H World Group (HTHT) closed the last trading session at $33.30, gaining 0.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $58.75 indicates a 76.4% upside potential.The mean estimate comprises four short-term price targets with a standard deviation of $5.50. While the lowest estimate of $51 indicates a 53.2% increase from the current price level, the most optimistic analyst expec ...

SINGAPORE and SHANGHAI, China, Jan. 22, 2024 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ:HTHT) ("H World", "we" or "our"), a key player in the global hotel industry, today announced preliminary results for hotel operations in the fourth quarter ("Q4 2023") and the full year ended December 31, 2023. Business update For our Legacy-Huazhu business, our RevPAR in Q4 2023 recovered to 120% of the 2019 level, supported by the sustained recovery in both leisure and business travel demand. Breaking down into ...

H World Group Limited (NASDAQ:HTHT) Q3 2023 Earnings Call Transcript November 27, 2023 8:00 PM ET Company Participants Jason Chen - Director, Investor Relations HE Jihong - Chief Financial Officer JIN Hui - Chief Executive Officer Conference Call Participants Ronald Leung - Bank of America Simon Cheung - Goldman Sachs Sijie Lin - CICC Operator Thank you for standing by and welcome to the H World Q3 2023 Earnings Conference Call. All participants are in a listen-only mode. There will be a presentation follow ...

Third Quarter of 2023 Earnings Call ...

Financial Performance - Hotel revenue for Q3 2023 increased by 55.1% year-over-year to RMB 23.5 billion, and by 59.2% excluding Steigenberger Hotels GmbH[2] - Total revenue for Q3 2023 grew by 53.6% year-over-year to RMB 6.3 billion (approximately $861 million), exceeding previous guidance of 43% to 47% growth[2] - Net profit attributable to the company for Q3 2023 was RMB 1.3 billion (approximately $183 million), a significant recovery from a net loss of RMB 717 million in Q3 2022[2] - Adjusted EBITDA for Q3 2023 was RMB 2.2 billion (approximately $300 million), compared to RMB 491 million in Q3 2022[2] - Operating profit for Q3 2023 was RMB 1.9 billion (approximately USD 262 million), compared to RMB 500 million in Q3 2022 and RMB 1.4 billion in the previous quarter[11] - The operating profit margin was 30.4%, significantly up from 12.2% in Q3 2022 and 25.0% in the previous quarter[11] - EBITDA for Q3 2023 was RMB 2.1 billion (approximately USD 293 million), compared to RMB 149 million in Q3 2022 and RMB 1.7 billion in the previous quarter[12] - The company reported a year-over-year revenue growth of 61.8% from the Legacy-Huazhu segment, with revenue of RMB 5.1 billion in Q3 2023[7] - The company reported an adjusted net profit of RMB 1,390 million for Q3 2023, compared to an adjusted net loss of RMB 375 million in Q3 2022[25] Hotel Operations - As of September 30, 2023, the company operated 9,157 hotels with a total of 885,756 rooms[4] - The company opened 545 hotels in Q3 2023 and closed 139 hotels during the same period[4] - Legacy-DH had 129 operating hotels with an occupancy rate of 69.0% in Q3 2023, up from 66.1% in Q3 2022[6] - The total number of hotels operated by Huazhu Group as of September 30, 2023, was 9,028, with a net increase of 406 hotels during the quarter[27] - The total number of hotels as of September 30, 2023, was 9,157, with a net increase of 1 hotel during the third quarter[31] - The company temporarily closed 8 hotels in Q3 2023 for brand upgrades or business model changes[28] - The company has 24 hotels under development as of September 30, 2023[31] Revenue Breakdown - Revenue from leased and owned hotels was RMB 3.878 billion (approximately USD 531 million), a year-over-year increase of 43.9% and a quarter-over-quarter increase of 8.0%[8] - Revenue from management franchise and licensed hotels was RMB 2.268 billion (approximately USD 311 million), showing a year-over-year increase of 72.7% and a quarter-over-quarter increase of 22.2%[8] - The average daily rate (ADR) for Legacy-Huazhu hotels in Q3 2023 was RMB 324, up from RMB 254 in Q3 2022[5] - The average revenue per available room (RevPAR) for leased and owned hotels rose by 65.8% year-over-year to RMB 356 in Q3 2023[29] - The average revenue per available room (RevPAR) for economy hotels increased by 40.1% year-over-year, reaching €216 as of September 30, 2023[30] - The average daily rate (ADR) for managed and franchised hotels rose by 37.3% year-over-year, reaching €209 for the same period[30] Cash Flow and Financial Position - In Q3 2023, operating cash inflow was RMB 1.2 billion (approximately $163 million) while investment cash outflow was RMB 2 billion (approximately $282 million) primarily due to the purchase of RMB 1.8 billion in time deposits and financial products[13] - As of September 30, 2023, total cash and cash equivalents amounted to RMB 5.8 billion (approximately $790 million) with restricted cash of RMB 529 million (approximately $73 million)[13] - Total debt and net cash balance as of September 30, 2023, were RMB 5.2 billion (approximately $714 million) and RMB 1.1 billion (approximately $149 million) respectively[13] - The company holds RMB 2.8 billion in time deposits and financial products, including RMB 2 billion in short-term investments, and has available undrawn credit facilities of RMB 2.7 billion[13] - Total current assets increased from RMB 9,178 million on December 31, 2022, to RMB 10,798 million as of September 30, 2023, representing a growth of 17.6%[20] - Cash and cash equivalents rose from RMB 3,583 million to RMB 5,767 million, an increase of 60.7%[20] - Total liabilities decreased from RMB 52,704 million to RMB 48,288 million, a reduction of 8.0%[21] - Total equity increased significantly from RMB 8,803 million to RMB 14,474 million, reflecting a growth of 64.5%[21] - The company reported a short-term debt increase from RMB 3,288 million to RMB 4,234 million, a rise of 28.8%[21] Future Outlook - The company expects Q4 2023 revenue to grow between 41% to 45% year-over-year, or 48% to 52% excluding DH[3] - For Q4 2023, the company expects revenue growth between 41% to 45% compared to Q4 2022, or 48% to 52% growth excluding DH[13] - Huazhu Group plans to expand its market presence by opening 1,000 new hotels in 2024[22] - Huazhu Group plans to open 2,935 new hotels, indicating a strong pipeline for future growth[28] - Future growth strategies include expanding its hotel portfolio and enhancing brand presence in various markets[18] Key Metrics - The occupancy rate for all operating Legacy-Huazhu hotels in Q3 2023 was 85.9%, compared to 76.0% in Q3 2022[5] - The occupancy rate for leased and owned hotels improved by 14.7 percentage points year-over-year to 87.8% in Q3 2023[29] - The average daily rate for leased hotels remained stable at €113, with a year-over-year change of 0.0%[33] - The average occupancy rate for leased hotels increased by 4.0 percentage points year-over-year, reaching 71.4%[33]

Hotel Operations - As of September 30, 2023, H World Group operated a total of 9,157 hotels and 885,756 hotel rooms[2]. - The total number of hotels as of September 30, 2023, was 9,028, with 545 hotels opened in Q3 2023, netting an addition of 406 hotels[52]. - The company reported a total of 2,935 unopened hotels in the pipeline as of September 30, 2023, indicating ongoing expansion plans[53]. - As of September 30, 2023, the company had 24 unopened hotels in the pipeline for leased hotels[57]. - The company added 2 leased hotels in Q3 2023, bringing the total to 82[57]. - The company has a total of 9,157 operational hotels with 2,970 unopened hotels in the pipeline[60]. Financial Performance - Revenue for Q3 2023 was RMB6.3 billion (US$861 million), a 53.6% year-over-year increase, surpassing the guidance of 43%-47%[3]. - Hotel turnover increased 55.1% year-over-year to RMB23.5 billion in Q3 2023, with a 59.2% increase excluding Legacy-DH[2]. - Net income attributable to H World was RMB1.3 billion (US$183 million) in Q3 2023, compared to a net loss of RMB717 million in Q3 2022[3]. - Adjusted EBITDA (non-GAAP) for Q3 2023 was RMB2.2 billion (US$300 million), up from RMB491 million in Q3 2022[4]. - Operating margin for Q3 2023 was 30.4%, up from 12.2% in Q3 2022 and 25.0% in Q2 2023[22]. - Net income for the quarter was RMB 1,352 million, compared to a net income of RMB 1,036 million in the previous quarter, indicating a growth of approximately 30.4%[47]. - The company reported a comprehensive income of RMB 1,328 million for the quarter, compared to RMB 1,239 million in the previous quarter, an increase of 7.2%[47]. Revenue Sources - Revenue from manachised and franchised hotels in Q3 2023 was RMB2.3 billion (US$311 million), a 72.7% year-over-year increase[16]. - The revenue from leased and owned hotels for the quarter ended September 30, 2023, was RMB 2,748 million, up from RMB 1,793 million in the same quarter of the previous year[51]. - Average daily room rate (ADR) for Legacy-Huazhu was RMB324 in Q3 2023, compared to RMB254 in Q3 2022[7]. - Average daily room rate for leased and owned hotels increased to RMB 406, a 38.1% year-over-year change[54]. - Average daily room rate for manachised and franchised hotels was RMB 314, a 26.4% increase year-over-year[54]. Occupancy and RevPAR - The occupancy rate for Legacy-Huazhu hotels was 85.9% in Q3 2023, up from 76.0% in Q3 2022[8]. - Occupancy rate for leased and owned hotels reached 87.8%, up 14.7 percentage points year-over-year[54]. - Same-hotel RevPAR for economy hotels was RMB 216, a 40.1% year-over-year increase[56]. - RevPAR for leased and owned hotels rose to RMB 356, reflecting a 65.8% increase year-over-year[54]. - RevPAR for manachised and franchised hotels increased to RMB 269, a 41.7% year-over-year growth[54]. Costs and Liabilities - Total operating costs in Q3 2023 were RMB4.5 billion, with hotel operating costs representing 52.0% of the quarter's revenue[17]. - Total liabilities increased to RMB 52,704 million from RMB 48,288 million, reflecting a rise of approximately 9.0%[45]. - Total current assets decreased to RMB 9,178 million from RMB 10,798 million, a decline of 15%[45]. - Cash and cash equivalents decreased to RMB 3,583 million from RMB 5,767 million, a drop of 37.8%[45]. - Total debt as of September 30, 2023, was RMB5.2 billion (US$714 million), with net cash of RMB1.1 billion (US$149 million)[28]. Cash Flow and Investments - Operating cash inflow in Q3 2023 was RMB1.2 billion (US$163 million), while investing cash outflow was RMB2.0 billion (US$282 million)[27]. - The company reported a cash increase of RMB 5,217 million at the end of the period, compared to RMB 4,680 million at the beginning of the period[49]. - The company’s cash flow from financing activities showed a net cash provided of RMB 461 million for the quarter ended June 30, 2023, contrasting with a net cash used of RMB 3,824 million in the previous quarter[49]. Tax and Expenses - Income tax expense in Q3 2023 was RMB421 million (US$59 million), slightly down from RMB434 million in Q3 2022[23]. - The depreciation and amortization expense for the quarter ended September 30, 2023, was RMB 66 million, compared to RMB 59 million in the same quarter of the previous year[51].

Exhibit 99.1 H WORLD GROUP LIMITED INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Unaudited Interim Condensed Consolidated Balance Sheets as of December 31, 2022 and June 30, 2023 F-2 Unaudited Interim Condensed Consolidated Statements of Comprehensive Income for the Six Months Ended June 30, 2022 and 2023 F-3 Unaudited Interim Condensed Consolidated Statements of Changes in Equity for the Six Months Ended June 30, 2022 and 2023 F-4 Unaudited Interim Condensed Consolidated Statements ...

Second Quarter of 2023 Earnings Call ...

H World Group Limited (NASDAQ:HTHT) Q2 2023 Earnings Conference Call August 24, 2023 9:00 PM ET Company Participants JI Qi - Chairman JIN Hui - Chief Executive Officer HE Jihong - Chief Financial Officer LIU Xinxin - President Jason Chen - Director, Investor Relations Conference Call Participants Ronald Leung - Bank of America Simon Chen - Goldman Sachs Sijie Lin - CICC Lydia Ling - Citi Lina Yan - HSBC Operator Good day and thank you for standing by. Welcome to the H World Quarter 2, 2023 Earnings Conferen ...

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers in Southeast Asia to enhance market penetration [6]. Topic 3: Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D spending increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new product line has been overwhelmingly positive, with a 90% satisfaction rate [9]. Topic 4: Operational Efficiency - Implemented a new supply chain management system, reducing delivery times by 15% [10]. - Automation initiatives in manufacturing led to a 5% reduction in production costs [11]. - Employee training programs were expanded, resulting in a 10% increase in productivity [12]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [13]. - Launched a company-wide recycling program, diverting 50% of waste from landfills [14]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [15]. Topic 6: Corporate Governance - Appointed two new independent directors to the board, enhancing oversight and strategic guidance [16]. - Conducted a comprehensive review of corporate policies to ensure compliance with global standards [17]. - Shareholder engagement initiatives were strengthened, with a 20% increase in attendance at the annual meeting [18].