Hotel Operations - As of September 30, 2024, the company operated 10,845 hotels with a total of 1,062,546 rooms[12] - The company opened 774 hotels in Q3 2024 and closed 217 hotels during the same period[12] - As of September 30, 2024, there were 2,925 hotels in the pipeline, including 2,899 from Legacy-Huazhu[12] - As of September 30, 2024, Legacy-DH operates 138 hotels with a total of 27,687 rooms, including 15,700 rooms under lease and 11,987 under management and franchising[17] - The company operates 4,057 Hanting hotels, with 355,690 rooms currently in operation[79] Financial Performance - In Q3 2024, hotel operating revenue increased by 10.7% year-over-year to RMB 26 billion, with Legacy-Huazhu revenue growing by 11.0% and Legacy-DH revenue increasing by 7.8%[5] - Revenue for Q3 2024 rose by 2.4% year-over-year to RMB 6.4 billion (approximately 181 million), consistent with Q3 2023 results[6] - Adjusted EBITDA for Q3 2024 was RMB 2.1 billion (approximately 918 million), representing a year-over-year increase of 2.4% and a quarter-over-quarter increase of 4.8%[19] - Operating profit was RMB 1.7 billion (approximately USD 245 million), compared to RMB 1.9 billion in Q3 2023 and RMB 1.6 billion in the previous quarter[27] - The operating profit margin for Q3 2024 was 26.7%, down from 30.4% in Q3 2023 and 25.6% in the previous quarter[28] - Cash flow from operations in Q3 2024 was RMB 1.7 billion (approximately USD 242 million)[32] - The company reported a net loss of RMB 83 million from the Legacy-DH segment in Q3 2024, including one-time restructuring costs of RMB 81 million[29] Revenue Breakdown - Revenue from the Legacy-Huazhu segment in Q3 2024 was RMB 5.2 billion, a year-over-year increase of 1.0% and a quarter-over-quarter increase of 6.9%[19] - Revenue from management and franchised hotels in Q3 2024 was RMB 2.6 billion, a year-over-year increase of 14.7% and a quarter-over-quarter increase of 11.5%[20] - Legacy-DH's average revenue per available room (RevPAR) in Q3 2024 was €82, compared to €79 in Q3 2023 and €82 in the previous quarter[17] - The revenue from management franchise and licensed hotels for the quarter ended September 30, 2023, was RMB 2,238 million, compared to RMB 2,305 million in the same quarter of 2024, indicating a decrease of 2.9%[66] Cost and Expenses - Operating costs for hotels in Q3 2024 were RMB 3.8 billion, compared to RMB 3.6 billion in Q3 2023, primarily due to increased personnel costs from network expansion[23] - General and administrative expenses in Q3 2024 were RMB 672 million, up from RMB 539 million in Q3 2023, mainly due to an increase in employee numbers and stock incentives[25] Market Trends - Average daily rate for Legacy-Huazhu hotels in Q3 2024 was RMB 301, down from RMB 324 in Q3 2023[13] - Occupancy rate for all operating Legacy-Huazhu hotels in Q3 2024 was 84.9%, compared to 85.9% in Q3 2023[13] - The occupancy rate for all operating Legacy-DH hotels in Q3 2024 was 69.8%, up from 69.0% in Q3 2023 and 68.3% in the previous quarter[17] - The occupancy rate for managed and franchised hotels improved to 65.5%, an increase of 1.1 percentage points year-over-year[77] Cash and Debt - As of September 30, 2024, total cash and cash equivalents amounted to RMB 7.2 billion (approximately USD 1 billion)[32] - The company had total debt of RMB 5.4 billion (approximately USD 769 million) as of September 30, 2024[32] Non-GAAP Measures - EBITDA is emphasized as a key financial metric, reflecting operational performance before financing and tax impacts, and is widely used in the hospitality industry[40] - Adjusted EBITDA is used to assess the operating performance of hotels, excluding stock-based compensation and other non-operational gains or losses[40] - The company believes that non-GAAP financial measures, such as adjusted EBITDA, provide meaningful supplemental information for evaluating performance[42] - The company acknowledges the limitations of EBITDA and adjusted EBITDA, as they do not reflect depreciation, interest, and tax expenses[41] Future Outlook - The company expects Q4 2024 revenue to grow between 1% and 5% compared to Q4 2023, excluding Legacy-DH[11] - The company plans to temporarily close 12 hotels for brand upgrades or business model changes in the third quarter of 2024[69] - The company plans to open 1,091 new economy hotels, indicating a strong growth strategy in the budget segment[79]
华住集团-S(01179) - 2024 Q3 - 季度业绩