Financial Data and Key Metrics Changes - The overall revenue for the group increased by 2.2% year over year to RMB 5.4 billion [21] - Adjusted EBITDA grew by 5.3% year over year to RMB 1.5 billion [24] - The number of rooms increased by 20% year over year to over 1.1 million [21] Business Line Data and Key Metrics Changes - Revenue from Lexi Huazhu grew by 5.5% year over year, while DH revenue decreased by 11.3% year over year due to the transformation of leased hotels to franchised hotels [22] - Managed and franchised business revenue grew by 21.1% year over year, driven by strong network expansion [22] - The number of upper midscale hotels in operation increased by 36% year over year to 933 [13] Market Data and Key Metrics Changes - RevPAR declined by 3.9% year over year, with ADR decreasing by 2.6% year over year and occupancy rate declining by one percentage point [7] - RevPAR for legacy DH improved by 12.7% to €65, with ADR improving by 2.8% and occupancy increasing by 5.3 percentage points [17] Company Strategy and Development Direction - The company is focusing on differentiated strategies for products and services to capture rising leisure demand, particularly from emerging travelers [10] - The company aims to maintain a strong growth momentum in the upper midscale segment and is continuously upgrading products to meet evolving customer demands [13] - The company is pursuing an asset-light strategy, with 46% of its hotels being managed or franchised [18] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about potential future volatilities and uncertainties due to tariff issues affecting market outlook [8] - Despite challenges in business travel demand, management believes the leisure travel demand remains strong and is optimistic about future growth [8][29] - For the second quarter, management expects RevPAR to decline at a low single digit but to narrow on a sequential basis [29] Other Important Information - The company opened 695 hotels and closed 155 hotels in the first quarter, with a pipeline of 2,865 hotels [11] - The member base increased to nearly 280 million, with room nights generated through the central reservation system accounting for 65.1% [15] Q&A Session Summary Question: Expectations on RevPAR for Q2 2025 and full year 2025 - Management expects RevPAR to decline at a low single digit for Q2 but aims to stabilize it over time, with uncertainties affecting the full year guidance [29] Question: Specific reasons behind the weakness in business travel - Management attributes the weakness in business travel to supply issues rather than demand, citing an oversupply in the market [30] Question: Further plans on the DH strategy to improve profitability - Management is focused on asset-light transactions and reducing overhead costs to improve profitability in the DH segment [34] Question: Evaluation of the competition landscape in limited service - Management acknowledges the pressure on RevPAR due to oversupply but emphasizes efforts to improve operational efficiency and support franchisees [36] Question: SG&A costs and one-off restructuring costs - Management confirms that restructuring is ongoing and that SG&A costs are not yet fully normalized, with some effects still to be seen [42] Question: Gap between blended RevPAR and like-for-like RevPAR - Management explains the gap is due to product upgrades and pressures from supply surges, with efforts underway to optimize revenue management [47]

Core Insights - H World Group Limited reported strong growth and continued momentum in its asset-light transformation and brand loyalty in the first quarter of 2025 [1] Group 1: Hotel Openings and Operations - H World Group achieved 538 net hotel openings in Q1 2025, bringing the total number of hotels in operation to 11,685 [2] - The total number of rooms worldwide reached 1,142,158, reflecting a 20% increase year-over-year [2] - The company operates in 1,394 cities across China, with plans to expand to 2,000 cities in the future [2] - As of March 31, H World had a pipeline of 2,888 hotels [2] Group 2: Asset-Light Strategy - Revenue from manachised and franchised hotels increased by 21% year-over-year to RMB 2.5 billion (approximately US$344 million) [3] - The manachise model combines the scalability of franchising with operational control, facilitating efficient and brand-consistent growth [3] Group 3: Loyalty and Direct Bookings - H Rewards membership reached 277 million, making it one of the largest loyalty platforms in the global hospitality industry [4] - Direct bookings from members accounted for over 65% of total reservations, a 5.4 percentage point increase year-on-year [4] Group 4: Experience Upgrade Initiatives - The company is advancing product upgrade initiatives to enhance consumer experience across core brands [5] - The upper-midscale segment saw a 36% year-on-year increase in operating hotels and a 22% expansion in the development pipeline [5] Group 5: Future Outlook - The CEO expressed confidence in achieving the full-year target of approximately 2,300 gross hotel openings [6] - The company will continue to focus on high-quality network expansion, brand positioning, service excellence, and strengthening sales capabilities centered around the H Rewards program [6]

Core Viewpoint - Atour Lifestyle Holdings Limited (ATAT) is expected to report strong first-quarter 2025 results, with earnings per share estimated at 32 cents, reflecting a 23.1% increase year-over-year, and revenues projected at approximately $259.1 million, indicating a 27.4% growth from the previous year [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for ATAT's first-quarter earnings per share is 32 cents, up from 26 cents in the same quarter last year [1]. - Revenue expectations are set at nearly $259.1 million, which represents a 27.4% increase compared to the prior-year quarter [2]. Group 2: Factors Influencing Performance - The company's performance is likely to benefit from robust hotel network expansion, strong brand momentum, and growth in its retail business, supported by high franchisee engagement and strategic hotel rollouts [3]. - Disciplined hotel development, strong occupancy trends, and effective revenue management strategies are expected to contribute positively to performance [4]. - The retail segment, particularly the Atour PLANET brand, is anticipated to drive revenue growth, with management projecting at least a 35% year-over-year increase in retail revenues for 2025 [5]. Group 3: Challenges and Risks - Seasonal factors and adverse weather conditions may lead to volatility in RevPAR performance, with a projected year-over-year decline in the mid- to high-single-digit range [6]. - Macroeconomic challenges such as inflation and increased marketing expenditures could negatively impact margins in the first quarter [6]. Group 4: Earnings Prediction Model - The current model does not predict a definitive earnings beat for ATAT, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 3 (Hold) [7][8].

Business Performance - H World Group's Legacy-Huazhu RevPAR decreased by 3.9% year-over-year in Q1 2025, with OCC declining by 1.0 percentage point and ADR decreasing by 2.6%[9] - Legacy-DH RevPAR increased by 12.7% year-over-year in Q1 2025, driven by a 5.3 percentage point increase in OCC and a rise in ADR[30, 31] - Total revenue increased by 2.2% year-over-year to RMB 5395 million in Q1 2025[47] - Adjusted EBITDA reached RMB 1496 million in Q1 2025, a 5.3% increase year-over-year[55] Network Expansion and Product Upgrade - The number of hotels in operation for Legacy-Huazhu increased to 11,564 as of March 31, 2025[14] - The number of hotels in pipeline for Legacy-Huazhu was 2,865 as of March 31, 2025[11, 14] - The company is stepping up the development of upper-midscale segment, with the number of upper-midscale hotels in operation increasing by 74% year-over-year[16, 17] - Hanting 3.5 and above accounted for 71% of Hanting hotels in operation, while JI 4.0 and above accounted for 78% of JI Hotels in operation in Q1 2025[19] - Orange 2.0 and above accounted for 66% of Orange Hotels in operation in Q1 2025[22] Strategic Focus - H World is enhancing its presence in lower-tier cities, with 54% of hotels in pipeline located in Tier-3, 4 and below cities as of March 31, 2025[24] - Direct booking through H World CRS increased by 5.4 percentage points year-over-year to 65.1% in Q1 2025[28] - The company is transforming to an asset-light model, with revenue from manachised & franchised hotels increasing for both Legacy-Huazhu (21.1% YoY) and Legacy-DH (34.8% YoY)[47, 49]

Core Viewpoint - H World Group Limited reported its unaudited financial results for Q1 2025, showing a year-over-year revenue increase of 2.2% to RMB5.4 billion (US$744 million) and a significant net income growth of 35.7% to RMB894 million (US$123 million) [4][21][22]. Financial Performance - Total hotel turnover increased by 14.3% year-over-year to RMB22.5 billion in Q1 2025, with a 15.3% increase excluding Legacy-DH [4]. - Revenue from manachised and franchised hotels rose by 21.1% year-over-year to RMB2.5 billion (US$344 million) [12]. - Revenue from the Legacy-Huazhu segment was RMB4.5 billion, a 5.5% year-over-year increase, while the Legacy-DH segment saw a decline of 11.3% to RMB918 million [4][9]. Operational Highlights - As of March 31, 2025, H World operated 11,685 hotels with 1,142,158 rooms, including 11,564 hotels from Legacy-Huazhu and 121 from Legacy-DH [2][37]. - The company opened 694 hotels in Q1 2025, contributing to a total of 2,888 hotels in the pipeline [2][8]. - The average daily room rate (ADR) for Legacy-Huazhu hotels was RMB272, with an occupancy rate of 76.2% [5][6]. Cost and Expenses - Total operating costs and expenses in Q1 2025 were RMB4.4 billion, reflecting a slight increase of 0.5% year-over-year [14]. - Hotel operating costs were RMB3.6 billion, a 1.1% year-over-year increase, primarily due to a 4.2% increase in Legacy-Huazhu costs [14]. Cash Flow and Debt - Operating cash inflow for Q1 2025 was RMB580 million (US$80 million), while investing cash inflow was RMB757 million (US$103 million) [24]. - As of March 31, 2025, the company had total cash and cash equivalents of RMB8.2 billion (US$1.1 billion) and total debt of RMB5.3 billion (US$726 million) [25][24]. Future Guidance - For Q2 2025, H World expects revenue growth in the range of 1%-5%, or 3%-7% excluding Legacy-DH, with manachised and franchised revenue growth anticipated at 18%-22% [26].

Core Viewpoint - Hyatt Hotels Corporation is expected to benefit from strong leisure-transient demand and unit expansion efforts, while its asset-light business model is advantageous. However, an uncertain macroeconomic environment poses concerns [1]. Growth Catalysts - Hyatt has experienced momentum due to strong quarterly performance, with Revenue Per Available Room (RevPAR) growth and robust development activity [2]. - The company reported a 5.7% increase in RevPAR in Q1 2025, exceeding its full-year guidance, driven by a rebound in business transient and group travel demand. Expectations for RevPAR growth are stronger internationally than in the U.S. [3]. - The World of Hyatt loyalty program has seen over 2 million new members in Q1, totaling approximately 56 million, a 22% year-over-year increase, contributing to stronger direct bookings [4]. - Hyatt's global presence is expanding, with a pipeline of approximately 138,000 rooms, a 7% year-over-year increase, and a net room growth of 10.5% [5]. - The asset-light transformation now accounts for over 80% of earnings, enhancing EBITDA stability and allowing the company to navigate economic volatility [6]. Concerns - Hyatt's shares have declined by 14% this year, compared to a 1.2% decline in the industry, attributed to an uncertain macroeconomic environment [8]. - There are signs of softening customer behavior in short-term leisure and business transient bookings, prompting a revision of RevPAR expectations for the remainder of the year [8]. - In Greater China, RevPAR remained flat year-over-year in Q1 2025, indicating ongoing challenges despite easing travel restrictions [9].

Hotels Snapshot Q1 2025 The sector indicators are compiled quarterly from a detailed and exhaustive study prepared by experts in the Knight Frank Spain office and are based on real data and market trends. www.knightfrank.com/research Spain: the second most tourist-visited country in the world, strengthening its global leadership in 2025 ► The beginning of the year stands out for an investment focused on the Barcelona area, as well as the capital and other coastal regions of Spain, driven by the boom in tour ...

UK Hotel Dashboard Key Hotel trading metrics, quarterly 12th May 2025 LONDON | Key Performance Indicators (% Change versus 2024) | | | | | --- | --- | --- | --- | | Q1-2025 | | Rolling 12 Months April-March 2024/25 | | | Occupancy | | | | | 73.1% | 0.7% | 81.4% | 2.7% | | ADR | | | | | E198 | -2.3% | £243 | -0.3% | | RevPAR | | | | | €145 | -1.3% | E198 | 3.1% | | TRevPAR | | | | | ET96 | -1.1% | €256 | 2.9% | | GOPPAR | | | | | €57 | -8.0% | £107 | 3.3% | | GOP % | | | | | 29% | -2.2% | 42% | 0.2% | Glossa ...

Group 1 - The article introduces Haridian Dorta Salas as a new contributing analyst for Seeking Alpha, encouraging others to share their investment ideas for publication and potential earnings [1] - The focus is on building a profitable and secure long-term portfolio by investing in companies with strong fundamentals, stable growth, and competitive advantages while managing risks [2] - The approach emphasizes diversification, risk management, and leveraging compound interest to maximize investments, highlighting the importance of continuous learning and strategy exploration [2] Group 2 - There is a disclosure stating that the analyst has no current or planned positions in any mentioned companies, ensuring transparency in the analysis [3] - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are being made [4]

Market Overview - The Nasdaq Composite and the Dow Jones Industrial Average have lost 1.03% and 0.52% year-to-date, while the S&P 500 has gained 0.60% [1] - Investor hesitance is attributed to President Trump's announcement of sweeping tariffs on all U.S. trading partners, although a potential truce between the U.S. and China may lead to reduced import duties [1] Economic Indicators - The consumer price index (CPI) rose 0.2% sequentially in April and 2.3% year-over-year, marking the lowest increase since February 2021 [2] - Federal Reserve Chair Jerome Powell indicated that more clarity is needed before considering further interest rate cuts, with analysts expecting no cuts until at least September [2] - Ongoing trade conflicts raise fears of a potential recession, which could negatively impact inflation and key economic indicators [2] Investment Opportunities - In volatile market conditions, dividend-paying stocks are recommended for portfolio diversification [3] - Notable dividend-paying companies include Marriott International (MAR), HNI, Sun Life Financial, ESAB Corporation, and Victory Capital Holdings [3] - Companies that consistently pay dividends indicate a healthy business model, and those that have recently raised dividends show a sound financial structure [3] Company Spotlight: Marriott International - Marriott International is a leading global hospitality company involved in the operation, franchising, and licensing of various lodging properties [4] - The company has a Zacks Rank of 3 (Hold) [4] - On May 9, Marriott declared a dividend of 67 cents per share, with a dividend yield of 0.9% [5] - Over the past five years, Marriott has increased its dividend five times, with a current payout ratio of 26% of earnings [5]