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

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SINGAPORE and SHANGHAI, China, Oct. 20, 2023 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ: 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 updateFor 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 2023Closed (2)in Q3 2023Net added in Q3 2023As of September 30,2023 As of September 30,2023
 
Leased and owned hotels4 (12)(8)608  87,026 
Manachised and franchised hotels541 (127)414 8,420  772,258 
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 hotels4,992 1,084 
Leased and owned hotels334 1 
Manachised and franchised hotels4,658 1,083 
Midscale, upper-midscale hotels and others4,036 1,851 
Leased and owned hotels274 14 
Manachised and franchised hotels3,762 1,837 
Total9,028 2,935 
 

 For the quarter ended
 September 30,June 30,September 30,yoy
 202220232023change
Average daily room rate (in RMB)    
Leased and owned hotels294 384 406 38.1%
Manachised and franchised hotels248 295 314 26.4%
Blended254 305 324 27.7%
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 hotels215 321 356 65.8%
Manachised and franchised hotels190 241 269 41.7%
Blended193 250 278 44.3%
 

 For the quarter ended
 September 30,September 30,yoy
 20192023change
Average daily room rate (in RMB)   
Leased and owned hotels288 406 41.0%
Manachised and franchised hotels235 314 33.4%
Blended245 324 32.1%
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 hotels259 356 37.5%
Manachised and franchised hotels205 269 31.1%
Blended215 278 29.4%
 
 

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

 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
 As ofSeptember 30,For the quarter ended September 30,yoychangeFor the quarter ended September 30,yoychangeFor the quarterended September 30,yoychange(p.p.)
 
 2022202320222023 20222023 20222023
Economy hotels 3,669   3,669   154   216  40.1% 192   247  28.8%80.3%87.3%+7.1  
Leased and owned hotels322 322 167 263 57.7%213 295 38.9%78.4%89.0%+10.6 
Manachised and franchised hotels3,347 3,347 152 209 37.3%189 240 26.9%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 hotels254 254 270 439 62.5%390 504 29.1%69.2%87.1%+17.9 
Manachised and franchised hotels2,543 2,543 240 329 37.3%317 383 20.8%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 roomsUnopened hotels in pipelineAs ofSeptember 30, 2023 
 Opened in Q3 2023Closedin Q3 2023Net added in Q3 2023As of September 30, 2023(4) As of September 30, 2023  
    
Leased hotels2 - 2 82 15,961 24 
Manachised and franchised hotels- (1)(1)47 10,511 11 
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 hotels113 119 113 0.0%
Manachised and franchised hotels116 112 116 0.3%
Blended114 117 114 0.1%
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.
Blended66.1%67.1%69.0%+2.9 p.p.
RevPAR (in EUR)    
Leased hotels76 83 81 5.9%
Manachised and franchised hotels74 71 76 2.4%
Blended75 78 79 4.5%
 
 

Hotel Portfolio by Brand

 As of September 30, 2023
 HotelsRoomsUnopened hotelsin pipeline
 in operation
Economy hotels 5,007   405,226   1,097  
HanTing Hotel3,500 311,067 700 
Hi Inn461 24,272 180 
Ni Hao Hotel247 18,369 181 
Elan Hotel561 27,244 1 
Ibis Hotel223 22,541 22 
Zleep Hotels15 1,733 13 
Midscale hotels 3,329   359,600   1,432  
Ibis Styles Hotel98 9,893 29 
Starway Hotel636 54,705 229 
JI Hotel1,980 229,990 890 
Orange Hotel615 65,012 284 
Upper midscale hotels 663   94,523   369  
Crystal Orange Hotel175 22,876 108 
CitiGO Hotel35 5,301 3 
Manxin Hotel127 11,994 70 
Madison Hotel80 10,447 57 
Mercure Hotel157 25,907 56 
Novotel Hotel21 5,415 18 
IntercityHotel(5)59 11,326 53 
MAXX(6)9 1,257 4 
Upscale hotels 132   20,789   64  
Jaz in the City3 587 1 
Joya Hotel7 1,234 - 
Blossom House59 2,750 51 
Grand Mercure Hotel9 1,823 3 
Steigenberger Hotels & Resorts(7)54 14,395 9 
Luxury hotels 16   2,360   2  
Steigenberger Icon(8)9 1,847 1 
Song Hotels7 513 1 
Others 10   3,258   6  
Other hotels(9)10 3,258 6 
Total 9,157   885,756   2,970  
(5) As of September 30, 2023, 6 operational hotels and 41 pipeline hotels of IntercityHotel were in China.(6) As of September 30, 2023, 4 operational hotels and 4 pipeline hotels of MAXX were in China.(7) As of September 30, 2023, 11 operational hotels and 3 pipeline hotels of Steigenberger Hotels & Resorts were in China.(8) As of September 30, 2023, 3 operational hotels of Steigenberger Icon were in China.(9) Other hotels include other partner hotels and other hotel brands in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House).
 

About H World Group LimitedOriginated in China, H World Group Limited is a key player in the global hotel industry. As of September 30, 2023, H World operated 9,157 hotels with 885,756 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.

H World’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, H World directly operates hotels typically located on leased or owned properties. Under the manachise model, H World manages manachised hotels through the on-site hotel managers that H World appoints, and H World collects fees from franchisees. Under the franchise model, H World provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. H World applies a consistent standard and platform across all of its hotels. As of September 30, 2023, H World operates 12 percent of its hotel rooms under lease and ownership model, and 88 percent under manachise and franchise model.

For more information, please visit H World’s website: https://ir.hworld.com.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; economic conditions; the regulatory environment; our ability to attract and retain customers and leverage our brands; trends and competition in the lodging industry; the expected growth of demand for lodging; and other factors and risks detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results.

H World undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contact InformationInvestor RelationsTel: +86 (21) 6195 9561Email: ir@hworld.comhttps://ir.hworld.com

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Source: H World Group Limited

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