Financial Performance - In Q2 2025, the company reported a revenue increase of 4.5% year-on-year to 6.4 billion RMB, with a net profit of 1.5 billion RMB, reflecting a 36.4% year-on-year growth and a 67.8% quarter-on-quarter increase [2] - The hotel operating revenue reached 26.9 billion RMB, showing a 15% year-on-year increase [2] Operational Metrics - Key operational metrics continued to decline year-on-year, with Average Daily Rate (ADR) down 2% to 290 RMB, occupancy rate (OCC) decreasing from 82.6% to 81%, and Revenue per Available Room (RevPAR) down 3.7% to 235 RMB [3] - However, these metrics showed improvement compared to Q1 2025, recovering to 98.1%, 98.4%, and 96.2% respectively [3] Expansion Strategy - The company opened 595 new hotels in Q2, a slowdown compared to Q1, with economy and mid-range hotels making up 44% and 42% of new openings respectively [5] - By the end of Q2, the company operated a total of 12,137 hotels, with a net increase of 452 hotels from the previous quarter [2][5] Brand Performance - The HanTing brand launched a new 4.0 version in Q2, while the Juzi Hotel surpassed 1,000 openings, indicating a successful strategy in the competitive mid-range hotel market [7] - The Intercity brand saw a 57.1% year-on-year increase in operating and upcoming hotels, with a RevPAR of 370 RMB [7][8] Membership and Revenue Expectations - As of the end of Q2, the company had 288 million members, a 17.5% year-on-year increase, with a 28.8% rise in member booking nights [8] - The company anticipates Q3 2025 revenue growth between 2% to 6%, with management and franchise income expected to grow by 20% to 24% [9] Market Outlook - Despite a prosperous summer travel market, the company predicts a decline in RevPAR for Q3 due to extreme weather and macroeconomic uncertainties, although the decline is expected to be less severe than in Q2 [9] - The company remains optimistic about long-term growth in the Chinese tourism and hotel industry, despite short-term challenges [8][9]

Core Viewpoint - Huazhu Group reported a 4.5% year-on-year revenue growth in Q2 2025, reaching 6.4 billion RMB, with a net profit increase of 36.4% year-on-year to 1.5 billion RMB, indicating strong financial performance despite challenges in the hotel market [1] Financial Performance - In Q2 2025, Huazhu's revenue was 6.4 billion RMB, net profit was 1.5 billion RMB, and hotel operating revenue reached 26.9 billion RMB, reflecting a 15% year-on-year growth [1] - The company had 12,137 operating hotels as of June 30, 2025, with a net increase of 452 hotels from the previous quarter [1] Operational Metrics - Key operational metrics showed a continued decline year-on-year: Average Daily Rate (ADR) decreased by 2% to 290 RMB, occupancy rate (OCC) fell from 82.6% to 81%, and Revenue per Available Room (RevPAR) dropped by 3.7% to 235 RMB [2] - However, these metrics improved compared to Q1 2025, recovering to 98.1%, 98.4%, and 96.2% respectively [2] Expansion Strategy - In Q2 2025, Huazhu opened 595 new hotels, a slowdown compared to Q1, with economy and midscale hotels making up 44% and 42% of new openings, respectively [3] - The company’s strategy focuses on expanding into untapped markets, with a total of 1,416 cities covered by operating and upcoming hotels, an increase of 88 cities year-on-year [3] Brand Performance - The launch of the new 4.0 version of Hanting Hotels and the opening of over 1,000 Orange Hotels highlight Huazhu's efforts to differentiate in the competitive midscale market [5] - The mid-to-high-end brand, Intercity, saw a 57.1% year-on-year increase in operating and upcoming hotels, with a RevPAR of 370 RMB [5] Future Outlook - Huazhu aims to open a total of 2,300 hotels in 2025, with a focus on maintaining a stable and healthy opening pace despite macroeconomic uncertainties [5] - The company anticipates Q3 2025 revenue growth between 2% to 6%, with management and franchise income expected to rise by 20% to 24% year-on-year [6] - Despite a predicted decline in RevPAR for Q3 due to external factors, the decrease is expected to be less severe than in Q2 [6]

Core Insights - H World Group Limited reported a strong second-quarter performance for 2025, with a 22.8% year-on-year increase in asset-light revenues, driven by hotel GMV growth, loyalty engagement, and network expansion [1][2][3] Financial Performance - Hotel turnover increased by 15.0% year-on-year to RMB 26.9 billion in Q2 2025, while total adjusted EBITDA rose 11.3% year-on-year to RMB 2.3 billion [2] - Manachise and franchise gross operating profit reached RMB 1.9 billion in Q2 2025, a 23.2% increase from the previous year, accounting for 64% of total gross operating profit [3] Strategic Developments - The company opened 595 hotels in Q2 2025, on track to meet its target of 2,300 gross openings for the full year [4] - H World Group operates a total of 12,137 hotels or 1,184,915 hotel rooms globally as of June 30, 2025 [4] Brand Performance - Hanting Hotel ranked No. 1 in HOTELS Magazine's "World's Top 50 Hotel Brands" list, with 4,401 hotels or 378,569 rooms in operation [5] - The Group's presence in the upper-midscale market increased, with over 1,500 hotels in operation, and InterCity Hotel saw a 57.1% year-on-year performance increase [6] Customer Engagement - Customer loyalty strengthened, with membership reaching 288 million as of June 30, and direct bookings through H World CRS accounted for 65.1% of total reservations, a 5.2 percentage point increase from the prior year [7] Growth Outlook - H World has a total of 2,947 hotels in the development pipeline globally and remains optimistic about long-term growth in China's travel and hospitality industry [8] Shareholder Returns - The Board of Directors declared a cash dividend of approximately US$250 million for the first half of 2025, amounting to US$0.081 per ordinary share [9]

Core Insights - Huazhu Group reported a strong financial performance for Q2 2025, with hotel revenue reaching 26.9 billion yuan, a year-on-year increase of 15% [1] - The group’s total revenue was 6.4 billion yuan, up 4.5% year-on-year, while adjusted net profit rose to 1.35 billion yuan, reflecting a 7.6% increase [1] - The company continues to expand its hotel network, with a total of 12,137 operating hotels, an 18% increase year-on-year [1] Financial Performance - Hotel revenue for Q2 2025 was 26.9 billion yuan, a 15% increase from the previous year [1] - Total revenue reached 6.4 billion yuan, marking a 4.5% year-on-year growth [1] - Adjusted net profit was 1.35 billion yuan, up 7.6% year-on-year, and adjusted EBITDA was 2.3 billion yuan, reflecting an 11.3% increase [1] Operational Metrics - The average daily rate (ADR) was 290 yuan, with an occupancy rate (OCC) of 81% and revenue per available room (RevPAR) of 235 yuan, all showing recovery compared to the previous quarter [3] - The number of new hotel openings in Q2 was 595, with a focus on economy and mid-range hotels, which accounted for 44% and 42% of new openings, respectively [3] - The total number of operating and upcoming hotels reached 12,016 and 2,925, respectively, covering 1,416 cities [3] Strategic Initiatives - Huazhu launched the new Hanting 4.0 version, aimed at providing affordable and comfortable accommodation while ensuring a stable profit model for investors [4] - The company’s mid-range brand, Orange Hotel, has surpassed 1,000 openings, achieving a 12-fold growth in 8 years, indicating a successful differentiation strategy in the competitive market [5] - The Intercity Hotel brand is expanding rapidly, with a 57.1% year-on-year increase in operating and upcoming hotels, and a RevPAR of 370 yuan [7] Membership and Customer Engagement - The membership program, Huazhu Club, reached 288 million members, a 17.5% increase year-on-year, with a significant rise in direct bookings [8] - The company introduced a price guarantee policy to enhance consumer trust and increase member retention [8] - Continuous optimization of the supply chain is being implemented to ensure better quality and lower costs for franchisees [8]

北京商报讯(记者吴其芸)8月20日，华住集团发布2025年二季度财务业绩，报告期内，华住集团酒店营 业额269亿元，同比增长15%；收入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%。 财报显示，截至2025年二季度末，华住集团在营酒店总数达12137家，同比增长18%；在营客房总数 1184915间，同比增加18.3%。报告期内，集团新开业酒店597家，待开业酒店2947家，期末运营中及待 开业酒店合计覆盖城市达1522个。 聚焦华住中国业绩，财报显示，2025年二季度，在市场供给增加的压力下，华住中国的日均房价 (ADR)、入住率(OCC)和平均可出租客房收入(RevPAR)分别为290元、81%和235元，均较上季度有所回 升，并分别恢复至2024年同期的98.1%、98.4%和96.2%。同时，华住中国新开业门店数量为595家，其 中经济型酒店和中档酒店占比分别达44%、42%。期末，华住中国运营中及待开业酒店合计覆盖城市达 到1416个，较上年同期增加88个。 ...

Group 1 - The core viewpoint of the article highlights Huazhu Group's strong financial performance in Q2 2025, with significant year-on-year growth in hotel revenue and adjusted net profit [1] - In Q2 2025, Huazhu Group's hotel operating revenue reached 26.9 billion yuan, a 15% increase year-on-year, while total revenue was 6.4 billion yuan, up 4.5% [1] - The adjusted net profit for the quarter was 1.35 billion yuan, reflecting a 7.6% year-on-year growth, and adjusted EBITDA was 2.3 billion yuan, increasing by 11.3% [1] Group 2 - As of the end of Q2 2025, Huazhu Group operated a total of 12,137 hotels, marking an 18% increase year-on-year, with a total of 1,184,915 rooms, up 18.3% [1] - The company opened 597 new hotels during the quarter, with a total of 2,947 hotels in the pipeline, covering 1,522 cities [1] - The average daily room rate, occupancy rate, and average revenue per available room for Huazhu China were 290 yuan, 81%, and 235 yuan, respectively, showing recovery compared to the previous quarter [1] Group 3 - The hotel industry in China is undergoing structural changes, with oversupply in high-end hotels, a need for upgrades in budget hotels, and rapid growth in mid-range hotels [2] - Huazhu's membership program, Huazhu Club, reached 288 million members, a 17.5% increase year-on-year, indicating a shift towards direct sales and reduced reliance on third-party platforms [2] - Industry experts predict that competition will intensify, with hotel brands needing to enhance their competitiveness through improved booking and membership systems to attract more owners [2]

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]