2025-08-20 10:58Hotel Operations - As of June 30, 2025, H World Group operated a total of 12,137 hotels and 1,184,915 rooms, with 595 hotels opened in Q2 2025[6] - The number of leased and owned hotels as of June 30, 2025, was 2,130, while manachised and franchised hotels totaled 2,829, indicating a net addition of 452 hotels during the quarter[75] - The total number of hotels in operation as of June 30, 2025, was 12,137, with 2,947 hotels in the pipeline[84] - The company had a total of 12,016 hotels as of June 30, 2025, with 2,925 hotels in the pipeline, reflecting ongoing expansion efforts[77] - As of June 30, 2025, 3 hotels were temporarily closed due to repair and renovation[81] Financial Performance - Hotel turnover increased 15.0% year-over-year to RMB26.9 billion in Q2 2025, while revenue rose 4.5% year-over-year to RMB6.4 billion (US$897 million)[4] - Net income attributable to H World was RMB1.5 billion (US$215 million) in Q2 2025, up from RMB1.1 billion in Q2 2024[4] - Adjusted EBITDA (non-GAAP) for Q2 2025 was RMB2.3 billion (US$317 million), compared to RMB2.0 billion in Q2 2024[4] - For the first half of 2025, total revenue was RMB11.8 billion (US$1.7 billion), a 3.5% increase from the first half of 2024[16] - Total revenue for the quarter ended June 30, 2025, was RMB 6,426 million (approximately US$ 897 million), representing an increase from RMB 5,395 million in the previous quarter[64] - Net income for the quarter ended June 30, 2025, was RMB 1,559 million (approximately US$ 217 million), compared to RMB 899 million in the previous quarter, reflecting a growth of 73.3%[64] - Adjusted EBITDA for the six months ended June 30, 2025, reached RMB 3,766 million, up from RMB 3,461 million in the same period last year, reflecting an increase of 8.8%[68] - The adjusted net income attributable to H World Group for the quarter ended June 30, 2025, was RMB 1,349 million, compared to RMB 775 million in the same quarter of the previous year, an increase of 73.7%[68] Occupancy and Revenue Metrics - The occupancy rate for Legacy-Huazhu hotels was 81.0% in Q2 2025, down from 82.6% in Q2 2024[10] - Legacy-DH segment achieved an 8.1% year-over-year blended RevPAR increase in Q2 2025, driven by a 5.6 percentage-point increase in occupancy rate[15] - Average daily room rate (ADR) for leased and owned hotels decreased by 2.7% year-over-year to RMB 375[78] - Occupancy rate for leased and owned hotels was 85.6%, down 2.3 percentage points year-over-year[78] - RevPAR for leased and owned hotels declined by 5.3% year-over-year to RMB 321[78] - Same-hotel RevPAR for economy hotels decreased by 8.2% year-over-year to RMB 194[79] - Average daily room rate (ADR) for manachised and franchised hotels increased by 8.7% year-over-year to EUR 112[83] - Occupancy rate for manachised and franchised hotels improved by 7.1 percentage points year-over-year to 63.8%[83] - RevPAR for manachised and franchised hotels rose by 20.8% year-over-year to EUR 72[83] Cash Flow and Dividends - Operating cash inflow in the first half of 2025 was RMB3.2 billion (US$452 million), compared to RMB3.1 billion in the first half of 2024[37] - The company declared a cash dividend of approximately US$250 million for the first half of 2025, equating to US$0.081 per ordinary share[9] - The Board approved a cash dividend of approximately US$250 million for the first half of 2025, equating to US$0.081 per ordinary share[39] - The company has no dividends payable as of June 30, 2025[61] Costs and Expenses - Hotel operating costs in the first half of 2025 were RMB7.4 billion (US$1.0 billion), nearly unchanged from RMB7.3 billion in the first half of 2024[25] - SG&A expenses in the second quarter of 2025 were RMB969 million (US$135 million), a 5.4% year-over-year increase, primarily due to an increase in SBC[25] - Income from operations in the second quarter of 2025 was RMB1.8 billion (US$250 million), reflecting a 13.7% year-over-year increase[28] - Operating margin in the second quarter of 2025 improved to 27.8%, up from 25.6% in the same quarter of 2024[29] - EBITDA (non-GAAP) in the second quarter of 2025 was RMB2.5 billion (US$344 million), compared to RMB1.9 billion in the same quarter of 2024[32] Assets and Liabilities - Total current assets increased from RMB 13,215 million as of December 31, 2024, to RMB 15,668 million as of June 30, 2025[61] - Total liabilities rose from RMB 50,281 million as of December 31, 2024, to RMB 52,486 million as of June 30, 2025[62] - Cash and cash equivalents increased from RMB 7,474 million to RMB 10,145 million during the same period[61] - Operating lease right-of-use assets slightly increased from RMB 24,992 million to RMB 25,073 million[61] - The depreciation and amortization expense for the quarter ended June 30, 2025, was RMB 255 million, slightly lower than RMB 259 million in the previous quarter[70] - The company experienced a foreign exchange loss of RMB 366 million for the quarter ended June 30, 2025, compared to a gain of RMB 12 million in the same quarter of the previous year[68]