The following is a summary of the H World Group Limited (HTHT) Q4 2023 Earnings Call Transcript:
Financial Performance:
H World Group reported significant domestic travel industry recovery in China, with RevPAR of 122% as compared to 2019 levels.
Hotel turnover for the year 2023 was RMB 80.4 billion, a notable 62% increase from 2022, primarily driven by strong travel demand and market penetration.
The group expanded rooms by 13% year-over-year, approximating to over 912,000 rooms by 2023 end.
The total revenue for 4Q 2023 escalated by 51% YoY to RMB 5.6 billion and for the full 2023 increased by 58% YoY to RMB 21.9 billion.
In 2023, H World declared a cash dividend totaling around USD 300 million and repurchased about USD 122 million of shares in Q4.
Business Progress:
The group saw a significant business expansion, opening a record 1,641 hotels and closing 789 in 2023.
It continued the 'Iron Triangle' strategy throughout 2023 for economical and mid-scale segments, leading to upgraded versions of HanTing, JI Hotel, and Orange brands.
There was significant geographic expansion, particularly in lower tier Chinese cities. Around 40% of operational hotels were located in Tier 3 and 4, indicating significant market penetration by 2023 end.
The total member base grew to 228 million, as the group continued to enhance their membership program and Central Reservation System.
For 2024, H World intends to continue their high-quality hotel network expansions with an aim to open around 1,800 hotels and close about 650 hotels. They're striving towards better operational, sales, and marketing capabilities to meet increasing customer demands.
More details: H World Group IR
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