Hotel Operations and Performance - H World Group's total operating hotels reached 10,286, with 1,001,865 operating rooms as of June 30, 2024[2] - Legacy-Huazhu's occupancy rate in Q2 2024 was 82.6%, up from 81.8% in Q2 2023 and 77.2% in the previous quarter[5] - Legacy-Huazhu's blended RevPAR in Q2 2024 was RMB 244, compared to RMB 250 in Q2 2023 and RMB 216 in the previous quarter[5] - Same-store RevPAR for Legacy-Huazhu hotels operating for at least 18 months decreased by 3.6% YoY to RMB 248 in Q2 2024[5] - Legacy-DH operates 136 hotels with 27,552 rooms, including 16,789 leased rooms and 10,763 managed and franchised rooms as of June 30, 2024[6] - Legacy-DH's average daily rate (ADR) increased to €120 in Q2 2024, up from €117 in Q2 2023 and €104 in Q1 2024[6] - Legacy-DH's occupancy rate reached 68.3% in Q2 2024, compared to 67.1% in Q2 2023 and 55.8% in Q1 2024[6] - Legacy-DH's revenue per available room (RevPAR) was €82 in Q2 2024, up from €78 in Q2 2023 and €58 in Q1 2024[6] - The number of hotels in operation as of June 30, 2024, was 10,150, with a total of 974,313 rooms[38] - The company closed 101 hotels in Q2 2024, with 12 temporarily closed for brand upgrades or business model changes[39] - The company added a net of 466 hotels in Q2 2024, with 472 net additions from managed and franchised hotels[38] - Total number of hotels as of June 30, 2024, reached 10,150, with 3,266 hotels under development[40] - Average daily rate (ADR) for leased and owned hotels decreased by 2.2% year-over-year to RMB 375[40] - Occupancy rate for leased and owned hotels increased by 2.0 percentage points year-over-year to 85.6%[40] - Revenue per available room (RevPAR) for leased and owned hotels remained flat at RMB 321, showing a 0.1% year-over-year change[40] - Mature hotels (operating for over 18 months) saw a 3.6% year-over-year decline in RevPAR to RMB 248[42] - In Q2 2024, the company opened 5 new hotels and closed 2, resulting in a net increase of 3 hotels[43] - ADR in euros for leased hotels increased by 4.0% year-over-year to €124[45] - Occupancy rate in euros for leased hotels rose by 1.9 percentage points year-over-year to 71.2%[45] - RevPAR in euros for leased hotels grew by 6.8% year-over-year to €88[45] - The company's total hotel portfolio as of June 30, 2024, included 10,286 hotels with 1,001,865 rooms in operation and 3,294 hotels under development[47] - As of June 30, 2024, the company operates 5 Meilun Meixuan hotels and has 4 hotels under development in China[48] - As of June 30, 2024, the company operates 12 Steigenberger hotels and has 5 hotels under development in China[48] - As of June 30, 2024, the company operates 3 Steigenberger Grand hotels and has 1 hotel under development in China[48] Financial Performance and Metrics - Hotel turnover in Q2 2024 increased by 15.5% YoY to RMB 23.4 billion, with Legacy-Huazhu and Legacy-DH divisions growing by 16.2% and 7.8% respectively[2] - Q2 2024 revenue grew by 11.2% YoY to RMB 6.1 billion (USD 846 million), at the upper end of the previously announced guidance of 7% to 11% growth[2] - Net profit attributable to H World Group in Q2 2024 was RMB 1.1 billion (USD 147 million), compared to RMB 1.0 billion in Q2 2023 and RMB 659 million in the previous quarter[2] - Adjusted EBITDA (non-GAAP) for Q2 2024 was RMB 2.0 billion (USD 280 million), up from RMB 1.8 billion in Q2 2023 and RMB 1.4 billion in the previous quarter[3] - Total revenue for Q2 2024 was RMB 6.148 billion (USD 846 million), a 11.2% YoY increase and 16.5% QoQ growth[7] - Legacy-Huazhu's revenue in Q2 2024 was RMB 4.8 billion, a 11.1% YoY increase, driven by hotel network expansion[7] - Legacy-DH's revenue in Q2 2024 was RMB 1.3 billion, a 11.6% YoY increase, due to business recovery and network expansion[7] - Revenue from managed and franchised hotels in Q2 2024 was RMB 2.334 billion, a 25.8% YoY increase[8] - Hotel operating costs in Q2 2024 were RMB 3.731 billion, a 7.1% YoY increase, primarily due to hotel network expansion[10] - Legacy-Huazhu's hotel operating costs in Q2 2024 were RMB 2.7 billion, accounting for 56.7% of revenue, down from 58.9% in Q2 2023[10] - Sales and marketing expenses for Q2 2024 were RMB 317 million (USD 44 million), compared to RMB 262 million in Q2 2023 and RMB 260 million in the previous quarter[12] - Legacy-Huazhu's sales and marketing expenses in Q2 2024 were RMB 193 million, accounting for 4.0% of revenue, up from 3.5% in Q2 2023[12] - Legacy-DH's sales and marketing expenses in Q2 2024 were RMB 124 million, accounting for 9.4% of revenue, compared to 9.2% in Q2 2023[12] - General and administrative expenses for Q2 2024 were RMB 602 million (USD 83 million), up from RMB 477 million in Q2 2023[12] - Operating profit for Q2 2024 was RMB 1.6 billion (USD 216 million), compared to RMB 1.4 billion in Q2 2023[14] - Legacy-Huazhu's operating profit margin in Q2 2024 was 31.0%, slightly down from 31.1% in Q2 2023[14] - Legacy-DH's operating profit margin improved to 5.5% in Q2 2024 from 3.0% in Q2 2023[14] - Net profit attributable to Huazhu Group Limited for Q2 2024 was RMB 1.1 billion (USD 147 million), up from RMB 1.0 billion in Q2 2023[16] - Legacy-Huazhu's net profit attributable to Huazhu Group Limited for Q2 2024 was RMB 1.0 billion, compared to RMB 993 million in Q2 2023[16] - Legacy-DH's net profit attributable to Huazhu Group Limited for Q2 2024 was RMB 34 million, up from RMB 22 million in Q2 2023[16] - 2024 Q2 EBITDA (non-GAAP) was RMB 1.9 billion (USD 255 million), compared to RMB 1.7 billion in Q2 2023 and RMB 1.3 billion in the previous quarter[17] - 2024 H1 EBITDA (non-GAAP) was RMB 3.2 billion (USD 436 million), compared to RMB 3.4 billion in H1 2023[17] - 2024 Q2 adjusted EBITDA (non-GAAP) was RMB 2.0 billion (USD 280 million), compared to RMB 1.8 billion in Q2 2023 and RMB 1.4 billion in the previous quarter[17] - 2024 H1 adjusted EBITDA (non-GAAP) was RMB 3.5 billion (USD 476 million), compared to RMB 2.8 billion in H1 2023[18] - Total revenue for the six months ended June 30, 2024, reached RMB 11,426 million (USD 1,572 million), showing growth compared to the same period in 2023[30] - Operating profit for the six months ended June 30, 2024, was RMB 2,575 million (USD 354 million), reflecting an increase from the previous year[30] - Net profit attributable to Huazhu Group Limited for the six months ended June 30, 2024, was RMB 1,726 million (USD 238 million), compared to RMB 2,005 million in the same period last year[31] - Earnings per share (basic) for the six months ended June 30, 2024, was RMB 0.55 (USD 0.08), compared to RMB 0.63 in the same period last year[31] - Total comprehensive income attributable to Huazhu Group Limited for the six months ended June 30, 2024, was RMB 1,671 million (USD 231 million), compared to RMB 2,247 million in the same period last year[31] - Net profit attributable to Huazhu Group for Q2 2024 was RMB 1,067 million (USD 147 million), compared to RMB 1,015 million in Q2 2023[34] - Adjusted EBITDA for Q2 2024 was RMB 2,040 million (USD 280 million), a significant increase from RMB 1,772 million in Q2 2023[35] - Total revenue for Q2 2024 reached RMB 6,148 million, with Legacy-Huazhu contributing RMB 4,828 million and Legacy-DH contributing RMB 1,320 million[36] - Legacy-Huazhu's adjusted EBITDA for Q2 2024 was RMB 1,909 million, while Legacy-DH's adjusted EBITDA was RMB 131 million[36] - Leased and owned hotels generated revenue of RMB 2,395 million for Legacy-Huazhu and RMB 1,286 million for Legacy-DH in Q2 2024[36] - Total revenue under US GAAP was RMB 11,426 million, adjusted to RMB 11,424 million under IFRS[51] - Operating costs under US GAAP were RMB 9,026 million, adjusted to RMB 8,909 million under IFRS[51] - Operating profit under US GAAP was RMB 2,575 million, adjusted to RMB 2,689 million under IFRS[51] - Net profit attributable to Huazhu Group Limited under US GAAP was RMB 1,726 million, adjusted to RMB 864 million under IFRS[51] - Comprehensive profit attributable to Huazhu Group Limited under US GAAP was RMB 1,694 million, adjusted to RMB 904 million under IFRS[51] - Total operating costs and expenses amounted to RMB 7,473 million, with hotel operating costs being the largest component at RMB 6,076 million[52] - Net profit attributable to Huazhu Group Limited reached RMB 2,512 million, reflecting a strong financial performance[52] - The company reported a comprehensive profit of RMB 2,641 million, with a significant portion coming from fair value changes in convertible notes[52] - Interest expenses totaled RMB 923 million, influenced by lease adjustments and other factors[52] Cash Flow and Financial Position - 2024 Q2 operating cash inflow was RMB 2.2 billion (USD 307 million), while financing cash outflow was RMB 1.1 billion (USD 152 million)[18] - 2024 H1 operating cash inflow was RMB 3.1 billion (USD 430 million), compared to RMB 4.1 billion in H1 2023[18] - As of June 30, 2024, the company's cash and cash equivalents totaled RMB 7.8 billion (USD 1.1 billion), with restricted cash of RMB 364 million (USD 50 million)[18] - Operating cash flow for the six months ended June 30, 2024, was RMB 3,121 million (USD 430 million), a decrease from RMB 4,082 million in the same period last year[32] - Capital expenditures for the six months ended June 30, 2024, were RMB 484 million (USD 67 million), compared to RMB 393 million in the same period last year[32] - Net cash used in financing activities for the six months ended June 30, 2024, was RMB 3,363 million (USD 463 million), primarily due to debt repayments and share repurchases[33] - Cash and cash equivalents at the end of June 30, 2024, were RMB 8,165 million (USD 1,123 million), compared to RMB 7,836 million at the end of June 30, 2023[33] - Share repurchases for the six months ended June 30, 2024, amounted to RMB 676 million (USD 93 million)[33] - Debt repayments for the six months ended June 30, 2024, were RMB 429 million (USD 59 million)[33] Assets, Liabilities, and Equity - Total assets as of June 30, 2024, stood at RMB 62,452 million (USD 8,594 million), slightly lower than the RMB 63,532 million reported at the end of 2023[28] - Total liabilities decreased to RMB 49,735 million (USD 6,843 million) as of June 30, 2024, from RMB 51,283 million at the end of 2023[29] - Cash and cash equivalents increased to RMB 7,801 million (USD 1,073 million) as of June 30, 2024, up from RMB 6,946 million at the end of 2023[28] - Net accounts receivable decreased to RMB 1,112 million (USD 153 million) as of June 30, 2024, from RMB 2,189 million at the end of 2023[28] - Total equity increased to RMB 12,717 million (USD 1,751 million) as of June 30, 2024, compared to RMB 12,249 million at the end of 2023[29] - Total assets stood at RMB 61,022 million, with property and equipment net of depreciation at RMB 5,649 million[53] - Total liabilities were RMB 50,801 million, including long-term debt of RMB 5,438 million[53] - Operating lease right-of-use assets decreased to RMB 23,159 million due to adjustments and impairments[53] - Total equity attributable to Huazhu Group Limited was RMB 10,086 million, impacted by adjustments and impairments[53] - The company's retained earnings showed a deficit of RMB 363 million, reflecting various adjustments and impairments[53] - Total current assets were RMB 11,486 million, with other net current assets contributing RMB 887 million[53] - Total assets under US GAAP amounted to RMB 63,532 million, while under IFRS, it was RMB 62,533 million[54] - Property and equipment net value under US GAAP was RMB 6,097 million, adjusted to RMB 5,855 million under IFRS[54] - Operating lease right-of-use assets under US GAAP were RMB 25,658 million, adjusted to RMB 23,580 million under IFRS[54] - Long-term investments under US GAAP were RMB 2,564 million, adjusted to RMB 2,859 million under IFRS[54] - Total current liabilities under US GAAP were RMB 17,411 million, adjusted to RMB 17,327 million under IFRS[54] - Non-current operating lease liabilities under US GAAP were RMB 24,215 million, adjusted to RMB 24,727 million under IFRS[54] - Total liabilities under US GAAP were RMB 51,283 million, adjusted to RMB 52,038 million under IFRS[54] - Total equity under US GAAP was RMB 12,249 million, adjusted to RMB 10,495 million under IFRS[54] Non-GAAP Financial Measures - The company uses non-GAAP financial measures, including EBITDA and adjusted EBITDA, to evaluate performance, excluding equity incentive expenses, fair value changes in equity securities, foreign exchange gains/losses, and investment gains/losses[23][24] - EBITDA is considered a useful financial metric for evaluating operating and financial performance before the impact of financing and investment transactions and income taxes[23] - Adjusted EBITDA is used to assess the operating performance of the company's hotels, excluding items that may not reflect core operational results[23][24] - The company emphasizes that EBITDA and adjusted EBITDA are not substitutes for GAAP measures like net income or operating profit and should not be used in isolation for performance evaluation[25] - The company's non-GAAP financial measures are reconciled with GAAP financial measures in the appendix of the announcement[25] Shareholder Returns and Guidance - The company announced a three-year shareholder return plan with a total distribution of up to USD 2.0 billion, effective from July 23, 2024[19] - For 2024 Q3, the company expects revenue growth of 2% to 5% compared to Q3 2023, or 1% to 4% excluding DH[21] - The company raised its 2024 hotel opening guidance to over 2,200 hotels, up from the previous guidance of approximately 1,800 hotels[21] - H World expects Q3 2024 revenue growth of 2% to 5% YoY, or 1% to 4% excluding DH[3] - The company raised its 2024 hotel opening guidance to over 2,200 hotels, up from the previous guidance of approximately 1,800 hotels[3] Business Model and Strategy - The company operates 10,286 hotels with 1,001,865 operational rooms across 18 countries as of June 30, 2024[26] - 10% of the company's
华住集团-S(01179) - 2024 - 中期业绩