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6-K 1 tm243784d1_6k.htm FORM 6-K

 

 

  

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

 

For the month of January 2024

Commission File Number: 001-34656

 

H World Group Limited

(Registrant’s name)

 

No. 1299 Fenghua Road

Jiading District

Shanghai
People’s Republic of China
(86) 21 6195-2011
(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x   Form 40-F ¨

 

 

  

 


 

EXHIBIT INDEX

 

Number

 

Description of Document

Exhibit 99.1   H World Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2023

 

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    H World Group Limited
    (Registrant)
     
               
Date: January 22, 2024 By: /s/ Qi Ji
  Name: Qi Ji
  Title: Executive Chairman of the Board of Directors

 

3

 

EX-99.1 2 tm243784d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

 

Contact Information

Investor Relations

Tel: +86 (21) 6195 9561

Email: ir@hworld.com

https://ir.hworld.com

 

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

 

Singapore/Shanghai, China, January 22, 2024 – 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.

 

Page 1 of 9


 

 

 

 

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  

 

Page 2 of 9


 

 

 

 

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 %

 

Page 3 of 9


 

 

 

 

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 %

 

Page 4 of 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        
          For the quarter           For the quarter           For the quarter        
    As of     ended     yoy     ended     yoy     ended     yoy  
     December 31,     December 31,      change     December 31,      change     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
ended
December 31,
     yoy
change
    For the year
ended
December 31,
    yoy
change 
    For the year
ended
December 31,
     yoy
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  

 

Page 5 of 9


 

 

 

 

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.

 

Page 6 of 9


 

 

 

 

    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 %

 

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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).

 

Page 8 of 9


 

 

 

 

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.

 

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