Hotel Operations and Performance - H World Group operated a total of 9,394 hotels (or 912,444 rooms) as of December 31, 2023[2] - Legacy-Huazhu's Q4 2023 ADR was RMB 284, up from RMB 240 in Q4 2022, with an occupancy rate of 80.5%[6] - Legacy-Huazhu's Q4 2023 RevPAR was RMB 229, up from RMB 159 in Q4 2022, with a same-store RevPAR growth of 40.8% YoY[6] - Legacy-DH operated 131 hotels (26,814 rooms) as of December 31, 2023, with 37 hotels in the pipeline[6] - Average daily rate (ADR) in Q4 2023 was €115, compared to €122 in Q4 2022 and €114 in the previous quarter[7] - Occupancy rate for Legacy-DH hotels in Q4 2023 was 63.8%, up from 59.3% in Q4 2022 but down from 69.0% in the previous quarter[7] - Revenue per available room (RevPAR) in Q4 2023 was €73, compared to €72 in Q4 2022 and €79 in the previous quarter[7] - The company operates 9,394 hotels with 912,444 rooms in operation across 18 countries as of December 31, 2023[24] - 11% of the company's hotel rooms are operated under the lease and owned model, while 89% are under the managed franchise and franchise model[24] - Total number of operating hotels reached 9,394 with 912,444 rooms as of December 31, 2023[46] - Economy hotels accounted for 4,984 operating hotels with 407,657 rooms and 1,121 hotels in the pipeline[46] - Midscale hotels represented 3,543 operating hotels with 379,614 rooms and 1,503 hotels in the pipeline[46] - Upscale hotels had 704 operating hotels with 98,508 rooms and 397 hotels in the pipeline[46] - Luxury hotels included 16 operating hotels with 2,360 rooms and 2 hotels in the pipeline[46] - Intercity Hotel had 9 operating hotels and 53 hotels in the pipeline in China as of December 31, 2023[47] - Steigenberger had 11 operating hotels and 3 hotels in the pipeline in China as of December 31, 2023[47] Financial Performance - Q4 2023 hotel turnover increased by 55.0% YoY to RMB 20.4 billion, and excluding DH, it increased by 60.6% YoY[2] - Q4 2023 revenue grew by 50.7% YoY to RMB 5.6 billion (USD 786 million), exceeding the guidance of 41% to 45% growth[2] - Q4 2023 net profit attributable to H World Group was RMB 743 million (USD 105 million), compared to a net loss of RMB 124 million in Q4 2022[2] - Q4 2023 EBITDA (non-GAAP) was RMB 1.4 billion (USD 191 million), compared to RMB 529 million in Q4 2022[3] - Total revenue in Q4 2023 was RMB 5.585 billion (USD 786 million), a 50.7% YoY increase but an 11.2% QoQ decrease[9] - Legacy-Huazhu revenue in Q4 2023 was RMB 4.4 billion, a 59.0% YoY increase, exceeding the previously announced guidance of 48% to 52% growth[9] - Legacy-DH revenue in Q4 2023 was RMB 1.2 billion, a 26.6% YoY increase and a 2.2% QoQ increase[9] - Full-year 2023 revenue was RMB 21.9 billion (USD 3.1 billion), a 57.9% YoY increase[10] - Legacy-Huazhu full-year 2023 revenue was RMB 17.4 billion, a 63.7% YoY increase[10] - Legacy-DH full-year 2023 revenue was RMB 4.4 billion, a 38.6% YoY increase[10] - Management and franchised hotel revenue in Q4 2023 was RMB 2.0 billion (USD 284 million), a 74.1% YoY increase but an 11.1% QoQ decrease[11] - Hotel operating costs for Q4 2023 were RMB 4 billion (USD 563 million), a 17.6% YoY increase from RMB 3.4 billion in Q4 2022, primarily due to business recovery and smaller rent reductions[13] - Legacy-Huazhu division's hotel operating costs in Q4 2023 were RMB 2.9 billion, accounting for 67.0% of revenue, compared to 88.7% in Q4 2022[13] - Full-year 2023 hotel operating costs were RMB 14.3 billion (USD 2 billion), a 16.3% increase from RMB 12.3 billion in 2022[13] - Sales and marketing expenses for Q4 2023 were RMB 326 million (USD 46 million), a 92.9% YoY increase from RMB 169 million in Q4 2022[13] - General and administrative expenses for Q4 2023 were RMB 644 million (USD 91 million), a 46.4% YoY increase from RMB 440 million in Q4 2022[13] - Operating profit for Q4 2023 was RMB 757 million (USD 106 million), compared to an operating loss of RMB 93 million in Q4 2022[15] - Legacy-Huazhu division's operating profit for Q4 2023 was RMB 821 million, compared to an operating loss of RMB 3 million in Q4 2022[15] - Full-year 2023 operating profit was RMB 4.7 billion (USD 662 million), compared to an operating loss of RMB 294 million in 2022[15] - Operating profit margin for Q4 2023 was 13.6%, compared to -2.5% in Q4 2022[15] - Full-year 2023 operating profit margin was 21.5%, compared to -2.1% in 2022[15] - Equity securities fair value change income for 2023 was RMB 109 million (USD 15 million), compared to a loss of RMB 359 million in 2022, primarily due to gains from UBOX fair value changes and losses from Accor shares in 2022[17] - Net income attributable to Huazhu Group Limited for Q4 2023 was RMB 743 million (USD 105 million), compared to a net loss of RMB 124 million in Q4 2022 and net income of RMB 1.3 billion in the previous quarter[17] - Full-year 2023 net income attributable to Huazhu Group Limited was RMB 4.1 billion (USD 575 million), compared to a net loss of RMB 1.8 billion in 2022[17] - Q4 2023 EBITDA (non-GAAP) was RMB 1.4 billion (USD 191 million), compared to RMB 529 million in Q4 2022 and RMB 2.1 billion in the previous quarter[17] - Full-year 2023 EBITDA (non-GAAP) was RMB 6.8 billion (USD 961 million), compared to RMB 164 million in 2022[18] - Operating cash inflow for Q4 2023 was RMB 2.4 billion (USD 339 million), with full-year operating cash inflow reaching RMB 7.7 billion (USD 1.1 billion), compared to RMB 1.6 billion in 2022[19] - As of December 31, 2023, the company's cash and cash equivalents totaled RMB 6.9 billion (USD 978 million), with restricted cash at RMB 764 million (USD 108 million)[19] - Total revenue for 2023 reached RMB 21.882 billion (USD 3.082 billion), a significant increase from RMB 13.862 billion in 2022[29] - Net profit attributable to Huazhu Group Limited for 2023 was RMB 4.085 billion (USD 575 million), compared to a net loss of RMB 1.821 billion in 2022[30] - Total liabilities decreased from RMB 52.704 billion in 2022 to RMB 51.283 billion (USD 7.223 billion) in 2023[28] - Total equity increased from RMB 8.803 billion in 2022 to RMB 12.249 billion (USD 1.725 billion) in 2023[28] - Operating profit for 2023 was RMB 4.714 billion (USD 662 million), a significant improvement from an operating loss of RMB 294 million in 2022[29] - Revenue from leased and owned hotels increased to RMB 13.796 billion (USD 1.943 billion) in 2023, up from RMB 9.148 billion in 2022[29] - Revenue from managed and franchised hotels grew to RMB 7.694 billion (USD 1.084 billion) in 2023, compared to RMB 4.405 billion in 2022[29] - Total operating costs and expenses for 2023 were RMB 17.568 billion (USD 2.476 billion), up from RMB 14.705 billion in 2022[29] - Basic earnings per share for 2023 were RMB 1.28 (USD 0.18), a significant improvement from a loss of RMB 0.59 per share in 2022[30] - Total assets increased from RMB 61.507 billion in 2022 to RMB 63.532 billion (USD 8.948 billion) in 2023[28] - Net profit (loss) for the year 2023 was RMB 4,131 million (USD 582 million), a significant improvement from the net loss of RMB 1,849 million in 2022[31] - Operating cash flow for 2023 was RMB 7,674 million (USD 1,080 million), compared to RMB 1,564 million in 2022[31] - Capital expenditures for 2023 were RMB 901 million (USD 127 million), a decrease from RMB 1,053 million in 2022[31] - Net cash used in investing activities for 2023 was RMB 1,477 million (USD 207 million), compared to RMB 522 million in 2022[31] - Net cash used in financing activities for 2023 was RMB 3,720 million (USD 523 million), compared to RMB 1,394 million in 2022[32] - Adjusted net profit (non-GAAP) for 2023 was RMB 4,119 million (USD 580 million), compared to a net loss of RMB 1,375 million in 2022[33] - Basic adjusted earnings per share (non-GAAP) for 2023 were RMB 1.29 (USD 0.18), compared to a loss of RMB 0.44 in 2022[33] - Diluted adjusted earnings per share (non-GAAP) for 2023 were RMB 1.26 (USD 0.18), compared to a loss of RMB 0.44 in 2022[33] - Basic adjusted earnings per ADS (non-GAAP) for 2023 were RMB 12.94 (USD 1.82), compared to a loss of RMB 4.42 in 2022[33] - Diluted adjusted earnings per ADS (non-GAAP) for 2023 were RMB 12.65 (USD 1.78), compared to a loss of RMB 4.42 in 2022[33] - Net profit attributable to Huazhu Group Ltd. (GAAP) for the full year 2023 reached RMB 4,085 million, a significant improvement from a loss of RMB 1,821 million in 2022[34] - Adjusted EBITDA (non-GAAP) for the full year 2023 was RMB 6,874 million, compared to RMB 610 million in 2022, reflecting strong operational recovery[34] - Total revenue for Legacy-Huazhu in 2023 was RMB 17,438 million, a 63.7% increase from RMB 10,655 million in 2022[36] Future Growth and Expansion - H World Group expects Q1 2024 revenue growth of 12% to 16% YoY, and full-year 2024 revenue growth of 8% to 12% YoY[4] - H World Group plans to open approximately 1,800 hotels and close around 650 hotels in 2024[5] - For 2024, Huazhu expects revenue growth of 8% to 12% year-over-year, with plans to open approximately 1,800 hotels and close around 650 hotels[19] - Q1 2024 revenue is projected to grow between 12% to 16% compared to Q1 2023[19] - The number of hotels under development as of December 31, 2023, was 3,061, indicating strong future growth potential[38] Key Financial Metrics and Non-GAAP Measures - The company emphasizes the use of EBITDA and adjusted EBITDA as key financial metrics to evaluate operating performance, excluding depreciation, amortization, and equity incentive expenses[22] - Adjusted EBITDA is considered a better reflection of the company's hotel financial performance, excluding equity incentive expenses and gains/losses from fair value changes in equity securities[22] - The company acknowledges that EBITDA and adjusted EBITDA have limitations and should not be considered as substitutes for net income or other GAAP measures[23] - The company provides reconciliations of non-GAAP financial measures, including EBITDA and adjusted EBITDA, to GAAP financial statements[23] Hotel Revenue and Performance by Segment - Revenue from leased and owned hotels in Q4 2023 was RMB 2,288 million, a 48.9% increase from RMB 1,537 million in Q4 2022[35] - Revenue from managed and franchised hotels in Q4 2023 was RMB 1,992 million, a 76.3% increase from RMB 1,130 million in Q4 2022[35] - The average daily rate (ADR) for leased and owned hotels increased by 36.9% year-over-year to RMB 372 in 2023[40] - The occupancy rate for leased and owned hotels rose by 18.9 percentage points to 82.8% in 2023[40] - The revenue per available room (RevPAR) for leased and owned hotels surged by 77.4% year-over-year to RMB 308 in 2023[40] - The RevPAR for economy hotels increased by 44.4% year-over-year to RMB 186 in 2023[42] - The ADR for mid-scale and upper mid-scale hotels grew by 21.7% year-over-year to RMB 369 in 2023[42] - The occupancy rate for mid-scale and upper mid-scale hotels rose by 16.2 percentage points to 81.4% in 2023[42] - The total number of hotels increased by 2 to 131 in Q4 2023, with 26,814 rooms[43] - The ADR for leased hotels in Europe increased by 3.1% year-over-year to €118 in Q4 2023[44] - The occupancy rate for leased hotels in Europe rose by 4.7 percentage points to 64.7% in Q4 2023[44] - The RevPAR for leased hotels in Europe increased by 11.2% year-over-year to €76 in Q4 2023[44] - Average daily rate (ADR) for leased and owned hotels increased by 4.6% to €115 in 2023 compared to €110 in 2022[45] - Occupancy rate for leased and owned hotels rose by 8.7 percentage points to 64.7% in 2023 from 56.0% in 2022[45] - Revenue per available room (RevPAR) for leased and owned hotels grew by 20.9% to €74 in 2023 from €61 in 2022[45] Asset and Liability Management - Total assets increased from RMB 61,507 million in 2022 to RMB 63,532 million in 2023, with cash and cash equivalents rising from RMB 3,583 million to RMB 6,946 million[26] - Property and equipment net decreased from RMB 6,784 million in 2022 to RMB 6,097 million in 2023[26] - Operating lease right-of-use assets decreased from RMB 28,970 million in 2022 to RMB 25,658 million in 2023[26] - Total liabilities decreased from RMB 52.704 billion in 2022 to RMB 51.283 billion (USD 7.223 billion) in 2023[28] - Total equity increased from RMB 8.803 billion in 2022 to RMB 12.249 billion (USD 1.725 billion) in 2023[28] Brand Portfolio - The company's brands include Hi Inn, Yitel, HanTing, Ji Hotel, Starway Hotel, Orange Hotel, Orange Crystal Hotel, Manxin Hotel, and others[24]
华住集团-S(01179) - 2023 - 年度业绩