H World Group Limited ( (HTHT) ) has released its Q3 earnings. Here is a breakdown of the information H World Group Limited presented to its investors.
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H World Group Limited is a prominent player in the global hotel industry, operating a large network of hotels across various countries, known for its diverse range of hotel brands and models including leased, owned, and franchised establishments.
In their latest financial report for the third quarter of 2024, H World Group Limited announced a year-over-year increase in hotel turnover and revenue, reflecting steady growth despite challenges. The company highlighted its continued expansion, with a significant number of hotel openings and a robust pipeline for future growth.
Key financial metrics revealed that the company’s total revenue increased by 2.4% year-over-year to RMB6.4 billion. The Legacy-Huazhu segment saw a small increase in revenue, while the Legacy-DH segment experienced an 8.9% rise. Despite restructuring costs affecting the Legacy-DH segment, the net income of H World Group remained stable at RMB1.3 billion. Adjusted EBITDA stood at RMB2.1 billion, indicating a slight decrease from the previous year.
Operationally, the Legacy-Huazhu business opened 774 new hotels during the quarter, although RevPAR showed a decline due to a high ADR base from the previous year and unfavorable weather conditions. The Legacy-DH segment saw improvements in RevPAR and occupancy rates, particularly in its European operations where cost reductions are ongoing.
Looking forward, H World Group Limited anticipates revenue growth of 1% to 5% for the fourth quarter of 2024, underscoring its commitment to sustainable, high-quality growth and regional expansion, particularly in lower-tier Chinese cities and international markets in Asia-Pacific and the Middle East.
