Financial Performance - Hotel revenue for Q1 2025 increased by 14.3% year-over-year to RMB 22.5 billion, and by 15.3% excluding Steigenberger Hotels GmbH[6] - Total revenue for Q1 2025 grew by 2.2% year-over-year to RMB 5.4 billion (approximately 123 million), compared to RMB 659 million in Q1 2024[6] - EBITDA for Q1 2025 was RMB 1.6 billion (approximately 206 million), compared to RMB 1.4 billion in Q1 2024[6] - Operating profit for Q1 2025 was RMB 1.1 billion (approximately 123 million), a year-over-year increase of 35.7%[17] - The adjusted net profit (non-GAAP) for the quarter was RMB 771 million, compared to RMB 321 million in the previous quarter, indicating strong operational performance[41] - The adjusted EBITDA for the same quarter was RMB 1,421 million, up from RMB 1,246 million in the previous quarter, reflecting a strong operational performance[42] Revenue Expectations - The company expects Q2 2025 revenue to grow between 1% to 5% year-over-year, or 3% to 7% excluding DH[7] - The company expects revenue growth for Q2 2025 to be between 1% to 5% compared to Q2 2024, or between 3% to 7% excluding DH[20] - Management and franchise income is projected to increase by 18% to 22% compared to Q2 2024[20] Hotel Operations - As of March 31, 2025, the company operated 11,685 hotels with a total of 1,142,158 rooms[6] - The company opened 694 hotels in Q1 2025 and closed 155 hotels during the same period[8] - In Q1 2025, the company opened 694 new hotels in China, aiming for a total of approximately 2,300 new hotels for the year[11] - The total number of hotels as of March 31, 2025, was 11,564, with a net increase of 539 hotels during the first quarter of 2025[45] - The company has 2,865 hotels in the pipeline, indicating ongoing expansion plans[46] - The company has 2,888 hotels in the pipeline, indicating significant future expansion potential[52] Financial Position - As of March 31, 2025, the company's total cash and cash equivalents amounted to RMB 8.2 billion (approximately 16 million)[19] - The total debt and net cash balance as of March 31, 2025, were RMB 5.3 billion (approximately 418 million), respectively[19] - Total assets decreased from RMB 62,552 million on December 31, 2024, to RMB 61,559 million by March 31, 2025[32] - Total liabilities increased from RMB 50,281 million to RMB 50,937 million during the same period[33] - The company reported a decrease in total equity from RMB 12,271 million to RMB 10,622 million[33] - Short-term debt decreased slightly from RMB 880 million to RMB 849 million[33] - The company has a total of RMB 1,864 million in deferred revenue as of March 31, 2025[33] - Huazhu Group's goodwill increased from RMB 5,221 million to RMB 5,300 million[32] Market Strategy - The company continues to implement a light-asset strategy, focusing on quality network expansion and enhancing brand positioning[11] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and customer experience[40] Non-GAAP Measures - The company utilizes non-GAAP financial measures such as adjusted net profit and adjusted EBITDA to provide meaningful supplemental information regarding its performance[23] - EBITDA is considered a useful financial indicator reflecting operational and financial performance before financing and tax impacts[24] - The company believes that adjusted EBITDA better reflects its financial performance capabilities[25] - The use of EBITDA and adjusted EBITDA has certain limitations, as it does not account for depreciation, amortization, interest expenses, and income taxes[25] - The company emphasizes that non-GAAP measures should not be viewed as substitutes for GAAP financial measures[26] Hotel Segment Performance - Revenue from the Legacy-Huazhu segment in Q1 2025 was RMB 4.5 billion, a year-over-year increase of 5.5% driven by ongoing hotel network expansion[13] - The average daily rate for Legacy-Huazhu hotels in Q1 2025 was RMB 272, down from RMB 280 in Q1 2024[9] - The occupancy rate for Legacy-Huazhu hotels in Q1 2025 was 76.2%, compared to 77.2% in Q1 2024[9] - The occupancy rate for all operating Legacy-DH hotels in Q1 2025 was 61.1%, up from 55.8% in Q1 2024 but down from 70.5% in the previous quarter[12] - The revenue from management franchise and licensed hotels in Q1 2025 was RMB 2.5 billion (approximately $344 million), a year-over-year increase of 21.1%[14] - The average daily room rate for leased and owned hotels decreased by 2.2% year-over-year to RMB 346, while the occupancy rate dropped by 1.3 percentage points to 81.0%[47] - The average revenue per available room (RevPAR) for leased and owned hotels decreased by 3.8% year-over-year to RMB 280[47] Conference Call - The company will hold a conference call on May 20, 2025, to discuss its financial results[22]
华住集团-S(01179) - 2025 Q1 - 季度业绩