Hotel Network Expansion - The company expanded its hotel network from 7,830 hotels as of December 31, 2021, to 9,394 hotels as of December 31, 2023, with a compound annual growth rate of 9.5%[3] - As of December 31, 2023, the company operated 9,394 hotels, including 691 leased and owned hotels and 8,703 managed and franchised hotels, totaling 912,444 hotel rooms[3] - The company is developing an additional 3,098 new hotels, including 30 leased and owned hotels and 3,068 managed and franchised hotels as of December 31, 2023[3] - The company's hotel network covers 9,394 hotels across 31 provinces, autonomous regions, and municipalities in Greater China and 18 other countries, with 3,098 hotels under development as of December 31, 2023[33] - The company operates 47 managed and franchised hotels through Deutsche Hospitality and 8,656 managed and franchised hotels through other entities[35] - The company has 991 cities across 29 provinces and municipalities with operating hotels, and 889 cities across 30 provinces and municipalities (including Taiwan) with hotels under development[35] - The company has 30 leased and owned hotels under development, with 25 in the pre-conversion phase and 5 in the conversion phase, with a total budgeted development cost of RMB 147 million (USD 21 million)[36] - The company has 683 leased hotels and 8 owned hotels, accounting for approximately 7.4% of its operating hotels[38] - The company has 8,526 managed hotels and 177 franchised hotels, accounting for approximately 91% and 2% of its operating hotels, respectively[40] Membership and Direct Sales - The company's membership program, Huazhu Club, had over 228 million members as of December 31, 2023, with 73% of room nights sold to individual or corporate members in 2023[3] - In 2023, 78% of room nights were sold through the company's direct sales channels[3] - The company's loyalty program, Huazhu Club, had over 228 million members as of December 31, 2023, and 73% of Legacy Huazhu's room nights were sold to Huazhu Club members in 2023[58] - Legacy Huzahu had 78% of room nights sold through the company's own sales channels, with the remaining 22% sold through intermediaries in 2023[58] Financial Performance - The company's total revenue for 2021, 2022, and 2023 was RMB 12,785 million, RMB 13,862 million, and RMB 21,882 million (USD 3,082 million), respectively[4] - The company reported a net loss attributable to Huazhu Group Limited of RMB 465 million in 2021 and RMB 1,821 million in 2022, but achieved a net profit of RMB 4,085 million (USD 575 million) in 2023[4] - Adjusted EBITDA (non-GAAP) for 2021, 2022, and 2023 was RMB 1,571 million, RMB 610 million, and RMB 6,874 million (USD 966 million), respectively[4] - Net cash generated from operating activities for 2021, 2022, and 2023 was RMB 1,342 million, RMB 1,564 million, and RMB 7,674 million (USD 1,080 million), respectively[4] - Total revenue increased from RMB 12,785 million in 2021 to RMB 21,882 million (USD 3,082 million) in 2023, with net profit attributable to the company reaching RMB 4,085 million (USD 575 million) in 2023[118] - Adjusted EBITDA (non-GAAP) rose from RMB 1,571 million in 2021 to RMB 6,874 million (USD 966 million) in 2023, with net cash generated from operating activities increasing from RMB 1,342 million in 2021 to RMB 7,674 million (USD 1,080 million) in 2023[118] - Total revenue increased by 57.9% from RMB 13,862 million in 2022 to RMB 21,882 million (USD 3,082 million) in 2023, driven by recovery from COVID-19 and increased occupancy rates[154] - Revenue from leased and owned hotels grew by 50.8% from RMB 9,148 million in 2022 to RMB 13,796 million (USD 1,943 million) in 2023[154] - Revenue from managed and franchised hotels surged by 74.7% from RMB 4,405 million in 2022 to RMB 7,694 million (USD 1,084 million) in 2023[154] - Other income increased by 26.9% from RMB 309 million in 2022 to RMB 392 million (USD 55 million) in 2023[154] - Total operating costs and expenses rose by 19.5% from RMB 14,705 million in 2022 to RMB 17,568 million (USD 2,476 million) in 2023[154] - Hotel operating costs increased by 17.0% from RMB 12,260 million in 2022 to RMB 14,341 million (USD 2,021 million) in 2023, primarily due to higher employee costs and consumables[154] - Adjusted EBITDA for Legacy Huazhu increased significantly from RMB 725 million in 2022 to RMB 6,772 million in 2023, while Legacy DH improved from a loss of RMB 112 million to a profit of RMB 103 million[153] - Net loss attributable to Huazhu Group Limited was RMB 1,821 million in 2022, improving to a net profit of RMB 4,085 million (USD 575 million) in 2023[150] - Sales and marketing expenses increased by 74.9% from RMB 613 million in 2022 to RMB 1,072 million (USD 151 million) in 2023, primarily due to higher commissions and promotional fees related to business recovery[155] - General and administrative expenses increased by 24.5% from RMB 1,675 million in 2022 to RMB 2,086 million (USD 294 million) in 2023, mainly due to rising employee costs as business recovered[155] - Pre-opening expenses decreased by 63.2% from RMB 95 million in 2022 to RMB 35 million (USD 5 million) in 2023, due to more selective opening of leased and owned hotels[155] - Operating profit in 2023 was RMB 4,714 million (USD 662 million), compared to an operating loss of RMB 294 million in 2022[155] - Net interest expense in 2023 was RMB 137 million (USD 19 million), with interest income of RMB 248 million (USD 35 million) and interest expense of RMB 385 million (USD 54 million)[155] - Other net profit in 2023 was RMB 573 million (USD 81 million), compared to RMB 10 million in 2022, mainly due to gains from the sale of Accor shares[156] - Legacy Huazhu's total revenue in 2023 increased by 63.6% to RMB 17,444 million, driven by the recovery of the Chinese business from COVID-19[157] - Legacy DH's total revenue in 2023 increased by 39.0% to RMB 4,465 million, driven by the continued recovery of the European business[157] - Legacy Huazhu's adjusted EBITDA in 2023 was RMB 6,772 million, a significant increase from RMB 725 million in 2022, due to the recovery of the Chinese business[158] - Legacy DH's adjusted EBITDA in 2023 improved to RMB 103 million from a negative RMB 112 million in 2022, due to the recovery of the European business[158] - Sales and marketing expenses decreased by 4.4% from RMB 641 million in 2021 to RMB 613 million in 2022, with the expense ratio dropping from 5.0% to 4.4% of total revenue[160] - General and administrative expenses increased by 8.4% from RMB 1,545 million in 2021 to RMB 1,675 million in 2022, maintaining a stable ratio of 12.1% of total revenue[160] - Pre-opening expenses increased by 17.3% from RMB 81 million in 2021 to RMB 95 million in 2022, with the expense ratio rising from 0.6% to 0.7% of total revenue[160] - Operating loss of RMB 294 million in 2022, compared to an operating profit of RMB 164 million in 2021[160] - Net interest expense of RMB 322 million in 2022, with interest income of RMB 87 million and interest expense of RMB 409 million[160] - Other net profit decreased significantly from RMB 157 million in 2021 to RMB 10 million in 2022, primarily due to the sale of Accor shares in 2021[161] - Foreign exchange loss increased from RMB 317 million in 2021 to RMB 641 million in 2022, mainly due to the depreciation of the euro[162] - Legacy Huazhu's total revenue decreased by 5.2% from RMB 11,247 million in 2021 to RMB 10,661 million in 2022, while Legacy DH's revenue surged due to the recovery of European business[162] - Adjusted EBITDA for Legacy Huazhu decreased by 64.3% from RMB 2,032 million in 2021 to RMB 725 million in 2022, while Legacy DH's adjusted EBITDA improved significantly[162] Hotel Brands and Development - The company operates over 20 distinctive hotel brands, targeting various market segments from economy to luxury[5] - HanTing Hotel has 3,598 operating hotels and 731 under development as of December 31, 2023[7] - Hello Inn has 269 operating hotels and 177 under development as of December 31, 2023[8] - Hanting Express has 471 operating hotels and 180 under development as of December 31, 2023[9] - Elan Hotel has 404 operating hotels and 1 under development as of December 31, 2023[10] - Ibis Hotel has 226 operating hotels and 17 under development as of December 31, 2023[11] - Zleep Hotels has 16 operating hotels and 15 under development as of December 31, 2023[12] - Ji Hotel has 2,116 operating hotels and 936 under development as of December 31, 2023[13] - Orange Hotel has 652 operating hotels and 315 under development as of December 31, 2023[14] - Starway Hotel has 670 operating hotels and 228 under development as of December 31, 2023[15] - IntercityHotel has 63 operating hotels and 64 under development as of December 31, 2023[18] - CitiGO hotels have 35 operating hotels and 4 under development as of December 31, 2023[23] - Meilun Meihuan hotels have 9 operating hotels (including 4 in China) and 2 under development in China as of December 31, 2023[24] - Xiyue hotels have 7 operating hotels as of December 31, 2023[25] - Huajiantang hotels have 63 operating hotels and 56 under development as of December 31, 2023[26] - Steigenberger hotels have 54 operating hotels (including 11 in China) and 10 under development (including 3 in China) as of December 31, 2023[27] - Jaz in the City hotels have 3 operating hotels and 1 under development as of December 31, 2023[28] - Mercure hotels have 10 operating hotels and 2 under development as of December 31, 2023[29] - Steigenberger Grand hotels have 9 operating hotels (including 3 in China) and 2 under development (including 1 in China) as of December 31, 2023[30] - Songpin hotels have 7 operating hotels as of December 31, 2023[31] Franchise and Management Fees - The company charges franchisees an initial franchise fee ranging from RMB 80,000 to RMB 1,000,000 per hotel and a monthly franchise fee of approximately 3% to 6.5% of total revenue generated by each managed hotel[41] - Deutsche Hospitality's management fees for franchised hotels range from 0.5% to 3.5% of hotel revenue and 6% to 10% of adjusted total operating profit[42] - Deutsche Hospitality charges a licensing fee of 0.5% to 2% of revenue for certain overseas franchised hotels[42] - Legacy Huazhu's franchise agreements typically have an initial term of 8 to 10 years, extendable upon mutual agreement[43] - Deutsche Hospitality's franchise fees for franchised hotels range from 0.5% to 4.0% of total room revenue or turnover, with fixed fees of €40,000 to €150,000 annually for some overseas hotels[44] - For Legacy Huazhu managed hotels, franchisees typically pay an upfront franchise fee ranging from RMB 80,000 to RMB 1,000,000 per hotel[138] - Monthly franchise fees for Legacy Huazhu managed hotels range from 3% to 6.5% of total revenue generated by each hotel[138] - For Deutsche Hospitality managed hotels, franchisees pay a base fee of 0.5% to 3.5% of hotel turnover and an incentive fee of 6% to 10% of adjusted total operating profit[138] - Franchise fees for Deutsche Hospitality franchised hotels range from 0.5% to 4.0% of total room revenue or turnover and total operating income[139] - Initial terms for franchise agreements are typically 8-10 years for Legacy Huazhu hotels and 15-20 years for Deutsche Hospitality hotels[137] Technology and Digital Systems - The company's cloud-based property management system enables real-time monitoring of occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) for each hotel[50] - The company's global unified digital core platform integrates 20+ distribution platforms, including OTAs, GDS, and TMCs, achieving 100% direct connectivity across all countries, brands, and hotels[51] - The company's central revenue management system (RMS) uses AI and algorithms to automatically adjust room rates across the network within minutes, optimizing occupancy and revenue[52] - The company's central procurement system (CPS) is one of the largest IoT-based procurement platforms in China's hospitality industry, enabling bulk purchasing for all hotels in the network[53] - The company's integrated CRM system tracks member data, including booking history, points accumulation, and prepaid balances, to enhance customer loyalty and targeted promotions[52] - The company's hotel operation system platform (H-HOS) integrates PMS, POS, and EMS, covering brands in China and expanding to markets like Singapore, Germany, and Denmark[51] - The company's global unified collaboration platform (H-TONE) supports real-time multilingual communication, deployed across multiple countries in Asia-Pacific and Europe[51] - Cloud-PMS system enables real-time management of room inventory, reservations, and pricing, optimizing occupancy rates, ADR, and RevPAR[54] - "Easy" series digital systems, including "Easy Room" and "Easy Invoice," streamline hotel operations and reduce check-out to check-in time[54] - Self-service check-in/out terminals replace traditional manual processes with advanced automation[54] - Digital payment options include online credit card payments, Alipay, WeChat Pay, and Apple Pay[54] - Smart robots deployed across hotels improve operational efficiency and guest experience[54] - AI-powered voice assistant enhances guest interaction and experience through mobile app integration[55] - Smart room features like "Hello Huazhu" enable voice control of lights, TV, AC, and curtains[55] - Free Wi-Fi offered to all hotel guests since 2013, significantly boosting customer growth[55] - Data security measures include ISO27001 and ISO27701 certifications, PCI-DSS compliance, and a dedicated data security committee[56] - Annual vulnerability scans and 7*24 emergency response strategies ensure continuous data security compliance[57] Environmental and Sustainability Initiatives - Over 30% of the company's leased and owned hotel properties are equipped with air source heat pumps, and nearly 10% have adopted solar hot water systems[63] - Approximately 70 Legacy DH properties have obtained ISO50001 energy management system certification, and around 90 properties have achieved ISO14001 environmental management system certification[63] - The company launched the "Stay Longer, Skip Laundry" initiative in November 2023, offering additional membership points to guests who opt out of changing bed linens during extended stays[63] - The "Smart Linen Project" was initiated in 2023 to establish a digital management solution for linen processing, aiming to improve efficiency and extend linen lifespan[64] - The company has integrated environmental standards into supplier selection processes, particularly for laundry suppliers, emphasizing water and energy-saving capabilities[64] - The company's "Easy Energy Consumption" system monitors electricity and water usage, providing real-time alerts for anomalies to prevent resource waste[63] - The company introduced eco-friendly products in 2023, including straw-based toothbrushes, cornstarch shower caps, and bamboo paper[63] - The company encourages customers to opt for electronic invoices to enhance operational efficiency and reduce paper usage[63] - The company is actively exploring rainwater and greywater reuse methods to conserve water resources[63] - The company is working to expand the use of renewable energy equipment across its hotel network through collaboration with franchisees[63] Legal and Regulatory Compliance - Special construction projects (e.g., hotels with a total construction area exceeding 10,000 square meters) must pass fire safety inspections and approvals before operation, with penalties ranging from RMB 30,000 to RMB 300,000 for non-compliance[68] - Hotels providing entertainment facilities (e.g., discos, karaoke, or dance halls) must obtain an entertainment business license[68] - Hotels eligible for star ratings must apply for assessments, with ratings valid for three years[69] - Single-purpose commercial prepaid cards issued by hotels must not exceed 40% of the previous fiscal year's main business revenue[69] - Online tourism platforms must verify the identity, licenses, and credit ratings of registered tourism operators and protect tourists' personal data privacy[70] - Foreign-invested travel agencies in Shanghai and Chongqing are temporarily allowed to provide outbound travel services for mainland
华住集团-S(01179) - 2023 - 年度财报