2025-05-20 10:30markdown [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Q1 2025 Key Financial & Operational Highlights](index=1&type=section&id=Q1%202025%20Key%20Financial%20%26%20Operational%20Highlights) H World Group Limited reported increased Q1 2025 hotel turnover and net income, driven by network expansion, despite slightly lower revenue growth Q1 2025 Key Financial Highlights | Metric | Q1 2025 (RMB million) | Q1 2024 (RMB million) | YoY Change | Previous Quarter (RMB million) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | :------------------------------ | | Hotel Turnover | 22,500 | 19,685 | +14.3% | - | | Revenue | 5,400 | 5,278 | +2.2% | 6,023 | | Net Income Attributable to H World | 894 | 659 | +35.7% | 49 | | EBITDA (non-GAAP) | 1,600 | 1,300 | +23.1% | 974 | | Adjusted EBITDA (non-GAAP) | 1,500 | 1,400 | +7.1% | 1,200 | - Total hotels in operation reached **11,685** with **1,142,158** rooms as of March 31, 2025[3](index=3&type=chunk)[6](index=6&type=chunk) - Manachised and franchised revenue increased **21.1%** year-over-year to **RMB2.5 billion**, aligning with the high end of guidance[3](index=3&type=chunk)[16](index=16&type=chunk) [Q2 2025 Outlook](index=2&type=section&id=Q2%202025%20Outlook) H World Group anticipates continued revenue growth for the second quarter of 2025, with specific guidance provided for overall revenue and manachised and franchised revenue Q2 2025 Revenue Growth Guidance | Metric | Q2 2025 YoY Growth Range | | :-------------------------------- | :----------------------- | | Total Revenue | 1%-5% | | Total Revenue (excluding DH) | 3%-7% | | Manachised and Franchised Revenue | 18%-22% | [Operational Performance](index=2&type=section&id=Operational%20Performance) [Overall Hotel Network Expansion](index=2&type=section&id=Overall%20Hotel%20Network%20Expansion) H World's global hotel network expanded to 11,685 hotels and 1,142,158 rooms by March 31, 2025, with significant activity in the Legacy-Huazhu segment, including new openings and a substantial pipeline - As of March 31, 2025, H World operated **11,685** hotels and **1,142,158** rooms globally[6](index=6&type=chunk) - The company had a total of **2,888** unopened hotels in its pipeline, with **2,865** from Legacy-Huazhu and **23** from Legacy-DH[6](index=6&type=chunk) [Legacy-Huazhu Operational Highlights](index=2&type=section&id=Legacy-Huazhu%20Operational%20Highlights) The Legacy-Huazhu segment continued its network expansion with 694 new hotel openings in Q1 2025, contributing to a total of 11,564 hotels. However, key operational metrics like ADR, occupancy, and RevPAR saw slight year-over-year decreases - Legacy-Huazhu opened **694** hotels and closed **155** in Q1 2025, resulting in **11,564** hotels in operation[6](index=6&type=chunk)[7](index=7&type=chunk) Legacy-Huazhu Key Performance Indicators (Q1 2025) | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | YoY Change | Previous Quarter (RMB) | | :---------------- | :------------ | :------------ | :--------- | :--------------------- | | ADR | 272 | 280 | -2.9% | 277 | | Occupancy Rate | 76.2% | 77.2% | -1.0 p.p. | 80.0% | | Blended RevPAR | 208 | 216 | -3.7% | 222 | - Same-hotel RevPAR for Legacy-Huazhu decreased by **8.3%** year-over-year to **RMB205**, driven by a **5.3%** decrease in ADR and a **2.5 percentage-point** decrease in occupancy rate[10](index=10&type=chunk)[70](index=70&type=chunk) [Legacy-DH Operational Highlights](index=3&type=section&id=Legacy-DH%20Operational%20Highlights) The Legacy-DH segment reported 121 hotels in operation and a pipeline of 23 unopened hotels. This segment showed positive year-over-year growth in ADR, occupancy, and RevPAR - Legacy-DH had **121** hotels in operation and **23** unopened hotels in its pipeline as of March 31, 2025[11](index=11&type=chunk)[71](index=71&type=chunk) Legacy-DH Key Performance Indicators (Q1 2025) | Metric | Q1 2025 (EUR) | Q1 2024 (EUR) | YoY Change | Previous Quarter (EUR) | | :---------------- | :------------ | :------------ | :--------- | :--------------------- | | ADR | 107 | 104 | +2.8% | 115 | | Occupancy Rate | 61.1% | 55.8% | +5.3 p.p. | 70.5% | | Blended RevPAR | 65 | 58 | +12.7% | 81 | [CEO Commentary & Strategic Focus](index=3&type=section&id=CEO%20Commentary%20%26%20Strategic%20Focus) CEO Jin Hui highlighted rapid China network expansion and an asset-light strategy, with Legacy-DH focusing on operational enhancement and cost reduction - Continued rapid network expansion with **694** new hotel openings in China, on track for a full-year target of approximately **2,300** gross openings[13](index=13&type=chunk) - Strategic focus on advancing asset-light strategy, high-quality network expansion, enhancing brand positioning, **'service excellence'**, and strengthening sales capabilities centered around the H Rewards membership program[13](index=13&type=chunk) - For Legacy-DH, the strategy includes enhancing hotel operations, focusing on cost reduction and efficiency improvement, and developing an asset-light portfolio[13](index=13&type=chunk) [Financial Results (Unaudited)](index=4&type=section&id=Financial%20Results%20(Unaudited)) [Revenue Analysis](index=4&type=section&id=Revenue%20Analysis) Total revenue for Q1 2025 increased by 2.2% year-over-year to RMB5.4 billion, primarily driven by network expansion in the Legacy-Huazhu segment and strong growth in manachised and franchised hotels, while revenue from leased and owned hotels decreased due to the asset-light strategy Revenue Breakdown (RMB million) | Revenue Type | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | QoQ Change | | :------------------------ | :------ | :------ | :--------- | :------ | :--------- | | Leased and owned hotels | 2,789 | 3,099 | -10.0% | 3,373 | -17.3% | | Manachised and franchised hotels | 2,499 | 2,063 | +21.1% | 2,499 | 0.0% | | Others | 107 | 116 | -7.7% | 151 | -29.1% | | **Total Revenue** | **5,395** | **5,278** | **+2.2%** | **6,023** | **-10.4%** | - Legacy-Huazhu segment revenue increased **5.5%** YoY to **RMB4.5 billion**, driven by hotel network expansion[14](index=14&type=chunk) - Legacy-DH segment revenue decreased **11.3%** YoY to **RMB918 million**, partly due to exiting **11** leased hotels[14](index=14&type=chunk)[15](index=15&type=chunk) [Operating Costs and Expenses](index=4&type=section&id=Operating%20Costs%20and%20Expenses) Total operating costs and expenses remained relatively stable year-over-year. Hotel operating costs increased slightly, while SG&A expenses decreased, reflecting the company's asset-light strategy and cost optimization efforts, particularly in the Legacy-DH segment Operating Costs and Expenses (RMB million) | Expense Type | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | | :------------------------------ | :------ | :------ | :--------- | :------ | | Hotel operating costs | (3,604) | (3,565) | +1.1% | (4,190) | | Selling and marketing expenses | (243) | (260) | -6.5% | (296) | | General and administrative expenses | (512) | (509) | +0.6% | (725) | | **Total operating costs and expenses** | **(4,373)** | **(4,351)** | **+0.5%** | **(5,220)** | - Hotel operating costs as a percentage of revenue decreased by **0.7 percentage points** year-over-year, in line with the asset-light strategy[19](index=19&type=chunk) - SG&A expenses decreased by **1.8%** YoY, primarily due to an **11.1%** decline in Legacy-DH from restructuring and cost optimization, partially offset by a **1.6%** increase in Legacy-Huazhu due to higher share-based compensation[20](index=20&type=chunk) [Profitability Metrics](index=5&type=section&id=Profitability%20Metrics) H World demonstrated improved profitability in Q1 2025, with income from operations increasing by 7.9% year-over-year and operating margin expanding to 20.1%. Net income attributable to H World Group Limited saw a significant 35.7% year-over-year increase Key Profitability Metrics (RMB million) | Metric | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | | :--------------------------------------- | :------ | :------ | :--------- | :------ | | Income from operations | 1,082 | 1,003 | +7.9% | 902 | | Operating margin | 20.1% | 19.0% | +1.1 p.p. | 15.0% | | Net income attributable to H World Group Limited | 894 | 659 | +35.7% | 49 | | Income tax expense | (377) | (279) | +35.1% | (578) | - Operating margin improved to **20.1%** from **19.0%** YoY, mainly due to a higher revenue contribution from the manachised and franchised business, aligning with the asset-light expansion strategy[22](index=22&type=chunk) - The higher income tax expense in Q1 2025 was due to withholding tax related to dividend distributions[25](index=25&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) Both EBITDA and Adjusted EBITDA (non-GAAP) showed strong year-over-year growth in Q1 2025, reflecting improved operational performance. Adjusted EBITDA for Legacy-Huazhu increased, while Legacy-DH continued to report a loss, albeit a reduced one quarter-over-quarter Non-GAAP Profitability Metrics (RMB million) | Metric | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | | :----------------------- | :------ | :------ | :--------- | :------ | | EBITDA (non-GAAP) | 1,615 | 1,309 | +23.4% | 974 | | Adjusted EBITDA (non-GAAP) | 1,496 | 1,421 | +5.3% | 1,246 | | Adjusted EBITDA (Legacy-Huazhu) | 1,573 | 1,487 | +5.8% | 1,493 | | Adjusted EBITDA (Legacy-DH) | (77) | (66) | -16.7% | (247) | [Cash Flow and Liquidity](index=6&type=section&id=Cash%20Flow%20and%20Liquidity) H World generated positive operating and investing cash inflows in Q1 2025, contributing to a healthy cash and cash equivalents balance. The company maintains a strong liquidity position with available credit facilities Cash Flow Summary (RMB million) | Cash Flow Type | Q1 2025 | Q1 2024 | Q4 2024 | | :-------------------------------- | :------ | :------ | :------ | | Operating cash inflow | 580 | 886 | 2,704 | | Investing cash inflow | 757 | 348 | (3,099) | | Financing cash outflow | (628) | (2,258) | (37) | - As of March 31, 2025, cash and cash equivalents totaled **RMB8.2 billion** (**US$1.1 billion**) and restricted cash was **RMB121 million** (**US$16 million**)[29](index=29&type=chunk)[52](index=52&type=chunk) - The company had a net cash balance of **RMB3.0 billion** (**US$418 million**) and unutilized credit facilities of **RMB3.0 billion**[30](index=30&type=chunk) [Guidance](index=6&type=section&id=Guidance) [Q2 2025 Revenue Guidance](index=6&type=section&id=Q2%202025%20Revenue%20Guidance) H World expects its revenue growth for the second quarter of 2025 to be between 1%-5% year-over-year, or 3%-7% excluding DH. Manachised and franchised revenue growth is projected to be in the range of 18%-22% Q2 2025 Revenue Growth Guidance | Metric | Q2 2025 YoY Growth Range | | :-------------------------------- | :----------------------- | | Total Revenue | 1%-5% | | Total Revenue (excluding DH) | 3%-7% | | Manachised and Franchised Revenue | 18%-22% | [Company Information & Disclosures](index=6&type=section&id=Company%20Information%20%26%20Disclosures) [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) H World's management hosted a conference call on May 20, 2025, to discuss the Q1 2025 financial results. Details for registration, live webcast, and replay access were provided - Conference call held on Tuesday, May 20, 2025, at 8 a.m. (U.S. Eastern time) / 8 p.m. (Hong Kong time)[33](index=33&type=chunk) - Participants could pre-register via a provided link to receive dial-in details, and a live webcast was accessible on the company's investor relations website[35](index=35&type=chunk)[36](index=36&type=chunk) [Use of Non-GAAP Financial Measures](index=7&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures%20(Explanation)) The company uses non-GAAP measures like adjusted net income and EBITDA to supplement GAAP results, excluding specific non-operating items for performance assessment - Non-GAAP measures include adjusted net income, adjusted basic/diluted EPS/ADS, EBITDA, and adjusted EBITDA[37](index=37&type=chunk) - These measures exclude share-based compensation, gain/loss from fair value changes of equity securities, foreign exchange gain/loss, and gain/loss on disposal of investments[37](index=37&type=chunk)[39](index=39&type=chunk) - The company believes these non-GAAP measures provide meaningful supplemental information for assessing performance and facilitating comparisons, especially for the lodging industry, but acknowledge limitations and are not a substitute for GAAP[37](index=37&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) [About H World Group Limited](index=9&type=section&id=About%20H%20World%20Group%20Limited) H World Group Limited is a global hotel industry player originating in China, operating 11,685 hotels across 19 countries under various brands. The company employs leased and owned, manachised, and franchised business models, with 92% of its rooms under asset-light manachise and franchise models - H World operated **11,685** hotels with **1,142,158** rooms in **19** countries as of March 31, 2025[45](index=45&type=chunk) - The company's business models include leased and owned (**8%** of rooms) and asset-light manachised and franchised models (**92%** of rooms)[46](index=46&type=chunk) - H World's brand portfolio includes HanTing Hotel, JI Hotel, Steigenberger Hotels & Resorts, and master franchisee rights for Mercure, Ibis, and Ibis Styles in pan-China[45](index=45&type=chunk) [Safe Harbor Statement](index=10&type=section&id=Safe%20Harbor%20Statement) This report contains forward-looking statements subject to inherent risks and uncertainties, which H World does not undertake to update unless legally required - The release contains forward-looking statements regarding anticipated growth strategies, future results, economic conditions, and the regulatory environment[49](index=49&type=chunk) - Readers should not rely on forward-looking statements as predictions of future events or results due to inherent risks and uncertainties[49](index=49&type=chunk) - H World undertakes no obligation to update or revise any forward-looking statements unless required by applicable law[50](index=50&type=chunk) [Detailed Financial Statements](index=11&type=section&id=Detailed%20Financial%20Statements) [Unaudited Condensed Consolidated Balance Sheets](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows a slight decrease in total assets and total equity compared to December 31, 2024, while total liabilities increased. Key changes include an increase in cash and cash equivalents, a decrease in short-term investments, and a significant increase in dividends payable Key Balance Sheet Items (RMB million) | Item | March 31, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------- | :---------------- | :----- | | Total assets | 61,559 | 62,552 | (993) | | Total liabilities | 50,937 | 50,281 | 656 | | Total H World Group Limited shareholders' equity | 10,495 | 12,177 | (1,682) | | Cash and cash equivalents | 8,184 | 7,474 | 710 | | Short-term investments | 2,682 | 3,603 | (921) | | Dividends payable | 2,137 | 0 | 2,137 | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The statement of comprehensive income for Q1 2025 shows a significant increase in net income attributable to H World Group Limited, driven by higher income from operations and a positive foreign exchange gain, despite increased income tax expense Key Comprehensive Income Items (RMB million) | Item | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | | :--------------------------------------- | :------ | :------ | :--------- | :------ | | Total revenue | 5,395 | 5,278 | +2.2% | 6,023 | | Total operating costs and expenses | (4,373) | (4,351) | +0.5% | (5,220) | | Income from operations | 1,082 | 1,003 | +7.9% | 902 | | Foreign exchange gain (loss) | 208 | (92) | N/A | (155) | | Net income attributable to H World Group Limited | 894 | 659 | +35.7% | 49 | | Basic Earnings per ADS | 2.91 | 2.10 | +38.6% | 0.16 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=15&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement for Q1 2025 indicates positive net cash provided by operating and investing activities, leading to a net increase in cash, cash equivalents, and restricted cash. This was supported by significant proceeds from maturity/sale and return of investments Cash Flow Activities (RMB million) | Activity | Q1 2025 | Q1 2024 | Q4 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net cash provided by operating activities | 580 | 886 | 2,704 | | Net cash provided by investing activities | 757 | 348 | (3,099) | | Net cash used in financing activities | (628) | (2,258) | (37) | | Net increase in cash, cash equivalents and restricted cash | 779 | (1,041) | (411) | - Proceeds from maturity/sale and return of investments significantly increased to **RMB3,031 million** in Q1 2025 from **RMB842 million** in Q1 2024[59](index=59&type=chunk) - Financing cash outflow was primarily driven by payment of share repurchase (**RMB430 million**) and repayment of debt (**RMB166 million**)[59](index=59&type=chunk) [Reconciliations of GAAP and Non-GAAP Results](index=15&type=section&id=Reconciliations%20of%20GAAP%20and%20Non-GAAP%20Results) [Adjusted Net Income (Loss) Attributable to H World Group Limited](index=15&type=section&id=Adjusted%20Net%20Income%20(Loss)%20Attributable%20to%20H%20World%20Group%20Limited) Adjusted net income attributable to H World Group Limited, a non-GAAP measure, increased year-over-year to RMB775 million in Q1 2025, after excluding items such as share-based compensation, fair value changes, and foreign exchange gains/losses Adjusted Net Income Reconciliation (RMB million) | Item | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | | :--------------------------------------- | :------ | :------ | :--------- | :------ | | Net income (loss) attributable to H World Group Limited (GAAP) | 894 | 659 | +35.7% | 49 | | Share-based compensation expenses | 77 | 58 | +32.8% | 73 | | (Gain) loss from fair value changes of equity securities | 12 | (38) | N/A | 19 | | Foreign exchange (gain) loss, net | (208) | 92 | N/A | 155 | | Adjusted net income (loss) attributable to H World Group Limited (non-GAAP) | 775 | 771 | +0.5% | 321 | | Adjusted earnings (losses) per ADS (non-GAAP) | 2.53 | 2.46 | +2.8% | 1.04 | [EBITDA and Adjusted EBITDA](index=17&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) EBITDA and Adjusted EBITDA, non-GAAP measures, both showed significant year-over-year increases in Q1 2025, reflecting improved operational profitability before the impact of non-operating items. Adjusted EBITDA for Legacy-Huazhu grew, while Legacy-DH's loss narrowed quarter-over-quarter EBITDA and Adjusted EBITDA Reconciliation (RMB million) | Item | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | | :-------------------------------- | :------ | :------ | :--------- | :------ | | Net income (loss) attributable to H World Group Limited (GAAP) | 894 | 659 | +35.7% | 49 | | EBITDA (non-GAAP) | 1,615 | 1,309 | +23.4% | 974 | | Adjusted EBITDA (non-GAAP) | 1,496 | 1,421 | +5.3% | 1,246 | Adjusted EBITDA by Segment (RMB million) | Segment | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | | :---------------- | :------ | :------ | :--------- | :------ | | Legacy-Huazhu | 1,573 | 1,487 | +5.8% | 1,493 | | Legacy-DH | (77) | (66) | -16.7% | (247) | [Segment Financial Summary](index=17&type=section&id=Segment%20Financial%20Summary) [Revenue by Segment](index=17&type=section&id=Revenue%20by%20Segment) The segment financial summary highlights that Legacy-Huazhu continues to be the primary revenue driver, showing year-over-year growth, while Legacy-DH experienced a revenue decline in Q1 2025 Revenue by Segment (RMB million) | Segment | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | | :---------------- | :------ | :------ | :--------- | :------ | | Legacy-Huazhu | 4,481 | 4,246 | +5.5% | 4,789 | | Legacy-DH | 918 | 1,035 | -11.3% | 1,241 | | Total Revenue | 5,395 | 5,278 | +2.2% | 6,023 | [Adjusted EBITDA by Segment](index=17&type=section&id=Adjusted%20EBITDA%20by%20Segment) Legacy-Huazhu's Adjusted EBITDA continued its positive trend with a 5.8% year-over-year increase, while Legacy-DH's Adjusted EBITDA remained a loss, though it significantly improved from the previous quarter Adjusted EBITDA by Segment (RMB million) | Segment | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | | :---------------- | :------ | :------ | :--------- | :------ | | Legacy-Huazhu | 1,573 | 1,487 | +5.8% | 1,493 | | Legacy-DH | (77) | (66) | -16.7% | (247) | [Detailed Operational Data](index=18&type=section&id=Detailed%20Operational%20Data) [Legacy-Huazhu Detailed Operating Results](index=18&type=section&id=Legacy-Huazhu%20Detailed%20Operating%20Results) Legacy-Huazhu's detailed operational data shows continued network expansion with 539 net added hotels in Q1 2025, reaching 11,564 hotels. While overall ADR, occupancy, and RevPAR saw slight YoY declines, the segment maintains a strong pipeline, particularly in midscale and upper-midscale hotels Legacy-Huazhu Hotel Network (Q1 2025) | Hotel Type | Opened in Q1 2025 | Closed in Q1 2025 | Net Added in Q1 2025 | As of March 31, 2025 (Hotels) | As of March 31, 2025 (Rooms) | | :------------------------ | :---------------- | :---------------- | :------------------- | :---------------------------- | :--------------------------- | | Leased and owned hotels | 2 | (7) | (5) | 552 | 81,736 | | Manachised and franchised hotels | 692 | (148) | 544 | 11,012 | 1,034,664 | | **Total** | **694** | **(155)** | **539** | **11,564** | **1,116,400** | Legacy-Huazhu ADR, Occupancy, RevPAR (Q1 2025) | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | YoY Change | Q4 2024 (RMB) | | :------------------------ | :------------ | :------------ | :--------- | :------------ | | Blended ADR | 272 | 280 | -2.6% | 277 | | Blended Occupancy rate | 76.2% | 77.2% | -1.0 p.p. | 80.0% | | Blended RevPAR | 208 | 216 | -3.9% | 222 | Legacy-Huazhu Same-Hotel RevPAR (Q1 2025) | Hotel Class | Q1 2025 RevPAR (RMB) | Q1 2024 RevPAR (RMB) | YoY Change | Q1 2025 ADR (RMB) | Q1 2024 ADR (RMB) | YoY Change | Q1 2025 Occupancy | Q1 2024 Occupancy | YoY Change (p.p.) | | :-------------------------------- | :------------------- | :------------------- | :--------- | :---------------- | :---------------- | :--------- | :---------------- | :---------------- | :------------------ | | Economy hotels | 156 | 172 | -9.1% | 201 | 213 | -5.7% | 77.9% | 80.8% | -2.9 | | Midscale, upper-midscale hotels and others | 245 | 266 | -7.9% | 325 | 343 | -5.3% | 75.4% | 77.5% | -2.1 | | **Total** | **205** | **224** | **-8.3%** | **269** | **284** | **-5.3%** | **76.5%** | **79.0%** | **-2.5** | [Legacy-DH Detailed Operating Results](index=21&type=section&id=Legacy-DH%20Detailed%20Operating%20Results) Legacy-DH's detailed operational data for Q1 2025 shows a net decrease of 1 hotel, with 10 new manachised/franchised hotels offsetting 11 leased hotel closures. The segment demonstrated positive year-over-year growth across ADR, occupancy, and RevPAR, particularly strong in manachised and franchised hotels Legacy-DH Hotel Network (Q1 2025) | Hotel Type | Opened in Q1 2025 | Closed in Q1 2025 | Net Added in Q1 2025 | As of March 31, 2025 (Hotels) | As of March 31, 2025 (Rooms) | | :------------------------ | :---------------- | :---------------- | :------------------- | :---------------------------- | :--------------------------- | | Leased hotels | - | (11) | (11) | 65 | 13,749 | | Manachised and franchised hotels | 10 | - | 10 | 56 | 12,009 | | **Total** | **10** | **(11)** | **(1)** | **121** | **25,758** | Legacy-DH ADR, Occupancy, RevPAR (Q1 2025) | Metric | Q1 2025 (EUR) | Q1 2024 (EUR) | YoY Change | Q4 2024 (EUR) | | :------------------------ | :------------ | :------------ | :--------- | :------------ | | Blended ADR | 107 | 104 | +2.8% | 115 | | Blended Occupancy rate | 61.1% | 55.8% | +5.3 p.p. | 70.5% | | Blended RevPAR | 65 | 58 | +12.7% | 81 | [Hotel Portfolio by Brand](index=23&type=section&id=Hotel%20Portfolio%20by%20Brand) H World's hotel portfolio as of March 31, 2025, comprises 11,685 hotels across various segments, with economy and midscale hotels forming the largest portions. The company also has a significant pipeline of 2,888 unopened hotels, indicating future growth potential across its diverse brand offerings Hotel Portfolio by Segment (As of March 31, 2025) | Segment | Hotels in operation | Rooms | Unopened hotels in pipeline | | :---------------- | :------------------ | :------ | :-------------------------- | | Economy hotels | 5,677 | 464,841 | 1,123 | | Midscale hotels | 4,835 | 517,060 | 1,116 | | Upper midscale hotels | 994 | 132,474 | 527 | | Upscale hotels | 152 | 22,016 | 112 | | Luxury hotels | 16 | 2,325 | 5 | | Others | 11 | 3,442 | 5 | | **Total** | **11,685** | **1,142,158** | **2,888** | - HanTing Hotel is the largest brand with **4,269** hotels and **370,138** rooms, followed by JI Hotel with **3,092** hotels and **351,344** rooms[75](index=75&type=chunk) - The pipeline for midscale hotels (**1,116**) and economy hotels (**1,123**) represents the largest growth areas[75](index=75&type=chunk)