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 fourth quarter and full year ended December 31,
2022.
As of December 31, 2022, H World’s worldwide
hotel network in operation totaled 8,543 hotels and 809,478 rooms,
including 132 hotels from DH. During the fourth quarter of 2022,
our Legacy-Huazhu business opened 244 hotels, including 5 leased
and owned hotels and 239 manachised and franchised hotels, and
closed a total of 109 hotels, including 13 leased and owned hotels
and 96 manachised and franchised hotels. During the fourth quarter
of 2022, the Legacy-DH business opened 6 hotels, including 2 leased
hotels and 4 manachised and franchised hotels. As of December 31,
2022, H World had a total of 2,580 unopened hotels in our pipeline,
including 2,544 hotels from the Legacy-Huazhu business and 36
hotels from the Legacy-DH business.
Legacy-Huazhu Only
– Fourth Quarter and Full Year of 2022
Operational Highlights
As of December 31, 2022,
Legacy-Huazhu had 8,411 hotels in operation, including 623
leased and owned hotels, and 7,788 manachised and franchised
hotels. In addition, as of the same date, Legacy-Huazhu had
783,174 hotel rooms in operation, including 89,638 rooms under the
lease and ownership model, and 693,536 rooms under the manachise
and franchise models. Legacy-Huazhu also had 2,544 unopened
hotels in its pipeline, including 14 leased and owned hotels, and
2,530 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 RMB240 in the fourth quarter of 2022, compared with
RMB239 in the fourth quarter of 2021, RMB254 in the previous
quarter, and RMB232 in the fourth quarter of 2019.
- The occupancy rate for all the Legacy-Huazhu hotels in
operation was 66.2% in the fourth quarter of 2022, compared with
68.2% in the fourth quarter of 2021, 76.0% in the previous quarter,
and 82.2% in the fourth quarter of 2019.
- Blended RevPAR was RMB159 in the fourth quarter of 2022,
compared with RMB163 in the fourth quarter of 2021, RMB193 in the
previous quarter, and RMB191 in the fourth quarter of 2019.
- For all the Legacy-Huazhu hotels which had been in operation
for at least 18 months, the same-hotel RevPAR was RMB158 in the
fourth quarter of 2022, representing a 9.2% decrease from RMB174 in
the fourth quarter of 2021, with a 2.0% decrease in ADR and a
5.3-percentage-point decrease in occupancy rate; comparing the
fourth quarter of 2022 with the pre-COVID fourth quarter of 2019,
same-hotel RevPAR represented a 28.0% decrease from RMB209 in the
fourth quarter of 2019, with a 5.8% decrease in ADR, and a
20.4-percentage-point decrease in occupancy rate.
Legacy-DH Only
– Fourth Quarter and Full Year of 2022
Operational Highlights
As of December 31, 2022, Legacy-DH had
132 hotels in operation, including 81 leased and owned hotels and
51 manachised and franchised hotels. In addition, as of the same
date, Legacy-DH had 26,304 hotel rooms in operation, including
15,328 rooms under the lease and ownership model, and 10,976 rooms
under the manachise and franchise models. Legacy-DH also had
unopened 36 hotels in our pipeline, including 26 leased and owned
hotels and 10 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 EUR122 in the fourth quarter of 2022, compared with
EUR94 in the fourth quarter of 2021 and EUR114 in the previous
quarter.
- The occupancy rate for all Legacy-DH hotels in operation was
59.3% in the fourth quarter of 2022, compared with 46.1% in the
fourth quarter of 2021 and 66.1% in the previous quarter.
- Blended RevPAR was EUR72 in the fourth quarter of 2022,
compared with EUR43 in the fourth quarter of 2021 and EUR75 in the
previous quarter.
Jin Hui, CEO of H World commented: “We are very
glad to see the strong resilience that our company has shown over
the past years despite the tremendous difficulties and challenges
brought by COVID. Also, we extend a hearty thanks to our customers,
franchisees, employees and business partners who have helped and
supported us to get through this tough period together. Now
entering the post-COVID era, we will ‘stay the course’ with our
“Sustainable Quality Growth” Strategy comprising three areas of key
strategic focus. Firstly, we will continue the quality expansion of
our hotel network, especially in the less-penetrated areas.
Secondly, we will further develop our midscale and upper-midscale
segments through our multiple-brand strategy. Lastly, we will
further strengthen our operational capabilities to achieve higher
efficiency, and provide better products and services to our
customers as well as franchisees.”
“Moving to our business outside China, we are
also happy to see our Legacy-DH business well on recovery
trajectory. For the year of 2023, margin improvement will still be
a top priority for Legacy-DH. Moreover, loyalty program, direct
sales channel development, as well as further digitalization will
also be our key areas of focus in 2023.”
Fourth Quarter and Full Year of 2022
Unaudited Financial Results
(RMB in millions) |
Q4 2021 |
Q3 2022 |
Q4 2022 |
2021FY |
2022FY |
Revenue: |
|
|
|
|
|
Leased and owned hotels |
2,093 |
2,695 |
2,450 |
8,118 |
9,148 |
Manachised and franchised hotels |
1,103 |
1,313 |
1,158 |
4,404 |
4,405 |
Others |
152 |
85 |
98 |
263 |
309 |
Total revenue |
3,348 |
4,093 |
3,706 |
12,785 |
13,862 |
Revenue in the fourth quarter
of 2022 was RMB3.7 billion (US$537 million), representing a 10.7%
year-over-year increase mainly driven by DH revenue growth and a
9.5% sequential decrease. Revenue from the Legacy-Huazhu segment in
the fourth quarter of 2022 was RMB2.8 billion, representing a 0.7%
year-over-year decrease and a 12.8% sequential decrease. The
decrease of revenue from the Legacy-Huazhu segment was mainly due
to the impact of strict COVID policy. However, revenue from the
Legacy-Huazhu was slightly better than the previously announced
revenue guidance of a 1% to 5% decrease. It was mainly due to the
accelerated recovery of our China business after the Chinese
government had announced its reopening policy in mid-November.
Revenue from the Legacy-DH segment in the fourth quarter of 2022
was RMB949 million, representing a 65.9% year-over-year increase
and a 1.8% 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 for the full year of 2022 was RMB13.9
billion (US$2.0 billion), representing an increase of 8.4% from the
full year of 2021. Revenue from Legacy-Huazhu segment for the full
year of 2022 was RMB10.7 billion, representing a 5.3%
year-over-year decrease. For the full year of 2022, Legacy-Huazhu
waived franchisee’s management fee payment of approximately RMB300
million. Revenue from the Legacy-DH segment for the full year of
2022 was RMB3.2 billion, representing a 108.5% year-over-year
increase.
Revenue from leased and owned
hotels in the fourth quarter of 2022 was RMB2.5 billion
(US$355 million), representing a 17.1% year-over-year increase and
a 9.1% sequential decrease. Revenue from leased and owned hotels
from the Legacy-Huazhu segment in the fourth quarter of 2022 was
RMB1.5 billion, representing a 1.8% year-over-year decrease. It was
mainly due to hotel closures. Revenue from leased and owned hotels
from the Legacy-DH segment in the fourth quarter of 2022 was RMB913
million, representing a 72.9% year-over-year increase.
For the full year of 2022, revenue from leased
and owned hotels was RMB9.1 billion (US$1.3 billion), representing
an increase of 12.7% from the full year of 2021. Revenue from
leased and owned hotels from Legacy-Huazhu segment for the full
year of 2022 was RMB6.1 billion, representing a 9.2% year-over-year
decrease. Revenue from leased and owned hotels from Legacy-DH
segment for the full year of 2022 was RMB3.1 billion, representing
a 113.7% year-over-year increase.
Revenue from manachised and franchised
hotels in the fourth quarter of 2022 was RMB1.2 billion
(US$168 million), representing a 5.0% year-over-year increase and a
11.8% sequential decrease. Revenue from our Legacy-Huazhu segment
from manachised and franchised hotels in the fourth quarter of 2022
was RMB1.1 billion, representing a 5.3% year-over-year increase. It
was mainly driven by network expansion. Revenue from manachised and
franchised hotels from the Legacy-DH segment in the fourth quarter
of 2022 was RMB28 million, representing a 6.7% year-over-year
decrease.
For the full year of 2022, revenue from
manachised and franchised hotels was RMB4.4 billion (US$639
million), representing an increase of 0.0% from the full year of
2021. Revenue from manachised and franchised hotels from
Legacy-Huazhu segment for the full year of 2022 was RMB4.3 billion,
representing a 0.4% year-over-year decrease. Revenue from
manachised and franchised hotels from Legacy-DH segment for the
full year of 2022 was RMB81 million, representing a 30.6%
year-over-year increase.
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, totaling RMB98 million (US$14 million) in the fourth
quarter of 2022, compared to RMB152 million in the fourth quarter
of 2021 and RMB85 million in the previous quarter.
For the full year of 2022, other revenue was
RMB309 million (US$45 million), compared with RMB263 million for
the full year of 2021.
(RMB in millions) |
Q4 2021 |
Q3 2022 |
Q4 2022 |
2021FY |
2022FY |
Operating costs and expenses: |
|
|
|
|
|
Hotel operating costs |
(3,194 |
) |
(3,045 |
) |
(3,430 |
) |
(11,282 |
) |
(12,260 |
) |
Other operating costs |
(19 |
) |
(13 |
) |
(22 |
) |
(58 |
) |
(62 |
) |
Selling and marketing expenses |
(183 |
) |
(181 |
) |
(169 |
) |
(641 |
) |
(613 |
) |
General and administrative expenses |
(438 |
) |
(405 |
) |
(440 |
) |
(1,545 |
) |
(1,675 |
) |
Pre-opening expenses |
(30 |
) |
(25 |
) |
(14 |
) |
(81 |
) |
(95 |
) |
Total operating costs and expenses |
(3,864 |
) |
(3,669 |
) |
(4,075 |
) |
(13,607 |
) |
(14,705 |
) |
Hotel operating costs in the
fourth quarter of 2022 were RMB3.4 billion (US$496 million),
compared to RMB3.2 billion in the fourth quarter of 2021 and RMB3.0
billion in the previous quarter. The year-over-year increase was
mainly due to a RMB195 million impairment loss of Legacy-Huazhu’s
leased and owned hotels and a RMB169 million impairment loss of
Legacy-DH. Hotel operating costs from the Legacy-Huazhu segment in
the fourth quarter of 2022 were RMB2.4 billion, which represented
88.7% of the quarter’s revenue, compared to RMB2.3 billion or 84.0%
of revenue in the fourth quarter in 2021 and RMB2.3 billion or
72.8% of revenue for the previous quarter.
For the full year of 2022, hotel operating costs
were RMB12.3 billion (US$1.8 billion), compared to RMB11.3 billion
in 2021. Hotel operating costs from Legacy-Huazhu segment for the
full year of 2022 were RMB9.2 billion, which represented 86.1% of
revenue, compared to RMB8.8 billion or 78.3% of revenue in 2021. In
full year of 2022, Legacy-Huazhu conducted cost control measures
and achieved rental reductions totaling approximately RMB300
million.
Selling and marketing expenses
in the fourth quarter of 2022 were RMB169 million (US$25 million),
compared to RMB183 million in the fourth quarter of 2021 and RMB181
million in the previous quarter. Selling and marketing expenses
from the Legacy-Huazhu segment in the fourth quarter of 2022 were
RMB88 million, which represented 3.2% of the quarter’s revenue,
compared to RMB129 million or 4.6% of revenue in the fourth quarter
in 2021, and RMB105 million or 3.3% of revenue for the previous
quarter.
For the full year of 2022, selling and marketing
expenses were RMB613 million (US$89 million), compared to RMB641
million in 2021. Selling and marketing expenses from Legacy-Huazhu
segment for the full year of 2022 were RMB336 million, which
represented 3.2% of revenue, compared to RMB460 million or 4.1% of
revenue for the full year of 2021.
General and administrative
expenses in the fourth quarter of 2022 were RMB440 million
(US$64 million), compared to RMB438 million in the fourth quarter
of 2021 and RMB405 million in the previous quarter. General and
administrative expenses from the Legacy-Huazhu segment in the
fourth quarter of 2022 were RMB320 million, which represented 11.6%
of the quarter’s revenue, compared to RMB308 million or 11.1% in
the fourth quarter in 2021 and RMB330 million or 10.4% for the
previous quarter.
For the full year of 2022, general and
administrative expenses were RMB1.7 billion (US$243 million),
compared to RMB1.5 billion in 2021. General and administrative
expenses from Legacy-Huazhu segment for the full year of 2022 were
RMB1.3 billion, which represented 11.8% of revenue, compared to
RMB1.2 billion or 10.3% of revenue for the full year of 2021.
Pre-opening expenses in the
fourth quarter of 2022 were primarily related to the Legacy-Huazhu
segment and totaled RMB14 million (US$2 million), compared to RMB30
million in the fourth quarter of 2021 and RMB25 million in the
previous quarter.
Pre-opening expenses for the full year of 2022
were RMB95 million (US$14 million), compared to RMB81 million in
2021, representing a year-over-year increase of 17.3%. Pre-opening
expenses as a percentage of revenue were 0.7% in 2022, compared to
0.6% in 2021.
Other operating income, net in
the fourth quarter of 2022 was RMB276 million (US$40 million),
compared to RMB555 million in the fourth quarter of 2021 and RMB76
million in the previous quarter.
Other operating income, net for the full year of
2022 was RMB549 million (US$79 million), compared to RMB986 million
in 2021. The year-over-year decrease was mainly attributable to a
decrease in COVID-19 subsidy income in our DH business.
Losses from operations in the
fourth quarter of 2022 was RMB93 million (US$13 million), compared
to income from operations of RMB39 million in the fourth quarter of
2021 and income from operations of RMB500 million in the previous
quarter. Losses from operations from the Legacy-Huazhu segment in
the fourth quarter of 2022 was RMB3 million, compared to income
from operations of RMB60 million in the fourth quarter of 2021 and
RMB449 million in the previous quarter. Losses from operations from
the Legacy-DH segment in the fourth quarter of 2022 were RMB90
million, compared to losses from operations of RMB21 million in the
fourth quarter of 2021 and income from operations of RMB51 million
in the previous quarter.
Losses from operations for the full year of 2022
were RMB294 million (US$43 million). Income from operations from
Legacy-Huazhu segment for the full year of 2022 was RMB51 million,
compared to RMB891 million in 2021.
Operating margin, defined as
income from operations as a percentage of revenues, in the fourth
quarter of 2022 was a negative 2.5%, compared with 1.2% in the
fourth quarter of 2021 and 12.2% for the previous quarter.
Operating margin from the Legacy-Huazhu segment in the fourth
quarter of 2022 was negative 0.1%, compared with 2.2% in the fourth
quarter of 2021 and 14.2% in the previous quarter.
Operating margin for the full year of 2022 was
negative 2.1%. Operating margin from Legacy-Huazhu segment for the
full year of 2022 was 0.5%, compared with 7.9% in 2021.
Other expense, net in the
fourth quarter of 2022 was RMB65 million (US$9 million), compared
to RMB47 million in the fourth quarter of 2021 and RMB14 million
for the previous quarter.
Other income, net for the full year of 2022 was
RMB10 million (US$1 million), compared to RMB157 million in
2021.
Unrealized gains from fair value changes
of equity securities in the fourth quarter of 2022 were
RMB140 million (US$20 million), compared to unrealized losses from
fair value changes of equity securities of RMB217 million in the
fourth quarter of 2021, and unrealized losses from fair value
changes of RMB313 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.
For the full year of 2022, unrealized losses
from fair value changes of equity securities were RMB359 million
(US$52 million), compared to unrealized losses from fair value
changes of equity securities of RMB96 million in 2021.
Income tax expense in the
fourth quarter of 2022 was RMB203 million (US$30 million), compared
to RMB16 million in the fourth quarter of 2021 and RMB434 million
in the previous quarter. For the full year of 2022, income tax
expense was RMB207 million (US$30 million), compared to RMB12
million in 2021.
Net loss attributable to H World Group
Limited in the fourth quarter of 2022 was RMB124 million
(US$19 million), compared to RMB459 million in the fourth quarter
of 2021 and RMB717 million in the previous quarter. Net loss
attributable to H World Group Limited from the Legacy-Huazhu
segment in the fourth quarter of 2022 was RMB84 million, compared
to a net loss attributable to H World Group Limited from the
Legacy-Huazhu segment of RMB419 million in the fourth quarter of
2021 and a net loss attributable to H World Group Limited from the
Legacy-Huazhu segment of RMB731 million in the previous
quarter.
Net loss attributable to H World Group Limited
for the full year of 2022 was RMB1.8 billion (US$264 million),
compared to RMB465 million in 2021.
Basic and diluted losses per
share/American depositary share (ADS). In the fourth
quarter of 2022, basic and diluted losses per share were RMB0.04
(US$0.01). 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 from
basic and diluted losses per share, were RMB0.08 (US$0.01). Basic
and diluted losses per ADS were RMB0.40 (US$0.06). 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 RMB0.82 (US$0.12).
For the full year of 2022, basic and diluted
losses per share were RMB0.59 (US$0.08). Adjusted basic and diluted
losses per share (non-GAAP) were RMB0.44 (US$0.06). Basic and
diluted losses per ADS were RMB5.85 (US$0.85). Adjusted basic and
diluted losses per ADS (non-GAAP) were RMB4.42 (US$0.64).
EBITDA (non-GAAP) in the fourth
quarter of 2022 was RMB529 million (US$76 million), compared with
RMB46 million in the fourth quarter of 2021 and RMB149 million in
the previous quarter. EBITDA from the Legacy-Huazhu segment in the
fourth quarter of 2022 was RMB528 million, compared with a negative
RMB23 million in the fourth quarter of 2021 and RMB55 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 fourth quarter
of 2022 was RMB398 million (US$57 million), compared with RMB278
million in the fourth quarter of 2021 and RMB491 million in the
previous quarter. The adjusted EBITDA from the Legacy-Huazhu
segment (non-GAAP) in the fourth quarter of 2022 was RMB397
million, compared with RMB209 million in the fourth quarter of 2021
and RMB397 million in the previous quarter.
EBITDA (non-GAAP) for the full year of 2022 was
RMB164 million (US$23 million), compared with RMB1.4 billion in
2021. EBITDA from Legacy-Huazhu segment for the full year of 2022
was RMB282 million, compared with RMB1.8 billion in 2021. Excluding
share-based compensation expenses and unrealized gains (losses)
from fair value changes of equity securities, adjusted EBITDA
(non-GAAP) for the full year of 2022 was RMB610 million (US$88
million). The adjusted EBITDA (non-GAAP) from the Legacy-Huazhu
segment for the full year of 2022 was RMB728 million, compared with
RMB2.0 billion in 2021.
Cash flow. Operating cash
inflow in the fourth quarter of 2022 was RMB1.0 billion (US$151
million). Investing cash inflow in the fourth quarter of 2022 was
RMB149 million (US$22 million). Financing cash outflow in the
fourth quarter of 2022 was RMB1.4 billion (US$203 million).
Operating cash inflow for the full year of 2022
was RMB1.6 billion (US$227 million), representing an increase of
16.5% from 2021. Investing cash outflow for the full year of 2022
was RMB522 million (US$76 million), compared to RMB1.4 billion in
2021. Financing cash outflow for the full year of 2022 was RMB1.4
billion (US$201 million), compared to RMB1.8 billion in 2021.
Cash and cash equivalents and Restricted
cash. As of December 31, 2022, the Company had a total
balance of cash and cash equivalents of RMB3.6 billion (US$520
million) and restricted cash of RMB1.5 billion (US$218 million). In
January 2023, we successfully completed a public offering of
approximately US$300 million ADSs. In March 2023, we liquidated all
of the Company’s holdings of Accor’s share for net proceeds to the
Company of approximately EUR300 million.
Debt financing. As of December
31, 2022, the Company had a total debt and net debt balance of
RMB9.9 billion (US$1.4 billion) and RMB4.8 billion, respectively,
and the unutilized credit facility available to the Company was
RMB2.1 billion.
COVID update For our
Legacy-Huazhu business, our RevPAR in the fourth quarter of 2022
recovered to approximately 83% of the 2019 level. The recovery was
accelerated after the Chinese government announced the reopening
policy in mid-November. Breaking RevPAR down by month, our October,
November and December 2022 RevPAR recovered to 74%, 87% and 91% of
their respective 2019 levels.
Legacy-DH experienced a seasonal slowdown of
RevPAR recovery in the fourth quarter of 2022. Blended RevPAR
recovered to 110% of the 2019 levels in the fourth quarter of 2022,
primarily driven by the recovery of Steigenberger hotels in Qatar
and Egypt. Excluding the positive effects of the FIFA World Cup and
the COP27 UN Climate Conference, RevPAR recovered to 100% of the
2019 level. RevPAR recovery continued to be driven primarily by ADR
increases, while occupancy levels still remained below the 2019
level. The gradual alleviation of energy-related risks reduced the
price of energy in Europe. However, inflation continues to increase
our operating costs. We will do our best to tackle the challenges
brought by the rising costs through further ADR increases as well
as an ongoing focus on cost reduction, process optimization and
stringent cash management.
Guidance H World expects to
open around 1,400 hotels and close 600-650 hotels in 2023.
In the first quarter of 2023, H World expects
its revenue growth to be in the range of 61%-65% as compared to the
first quarter of 2022, or in the range of 53%-57% excluding DH.
For the full year of 2023, H World expects its
revenue growth to be in the range of 42%-46% as compared to the
full year of 2022, or to range from 46% to 50% 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, March 27, 2023 (or 9 a.m. Hong Kong time on Tuesday,
March 28, 2023) following the announcement.
To join by phone, all participants must
pre-register this conference call using the Participant
Registration link of
https://register.vevent.com/register/BI1dea8c835421451bbf17968e92f691d6.
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/7kgpb5k3 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-over-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 less significant 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 December 31, 2022,
H World operated 8,543 hotels with 809,478 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 December 31, 2022, H World operates 13 percent of its
hotel rooms under lease and ownership model, and 87 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 |
|
December 31, 2022 |
|
RMB |
|
RMB |
|
US$3 |
|
|
(in millions) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
5,116 |
|
|
3,583 |
|
|
520 |
|
Restricted cash |
25 |
|
|
1,503 |
|
|
218 |
|
Short-term investments |
2,589 |
|
|
1,788 |
|
|
259 |
|
Accounts receivable, net |
521 |
|
|
1,113 |
|
|
161 |
|
Loan receivables, net |
218 |
|
|
134 |
|
|
19 |
|
Amounts due from related parties, current |
149 |
|
|
178 |
|
|
26 |
|
Inventories |
88 |
|
|
70 |
|
|
10 |
|
Other current assets, net |
847 |
|
|
809 |
|
|
117 |
|
Total current assets |
9,553 |
|
|
9,178 |
|
|
1,330 |
|
|
|
|
|
Property and equipment, net |
7,056 |
|
|
6,784 |
|
|
984 |
|
Intangible assets, net |
5,385 |
|
|
5,278 |
|
|
765 |
|
Operating lease right-of-use assets |
29,942 |
|
|
28,970 |
|
|
4,200 |
|
Finance lease right-of-use assets |
2,235 |
|
|
2,047 |
|
|
297 |
|
Land use rights, net |
206 |
|
|
199 |
|
|
29 |
|
Long-term investments |
1,965 |
|
|
1,945 |
|
|
282 |
|
Goodwill |
5,132 |
|
|
5,195 |
|
|
753 |
|
Amounts due from related parties, non-current |
1 |
|
|
6 |
|
|
1 |
|
Loan receivables, net |
98 |
|
|
124 |
|
|
18 |
|
Other assets, net |
834 |
|
|
688 |
|
|
101 |
|
Deferred tax assets |
862 |
|
|
1,093 |
|
|
158 |
|
Total assets |
63,269 |
|
|
61,507 |
|
|
8,918 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
6,232 |
|
|
3,288 |
|
|
477 |
|
Accounts payable |
968 |
|
|
1,171 |
|
|
170 |
|
Amounts due to related parties |
197 |
|
|
71 |
|
|
10 |
|
Salary and welfare payables |
591 |
|
|
657 |
|
|
95 |
|
Deferred revenue |
1,366 |
|
|
1,308 |
|
|
190 |
|
Operating lease liabilities, current |
3,628 |
|
|
3,773 |
|
|
547 |
|
Finance lease liabilities, current |
41 |
|
|
41 |
|
|
6 |
|
Accrued expenses and other current liabilities |
1,838 |
|
|
2,337 |
|
|
339 |
|
Income tax payable |
418 |
|
|
500 |
|
|
72 |
|
Total current liabilities |
15,279 |
|
|
13,146 |
|
|
1,906 |
|
|
|
|
|
Long-term debt |
3,565 |
|
|
6,635 |
|
|
962 |
|
Operating lease liabilities, non-current |
28,012 |
|
|
27,637 |
|
|
4,007 |
|
Finance lease liabilities, non-current |
2,684 |
|
|
2,513 |
|
|
364 |
|
Deferred revenue |
785 |
|
|
828 |
|
|
120 |
|
Other long-term liabilities |
903 |
|
|
977 |
|
|
142 |
|
Deferred tax liabilities |
853 |
|
|
858 |
|
|
124 |
|
Retirement benefit obligations |
144 |
|
|
110 |
|
|
16 |
|
Total liabilities |
52,225 |
|
|
52,704 |
|
|
7,641 |
|
|
|
|
|
Equity: |
|
|
|
Ordinary shares |
0 |
|
|
0 |
|
|
0 |
|
Treasury shares |
(107 |
) |
|
(441 |
) |
|
(64 |
) |
Additional paid-in capital |
9,964 |
|
|
10,138 |
|
|
1,470 |
|
Retained earnings |
1,037 |
|
|
(1,200 |
) |
|
(174 |
) |
Accumulated other comprehensive income |
41 |
|
|
232 |
|
|
34 |
|
Total H World Group Limited shareholders' equity |
10,935 |
|
|
8,729 |
|
|
1,266 |
|
Noncontrolling interest |
109 |
|
|
74 |
|
|
11 |
|
Total equity |
11,044 |
|
|
8,803 |
|
|
1,277 |
|
Total liabilities and equity |
63,269 |
|
|
61,507 |
|
|
8,918 |
|
|
|
|
|
|
|
|
|
|
H World Group Limited |
Unaudited Condensed Consolidated Statements of
Comprehensive Income |
|
Quarter Ended |
|
Year Ended |
|
December31, 2021 |
|
September30, 2022 |
|
December31, 2022 |
|
December31, 2021 |
|
December31, 2022 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
(in millions, except shares, per share and per ADS
data) |
Revenue: |
|
|
|
|
|
|
|
Leased and owned hotels |
2,093 |
|
|
2,695 |
|
|
2,450 |
|
|
355 |
|
|
8,118 |
|
|
9,148 |
|
|
1,326 |
|
Manachised and franchised hotels |
1,103 |
|
|
1,313 |
|
|
1,158 |
|
|
168 |
|
|
4,404 |
|
|
4,405 |
|
|
639 |
|
Others |
152 |
|
|
85 |
|
|
98 |
|
|
14 |
|
|
263 |
|
|
309 |
|
|
45 |
|
Total revenue |
3,348 |
|
|
4,093 |
|
|
3,706 |
|
|
537 |
|
|
12,785 |
|
|
13,862 |
|
|
2,010 |
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Hotel operating costs: |
|
|
|
|
|
|
|
Rents |
(998 |
) |
|
(935 |
) |
|
(956 |
) |
|
(139 |
) |
|
(3,900 |
) |
|
(3,927 |
) |
|
(569 |
) |
Utilities |
(122 |
) |
|
(163 |
) |
|
(162 |
) |
|
(23 |
) |
|
(506 |
) |
|
(603 |
) |
|
(87 |
) |
Personnel costs |
(841 |
) |
|
(964 |
) |
|
(981 |
) |
|
(142 |
) |
|
(3,022 |
) |
|
(3,683 |
) |
|
(534 |
) |
Depreciation and amortization |
(365 |
) |
|
(351 |
) |
|
(351 |
) |
|
(51 |
) |
|
(1,413 |
) |
|
(1,414 |
) |
|
(205 |
) |
Consumables, food and beverage |
(281 |
) |
|
(286 |
) |
|
(289 |
) |
|
(42 |
) |
|
(969 |
) |
|
(1,026 |
) |
|
(149 |
) |
Others |
(587 |
) |
|
(346 |
) |
|
(691 |
) |
|
(99 |
) |
|
(1,472 |
) |
|
(1,607 |
) |
|
(233 |
) |
Total hotel operating costs |
(3,194 |
) |
|
(3,045 |
) |
|
(3,430 |
) |
|
(496 |
) |
|
(11,282 |
) |
|
(12,260 |
) |
|
(1,777 |
) |
Other operating costs |
(19 |
) |
|
(13 |
) |
|
(22 |
) |
|
(3 |
) |
|
(58 |
) |
|
(62 |
) |
|
(9 |
) |
Selling and marketing expenses |
(183 |
) |
|
(181 |
) |
|
(169 |
) |
|
(25 |
) |
|
(641 |
) |
|
(613 |
) |
|
(89 |
) |
General and administrative expenses |
(438 |
) |
|
(405 |
) |
|
(440 |
) |
|
(64 |
) |
|
(1,545 |
) |
|
(1,675 |
) |
|
(243 |
) |
Pre-opening expenses |
(30 |
) |
|
(25 |
) |
|
(14 |
) |
|
(2 |
) |
|
(81 |
) |
|
(95 |
) |
|
(14 |
) |
Total operating costs and expenses |
(3,864 |
) |
|
(3,669 |
) |
|
(4,075 |
) |
|
(590 |
) |
|
(13,607 |
) |
|
(14,705 |
) |
|
(2,132 |
) |
Other operating income (expense), net |
555 |
|
|
76 |
|
|
276 |
|
|
40 |
|
|
986 |
|
|
549 |
|
|
79 |
|
Income (losses) from operations |
39 |
|
|
500 |
|
|
(93 |
) |
|
(13 |
) |
|
164 |
|
|
(294 |
) |
|
(43 |
) |
Interest income |
23 |
|
|
23 |
|
|
27 |
|
|
4 |
|
|
89 |
|
|
87 |
|
|
13 |
|
Interest expense |
(92 |
) |
|
(93 |
) |
|
(117 |
) |
|
(17 |
) |
|
(405 |
) |
|
(409 |
) |
|
(59 |
) |
Other (expense) income, net |
(47 |
) |
|
(14 |
) |
|
(65 |
) |
|
(9 |
) |
|
157 |
|
|
10 |
|
|
1 |
|
Unrealized gains (losses) from fair value changes of equity
securities |
(217 |
) |
|
(313 |
) |
|
140 |
|
|
20 |
|
|
(96 |
) |
|
(359 |
) |
|
(52 |
) |
Foreign exchange (loss) gain |
(112 |
) |
|
(359 |
) |
|
181 |
|
|
26 |
|
|
(317 |
) |
|
(641 |
) |
|
(93 |
) |
Income (loss) before income taxes |
(406 |
) |
|
(256 |
) |
|
73 |
|
|
11 |
|
|
(408 |
) |
|
(1,606 |
) |
|
(233 |
) |
Income tax benefit (expense) |
(16 |
) |
|
(434 |
) |
|
(203 |
) |
|
(30 |
) |
|
(12 |
) |
|
(207 |
) |
|
(30 |
) |
Income (loss) from equity method investments |
(42 |
) |
|
(20 |
) |
|
3 |
|
|
0 |
|
|
(60 |
) |
|
(36 |
) |
|
(5 |
) |
Net income (loss) |
(464 |
) |
|
(710 |
) |
|
(127 |
) |
|
(19 |
) |
|
(480 |
) |
|
(1,849 |
) |
|
(268 |
) |
Net (income) loss attributable to noncontrolling interest |
5 |
|
|
(7 |
) |
|
3 |
|
|
0 |
|
|
15 |
|
|
28 |
|
|
4 |
|
Net income (loss) attributable to H World Group Limited |
(459 |
) |
|
(717 |
) |
|
(124 |
) |
|
(19 |
) |
|
(465 |
) |
|
(1,821 |
) |
|
(264 |
) |
|
|
|
|
|
|
|
|
Gain arising from defined benefit plan, net of tax |
13 |
|
|
- |
|
|
22 |
|
|
3 |
|
|
13 |
|
|
22 |
|
|
3 |
|
Unrealized gains (losses) from fair value changes of debt
securities, net of tax |
- |
|
|
- |
|
|
57 |
|
|
8 |
|
|
- |
|
|
57 |
|
|
8 |
|
Foreign currency translation adjustments, net of tax |
7 |
|
|
7 |
|
|
82 |
|
|
12 |
|
|
(99 |
) |
|
112 |
|
|
16 |
|
Comprehensive income (loss) |
(444 |
) |
|
(703 |
) |
|
34 |
|
|
4 |
|
|
(566 |
) |
|
(1,658 |
) |
|
(241 |
) |
Comprehensive (income) loss attributable to noncontrolling
interest |
5 |
|
|
(7 |
) |
|
3 |
|
|
0 |
|
|
15 |
|
|
28 |
|
|
4 |
|
Comprehensive income (loss) attributable to H World Group
Limited |
(439 |
) |
|
(710 |
) |
|
37 |
|
|
4 |
|
|
(551 |
) |
|
(1,630 |
) |
|
(237 |
) |
|
|
|
|
|
|
|
|
Earnings (losses) per share(1): |
|
|
|
|
|
|
|
Basic |
(0.15 |
) |
|
(0.23 |
) |
|
(0.04 |
) |
|
(0.01 |
) |
|
(0.15 |
) |
|
(0.59 |
) |
|
(0.08 |
) |
Diluted |
(0.15 |
) |
|
(0.23 |
) |
|
(0.04 |
) |
|
(0.01 |
) |
|
(0.15 |
) |
|
(0.59 |
) |
|
(0.08 |
) |
|
|
|
|
|
|
|
|
Earnings (losses) per ADS: |
|
|
|
|
|
|
|
Basic |
(1.47 |
) |
|
(2.31 |
) |
|
(0.40 |
) |
|
(0.06 |
) |
|
(1.49 |
) |
|
(5.85 |
) |
|
(0.85 |
) |
Diluted |
(1.47 |
) |
|
(2.31 |
) |
|
(0.40 |
) |
|
(0.06 |
) |
|
(1.49 |
) |
|
(5.85 |
) |
|
(0.85 |
) |
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation: |
|
|
|
|
|
Basic |
3,117,745,440 |
|
|
3,107,798,883 |
|
|
3,109,528,097 |
|
|
3,109,528,097 |
|
|
3,114,124,244 |
|
|
3,111,196,757 |
|
|
3,111,196,757 |
|
Diluted |
3,117,745,440 |
|
|
3,107,798,883 |
|
|
3,109,528,097 |
|
|
3,109,528,097 |
|
|
3,114,124,244 |
|
|
3,111,196,757 |
|
|
3,111,196,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
H World Group Limited |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
Quarter Ended |
|
Year Ended |
|
December 31, 2021 |
|
September 30, 2022 |
|
December 31, 2022 |
|
December 31,2021 |
|
December 31, 2022 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
(in millions) |
Operating activities: |
|
|
|
|
|
|
|
Net income (loss) |
(464 |
) |
|
(710 |
) |
|
(127 |
) |
|
(19 |
) |
|
(480 |
) |
|
(1,849 |
) |
|
(268 |
) |
Adjustments to reconcile net income to net cash provided by
operating activities: |
Share-based compensation |
15 |
|
|
29 |
|
|
9 |
|
|
1 |
|
|
109 |
|
|
87 |
|
|
13 |
|
Depreciation and amortization,and other |
436 |
|
|
370 |
|
|
369 |
|
|
54 |
|
|
1,563 |
|
|
1,513 |
|
|
219 |
|
Impairment loss |
320 |
|
|
10 |
|
|
390 |
|
|
57 |
|
|
380 |
|
|
491 |
|
|
71 |
|
Loss (income) from equity method investments, net of dividends |
38 |
|
|
22 |
|
|
(3 |
) |
|
(0 |
) |
|
60 |
|
|
85 |
|
|
12 |
|
Investment (income) loss |
245 |
|
|
550 |
|
|
(362 |
) |
|
(53 |
) |
|
67 |
|
|
662 |
|
|
96 |
|
Changes in operating assets andliabilities |
458 |
|
|
182 |
|
|
1,008 |
|
|
146 |
|
|
(92 |
) |
|
166 |
|
|
24 |
|
Other |
(181 |
) |
|
(1 |
) |
|
(242 |
) |
|
(35 |
) |
|
(265 |
) |
|
409 |
|
|
60 |
|
Net cash provided by operating activities |
867 |
|
|
452 |
|
|
1,042 |
|
|
151 |
|
|
1,342 |
|
|
1,564 |
|
|
227 |
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
Capital expenditures |
(469 |
) |
|
(256 |
) |
|
(229 |
) |
|
(33 |
) |
|
(1,675 |
) |
|
(1,053 |
) |
|
(153 |
) |
Acquisitions, net of cash received |
- |
|
|
0 |
|
|
2 |
|
|
0 |
|
|
(742 |
) |
|
(57 |
) |
|
(8 |
) |
Purchase of investments |
(49 |
) |
|
(300 |
) |
|
(23 |
) |
|
(3 |
) |
|
(521 |
) |
|
(401 |
) |
|
(58 |
) |
Proceeds from maturity/sale ofinvestments |
64 |
|
|
6 |
|
|
370 |
|
|
54 |
|
|
1,494 |
|
|
937 |
|
|
136 |
|
Loan advances |
(96 |
) |
|
(29 |
) |
|
(30 |
) |
|
(4 |
) |
|
(181 |
) |
|
(182 |
) |
|
(26 |
) |
Loan collections |
38 |
|
|
52 |
|
|
52 |
|
|
7 |
|
|
187 |
|
|
224 |
|
|
32 |
|
Other |
9 |
|
|
2 |
|
|
7 |
|
|
1 |
|
|
36 |
|
|
10 |
|
|
1 |
|
Net cash provided by (used in) investing activities |
(503 |
) |
|
(525 |
) |
|
149 |
|
|
22 |
|
|
(1,402 |
) |
|
(522 |
) |
|
(76 |
) |
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
Payment of share repurchase |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(0 |
) |
|
(334 |
) |
|
(48 |
) |
Proceeds from debt |
167 |
|
|
3,721 |
|
|
2,288 |
|
|
332 |
|
|
2,383 |
|
|
7,101 |
|
|
1,030 |
|
Repayment of debt |
(768 |
) |
|
(3,336 |
) |
|
(3,670 |
) |
|
(532 |
) |
|
(4,171 |
) |
|
(7,781 |
) |
|
(1,128 |
) |
Dividend paid |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(416 |
) |
|
(60 |
) |
Other |
3 |
|
|
76 |
|
|
(19 |
) |
|
(3 |
) |
|
(13 |
) |
|
36 |
|
|
5 |
|
Net cash provided by (used in) financing activities |
(598 |
) |
|
461 |
|
|
(1,401 |
) |
|
(203 |
) |
|
(1,801 |
) |
|
(1,394 |
) |
|
(201 |
) |
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
(36 |
) |
|
149 |
|
|
79 |
|
|
11 |
|
|
(88 |
) |
|
297 |
|
|
43 |
|
Net increase (decrease) in cash, cash equivalents and restricted
cash |
(270 |
) |
|
537 |
|
|
(131 |
) |
|
(19 |
) |
|
(1,949 |
) |
|
(55 |
) |
|
(7 |
) |
Cash, cash equivalents and restricted cash at the beginning of the
period |
5,411 |
|
|
4,680 |
|
|
5,217 |
|
|
757 |
|
|
7,090 |
|
|
5,141 |
|
|
745 |
|
Cash, cash equivalents and restricted cash at the end of the
period |
5,141 |
|
|
5,217 |
|
|
5,086 |
|
|
738 |
|
|
5,141 |
|
|
5,086 |
|
|
738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
H World Group Limited |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
|
Quarter Ended |
|
Year Ended |
|
December 31, 2021 |
|
September30, 2022 |
|
December 31, 2022 |
|
December31, 2021 |
|
December 31, 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) |
(459 |
) |
|
(717 |
) |
|
(124 |
) |
|
(19 |
) |
|
(465 |
) |
|
(1,821 |
) |
|
(264 |
) |
Share-based compensation expenses |
15 |
|
|
29 |
|
|
9 |
|
|
1 |
|
|
109 |
|
|
87 |
|
|
13 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
217 |
|
|
313 |
|
|
(140 |
) |
|
(20 |
) |
|
96 |
|
|
359 |
|
|
52 |
|
Adjusted net income (loss) attributable to H World Group Limited
(non-GAAP) |
(227 |
) |
|
(375 |
) |
|
(255 |
) |
|
(38 |
) |
|
(260 |
) |
|
(1,375 |
) |
|
(199 |
) |
|
|
|
|
|
|
|
|
Adjusted earnings (losses) per share (non-GAAP)(2) |
|
|
|
|
|
Basic |
(0.07 |
) |
|
(0.12 |
) |
|
(0.08 |
) |
|
(0.01 |
) |
|
(0.08 |
) |
|
(0.44 |
) |
|
(0.06 |
) |
Diluted |
(0.07 |
) |
|
(0.12 |
) |
|
(0.08 |
) |
|
(0.01 |
) |
|
(0.08 |
) |
|
(0.44 |
) |
|
(0.06 |
) |
|
|
|
|
|
|
|
|
Adjusted earnings (losses) per ADS (non-GAAP) |
Basic |
(0.73 |
) |
|
(1.21 |
) |
|
(0.82 |
) |
|
(0.12 |
) |
|
(0.83 |
) |
|
(4.42 |
) |
|
(0.64 |
) |
Diluted |
(0.73 |
) |
|
(1.21 |
) |
|
(0.82 |
) |
|
(0.12 |
) |
|
(0.83 |
) |
|
(4.42 |
) |
|
(0.64 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation |
|
|
|
|
Basic |
3,117,745,440 |
|
|
3,107,798,883 |
|
|
3,109,528,097 |
|
|
3,109,528,097 |
|
|
3,114,124,244 |
|
|
3,111,196,757 |
|
|
3,111,196,757 |
|
Diluted |
3,117,745,440 |
|
|
3,107,798,883 |
|
|
3,109,528,097 |
|
|
3,109,528,097 |
|
|
3,114,124,244 |
|
|
3,111,196,757 |
|
|
3,111,196,757 |
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Year Ended |
|
December 31, 2021 |
|
September 30,2022 |
|
December 31, 2022 |
|
December 31, 2021 |
|
December 31, 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) |
(459 |
) |
|
(717 |
) |
|
(124 |
) |
|
(19 |
) |
|
(465 |
) |
|
(1,821 |
) |
|
(264 |
) |
Interest income |
(23 |
) |
|
(23 |
) |
|
(27 |
) |
|
(4 |
) |
|
(89 |
) |
|
(87 |
) |
|
(13 |
) |
Interest expense |
92 |
|
|
93 |
|
|
117 |
|
|
17 |
|
|
405 |
|
|
409 |
|
|
59 |
|
Income tax expense |
16 |
|
|
434 |
|
|
203 |
|
|
30 |
|
|
12 |
|
|
207 |
|
|
30 |
|
Depreciation and amortization |
420 |
|
|
362 |
|
|
360 |
|
|
52 |
|
|
1,503 |
|
|
1,456 |
|
|
211 |
|
EBITDA (non-GAAP) |
46 |
|
|
149 |
|
|
529 |
|
|
76 |
|
|
1,366 |
|
|
164 |
|
|
23 |
|
Share-based compensation |
15 |
|
|
29 |
|
|
9 |
|
|
1 |
|
|
109 |
|
|
87 |
|
|
13 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
217 |
|
|
313 |
|
|
(140 |
) |
|
(20 |
) |
|
96 |
|
|
359 |
|
|
52 |
|
Adjusted EBITDA (non-GAAP) |
278 |
|
|
491 |
|
|
398 |
|
|
57 |
|
|
1,571 |
|
|
610 |
|
|
88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
H World Group Limited |
Segment Financial
Summary(1) |
|
Quarter Ended December31,
2021 |
|
Quarter Ended September30, 2022 |
|
Quarter Ended December31, 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 |
1,565 |
|
|
528 |
|
|
2,093 |
|
|
1,793 |
|
|
902 |
|
|
2,695 |
|
|
1,537 |
|
|
913 |
|
|
2,450 |
|
|
355 |
|
Manachised and franchised hotels |
1,073 |
|
|
30 |
|
|
1,103 |
|
|
1,291 |
|
|
22 |
|
|
1,313 |
|
|
1,130 |
|
|
28 |
|
|
1,158 |
|
|
168 |
|
Others |
138 |
|
|
14 |
|
|
152 |
|
|
77 |
|
|
8 |
|
|
85 |
|
|
90 |
|
|
8 |
|
|
98 |
|
|
14 |
|
Revenue |
2,776 |
|
|
572 |
|
|
3,348 |
|
|
3,161 |
|
|
932 |
|
|
4,093 |
|
|
2,757 |
|
|
949 |
|
|
3,706 |
|
|
537 |
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating costs |
(2,331 |
) |
|
(863 |
) |
|
(3,194 |
) |
|
(2,301 |
) |
|
(744 |
) |
|
(3,045 |
) |
|
(2,446 |
) |
|
(984 |
) |
|
(3,430 |
) |
|
(496 |
) |
Selling and marketing expenses |
(129 |
) |
|
(54 |
) |
|
(183 |
) |
|
(105 |
) |
|
(76 |
) |
|
(181 |
) |
|
(88 |
) |
|
(81 |
) |
|
(169 |
) |
|
(25 |
) |
General and administrative expenses |
(308 |
) |
|
(130 |
) |
|
(438 |
) |
|
(330 |
) |
|
(75 |
) |
|
(405 |
) |
|
(320 |
) |
|
(120 |
) |
|
(440 |
) |
|
(64 |
) |
Pre-opening expenses |
(30 |
) |
|
(0 |
) |
|
(30 |
) |
|
(25 |
) |
|
- |
|
|
(25 |
) |
|
(14 |
) |
|
(0 |
) |
|
(14 |
) |
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income (losses) from operations |
60 |
|
|
(21 |
) |
|
39 |
|
|
449 |
|
|
51 |
|
|
500 |
|
|
(3 |
) |
|
(90 |
) |
|
(93 |
) |
|
(13 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to H World Group
Limited |
(419 |
) |
|
(40 |
) |
|
(459 |
) |
|
(731 |
) |
|
14 |
|
|
(717 |
) |
|
(84 |
) |
|
(40 |
) |
|
(124 |
) |
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
(23 |
) |
|
(0 |
) |
|
(23 |
) |
|
(23 |
) |
|
(0 |
) |
|
(23 |
) |
|
(27 |
) |
|
(0 |
) |
|
(27 |
) |
|
(4 |
) |
Interest expense |
64 |
|
|
28 |
|
|
92 |
|
|
60 |
|
|
33 |
|
|
93 |
|
|
84 |
|
|
33 |
|
|
117 |
|
|
17 |
|
Income tax expense |
37 |
|
|
(21 |
) |
|
16 |
|
|
446 |
|
|
(12 |
) |
|
434 |
|
|
260 |
|
|
(57 |
) |
|
203 |
|
|
30 |
|
Depreciation and amortization |
318 |
|
|
102 |
|
|
420 |
|
|
303 |
|
|
59 |
|
|
362 |
|
|
295 |
|
|
65 |
|
|
360 |
|
|
52 |
|
EBITDA (non-GAAP) |
(23 |
) |
|
69 |
|
|
46 |
|
|
55 |
|
|
94 |
|
|
149 |
|
|
528 |
|
|
1 |
|
|
529 |
|
|
76 |
|
Share-based Compensation |
15 |
|
|
- |
|
|
15 |
|
|
29 |
|
|
- |
|
|
29 |
|
|
9 |
|
|
- |
|
|
9 |
|
|
1 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
217 |
|
|
- |
|
|
217 |
|
|
313 |
|
|
- |
|
|
313 |
|
|
(140 |
) |
|
- |
|
|
(140 |
) |
|
(20 |
) |
Adjusted EBITDA (non-GAAP) |
209 |
|
|
69 |
|
|
278 |
|
|
397 |
|
|
94 |
|
|
491 |
|
|
397 |
|
|
1 |
|
|
398 |
|
|
57 |
|
(1) The Company presents segment information after elimination of
intercompany transactions. |
H World Group Limited |
Segment Financial
Summary(2) |
|
Year Ended December 31, 2022 |
|
Year Ended December 31, 2021 |
|
LegacyHuazhu |
|
LegacyDH |
|
Total |
|
LegacyHuazhu |
|
LegacyDH |
|
Total |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
(in millions) |
(in millions) |
Leased and owned hotels |
6,062 |
|
|
3,086 |
|
|
9,148 |
|
|
1,326 |
|
|
6,674 |
|
|
1,444 |
|
|
8,118 |
|
Manachised and franchised hotels |
4,324 |
|
|
81 |
|
|
4,405 |
|
|
639 |
|
|
4,342 |
|
|
62 |
|
|
4,404 |
|
Others |
269 |
|
|
40 |
|
|
309 |
|
|
45 |
|
|
231 |
|
|
32 |
|
|
263 |
|
Revenue |
10,655 |
|
|
3,207 |
|
|
13,862 |
|
|
2,010 |
|
|
11,247 |
|
|
1,538 |
|
|
12,785 |
|
|
|
|
|
|
|
|
|
Hotel operating costs |
(9,170 |
) |
|
(3,090 |
) |
|
(12,260 |
) |
|
(1,777 |
) |
|
(8,806 |
) |
|
(2,476 |
) |
|
(11,282 |
) |
Selling and marketing expenses |
(336 |
) |
|
(277 |
) |
|
(613 |
) |
|
(89 |
) |
|
(460 |
) |
|
(181 |
) |
|
(641 |
) |
General and administrative expenses |
(1,262 |
) |
|
(413 |
) |
|
(1,675 |
) |
|
(243 |
) |
|
(1,164 |
) |
|
(381 |
) |
|
(1,545 |
) |
Pre-opening expenses |
(95 |
) |
|
(0 |
) |
|
(95 |
) |
|
(14 |
) |
|
(81 |
) |
|
(0 |
) |
|
(81 |
) |
|
|
|
|
|
|
|
|
Income (losses) from operations |
51 |
|
|
(345 |
) |
|
(294 |
) |
|
(43 |
) |
|
891 |
|
|
(727 |
) |
|
164 |
|
|
|
|
|
|
|
|
|
Net income (losses) attributable to H World Group
Limited |
(1,420 |
) |
|
(401 |
) |
|
(1,821 |
) |
|
(264 |
) |
|
153 |
|
|
(618 |
) |
|
(465 |
) |
|
|
|
|
|
|
|
|
Interest income |
(86 |
) |
|
(1 |
) |
|
(87 |
) |
|
(13 |
) |
|
(88 |
) |
|
(1 |
) |
|
(89 |
) |
Interest expense |
278 |
|
|
131 |
|
|
409 |
|
|
59 |
|
|
291 |
|
|
114 |
|
|
405 |
|
Income tax expense |
298 |
|
|
(91 |
) |
|
207 |
|
|
30 |
|
|
249 |
|
|
(237 |
) |
|
12 |
|
Depreciation and amortization |
1,212 |
|
|
244 |
|
|
1,456 |
|
|
211 |
|
|
1,222 |
|
|
281 |
|
|
1,503 |
|
EBITDA (non-GAAP) |
282 |
|
|
(118 |
) |
|
164 |
|
|
23 |
|
|
1,827 |
|
|
(461 |
) |
|
1,366 |
|
Share-based Compensation |
87 |
|
|
- |
|
|
87 |
|
|
13 |
|
|
109 |
|
|
- |
|
|
109 |
|
Unrealized (gains) losses from fair value changes of equity
securities |
359 |
|
|
- |
|
|
359 |
|
|
52 |
|
|
96 |
|
|
- |
|
|
96 |
|
Adjusted EBITDA (non-GAAP) |
728 |
|
|
(118 |
) |
|
610 |
|
|
88 |
|
|
2,032 |
|
|
(461 |
) |
|
1,571 |
|
(2) The Company presents segment information after elimination of
intercompany transactions. |
Operating Results:
Legacy-Huazhu(1)
|
Number of hotels |
|
Number of rooms |
|
Opened in Q4 2022 |
Closed (2)in Q4
2022 |
Net added in Q4 2022 |
As of December 31,2022
(3) |
|
As of December 31,2022 |
|
|
Leased and owned hotels |
5 |
(13 |
) |
(8 |
) |
623 |
|
89,638 |
Manachised and franchised hotels |
239 |
(96 |
) |
143 |
|
7,788 |
|
693,536 |
Total |
244 |
(109 |
) |
135 |
|
8,411 |
|
783,174 |
(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 Q4 2022, we temporarily closed 10
hotels for brand upgrade and business model change
purposes.(3) As of December 31, 2022, 572 hotels were
requisitioned by governmental authorities. |
|
As of December 31, 2022 |
|
Number of hotels |
Unopened hotels in pipeline |
Economy hotels |
4,930 |
1,053 |
Leased and owned hotels |
353 |
1 |
Manachised and franchised hotels |
4,577 |
1,052 |
Midscale and upscale hotels |
3,481 |
1,491 |
Leased and owned hotels |
270 |
13 |
Manachised and franchised hotels |
3,211 |
1,478 |
Total |
8,411 |
2,544 |
Operational hotels excluding hotels under
requisition(4) |
|
For the quarter ended |
|
|
December 31, |
September 30, |
December 31, |
yoy |
|
2021 |
2022 |
2022 |
change |
Average daily room rate (in RMB) |
|
|
|
Leased and owned hotels |
286 |
|
294 |
|
279 |
|
-2.6% |
|
Manachised and franchised hotels |
232 |
|
248 |
|
236 |
|
1.4% |
|
Blended |
239 |
|
254 |
|
240 |
|
0.4% |
|
Occupancy Rate (as a percentage) |
|
|
|
Leased and owned hotels |
67.4% |
|
73.1% |
|
63.1% |
|
-4.3 p.p. |
|
Manachised and franchised hotels |
68.4% |
|
76.4% |
|
66.6% |
|
-1.8 p.p. |
|
Blended |
68.2% |
|
76.0% |
|
66.2% |
|
-2.0 p.p. |
|
RevPAR (in RMB) |
|
|
|
|
Leased and owned hotels |
193 |
|
215 |
|
176 |
|
-8.8% |
|
Manachised and franchised hotels |
159 |
|
190 |
|
157 |
|
-1.2% |
|
Blended |
163 |
|
193 |
|
159 |
|
-2.6% |
|
|
For the quarter ended |
|
December 31, |
December 31, |
yoy |
|
2019 |
2022 |
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
277 |
|
279 |
|
0.5% |
|
Manachised and franchised hotels |
223 |
|
236 |
|
5.9% |
|
Blended |
232 |
|
240 |
|
3.6% |
|
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
84.7% |
|
63.1% |
|
-21.6 p.p. |
|
Manachised and franchised hotels |
81.6% |
|
66.6% |
|
-15.0 p.p. |
|
Blended |
82.2% |
|
66.2% |
|
-16.0 p.p. |
|
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
235 |
|
176 |
|
-25.2% |
|
Manachised and franchised hotels |
182 |
|
157 |
|
-13.6% |
|
Blended |
191 |
|
159 |
|
-16.6% |
|
(4) If including hotels under requisition, RevPAR
in Q4 2022 would have been approximately 85% of the 2019 level.
Operational hotels excluding hotels under
requisition(5) |
|
For full year ended |
|
December 31, |
December 31, |
yoy |
|
2021 |
2022 |
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
286 |
|
272 |
|
-5.1% |
|
Manachised and franchised hotels |
232 |
|
231 |
|
-0.2% |
|
Blended |
239 |
|
236 |
|
-1.3% |
|
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
70.6% |
|
63.9% |
|
-6.7 p.p. |
|
Manachised and franchised hotels |
72.4% |
|
67.1% |
|
-5.4 p.p. |
|
Blended |
72.2% |
|
66.7% |
|
-5.5 p.p. |
|
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
202 |
|
174 |
|
-14.1% |
|
Manachised and franchised hotels |
168 |
|
155 |
|
-7.6% |
|
Blended |
172 |
|
157 |
|
-8.8% |
|
|
For full year ended |
|
December 31, |
December 31, |
yoy |
|
2019 |
2022 |
change |
Average daily room rate (in RMB) |
|
|
Leased and owned hotels |
276 |
|
272 |
|
-1.8% |
|
Manachised and franchised hotels |
224 |
|
231 |
|
3.0% |
|
Blended |
234 |
|
236 |
|
0.6% |
|
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
87.0% |
|
63.9% |
|
-23.0 p.p. |
|
Manachised and franchised hotels |
83.8% |
|
67.1% |
|
-16.7 p.p. |
|
Blended |
84.4% |
|
66.7% |
|
-17.7 p.p. |
|
RevPAR (in RMB) |
|
|
|
Leased and owned hotels |
240 |
|
174 |
|
-27.8% |
|
Manachised and franchised hotels |
188 |
|
155 |
|
-17.5% |
|
Blended |
198 |
|
157 |
|
-20.5% |
|
(5) If including hotels under requisition, RevPAR
in 2022 would have been approximately 82% 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 ofDecember 31, |
For the quarter |
yoychange |
For the quarter |
yoychange |
For the quarter |
yoychange |
|
endedDecember 31, |
endedDecember 31, |
endedDecember 31, |
|
2021 |
2022 |
2021 |
2022 |
|
2021 |
2022 |
|
2021 |
|
2022 |
|
(p.p.) |
Economy hotels |
3,199 |
3,199 |
137 |
123 |
-10.1 |
% |
183 |
181 |
-1.0 |
% |
75.0 |
% |
68.1 |
% |
-6.9 |
Leased and owned hotels |
335 |
335 |
148 |
132 |
-11.1 |
% |
204 |
199 |
-2.6 |
% |
72.5 |
% |
66.2 |
% |
-6.4 |
Manachised and franchised hotels |
2,864 |
2,864 |
135 |
122 |
-9.9 |
% |
179 |
178 |
-0.7 |
% |
75.5 |
% |
68.5 |
% |
-7.0 |
Midscale and upscale hotels |
2,097 |
2,097 |
215 |
196 |
-8.6 |
% |
313 |
301 |
-3.8 |
% |
68.6 |
% |
65.1 |
% |
-3.4 |
Leased and owned hotels |
227 |
227 |
245 |
222 |
-9.5 |
% |
387 |
361 |
-6.8 |
% |
63.4 |
% |
61.5 |
% |
-1.9 |
Manachised and franchised hotels |
1,870 |
1,870 |
209 |
192 |
-8.4 |
% |
301 |
292 |
-3.2 |
% |
69.5 |
% |
65.7 |
% |
-3.7 |
Total |
5,296 |
5,296 |
174 |
158 |
-9.2 |
% |
241 |
236 |
-2.0 |
% |
72.0 |
% |
66.7 |
% |
-5.3 |
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofDecember 31, |
For the quarter |
yoychange |
For the quarter |
yoychange |
For the quarter |
yoychange |
|
ended December 31, |
ended December 31, |
ended December 31, |
|
2019 |
2022 |
2019 |
2022 |
|
2019 |
2022 |
|
2019 |
2022 |
(p.p.) |
Economy hotels |
1,969 |
1,969 |
167 |
122 |
-26.8 |
% |
188 |
180 |
-4.1 |
% |
88.6 |
% |
67.6 |
% |
-21.0 |
Leased and owned hotels |
324 |
324 |
189 |
130 |
-31.5 |
% |
215 |
197 |
-8.3 |
% |
88.0 |
% |
65.8 |
% |
-22.2 |
Manachised and franchised hotels |
1,645 |
1,645 |
161 |
120 |
-25.4 |
% |
181 |
176 |
-2.8 |
% |
88.8 |
% |
68.1 |
% |
-20.7 |
Midscale and upscale hotels |
1,009 |
1,009 |
272 |
192 |
-29.4 |
% |
325 |
300 |
-7.9 |
% |
83.5 |
% |
64.0 |
% |
-19.5 |
Leased and owned hotels |
166 |
166 |
329 |
202 |
-38.7 |
% |
395 |
335 |
-15.3 |
% |
83.3 |
% |
60.3 |
% |
-23.0 |
Manachised and franchised hotels |
843 |
843 |
256 |
189 |
-26.1 |
% |
307 |
291 |
-5.1 |
% |
83.5 |
% |
65.0 |
% |
-18.5 |
Total |
2,978 |
2,978 |
209 |
150 |
-28.0 |
% |
241 |
227 |
-5.8 |
% |
86.6 |
% |
66.2 |
% |
-20.4 |
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 ofDecember 31, |
For the year |
yoychange |
For the year |
yoychange |
For the year |
yoychange |
|
endedDecember 31, |
endedDecember 31, |
endedDecember 31, |
|
2021 |
2022 |
2021 |
2022 |
|
2021 |
2022 |
|
2021 |
|
2022 |
|
(p.p.) |
Economy hotels |
3,199 |
3,199 |
142 |
123 |
-13.6 |
% |
183 |
176 |
-3.6 |
% |
77.5 |
% |
69.5 |
% |
-8.0 |
Leased and owned hotels |
335 |
335 |
155 |
133 |
-14.1 |
% |
207 |
194 |
-6.3 |
% |
74.5 |
% |
68.3 |
% |
-6.2 |
Manachised and franchised hotels |
2,864 |
2,864 |
139 |
121 |
-13.5 |
% |
179 |
173 |
-3.1 |
% |
78.0 |
% |
69.7 |
% |
-8.3 |
Midscale and upscale hotels |
2,097 |
2,097 |
224 |
196 |
-12.4 |
% |
315 |
301 |
-4.4 |
% |
71.0 |
% |
65.0 |
% |
-6.0 |
Leased and owned hotels |
227 |
227 |
255 |
219 |
-14.1 |
% |
386 |
362 |
-6.3 |
% |
66.1 |
% |
60.6 |
% |
-5.5 |
Manachised and franchised hotels |
1,870 |
1,870 |
218 |
191 |
-12.0 |
% |
303 |
291 |
-3.9 |
% |
71.9 |
% |
65.8 |
% |
-6.1 |
Total |
5,296 |
5,296 |
179 |
156 |
-13.0 |
% |
240 |
231 |
-3.8 |
% |
74.6 |
% |
67.5 |
% |
-7.1 |
|
|
Number of hotels |
Same-hotel RevPAR |
Same-hotel ADR |
Same-hotel Occupancy |
|
As ofDecember 31, |
For the year |
yoychange |
For the year |
yoychange |
For the year |
yoychange |
|
endedDecember 31, |
endedDecember 31, |
endedDecember 31, |
|
2019 |
2022 |
2019 |
2022 |
|
2019 |
2022 |
|
2019 |
|
2022 |
|
(p.p.) |
Economy hotels |
1,969 |
1,969 |
174 |
121 |
-30.5 |
% |
192 |
176 |
-8.7 |
% |
90.7 |
% |
69.0 |
% |
-21.7 |
Leased and owned hotels |
324 |
324 |
195 |
130 |
-33.3 |
% |
215 |
191 |
-10.9 |
% |
90.8 |
% |
68.0 |
% |
-22.8 |
Manachised and franchised hotels |
1,645 |
1,645 |
169 |
119 |
-29.6 |
% |
186 |
171 |
-7.9 |
% |
90.6 |
% |
69.3 |
% |
-21.4 |
Midscale and upscale hotels |
1,009 |
1,009 |
276 |
190 |
-31.2 |
% |
331 |
300 |
-9.5 |
% |
83.2 |
% |
63.3 |
% |
-19.9 |
Leased and owned hotels |
166 |
166 |
334 |
200 |
-40.0 |
% |
396 |
338 |
-14.6 |
% |
84.2 |
% |
59.1 |
% |
-25.1 |
Manachised and franchised hotels |
843 |
843 |
258 |
187 |
-27.6 |
% |
311 |
289 |
-7.1 |
% |
82.9 |
% |
64.6 |
% |
-18.3 |
Total |
2,978 |
2,978 |
212 |
147 |
-30.8 |
% |
241 |
219 |
-9.0 |
% |
87.9 |
% |
66.9 |
% |
-21.0 |
Operating Results:
Legacy-DH(6)
|
Number of hotels |
|
Number ofrooms |
|
Unopened hotelsin pipeline |
|
Openedin Q4 2022 |
Closedin Q4 2022 |
Net addedin Q4 2022 |
As ofDecember31,
2022(7) |
|
As ofDecember31, 2022 |
|
As ofDecember31, 2022 |
|
Leased hotels |
2 |
- |
2 |
81 |
|
15,328 |
|
26 |
Manachised and franchised hotels |
4 |
- |
4 |
51 |
|
10,976 |
|
10 |
Total |
6 |
- |
6 |
132 |
|
26,304 |
|
36 |
(6) Legacy-DH
refers to DH. (7) As of December 31, 2022, a total of 3 hotels
were temporarily closed. 1 hotel was closed due to flood damage, 1
hotel was closed due to extensive hotel refurbishment, and 1 hotel
was closed for major repairs. |
|
For the quarter ended |
|
|
December 31, |
September 30, |
December 31, |
yoy |
|
2021 |
2022 |
2022 |
change |
Average daily room rate (in EUR) |
|
|
|
|
Leased hotels |
95 |
|
113 |
|
114 |
|
19.5% |
|
Manachised and franchised hotels |
93 |
|
116 |
|
134 |
|
44.6% |
|
Blended |
94 |
|
114 |
|
122 |
|
29.7% |
|
Occupancy rate (as a percentage) |
|
|
|
|
Leased hotels |
42.9% |
|
67.4% |
|
60.0% |
|
+17.1 p.p. |
|
Manachised and franchised hotels |
50.7% |
|
64.1% |
|
58.3% |
|
+7.6 p.p. |
|
Blended |
46.1% |
|
66.1% |
|
59.3% |
|
+13.2 p.p. |
|
RevPAR (in EUR) |
|
|
|
|
Leased hotels |
41 |
|
76 |
|
68 |
|
67.3% |
|
Manachised and franchised hotels |
47 |
|
74 |
|
78 |
|
66.2% |
|
Blended |
43 |
|
75 |
|
72 |
|
66.8% |
|
|
For full year ended |
|
December 31, |
December 31, |
yoy |
|
2021 |
2022 |
change |
Average daily room rate (in EUR) |
|
|
Leased and owned hotels |
91 |
|
110 |
|
20.1% |
|
Manachised and franchised hotels |
89 |
|
113 |
|
26.6% |
|
Blended |
90 |
|
111 |
|
22.9% |
|
Occupancy Rate (as a percentage) |
|
|
Leased and owned hotels |
31.6% |
|
56.0% |
|
+24.4 p.p. |
|
Manachised and franchised hotels |
40.5% |
|
56.4% |
|
+15.9 p.p. |
|
Blended |
35.2% |
|
56.2% |
|
+21.0 p.p. |
|
RevPAR (in EUR) |
|
|
|
Leased and owned hotels |
29 |
|
61 |
|
112.6% |
|
Manachised and franchised hotels |
36 |
|
64 |
|
76.4% |
|
Blended |
32 |
|
62 |
|
96.2% |
|
Hotel Portfolio by Brand
|
As of December 31, 2022 |
|
Hotels |
Rooms |
Unopened hotels |
|
in operation |
in pipeline |
Economy hotels |
4,948 |
389,383 |
1,066 |
HanTing Hotel |
3,257 |
288,956 |
652 |
Hi Inn |
456 |
23,998 |
170 |
Ni Hao Hotel |
159 |
11,534 |
199 |
Elan Hotel |
836 |
39,948 |
- |
Ibis Hotel |
222 |
22,826 |
32 |
Zleep Hotels |
18 |
2,121 |
13 |
Midscale hotels |
2,898 |
317,117 |
1,146 |
Ibis Styles Hotel |
85 |
8,864 |
25 |
Starway Hotel |
567 |
47,378 |
242 |
JI Hotel |
1,694 |
199,581 |
611 |
Orange Hotel |
519 |
56,035 |
261 |
CitiGO Hotel |
33 |
5,259 |
7 |
Upper midscale hotels |
538 |
75,467 |
286 |
Crystal Orange Hotel |
164 |
21,552 |
57 |
Manxin Hotel |
112 |
10,601 |
59 |
Madison Hotel |
52 |
7,195 |
64 |
Mercure Hotel |
137 |
21,193 |
62 |
Novotel Hotel |
17 |
4,424 |
19 |
IntercityHotel(8) |
56 |
10,502 |
25 |
Upscale hotels |
134 |
21,609 |
72 |
Jaz in the City |
3 |
587 |
1 |
Joya Hotel |
8 |
1,368 |
1 |
Blossom House |
53 |
2,326 |
49 |
Grand Mercure Hotel |
7 |
1,726 |
5 |
Steigenberger Hotels & Resorts(9) |
54 |
14,040 |
8 |
MAXX (10) |
9 |
1,562 |
8 |
Luxury hotels |
15 |
2,318 |
5 |
Steigenberger Icon(11) |
9 |
1,847 |
1 |
Song Hotels |
6 |
471 |
4 |
Others |
10 |
3,584 |
5 |
Other hotels(12) |
10 |
3,584 |
5 |
Total |
8,543 |
809,478 |
2,580 |
(8) As of December 31, 2022, 5 operational
hotels and 11 pipeline hotels of IntercityHotel were in
China.(9) As of December 31, 2022, 11 operational hotels and 3
pipeline hotels of Steigenberger Hotels & Resorts were in
China.(10) As of December 31, 2022, 3 operational hotels and 8
pipeline hotels of MAXX were in China.(11) As of December 31,
2022, 3 operational hotels of Steigenberger Icon were in
China.(12) 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$1.00=RMB6.8972 on December 30, 2022 as set forth in H.10
statistical release of the U.S. Federal Reserve Board and available
at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.3
The conversion of Renminbi (“RMB”) into United
States dollars (“US$”) is based on the exchange
rate of US$1.00=RMB6.8972 on December 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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