Summary
H World Group Ltd (HTHT, Financial), a prominent player in the global hotel industry, announced its unaudited financial results for the first quarter ending March 31, 2025. The company reported a total of 11,685 hotels and 1,142,158 rooms in operation. Hotel turnover increased by 14.3% year-over-year to RMB22.5 billion, while revenue rose by 2.2% to RMB5.4 billion. The company achieved a net income of RMB894 million, marking a 35.7% increase from the previous year. The press release was issued on May 20, 2025.
Positive Highlights
- Hotel turnover increased by 14.3% year-over-year to RMB22.5 billion.
- Revenue grew by 2.2% year-over-year to RMB5.4 billion.
- Net income rose by 35.7% year-over-year to RMB894 million.
- Adjusted EBITDA increased to RMB1.5 billion from RMB1.4 billion in the previous year.
- 694 new hotel openings in China during Q1 2025.
Negative Highlights
- Revenue from the Legacy-DH segment decreased by 11.3% year-over-year.
- Occupancy rate for Legacy-Huazhu hotels decreased to 76.2% from 77.2% in the previous year.
- Blended RevPAR for Legacy-Huazhu hotels decreased by 3.9% year-over-year.
- Revenue from leased and owned hotels decreased by 10.0% year-over-year.
Financial Analyst Perspective
From a financial analyst's perspective, H World Group Ltd's Q1 2025 results demonstrate resilience in revenue growth despite challenges in the Legacy-DH segment. The company's focus on expanding its hotel network, particularly in China, has contributed to the overall increase in hotel turnover and revenue. The significant rise in net income and adjusted EBITDA indicates effective cost management and operational efficiency. However, the decline in occupancy rates and RevPAR suggests potential areas for improvement in maximizing room utilization and pricing strategies.
Market Research Analyst Perspective
As a market research analyst, the expansion of H World Group Ltd's hotel network, with 694 new openings in China, highlights the company's strategic focus on growth in key markets. The increase in manachised and franchised revenue by 21.1% year-over-year reflects the success of the asset-light strategy. However, the decrease in revenue from the Legacy-DH segment and lower occupancy rates indicate challenges in international markets. The company's cautious stance amid macroeconomic uncertainties suggests a need for adaptive strategies to navigate external pressures.
FAQs
Q: What was the total number of hotels in operation as of March 31, 2025?
A: H World Group Ltd had 11,685 hotels in operation as of March 31, 2025.
Q: How much did the hotel turnover increase year-over-year?
A: Hotel turnover increased by 14.3% year-over-year to RMB22.5 billion.
Q: What was the net income for Q1 2025?
A: The net income for Q1 2025 was RMB894 million, a 35.7% increase from the previous year.
Q: How many new hotels were opened in China during Q1 2025?
A: H World Group Ltd opened 694 new hotels in China during Q1 2025.
Read the original press release here.
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