Financial Data and Key Metrics Changes - The group's revenue grew by 4.5% year over year to RMB 6.4 billion, near the high end of previous guidance [15] - Adjusted EBITDA rose by 11.3% year over year to RMB 2.3 billion, while adjusted net income increased by 7.6% year over year to RMB 1.3 billion [17] - The Managers and Franchise business revenue reported a robust 22.8% year over year growth to RMB 2.9 billion, with gross operating profit rising by 23.2% year over year to RMB 1.9 billion [18] Business Line Data and Key Metrics Changes - The hotel group's GMV grew by 15% year over year, with a member base increase of 17.5% year over year to nearly 290 million [7] - Room nights booked by members exceeded 60 million nights, representing a 28.8% year over year growth [7] - The lease and own business revenue and gross operating profit decreased by 7.6% and 13.4% year over year, respectively [19] Market Data and Key Metrics Changes - The domestic number of travelers continues to grow steadily, but the hotel industry faces challenges due to rapid hotel supply increase and macroeconomic factors affecting business travel and consumer spending [6] - The company achieved an 18.3% year over year increase in the number of rooms in operation [6] Company Strategy and Development Direction - The company remains focused on high-quality growth, securing prime locations in major cities, and deepening presence in lower-tier cities [6] - The launch of Hanqing 4.0 represents a significant supply chain reform aimed at achieving lower costs and higher quality [10] - The company aims to reach a strategic target of 20,000 hotels in 2,000 cities in the mid-term [11] Management's Comments on Operating Environment and Future Outlook - Management expects RevPAR for the third quarter to have a slight year-over-year decline, with full-year RevPAR performance anticipated to be slightly below previous guidance due to macro uncertainties and increased supply [24] - The company is actively seeking upgrades for existing hotels and rationalizing new hotel openings to mitigate potential cannibalization effects [27] Other Important Information - The company declared a USD 250 million interim cash dividend, representing 74% of the first half net profit, along with a share buyback of approximately USD 62 million [20] - The company is committed to enhancing membership benefits and expanding loyalty points usage scenarios to boost direct sales capability [13] Q&A Session Summary Question: Expectations for RevPAR in 3Q and 2025, and potential impact from new hotel openings - Management expects a slight year-over-year decline in RevPAR for 3Q, with full-year RevPAR anticipated to be slightly below previous guidance due to macro uncertainties and increased supply [24][25][26] Question: Strategic focus between asset-heavy and asset-light business segments - The company has been actively transforming towards an asset-light model, with the franchise and managed business contributing 64% of total gross operating profit [30][32] Question: Store expansion sentiment and margin optimization - Management will be stricter on new signings to ensure profitability for franchisees, while also focusing on cost optimization and stable margin performance [38][39] Question: Supply chain strengthening and future operating costs - The company has achieved a 10-20% cost decline in certain materials and reduced construction periods through supply chain enhancements [51][52] Question: Future shift towards asset-light model for DH - The company is carefully negotiating lease contracts and screening profitability of lease hotels, aiming for a gradual shift towards an asset-light model [53][54][55]

Financial Data and Key Metrics Changes - The group's revenue grew by 4.5% year over year to RMB 6.4 billion, near the high end of previous guidance [15] - Adjusted EBITDA rose by 11.3% year over year to RMB 2.3 billion, while adjusted net income increased by 7.6% year over year to RMB 1.3 billion [16] - The managed and franchised business revenue reported a robust 22.8% year over year growth to RMB 2.9 billion, with gross operating profit rising by 23.2% year over year to RMB 1.9 billion [17][18] Business Line Data and Key Metrics Changes - The hotel group's GMV grew by 15% year over year, with a member base increase of 17.5% year over year to nearly 290 million [7] - The number of rooms in operation increased by 18.3% year over year, contributing to high-quality network expansion [6] - The lease and own business revenue and gross operating profit decreased by 7.6% and 13.4% year over year, respectively [19] Market Data and Key Metrics Changes - The domestic number of travelers continues to grow steadily, but the hotel industry faces challenges due to increased hotel supply and macroeconomic factors affecting business travel [6] - The company observed a slight year-over-year decline in RevPAR for the third quarter, influenced by macro uncertainties and increased supply [24] Company Strategy and Development Direction - The company remains focused on high-quality growth, emphasizing prime locations in major cities and further penetration into lower-tier cities [6] - The launch of Hanqing 4.0 represents a significant supply chain reform aimed at achieving lower costs and higher quality [10] - The company aims to reach a strategic target of 20,000 hotels in 2,000 cities in the mid-term, with a focus on the economy and middle-scale segments [11] Management's Comments on Operating Environment and Future Outlook - Management noted that the overall performance during the summer holiday was slightly below expectations, leading to a revised outlook for RevPAR for the full year [24] - The company is actively seeking rental reductions and optimizing revenue management to maintain healthy margins in the lease and own business [35] - Management expressed confidence in the long-term growth potential of the Orange and Intercity brands, with plans for continued expansion and product upgrades [50] Other Important Information - The company declared a USD 250 million interim cash dividend, representing 74% of the first half net profit, along with a share buyback of approximately USD 62 million [20] - The company is committed to enhancing membership benefits and improving direct sales capabilities through the Edge Rewards program [13] Q&A Session Summary Question: Expectations for RevPAR in Q3 and 2025 - Management expects a slight year-over-year decline in RevPAR for Q3, with full-year performance anticipated to be slightly below previous guidance due to macro uncertainties and increased supply [24][26] Question: Impact of New Hotel Openings on Existing Hotels - Management acknowledged potential cannibalization from new hotel openings but emphasized ongoing product upgrades and rational positioning for new openings to mitigate negative impacts [28] Question: Strategic Focus on Asset-Light vs. Asset-Heavy Segments - Management highlighted the ongoing asset-light transformation, with a stable gross margin in the asset-light business and a gradual reduction in exposure to the asset-heavy segment [34][36] Question: Store Expansion and Franchise Sentiment - Management indicated a strict approach to new signings, focusing on high-quality locations and ensuring franchisee profitability, while maintaining a healthy pace of new openings [40] Question: Supply Chain Strengthening and Cost Reduction - Management detailed efforts to enhance supply chain capabilities, achieving a 10-20% cost decline in materials and a 30-day reduction in construction periods for new products [55]

人民财讯8月20日电，8月20日，华住集团发布财报显示，今年二季度实现酒店营业额269亿元，同比增 长15%。同期，集团实现收入达64亿元，同比增长4.5%，经调整净利润13.5亿元，同比增长7.6%，经调 整EBITDA(息税折旧及摊销前利润)23亿元，同比增长11.3%。 ...

Core Viewpoint - H World Group reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and showing an increase from $0.46 per share a year ago, indicating a positive earnings surprise of +5.36% [1][2] Financial Performance - The company achieved revenues of $897 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.77%, and up from $846 million in the same quarter last year [2] - Over the last four quarters, H World Group has exceeded consensus EPS estimates only once, while it has topped revenue estimates two times [2] Stock Performance and Outlook - H World Group shares have increased by approximately 1% since the beginning of the year, in contrast to the S&P 500's gain of 9% [3] - The company's earnings outlook is crucial for investors, as it reflects current consensus earnings expectations for upcoming quarters [4] Estimate Revisions and Industry Impact - Prior to the earnings release, the estimate revisions trend for H World Group was unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the next quarter is $0.64 on revenues of $921.42 million, and for the current fiscal year, it is $1.93 on revenues of $3.43 billion [7] - The Hotels and Motels industry, to which H World Group belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Q2 2025 Key Highlights - Hotel GMV reached RMB 26911 million[22] - Legacy-Huazhu RevPAR decreased by 38% year-over-year[12,24] - Legacy-DH RevPAR increased by 81% year-over-year[12,26] - Total number of rooms in operation increased by 183% year-over-year, reaching 1184915[12,14,21] - H Rewards members increased by 175% year-over-year, totaling 288 million[12,15,62] - Room nights booked by members increased by 288% year-over-year, exceeding 60 million[12,16] - Manachised and Franchised (M&F) revenue increased by 228% year-over-year, reaching RMB 29 billion[18,75] - Total revenue increased by 45% year-over-year, reaching RMB 64 billion[18,70] - Total Adjusted EBITDA increased by 113% year-over-year, reaching RMB 23 billion[19,70] - Adjusted Diluted EPS increased by 95% year-over-year, reaching RMB 042[19] Financial Performance - Total revenue for Q2 2025 was RMB 6426 million, a 45% increase year-over-year[18,70] - Adjusted EBITDA for Q2 2025 was RMB 2270 million, an 113% increase year-over-year[19,70] - M&F revenue for Q2 2025 was RMB 2865 million, a 228% increase year-over-year[18,75] - M&F Gross Operating Profit for Q2 2025 was RMB 1896 million, a 232% increase year-over-year[18,77] Network and Product Development - Hanting Hotels ranked No1 on the "World's Top 50 Hotel Brands" list with 378569 rooms in operation as of June 30, 2025[30,32,117] - The company is enhancing its presence in lower-tier cities[46] - The company is stepping up the development of the upper-midscale segment, with a 233% year-over-year increase in the number of upper-midscale hotels in operation and pipeline[50,51] Guidance - The company projects M&F revenue to grow 20%-24% in Q3 2025 compared to Q3 2024[101] - The company projects total revenue to grow 2%-6% in Q3 2025 compared to Q3 2024, or 4%-8% excluding DH[103]

Core Insights - H World Group-S reported its interim unaudited financial performance on August 20, showing a revenue of RMB 11.8 billion (approximately USD 1.7 billion) for the first half of 2025, representing a 3.5% increase compared to the first half of 2024 [1] - The net profit attributable to H World Group Limited was RMB 2.4 billion (approximately USD 340 million), an increase from RMB 1.7 billion in the first half of 2024 [1] - As of June 30, 2025, the company operated a total of 12,137 hotels [1]

Hotel Operations - As of June 30, 2025, H World Group operated a total of 12,137 hotels and 1,184,915 rooms, with 595 hotels opened in Q2 2025[6] - The number of leased and owned hotels as of June 30, 2025, was 2,130, while manachised and franchised hotels totaled 2,829, indicating a net addition of 452 hotels during the quarter[75] - The total number of hotels in operation as of June 30, 2025, was 12,137, with 2,947 hotels in the pipeline[84] - The company had a total of 12,016 hotels as of June 30, 2025, with 2,925 hotels in the pipeline, reflecting ongoing expansion efforts[77] - As of June 30, 2025, 3 hotels were temporarily closed due to repair and renovation[81] Financial Performance - Hotel turnover increased 15.0% year-over-year to RMB26.9 billion in Q2 2025, while revenue rose 4.5% year-over-year to RMB6.4 billion (US$897 million)[4] - Net income attributable to H World was RMB1.5 billion (US$215 million) in Q2 2025, up from RMB1.1 billion in Q2 2024[4] - Adjusted EBITDA (non-GAAP) for Q2 2025 was RMB2.3 billion (US$317 million), compared to RMB2.0 billion in Q2 2024[4] - For the first half of 2025, total revenue was RMB11.8 billion (US$1.7 billion), a 3.5% increase from the first half of 2024[16] - Total revenue for the quarter ended June 30, 2025, was RMB 6,426 million (approximately US$ 897 million), representing an increase from RMB 5,395 million in the previous quarter[64] - Net income for the quarter ended June 30, 2025, was RMB 1,559 million (approximately US$ 217 million), compared to RMB 899 million in the previous quarter, reflecting a growth of 73.3%[64] - Adjusted EBITDA for the six months ended June 30, 2025, reached RMB 3,766 million, up from RMB 3,461 million in the same period last year, reflecting an increase of 8.8%[68] - The adjusted net income attributable to H World Group for the quarter ended June 30, 2025, was RMB 1,349 million, compared to RMB 775 million in the same quarter of the previous year, an increase of 73.7%[68] Occupancy and Revenue Metrics - The occupancy rate for Legacy-Huazhu hotels was 81.0% in Q2 2025, down from 82.6% in Q2 2024[10] - Legacy-DH segment achieved an 8.1% year-over-year blended RevPAR increase in Q2 2025, driven by a 5.6 percentage-point increase in occupancy rate[15] - Average daily room rate (ADR) for leased and owned hotels decreased by 2.7% year-over-year to RMB 375[78] - Occupancy rate for leased and owned hotels was 85.6%, down 2.3 percentage points year-over-year[78] - RevPAR for leased and owned hotels declined by 5.3% year-over-year to RMB 321[78] - Same-hotel RevPAR for economy hotels decreased by 8.2% year-over-year to RMB 194[79] - Average daily room rate (ADR) for manachised and franchised hotels increased by 8.7% year-over-year to EUR 112[83] - Occupancy rate for manachised and franchised hotels improved by 7.1 percentage points year-over-year to 63.8%[83] - RevPAR for manachised and franchised hotels rose by 20.8% year-over-year to EUR 72[83] Cash Flow and Dividends - Operating cash inflow in the first half of 2025 was RMB3.2 billion (US$452 million), compared to RMB3.1 billion in the first half of 2024[37] - The company declared a cash dividend of approximately US$250 million for the first half of 2025, equating to US$0.081 per ordinary share[9] - The Board approved a cash dividend of approximately US$250 million for the first half of 2025, equating to US$0.081 per ordinary share[39] - The company has no dividends payable as of June 30, 2025[61] Costs and Expenses - Hotel operating costs in the first half of 2025 were RMB7.4 billion (US$1.0 billion), nearly unchanged from RMB7.3 billion in the first half of 2024[25] - SG&A expenses in the second quarter of 2025 were RMB969 million (US$135 million), a 5.4% year-over-year increase, primarily due to an increase in SBC[25] - Income from operations in the second quarter of 2025 was RMB1.8 billion (US$250 million), reflecting a 13.7% year-over-year increase[28] - Operating margin in the second quarter of 2025 improved to 27.8%, up from 25.6% in the same quarter of 2024[29] - EBITDA (non-GAAP) in the second quarter of 2025 was RMB2.5 billion (US$344 million), compared to RMB1.9 billion in the same quarter of 2024[32] Assets and Liabilities - Total current assets increased from RMB 13,215 million as of December 31, 2024, to RMB 15,668 million as of June 30, 2025[61] - Total liabilities rose from RMB 50,281 million as of December 31, 2024, to RMB 52,486 million as of June 30, 2025[62] - Cash and cash equivalents increased from RMB 7,474 million to RMB 10,145 million during the same period[61] - Operating lease right-of-use assets slightly increased from RMB 24,992 million to RMB 25,073 million[61] - The depreciation and amortization expense for the quarter ended June 30, 2025, was RMB 255 million, slightly lower than RMB 259 million in the previous quarter[70] - The company experienced a foreign exchange loss of RMB 366 million for the quarter ended June 30, 2025, compared to a gain of RMB 12 million in the same quarter of the previous year[68]

Financial Performance - In Q2 2025, the company achieved total revenue of 6.426 billion RMB, a year-on-year increase of 4.52% [1] - The net profit attributable to shareholders for Q2 2025 was 1.544 billion RMB, reflecting a year-on-year increase of 44.7% [1] - For the first half of 2025, total revenue reached 11.821 billion RMB, up 3.46% year-on-year, with net profit attributable to shareholders at 2.438 billion RMB, an increase of 41.25% [1] Dividend Announcement - The company proposed a cash dividend of 0.081 USD per ordinary share for the first half of 2025 [1] Hotel Operations - As of June 30, 2025, the company operated 12,016 hotels, including 547 leased and owned hotels, and 11,469 managed and franchised hotels [1] - The total number of operating hotel rooms was 1,159,086, with 80,587 rooms in leased and owned hotels, and 1,078,499 rooms in managed and franchised hotels [1] - There are 2,925 hotels in the pipeline, comprising 8 leased and owned hotels, and 2,917 managed and franchised hotels [1] Strategic Insights - The CEO highlighted that despite a slight decline in average revenue per available room, strong operating profit growth was achieved due to network expansion [2] - The company opened 595 hotels in the quarter and aims to open a total of 2,300 hotels in 2025 [2] - The company remains cautious about the short-term industry outlook due to macroeconomic uncertainties, increased supply, and weak business travel demand, but maintains optimism for long-term growth in China's tourism and hotel industry [2] International Operations - The Legacy-DH segment reported an 8.1% year-on-year increase in average revenue per available room in Q2 2025, driven by a 5.6 percentage point increase in occupancy rate [2] - The company plans to continue enhancing hotel operations, focusing on cost reduction and efficiency, while developing its asset-light portfolio [2]

格隆汇8月20日丨华住集团-S(01179.HK)发布公告，于2025年第二季度，收入同比增长4.5%至人民币64 亿元，接近先前所公布收入较2024年第二季度增长1%至5%的指引的上限。归属于华住集团有限公司净 利润为人民币15亿元，相比之下2024年第二季度为人民币11亿元及上一季度为人民币894百万元。于 2025年第二季度，EBITDA（非公认会计准则）为人民币25亿元，相比之下2024年第二季度为人民币19 亿元及上一季度为人民币16亿元。董事会已批准宣派及派付2025年上半年普通现金股息每股普通股 0.081美元，或每股美国预托股份0.81美元，总额约为250百万美元。 ...

华住集团-S(01179)发布公告，该公司将于2025年9月19日派发中期股息每股0.081美元。 ...