H World Group Limited Announces Preliminary Results for Hotel Operations in the Third Quarter of 2023

Author's Avatar
Oct 20, 2023

SINGAPORE and SHANGHAI, China, Oct. 20, 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 third quarter (“Q3 2023”) ended September 30, 2023.

Business update
For our Legacy-Huazhu business, our RevPAR in Q3 2023 recovered to 129% of the 2019 level, supported by the strong travel demand. Breaking down into monthly numbers, our RevPAR in July, August and September 2023 recovered to 132%, 128% and 128% of the 2019 levels, respectively. While the RevPAR growth continued to be primarily driven by ADR growth, the occupancy rate recovery also improved sequentially this quarter. In Q3 2023, our hotel openings picked up with a gross openings of 545 hotels, and our hotel closures amounted to 139 hotels.

Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”) continued its promising business recovery trend and its RevPAR recovered to 107% of the 2019 level.

Operating Results: Legacy-Huazhu(1)

Number of hotels Number of rooms
Opened
in Q3 2023
Closed (2)
in Q3 2023		Net added
in Q3 2023		As of
September 30,
2023
As of
September 30,
2023
Leased and owned hotels4(12)(8)60887,026
Manachised and franchised hotels541(127)4148,420772,258
Total 545 (139) 406 9,028 859,284
(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 Q3 2023, we temporarily closed 8 hotels for brand upgrade or business model change purposes.
As of September 30, 2023
Number of hotels Unopened hotels in pipeline
Economy hotels4,9921,084
Leased and owned hotels3341
Manachised and franchised hotels4,6581,083
Midscale, upper-midscale hotels and others4,0361,851
Leased and owned hotels27414
Manachised and franchised hotels3,7621,837
Total9,0282,935
For the quarter ended
September 30,June 30,September 30,yoy
202220232023change
Average daily room rate (in RMB)
Leased and owned hotels29438440638.1%
Manachised and franchised hotels24829531426.4%
Blended25430532427.7%
Occupancy rate (as a percentage)
Leased and owned hotels73.1%83.6%87.8%+14.7 p.p.
Manachised and franchised hotels76.4%81.6%85.7%+9.2 p.p.
Blended76.0%81.8%85.9%+9.8 p.p.
RevPAR (in RMB)
Leased and owned hotels21532135665.8%
Manachised and franchised hotels19024126941.7%
Blended19325027844.3%
For the quarter ended
September 30,September 30,yoy
20192023change
Average daily room rate (in RMB)
Leased and owned hotels28840641.0%
Manachised and franchised hotels23531433.4%
Blended24532432.1%
Occupancy rate (as a percentage)
Leased and owned hotels90.0%87.8%-2.3 p.p.
Manachised and franchised hotels87.2%85.7%-1.5 p.p.
Blended87.7%85.9%-1.8 p.p.
RevPAR (in RMB)
Leased and owned hotels25935637.5%
Manachised and franchised hotels20526931.1%
Blended21527829.4%

Same-hotel operational data by class
Mature hotels in operation for more than 18 months

Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
As of
September 30,		For the quarter
ended
September 30,
yoy
change		For the quarter
ended
September 30,
yoy
change		For the quarter
ended
September 30,
yoy
change

(p.p.)
2022
2023
2022
2023
2022
2023
20222023
Economy hotels 3,669 3,669 154 216 40.1% 192 247 28.8%80.3%87.3%+7.1
Leased and owned hotels32232216726357.7%21329538.9%78.4%89.0%+10.6
Manachised and franchised hotels3,3473,34715220937.3%18924026.9%80.5%87.1%+6.6
Midscale, upper-midscale hotels and others 2,797 2,797 244 343 41.0% 325 399 22.5%74.8%86.1%+11.3
Leased and owned hotels25425427043962.5%39050429.1%69.2%87.1%+17.9
Manachised and franchised hotels2,5432,54324032937.3%31738320.8%75.7%86.0%+10.3
Total 6,466 6,466 199 281 41.1% 257 324 26.2%77.5%86.7%+9.2

Operating Results: Legacy-DH(3)

Number of hotelsNumber of rooms
Unopened hotels in pipeline
As of
September 30, 2023
Opened
in Q3 2023
Closed
in Q3 2023		Net added
in Q3 2023		As of
September 30, 2023(4)
As of
September 30, 2023
Leased hotels2-28215,96124
Manachised and franchised hotels-(1)(1)4710,51111
Total 2 (1) 1 129 26,472 35
(3) Legacy-DH refers to DH.
(4) As of September 30, 2023, a total of 3 hotels were temporarily closed due to repair work.
For the quarter ended
September 30,June 30,September 30,yoy
202220232023change
Average daily room rate (in EUR)
Leased hotels1131191130.0%
Manachised and franchised hotels1161121160.3%
Blended1141171140.1%
Occupancy rate (as a percentage)
Leased hotels67.4%69.4%71.4%+4.0 p.p.
Manachised and franchised hotels64.1%63.8%65.5%+1.4 p.p.
Research Tools
All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board
Product
Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Mobile App 中文
Education
Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation
Company
About GuruFocus Career Contact Us ETF Advertise Site Map Term of Use Privacy Policy Referral Program Partner Program
Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey
Follow Us
download GuruFocus on Apple store download GuruFocus on Google Play
Disclaimers
GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.
© 2004-2024 GuruFocus.com, LLC. All Rights Reserved.