H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“
H
World”, “
the Company”,
“
we” or “
our”), a key player in
the global hotel industry, today announced its unaudited financial
results in the second quarter and the first half ended June 30,
2022.
As of June 30, 2022, H World’s worldwide hotel
network in operation totaled 8,176 hotels and 773,898 rooms,
including 125 hotels from DH. During the second quarter of 2022,
our Legacy-Huazhu business opened 269 hotels, including 5 leased
(or leased-and-operated) hotels and 264 manachised (or
franchised-and-managed) hotels and franchised hotels, and closed a
total of 86 hotels, including 12 leased hotels and 74 manachised
and franchised hotels. During the second quarter of 2022, the
Legacy-DH business opened 5 hotels, including 2 leased hotels and 3
manachised and franchised hotels. As of June 30, 2022, H World had
a total of 2,236 unopened hotels in our pipeline, including 2,199
hotels from the Legacy-Huazhu business and 37 hotels from the
Legacy-DH business.
Legacy-Huazhu Only
– Second Quarter of 2022 Operational
Highlights
As of June 30, 2022, Legacy-Huazhu had
8,051 hotels in operation, including 646 leased and owned hotels,
and 7,405 manachised and franchised hotels. In addition, as of the
same date, Legacy-Huazhu had 748,942 hotel rooms in operation,
including 91,171 rooms under the lease and ownership model, and
657,771 rooms under the manachise and franchise models.
Legacy-Huazhu also had 2,199 unopened hotels in its pipeline,
including 20 leased and owned hotels and 2,179 manachised and
franchised hotels. The following discusses Legacy-Huazhu’s RevPAR,
average daily room rate (“ADR”) and occupancy rate
for its leased and owned hotels, as well as manachised and
franchised hotels (excluding hotels under governmental requisition)
for the periods indicated.
- The ADR was RMB218 in the second quarter of 2022, compared with
RMB255 in the second quarter of 2021, RMB224 in the previous
quarter, and RMB236 in the second quarter of 2019.
- The occupancy rate for all Legacy-Huazhu hotels in operation
was 64.6% in the second quarter of 2022, compared with 82.3% in the
second quarter of 2021, 59.2% in the previous quarter, and 86.9% in
the second quarter of 2019.
- Blended RevPAR was RMB141 in the second quarter of 2022,
compared with RMB210 in the second quarter of 2021, RMB132 in the
previous quarter, and RMB206 in the second quarter of 2019.
- For all Legacy-Huazhu hotels which had been in operation for at
least 18 months, the same-hotel RevPAR was RMB138 in the second
quarter of 2022, representing a 36.2% decrease from RMB217 in the
second quarter of 2021, with a 16.7% decrease in ADR and an
19.9-percentage-point decrease in occupancy rate; comparing the
second quarter of 2022 with the pre-COVID second quarter of 2019,
same-hotel RevPAR represented a 40.4% decrease from RMB217 in the
second quarter of 2019, with a 16.3% decrease in ADR, and a
25.9-percentage-point decrease in occupancy rate.
Legacy-DH Only
– Second Quarter of 2022 Operational
Highlights
As of June 30, 2022, Legacy-DH had 125
hotels in operation, including 79 leased and owned hotels and 46
manachised and franchised hotels. In addition, as of the same date,
Legacy-DH had 24,956 hotel rooms in operation, including
14,939 rooms under the lease and ownership model, and 10,017 rooms
under the manachise and franchise models. Legacy-DH also had
unopened 37 hotels in our pipeline, including 25 leased and owned
hotels and 12 manachised and franchised hotels. The following
discusses Legacy-DH’s RevPAR, ADR and occupancy rate for its leased
as well as manachised and franchised hotels (excluding hotels
temporarily closed) for the periods indicated.
- The ADR was EUR110 in the second quarter of 2022, compared with
EUR82 in the second quarter of 2021 and EUR88 in the previous
quarter.
- The occupancy rate for all Legacy-DH hotels in operation was
59.8% in the second quarter of 2022, compared with 24.4% in the
second quarter of 2021 and 38.0% in the previous quarter.
- Blended RevPAR was EUR66 in the second quarter of 2022,
compared with EUR20 in the second quarter of 2021 and EUR33 in the
previous quarter.
Jin Hui, CEO of H World commented: “During the
second quarter, a large-scale outbreak of the Omicron variant in
China again significantly affected our China business, especially
in April and May due to the extensive lockdowns in various cities.
However, with a gradual lifting of the lockdowns since late May
2022, our RevPAR started to recover and improved to 86% of the 2019
level in June 2022, and further improved to 90% of the 2019 level
in July 2022. Although COVID has been affecting our business from
time to time over the last two-and-a-half years, our long-term
strategy remains intact. In order to further increase our hotel
coverage and penetration rate in China, we need to move our
organization and management closer to the local market. Therefore,
in the second quarter, we established six regional headquarters and
shifted from brand-based to regional-based organizational structure
for our economy and midscale brands. By doing so, we believe we can
become even closer to our local customers, franchisees, and
employees, and create more value for all of them in a more
efficient, agile, and precise manner. Moreover, localized
management and operational capabilities would achieve better
regional synergy and result in higher operational efficiency.
Different from the approach we adopted for the economy and midscale
segments, we are keeping our brand-based organizational structure
unchanged for our upper-midscale and upscale brands due to the
importance of differentiated brand positioning and a unique
customer experience for each of our upper-midscale and upscale
brands. Lastly, as we mentioned before, we will no longer develop
soft brands in the economy segment in the future. We will
accelerate our exit from this particular segment through retiring
our existing hotels in the next one to two years, thereby
continuously enhancing the overall quality of hotels in our
network. It also closely aligns with our long-term ‘Sustainable
Quality Growth’ strategy.”
“In Europe, the DH business further improved in
the second quarter with RevPAR recovering to 93% of the 2019 level.
This upward trend continued in July. However, against the
background of surging inflation in Europe and the resulting
substantial increase in costs as well as uncertainties about the
future development of COVID and energy supplies, a comprehensive
cash flow improvement program remains critical. Therefore, DH’s
near-term focus will remain on efficiency improvements,
renegotiation of further lease waivers, and personnel cost
optimization.”
Second Quarter and Interim of 2022
Unaudited Financial Results
(RMB in millions) |
Q2 2021 |
Q1 2022 |
Q2 2022 |
H1 2021 |
H1 2022 |
Revenue: |
|
|
|
|
|
Leased and owned hotels |
2,282 |
1,642 |
2,361 |
3,680 |
4,003 |
Manachised and franchised hotels |
1,275 |
989 |
945 |
2,172 |
1,934 |
Others |
30 |
50 |
76 |
62 |
126 |
Total revenue |
3,587 |
2,681 |
3,382 |
5,914 |
6,063 |
Revenue in the second quarter
of 2022 was RMB3.4 billion (US$504 million), representing a 5.7%
year-over-year decrease and a 26.1% sequential increase. Revenue
from the Legacy-Huazhu segment in the second quarter of 2022 was
RMB2.5 billion, representing a 26.8% year-over-year decrease and an
8.2% sequential increase. The decrease was mainly due to lockdowns
in several cities in China caused by the wide spread of the Omicron
variant. Revenue from the Legacy-DH segment in the second quarter
of 2022 was RMB921 million, representing a 311.2% year-over-year
increase and a 126.8% sequential increase. The increase was mainly
due to the robust recovery of our European business since Europe’s
opening-up starting from mid-February.
Revenue in the first half of 2022 was RMB6.1
billion (US$906 million), representing an increase of 2.5% from the
first half of 2021. Revenue from Legacy-Huazhu in the first half of
2022 was RMB4.7 billion, representing a 14.5% year-over-year
decrease. Revenue from the Legacy-DH segment in the first half of
2022 was RMB1.3 billion, representing a 252.9% year-over-year
increase.
Revenue from leased and owned
hotels in the second quarter of 2022 was RMB2.4 billion
(US$352 million), representing a 3.5% year-over-year increase and a
43.8% sequential increase. Revenue from leased and owned hotels
from the Legacy-Huazhu segment in the second quarter of 2022 was
RMB1.5 billion, representing a 28.7% year-over-year decrease.
Revenue from leased and owned hotels from the Legacy-DH segment in
the second quarter of 2022 was RMB886 million, representing a
317.9% year-over-year increase.
In the first half of 2022, revenue from our
leased and owned hotels was RMB4.0 billion (US$598 million),
representing an 8.8% year-over-year increase. Revenue from our
Legacy-Huazhu leased and owned hotels in the first half of 2022 was
RMB2.7 billion, representing a 17.8% year-over-year decrease.
Revenue from our Legacy-DH leased and owned hotels in the first
half of 2022 was RMB1.3 billion, representing a 257.7%
year-over-year increase.
Revenue from manachised and franchised
hotels in the second quarter of 2022 was RMB945 million
(US$141 million), representing a 25.9% year-over-year decrease and
a 4.4% sequential decrease. Revenue from our Legacy-Huazhu segment
from manachised and franchised hotels in the second quarter of 2022
was RMB929 million, representing a 26.7% year-over-year decrease.
Revenue from manachised and franchised hotels from the Legacy-DH
segment in the second quarter of 2022 was RMB16 million,
representing a 100.0% year-over-year increase.
In the first half of 2022, revenue from
manachised and franchised hotels was RMB1.9 billion (US$289
million), representing an 11.0% year-over-year decrease. These
hotels accounted for 31.9% of revenue, compared to 36.7% of revenue
in the first half of 2021. Revenue from our Legacy-Huazhu
manachised and franchised hotels in the first half of 2022 was
RMB1.9 billion, representing a 11.8% year-over-year decrease.
Other revenue represents
revenue generated from businesses other than our hotel operations,
which mainly includes revenue from the provision of IT products and
services and Huazhu Mall™ and other revenue from the Legacy-DH
segment business, totaling RMB76 million (US$11 million) in the
second quarter of 2022, compared to RMB30 million in the second
quarter of 2021 and RMB50 million in the previous quarter.
In the first half of 2022, other revenue was
RMB126 million (US$19 million), compared to RMB62 million in the
first half of 2021.
(RMB in millions) |
Q2 2021 |
Q1 2022 |
Q2 2022 |
H1 2021 |
H1 2022 |
Operating costs and expenses: |
|
|
|
|
|
Hotel operating costs |
(2,739 |
) |
(2,813 |
) |
(2,972 |
) |
(5,202 |
) |
(5,785 |
) |
Other operating costs |
(12 |
) |
(11 |
) |
(15 |
) |
(24 |
) |
(26 |
) |
Selling and marketing expenses |
(161 |
) |
(122 |
) |
(142 |
) |
(268 |
) |
(264 |
) |
General and administrative expenses |
(392 |
) |
(462 |
) |
(368 |
) |
(720 |
) |
(830 |
) |
Pre-opening expenses |
(16 |
) |
(26 |
) |
(31 |
) |
(37 |
) |
(57 |
) |
Total operating costs and expenses |
(3,320 |
) |
(3,434 |
) |
(3,528 |
) |
(6,251 |
) |
(6,962 |
) |
Hotel operating costs in the
second quarter of 2022 were RMB3.0 billion (US$443 million),
compared to RMB2.7 billion in the second quarter of 2021 and RMB2.8
billion in the previous quarter. The year-over-year increase was
mainly due to continued hotel network expansion of Legacy-Huazhu,
and business recovery of Legacy-DH. Hotel operating costs from the
Legacy-Huazhu segment in the second quarter of 2022 were RMB2.2
billion, which represented 88.1% of the quarter’s revenue, compared
to RMB2.2 billion or 65.5% of revenue in the second quarter in 2021
and RMB2.3 billion or 99.1% of revenue for the previous quarter.
The sequential decrease was mainly due to our cost control measures
to achieve rental reduction.
In the first half of 2022, hotel operating costs
were RMB5.8 billion (US$864 million), compared to RMB5.2 billion in
2021. Hotel operating costs from Legacy-Huazhu in the first half of
2022 were RMB4.4 billion, which represented 93.4% of revenue,
compared to 76.2% in 2021.
Selling and marketing expenses
in the second quarter of 2022 were RMB142 million (US$21 million),
compared to RMB161 million in the second quarter of 2021 and RMB122
million in the previous quarter. Selling and marketing expenses
from Legacy-Huazhu segment in the second quarter of 2022 were RMB65
million, which represented 2.6% of the quarter’s revenue, compared
to RMB129 million or 3.8% of revenue in the second quarter in 2021,
and RMB78 million or 3.4% of revenue for the previous quarter.
In the first half of 2022, selling and marketing
expenses were RMB264 million (US$40 million), compared to RMB268
million in 2021. Selling and marketing expenses from Legacy-Huazhu
in the first half of 2022 were RMB143 million, which represented
3.0% of revenue, compared to RMB201 million or 3.6% of revenue in
the first half of 2021.
General and administrative
expenses in the second quarter of 2022 were RMB368 million
(US$55 million), compared to RMB392 million in the second quarter
of 2021 and RMB462 million in the previous quarter. General and
administrative expenses from Legacy-Huazhu segment in the second
quarter of 2022 were RMB267 million, which represented 10.8% of the
quarter’s revenue, compared to RMB294 million or 8.7% in the second
quarter in 2021 and RMB346 million or 15.2% for the previous
quarter. The decrease was mainly due to our streamlining
headquarter expenses.
In the first half of 2022, general and
administrative expenses were RMB830 million (US$123 million),
compared to RMB720 million in 2021. General and administrative
expenses from Legacy-Huazhu in the first half of 2022 were RMB613
million, which represented 12.9% of revenue, compared to RMB549
million or 9.9% of revenue in the first half of 2021.
Pre-opening expenses in the
second quarter of 2022 were mostly related to the Legacy-Huazhu
segment and totaled RMB31 million (US$5 million), compared to RMB16
million in the second quarter of 2021 and RMB26 million in the
previous quarter.
Pre-opening expenses in the first half of 2022
were RMB57 million (US$8 million), compared to RMB37 million in
2021. Pre-opening expenses from Legacy-Huazhu as a percentage of
revenue was 1.2% in the first half of 2022, compared to 0.7% in the
first half of 2021.
Other operating income, net in
the second quarter of 2022 was RMB154 million (US$23 million),
compared to RMB362 million in the second quarter of 2021 which
mainly related to governmental subsidies for the Legacy-DH business
and RMB45 million in the previous quarter.
Other operating income, net in the first half of
2022 was RMB199 million (US$29 million), compared to RMB391 million
in 2021.
Income from operations in the
second quarter of 2022 was RMB8 million (US$1 million), compared to
income from operations of RMB629 million in the second quarter of
2021 and a loss from operations of RMB708 million in the previous
quarter. Income from operations from the Legacy-Huazhu segment in
the second quarter of 2022 was RMB21 million, compared to income
from operations from the Legacy-Huazhu segment of RMB763 million in
the second quarter of 2021 and a loss from operations from the
Legacy-Huazhu segment of RMB416 million in the previous quarter.
Loss from operations from the Legacy-DH segment in the second
quarter of 2022 was RMB13 million, compared to RMB134 million in
the second quarter of 2021 and RMB292 million in the previous
quarter.
Loss from operations in the first half of 2022
was RMB700 million (US$104 million), compared to income from
operations of RMB54 million in 2021. Loss from operations from
Legacy-Huazhu in the first half of 2022 was RMB395 million,
compared to income from operations of RMB592 million in 2021. Loss
from operations from Legacy-DH in the first half of 2022 was RMB305
million, compared to RMB538 million in 2021.
Operating margin, defined as
income from operations as a percentage of revenues, in the second
quarter of 2022 was 0.2%, compared with 17.5% in the second quarter
of 2021 and negative 26.4% for the previous quarter. Operating
margin from the Legacy-Huazhu segment in the second quarter of 2022
was 0.9%, compared with 22.7% in the second quarter of 2021 and
negative 18.3% in the previous quarter.
Operating margin in the first half of 2022 was
negative 11.5%. Operating margin from Legacy-Huazhu in the first
half of 2022 was negative 8.3%, compared with 10.7% in 2021.
Other income, net in the second
quarter of 2022 was RMB29 million (US$4 million), compared to other
expense, net of RMB61 million in the second quarter of 2021 and
other income, net of RMB59 million for the previous quarter.
Other income, net in the first half of 2022 was
RMB88 million (US$13 million), compared to RMB201 million in 2021
which was mainly due to gains from selling AccorHotels shares.
Unrealized losses from fair value
changes of equity securities in the second quarter of 2022
were RMB240 million (US$36 million), compared to unrealized losses
from fair value changes of equity securities of RMB58 million in
the second quarter of 2021, and unrealized gains from fair value
changes of RMB54 million in the previous quarter. Unrealized gains
(losses) from fair value changes of equity securities mainly
represent the unrealized gains (losses) from our investment in
equity securities with readily determinable fair values, such as
AccorHotels.
In the first half of 2022, unrealized losses
from fair value changes of equity securities were RMB186 million
(US$28 million), compared to unrealized gains from fair value
changes of equity securities of RMB180 million in 2021.
Income tax benefit in the
second quarter of 2022 was RMB299 million (US$45 million), compared
to income tax expense of RMB132 million in the second quarter of
2021 and income tax benefit of RMB131 million in the previous
quarter. In the first half of 2022, income tax benefit was RMB430
million (US$64 million), compared to income tax expense of RMB10
million in 2021.
Net loss attributable to H World Group
Limited in the second quarter of 2022 was RMB350 million
(US$52 million), compared to net income attributable to H World
Group Limited of RMB378 million in the second quarter of 2021 and a
net loss attributable to H World Group Limited of RMB630 million in
the previous quarter. Net loss attributable to H World Group
Limited from the Legacy-Huazhu segment in the second quarter of
2022 was RMB298 million, compared to net income attributable to H
World Group Limited from the Legacy-Huazhu segment of RMB492
million in the second quarter of 2021 and a net loss attributable
to H World Group Limited from the Legacy-Huazhu segment of RMB307
million in the previous quarter.
Net loss attributable to H World Group Limited
in the first half of 2022 was RMB980 million (US$146 million),
compared with net income attributable to H World Group Limited of
RMB130 million in 2021. Net loss attributable to H World Group
Limited from Legacy-Huazhu in the first half of 2022 was RMB605
million, compared to net income attributable to H World Group
Limited of RMB545 million in 2021.
Basic and diluted losses per
share/American depositary share (ADS). In the second
quarter of 2022, basic and diluted losses per share were RMB0.11
(US$0.02). Adjusted basic and diluted losses per share (non-GAAP),
which excluded share-based compensation expenses and unrealized
gains (losses) from fair value changes of equity securities, were
RMB0.03 (US$0.00). Basic and diluted losses per ADS were RMB1.13
(US$0.17). Adjusted basic and diluted losses per ADS (non-GAAP),
which excluded share-based compensation expenses and unrealized
gains (losses) from fair value changes of equity securities, were
RMB0.27 (US$0.04).
In the first half of 2022, basic and diluted
losses per share were RMB0.31 (US$0.05). Excluding share-based
compensation expenses and unrealized gains (losses) from fair value
changes of equity securities, adjusted basic and diluted losses per
share (non-GAAP) were RMB0.24 (US$0.04). Basic and diluted losses
per ADS were RMB3.15 (US$0.47). Excluding share-based compensation
expenses and unrealized gains (losses) from fair value changes of
equity securities, adjusted basic and diluted losses per ADS
(non-GAAP) were RMB2.40 (US$0.36).
EBITDA (non-GAAP) in the second
quarter of 2022 was negative RMB213 million (US$33 million),
compared with RMB957 million in the second quarter of 2021 and
negative RMB301 million in the previous quarter. EBITDA from the
Legacy-Huazhu segment in the second quarter of 2022 was a negative
RMB243 million, compared with RMB1.0 billion in the second quarter
of 2021 and negative RMB61 million in the previous quarter.
Adjusted EBITDA (non-GAAP), which excluded share-based compensation
expenses and unrealized gains (losses) from fair value changes of
equity securities, in the second quarter of 2022 was RMB53 million
(US$7 million), compared with RMB1.0 billion in the second quarter
of 2021 and negative RMB333 million in the previous quarter. The
adjusted EBITDA from the Legacy-Huazhu segment (non-GAAP) in the
second quarter of 2022 was RMB23 million, compared with RMB1.1
billion in the second quarter of 2021 and negative RMB93 million in
the previous quarter.
EBITDA (non-GAAP) in the first half of 2022 was
negative RMB514 million (US$76 million), compared with RMB1.0
billion in 2021. EBITDA (non-GAAP) from Legacy-Huazhu in the first
half of 2022 was negative RMB304 million, compared with RMB1.4
billion in 2021. Excluding share-based compensation expenses and
unrealized gains (losses) from fair value changes of equity
securities, adjusted EBITDA (non-GAAP) in the first half of 2022
was negative RMB280 million (US$41 million), compared with RMB910
million in 2021. The adjusted EBITDA (non-GAAP) from Legacy-Huazhu
in the first half of 2022 was negative RMB70 million, compared with
RMB1.3 billion in 2021.
Cash flow. Operating cash
inflow in the second quarter of 2022 was RMB989 million (US$147
million). Investing cash inflow in the second quarter of 2022 was
RMB56 million (US$10 million). Financing cash outflow in the second
quarter of 2022 was RMB601 million (US$90 million).
Operating cash inflow in the first half of 2022
was RMB68 million (US$11 million), compared to RMB281 million cash
inflow in 2021. Investing cash outflow in the first half of 2022
was RMB145 million (US$22 million), compared to RMB132 million cash
inflow in 2021. Financing cash outflow in the first half of 2022
was RMB455 million (US$68 million), compared to RMB1.2 billion in
2021.
Cash and cash equivalents and Restricted
cash. As of June 30, 2022, the Company had a total balance
of cash and cash equivalents of RMB4.6 billion (US$693 million) and
restricted cash of RMB38 million (US$6 million).
Debt financing. As of June 30,
2022, the Company had a total debt balance of RMB10.4 billion
(US$1.6 billion) and the unutilized credit facility available to
the Company was RMB3.0 billion. Recently, we have successfully
refinanced our syndication loan with a total amount of EUR340
million.
COVID update For our
Legacy-Huazhu business, the large-scale outbreak of the Omicron
variant in China since early-March 2022 led to extensive lockdowns
in various cities and a sharp decline in the demand for both
business and leisure travel. As a result, our RevPAR in the second
quarter of 2022 only recovered to 69% of the 2019 level. Breaking
down into each month, April and May 2022 were the hardest-hit
months with RevPAR only having reached to 53% and 65% of the 2019
levels, respectively. However, RevPAR improved in June 2022 to 86%
of the 2019 level due to a gradual lift of lockdowns since late May
2022. In addition, if we consider the impact of requisitioned
hotels, our RevPAR recovery in Q2 2022 would have been 75% of the
2019 level.
DH have seen an accelerating RevPAR recovery in
Q2 2022. While RevPAR in March 2022 was 35% lower than the 2019
level, June 2022 RevPAR was only 1% lower than the 2019 level.
However, against the background of surging inflation in Europe and
the resulting substantial increase in costs as well as
uncertainties about the future development of COVID and energy
supplies, DH has been focusing on cash flow improvement measures.
As a result, DH will continue to focus on efficiency improvements,
re-negotiation of lease contracts, and personnel cost
optimization.
Guidance Since March 2022, the
highly infectious Omicron variant has been spreading rapidly in
China which has seriously affected our near-term business
performance. In addition, the current COVID prevention policy has
rendered business performance more unpredictable for the
foreseeable future. Under such circumstances, we will suspend
providing or updating guidance in terms of annual revenue and hotel
openings until the situation improves. Nevertheless, we will
continue to provide quarterly guidance based on our best
understanding of the most recent situation.
In the third quarter of 2022, H World expects
revenue to increase 13% to 17% compared to the third quarter of
2021, or to increase 5% to 9% if excluding DH.
The above forecast reflects the Company’s
current and preliminary view, which is subject to change.
Conference CallH World’s
management will host a conference call at 9 p.m. U.S. Eastern time
on Monday, August 29, 2022, or 9 a.m. Hong Kong time on Tuesday,
August 30, 2022 following the announcement.
To join by phone, all participants must
pre-register for this conference call using the Participant
Registration link of
https://register.vevent.com/register/BI86e44585a1874a5ca083113a1d669ffa.
Upon registration, each participant will receive details for the
conference call, including dial-in numbers, conference call
passcode and a unique access PIN.
A live webcast of the call can be accessed at
https://edge.media-server.com/mmc/p/fvsd2n66 or the Company’s
website at
https://ir.hworld.com/news-and-events/events-calendar.
A replay of the conference call will be
available for twelve months from the date of the conference at the
Company’s website,
https://ir.hworld.com/news-and-events/events-calendar.
Use of Non-GAAP Financial
MeasuresTo supplement the Company’s unaudited consolidated
financial results presented in accordance with U.S.
Generally-Accepted Accounting Principles (“GAAP”),
the Company uses the following non-GAAP measures defined as
non-GAAP financial measures by the U.S. Securities and Exchange
Commission (“SEC”): adjusted net income (loss)
attributable to H World Group Limited excluding share-based
compensation expenses and unrealized gains (losses) from fair value
changes of equity securities; adjusted basic and diluted earnings
(losses) per share/ADS excluding share-based compensation expenses
and unrealized gains (losses) from fair value changes of equity
securities; EBITDA; adjusted EBITDA, adjusted EBITDA from the
Legacy-Huazhu segment and adjusted EBITDA from the Legacy-DH
segment excluding share-based compensation expenses and unrealized
gains (losses) from fair value changes of equity securities. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with U.S. GAAP.
For more information on these non-GAAP financial measures, please
see the table captioned “Unaudited Reconciliations of GAAP and
non-GAAP Results” set forth at the end of this release. The Company
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding Company performance by excluding
share-based compensation expenses and unrealized gains (losses)
from fair value changes of equity securities that may not be
indicative of Company operating performance. The Company believes
that both management and investors benefit from referring to these
non-GAAP financial measures in assessing Company performance and
when planning and forecasting future periods. These non-GAAP
financial measures also facilitate management’s internal
comparisons to the Company’s historical performance. The Company
believes these non-GAAP financial measures are also useful to
investors in allowing for greater transparency with respect to
supplemental information used regularly by Company management in
financial and operational decision-making. A limitation of using
non-GAAP financial measures excluding share-based compensation
expenses and unrealized gains (losses) from fair value changes of
equity securities is that share-based compensation expenses and
unrealized gains (losses) from fair value changes of equity
securities have been and will continue to be significant and
recurring in the Company’s business. Management compensates for
these limitations by providing specific information regarding the
GAAP amounts excluded from each non-GAAP measure. The accompanying
tables have more details on the reconciliations between GAAP
financial measures that are most directly comparable to non-GAAP
financial measures.
The Company believes that EBITDA is a useful
financial metric to assess the operating and financial performance
before the impact of investing and financing transactions and
income taxes, given the significant investments that the Company
has made in leasehold improvements, depreciation and amortization
expense that comprise a significant portion of the Company’s cost
structure. In addition, the Company believes that EBITDA is widely
used by other companies in the lodging industry and may be used by
investors as a measure of financial performance. The Company
believes that EBITDA information provides investors with a useful
tool for comparability between periods because it excludes
depreciation and amortization expense attributable to capital
expenditures. The Company also uses adjusted EBITDA, which is
defined as EBITDA before share-based compensation expenses and
unrealized gains (losses) from fair value changes of equity
securities, to assess operating results of its hotels in operation.
The Company believes that the exclusion of share-based compensation
expenses and unrealized gains (losses) from fair value changes of
equity securities helps facilitate year-on-year comparisons of the
results of operations as the share-based compensation expenses and
unrealized gains (losses) from fair value changes of equity
securities may not be indicative of Company operating
performance.
The Company believes that unrealized gains and
losses from changes in fair value of equity securities are
generally meaningless in understanding the Company’s reported
results or evaluating the economic performance of its businesses.
These gains and losses have caused and will continue to cause
significant volatility in reported periodic earnings.
Therefore, the Company believes adjusted EBITDA
more closely reflects the performance capability of our hotels. The
presentation of EBITDA and adjusted EBITDA should not be construed
as an indication that the Company’s future results will be
unaffected by other charges and gains considered to be outside the
ordinary course of business.
The use of EBITDA and adjusted EBITDA has
certain limitations. Depreciation and amortization expense for
various long-term assets (including land use rights), income tax,
interest expense and interest income have been and will be incurred
and are not reflected in the presentation of EBITDA. Share-based
compensation expenses and unrealized gains (losses) from fair value
changes of equity securities have been and will be incurred and are
not reflected in the presentation of adjusted EBITDA. Each of these
items should also be considered in the overall evaluation of the
results. The Company compensates for these limitations by providing
the relevant disclosure of depreciation and amortization, interest
income, interest expense, income tax expense, share-based
compensation expenses, and unrealized gains (losses) from fair
value changes of equity securities and other relevant items both in
the reconciliations to the U.S. GAAP financial measures and in the
consolidated financial statements, all of which should be
considered when evaluating the performance of the Company.
The terms EBITDA and adjusted EBITDA are not
defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is
a measure of net income, operating income, operating performance or
liquidity presented in accordance with U.S. GAAP. When assessing
the operating and financial performance, investors should not
consider these data in isolation or as a substitute for the
Company’s net income, operating income or any other operating
performance measure that is calculated in accordance with U.S.
GAAP. In addition, the Company’s EBITDA or adjusted EBITDA may not
be comparable to EBITDA or adjusted EBITDA or similarly titled
measures utilized by other companies since such other companies may
not calculate EBITDA or adjusted EBITDA in the same manner as the
Company does.
Reconciliations of the Company’s non-GAAP
financial measures, including EBITDA and adjusted EBITDA, to the
consolidated statement of operations information are included at
the end of this press release.
About H World Group
LimitedOriginated in China, H World Group Limited is a key
player in the global hotel industry. As of June 30, 2022, H
World operated 8,176 hotels with 773,898 rooms in operation in 17
countries. H World’s brands include Hi Inn, Elan Hotel, HanTing
Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel,
Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, Ni Hao
Hotel, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz
in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and
Song Hotels. In addition, H World also has the rights as master
franchisee for Mercure, Ibis and Ibis Styles, and
co-development rights for Grand Mercure and Novotel, in the
pan-China region.
H World’s business includes leased and owned,
manachised and franchised models. Under the lease and ownership
model, H World directly operates hotels typically located on leased
or owned properties. Under the manachise model, H World manages
manachised hotels through the on-site hotel managers that H World
appoints, and H World collects fees from franchisees. Under the
franchise model, H World provides training, reservations and
support services to the franchised hotels, and collects fees from
franchisees but does not appoint on-site hotel managers. H World
applies a consistent standard and platform across all of its
hotels. As of June 30, 2022, H World operates 14 percent of
its hotel rooms under lease and ownership model, and 86 percent
under manachise and franchise models.
For more information, please visit H World’s
website: https://ir.hworld.com
Safe Harbor Statement Under the U.S. Private
Securities Litigation Reform Act of 1995: The information in this
release contains forward-looking statements which involve risks and
uncertainties. Such factors and risks include our anticipated
growth strategies; our future results of operations and financial
condition; economic conditions; the regulatory environment; our
ability to attract and retain customers and leverage our brands;
trends and competition in the lodging industry; the expected growth
of demand for lodging; and other factors and risks detailed in our
filings with the U.S. Securities and Exchange Commission. Any
statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements, which may be
identified by terminology such as “may,” “should,” “will,”
“expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,”
“predict,” “potential,” “forecast,” “project” or “continue,” the
negative of such terms or other comparable terminology. Readers
should not rely on forward-looking statements as predictions of
future events or results.
H World undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by
applicable law.
—Financial Tables and Operational Data
Follow—
H World Group Limited |
Unaudited Condensed Consolidated Balance
Sheets |
|
December 31, 2021 |
|
June 30, 2022 |
|
RMB |
RMB |
|
US$3 |
|
(in millions) |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
5,116 |
|
|
4,642 |
|
|
693 |
|
Restricted cash |
25 |
|
|
38 |
|
|
6 |
|
Short-term investments |
2,589 |
|
|
1,928 |
|
|
288 |
|
Accounts receivable, net |
521 |
|
|
1,177 |
|
|
176 |
|
Loan receivables, net |
218 |
|
|
189 |
|
|
28 |
|
Amounts due from related parties |
149 |
|
|
156 |
|
|
23 |
|
Inventories |
88 |
|
|
88 |
|
|
13 |
|
Income tax receivables |
- |
|
|
256 |
|
|
38 |
|
Other current assets, net |
847 |
|
|
983 |
|
|
147 |
|
Total current assets |
9,553 |
|
|
9,457 |
|
|
1,412 |
|
|
|
|
|
Property and equipment, net |
7,056 |
|
|
6,927 |
|
|
1,034 |
|
Intangible assets, net |
5,385 |
|
|
5,253 |
|
|
784 |
|
Operating lease right-of-use assets |
29,942 |
|
|
28,921 |
|
|
4,318 |
|
Finance lease right-of-use assets |
2,235 |
|
|
2,390 |
|
|
357 |
|
Land use rights, net |
206 |
|
|
202 |
|
|
30 |
|
Long-term investments |
1,965 |
|
|
1,893 |
|
|
283 |
|
Goodwill |
5,132 |
|
|
5,074 |
|
|
758 |
|
Amounts due from related parties, non-current |
1 |
|
|
6 |
|
|
1 |
|
Loan receivables, net |
98 |
|
|
117 |
|
|
17 |
|
Other assets, net |
834 |
|
|
736 |
|
|
110 |
|
Deferred tax assets |
862 |
|
|
845 |
|
|
126 |
|
Total assets |
63,269 |
|
|
61,821 |
|
|
9,230 |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term debt |
6,232 |
|
|
6,707 |
|
|
1,001 |
|
Accounts payable |
968 |
|
|
862 |
|
|
129 |
|
Amounts due to related parties |
197 |
|
|
86 |
|
|
13 |
|
Salary and welfare payables |
591 |
|
|
606 |
|
|
91 |
|
Deferred revenue |
1,366 |
|
|
1,276 |
|
|
190 |
|
Operating lease liabilities, current |
3,628 |
|
|
3,669 |
|
|
548 |
|
Finance lease liabilities, current |
41 |
|
|
42 |
|
|
6 |
|
Accrued expenses and other current liabilities |
1,838 |
|
|
2,288 |
|
|
342 |
|
Income tax payable |
418 |
|
|
13 |
|
|
2 |
|
Total current liabilities |
15,279 |
|
|
15,549 |
|
|
2,322 |
|
|
|
|
|
|
|
Long-term debt |
3,565 |
|
|
3,696 |
|
|
552 |
|
Operating lease liabilities, non-current |
28,012 |
|
|
27,611 |
|
|
4,122 |
|
Finance lease liabilities, non-current |
2,684 |
|
|
2,862 |
|
|
427 |
|
Deferred revenue |
785 |
|
|
779 |
|
|
116 |
|
Other long-term liabilities |
903 |
|
|
943 |
|
|
141 |
|
Deferred tax liabilities |
853 |
|
|
806 |
|
|
120 |
|
Retirement benefit obligations |
144 |
|
|
138 |
|
|
21 |
|
Total liabilities |
52,225 |
|
|
52,384 |
|
|
7,821 |
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
Ordinary shares |
0 |
|
|
0 |
|
|
0 |
|
Treasury shares |
(107 |
) |
|
(441 |
) |
|
(66 |
) |
Additional paid-in capital |
9,964 |
|
|
10,098 |
|
|
1,508 |
|
Retained earnings |
1,037 |
|
|
(359 |
) |
|
(54 |
) |
Accumulated other comprehensive income |
41 |
|
|
63 |
|
|
9 |
|
Total H World Group Limited shareholders' equity |
10,935 |
|
|
9,361 |
|
|
1,397 |
|
Noncontrolling interest |
109 |
|
|
76 |
|
|
12 |
|
Total equity |
11,044 |
|
|
9,437 |
|
|
1,409 |
|
Total liabilities and equity |
63,269 |
|
|
61,821 |
|
|
9,230 |
|
|
|
|
|
|
|
|
|
|
H World Group Limited |
Unaudited Condensed Consolidated Statements of
Comprehensive Income |
|
Quarter Ended |
|
Six Months Ended |
|
June 30, 2021 |
|
March 31, 2022 |
|
June 30, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(in millions, except shares, per share and per ADS
data) |
Revenue: |
|
|
|
|
|
|
|
Leased and owned hotels |
2,282 |
|
|
1,642 |
|
|
2,361 |
|
|
352 |
|
|
3,680 |
|
|
4,003 |
|
|
598 |
|
Manachised and franchised hotels |
1,275 |
|
|
989 |
|
|
945 |
|
|
141 |
|
|
2,172 |
|
|
1,934 |
|
|
289 |
|
Others |
30 |
|
|
50 |
|
|
76 |
|
|
11 |
|
|
62 |
|
|
126 |
|
|
19 |
|
Total revenue |
3,587 |
|
|
2,681 |
|
|
3,382 |
|
|
504 |
|
|
5,914 |
|
|
6,063 |
|
|
906 |
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Hotel operating costs: |
|
|
|
|
|
|
|
Rents |
(949 |
) |
|
(1,026 |
) |
|
(1,012 |
) |
|
(151 |
) |
|
(1,894 |
) |
|
(2,038 |
) |
|
(306 |
) |
Utilities |
(107 |
) |
|
(155 |
) |
|
(123 |
) |
|
(18 |
) |
|
(247 |
) |
|
(278 |
) |
|
(41 |
) |
Personnel costs |
(757 |
) |
|
(838 |
) |
|
(899 |
) |
|
(134 |
) |
|
(1,387 |
) |
|
(1,737 |
) |
|
(259 |
) |
Depreciation and amortization |
(351 |
) |
|
(357 |
) |
|
(355 |
) |
|
(53 |
) |
|
(691 |
) |
|
(712 |
) |
|
(106 |
) |
Consumables, food and beverage |
(244 |
) |
|
(206 |
) |
|
(245 |
) |
|
(37 |
) |
|
(424 |
) |
|
(451 |
) |
|
(67 |
) |
Others |
(331 |
) |
|
(231 |
) |
|
(338 |
) |
|
(50 |
) |
|
(559 |
) |
|
(569 |
) |
|
(85 |
) |
Total hotel operating costs |
(2,739 |
) |
|
(2,813 |
) |
|
(2,972 |
) |
|
(443 |
) |
|
(5,202 |
) |
|
(5,785 |
) |
|
(864 |
) |
Other operating costs |
(12 |
) |
|
(11 |
) |
|
(15 |
) |
|
(2 |
) |
|
(24 |
) |
|
(26 |
) |
|
(4 |
) |
Selling and marketing expenses |
(161 |
) |
|
(122 |
) |
|
(142 |
) |
|
(21 |
) |
|
(268 |
) |
|
(264 |
) |
|
(40 |
) |
General and administrative expenses |
(392 |
) |
|
(462 |
) |
|
(368 |
) |
|
(55 |
) |
|
(720 |
) |
|
(830 |
) |
|
(123 |
) |
Pre-opening expenses |
(16 |
) |
|
(26 |
) |
|
(31 |
) |
|
(5 |
) |
|
(37 |
) |
|
(57 |
) |
|
(8 |
) |
Total operating costs and expenses |
(3,320 |
) |
|
(3,434 |
) |
|
(3,528 |
) |
|
(526 |
) |
|
(6,251 |
) |
|
(6,962 |
) |
|
(1,039 |
) |
Other operating income (expense), net |
362 |
|
|
45 |
|
|
154 |
|
|
23 |
|
|
391 |
|
|
199 |
|
|
29 |
|
Income (losses) from operations |
629 |
|
|
(708 |
) |
|
8 |
|
|
1 |
|
|
54 |
|
|
(700 |
) |
|
(104 |
) |
Interest income |
17 |
|
|
18 |
|
|
19 |
|
|
3 |
|
|
39 |
|
|
37 |
|
|
6 |
|
Interest expense |
(102 |
) |
|
(109 |
) |
|
(90 |
) |
|
(13 |
) |
|
(212 |
) |
|
(199 |
) |
|
(30 |
) |
Other (expense) income, net |
(61 |
) |
|
59 |
|
|
29 |
|
|
4 |
|
|
201 |
|
|
88 |
|
|
13 |
|
Unrealized gains (losses) from fair value changes of equity
securities |
(58 |
) |
|
54 |
|
|
(240 |
) |
|
(36 |
) |
|
180 |
|
|
(186 |
) |
|
(28 |
) |
Foreign exchange (loss) gain |
85 |
|
|
(61 |
) |
|
(402 |
) |
|
(60 |
) |
|
(112 |
) |
|
(463 |
) |
|
(69 |
) |
Income (Loss) before income taxes |
510 |
|
|
(747 |
) |
|
(676 |
) |
|
(101 |
) |
|
150 |
|
|
(1,423 |
) |
|
(212 |
) |
Income tax (expense) benefit |
(132 |
) |
|
131 |
|
|
299 |
|
|
45 |
|
|
(10 |
) |
|
430 |
|
|
64 |
|
Income (Loss) from equity method investments |
(1 |
) |
|
(33 |
) |
|
14 |
|
|
2 |
|
|
(21 |
) |
|
(19 |
) |
|
(3 |
) |
Net income (loss) |
377 |
|
|
(649 |
) |
|
(363 |
) |
|
(54 |
) |
|
119 |
|
|
(1,012 |
) |
|
(151 |
) |
Net (income) loss attributable to noncontrolling interest |
1 |
|
|
19 |
|
|
13 |
|
|
2 |
|
|
11 |
|
|
32 |
|
|
5 |
|
Net income (loss) attributable to H World Group Limited |
378 |
|
|
(630 |
) |
|
(350 |
) |
|
(52 |
) |
|
130 |
|
|
(980 |
) |
|
(146 |
) |
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
Gain arising from defined benefit plan, net of tax |
- |
|
|
- |
|
|
(0 |
) |
|
(0 |
) |
|
- |
|
|
(0 |
) |
|
(0 |
) |
Foreign currency translation adjustments, net of tax |
(23 |
) |
|
(4 |
) |
|
26 |
|
|
4 |
|
|
(78 |
) |
|
22 |
|
|
3 |
|
Comprehensive income (loss) |
354 |
|
|
(653 |
) |
|
(337 |
) |
|
(50 |
) |
|
41 |
|
|
(990 |
) |
|
(148 |
) |
Comprehensive (income) loss attributable to noncontrolling
interest |
1 |
|
|
19 |
|
|
13 |
|
|
2 |
|
|
11 |
|
|
32 |
|
|
5 |
|
Comprehensive income (loss) attributable to H World Group
Limited |
355 |
|
|
(634 |
) |
|
(324 |
) |
|
(48 |
) |
|
52 |
|
|
(958 |
) |
|
(143 |
) |
|
|
|
|
|
|
|
|
Earnings (Losses) per share: |
|
|
|
|
|
|
|
Basic |
0.12 |
|
|
(0.20 |
) |
|
(0.11 |
) |
|
(0.02 |
) |
|
0.04 |
|
|
(0.31 |
) |
|
(0.05 |
) |
Diluted |
0.12 |
|
|
(0.20 |
) |
|
(0.11 |
) |
|
(0.02 |
) |
|
0.04 |
|
|
(0.31 |
) |
|
(0.05 |
) |
|
|
|
|
|
|
|
|
Earnings (Losses) per ADS: |
|
|
|
|
|
|
|
Basic |
1.22 |
|
|
(2.02 |
) |
|
(1.13 |
) |
|
(0.17 |
) |
|
0.42 |
|
|
(3.15 |
) |
|
(0.47 |
) |
Diluted |
1.17 |
|
|
(2.02 |
) |
|
(1.13 |
) |
|
(0.17 |
) |
|
0.41 |
|
|
(3.15 |
) |
|
(0.47 |
) |
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation: |
|
|
|
|
|
Basic |
3,114,135,304 |
|
|
3,118,897,668 |
|
|
3,108,693,946 |
|
|
3,108,693,946 |
|
|
3,111,794,826 |
|
|
3,113,771,581 |
|
|
3,113,771,581 |
|
Diluted |
3,273,978,191 |
|
|
3,118,897,668 |
|
|
3,108,693,946 |
|
|
3,108,693,946 |
|
|
3,166,582,955 |
|
|
3,113,771,581 |
|
|
3,113,771,581 |
|
H World Group Limited |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
Quarter Ended |
|
Six Months Ended |
|
June 30, 2021 |
|
March 31, 2022 |
|
June 30, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
( in millions) |
Operating activities: |
|
|
|
|
|
|
|
Net (loss) income |
377 |
|
|
(649 |
) |
|
(363 |
) |
|
(54 |
) |
|
119 |
|
|
(1,012 |
) |
|
(151 |
) |
Adjustments to reconcile net income to net cash provided by
operating activities: |
Share-based compensation |
28 |
|
|
22 |
|
|
26 |
|
|
4 |
|
|
63 |
|
|
48 |
|
|
7 |
|
Depreciation and amortization, and other |
377 |
|
|
399 |
|
|
374 |
|
|
56 |
|
|
743 |
|
|
773 |
|
|
115 |
|
Impairment loss |
9 |
|
|
- |
|
|
91 |
|
|
14 |
|
|
9 |
|
|
91 |
|
|
14 |
|
Loss (Income) from equity method investments, net of
dividends |
1 |
|
|
80 |
|
|
(14 |
) |
|
(2 |
) |
|
21 |
|
|
66 |
|
|
10 |
|
Investment (income) loss and foreign exchange (gain) loss |
(50 |
) |
|
(57 |
) |
|
531 |
|
|
79 |
|
|
(314 |
) |
|
474 |
|
|
71 |
|
Changes in operating assets and liabilities |
472 |
|
|
(888 |
) |
|
(135 |
) |
|
(20 |
) |
|
(245 |
) |
|
(1,023 |
) |
|
(153 |
) |
Other |
24 |
|
|
172 |
|
|
479 |
|
|
70 |
|
|
(115 |
) |
|
651 |
|
|
98 |
|
Net cash provided by (used in) operating activities |
1,238 |
|
|
(921 |
) |
|
989 |
|
|
147 |
|
|
281 |
|
|
68 |
|
|
11 |
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
Capital expenditures |
(311 |
) |
|
(425 |
) |
|
(143 |
) |
|
(21 |
) |
|
(861 |
) |
|
(568 |
) |
|
(85 |
) |
Acquisitions, net of cash received |
(346 |
) |
|
(56 |
) |
|
(3 |
) |
|
(0 |
) |
|
(346 |
) |
|
(59 |
) |
|
(9 |
) |
Purchase of investments |
(134 |
) |
|
(77 |
) |
|
(0 |
) |
|
(0 |
) |
|
(169 |
) |
|
(77 |
) |
|
(12 |
) |
Proceeds from maturity/sale and return of investments |
174 |
|
|
376 |
|
|
186 |
|
|
28 |
|
|
1,430 |
|
|
562 |
|
|
84 |
|
Loan advances |
(31 |
) |
|
(74 |
) |
|
(49 |
) |
|
(7 |
) |
|
(53 |
) |
|
(123 |
) |
|
(18 |
) |
Loan collections |
45 |
|
|
55 |
|
|
65 |
|
|
10 |
|
|
108 |
|
|
120 |
|
|
18 |
|
Other |
21 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
23 |
|
|
0 |
|
|
0 |
|
Net cash provided by (used in) investing activities |
(582 |
) |
|
(201 |
) |
|
56 |
|
|
10 |
|
|
132 |
|
|
(145 |
) |
|
(22 |
) |
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
Net proceeds from issuance of ordinary shares |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1 |
|
|
- |
|
|
- |
|
Payment of share repurchase |
- |
|
|
(191 |
) |
|
(143 |
) |
|
(21 |
) |
|
- |
|
|
(334 |
) |
|
(50 |
) |
Proceeds from debt |
207 |
|
|
809 |
|
|
283 |
|
|
42 |
|
|
1,726 |
|
|
1,092 |
|
|
163 |
|
Repayment of debt |
(434 |
) |
|
(462 |
) |
|
(313 |
) |
|
(47 |
) |
|
(2,906 |
) |
|
(775 |
) |
|
(116 |
) |
Dividend paid |
- |
|
|
- |
|
|
(416 |
) |
|
(62 |
) |
|
- |
|
|
(416 |
) |
|
(62 |
) |
Other |
42 |
|
|
(10 |
) |
|
(12 |
) |
|
(2 |
) |
|
(6 |
) |
|
(22 |
) |
|
(3 |
) |
Net cash provided by (used in) financing activities |
(185 |
) |
|
146 |
|
|
(601 |
) |
|
(90 |
) |
|
(1,185 |
) |
|
(455 |
) |
|
(68 |
) |
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
(16 |
) |
|
(16 |
) |
|
87 |
|
|
13 |
|
|
(60 |
) |
|
71 |
|
|
10 |
|
Net increase (decrease) in cash, cash equivalents and restricted
cash |
455 |
|
|
(992 |
) |
|
531 |
|
|
80 |
|
|
(832 |
) |
|
(461 |
) |
|
(69 |
) |
Cash, cash equivalents and restricted cash at the beginning of the
period |
5,803 |
|
|
5,141 |
|
|
4,149 |
|
|
619 |
|
|
7,090 |
|
|
5,141 |
|
|
768 |
|
Cash, cash equivalents and restricted cash at the end of the
period |
6,258 |
|
|
4,149 |
|
|
4,680 |
|
|
699 |
|
|
6,258 |
|
|
4,680 |
|
|
699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
H World Group Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended |
|
Six Months Ended |
|
June 30, 2021 |
|
March 31, 2022 |
|
June 30, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(in millions, except shares, per share and per ADS
data) |
Net income (loss) attributable to H World Group Limited (GAAP) |
378 |
|
|
(630 |
) |
|
(350 |
) |
|
(52 |
) |
|
130 |
|
|
(980 |
) |
|
(146 |
) |
Share-based compensation expenses |
28 |
|
|
22 |
|
|
26 |
|
|
4 |
|
|
63 |
|
|
48 |
|
|
7 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
58 |
|
|
(54 |
) |
|
240 |
|
|
36 |
|
|
(180 |
) |
|
186 |
|
|
28 |
|
Adjusted net income (loss) attributable to H World Group Limited
(non-GAAP) |
464 |
|
|
(662 |
) |
|
(84 |
) |
|
(12 |
) |
|
13 |
|
|
(746 |
) |
|
(111 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings (losses) per share (non-GAAP) |
|
|
|
|
|
Basic |
0.15 |
|
|
(0.21 |
) |
|
(0.03 |
) |
|
(0.00 |
) |
|
0.00 |
|
|
(0.24 |
) |
|
(0.04 |
) |
Diluted |
0.14 |
|
|
(0.21 |
) |
|
(0.03 |
) |
|
(0.00 |
) |
|
0.00 |
|
|
(0.24 |
) |
|
(0.04 |
) |
|
|
|
|
|
|
|
|
Adjusted earnings (losses) per ADS (non-GAAP) |
Basic |
1.49 |
|
|
(2.12 |
) |
|
(0.27 |
) |
|
(0.04 |
) |
|
0.05 |
|
|
(2.40 |
) |
|
(0.36 |
) |
Diluted |
1.43 |
|
|
(2.12 |
) |
|
(0.27 |
) |
|
(0.04 |
) |
|
0.04 |
|
|
(2.40 |
) |
|
(0.36 |
) |
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation |
|
|
|
|
|
Basic |
3,114,135,304 |
|
|
3,118,897,668 |
|
|
3,108,693,946 |
|
|
3,108,693,946 |
|
|
3,111,794,826 |
|
|
3,113,771,581 |
|
|
3,113,771,581 |
|
Diluted |
3,273,978,191 |
|
|
3,118,897,668 |
|
|
3,108,693,946 |
|
|
3,108,693,946 |
|
|
3,166,582,955 |
|
|
3,113,771,581 |
|
|
3,113,771,581 |
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
June 30, 2021 |
|
March 31, 2022 |
|
June 30, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(in millions, except per share and per ADS
data) |
Net income (loss) attributable to H World Group Limited
(GAAP) |
378 |
|
|
(630 |
) |
|
(350 |
) |
|
(52 |
) |
|
130 |
|
|
(980 |
) |
|
(146 |
) |
Interest income |
(17 |
) |
|
(18 |
) |
|
(19 |
) |
|
(3 |
) |
|
(39 |
) |
|
(37 |
) |
|
(6 |
) |
Interest expense |
102 |
|
|
109 |
|
|
90 |
|
|
13 |
|
|
212 |
|
|
199 |
|
|
30 |
|
Income tax expense |
132 |
|
|
(131 |
) |
|
(299 |
) |
|
(45 |
) |
|
10 |
|
|
(430 |
) |
|
(64 |
) |
Depreciation and amortization |
362 |
|
|
369 |
|
|
365 |
|
|
54 |
|
|
714 |
|
|
734 |
|
|
110 |
|
EBITDA (non-GAAP) |
957 |
|
|
(301 |
) |
|
(213 |
) |
|
(33 |
) |
|
1,027 |
|
|
(514 |
) |
|
(76 |
) |
Share-based compensation |
28 |
|
|
22 |
|
|
26 |
|
|
4 |
|
|
63 |
|
|
48 |
|
|
7 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
58 |
|
|
(54 |
) |
|
240 |
|
|
36 |
|
|
(180 |
) |
|
186 |
|
|
28 |
|
Adjusted EBITDA (non-GAAP) |
1,043 |
|
|
(333 |
) |
|
53 |
|
|
7 |
|
|
910 |
|
|
(280 |
) |
|
(41 |
) |
H World Group Limited |
Segment Financial
Summary(1) |
|
Quarter Ended June 30, 2021 |
|
Quarter Ended March 31, 2022 |
|
Quarter Ended June 30, 2022 |
|
Legacy-Huazhu |
|
Legacy-DH |
|
Total |
|
Legacy-Huazhu |
|
Legacy-DH |
|
Total |
|
Legacy-Huazhu |
|
Legacy-DH |
|
Total |
|
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
US |
|
(in millions) |
(in millions) |
(in millions) |
Leased and owned hotels |
2,070 |
|
|
212 |
|
|
2,282 |
|
|
1,258 |
|
|
384 |
|
|
1,642 |
|
|
1,475 |
|
|
886 |
|
|
2,361 |
|
|
352 |
|
Manachised and franchised hotels |
1,267 |
|
|
8 |
|
|
1,275 |
|
|
974 |
|
|
15 |
|
|
989 |
|
|
929 |
|
|
16 |
|
|
945 |
|
|
141 |
|
Others |
26 |
|
|
4 |
|
|
30 |
|
|
43 |
|
|
7 |
|
|
50 |
|
|
57 |
|
|
19 |
|
|
76 |
|
|
11 |
|
Revenue |
3,363 |
|
|
224 |
|
|
3,587 |
|
|
2,275 |
|
|
406 |
|
|
2,681 |
|
|
2,461 |
|
|
921 |
|
|
3,382 |
|
|
504 |
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating costs |
(2,202 |
) |
|
(537 |
) |
|
(2,739 |
) |
|
(2,255 |
) |
|
(558 |
) |
|
(2,813 |
) |
|
(2,168 |
) |
|
(804 |
) |
|
(2,972 |
) |
|
(443 |
) |
Selling and marketing expenses |
(129 |
) |
|
(32 |
) |
|
(161 |
) |
|
(78 |
) |
|
(44 |
) |
|
(122 |
) |
|
(65 |
) |
|
(77 |
) |
|
(142 |
) |
|
(21 |
) |
General and administrative expenses |
(294 |
) |
|
(98 |
) |
|
(392 |
) |
|
(346 |
) |
|
(116 |
) |
|
(462 |
) |
|
(267 |
) |
|
(101 |
) |
|
(368 |
) |
|
(55 |
) |
Pre-opening expenses |
(16 |
) |
|
- |
|
|
(16 |
) |
|
(26 |
) |
|
- |
|
|
(26 |
) |
|
(31 |
) |
|
- |
|
|
(31 |
) |
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income (losses) from operations |
763 |
|
|
(134 |
) |
|
629 |
|
|
(416 |
) |
|
(292 |
) |
|
(708 |
) |
|
21 |
|
|
(13 |
) |
|
8 |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to H World Group
Limited |
492 |
|
|
(114 |
) |
|
378 |
|
|
(307 |
) |
|
(323 |
) |
|
(630 |
) |
|
(298 |
) |
|
(52 |
) |
|
(350 |
) |
|
(52 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
(17 |
) |
|
(0 |
) |
|
(17 |
) |
|
(18 |
) |
|
(0 |
) |
|
(18 |
) |
|
(19 |
) |
|
(0 |
) |
|
(19 |
) |
|
(3 |
) |
Interest expense |
73 |
|
|
29 |
|
|
102 |
|
|
77 |
|
|
32 |
|
|
109 |
|
|
57 |
|
|
33 |
|
|
90 |
|
|
13 |
|
Income tax expense |
177 |
|
|
(45 |
) |
|
132 |
|
|
(123 |
) |
|
(8 |
) |
|
(131 |
) |
|
(287 |
) |
|
(12 |
) |
|
(299 |
) |
|
(45 |
) |
Depreciation and amortization |
304 |
|
|
58 |
|
|
362 |
|
|
310 |
|
|
59 |
|
|
369 |
|
|
304 |
|
|
61 |
|
|
365 |
|
|
54 |
|
EBITDA (non-GAAP) |
1,029 |
|
|
(72 |
) |
|
957 |
|
|
(61 |
) |
|
(240 |
) |
|
(301 |
) |
|
(243 |
) |
|
30 |
|
|
(213 |
) |
|
(33 |
) |
Share-based Compensation |
28 |
|
|
- |
|
|
28 |
|
|
22 |
|
|
- |
|
|
22 |
|
|
26 |
|
|
- |
|
|
26 |
|
|
4 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
58 |
|
|
- |
|
|
58 |
|
|
(54 |
) |
|
- |
|
|
(54 |
) |
|
240 |
|
|
- |
|
|
240 |
|
|
36 |
|
Adjusted EBITDA (non-GAAP) |
1,115 |
|
|
(72 |
) |
|
1,043 |
|
|
(93 |
) |
|
(240 |
) |
|
(333 |
) |
|
23 |
|
|
30 |
|
|
53 |
|
|
7 |
|
(1) The Company presents segment information after elimination of
intercompany transactions. |
H World Group Limited |
Segment Financial
Summary(2) |
|
Six Months Ended June 30,
2021 |
|
Six Months Ended June 30, 2022 |
|
Legacy-Huazhu |
|
Legacy-DH |
|
Total |
|
Legacy-Huazhu |
|
Legacy-DH |
|
Total |
|
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
US |
|
(in millions) |
(in millions) |
Leased and owned hotels |
3,325 |
|
|
355 |
|
|
3,680 |
|
|
2,733 |
|
|
1,270 |
|
|
4,003 |
|
|
598 |
|
Manachised and franchised hotels |
2,158 |
|
|
14 |
|
|
2,172 |
|
|
1,903 |
|
|
31 |
|
|
1,934 |
|
|
289 |
|
Others |
55 |
|
|
7 |
|
|
62 |
|
|
100 |
|
|
26 |
|
|
126 |
|
|
19 |
|
Revenue |
5,538 |
|
|
376 |
|
|
5,914 |
|
|
4,736 |
|
|
1,327 |
|
|
6,063 |
|
|
906 |
|
|
|
|
|
|
|
|
|
Hotel operating costs |
(4,220 |
) |
|
(982 |
) |
|
(5,202 |
) |
|
(4,423 |
) |
|
(1,362 |
) |
|
(5,785 |
) |
|
(864 |
) |
Selling and marketing expenses |
(201 |
) |
|
(67 |
) |
|
(268 |
) |
|
(143 |
) |
|
(121 |
) |
|
(264 |
) |
|
(40 |
) |
General and administrative expenses |
(549 |
) |
|
(171 |
) |
|
(720 |
) |
|
(613 |
) |
|
(217 |
) |
|
(830 |
) |
|
(123 |
) |
Pre-opening expenses |
(37 |
) |
|
- |
|
|
(37 |
) |
|
(57 |
) |
|
- |
|
|
(57 |
) |
|
(8 |
) |
|
|
|
|
|
|
|
|
Income (losses) from operations |
592 |
|
|
(538 |
) |
|
54 |
|
|
(395 |
) |
|
(305 |
) |
|
(700 |
) |
|
(104 |
) |
|
|
|
|
|
|
|
|
Net income (loss) attributable to H World Group
Limited |
545 |
|
|
(415 |
) |
|
130 |
|
|
(605 |
) |
|
(375 |
) |
|
(980 |
) |
|
(146 |
) |
|
|
|
|
|
|
|
|
Interest income |
(39 |
) |
|
(0 |
) |
|
(39 |
) |
|
(37 |
) |
|
(0 |
) |
|
(37 |
) |
|
(6 |
) |
Interest expense |
154 |
|
|
58 |
|
|
212 |
|
|
134 |
|
|
65 |
|
|
199 |
|
|
30 |
|
Income tax expense |
183 |
|
|
(173 |
) |
|
10 |
|
|
(410 |
) |
|
(20 |
) |
|
(430 |
) |
|
(64 |
) |
Depreciation and amortization |
596 |
|
|
118 |
|
|
714 |
|
|
614 |
|
|
120 |
|
|
734 |
|
|
110 |
|
EBITDA (non-GAAP) |
1,439 |
|
|
(412 |
) |
|
1,027 |
|
|
(304 |
) |
|
(210 |
) |
|
(514 |
) |
|
(76 |
) |
Share-based Compensation |
63 |
|
|
- |
|
|
63 |
|
|
48 |
|
|
- |
|
|
48 |
|
|
7 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
(180 |
) |
|
- |
|
|
(180 |
) |
|
186 |
|
|
- |
|
|
186 |
|
|
28 |
|
Adjusted EBITDA (non-GAAP) |
1,322 |
|
|
(412 |
) |
|
910 |
|
|
(70 |
) |
|
(210 |
) |
|
(280 |
) |
|
(41 |
) |
(2) The Company presents segment information after elimination of
intercompany transactions. |
Operating Results:
Legacy-Huazhu(1)
|
Number of hotels |
|
Number of rooms |
|
Openedin Q2 2022 |
Closed(2)in Q2
2022 |
Net addedin Q2 2022 |
As ofJune 30,
2022(3) |
|
As ofJune 30, 2022 |
|
|
Leased and owned hotels |
5 |
(12 |
) |
(7 |
) |
646 |
|
91,171 |
Manachised and franchised hotels |
264 |
(74 |
) |
190 |
|
7,405 |
|
657,771 |
Total |
269 |
(86 |
) |
183 |
|
8,051 |
|
748,942 |
(1) Legacy-Huazhu refers to H World and its subsidiaries,
excluding DH.(2) The reasons for hotel closures mainly
included non-compliance with our brand standards, operating losses,
and property-related issues. In Q2 2022, we temporarily closed 7
hotels for brand upgrade and business model change
purposes.(3) As of June 30, 2022, 645 hotels were
requisitioned by governmental authorities. |
|
As of June 30, 2022 |
|
Number of hotels |
Unopened hotels in pipeline |
Economy hotels |
4,859 |
974 |
Leased and owned hotels |
381 |
1 |
Manachised and franchised hotels |
4,478 |
973 |
Midscale and upscale hotels |
3,192 |
1,225 |
Leased and owned hotels |
265 |
19 |
Manachised and franchised hotels |
2,927 |
1,206 |
Total |
8,051 |
2,199 |
|
|
|
Operational hotels excluding hotels under
requisition(4) |
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
yoy |
|
2021 |
2022 |
2022 |
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
311 |
|
263 |
|
243 |
|
-21.7% |
|
Manachised and franchised hotels |
246 |
|
218 |
|
215 |
|
-12.8% |
|
Blended |
255 |
|
224 |
|
218 |
|
-14.5% |
|
Occupancy Rate (as a percentage) |
|
|
|
Leased and owned hotels |
81.1% |
|
56.7% |
|
62.9% |
|
-18.1p.p. |
|
Manachised and franchised hotels |
82.5% |
|
59.6% |
|
64.9% |
|
-17.6p.p. |
|
Blended |
82.3% |
|
59.2% |
|
64.6% |
|
-17.7p.p. |
|
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
252 |
|
149 |
|
153 |
|
-39.2% |
|
Manachised and franchised hotels |
203 |
|
130 |
|
139 |
|
-31.4% |
|
Blended |
210 |
|
132 |
|
141 |
|
-32.9% |
|
|
For the quarter ended |
|
June 30, |
June 30, |
yoy |
|
2019 |
2022 |
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
281 |
|
243 |
|
-13.5% |
|
Manachised and franchised hotels |
225 |
|
215 |
|
-4.7% |
|
Blended |
236 |
|
218 |
|
-7.8% |
|
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
89.4% |
|
62.9% |
|
-26.5p.p. |
|
Manachised and franchised hotels |
86.3% |
|
64.9% |
|
-21.4p.p. |
|
Blended |
86.9% |
|
64.6% |
|
-22.3p.p. |
|
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
252 |
|
153 |
|
-39.2% |
|
Manachised and franchised hotels |
194 |
|
139 |
|
-28.4% |
|
Blended |
206 |
|
141 |
|
-31.4% |
|
(4) If including hotels under requisition, RevPAR
in Q2 2022 would have been 75% of the 2019 level.
Same-hotel operational data by class |
|
|
|
|
|
|
|
|
Mature hotels in operation for more than 18 months
(excluding hotels under requisition) |
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofJune 30, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
ended June 30, |
change |
ended June 30, |
change |
ended June 30, |
change |
|
2021 |
2022 |
2021 |
2022 |
|
2021 |
2022 |
|
2021 |
|
2022 |
|
(p.p.) |
Economy hotels |
3127 |
3127 |
172 |
112 |
-34.8% |
|
197 |
166 |
-16.0% |
|
87.2% |
|
67.7% |
|
-19.5 |
Leased and owned hotels |
350 |
350 |
193 |
121 |
-37.3% |
|
229 |
177 |
-22.7% |
|
84.3% |
|
68.4% |
|
-15.9 |
Manachised and franchised hotels |
2777 |
2777 |
168 |
110 |
-34.3% |
|
191 |
163 |
-14.6% |
|
87.7% |
|
67.5% |
|
-20.2 |
Midscale and upscale hotels |
1785 |
1785 |
275 |
173 |
-37.2% |
|
335 |
281 |
-16.4% |
|
81.9% |
|
61.5% |
|
-20.4 |
Leased and owned hotels |
203 |
203 |
323 |
190 |
-41.1% |
|
414 |
332 |
-19.8% |
|
78.0% |
|
57.3% |
|
-20.7 |
Manachised and franchised hotels |
1582 |
1582 |
266 |
169 |
-36.3% |
|
322 |
272 |
-15.6% |
|
82.7% |
|
62.3% |
|
-20.3 |
Total |
4912 |
4912 |
217 |
138 |
-36.2% |
|
255 |
213 |
-16.7% |
|
84.9% |
|
65.0% |
|
-19.9 |
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofJune 30, |
For the quarter |
yoy |
For the quarter |
yoy |
For the quarter |
yoy |
|
ended June 30, |
change |
ended June 30, |
change |
ended June 30, |
change |
|
2019 |
2022 |
2019 |
2022 |
|
2019 |
2022 |
|
2019 |
2022 |
(p.p.) |
Economy hotels |
1888 |
1888 |
182 |
110 |
-39.4% |
195 |
164 |
-15.8% |
93.1% |
67.0% |
-26.1 |
Leased and owned hotels |
334 |
334 |
204 |
119 |
-41.8% |
218 |
175 |
-20.0% |
93.6% |
68.1% |
-25.5 |
Manachised and franchised hotels |
1554 |
1554 |
176 |
108 |
-38.7% |
189 |
161 |
-14.5% |
93.0% |
66.7% |
-26.3 |
Midscale and upscale hotels |
773 |
773 |
283 |
165 |
-41.5% |
333 |
279 |
-16.3% |
84.8% |
59.3% |
-25.5 |
Leased and owned hotels |
155 |
155 |
348 |
170 |
-51.0% |
401 |
312 |
-22.3% |
86.6% |
54.7% |
-31.9 |
Manachised and franchised hotels |
618 |
618 |
261 |
164 |
-37.3% |
310 |
269 |
-13.2% |
84.2% |
60.8% |
-23.4 |
Total |
2661 |
2661 |
217 |
129 |
-40.4% |
240 |
201 |
-16.3% |
90.3% |
64.3% |
-25.9 |
Operating Results:
Legacy-DH(5)
|
Number of hotels |
|
Number of rooms |
|
Unopened hotels in pipeline |
|
Openedin Q2 2022 |
Closedin Q2 2022 |
Net addedin Q2 2022 |
As ofJune
30,2022(6) |
|
As ofJune 30,2022 |
|
As ofJune 30,2022 |
|
Leased hotels |
2 |
- |
2 |
79 |
|
14,939 |
|
25 |
Manachised and franchised hotels |
3 |
- |
3 |
46 |
|
10,017 |
|
12 |
Total |
5 |
- |
5 |
125 |
|
24,956 |
|
37 |
(5) Legacy-DH refers to DH. (6) As of June 30, 2022, a
total of 3 hotels were temporarily closed. 1 hotel was closed for
renovation and 1 hotel was closed due to flood damage.
Additionally, 1 hotel was temporarily closed due to extensive hotel
refurbishment. |
|
For the quarter ended |
|
|
June 30, |
March 31, |
June 30, |
yoy |
|
2021 |
2022 |
2022 |
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
85.2 |
|
90.0 |
|
112.6 |
|
32.2% |
|
Manachised and franchised hotels |
77.9 |
|
85.5 |
|
106.7 |
|
37.0% |
|
Blended |
81.5 |
|
88.0 |
|
110.4 |
|
35.5% |
|
Occupancy rate (as a percentage) |
|
|
|
|
Leased hotels |
20.0% |
|
34.1% |
|
61.2% |
|
+41.2 p.p. |
|
Managed and franchised hotels |
30.8% |
|
44.0% |
|
57.9% |
|
+27.1 p.p. |
|
Blended |
24.4% |
|
38.0% |
|
59.8% |
|
+35.4 p.p. |
|
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
17.0 |
|
30.7 |
|
68.9 |
|
305.3% |
|
Managed and franchised hotels |
24.0 |
|
37.6 |
|
61.8 |
|
157.5% |
|
Blended |
19.8 |
|
33.4 |
|
66.0 |
|
233.3% |
|
Hotel Portfolio by Brand
|
As of June 30, 2022 |
|
Hotels |
Rooms |
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,874 |
384,177 |
985 |
HanTing Hotel |
3,124 |
277,284 |
626 |
Hi Inn |
458 |
24,036 |
120 |
Ni Hao Hotel |
106 |
7,503 |
188 |
Elan Hotel |
952 |
50,910 |
7 |
Ibis Hotel |
219 |
22,734 |
33 |
Zleep Hotels |
15 |
1,710 |
11 |
Midscale hotels |
2,666 |
291,349 |
949 |
Ibis Styles Hotel |
84 |
8,679 |
13 |
Starway Hotel |
557 |
44,683 |
185 |
JI Hotel |
1,515 |
180,847 |
528 |
Orange Hotel |
479 |
52,168 |
215 |
CitiGO Hotel |
31 |
4,972 |
8 |
Upper midscale hotels |
494 |
72,304 |
244 |
Crystal Orange Hotel |
155 |
20,639 |
56 |
Manxin Hotel |
99 |
9,432 |
52 |
Madison Hotel |
43 |
6,346 |
55 |
Mercure Hotel |
131 |
22,533 |
43 |
Novotel Hotel |
15 |
4,032 |
14 |
IntercityHotel(7) |
51 |
9,322 |
24 |
Upscale hotels |
118 |
20,367 |
51 |
Jaz in the City |
3 |
587 |
1 |
Joya Hotel |
8 |
1,386 |
- |
Blossom House |
39 |
1,888 |
28 |
Grand Mercure Hotel |
7 |
1,485 |
5 |
Steigenberger Hotels & Resorts(8) |
53 |
13,710 |
9 |
MAXX(9) |
8 |
1,311 |
8 |
Luxury hotels |
15 |
2,326 |
2 |
Steigenberger Icon(10) |
9 |
1,847 |
1 |
Song Hotels |
6 |
479 |
1 |
Others |
9 |
3,375 |
5 |
Other hotels(11) |
9 |
3,375 |
5 |
Total |
8,176 |
773,898 |
2,236 |
(7) As of June 30, 2022, 2 operational hotels and 9
pipeline hotels of IntercityHotel were in China.(8) As of June
30, 2022, 11 operational hotels and 2 pipeline hotels of
Steigenberger Hotels & Resorts were in China.(9) As of
June 30, 2022, 2 operational hotels and 8 pipeline hotels of MAXX
were in China.(10) As of June 30, 2022, 3 operational hotels of
Steigenberger Icon were in China.(11) Other hotels include
other partner hotels and other hotel brands in Yongle Huazhu Hotel
& Resort Group (excluding Steigenberger Hotels & Resorts
and Blossom House).
_______________________1 Hotel turnover refers to
total transaction value of room and non-room revenue from H World
hotels (i.e., leased and operated, manachised and franchised
hotels).2 The conversion of Renminbi (“RMB”) into
United States dollars (“US$”) is based on the
exchange rate of US$1.00=RMB6.6981 on June 30, 2022 as set forth in
H.10 statistical release of the U.S. Federal Reserve Board and
available at
http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.3 The
conversion of Renminbi (“RMB”) into United States
dollars (“US$”) is based on the exchange rate of
US$1.00=RMB6.6981 on June 30, 2022 as set forth in H.10 statistical
release of the U.S. Federal Reserve Board and available at
http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
Contact InformationInvestor RelationsTel: +86 (21)
6195 9561Email: ir@hworld.comhttps://ir.hworld.com
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