H World Group Limited · HKEX:1179
H World — Q1 2025 Earnings Presentation
22 slides from H World's earnings presentation, May 20, 2025
Slide 1: First Quarter of 2025 Earnings Call
First Quarter of 2025 Earnings Call H World Group Limited (NASDAQ: HTHT and HKEX: 1179) May 20, 2025
Slide 2: Agenda
AGENDA 01 02 03 04 25Q1 Business 25Q1 Operational Q and A Appendix Update and Financial Review
Slide 3: Legacy-Huazhu RevPAR declined 3.9% YoY
3 Legacy-Huazhu RevPAR declined 3.9% YoY 2025 RevPAR 3.9% ADR (RMB) OCC RevPAR (RMB) -2.6% -1.0p.p. 280 272 77.2% -3.9% 76.2% 216 208 H W or ld
Slide 4: Network Expansion
4 Network Expansion ꂊ䏅緸絞䘯鸟䪈䓎 Number of Hotel Opening Number of Hotel Closure Number of Hotel in Pipeline (as of Mar 31) Total hotel closure Hotel closure excl. low quality economy soft brand and Hanting 1.0 694 3,138 155 569 148 2,865 108 72 Q1'24 Q1'25 Q1'24 Q1'25 * Numbers in this page refers to L
Slide 5: Economy and Midscale as the Core Products Serving the Mass Market
5 Economy and Midscale as the Core Products Serving the Mass Market 务 Number of Hotels in Operation Number of Hotels in Pipeline Number of Hotel Opening (as of Mar 31) (as of Mar 31) Economy Midscale Upper midscale and above Economy Midscale Upper midscale and above Economy Midscale Upper midscale a
Slide 6: Stepping-Up the Development of Upper-midscale Segment
6 Stepping-Up the Development of Upper-midscale Segment 鵳♧姿䲀⸓⚥넞咓ㅷ晥涸〄㾝 Number of Upper-midscale Hotels Number of Upper-midscale Hotels Multi-brand Strategy for in Operation in Pipeline Upper-midscale Segment +36% YoY +22% YoY 933 873 521 523 686 430 Q1'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 H W or ld * Num
Slide 7: Consistent Product Upgrade - Hanting, Ji, Orange
Consistent Product Upgrade - Hanting, Ji, Orange - Proportion of Hanting 3.5 and Proportion of JI 4.0 and Above Proportion of Orange 2.0 and Above in Operation in Operation Above in Operation Hanting 3.5 and above JI 4.0 and above Orange 2.0 and above 78% 76% 70% 40% 63% 66% 36% 74% 33% 52% 29% 71%
Slide 8: Enhancing Presence in the Lower Tier Cities
8 Enhancing Presence in the Lower Tier Cities ⸈䔂⡛絁㙹䋑䋒㽷 Number of Hotels in Operation Number of Hotels in Pipeline City Coverage (as of Mar 31) (as of Mar 31) (hotels in operation and in pipeline) Tier-1 Tier-2 Tier-3, 4 and below Tier-1 Tier-2 Tier-3, 4 and below 11,564 3,138 2,865 2,000 9,684 42% 5
Slide 9: Rising Membership and CRS Contribution
9 Rising Membership and CRS Contribution ⠔プ錞垷⿺⚥㣛곫㹁⽑嫱䲿⼮ Number of Members Continues Rising Direct Booking through H World CRS +5.4p.p. YoY 66.4% 65.1% 277 59.7% 267 257 245 236 Q1’24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 * Numbers in this page refers to Legacy-Huazhu business H W or ld * Includes
Slide 10: Legacy-DH – Blended RevPAR Increased 12.7% YoY
10 Legacy-DH – Blended RevPAR Increased 12.7% YoY DH 2025 RevPAR 12.7% ADR (EUR) OCC RevPAR (EUR) +2.8% +12.7%* +5.3p.p. 107 65 104 61.1% 58 55.8% * Numbers in this page refers to Legacy-DH business H W or ld * The RevPAR increase was helped by mix change of DH's hotel portfolio, and accelerated Rev
Slide 11: DH – Asset-Light Transformation
11 DH – Asset-Light Transformation DH Mix of DH Hotels in Operation Mix of DH Hotels in Pipeline Leased Manachised & Franchised Leased Manachised & Franchised 37% 38% 46% 44% 52% 57% 63% 62% 54% 56% 48% 43% Q1'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 H W or ld * Numbers in this page refers to Legacy-DH busi
Slide 12: Agenda
AGENDA 01 02 03 04 25Q1 Business 25Q1 Operational Q and A Appendix Update and Financial Review
Slide 13: Hotel Network Continues to Expand
13 Hotel Network Continues to Expand ꂊ䏅緸絞䭯絯䪈䓎 Hotel Network Expansion Hotel Turnover (Number of rooms in operation) (in RMB millions) +19.5% +14.3% 1,142,158 22,489 Legacy-DH Legacy-DH 25,758 19,669 1,649 955,657 Legacy-DH Legacy-DH 1,602 Legacy-Huazhu Legacy-Huazhu 27,148 1,116,400 20,840 Legacy-Hu
Slide 14: Steady Revenue Growth in Q1'25
14 Steady Revenue Growth in Q1’25 ♧㷍䏞蠒佐珘⨴㟞 In million RMB 1Q25 1Q24 YoY 4Q24 QoQ Revenue from Legacy - Huazhu 4,481 4,246 5.5% 4,789 -6.4% Ӫ Legacy-Huazhu revenue increased 5.5% YoY in the first quarter of 2025, in line with our guidance. Revenue from Huazhu’s manachised & franchised - Leased & Own
Slide 15: Increasing Revenue Contribution from Asset-Light Model
15 Increasing Revenue Contribution from Asset-Light Model 鲽餴❡佐Ⰶ⽑嫱䭯絯䲿⼮ H World Revenue Breakdown Legacy-Huazhu Revenue Breakdown Others Others Manachised and franchised hotels Manachised and franchised hotels Leased and owned hotels Leased and owned hotels 2% 2% 2% 2% 39% 46% 48% 55% 59% 52% 50% 43%
Slide 16: Adjusted EBITDA Achieved RMB1.5 Billion in Q1'25
16 Adjusted EBITDA Achieved RMB1.5 Billion in Q1’25 EBITDA 15 In million RMB 1Q25 1Q24 YoY 4Q24 QoQ Ӫ Hotel operating costs increased slightly by 1.1% YoY in the first quarter of 2025, slower than the revenue growth as we continued transforming to a more Hotel operating costs 3,604 3,565 1.1% 4,190
Slide 17: Cash Flow and Liquidity Position
17 Cash Flow and Liquidity Position 梡ꆄ崨⿺崨⸓䚍䞔ⲃ Operating Cash Balance (incl. Net Cash (incl. Cash Flow Time Deposits) Time Deposits) RMB580 mn RMB11.8 bn RMB6.5 bn * As of March 31, 2025 * Cash balance and net cash position includes RMB3.5bn time deposits and financial products H W or ld
Slide 18: Guidance
18 Guidance ⚌絫䭷䒸 Revenue vs. Q2 2024 Q2 ● ● Grow 1%-5% Excluding DH - Grow 3%-7% 2025 M&F revenue vs. Q2 2024 ● Grow 18%-22% H W or ld
Slide 19: Agenda
AGENDA 01 02 03 04 25Q1 Business 25Q1 Operational Q and A Appendix Update and Financial Review
Slide 20: Agenda
AGENDA 01 02 03 04 25Q1 Business 25Q1 Operational Q and A Appendix Update and Financial Review
Slide 21: Same-Hotel Operational Data by Segment
21 Same-Hotel Operational Data by Segment ず䏅絑蠒侨䰘 Number of hotels in Same-hotel RevPAR Same-hotel ADR Same-hotel Occupancy operation As of For the quarter ended For the quarter ended For the quarter ended March 31, March 31, March 31, March 31, yoy change yoy change yoy change (p.p.) 2024 2025 2024
Slide 22: Number of Hotels and Rooms
22 Number of Hotels and Rooms ꂊ䏅侨ꆀㄤ䨻ꢂ侨ꆀ As of March 31, 2025 Total Hotels Rooms Unopened hotels in operation in pipeline Economy hotels 5,677 464,841 1,123 HanTing Hotel 4,269 370,138 699 Ni Hao Hotel 453 34,145 118 Hi Inn 594 31,182 284 Elan Hotel 129 7,012 - Ibis Hotel 228 21,707 13 Zleep Hotels 4