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H World Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2023

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 hotels4(5)(1)607 86,691
Manachised and franchised hotels456(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 hotels4,9681,106
Leased and owned hotels3290
Manachised and franchised hotels4,6391,106
Midscale, upper-midscale hotels and others4,2951,955
Leased and owned hotels2789
Manachised and franchised hotels4,0171,946
Total9,2633,061


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 hotels279 406 356 27.7%
Manachised and franchised hotels236 314 276 17.1%
Blended240 324 284 18.3%
Occupancy rate (as a percentage)   
Leased and owned hotels63.1%87.8%83.7%+20.6 p.p. 
Manachised and franchised hotels66.6%85.7%80.1%+13.5 p.p. 
Blended66.2%85.9%80.5%+14.3 p.p. 
RevPAR (in RMB)    
Leased and owned hotels176 356 298 69.4%
Manachised and franchised hotels157 269 221 40.9%
Blended159 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 hotels277 356 28.4%
Manachised and franchised hotels223 276 24.1%
Blended232 284 22.5%
Occupancy rate (as a percentage)  
Leased and owned hotels84.7%83.7%-1.1 p.p. 
Manachised and franchised hotels81.6%80.1%-1.5 p.p. 
Blended82.2%80.5%-1.7 p.p. 
RevPAR (in RMB)   
Leased and owned hotels235 298 26.8%
Manachised and franchised hotels182 221 21.8%
Blended191 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 hotels272 372 36.9% 
Manachised and franchised hotels231 290 25.3% 
Blended236 299 26.6% 
Occupancy rate (as a percentage)   
Leased and owned hotels63.9%82.8%+18.9 p.p.  
Manachised and franchised hotels67.1%80.8%+13.8 p.p.  
Blended66.7%81.1%+14.4 p.p.  
RevPAR (in RMB)    
Leased and owned hotels174 308 77.4% 
Manachised and franchised hotels155 234 51.0% 
Blended157 242 53.9% 


 For full year ended
 December 31,December 31,yoy
 2019 2023 change
Average daily room rate (in RMB)  
Leased and owned hotels276 372 34.5%
Manachised and franchised hotels224 290 29.1%
Blended234 299 27.4%
Occupancy rate (as a percentage)  
Leased and owned hotels87.0%82.8%-4.1 p.p. 
Manachised and franchised hotels83.8%80.8%-2.9 p.p. 
Blended84.4%81.1%-3.3 p.p. 
RevPAR (in RMB)   
Leased and owned hotels240 308 28.1%
Manachised and franchised hotels188 234 24.6%
Blended198 242 22.4%


Same-hotel operational data by class        
Mature hotels in operation for more than 18 months (excluding hotels under requisition)
 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
 As of
December 31,

For the quarter yoyFor the quarter yoyFor the quarter yoy
 ended
December 31,
changeended
December 31,
changeended
December 31,
change
 2022202320222023 20222023 2022 2023 (p.p.)
Economy hotels3,6413,64112917334.5%18421214.9%69.8%81.7%+11.9
Leased and owned hotels31831813420956.6%20024824.1%66.8%84.3%+17.5
Manachised and franchised hotels3,3233,32312816831.3%18220613.3%70.2%81.3%+11.1
Midscale, upper-midscale hotels and others2,8982,89819728344.2%30235116.0%65.0%80.8%+15.8
Leased and owned hotels25025022337066.0%36444522.2%61.3%83.2%+22.0
Manachised and franchised hotels2,6482,64819327140.5%29433714.4%65.5%80.5%+14.9
Total6,5396,53916423040.8%24328316.7%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 hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
 As of
December 31,

For the year yoyFor the year yoyFor the year yoy
 ended
December 31,
changeended
December 31,
changeended
December 31,
change
 2022202320222023 20222023 2022 2023 (p.p.)
Economy hotels3,6413,64112918644.4%18022525.1%71.5%82.5%+11.0
Leased and owned hotels31831813522565.9%19626636.0%69.2%84.3%+15.2
Manachised and franchised hotels3,3233,32312818041.0%17821923.2%71.8%82.2%+10.4
Midscale, upper-midscale hotels and others2,8982,89819830151.9%30436921.7%65.2%81.4%+16.2
Leased and owned hotels25025021938174.0%36546527.5%60.1%82.0%+21.9
Manachised and franchised hotels2,6482,64819528848.0%29535420.1%66.0%81.3%+15.3
Total6,5396,53916324449.4%23929824.6%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 hotels2-284 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 hotels114 113 118 3.1%
Manachised and franchised hotels134 116 111 -17.3%
Blended122 114 115 -5.9%
Occupancy rate (as a percentage)    
Leased hotels60.0%71.4%64.7%+4.7 p.p. 
Manachised and franchised hotels58.3%65.5%62.6%+4.3 p.p. 
Blended59.3%69.0%63.8%+4.5 p.p. 
RevPAR (in EUR)    
Leased hotels68 81 76 11.2%
Manachised and franchised hotels78 76 69 -11.2%
Blended72 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 hotels110 115 4.6%
Manachised and franchised hotels113 110 -3.2%
Blended111 113 1.4%
Occupancy Rate (as a percentage)  
Leased and owned hotels56.0%64.7%+8.7 p.p. 
Manachised and franchised hotels56.4%61.6%+5.1 p.p. 
Blended56.2%63.4%+7.2 p.p. 
RevPAR (in EUR)   
Leased and owned hotels61 74 20.9%
Manachised and franchised hotels64 67 5.6%
Blended62 71 14.5%

Hotel Portfolio by Brand

 As of December 31, 2023
 HotelsRoomsUnopened hotels
 in operationin pipeline
Economy hotels 4,984 407,657 1,121
HanTing Hotel3,598317,647731
Hi Inn47124,431180
Ni Hao Hotel26920,009177
Elan Hotel40421,0121
Ibis Hotel22622,65917
Zleep Hotels161,89915
Midscale hotels 3,543 379,614 1,503
Ibis Styles Hotel10510,60724
Starway Hotel67055,786228
JI Hotel2,116244,175936
Orange Hotel65269,046315
Upper midscale hotels 704 98,508 397
Crystal Orange Hotel18323,664119
CitiGO Hotel355,3084
Manxin Hotel13712,67869
Madison Hotel9011,70464
Mercure Hotel16425,80358
Novotel Hotel235,76317
IntercityHotel(5)6312,21964
MAXX(6)91,3692
Upscale hotels 137 21,046 69
Jaz in the City 3 587 1
Joya Hotel71,234-
Blossom House632,79156
Grand Mercure Hotel102,0392
Steigenberger Hotels & Resorts(7)5414,39510
Luxury hotels 16 2,360 2
Steigenberger Icon(8)91,8472
Song Hotels7513-
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


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