H World Group Limited Reports Third Quarter of 2024 Unaudited Financial Results

Core Insights - H World Group Limited reported a total of 10,845 hotels and 1,062,546 rooms in operation as of September 30, 2024, with a hotel turnover increase of 10.7% year-over-year to RMB26.0 billion in Q3 2024 [1][2][3] - The company achieved a revenue increase of 2.4% year-over-year to RMB6.4 billion (US$918 million) in Q3 2024, aligning with its previously announced guidance [1][2][9] - Net income attributable to H World Group Limited remained stable at RMB1.3 billion (US$181 million) in Q3 2024, with a notable net loss from the Legacy-DH segment due to restructuring costs [1][2][23] Financial Performance - Revenue from the Legacy-Huazhu segment increased by 1.0% year-over-year to RMB5.2 billion, while the Legacy-DH segment saw an 8.9% increase to RMB1.3 billion [1][10][11] - EBITDA (non-GAAP) for Q3 2024 was RMB2.0 billion (US$286 million), a decrease from RMB2.1 billion in Q3 2023 [1][24] - Adjusted EBITDA (non-GAAP) was RMB2.1 billion (US$300 million) in Q3 2024, down from RMB2.3 billion in Q3 2023 [1][25] Operational Highlights - The Legacy-Huazhu segment opened 774 hotels in Q3 2024, while closing 217 hotels, resulting in a total of 2,899 unopened hotels in the pipeline [3][4] - The average daily rate (ADR) for Legacy-Huazhu hotels was RMB301, down from RMB324 in Q3 2023, with an occupancy rate of 84.9% [5][6] - Legacy-DH hotels reported an ADR of EUR117, with an occupancy rate of 69.8% in Q3 2024 [8] Guidance and Future Outlook - For Q4 2024, H World expects revenue growth in the range of 1%-5% compared to Q4 2023, also excluding the Legacy-DH segment [1][29] - The company aims to continue expanding its presence in lower-tier cities in China and focus on sustainable high-quality growth [9]