Core Viewpoints - In Q1 2025, the company's revenue reached 5.395 billion yuan, a year-on-year increase of 2.2%, with Legacy-Huazhu contributing 4.481 billion yuan, up 5.5% [1] - Adjusted EBITDA for the company was 1.496 billion yuan, a 5.3% increase year-on-year, with Legacy-Huazhu at 1.573 billion yuan, up 5.8% [1] - The company opened 704 new hotels and closed 166, resulting in a net increase of 538 hotels, with a focus on mid-to-high-end segments [1][3] Financial Performance - The adjusted net profit for Q1 2025 was 775 million yuan, reflecting a 0.5% increase year-on-year [1] - The overall revenue growth rate fell within the previously guided range of 0-4%, with management franchise revenue at 2.499 billion yuan, up 21.1% [2] - SG&A expenses for Q1 were 755 million yuan, a decrease of 1.8% year-on-year, with a significant reduction of 11.1% in DH's SG&A expenses [2] Market Trends - The overall occupancy rate, ADR, and RevPAR for Q1 were 76.2%, 272 yuan, and 208 yuan, respectively, showing declines of 1.0 percentage points, 2.6%, and 3.9% year-on-year [2] - The company expects RevPAR to decline in Q2 2025 but anticipates a narrowing of the decline compared to Q1 [2] - The company has 277 million members, with CRS booking proportion increasing by 5.44 percentage points to 65.1% [3] Expansion Strategy - The company accelerated its opening of hotels, with a net increase of 539 hotels in Q1, including 59 mid-to-high-end hotels [3] - The company has completed its "Thousand Cities, Ten Thousand Stores 1.0" plan and is now advancing the 2.0 plan [3] - The current pipeline consists of 2,888 hotels, slightly down from the previous quarter, indicating a higher requirement for brand and product profitability from potential franchisees [3]
华住集团-S(1179.HK)：开店成长性有效对冲周期影响 DH费用进入改善通道