H World Group Limited

HTHT

Equity

ISIN US44332N1063 / Valor 42128533

NASDAQ (2024-12-26)

USD 34.01+0.29%

H World Group Limited
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About company

H World Group Limited, originating in China, is a prominent player in the global hotel industry, operating a vast network of hotels across 18 countries. With a diverse portfolio of brands including Hi Inn, Elan Hotel, and JI Hotel, among others, H World utilizes various business models such as leased and owned, manachised, and franchised to manage its properties. The company applies a consistent standard and platform across all its hotels, ensuring quality and service consistency. As of December 31, 2023, H World operated over 9,000 hotels with more than 900,000 rooms, with a significant portion of its operations under the manachise and franchise model.

Summarized from source with an LLMView SourceSector: Consumer Services

Revenue Growth

In the third quarter of 2024, H World Group Limited reported a revenue increase of 2.4% year-over-year, reaching RMB6.4 billion (US$918 million). This growth was within the previously announced guidance range of 2% to 5% compared to the third quarter of 2023. The Legacy-Huazhu segment saw a 1.0% year-over-year revenue increase, while the Legacy-DH segment experienced an 8.9% rise.

Net Income

H World Group Limited's net income attributable to the company was RMB1.3 billion (US$181 million) for the third quarter of 2024, consistent with the same period in 2023. The Legacy-Huazhu segment contributed RMB1.4 billion to the net income, while the Legacy-DH segment reported a net loss of RMB83 million, which included RMB81 million in one-off restructuring costs.

EBITDA Performance

The company's EBITDA (non-GAAP) for the third quarter of 2024 was RMB2.0 billion (US$286 million), slightly down from RMB2.1 billion in the same quarter of 2023. Adjusted EBITDA, excluding certain expenses and gains, was RMB2.1 billion (US$300 million). The Legacy-Huazhu segment's adjusted EBITDA was RMB2.1 billion, while the Legacy-DH segment's adjusted EBITDA was RMB21 million.

Operational Highlights

As of September 30, 2024, H World Group Limited operated 10,845 hotels with 1,062,546 rooms globally. The Legacy-Huazhu business opened 774 new hotels during the quarter, while the Legacy-DH segment had 138 hotels in operation. The company also had a pipeline of 2,925 unopened hotels, primarily from the Legacy-Huazhu business.

Future Outlook

Looking ahead to the fourth quarter of 2024, H World Group Limited expects revenue growth to be in the range of 1% to 5% compared to the fourth quarter of 2023. The company aims to continue its expansion, particularly in lower-tier cities in China, while focusing on sustainable, high-quality growth and exploring opportunities in the Asia-Pacific and Middle East regions.

Summarized from source with an LLMView Source

Key figures

2.75%1Y

-8.70%3Y

-17.9%5Y

Performance

44.3%1Y

56.3%3Y

53.6%5Y

Volatility