Q2 2025 H World Group Ltd Earnings Call Transcript
Key Points
- H World Group Ltd (HTHT) achieved a 15% year-over-year growth in group hotel GMV, reaching RMB26.9 billion.
- The company's H Rewards membership program saw a 17.5% increase in members, reaching nearly 290 million, with a 28.8% growth in room nights booked by members.
- The asset-light manachised and franchised business experienced robust growth, with revenue rising 22.8% year over year to RMB2.9 billion and gross operating profit increasing by 23.2% to RMB1.9 billion.
- H World Group Ltd (HTHT) successfully launched the HanTing 4.0 version, which is a revolutionary supply chain reform aimed at reducing costs and improving quality and efficiency.
- The company declared a USD250 million interim cash dividend, representing 74% of its first-half net profit, along with a USD62 million share buyback, demonstrating a commitment to shareholder returns.
- The hotel industry is facing challenges due to rapid increases in hotel supply and macroeconomic factors affecting business travel and consumer spending.
- The company's leased and owned business saw a decline, with revenue and gross operating profit decreasing by 7.6% and 13.4% year over year, respectively.
- H World Group Ltd (HTHT) expects a slight year-over-year decline in RevPAR for the third quarter, with full-year RevPAR performance anticipated to be slightly below previous guidance.
- Older hotel versions, particularly HanTing 2.0 and 2.5, are under pressure due to new hotel openings and upgraded products, impacting their competitiveness.
- The company is facing challenges in shifting its DH segment towards an asset-light model due to legal constraints in Europe, particularly in Germany.
Good day and thank you for standing by. Welcome to the H World Q2 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. Please go ahead.
Thank you, Heidi. Good morning, and good evening, everyone. Thanks for joining us today. Welcome to H World Group 2025 second-quarter earnings conference call. Joining us today is our Founder and Chairman, Mr. Qi Ji; 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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