SINGAPORE and SHANGHAI, China, Jan. 22, 2024 (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 fourth quarter (“Q4 2023”) and the full year ended December 31, 2023.
Business update
For our Legacy-Huazhu business, our RevPAR in Q4 2023 recovered to 120% of the 2019 level, supported by the sustained recovery in both leisure and business travel demand. Breaking down into each month, our RevPAR in October, November and December 2023 recovered to 120%, 117% and 123% of the 2019 levels, respectively. For the full year of 2023, our RevPAR reached 122% of the 2019 level. While the RevPAR growth in 2023 was primarily driven by ADR, we also experienced continuous recovery in the occupancy rate. With respect to the network expansion, we opened 460 hotels and closed 225 hotels in Q4 2023. We recorded a net increase of 852 hotels to our network in the full year of 2023.
For Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”), RevPAR in Q4 2023 recovered to 111% of the 2019 level, and was marginally above the 2022 level mainly due to a higher ADR base experienced during the FIFA World Cup and the COP27 UN Climate Change Conference in Q4 2022.
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 December 31, 2023 | As of December 31, 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 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 Q4 2023, we temporarily closed 18 hotels for brand upgrade and business model change purposes. | ||||||||
| As of December 31, 2023 | ||
| 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 | ||||||||
| December 31, | September 30, | December 31, | 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 | ||||||
| December 31, | December 31, | 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 | |||||||
| December 31, | December 31, | 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 | ||||||
| December 31, | December 31, | 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 | % | -4.1 p.p. | |
| Manachised and franchised hotels | 83.8 | % | 80.8 | % | -2.9 p.p. | |
| Blended | 84.4 | % | 81.1 | % | -3.3 p.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 December 31, | For the quarter | yoy | For the quarter | yoy | For the quarter | yoy | |||||||||
| ended December 31, | change | ended December 31, | change | ended December 31, | 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 December 31, | For the year | yoy | For the year | yoy | For the year | yoy | |||||||||
| ended December 31, | change | ended December 31, | change | ended December 31, | 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 December 31,2023 | | As of December 31,2023 | |
| 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 December 31, 2023, a total of 2 hotels were temporarily closed due to repair work. | ||||||||
| For the quarter ended | ||||||||
| December 31, | September 30, | December 31, | 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 | ||||||
| December 31, | December 31, | 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 | % | ||
Hotel Portfolio by Brand
| As of December 31, 2023 | |||
| Hotels | Rooms | Unopened hotels | |
| in operation | in pipeline | ||
| Economy hotels | 4,984 | 407,657 | 1,121 |
| HanTing Hotel | 3,598 | 317,647 | 731 |
| Hi Inn | 471 | 24,431 | 180 |
| Ni Hao Hotel | 269 | 20,009 | 177 |
| Elan Hotel | 404 | 21,012 | 1 |
| Ibis Hotel | 226 | 22,659 | 17 |
| Zleep Hotels | 16 | 1,899 | 15 |
| Midscale hotels | 3,543 | 379,614 | 1,503 |
| Ibis Styles Hotel | 105 | 10,607 | 24 |
| Starway Hotel | 670 | 55,786 | 228 |
| JI Hotel | 2,116 | 244,175 | 936 |
| Orange Hotel | 652 | 69,046 | 315 |
| Upper midscale hotels | 704 | 98,508 | 397 |
| Crystal Orange Hotel | 183 | 23,664 | 119 |
| CitiGO Hotel | 35 | 5,308 | 4 |
| Manxin Hotel | 137 | 12,678 | 69 |
| Madison Hotel | 90 | 11,704 | 64 |
| Mercure Hotel | 164 | 25,803 | 58 |
| Novotel Hotel | 23 | 5,763 | 17 |
| IntercityHotel(5) | 63 | 12,219 | 64 |
| MAXX(6) | 9 | 1,369 | 2 |
| Upscale hotels | 137 | 21,046 | 69 |
| Jaz in the City | 3 | 587 | 1 |
| Joya Hotel | 7 | 1,234 | - |
| Blossom House | 63 | 2,791 | 56 |
| Grand Mercure Hotel | 10 | 2,039 | 2 |
| Steigenberger Hotels & Resorts(7) | 54 | 14,395 | 10 |
| Luxury hotels | 16 | 2,360 | 2 |
| Steigenberger Icon(8) | 9 | 1,847 | 2 |
| Song Hotels | 7 | 513 | - |
| Others | 10 | 3,259 | 6 |
| Other hotels(9) | 10 | 3,259 | 6 |
| Total | 9,394 | 912,444 | 3,098 |
(5) As of December 31, 2023, 9 operational hotels and 53 pipeline hotels of IntercityHotel were in China.
(6) As of December 31, 2023, 4 operational hotels and 2 pipeline hotels of MAXX were in China.
(7) As of December 31, 2023, 11 operational hotels and 3 pipeline hotels of Steigenberger Hotels & Resorts were in China.
(8) As of December 31, 2023, 3 operational hotels and 1 pipeline hotel 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 Limited
Originated in China, H World Group Limited is a key player in the global hotel industry. As of December 31, 2023, H World operated 9,394 hotels with 912,444 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 December 31, 2023, H World operates 11 percent of its hotel rooms under lease and ownership model, and 89 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 Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@hworld.com
https://ir.hworld.com
