The following is a summary of the H World Group Limited (HTHT) Q1 2024 Earnings Call Transcript:
Financial Performance:
H World Group reported Q1 2024 total revenue increase of 18% YoY to RMB 5.3 billion, primarily due to a higher number of hotel openings.
The group's Revenue Per Available Room (RevPAR) reached RMB 216, reflecting a 3.1% increase YoY.
Operating costs were managed efficiently, totaling RMB 3.6 billion and showing a slower increase than the revenue growth indicating the operating leverage of the company.
Income from operations reached RMB 1.0 billion, reflecting a 51% YoY increase.
The Group's liquidity is stable, with RMB 8.9 billion in cash, cash equivalents, restricted cash, and time deposits.
Business Progress:
H World Group opened 569 hotels in Q1 2024 and closed 148, resulting in a total pipeline increase to a record 3,138 hotels at the end of the quarter.
Continual investment in strategic initiatives and product upgrades, including launching NiHao Hotel, led to strengthening brand reputation.
The group maintained a strategic balance between city tiers, with 40% of hotels located in tier 3 and below cities.
Direct B2B sales were strengthened, indicating by an increase in active corporate clients to over 2,700, a 57% YoY increase.
Quality and service excellence strategy made positive progress, focusing on product quality and service quality improvements. This includes penetrating into lower-tier cities and attracting small business clients.
Strategic focus remains on service quality and customer-centric management enhancement, despite increased selling and marketing expenses related to new market penetration and new product launch.
More details: H World Group IR
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