Core Viewpoint - H World Group Limited, a significant player in the global hotel industry, is set to release its unaudited financial results for Q1 2025 on May 20, 2025, after Hong Kong trading hours and before the U.S. market opens [1]. Company Overview - H World Group Limited operates 11,147 hotels with a total of 1,088,218 rooms across 18 countries as of December 31, 2024 [5]. - The company's hotel brands include Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, Ni Hao Hotel, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon, and Song Hotels [5]. - H World holds master franchise rights for Mercure, Ibis, and Ibis Styles, along with co-development rights for Grand Mercure and Novotel in the pan-China region [5]. Business Model - H World employs a mix of leased and owned, manachised, and franchised hotel models [6]. - As of December 31, 2024, 9% of hotel rooms were operated under the lease and ownership model, while 91% were under the manachise and franchise models [6].

SHANGHAI, May 7, 2025 /PRNewswire/ -- H World Group Limited (NASDAQ: HTHT) (HK: 01179) announced that during the 2025 May Day holiday, hotels under its brands received nearly 6.3 million guests, representing a 30% increase compared to the same period last year. According to the statistics from China's Ministry of Culture and Tourism, during the five-day holiday, there were 314 million domestic trips made in China, reflecting a 6.4% year-on-year increase. Total domestic tourism spending reached 180.27 billio ...

Regulatory Environment - As of December 31, 2024, a total of RMB1,455 million (US$199 million) was not distributable in the form of dividends due to PRC regulations[189]. - The share capital of RMB2,726 million (US$373 million) as of December 31, 2024, is considered restricted due to PRC regulations[189]. - Current PRC laws permit subsidiaries to pay dividends only out of accumulated profits, which are determined according to PRC accounting standards[189]. - PRC regulations may delay or prevent the company from using proceeds from offerings to make loans or additional capital contributions to PRC subsidiaries[190]. - Loans to PRC entities are subject to statutory limits based on total investment and registered capital[191]. - The company must comply with foreign exchange regulations when financing PRC entities, which may affect liquidity and business expansion[192]. - If treated as a PRC resident enterprise, the company could be subject to a 25% PRC income tax on worldwide income[197]. - Non-compliance with PRC regulations could result in fines or sanctions, affecting the ability to grant shares or share options[193]. - The Foreign Investment Law and its implementing rules may impact the company's business operations and financial condition, particularly regarding the VIE structure[219]. - The company may face substantial uncertainties regarding compliance with future regulatory changes related to foreign investments[219]. Financial Performance - In 2022, the company recorded a net loss of RMB1,821 million due to the impact of COVID-19, but operating income in 2023 rebounded to RMB4,714 million and net income reached RMB4,085 million (US$575 million)[229]. - For 2024, the company anticipates operating income of RMB5,200 million and net income of RMB3,048 million (US$418 million)[229]. - As of December 31, 2024, current liabilities exceeded current assets by US$15 million, indicating potential liquidity challenges[229]. - The company may need to seek additional capital through the sale of equity or debt securities, which could dilute existing shareholders' interests[228]. - The company has not entered into hedging transactions to mitigate dilution from the conversion of convertible senior notes due 2026[232]. Market and Trading Conditions - The market price for the company's ADSs has been volatile, ranging from a low of US$27.56 to a high of US$42.04 on the NASDAQ in 2024[220]. - The ordinary shares on the Hong Kong Stock Exchange experienced a high of HK$33.3 and a low of HK$21.0 in 2024[220]. - The trading market for the company's ordinary shares on the Hong Kong Stock Exchange may not be sustained, affecting market price and liquidity[223]. - Short selling practices may lead to significant volatility in the prices of the company's ADSs and ordinary shares[227]. - The company has had to allocate resources to investigate and respond to short seller reports, which could divert management's attention from core operations[227]. Corporate Governance and Shareholder Rights - The company is permitted to rely on exemptions from certain NASDAQ corporate governance standards, which may afford less protection to shareholders[245]. - The company's articles of association contain anti-takeover provisions that could limit opportunities for shareholders to sell their shares at a premium[246]. - There are uncertainties regarding the enforceability of U.S. and Hong Kong court judgments in the Cayman Islands, China, and Germany, which may limit shareholder rights[251]. - The company may face difficulties in protecting shareholder interests due to the legal environment in the Cayman Islands compared to jurisdictions like the U.S. or Hong Kong[253]. - There are significant legal obstacles in China for pursuing shareholder claims or regulatory investigations that are common in the U.S.[255]. Operational Structure - The company operates primarily through subsidiaries in China and Europe, and investors do not hold equity interest in the operating entities in China[203]. - The company relies on contractual arrangements with Consolidated Affiliated Entities to operate restricted businesses, which may not be as effective as direct ownership[210]. - If the contractual arrangements are deemed illegal by PRC authorities, the company may lose control over the Consolidated Affiliated Entities[208]. - The company may face substantial costs and limitations if it exercises the option to acquire equity ownership of the Consolidated Affiliated Entities[214]. - The company relies on legal representatives to execute contracts, which poses risks if they misuse their authority[218]. Audit and Inspection - The PCAOB signed a Statement of Protocol with the CSRC and the Ministry of Finance of the PRC on August 26, 2022, allowing for inspections of registered public accounting firms in Mainland China and Hong Kong[201]. - The PCAOB announced on December 15, 2022, that it could inspect and investigate audit firms in Mainland China and Hong Kong, resulting in the company not being a Commission-Identified Issuer for the fiscal years 2022 and 2023[201]. - The company was identified as a "Commission-Identified Issuer" on May 26, 2022, which could lead to trading prohibitions if audit reports are not inspected for two consecutive years[200]. - The PCAOB's ability to inspect firms may be obstructed by PRC authorities in the future, which could lead to new determinations affecting trading status[201]. - The delisting of the company's ADSs could materially and adversely affect the value of investments[201]. Shareholder Dilution and Rights - The company holds approximately 127.5 million non-vested restricted stocks and 28.0 million share options outstanding, which could lead to dilution if sold[230]. - Holders of ADSs may not receive dividends or distributions if it is deemed illegal or impractical to make them available[235]. - Hong Kong stamp duty may apply to the trading or conversion of the company's ADSs, currently set at a total rate of 0.2% of the greater of the consideration or the value of shares transferred[262]. - The trading prices of the company's ordinary shares and ADSs may be affected by the different characteristics of the capital markets in Hong Kong and the U.S.[256]. - The time required for the exchange between ordinary shares and ADSs may be longer than expected, potentially preventing investors from settling or effecting sales during delays[258].

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]

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]

Core Viewpoint - H World Group Limited (HTHT) is set to report its fourth-quarter 2024 results on March 20, with expectations of mixed performance due to various market factors [1]. Financial Performance - The Zacks Consensus Estimate for HTHT's earnings is 27 cents, reflecting an 18.2% decline from the previous year's actual earnings [3]. - Revenue expectations are pegged at $798.2 million, indicating a 1.6% increase from the year-ago figure [3]. - The company missed the Zacks Consensus Estimate by 11.6% in the last reported quarter [2]. Revenue Drivers - Fourth-quarter revenues are anticipated to increase year over year, driven by steady growth in domestic travel demand and ongoing expansion efforts [4]. - The company expects revenue growth of 1-5% year over year for the fourth quarter, supported by strong occupancy rates and brand recognition [5]. Challenges - Revenue per available room (RevPAR) and average daily rate (ADR) pressures are expected to negatively impact the top line, with a mid-single-digit year-over-year decline in RevPAR anticipated [6]. - The planned closure of leased and owned hotels as part of an asset-light strategy may also affect revenues [6]. - Rising operating costs, particularly in personnel and marketing, are likely to hurt the bottom line [7]. Earnings Prediction - The current model does not predict an earnings beat for HTHT, with an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [8][9].