Core Insights - H World Group Limited is celebrating its 20th anniversary in 2025, having evolved from a single hotel brand to a multi-brand hospitality group with over 12,000 hotels across 19 countries [1] - The company will host its inaugural H World Capital Markets Day on October 30, 2025, in Shanghai, China, to outline its future strategic direction [1] Company Overview - As of March 31, 2025, H World operated 11,685 hotels with a total of 1,142,158 hotel rooms in 19 countries [3] - The company's brands include HanTing Hotel, JI Hotel, Orange Hotel, Crystal Orange Hotel, IntercityHotel, Hi Inn, Ni Hao Hotel, Elan Hotel, Zleep Hotels, Starway Hotel, CitiGo, Manxin Hotel, Madison Hotel, MAXX, Blossom House, Joya Hotel, Steigenberger Hotels & Resorts, Jaz in the City, Steigenberger Icon, and Song Hotels [3] - H World holds master franchise rights for Mercure, Ibis, and Ibis Styles, and co-development rights for Grand Mercure and Novotel in the pan-China region [3] Business Model - H World operates under leased and owned, manachised, and franchised models [4] - As of March 31, 2025, 8% of hotel rooms were operated under the lease and ownership model, while 92% were under the manachise and franchise model [4] - The company applies a consistent standard and platform across all its hotels [4]

Core Viewpoint - H World Group Limited has announced significant changes to its board of directors, appointing new members with extensive experience in finance and investment management, which is expected to enhance the company's long-term growth prospects [1][4]. Group 1: Board Appointments - Mr. Justin Martin Leverenz has been appointed as a director of the Board, bringing over 18 years of experience in investment management, including his role as Chief Investment Officer at Invesco Developing Markets Fund [2]. - Ms. Yi Zhang has been appointed as an independent director and chairwoman of the audit committee, with a strong background as Chief Financial Officer at SINA Corporation and experience in auditing for Chinese companies listed in the U.S. [3]. - Ms. Lei Cao has been appointed as a member of the compensation committee, while Ms. Tong Tong Zhao and Mr. Jian Shang will step down from their roles on the Board [1]. Group 2: Company Overview - H World Group Limited operates 11,685 hotels with a total of 1,142,158 hotel rooms across 19 countries as of March 31, 2025 [5]. - The company’s hotel brands include HanTing Hotel, JI Hotel, and Steigenberger Hotels & Resorts, among others, and it holds master franchise rights for several international hotel brands in the pan-China region [5]. - H World employs a mixed business model, with 8% of its hotel rooms operated under lease and ownership, and 92% under manachise and franchise models as of March 31, 2025 [6][7].

Core Viewpoint - H World Group Limited, a significant player in the global hotel industry, is set to release its unaudited financial results for the second quarter and interim of 2025 on August 20, 2025, after trading hours in Hong Kong and before the U.S. market opens [1]. Company Overview - H World Group Limited operates 11,685 hotels with a total of 1,142,158 hotel rooms across 19 countries as of March 31, 2025 [5]. - The company’s hotel brands include HanTing Hotel, JI Hotel, Orange Hotel, Crystal Orange Hotel, IntercityHotel, Hi Inn, Ni Hao Hotel, Elan Hotel, Zleep Hotels, Starway Hotel, CitiGo, Manxin Hotel, Madison Hotel, MAXX, Blossom House, Joya Hotel, Steigenberger Hotels & Resorts, Jaz in the City, Steigenberger Icon, and Song Hotels [5]. - H World holds master franchisee rights for Mercure, Ibis, and Ibis Styles, along with co-development rights for Grand Mercure and Novotel in the pan-China region [5]. Business Model - H World employs a mix of leased and owned, manachised, and franchised models in its operations [6]. - As of March 31, 2025, 8% of H World’s hotel rooms are operated under the lease and ownership model, while 92% are under the manachise and franchise models [6].

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 Insights - H World Group Limited experienced a significant increase in guest numbers during the 2025 May Day holiday, with nearly 6.3 million guests, representing a 30% increase compared to the previous year [1][6] - The overall hotel occupancy rate for H World exceeded 84%, marking a 1% year-on-year increase, with major cities showing strong performance [2][6] - The implementation of China's 240-hour visa-free transit policy contributed to a 75% year-on-year increase in international guest stays, totaling over 43,000 during the holiday [4][6] Domestic Travel Trends - During the five-day holiday, China saw 314 million domestic trips, reflecting a 6.4% year-on-year increase, with total domestic tourism spending reaching 180.27 billion yuan, an 8.0% year-on-year growth [2] - Second-tier cities like Xuzhou, Changchun, and Foshan reported occupancy rates exceeding 90%, indicating robust domestic travel demand beyond major urban centers [3] - Smaller third- and fourth-tier cities also attracted more leisure travelers, with cities such as Bengbu and Liaoyang achieving full occupancy [3] Performance by City - Major cities performed strongly with occupancy rates of 88% in Guangzhou, 87% in Shenzhen, and 85% in Xi'an, representing year-on-year growth of 10%, 14.5%, and 10.4% respectively [2]