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H World Group (NASDAQ:HTHT) stock jumped on Monday after posting a lighter than expected quarterly loss.
The company reported just a $0.12 loss per ADS against a consensus estimate of a $0.27 loss per ADS. Revenues, meanwhile, came up narrowly short of expectations. Management indicated continued optimism into the start of the “post-COVID era”, emphasizing key areas of focus for the year ahead.
“Firstly, we will continue the quality expansion of our hotel network, especially in the less-penetrated areas. Secondly, we will further develop our midscale and upper-midscale segments through our multiple-brand strategy,” CEO Jin Hui said. “Lastly, we will further strengthen our operational capabilities to achieve higher efficiency, and provide better products and services to our customers as well as franchisees.”
Margin improvement, uptake of the loyalty program, as well as further digitalization are also key points of emphasis, according to Hui.
In the first quarter of 2023, management anticipates revenue growth to be in the range of 61% to 65% compared to the Omicron-impacted first quarter of 2022. For the full year, H World expects revenue growth to be in the range of 42% to 46% as compared to 2022. The company expects to open around 1,400 hotels and close 600 to 650 hotels in the course of the year.
Shares of H World Group (HTHT) rose over 5% after the opening bell before retreating to a more modest gain.
Read more on the details of the quarter.