - The loyalty program, H Rewards, saw membership rise to 267 million, contributing to nearly two-thirds of all bookings, reflecting the effectiveness of the company's digital innovations [4] Financial Performance - Fourth quarter revenue increased by 7.8% year-over-year to RMB 6.0 billion (US$ 825 million) [5] - Full year revenue for 2024 rose by 9.2% year-over-year to RMB 23.9 billion (US$ 3.3 billion) [5] - Adjusted EBITDA for the fourth quarter totaled RMB 1.2 billion (US$ 171 million), marking a 10.3% increase year-over-year, while full year adjusted EBITDA reached RMB 6.8 billion (US$ 935 million), an 8.8% increase year-over-year [5] Strategic Focus - The company is committed to an asset-light strategy, focusing on high-quality hotel network growth and enhancing brand positioning [2][5] - H World Group plans to continue improving hotel operations, cost reduction, and efficiency in its Legacy-DH business, which recorded a 5.9% year-over-year increase in RevPAR [2] - The company has a robust development pipeline with 3,013 hotels in the pipeline as of year-end 2024, indicating strong future growth potential [5][3]

分组1 - H World Group reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.27 per share, and down from $0.33 per share a year ago, representing an earnings surprise of -48.15% [1] - The company posted revenues of $825 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.06%, compared to year-ago revenues of $786 million [2] - H World Group shares have increased approximately 15.2% since the beginning of the year, while the S&P 500 has declined by -3.5% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.42 on revenues of $776.22 million, and for the current fiscal year, it is $2.05 on revenues of $3.46 billion [7] - The Zacks Industry Rank indicates that the Hotels and Motels sector is currently in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Exhibit 99.1 Contact Information Investor Relations Tel: +86 (21) 6195 9561 Email: ir@hworld.com https://ir.hworld.com H World Group Limited Reports Fourth Quarter and Full Year of 2024 Unaudited Financial Results Hotel turnover refers to total transaction value of room and non-room revenue from H World hotels (i.e., leased and operated, manachised and franchised hotels). The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB7.2993 on December 31, ...

Core Viewpoint - H World Group Limited reported its unaudited financial results for Q4 and the full year of 2024, highlighting significant growth in hotel turnover and revenue, despite a decline in net income due to foreign exchange losses and restructuring costs. Financial Performance - Hotel turnover increased by 16.5% year-over-year to RMB23.7 billion in Q4 2024 and by 15.5% for the full year to RMB23.9 billion (US$3.3 billion) [4][9] - Revenue for Q4 2024 was RMB6.0 billion (US$825 million), a 7.8% year-over-year increase, surpassing previous guidance [4][8] - Net income attributable to H World was RMB49 million (US$7 million) in Q4 2024, down from RMB743 million in Q4 2023 [36] - EBITDA (non-GAAP) for Q4 2024 was RMB974 million (US$134 million), compared to RMB1.4 billion in Q4 2023 [38] Operational Highlights - As of December 31, 2024, H World operated 11,147 hotels with 1,088,218 rooms, including 3,013 hotels in the pipeline [2] - Legacy-Huazhu opened 520 hotels in Q4 2024, exceeding its target of 1,800 for the year [7] - The occupancy rate for Legacy-Huazhu hotels was 80.0% in Q4 2024, slightly down from 80.5% in Q4 2023 [11] Segment Performance - Revenue from the Legacy-Huazhu segment in Q4 2024 was RMB4.8 billion, a 9.2% year-over-year increase [4][9] - Revenue from the Legacy-DH segment in Q4 2024 was RMB1.2 billion, a 2.9% year-over-year increase [4][9] - Adjusted EBITDA from Legacy-Huazhu was RMB1.5 billion in Q4 2024, compared to RMB1.1 billion in Q4 2023 [38] Shareholder Returns - The board declared a cash dividend of approximately US$300 million for the second half of 2024, with total shareholder returns reaching US$767 million for the year [43][45] - H World announced a three-year shareholder return plan with an aggregate amount of up to US$2 billion [44] Future Guidance - For Q1 2025, H World expects revenue growth of 0%-4%, with manachised and franchised revenue growth projected at 18%-22% [47] - For the full year 2025, revenue growth is expected to be in the range of 2%-6%, with manachised and franchised revenue growth projected at 17%-21% [48]

Hotel Operations - As of December 31, 2024, the company operated 11,147 hotels, totaling 1,088,218 hotel rooms[6] - The company plans to open approximately 2,300 hotels and close about 600 hotels in 2025[7] - As of December 31, 2024, the company operates a total of 11,147 hotels and 1,088,218 rooms globally, including 122 hotels from Legacy-DH[8] - The company opened over 2,400 new hotels in 2024, surpassing the initial target of 1,800 hotels[12] - The total number of hotels remained unchanged at 7,163, with a total of 3,013 hotels in the pipeline as of December 31, 2024[77] Financial Performance - Hotel operating revenue for Q4 2024 increased by 16.5% year-over-year to RMB 23.7 billion, while the full year saw a 15.5% increase[6] - Q4 2024 revenue grew by 7.8% year-over-year to RMB 6 billion (approximately $825 million), exceeding previous guidance of 1% to 5% growth[6] - For the full year 2024, total revenue reached RMB 23,891 million, a 9.2% increase compared to 2023[14] - The revenue from Legacy-Huazhu for Q4 2024 was RMB 4,800 million, a year-over-year increase of 9.2%[13] - The revenue from management franchise and leasing hotels in Q4 2024 was RMB 25,000 million, a year-over-year increase of 24%[15] Profitability - Net profit attributable to the company for Q4 2024 was RMB 49 million (approximately $7 million), a decline from RMB 743 million in Q4 2023[6] - For the full year 2024, the net profit attributable to Huazhu Group Limited was RMB 3 billion (approximately $418 million), down from RMB 4.1 billion in 2023[27] - In Q4 2024, operating profit was RMB 902 million (approximately USD 123 million), compared to RMB 757 million in Q4 2023 and RMB 1.7 billion in Q3 2024[23] - For the full year 2024, operating profit reached RMB 5.2 billion (approximately USD 713 million), an increase from RMB 4.7 billion in 2023[23] Costs and Expenses - In Q4 2024, hotel operating costs amounted to RMB 4.2 billion (approximately USD 574 million), an increase from RMB 4.0 billion in Q4 2023 and RMB 3.8 billion in Q3 2024, primarily due to personnel cost increases from hotel network expansion[17] - For the full year 2024, hotel operating costs totaled RMB 15.3 billion (approximately USD 2.1 billion), compared to RMB 14.3 billion in 2023[18] - In Q4 2024, general and administrative expenses were RMB 725 million (approximately USD 99 million), an increase from RMB 644 million in Q4 2023 and RMB 672 million in Q3 2024[20] - For the full year 2024, general and administrative expenses totaled RMB 2.5 billion (approximately USD 344 million), compared to RMB 2.1 billion in 2023[21] Future Outlook - For Q1 2025, the company expects revenue growth of 0% to 4%, or 3% to 7% excluding DH[7] - For the full year 2025, the company anticipates revenue growth of 2% to 6%, or 5% to 9% excluding DH[7] - For Q1 2025, Huazhu expects revenue growth of 0% to 4%, or 3% to 7% excluding the DH segment, and management franchise revenue growth of 18% to 22%[33] - For the full year 2025, Huazhu anticipates revenue growth of 2% to 6%, or 5% to 9% excluding the DH segment, with management franchise revenue growth of 17% to 21%[33] Shareholder Returns - The company declared a cash dividend of approximately $300 million for the second half of 2024, equating to $0.097 per ordinary share[4] - Huazhu announced a shareholder return plan totaling up to USD 2 billion over three years, with approximately USD 767 million allocated for cash dividends and share repurchases in 2024[32] Non-GAAP Measures - The company utilizes non-GAAP financial measures such as adjusted net profit and adjusted EBITDA to provide meaningful supplemental information regarding its performance[37] - EBITDA is considered a useful financial indicator for assessing operational and financial performance before the impact of financing and taxes[39] - The company believes that adjusted EBITDA better reflects the financial performance capability of its hotels by excluding certain expenses[39] - The company's non-GAAP financial measures may not be comparable to similar measures used by other companies due to differences in calculation methods[41] Market Presence and Strategy - The company plans to continue expanding its management franchise and leasing models to enhance revenue streams and market presence[44] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[58] - The company is focusing on enhancing its brand and customer retention strategies to drive future growth in the hospitality sector[45] Debt and Cash Flow - The total debt and net cash balance as of December 31, 2024, were RMB 5.4 billion (approximately USD 743 million) and RMB 2.1 billion (approximately USD 288 million), respectively[30] - The operating cash inflow for Q4 2024 was RMB 2.7 billion (approximately USD 371 million), while the investment cash outflow was RMB 3.1 billion (approximately USD 424 million)[30] Operational Metrics - In Q4 2024, the average daily rate (ADR) for Legacy-Huazhu hotels was RMB 277, down from RMB 284 in Q4 2023 and RMB 301 in the previous quarter[10] - The occupancy rate for all operating Legacy-Huazhu hotels in Q4 2024 was 80.0%, compared to 80.5% in Q4 2023 and 84.9% in the previous quarter[10] - The average daily room rate for leased and owned hotels in Q4 2024 is projected to be RMB 353, a slight decrease of 0.7% compared to Q4 2023[68] - The occupancy rate for leased and owned hotels remained stable at 83.7% in Q4 2024, unchanged from the previous year[68]