SINGAPORE and SHANGHAI, China, July 25, 2023 (GLOBE NEWSWIRE) -- H World Group Limited ( HTHT and HKEX: 1179) (“H World”, “we” or “our”), a key player in the global hotel industry, today announced preliminary results for hotel operations in the second quarter (“Q2 2023”) ended June 30, 2023.
Business update
For our Legacy-Huazhu business, our RevPAR in Q2 2023 recovered to 121% of the 2019 level. The recovery continued to be supported by strong travel demand in this quarter and was primarily driven by ADR growth. Breaking down into monthly numbers, our RevPAR in April, May and June 2023 recovered to 127%, 115% and 123% of the 2019 levels, respectively. During this quarter, our hotel closures were mainly attributed to closures that were carried over from last year due to the impact of COVID-19, as well as the continued elimination of those lower-quality and underperforming economy hotels from our network. Our new hotel signing gained further momentum, reaching over 1,000 new hotels during this quarter, which reflected the rising confidence level of franchisees.
Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”), after experiencing a season-related slowdown in Q1 2023, observed promising business recovery in Q2 2023, with blended RevPAR having recovered to 111% of the 2019 level, mainly driven by ADR growth.
Operating Results: Legacy-Huazhu(1)
| Number of hotels | Number of rooms | |||||||
| Opened in Q2 2023 | Closed (2) in Q2 2023 | Net added in Q2 2023 | As of June 30, 2023 | As of June 30, 2023 | ||||
| Leased and owned hotels | 2 | (6 | ) | (4 | ) | 616 | 86,846 | |
| Manachised and franchised hotels | 372 | (210 | ) | 162 | 8,006 | 731,399 | ||
| Total | 374 | (216 | ) | 158 | 8,622 | 818,245 | ||
| (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 2023, we temporarily closed 23 hotels for brand upgrade or business model change purposes. | ||||||||
| As of June 30, 2023 | ||
| Number of hotels | Unopened hotels in pipeline | |
| Economy hotels | 4,856 | 1,079 |
| Leased and owned hotels | 345 | 1 |
| Manachised and franchised hotels | 4,511 | 1,078 |
| Midscale and upscale hotels | 3,766 | 1,729 |
| Leased and owned hotels | 271 | 14 |
| Manachised and franchised hotels | 3,495 | 1,715 |
| Total | 8,622 | 2,808 |
| For the quarter ended | ||||||||
| June 30, | March 31, | June 30, | yoy | |||||
| 2022 | 2023 | 2023 | change | |||||
| Average daily room rate (in RMB) | ||||||||
| Leased and owned hotels | 243 | 337 | 384 | 57.7 | % | |||
| Manachised and franchised hotels | 215 | 269 | 295 | 37.3 | % | |||
| Blended | 218 | 277 | 305 | 39.8 | % | |||
| Occupancy rate (as a percentage) | ||||||||
| Leased and owned hotels | 62.9 | % | 76.3 | % | 83.6 | % | +20.7 p.p. | |
| Manachised and franchised hotels | 64.9 | % | 75.5 | % | 81.6 | % | +16.7 p.p. | |
| Blended | 64.6 | % | 75.6 | % | 81.8 | % | +17.2 p.p. | |
| RevPAR (in RMB) | ||||||||
| Leased and owned hotels | 153 | 257 | 321 | 109.7 | % | |||
| Manachised and franchised hotels | 139 | 203 | 241 | 72.8 | % | |||
| Blended | 141 | 210 | 250 | 77.0 | % | |||
| For the quarter ended | ||||||
| June 30, | June 30, | yoy | ||||
| 2019 | 2023 | change | ||||
| Average daily room rate (in RMB) | ||||||
| Leased and owned hotels | 281 | 384 | 36.4 | % | ||
| Manachised and franchised hotels | 225 | 295 | 30.9 | % | ||
| Blended | 236 | 305 | 28.9 | % | ||
| Occupancy rate (as a percentage) | ||||||
| Leased and owned hotels | 89.4 | % | 83.6 | % | -5.8 p.p. | |
| Manachised and franchised hotels | 86.3 | % | 81.6 | % | -4.7 p.p. | |
| Blended | 86.9 | % | 81.8 | % | -5.1 p.p. | |
| RevPAR (in RMB) | ||||||
| Leased and owned hotels | 252 | 321 | 27.6 | % | ||
| Manachised and franchised hotels | 194 | 241 | 23.8 | % | ||
| Blended | 206 | 250 | 21.4 | % | ||
| Same-hotel operational data by class | |||||||||||||||
| Mature hotels in operation for more than 18 months | |||||||||||||||
| Number of hotels | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
| As of June 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 | ||||||||||
| 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | (p.p.) | |||||||
| Economy hotels | 3,567 | 3,567 | 118 | 192 | 63.1 | % | 168 | 231 | 37.3 | % | 70.1 | % | 83.3 | % | +13.2 |
| Leased and owned hotels | 325 | 325 | 124 | 237 | 90.4 | % | 178 | 277 | 55.2 | % | 69.7 | % | 85.5 | % | +15.8 |
| Manachised and franchised hotels | 3,242 | 3,242 | 117 | 186 | 58.8 | % | 167 | 224 | 34.3 | % | 70.2 | % | 83.0 | % | +12.8 |
| Midscale and upscale hotels | 2,624 | 2,624 | 176 | 309 | 75.6 | % | 284 | 378 | 33.4 | % | 62.1 | % | 81.7 | % | +19.6 |
| Leased and owned hotels | 253 | 253 | 194 | 395 | 104.1 | % | 339 | 479 | 41.3 | % | 57.2 | % | 82.6 | % | +25.5 |
| Manachised and franchised hotels | 2,371 | 2,371 | 173 | 295 | 70.3 | % | 276 | 362 | 31.2 | % | 62.8 | % | 81.6 | % | +18.8 |
| Total | 6,191 | 6,191 | 146 | 251 | 71.8 | % | 221 | 304 | 37.9 | % | 66.2 | % | 82.5 | % | +16.3 |
Operating Results: Legacy-DH(3)
| Number of hotels | Number of rooms | Unopened hotels in pipeline | ||||||
| Opened in Q2 2023 | Closed in Q2 2023 | Net added in Q2 2023 | As of June 30, 2023(4) | As of June 30, 2023 | As of June 30, 2023 | |||
| Leased hotels | - | - | - | 80 | 15,497 | 26 | ||
| Manachised and franchised hotels | - | - | - | 48 | 10,675 | 11 | ||
| Total | - | - | - | 128 | 26,172 | 37 | ||
| (3) Legacy-DH refers to DH. (4) As of June 30, 2023, a total of 3 hotels were temporarily closed. 1 hotel was closed due to flood damage, 1 hotel was closed due to repair work, and 1 hotel was not in operation due to a legal proceeding in progress. | ||||||||
| For the quarter ended | ||||||||
| June 30, | March 31, | June 30, | yoy | |||||
| 2022 | 2023 | 2023 | change | |||||
| Average daily room rate (in EUR) | ||||||||
| Leased hotels | 113 | 108 | 119 | 6.1 | % | |||
| Manachised and franchised hotels | 107 | 97 | 112 | 5.0 | % | |||
| Blended | 110 | 104 | 117 | 5.6 | % | |||
| Occupancy rate (as a percentage) | ||||||||
| Leased hotels | 61.2 | % | 53.0 | % | 69.4 | % | +8.2 p.p. | |
| Manachised and franchised hotels | 57.9 | % | 54.1 | % | 63.8 | % | +5.9 p.p. | |
| Blended | 59.8 | % | 53.5 | % | 67.1 | % | +7.3 p.p. | |
| RevPAR (in EUR) | ||||||||
| Leased hotels | 69 | 57 | 83 | 20.3 | % | |||
| Manachised and franchised hotels | 62 | 53 | 71 | 15.7 | % | |||
| Blended | 66 | 55 | 78 | 18.5 | % | |||
Hotel Portfolio by Brand
| As of June 30, 2023 | |||
| Hotels | Rooms | Unopened hotels | |
| in operation | in pipeline | ||
| Economy hotels | 4,872 | 392,231 | 1,092 |
| HanTi | |||
