- A total of 9,394 hotels or 912,444 hotel rooms in operation as of
December 31, 2023 . - Hotel turnover1 increased 55.0% year-over-year to
RMB20.4 billion in the fourth quarter of 2023. Excluding Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”), hotel turnover increased 60.6% year-over-year in the fourth quarter of 2023 and increased 65.9% year-over-year for the full year of 2023. - Revenue increased 50.7% year-over-year to
RMB5.6 billion (US$786 million )2 in the fourth quarter of 2023, surpassing the revenue guidance previously announced of a 41% to 45% increase compared to the fourth quarter of 2022, and increased 57.9% year-over-year toRMB21.9 billion (US$3.1 billion ) for the full year of 2023. Revenue from the Legacy-Huazhu segment in the fourth quarter of 2023 wasRMB4.4 billion , which increased 59.0% year-over-year, exceeding the revenue guidance previously announced of a 48% to 52% increase. - Net income attributable to
H World Group Limited wasRMB743 million (US$105 million ) in the fourth quarter of 2023, compared with a net loss attributable toH World Group Limited ofRMB124 million in the fourth quarter of 2022 and a net income attributable toH World Group Limited ofRMB1.3 billion in the previous quarter. Net income attributable toH World Group Limited wasRMB4.1 billion (US$575 million ) for the full year of 2023, compared with a net loss attributable toH World Group Limited ofRMB1.8 billion for the full year of 2022. Net income attributable toH World Group Limited from the Legacy-Huazhu segment wasRMB827 million in the fourth quarter of 2023, compared with a net loss attributable toH World Group Limited from the Legacy-Huazhu segment ofRMB84 million in the fourth quarter of 2022 and a net income attributable toH World Group Limited from the Legacy-Huazhu segment ofRMB1.4 billion in the previous quarter. Net income attributable toH World Group Limited from the Legacy-Huazhu segment wasRMB4.4 billion for the full year of 2023, compared with a net loss attributable toH World Group Limited from the Legacy-Huazhu segment ofRMB1.4 billion for the full year of 2022. - EBITDA (non-GAAP) in the fourth quarter of 2023 was
RMB1.4 billion (US$191 million ), compared withRMB529 million in the fourth quarter of 2022 andRMB2.1 billion in the previous quarter. EBITDA (non-GAAP) for the full year of 2023 wasRMB6.8 billion (US$961 million ), compared withRMB164 million for the full year of 2022. - Adjusted EBITDA (non-GAAP), which excluded share-based compensation expenses and gains (losses) from fair value changes of equity securities from EBITDA (non-GAAP), was
RMB1.3 billion (US$178 million ) in the fourth quarter of 2023, compared withRMB398 million in the fourth quarter of 2022 andRMB2.2 billion in the previous quarter. Adjusted EBITDA (non-GAAP) for the full year of 2023 wasRMB6.9 billion (US$966 million ), compared withRMB610 million for the full year of 2022. - Adjusted EBITDA is a segment measure. Adjusted EBITDA from the Legacy-Huazhu segment was
RMB1.3 billion in the fourth quarter of 2023, compared withRMB397 million in the fourth quarter of 2022 andRMB2.1 billion in the previous quarter. Adjusted EBITDA from the Legacy-Huazhu segment wasRMB6.8 billion for the full year of 2023, compared withRMB728 million for the full year of 2022. - For the first quarter of 2024,
H World expects its revenue growth to be in the range of 12%-16% compared to the first quarter of 2023 or in the range of 11%-15% excluding DH. - For the full year of 2024,
H World expects revenue growth to be in the range of 8%-12% compared to the full year of 2023, or in the range of 8%-12% excluding DH. - For the full year of 2024,
H World expects to open around 1,800 hotels and close around 650 hotels.
As of
Legacy-Huazhu – Fourth Quarter and Full Year of 2023 Operational Highlights
As of
- The ADR was
RMB284 in the fourth quarter of 2023, compared withRMB240 in the fourth quarter of 2022,RMB324 in the previous quarter, andRMB232 in the fourth quarter of 2019. - The occupancy rate for all the Legacy-Huazhu hotels in operation was 80.5% in the fourth quarter of 2023, compared with 66.2% in the fourth quarter of 2022, 85.9% in the previous quarter, and 82.2% in the fourth quarter of 2019.
- Blended RevPAR was
RMB229 in the fourth quarter of 2023, compared withRMB159 in the fourth quarter of 2022,RMB278 in the previous quarter, andRMB191 in the fourth quarter of 2019. - For all the Legacy-Huazhu hotels which had been in operation for at least 18 months, the same-hotel RevPAR was
RMB230 in the fourth quarter of 2023, representing a 40.8% increase fromRMB164 in the fourth quarter of 2022, with a 16.7% increase in same-hotel ADR and a 13.9 percentage-point increase in same-hotel occupancy rate.
Legacy-DH – Fourth Quarter and Full Year of 2023 Operational Highlights
As of
- The ADR was
EUR115 in the fourth quarter of 2023, compared withEUR122 in the fourth quarter of 2022 andEUR114 in the previous quarter. - The occupancy rate for all Legacy-DH hotels in operation was 63.8% in the fourth quarter of 2023, compared with 59.3% in the fourth quarter of 2022 and 69.0% in the previous quarter.
- Blended RevPAR was
EUR73 in the fourth quarter of 2023, compared withEUR72 in the fourth quarter of 2022 andEUR79 in the previous quarter.
“Regarding our business outside
Fourth Quarter and Full year of 2023 Unaudited Financial Results
(RMB in millions) | Q4 2022 | Q3 2023 | Q4 2023 | 2022FY | 2023FY |
Revenue: | |||||
Leased and owned hotels | 2,450 | 3,878 | 3,453 | 9,148 | 13,796 |
Manachised and franchised hotels | 1,158 | 2,268 | 2,016 | 4,405 | 7,694 |
Others | 98 | 142 | 116 | 309 | 392 |
Total revenue | 3,706 | 6,288 | 5,585 | 13,862 | 21,882 |
Revenue in the fourth quarter of 2023 was
Revenue for the full year of 2023 was
Revenue from leased and owned hotels in the fourth quarter of 2023 was
For the full year of 2023, revenue from our leased and owned hotels was
Revenue from manachised and franchised hotels in the fourth quarter of 2023 was
For the full year of 2023, revenue from manachised and franchised hotels was
Other revenue represents revenue generated from businesses other than our hotel operations, which mainly includes revenue from the provision of IT products and services and Huazhu Mall™ and other revenue from the Legacy-DH segment, totaling
For the full year of 2023, other revenue was
(RMB in millions) | Q4 2022 | Q3 2023 | Q4 2023 | 2022FY | 2023FY | |||||
Operating costs and expenses: | ||||||||||
Hotel operating costs | (3,430 | ) | (3,613 | ) | (3,996 | ) | (12,260 | ) | (14,341 | ) |
Other operating costs | (22 | ) | (7 | ) | (10 | ) | (62 | ) | (34 | ) |
Selling and marketing expenses | (169 | ) | (289 | ) | (326 | ) | (613 | ) | (1,072 | ) |
General and administrative expenses | (440 | ) | (539 | ) | (644 | ) | (1,675 | ) | (2,086 | ) |
Pre-opening expenses | (14 | ) | (11 | ) | (3 | ) | (95 | ) | (35 | ) |
Total operating costs and expenses | (4,075 | ) | (4,459 | ) | (4,979 | ) | (14,705 | ) | (17,568 | ) |
Hotel operating costs in the fourth quarter of 2023 were
For the full year of 2023, hotel operating costs were
Selling and marketing expenses in the fourth quarter of 2023 were
For the full year of 2023, selling and marketing expenses were
General and administrative expenses in the fourth quarter of 2023 were
For the full year of 2023, general and administrative expenses were
Pre-opening expenses in the fourth quarter of 2023 were primarily related to the Legacy-Huazhu segment and totaled
Pre-opening expenses for the full year of 2023 were
Other operating income, net in the fourth quarter of 2023 was
Other operating income, net for the full year of 2023 was
Income from operations in the fourth quarter of 2023 was
Income from operations for the full year of 2023 was
Operating margin, defined as income from operations as a percentage of revenue, was 13.6% in the fourth quarter of 2023, compared with a negative 2.5% in the fourth quarter of 2022 and 30.4% for the previous quarter. Operating margin from the Legacy-Huazhu segment in the fourth quarter of 2023 was 18.7%, compared with a negative 0.1% in the fourth quarter of 2022 and 37.3% in the previous quarter.
Operating margin for the full year of 2023 was 21.5%, compared with a negative 2.1% for the full year of 2022. Operating margin from Legacy-Huazhu for the full year of 2023 was 28.1%, compared with 0.5% for the full year of 2022.
Other income, net in the fourth quarter of 2023 was
Other income, net for the full year of 2023 was
Gains from fair value changes of equity securities in the fourth quarter of 2023 were
For the full year of 2023, gains from fair value changes of equity securities were
Income tax expense in the fourth quarter of 2023 was
For the full year of 2023, income tax expense was
Net income attributable to
Net income attributable to
EBITDA (non-GAAP) in the fourth quarter of 2023 was
EBITDA (non-GAAP) for the full year of 2023 was
Cash flow. Operating cash inflow in the fourth quarter of 2023 was
Operating cash inflow for the full year of 2023 was
Cash, cash equivalents and restricted cash. As of
Debt financing. As of
Guidance
For the first quarter of 2024,
For the full year of 2024,
For the full year of 2024,
The above forecast reflects the Company’s current and preliminary view, which is subject to change.
Conference Call
H World’s management will host a conference call at
To join by phone, all participants must pre-register this conference call using the Participant Registration link of https://register.vevent.com/register/BI6c40e138e35f49faab0334b5e7db2048. Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN.
A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/55zwtf8m or the Company’s website at https://ir.hworld.com/news-and-events/events-calendar.
A replay of the conference call will be available for twelve months from the date of the conference at the Company’s website, https://ir.hworld.com/news-and-events/events-calendar.
Use of Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated financial results presented in accordance with
The Company believes that EBITDA is a useful financial metric to assess the operating and financial performance before the impact of investing and financing transactions and income taxes, given the significant investments that the Company has made in leasehold improvements, depreciation and amortization expense that comprise a significant portion of the Company’s cost structure. In addition, the Company believes that EBITDA is widely used by other companies in the lodging industry and may be used by investors as a measure of financial performance. The Company believes that EBITDA information provides investors with a useful tool for comparability between periods because it excludes depreciation and amortization expense attributable to capital expenditures. The Company also uses adjusted EBITDA to assess operating results of its hotels in operation. The Company believes that the exclusion of share-based compensation expenses and gains (losses) from fair value changes of equity securities helps facilitate year-over-year comparisons of the results of operations as the share-based compensation expenses and gains (losses) from fair value changes of equity securities may not be indicative of Company operating performance.
The Company believes that gains and losses from changes in fair value of equity securities are generally less significant in understanding the Company’s reported results or evaluating the economic performance of its businesses. These gains and losses have caused and may continue to cause significant volatility in reported periodic earnings.
Therefore, the Company believes adjusted EBITDA more closely reflects the financial performance capability of our hotels. The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that the Company’s future results will be unaffected by other charges and gains considered to be outside the ordinary course of business.
The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets (including land use rights), income tax, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Share-based compensation expenses and gains (losses) from fair value changes of equity securities have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of depreciation and amortization, interest income, interest expense, income tax expense, share-based compensation expenses, and gains (losses) from fair value changes of equity securities and other relevant items both in the reconciliations to the
The terms EBITDA and adjusted EBITDA are not defined under
Reconciliations of the Company’s non-GAAP financial measures, including EBITDA and adjusted EBITDA, to the consolidated statement of operations information are included at the end of this press release.
About
Originated in
H World’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model,
For more information, please visit H World’s website: https://ir.hworld.com.
Safe Harbor Statement Under the
—Financial Tables and Operational Data Follow—
Unaudited Condensed Consolidated Balance Sheets | ||||||||
RMB | RMB | US$3 | ||||||
(in millions) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 3,583 | 6,946 | 978 | |||||
Restricted cash | 1,503 | 764 | 108 | |||||
Short-term investments | 1,788 | 2,189 | 308 | |||||
Accounts receivable, net | 1,113 | 755 | 106 | |||||
Loan receivables - current, net | 134 | 184 | 26 | |||||
Amounts due from related parties, current | 178 | 210 | 30 | |||||
Inventories | 70 | 59 | 8 | |||||
Other current assets, net | 809 | 949 | 134 | |||||
Total current assets | 9,178 | 12,056 | 1,698 | |||||
Property and equipment, net | 6,784 | 6,097 | 859 | |||||
Intangible assets, net | 5,278 | 5,280 | 744 | |||||
Operating lease right-of-use assets | 28,970 | 25,658 | 3,614 | |||||
Finance lease right-of-use assets | 2,047 | 2,171 | 306 | |||||
Land use rights, net | 199 | 181 | 25 | |||||
Long-term investments | 1,945 | 2,564 | 361 | |||||
5,195 | 5,318 | 749 | ||||||
Amounts due from related parties, non-current | 6 | 25 | 3 | |||||
Loan receivables, net | 124 | 163 | 23 | |||||
Other assets, net | 688 | 663 | 93 | |||||
Deferred tax assets | 1,093 | 1,043 | 147 | |||||
Assets held for sale | - | 2,313 | 326 | |||||
Total assets | 61,507 | 63,532 | 8,948 | |||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt | 3,288 | 4,049 | 570 | |||||
Accounts payable | 1,171 | 1,019 | 143 | |||||
Amounts due to related parties | 71 | 77 | 11 | |||||
Salary and welfare payables | 657 | 1,067 | 150 | |||||
Deferred revenue | 1,308 | 1,637 | 231 | |||||
Operating lease liabilities, current | 3,773 | 3,609 | 508 | |||||
Finance lease liabilities, current | 41 | 45 | 6 | |||||
Accrued expenses and other current liabilities | 2,337 | 3,261 | 459 | |||||
Dividends payable | - | 2,085 | 294 | |||||
Income tax payable | 500 | 562 | 78 | |||||
Total current liabilities | 13,146 | 17,411 | 2,450 | |||||
Long-term debt | 6,635 | 1,265 | 179 | |||||
Operating lease liabilities, non-current | 27,637 | 24,215 | 3,411 | |||||
Finance lease liabilities, non-current | 2,513 | 2,697 | 380 | |||||
Deferred revenue | 828 | 1,072 | 151 | |||||
Other long-term liabilities | 977 | 1,118 | 157 | |||||
Deferred tax liabilities | 858 | 845 | 119 | |||||
Retirement benefit obligations | 110 | 124 | 18 | |||||
Liabilities held for sale | - | 2,536 | 358 | |||||
Total liabilities | 52,704 | 51,283 | 7,223 | |||||
Equity: | ||||||||
Ordinary shares | 0 | 0 | 0 | |||||
(441 | ) | (906 | ) | (128 | ) | |||
Additional paid-in capital | 10,138 | 11,861 | 1,671 | |||||
Retained earnings | (1,200 | ) | 794 | 112 | ||||
Accumulated other comprehensive income | 232 | 386 | 54 | |||||
8,729 | 12,135 | 1,709 | ||||||
Noncontrolling interest | 74 | 114 | 16 | |||||
Total equity | 8,803 | 12,249 | 1,725 | |||||
Total liabilities and equity | 61,507 | 63,532 | 8,948 |
Unaudited Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
(in millions, except shares, per share and per ADS data) | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Leased and owned hotels | 2,450 | 3,878 | 3,453 | 486 | 9,148 | 13,796 | 1,943 | |||||||||||||
Manachised and franchised hotels | 1,158 | 2,268 | 2,016 | 284 | 4,405 | 7,694 | 1,084 | |||||||||||||
Others | 98 | 142 | 116 | 16 | 309 | 392 | 55 | |||||||||||||
Total revenue | 3,706 | 6,288 | 5,585 | 786 | 13,862 | 21,882 | 3,082 | |||||||||||||
Operating costs and expenses: | ||||||||||||||||||||
Hotel operating costs: | ||||||||||||||||||||
Rents | (956 | ) | (1,118 | ) | (1,033 | ) | (146 | ) | (3,927 | ) | (4,290 | ) | (604 | ) | ||||||
Utilities | (162 | ) | (185 | ) | (160 | ) | (23 | ) | (603 | ) | (685 | ) | (97 | ) | ||||||
Personnel costs | (981 | ) | (1,186 | ) | (1,331 | ) | (187 | ) | (3,683 | ) | (4,684 | ) | (660 | ) | ||||||
Depreciation and amortization | (351 | ) | (330 | ) | (320 | ) | (45 | ) | (1,414 | ) | (1,329 | ) | (187 | ) | ||||||
Consumables, food and beverage | (289 | ) | (353 | ) | (361 | ) | (51 | ) | (1,026 | ) | (1,327 | ) | (187 | ) | ||||||
Others | (691 | ) | (441 | ) | (791 | ) | (111 | ) | (1,607 | ) | (2,026 | ) | (286 | ) | ||||||
Total hotel operating costs | (3,430 | ) | (3,613 | ) | (3,996 | ) | (563 | ) | (12,260 | ) | (14,341 | ) | (2,021 | ) | ||||||
Other operating costs | (22 | ) | (7 | ) | (10 | ) | (1 | ) | (62 | ) | (34 | ) | (5 | ) | ||||||
Selling and marketing expenses | (169 | ) | (289 | ) | (326 | ) | (46 | ) | (613 | ) | (1,072 | ) | (151 | ) | ||||||
General and administrative expenses | (440 | ) | (539 | ) | (644 | ) | (91 | ) | (1,675 | ) | (2,086 | ) | (294 | ) | ||||||
Pre-opening expenses | (14 | ) | (11 | ) | (3 | ) | (0 | ) | (95 | ) | (35 | ) | (5 | ) | ||||||
Total operating costs and expenses | (4,075 | ) | (4,459 | ) | (4,979 | ) | (701 | ) | (14,705 | ) | (17,568 | ) | (2,476 | ) | ||||||
- | - | (4 | ) | (1 | ) | - | (4 | ) | (1 | ) | ||||||||||
Other operating income (expense), net | 276 | 80 | 155 | 22 | 549 | 404 | 57 | |||||||||||||
Income (loss) from operations | (93 | ) | 1,909 | 757 | 106 | (294 | ) | 4,714 | 662 | |||||||||||
Interest income | 27 | 62 | 85 | 12 | 87 | 248 | 35 | |||||||||||||
Interest expense | (117 | ) | (85 | ) | (76 | ) | (11 | ) | (409 | ) | (385 | ) | (54 | ) | ||||||
Other income (expense), net | (65 | ) | 24 | 2 | 0 | 10 | 573 | 81 | ||||||||||||
Gains (losses) from fair value changes of equity securities | 140 | (9 | ) | 124 | 18 | (359 | ) | 109 | 15 | |||||||||||
Foreign exchange gains (losses) | 181 | (148 | ) | 140 | 20 | (641 | ) | 90 | 13 | |||||||||||
Income (loss) before income taxes | 73 | 1,753 | 1,032 | 145 | (1,606 | ) | 5,349 | 752 | ||||||||||||
Income tax (expense) benefit | (203 | ) | (421 | ) | (281 | ) | (39 | ) | (207 | ) | (1,204 | ) | (168 | ) | ||||||
Income (Loss) from equity method investments | 3 | 20 | (8 | ) | (1 | ) | (36 | ) | (14 | ) | (2 | ) | ||||||||
Net income (loss) | (127 | ) | 1,352 | 743 | 105 | (1,849 | ) | 4,131 | 582 | |||||||||||
Net (income) loss attributable to noncontrolling interest | 3 | (15 | ) | (0 | ) | (0 | ) | 28 | (46 | ) | (7 | ) | ||||||||
Net income (loss) attributable to | (124 | ) | 1,337 | 743 | 105 | (1,821 | ) | 4,085 | 575 | |||||||||||
Gains (losses) arising from defined benefit plan, net of tax | 22 | - | (9 | ) | (1 | ) | 22 | (9 | ) | (1 | ) | |||||||||
Gains(losses) from fair value changes of debt securities, net of tax | 57 | - | (31 | ) | (4 | ) | 57 | (12 | ) | (2 | ) | |||||||||
Foreign currency translation adjustments, net of tax | 82 | (24 | ) | (23 | ) | (3 | ) | 112 | 175 | 25 | ||||||||||
Comprehensive income (loss) | 34 | 1,328 | 680 | 97 | (1,658 | ) | 4,285 | 604 | ||||||||||||
Comprehensive (income) loss attributable to noncontrolling interest | 3 | (15 | ) | (0 | ) | (0 | ) | 28 | (46 | ) | (7 | ) | ||||||||
Comprehensive income (loss) attributable to | 37 | 1,313 | 680 | 97 | (1,630 | ) | 4,239 | 597 | ||||||||||||
Earnings (Losses) per share: | ||||||||||||||||||||
Basic | (0.04 | ) | 0.42 | 0.23 | 0.03 | (0.59 | ) | 1.28 | 0.18 | |||||||||||
Diluted | (0.04 | ) | 0.41 | 0.23 | 0.03 | (0.59 | ) | 1.25 | 0.18 | |||||||||||
Earnings (Losses) per ADS: | ||||||||||||||||||||
Basic | (0.40 | ) | 4.19 | 2.33 | 0.33 | (5.85 | ) | 12.83 | 1.81 | |||||||||||
Diluted | (0.40 | ) | 4.07 | 2.31 | 0.33 | (5.85 | ) | 12.55 | 1.77 | |||||||||||
Weighted average number of shares used in computation: | ||||||||||||||||||||
Basic | 3,109,528,097 | 3,188,274,127 | 3,182,802,226 | 3,182,802,226 | 3,111,196,757 | 3,183,163,131 | 3,183,163,131 | |||||||||||||
Diluted | 3,109,528,097 | 3,355,586,429 | 3,217,737,686 | 3,217,737,686 | 3,111,196,757 | 3,351,421,211 | 3,351,421,211 |
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
(in millions) | ||||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income (loss) | (127 | ) | 1,352 | 743 | 105 | (1,849 | ) | 4,131 | 582 | |||||||||||
Share-based compensation | 9 | 44 | 38 | 5 | 87 | 143 | 20 | |||||||||||||
Depreciation and amortization, and other | 369 | 358 | 346 | 49 | 1,513 | 1,448 | 204 | |||||||||||||
Impairment loss | 390 | 5 | 430 | 61 | 491 | 516 | 73 | |||||||||||||
Loss (income) from equity method investments, net of dividends | (3 | ) | (18 | ) | 8 | 1 | 85 | 72 | 10 | |||||||||||
Investment (income) loss and foreign exchange (gain) loss | (362 | ) | 167 | (452 | ) | (64 | ) | 662 | (925 | ) | (130 | ) | ||||||||
Changes in operating assets and liabilities | 1,008 | (583 | ) | 1,359 | 191 | 166 | 2,508 | 352 | ||||||||||||
Other | (242 | ) | (144 | ) | (61 | ) | (9 | ) | 409 | (219 | ) | (31 | ) | |||||||
Net cash provided by (used in) operating activities | 1,042 | 1,181 | 2,411 | 339 | 1,564 | 7,674 | 1,080 | |||||||||||||
Investing activities: | ||||||||||||||||||||
Capital expenditures | (229 | ) | (196 | ) | (313 | ) | (44 | ) | (1,053 | ) | (901 | ) | (127 | ) | ||||||
Acquisitions, net of cash received | 2 | - | (0 | ) | (0 | ) | (57 | ) | (0 | ) | (0 | ) | ||||||||
Purchase of investments | (23 | ) | (1,846 | ) | (700 | ) | (99 | ) | (401 | ) | (3,509 | ) | (494 | ) | ||||||
Proceeds from maturity/sale and return of investments | 370 | - | 771 | 109 | 937 | 2,972 | 419 | |||||||||||||
Loan advances | (30 | ) | (48 | ) | (140 | ) | (20 | ) | (182 | ) | (262 | ) | (37 | ) | ||||||
Loan collections | 52 | 39 | 36 | 5 | 224 | 147 | 21 | |||||||||||||
Other | 7 | 2 | 69 | 11 | 10 | 76 | 11 | |||||||||||||
Net cash provided by (used in) investing activities | 149 | (2,049 | ) | (277 | ) | (38 | ) | (522 | ) | (1,477 | ) | (207 | ) | |||||||
Financing activities: | ||||||||||||||||||||
Net proceeds from issuance of ordinary shares | - | - | - | - | - | 1,973 | 278 | |||||||||||||
Payment of share repurchase | - | - | (848 | ) | (119 | ) | (334 | ) | (848 | ) | (119 | ) | ||||||||
Proceeds from debt | 2,288 | 71 | 370 | 52 | 7,101 | 1,169 | 165 | |||||||||||||
Repayment of debt | (3,670 | ) | (666 | ) | (204 | ) | (29 | ) | (7,781 | ) | (5,862 | ) | (826 | ) | ||||||
Dividend paid | - | - | - | - | (416 | ) | - | - | ||||||||||||
Other | (19 | ) | (18 | ) | (62 | ) | (9 | ) | 36 | (152 | ) | (21 | ) | |||||||
Net cash provided by (used in) financing activities | (1,401 | ) | (613 | ) | (744 | ) | (105 | ) | (1,394 | ) | (3,720 | ) | (523 | ) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 79 | (59 | ) | 41 | 6 | 297 | 164 | 22 | ||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash, including cash classified within assets held for sale | (131 | ) | (1,540 | ) | 1,431 | 202 | (55 | ) | 2,641 | 372 | ||||||||||
Less: net increase (decrease) in cash and cash equivalents classified within assets held for sale | - | - | 17 | 2 | - | 17 | 2 | |||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period | 5,217 | 7,836 | 6,296 | 886 | 5,141 | 5,086 | 716 | |||||||||||||
Cash, cash equivalents and restricted cash at the end of the period | 5,086 | 6,296 | 7,710 | 1,086 | 5,086 | 7,710 | 1,086 |
Unaudited Reconciliation of GAAP and Non-GAAP Results | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
(in millions, except shares, per share and per ADS data) | ||||||||||||||||||||
Net income (loss) attributable to | (124 | ) | 1,337 | 743 | 105 | (1,821 | ) | 4,085 | 575 | |||||||||||
Share-based compensation expenses | 9 | 44 | 38 | 5 | 87 | 143 | 20 | |||||||||||||
(Gains) losses from fair value changes of equity securities | (140 | ) | 9 | (124 | ) | (18 | ) | 359 | (109 | ) | (15 | ) | ||||||||
Adjusted net income (loss) attributable to | (255 | ) | 1,390 | 657 | 92 | (1,375 | ) | 4,119 | 580 | |||||||||||
Adjusted earnings (losses) per share (non-GAAP) | ||||||||||||||||||||
Basic | (0.08 | ) | 0.44 | 0.21 | 0.03 | (0.44 | ) | 1.29 | 0.18 | |||||||||||
Diluted | (0.08 | ) | 0.42 | 0.20 | 0.03 | (0.44 | ) | 1.26 | 0.18 | |||||||||||
Adjusted earnings (losses) per ADS (non-GAAP) | ||||||||||||||||||||
Basic | (0.82 | ) | 4.36 | 2.06 | 0.29 | (4.42 | ) | 12.94 | 1.82 | |||||||||||
Diluted | (0.82 | ) | 4.23 | 2.04 | 0.29 | (4.42 | ) | 12.65 | 1.78 | |||||||||||
Weighted average number of shares used in computation | ||||||||||||||||||||
Basic | 3,109,528,097 | 3,188,274,127 | 3,182,802,226 | 3,182,802,226 | 3,111,196,757 | 3,183,163,131 | 3,183,163,131 | |||||||||||||
Diluted | 3,109,528,097 | 3,355,586,429 | 3,217,737,686 | 3,217,737,686 | 3,111,196,757 | 3,351,421,211 | 3,351,421,211 | |||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
(in millions, except per share and per ADS data) | ||||||||||||||||||||
Net income (loss) attributable to | (124 | ) | 1,337 | 743 | 105 | (1,821 | ) | 4,085 | 575 | |||||||||||
Interest income | (27 | ) | (62 | ) | (85 | ) | (12 | ) | (87 | ) | (248 | ) | (35 | ) | ||||||
Interest expense | 117 | 85 | 76 | 11 | 409 | 385 | 54 | |||||||||||||
Income tax expense | 203 | 421 | 281 | 39 | 207 | 1,204 | 168 | |||||||||||||
Depreciation and amortization | 360 | 352 | 341 | 48 | 1,456 | 1,414 | 199 | |||||||||||||
EBITDA (non-GAAP) | 529 | 2,133 | 1,356 | 191 | 164 | 6,840 | 961 | |||||||||||||
Share-based compensation | 9 | 44 | 38 | 5 | 87 | 143 | 20 | |||||||||||||
(Gains) losses from fair value changes of equity securities | (140 | ) | 9 | (124 | ) | (18 | ) | 359 | (109 | ) | (15 | ) | ||||||||
Adjusted EBITDA (non-GAAP) | 398 | 2,186 | 1,270 | 178 | 610 | 6,874 | 966 |
Segment Financial Summary | |||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||
Legacy- Huazhu | Legacy- DH | Legacy- Huazhu | Legacy- DH | Legacy- Huazhu | Legacy- DH | ||||||
RMB | RMB | RMB | RMB | RMB | RMB | ||||||
(in millions) | (in millions) | (in millions) | |||||||||
Leased and owned hotels | 1,537 | 913 | 2,748 | 1,130 | 2,288 | 1,165 | |||||
Manachised and franchised hotels | 1,130 | 28 | 2,238 | 30 | 1,992 | 24 | |||||
Others | 90 | 8 | 127 | 15 | 104 | 12 | |||||
Revenue | 2,757 | 949 | 5,113 | 1,175 | 4,384 | 1,201 | |||||
Depreciation and amortization | 295 | 65 | 286 | 66 | 282 | 59 | |||||
Adjusted EBITDA | 397 | 1 | 2,131 | 55 | 1,270 | 0 |
Segment Financial Summary | ||||||||
Year Ended | Year Ended | |||||||
Legacy- Huazhu | Legacy- DH | Legacy- Huazhu | Legacy- DH | |||||
RMB | RMB | RMB | RMB | |||||
(in millions) | (in millions) | |||||||
Leased and owned hotels | 6,062 | 3,086 | 9,522 | 4,274 | ||||
Manachised and franchised hotels | 4,324 | 81 | 7,596 | 98 | ||||
Others | 269 | 40 | 320 | 72 | ||||
Revenue | 10,655 | 3,207 | 17,438 | 4,444 | ||||
Depreciation and amortization | 1,212 | 244 | 1,166 | 248 | ||||
Adjusted EBITDA | 728 | (118 | ) | 6,787 | 87 |
Operating Results: Legacy-Huazhu(1)
Number of hotels | Number of rooms | |||||||
Opened in Q4 2023 | Closed(2) in Q4 2023 | Net added in Q4 2023 | As of 2023 | As of 2023 | ||||
Leased and owned hotels | 4 | (5 | ) | (1 | ) | 607 | 86,691 | |
Manachised and franchised hotels | 456 | (220 | ) | 236 | 8,656 | 798,939 | ||
Total | 460 | (225 | ) | 235 | 9,263 | 885,630 | ||
(1) Legacy-Huazhu refers to (2) The reasons for hotel closures mainly included non-compliance with our brand standards, operating losses, and property-related issues. In Q4 2023, we temporarily closed 18 hotels for brand upgrade and business model change purposes. |
As of | ||
Number of hotels | Unopened hotels in pipeline | |
Economy hotels | 4,968 | 1,106 |
Leased and owned hotels | 329 | 0 |
Manachised and franchised hotels | 4,639 | 1,106 |
Midscale, upper-midscale hotels and others | 4,295 | 1,955 |
Leased and owned hotels | 278 | 9 |
Manachised and franchised hotels | 4,017 | 1,946 |
Total | 9,263 | 3,061 |
Operational hotels excluding hotels under requisition | ||||||||
For the quarter ended | ||||||||
yoy | ||||||||
2022 | 2023 | 2023 | change | |||||
Average daily room rate (in RMB) | ||||||||
Leased and owned hotels | 279 | 406 | 356 | 27.7% | ||||
Manachised and franchised hotels | 236 | 314 | 276 | 17.1% | ||||
Blended | 240 | 324 | 284 | 18.3% | ||||
Occupancy rate (as a percentage) | ||||||||
Leased and owned hotels | 63.1% | 87.8% | 83.7% | +20.6 p.p. | ||||
Manachised and franchised hotels | 66.6% | 85.7% | 80.1% | +13.5 p.p. | ||||
Blended | 66.2% | 85.9% | 80.5% | +14.3 p.p. | ||||
RevPAR (in RMB) | ||||||||
Leased and owned hotels | 176 | 356 | 298 | 69.4% | ||||
Manachised and franchised hotels | 157 | 269 | 221 | 40.9% | ||||
Blended | 159 | 278 | 229 | 43.8% |
For the quarter ended | ||||||
yoy | ||||||
2019 | 2023 | change | ||||
Average daily room rate (in RMB) | ||||||
Leased and owned hotels | 277 | 356 | 28.4% | |||
Manachised and franchised hotels | 223 | 276 | 24.1% | |||
Blended | 232 | 284 | 22.5% | |||
Occupancy rate (as a percentage) | ||||||
Leased and owned hotels | 84.7% | 83.7% | -1.1 p.p. | |||
Manachised and franchised hotels | 81.6% | 80.1% | -1.5 p.p. | |||
Blended | 82.2% | 80.5% | -1.7 p.p. | |||
RevPAR (in RMB) | ||||||
Leased and owned hotels | 235 | 298 | 26.8% | |||
Manachised and franchised hotels | 182 | 221 | 21.8% | |||
Blended | 191 | 229 | 20.0% |
Operational hotels excluding hotels under requisition | ||||||
For full year ended | ||||||
yoy | ||||||
2022 | 2023 | change | ||||
Average daily room rate (in RMB) | ||||||
Leased and owned hotels | 272 | 372 | 36.9% | |||
Manachised and franchised hotels | 231 | 290 | 25.3% | |||
Blended | 236 | 299 | 26.6% | |||
Occupancy rate (as a percentage) | ||||||
Leased and owned hotels | 63.9% | 82.8% | +18.9 p.p. | |||
Manachised and franchised hotels | 67.1% | 80.8% | +13.8 p.p. | |||
Blended | 66.7% | 81.1% | +14.4 p.p. | |||
RevPAR (in RMB) | ||||||
Leased and owned hotels | 174 | 308 | 77.4% | |||
Manachised and franchised hotels | 155 | 234 | 51.0% | |||
Blended | 157 | 242 | 53.9% |
For full year ended | ||||||
yoy | ||||||
2019 | 2023 | change | ||||
Average daily room rate (in RMB) | ||||||
Leased and owned hotels | 276 | 372 | 34.5% | |||
Manachised and franchised hotels | 224 | 290 | 29.1% | |||
Blended | 234 | 299 | 27.4% | |||
Occupancy rate (as a percentage) | ||||||
Leased and owned hotels | 87.0% | 82.8% | -4.1p.p. | |||
Manachised and franchised hotels | 83.8% | 80.8% | -2.9p.p. | |||
Blended | 84.4% | 81.1% | -3.3p.p. | |||
RevPAR (in RMB) | ||||||
Leased and owned hotels | 240 | 308 | 28.1% | |||
Manachised and franchised hotels | 188 | 234 | 24.6% | |||
Blended | 198 | 242 | 22.4% |
Same-hotel operational data by class | |||||||||||||||
Mature hotels in operation for more than 18 months (excluding hotels under requisition) | |||||||||||||||
Number of hotels | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
As of | For the quarter | yoy | For the quarter | yoy | For the quarter | yoy | |||||||||
ended | change | ended | change | ended | change | ||||||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | (p.p.) | |||||||
Economy hotels | 3,641 | 3,641 | 129 | 173 | 34.5 | % | 184 | 212 | 14.9 | % | 69.8 | % | 81.7 | % | +11.9 |
Leased and owned hotels | 318 | 318 | 134 | 209 | 56.6 | % | 200 | 248 | 24.1 | % | 66.8 | % | 84.3 | % | +17.5 |
Manachised and franchised hotels | 3,323 | 3,323 | 128 | 168 | 31.3 | % | 182 | 206 | 13.3 | % | 70.2 | % | 81.3 | % | +11.1 |
Midscale, upper-midscale hotels and others | 2,898 | 2,898 | 197 | 283 | 44.2 | % | 302 | 351 | 16.0 | % | 65.0 | % | 80.8 | % | +15.8 |
Leased and owned hotels | 250 | 250 | 223 | 370 | 66.0 | % | 364 | 445 | 22.2 | % | 61.3 | % | 83.2 | % | +22.0 |
Manachised and franchised hotels | 2,648 | 2,648 | 193 | 271 | 40.5 | % | 294 | 337 | 14.4 | % | 65.5 | % | 80.5 | % | +14.9 |
Total | 6,539 | 6,539 | 164 | 230 | 40.8 | % | 243 | 283 | 16.7 | % | 67.3 | % | 81.2 | % | +13.9 |
Same-hotel operational data by class | |||||||||||||||
Mature hotels in operation for more than 18 months (excluding hotels under requisition) | |||||||||||||||
Number of hotels | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
As of | For the year | yoy | For the year | yoy | For the year | yoy | |||||||||
ended | change | ended | change | ended | change | ||||||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | (p.p.) | |||||||
Economy hotels | 3,641 | 3,641 | 129 | 186 | 44.4 | % | 180 | 225 | 25.1 | % | 71.5 | % | 82.5 | % | +11.0 |
Leased and owned hotels | 318 | 318 | 135 | 225 | 65.9 | % | 196 | 266 | 36.0 | % | 69.2 | % | 84.3 | % | +15.2 |
Manachised and franchised hotels | 3,323 | 3,323 | 128 | 180 | 41.0 | % | 178 | 219 | 23.2 | % | 71.8 | % | 82.2 | % | +10.4 |
Midscale, upper-midscale hotels and others | 2,898 | 2,898 | 198 | 301 | 51.9 | % | 304 | 369 | 21.7 | % | 65.2 | % | 81.4 | % | +16.2 |
Leased and owned hotels | 250 | 250 | 219 | 381 | 74.0 | % | 365 | 465 | 27.5 | % | 60.1 | % | 82.0 | % | +21.9 |
Manachised and franchised hotels | 2,648 | 2,648 | 195 | 288 | 48.0 | % | 295 | 354 | 20.1 | % | 66.0 | % | 81.3 | % | +15.3 |
Total | 6,539 | 6,539 | 163 | 244 | 49.4 | % | 239 | 298 | 24.6 | % | 68.3 | % | 81.9 | % | +13.6 |
Operating Results: Legacy-DH(3)
Number of hotels | Number of rooms | Unopened hotels in pipeline | ||||||
Opened in Q4 2023 | Closed in Q4 2023 | Net added in Q4 2023 | As of December 31, 2023(4) | As of 2023 | As of 2023 | |||
Leased hotels | 2 | - | 2 | 84 | 16,303 | 21 | ||
Manachised and franchised hotels | - | - | - | 47 | 10,511 | 16 | ||
Total | 2 | - | 2 | 131 | 26,814 | 37 | ||
(3) Legacy-DH refers to DH. (4) As of |
For the quarter ended | ||||||||
yoy | ||||||||
2022 | 2023 | 2023 | change | |||||
Average daily room rate (in EUR) | ||||||||
Leased hotels | 114 | 113 | 118 | 3.1% | ||||
Manachised and franchised hotels | 134 | 116 | 111 | -17.3% | ||||
Blended | 122 | 114 | 115 | -5.9% | ||||
Occupancy rate (as a percentage) | ||||||||
Leased hotels | 60.0% | 71.4% | 64.7% | +4.7 p.p. | ||||
Manachised and franchised hotels | 58.3% | 65.5% | 62.6% | +4.3 p.p. | ||||
Blended | 59.3% | 69.0% | 63.8% | +4.5 p.p. | ||||
RevPAR (in EUR) | ||||||||
Leased hotels | 68 | 81 | 76 | 11.2% | ||||
Manachised and franchised hotels | 78 | 76 | 69 | -11.2% | ||||
Blended | 72 | 79 | 73 | 1.3% |
For full year ended | ||||||
yoy | ||||||
2022 | 2023 | change | ||||
Average daily room rate (in EUR) | ||||||
Leased and owned hotels | 110 | 115 | 4.6% | |||
Manachised and franchised hotels | 113 | 110 | -3.2% | |||
Blended | 111 | 113 | 1.4% | |||
Occupancy Rate (as a percentage) | ||||||
Leased and owned hotels | 56.0% | 64.7% | +8.7 p.p. | |||
Manachised and franchised hotels | 56.4% | 61.6% | +5.1 p.p. | |||
Blended | 56.2% | 63.4% | +7.2 p.p. | |||
RevPAR (in EUR) | ||||||
Leased and owned hotels | 61 | 74 | 20.9% | |||
Manachised and franchised hotels | 64 | 67 | 5.6% | |||
Blended | 62 | 71 | 14.5% |
As of | |||
Hotels | Rooms | Unopened hotels | |
in operation | in pipeline | ||
Economy hotels | 4,984 | 407,657 | 1,121 |
3,598 | 317,647 | 731 | |
471 | 24,431 | 180 | |
269 | 20,009 | 177 | |
404 | 21,012 | 1 | |
226 | 22,659 | 17 | |
16 | 1,899 | 15 | |
Midscale hotels | 3,543 | 379,614 | 1,503 |
105 | 10,607 | 24 | |
670 | 55,786 | 228 | |
2,116 | 244,175 | 936 | |
652 | 69,046 | 315 | |
Upper midscale hotels | 704 | 98,508 | 397 |
183 | 23,664 | 119 | |
35 | 5,308 | 4 | |
137 | 12,678 | 69 | |
90 | 11,704 | 64 | |
164 | 25,803 | 58 | |
23 | 5,763 | 17 | |
63 | 12,219 | 64 | |
MAXX(6) | 9 | 1,369 | 2 |
Upscale hotels | 137 | 21,046 | 69 |
Jaz in the City | 3 | 587 | 1 |
7 | 1,234 | - | |
63 | 2,791 | 56 | |
10 | 2,039 | 2 | |
54 | 14,395 | 10 | |
Luxury hotels | 16 | 2,360 | 2 |
Steigenberger Icon(8) | 9 | 1,847 | 2 |
7 | 513 | - | |
Others | 10 | 3,259 | 6 |
Other hotels(9) | 10 | 3,259 | 6 |
Total | 9,394 | 912,444 | 3,098 |
(5) As of
(6) As of
(7) As of
(8) As of
(9) Other hotels include other partner hotels and other hotel brands in
Contact Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@hworld.com
https://ir.hworld.com
_____________________
1 Hotel turnover refers to total transaction value of room and non-room revenue from
2 The conversion of Renminbi (“RMB”) into
3 The conversion of Renminbi (“RMB”) into
Source:
2024 GlobeNewswire, Inc., source