Revenue climbed a 8.4% YoY growth in 2022 driven by
strong rebound in international business
SINGAPORE and SHANGHAI, March 27,
2023 /PRNewswire/ -- H World Group(NASDAQ: HTHT
and HKEX: 1179)(the Group) announced its annual results for the
year ended 31 December 2022. For the
year 2022, the Group achieved revenue of RMB13.9 billion, representing an increase of 8.4%
compared to 2021.
According to the Group, the reopening of China announced in mid-November put the
domestic economy back on its feet and led to increased demand for
business travel, resulting in an accelerated recovery of its
business in the country. In the fourth quarter of 2022, the Group
recorded revenue of RMB3.7 billion,
representing a year-on-year increase of 10.7%.
He Jihong, the Group's Chief Financial Officer, said, "Despite the challenges posed by the Covid-19
pandemic in China, the Group was
able to achieve Adjusted EBITDA of RMB 610
million, Adjusted EBITDA before non-cash impairment and
forex loss was RMB 1.74
billion. This accomplishment can be attributed to the
strong recovery of our international business, as well as rigorous
cost reduction efforts across the Group implemented both at the
hotel level and within our headquarters. "
Strong recovery of international business
Since the opening of Europe in
mid-February, H World Group's European business has recovered
strongly. In 2022, the Average Daily Rate (ADR) and full-year
blended revenue per available room (RevPAR) of Deutsche Hospitality
(DH) were up 22.9% and 96.2% year-on-year respectively. Meanwhile,
the blended revenue per available room (RevPAR) in the fourth
quarter rebounded to 110% of 2019's performance level, driven by
the performance of Steigenberger hotels in Qatar and Egypt.
Revenue from the Legacy-DH segment for the year 2022 was
RMB3.2 billion, representing an
increase of 108.5% year-on-year. Adjusted EBITDA of RMB134 million before impairment and unrealized
losses was achieved, showing a positive turnaround on operational
level thanks to successful cost management and efficiency
improvements.
Going forward, DH will continue to pursue its membership growth
strategy(i.e. loyalty program H Rewards) and increase the share of
direct sales channels, while further improving management
efficiency and reducing operating costs through digitalization.
Continue to penetrate lower-tier markets while accelerating
development of midscale and
upscale hotels
As of 31 December 2022, H World
Group owned a network of 8,543 operating hotels and 809,478 rooms
worldwide, including DH's 132 hotels.
Over the past year, the Group continued its expansion plan and
efficiently opened 1,244 new hotels. As of 31 December 2022, the Group had 2,580 hotels
under development, including 2,544 hotels of Legacy-Huazhu business
and 36 hotels of Legacy-DH business.
H World Group adheres to its sustainable quality growth
strategy, while continuing to cultivate the Chinese market and
penetrate into lower-tier cities. According to the Group, the
percentage of hotels operating in third-tier cities and below was
38%, while the percentage of hotels under development was 57%. The
Group had already achieved coverage in 1,126 cities.
In addition, the Group continued to develop midscale and
upper-midscale brands. At the end of the report period, the Group
had 523 upper-midscale hotels in operation and 287 hotels under
development.
Looking ahead to 2023, the Group expects to open 1,400 new
hotels and expects revenue growth of between 42% to 46%.
Jin Hui, the Group's Chief
Executive Officer, said, "While we recognize that 2022 presented
many obstacles, we remain optimistic about the future of the hotel
industry. We do believe that Spring is in the air and that the
worst is behind us. The Group strives for our sustainable quality
growth strategy. As such, H World Group is excited to embark on a
new journey."
About H World Group
Originated in China, H World
Group Limited is a key player in the global hotel industry. At the
end of 2022, H World Group operated 8,543 hotels in 17 countries,
covering 31 hotel and apartment brands from budget to luxury
markets. It had 809,478 rooms in operation, providing consumers
with a diverse range of accommodation experiences. 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. 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 enquiries, please contact Peanut Media Ltd:
Olga Duan: (852) 9865 6561, duanjie@czgmcn.com
Regen Wong: (852) 6437 6608,
regenwong@czgmcn.com
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SOURCE H World Group