Q1 2025 H World Group Ltd Earnings Call Transcript
Key Points
- H World Group Ltd (HTHT) opened 695 hotels in Q1 2025, demonstrating strong expansion efforts.
- The company saw a 36% year-over-year increase in the number of upper-mid-scale hotels in operation, indicating successful growth in this segment.
- Membership base increased to nearly 280 million, with room nights generated through the central reservation system rising by 5.4 percentage points year over year.
- The asset-light model continues to expand, with managed and franchised hotels increasing to 46% of the portfolio.
- Legacy-DH's RevPAR improved by 12.7% in Q1 2025, with strong performance in North Africa and the Middle East.
- RevPAR declined by 3.9% year over year, with ADR decreasing by 2.6% and occupancy rate slightly down by 1 percentage point.
- The company faces uncertainties due to tariff issues starting in April, impacting market outlook.
- Revenue from Legacy-DH decreased by 11.3% year over year, primarily due to the transformation of leased hotels to franchise hotels.
- SG&A expenses for Legacy-DH are still undergoing restructuring, indicating ongoing cost challenges.
- The gap between blended RevPAR and like-for-like RevPAR widened, reflecting pressure from supply surge and product upgrades.
Good day and thank you for standing by. Welcome to the H World Q1 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Jason Chen, Head of IR. Please go ahead.
Thank you. Good morning and good evening, everyone. Thanks for joining us today. Welcome to H World Group 2025 first-quarter earnings conference call. Joining us today is our Chairman, Mr. Ji Qi; our CEO, Mr. Jin Hui; our CFO, Ms. Chen Hui; and our CSO, Ms. He Jihong. Following their prepared remarks, management will be available to answer your questions.
Before we continue, please note that the discussion today will include forward-looking statements made under the Safe Harbor provision of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed
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