华住集团(01179) - 2025 - 中期财报

Announcement Overview Important Notice and Dividend Declaration Huazhu Group Limited announced its unaudited financial results for the second quarter and interim period ended June 30, 2025, and declared an ordinary cash dividend totaling approximately US$250 million for the first half of 2025 - The Company has provided this earnings announcement as an interim report to shareholders for the six months ended June 30, 2025, in accordance with Rule 13.48(1) of the HKEX Listing Rules[3] H1 2025 Cash Dividend Declaration | Metric | Amount/Date | | :--- | :--- | | Dividend Per Ordinary Share | US$0.081 | | Dividend Per ADS | US$0.81 | | Total Dividend Amount | Approx. US$250 million | | Record Date | Close of Business on September 9, 2025 | | Ordinary Share Payment Date | On or around September 19, 2025 | | ADS Payment Date | On or around September 26, 2025 | Q2 and Interim 2025 Performance Highlights Huazhu Group achieved robust financial and operational growth in Q2 2025, with year-over-year increases in hotel turnover and revenue, significant improvements in net income and EBITDA, and continued hotel network expansion under its asset-light strategy Q2 2025 Key Financial and Operational Metrics | Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Hotels in Operation | 12,137 | | | Hotel Turnover | RMB 26.9 billion | 15.0% | | Revenue | RMB 6.4 billion (US$897 million) | 4.5% | | Manachised and Franchised Revenue | RMB 2.9 billion (US$400 million) | 22.8% | | Net Income Attributable to Huazhu Group Limited | RMB 1.5 billion (US$215 million) | 44.7% (vs. Q2 2024) | | EBITDA (Non-GAAP) | RMB 2.5 billion (US$344 million) | 31.6% (vs. Q2 2024) | | Adjusted EBITDA (Non-GAAP) | RMB 2.3 billion (US$317 million) | 15.0% (vs. Q2 2024) | - Legacy-Huazhu segment revenue increased by 5.7% year-over-year to RMB 5.1 billion, while Legacy-DH segment revenue remained largely flat year-over-year at RMB 1.3 billion[7] - For the first half of 2025, the Board declared a cash dividend totaling approximately US$250 million, or US$0.081 per ordinary share[7] Q3 2025 Performance Guidance Huazhu Group anticipates mid-to-low single-digit revenue growth for Q3 2025, with manachised and franchised revenue expected to maintain strong growth momentum Q3 2025 Revenue Guidance | Metric | Growth Range (vs. Q3 2024) | | :--- | :--- | | Total Revenue | 2% to 6% | | Total Revenue (Excluding DH) | 4% to 8% | | Manachised and Franchised Revenue | 20% to 24% | Operating Performance Analysis Hotel Network Overview As of June 30, 2025, Huazhu Group operated over 12,000 hotels and nearly 1.2 million rooms globally, with almost 3,000 hotels in the pipeline, primarily within its Legacy-Huazhu business Hotel Network Overview as of June 30, 2025 | Metric | Count | | :--- | :--- | | Global Hotels in Operation | 12,137 | | Global Rooms in Operation | 1,184,915 | | Hotels in Pipeline | 2,947 | | Legacy-Huazhu Hotels in Operation | 12,016 | | Legacy-DH Hotels in Operation | 121 | - In Q2 2025, Legacy-Huazhu business opened 595 hotels (594 of which were manachised and franchised hotels) and closed a total of 143 hotels[9][53] Legacy-Huazhu Operating Performance Legacy-Huazhu continued its hotel network expansion in Q2 2025, but experienced slight year-over-year declines in ADR, occupancy rate, and RevPAR, with same-store performance also showing a decrease Legacy-Huazhu Hotel and Room Count (as of June 30, 2025) | Metric | Count | | :--- | :--- | | Hotels in Operation | 12,016 | | Leased and Owned Hotels | 547 | | Manachised and Franchised Hotels | 11,469 | | Rooms in Operation | 1,159,086 | | Hotels in Pipeline | 2,925 | Legacy-Huazhu Q2 2025 Key Operating Metrics | Metric (RMB) | Q2 2024 | Q1 2025 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | ADR | 296 | 272 | 290 | -1.9% | | Occupancy Rate | 82.6% | 76.2% | 81.0% | -1.6 percentage points | | Blended RevPAR | 244 | 208 | 235 | -3.8% | Legacy-Huazhu Mature Hotel Same-Store Performance (Q2 2025) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Same-Store RevPAR | RMB 253 | RMB 233 | -7.9% | | Same-Store ADR | RMB 300 | RMB 287 | -4.6% | | Same-Store Occupancy Rate | 84.1% | 81.1% | -2.9 percentage points | Legacy-DH Operating Performance Legacy-DH achieved significant RevPAR growth in Q2 2025, primarily driven by an increase in occupancy rate, despite a stable ADR Legacy-DH Hotel and Room Count (as of June 30, 2025) | Metric | Count | | :--- | :--- | | Hotels in Operation | 121 | | Leased Hotels | 65 | | Manachised and Franchised Hotels | 56 | | Rooms in Operation | 25,829 | | Hotels in Pipeline | 22 | Legacy-DH Q2 2025 Key Operating Metrics | Metric (EUR) | Q2 2024 | Q1 2025 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | ADR | 120 | 107 | 120 | -0.1% | | Occupancy Rate | 68.3% | 61.1% | 73.9% | +5.6 percentage points | | Blended RevPAR | 82 | 65 | 88 | +8.1% | CEO Commentary CEO Jin Hui highlighted strong operating profit growth driven by the asset-light strategy and network expansion, expressing optimism for the long-term growth of China's travel and hospitality industry while remaining cautious about short-term macroeconomic uncertainties - The Company opened 595 hotels in Q2, on track to achieve its full-year 2025 target of opening a total of 2,300 hotels[12] - Despite macroeconomic uncertainties, increased supply, and weak business travel demand, the Company remains optimistic about the long-term growth of China's travel and hospitality industry[12] - Legacy-DH segment achieved an 8.1% year-over-year increase in blended RevPAR in Q2 2025, primarily driven by a 5.6 percentage point increase in occupancy rate[12] Financial Performance Analysis Revenue Analysis Huazhu Group's total revenue grew by 4.5% year-over-year in Q2 2025, primarily driven by the strong expansion of its manachised and franchised hotel network, with this business model's revenue contribution continuously increasing Total Revenue Overview (RMB in millions) | Revenue Source | Q2 2024 | Q1 2025 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Leased and Owned Hotels | 3,681 | 2,789 | 3,401 | 6,780 | 6,190 | | Manachised and Franchised Hotels | 2,334 | 2,499 | 2,865 | 4,397 | 5,364 | | Other | 133 | 107 | 160 | 249 | 267 | | Total Revenue | 6,148 | 5,395 | 6,426 | 11,426 | 11,821 | - Total revenue for Q2 2025 was RMB 6.4 billion (US$897 million), a 4.5% year-over-year increase. Legacy-Huazhu segment revenue grew 5.7% year-over-year to RMB 5.1 billion, while Legacy-DH segment revenue remained largely flat year-over-year at RMB 1.3 billion[13][51] - Total revenue for H1 2025 was RMB 11.8 billion (US$1.7 billion), a 3.5% increase compared to H1 2024. Legacy-Huazhu revenue increased by 5.6% year-over-year, while Legacy-DH revenue decreased by 4.9% year-over-year[14][52] Leased and Owned Hotel Revenue Leased and owned hotel revenue decreased year-over-year in both Q2 and H1 2025, reflecting the company's ongoing strategy to reduce this business model Leased and Owned Hotel Revenue (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 3,681 | 3,401 | -7.6% | | Legacy-Huazhu | 2,395 | 2,130 | -11.1% | | Legacy-DH | 1,286 | 1,271 | -1.2% | - Revenue from leased and owned hotels for H1 2025 was RMB 6.2 billion (US$864 million), a year-over-year decrease of 8.7%[14] Manachised and Franchised Hotel Revenue Manachised and franchised hotel revenue achieved strong growth in both Q2 and H1 2025, becoming the primary driver of the company's revenue increase, with its revenue contribution significantly rising Manachised and Franchised Hotel Revenue (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 2,334 | 2,865 | +22.8% | | Legacy-Huazhu | 2,305 | 2,829 | +22.7% | | Legacy-DH | 32 | 41 | +28.1% | - Revenue from manachised and franchised hotels for H1 2025 was RMB 5.4 billion (US$749 million), a 22.0% year-over-year increase, accounting for 45.4% of total revenue (compared to 38.5% in H1 2024)[16] Other Revenue Other revenue increased in both Q2 and H1 2025, primarily from businesses such as IT products and services, procurement platforms, and Huazhu Mall Other Revenue (RMB in millions) | Period | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | | Amount | 133 | 160 | 249 | 267 | Operating Costs and Expenses Analysis In Q2 2025, Huazhu Group's total operating costs and expenses slightly increased year-over-year, but hotel operating costs as a percentage of revenue decreased due to the asset-light strategy, leading to double-digit operating profit growth Total Operating Costs and Expenses (RMB in millions) | Expense Type | Q2 2024 | Q1 2025 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Hotel Operating Costs | (3,731) | (3,604) | (3,752) | (7,296) | (7,356) | | Other Operating Costs | (6) | (11) | (11) | (15) | (22) | | Selling and Marketing Expenses | (317) | (243) | (309) | (577) | (552) | | General and Administrative Expenses | (602) | (512) | (660) | (1,111) | (1,172) | | Pre-opening Expenses | (19) | (3) | (12) | (27) | (15) | | Total Operating Costs and Expenses | (4,675) | (4,373) | (4,744) | (9,026) | (9,117) | Hotel Operating Costs Hotel operating costs in Q2 2025 slightly increased by 0.6% year-over-year, but as a percentage of revenue, they decreased by 2.3 percentage points year-over-year due to the implementation of the asset-light strategy - Hotel operating costs for Q2 2025 were RMB 3.8 billion (US$523 million), a slight year-over-year increase of 0.6%[17] - As the Company continues to execute its asset-light strategy, hotel operating costs as a percentage of revenue decreased by 2.3 percentage points year-over-year[17] - Hotel operating costs for H1 2025 were RMB 7.4 billion (US$1.0 billion), largely flat compared to RMB 7.3 billion in H1 2024[18] Selling, General and Administrative Expenses Selling, general and administrative expenses increased by 5.4% year-over-year in Q2 2025, primarily due to higher share-based compensation, but would have decreased by 1.0% year-over-year excluding share-based compensation Selling, General and Administrative Expenses (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | SG&A | 919 (317+602) | 969 (309+660) | +5.4% | | Excluding Share-based Compensation | | | -1.0% | - Selling, general and administrative expenses for H1 2025 were RMB 1.7 billion (US$241 million), compared to RMB 1.7 billion in H1 2024[19] Operating Profit Operating profit increased by 13.7% year-over-year in Q2 2025, with the operating profit margin rising to 27.8%, primarily due to the increased revenue contribution from manachised and franchised businesses Operating Profit (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Profit | 1,572 | 1,787 | +13.7% | | Legacy-Huazhu | | | +11.7% | | Legacy-DH | | | +52.7% | - Operating profit margin (defined as operating profit as a percentage of revenue) for Q2 2025 was 27.8%, an improvement from 25.6% in Q2 2024[20] - Operating profit for H1 2025 was RMB 2.9 billion (US$400 million), with an operating profit margin of 24.3%, compared to 22.5% in H1 2024[19][21] Net Income and EBITDA Huazhu Group's net income attributable to the company and EBITDA (Non-GAAP) both achieved substantial growth in Q2 2025, reflecting a significant improvement in the company's profitability Net Income and EBITDA Overview (RMB in millions) | Metric | Q2 2024 | Q1 2025 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Huazhu Group Limited | 1,067 | 894 | 1,544 | 1,726 | 2,438 | | EBITDA (Non-GAAP) | 1,853 | 1,615 | 2,465 | 3,162 | 4,080 | | Adjusted EBITDA (Non-GAAP) | 2,040 | 1,496 | 2,270 | 3,461 | 3,766 | Income Tax Expense Income tax expense increased year-over-year in Q2 2025, primarily due to higher profit and increased withholding tax on dividend distribution Income Tax Expense (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 423 | 565 | +33.6% | | H1 2025 | 702 | 942 | +34.2% | Net Income Attributable to Huazhu Group Limited Net income attributable to Huazhu Group Limited surged by 44.7% year-over-year in Q2 2025, primarily driven by net income growth from Legacy-Huazhu Net Income Attributable to Huazhu Group Limited (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Net Income | 1,067 | 1,544 | +44.7% | | Legacy-Huazhu Net Income | | | +40.9% | - Net income attributable to Huazhu Group Limited for H1 2025 was RMB 2.4 billion (US$340 million), compared to RMB 1.7 billion in H1 2024[22] EBITDA (Non-GAAP) EBITDA (Non-GAAP) reached RMB 2.5 billion in Q2 2025, showing significant year-over-year growth and reflecting the strong profitability of the company's core business EBITDA (Non-GAAP) (RMB in millions) | Period | Q2 2024 | Q1 2025 | Q2 2025 | | :--- | :--- | :--- | :--- | | EBITDA | 1,853 | 1,615 | 2,465 | - EBITDA (Non-GAAP) for H1 2025 was RMB 4.1 billion (US$569 million), compared to RMB 3.2 billion in H1 2024[22] Adjusted EBITDA (Non-GAAP) Adjusted EBITDA (Non-GAAP) for Q2 2025 was RMB 2.3 billion, with both Legacy-Huazhu and Legacy-DH segments achieving growth, indicating strong performance across all business units Adjusted EBITDA (Non-GAAP) (RMB in millions) | Metric | Q2 2024 | Q1 2025 | Q2 2025 | | :--- | :--- | :--- | :--- | | Total Adjusted EBITDA | 2,040 | 1,496 | 2,270 | | Legacy-Huazhu | 1,907 | 1,573 | 2,090 | | Legacy-DH | 133 | (77) | 180 | - Adjusted EBITDA (Non-GAAP) for H1 2025 was RMB 3.8 billion (US$525 million), compared to RMB 3.5 billion in H1 2024[24] Financial Position and Cash Flow Balance Sheet Overview As of June 30, 2025, Huazhu Group's total assets and liabilities both increased, with ample cash and cash equivalents and a healthy net cash balance Balance Sheet Key Data (as of June 30, 2025) | Metric | Amount (RMB in millions) | | :--- | :--- | | Total Assets | 64,779 | | Total Liabilities | 52,486 | | Total Shareholders' Equity Attributable to Huazhu Group Limited | 12,153 | | Cash and Cash Equivalents | 10,145 | | Restricted Cash | 370 | | Total Debt | 7,410 (Short-term Debt 6,633 + Long-term Debt 777) | | Net Cash Balance | 3,100 (Cash and Cash Equivalents 10,145 + Restricted Cash 370 - Total Debt 7,410) | Cash Flow In Q2 2025, Huazhu Group reported strong cash inflow from operating activities, positive cash inflow from investing activities, and cash outflow from financing activities primarily due to dividend payments and debt repayments Cash Flow Overview (RMB in millions) | Cash Flow Type | Q2 2024 | Q1 2025 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 2,235 | 580 | 2,659 | 3,121 | 3,239 | | Net Cash from Investing Activities | 346 | 757 | 239 | 694 | 996 | | Net Cash from Financing Activities | (1,105) | (628) | (709) | (3,363) | (1,337) | - Operating cash inflow for Q2 2025 was RMB 2.7 billion (US$371 million), investing cash inflow was RMB 239 million (US$34 million), and financing cash outflow was RMB 709 million (US$100 million)[24] - Operating cash inflow for H1 2025 was RMB 3.2 billion (US$452 million), investing cash inflow was RMB 996 million (US$139 million), and financing cash outflow was RMB 1.3 billion (US$187 million)[24] Company Information and Accounting Principles Conference Call Information Huazhu Group will host a conference call on August 20, 2025, to discuss its results, with webcast and replay services available - The conference call will commence at 8:00 AM U.S. Eastern Time (8:00 PM Hong Kong Time) on August 20, 2025[29] - All participants are required to pre-register before the call, and a webcast and replay will be available on the company's website for twelve months[29] Use and Limitations of Non-GAAP Financial Measures Huazhu Group utilizes non-GAAP financial measures like EBITDA and Adjusted EBITDA to provide a more comparable assessment of operating performance, while acknowledging their limitations and emphasizing the need for comprehensive evaluation alongside GAAP data - Non-GAAP measures (such as EBITDA and Adjusted EBITDA) provide meaningful supplemental information by excluding share-based compensation expenses, fair value changes, net foreign exchange gains/losses, and gains/losses from disposal of investments[30] - The Company believes EBITDA is a useful financial metric for evaluating operating and financial performance before reflecting investment and financing transactions and income tax impacts, and is widely used by other companies in the hospitality industry[31] - Limitations of non-GAAP measures include their failure to reflect important items such as depreciation and amortization, income tax, and interest expense, and they may not be fully comparable to those of other companies[32][33] About Huazhu Group Limited Huazhu Group is a major player in the global hospitality industry, boasting a diversified brand portfolio and an asset-light business model, committed to expanding its hotel network worldwide - As of June 30, 2025, Huazhu operated 12,137 hotels with 1,184,915 rooms in operation across 19 countries[34] - Huazhu's brands include Hanting Hotel, Ji Hotel, Orange Hotel, Steigenberger, and it holds master franchise rights for Mercure, Ibis, and Ibis Styles in Greater China[34] - Huazhu's business model includes leased and owned (8% of hotel rooms) and manachised and franchised (92% of hotel rooms), with uniform standards and platforms applied across all hotels[35] Reconciliation of US GAAP to IFRS This report provides a reconciliation between financial statements prepared under US GAAP and IFRS, detailing significant impacts arising from accounting treatment differences such as convertible preferred notes, share-based compensation, leases, investment classification, and asset impairment - The reconciliation has been reviewed by Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) issued by the Hong Kong Institute of Certified Public Accountants[60] - Key differences include the classification of convertible preferred notes (liability under US GAAP vs. financial liability at fair value through profit or loss under IFRS), recognition methods for share-based compensation expenses (straight-line vs. accelerated method), and lease accounting treatment (changes in index or rate, right-of-use asset amortization, intermediate lessor classification)[65][66][67][68][69] - Measurement of investments in debt and equity securities (at cost less impairment under US GAAP vs. at fair value through profit or loss under IFRS) and long-lived asset impairment test methods (two-step vs. one-step approach) are also significant factors contributing to the differences[70][74]