Blended RevPAR Recovers to 118% of
1Q19
SINGAPORE and SHANGHAI, May 30, 2023
/PRNewswire/ -- H World Group (NASDAQ: HTHT; HK: 1179)
announced financial results for the first quarter of 2023. In 1Q
2023, H World captured the strong hotel industry recovery and
reported hotel turnover of RMB16.2bn,
representing 71.3% YoY increase.
In the first quarter, H World's revenue reached
RMB4.5bn, representing a 21% QoQ
growth and an increase of 67.1% YoY from RMB2.68bn in the same quarter last year. The
reported revenue exceeded company's previous guidance and surpassed
its pre-COVID level. Adjusted EBITDA turned positive to
RMB1.7bn, compared to a loss of
RMB333mn in 1Q 2022. For the
Legacy-Huazhu business, average daily room rate ("ADR") grew 23.9%
YoY to RMB277 from RMB224 in the same period last year, and
occupancy rate improved by 16.4ppts YoY to 75.6%.
Jin Hui, CEO of H World
commented: "The company's solid result in the first quarter was
largely driven by pend-up demand, a combination of product mix
change and continued product upgrades, as well as market
penetration and synergy through regional offices."
RevPAR Recovery Exceeds Expectation
With the gradual recovery of China's consumption and travelling activates,
together with some consumption stimulus measures introduced in
various provinces, Legacy-Huazhu's blended RevPAR grew to
RMB210 in 1Q 2023, from only
RMB132 in 1Q 2022, and recovered to
118% of 1Q 2019 level. Breaking down into monthly numbers, RevPAR
in January, February and March 2023
recovered to 96%, 140% and 120% of the 2019 levels of the
corresponding months, respectively.
In the first quarter, Legacy-Huazhu signed up 672 new
hotels, up 26% YoY, but closed 209 hotels in the same period. The
hotel closure primarily reflects the delayed hotel closure
processes in 4Q22 due to COVID impacts, as well as Huazhu's
proactive approach of tightening the new hotel opening requirements
and removing interior hotels from the network.
Launches Orange Hotel 3.0, Introducing the "LOHAS"
Concept
H World continued implementing its sustainable quality
growth strategy. To further improve the quality of the hotel
portfolio, H World closed more inferior economy soft brands and
HanTing 1.0 version hotels, and achieved further breakthrough in
the midscale and upper-midscale segments. In the midscale segment,
H World launched Orange Hotel 3.0 version, which embraces the
rising demand of "Lifestyles of Health and Sustainability (LOHAS)"
concept. In the upper-midscale segment, H World launched DH's
Intercity Hotel brand in China,
which offers ultimate business travel experience. H World has
successfully opened new Intercity Hotels in Shenzhen, Wuhan, Shanghai and Zhengzhou. The new openings marked an
important first step for Intercity brand's future development in
China where the brand is inherited
and further evolved.
On the overseas business front, Legacy-DH's 1Q 2023 RevPAR
recovered to 94% of 2019 level.
H World expects revenue to
grow 51-55% YoY in the
Second Quarter
In the second quarter, H World continues focusing on the
sustainable growth strategy, and expects its revenue growth to be
in the range of 51%-55% YoY. The full year expectation remains
unchanged with expectation of 1,400 gross hotel openings and 42-46%
YoY revenue growth.
About H World Group
Originated in China, H World
Group Limited is a key player in the global hotel industry. As of
March 31, 2023, H World operated 8,592 hotels with 820,099
rooms in operation in 18 countries. H World's brands include Hi
Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange
Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya
Hotel, Blossom House, Ni Hao Hotel,
CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the
City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song
Hotels. In addition, H World also has the rights as master
franchisee for Mercure, Ibis and Ibis Styles, and
co-development rights for Grand Mercure and Novotel, in the
pan-China region.
The above press release is distributed by Peanut Media. For
media inquiries, please contact
Olga Duan
|
(852)9865-6561
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duanjie@czgmcn.com
|
Regen Wong
|
(852)6437-6608
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regenwong@czgmcn.com
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SOURCE H World Group