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H World Group Limited Reports Fourth Quarter and Full Year of 2024 Unaudited Financial Results

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H World Group (HTHT) reported its Q4 and full year 2024 financial results, showing mixed performance. The company's total hotel network reached 11,147 hotels with 1,088,218 rooms in operation as of December 31, 2024.

Revenue increased 7.8% year-over-year to RMB6.0 billion (US$825 million) in Q4 2024, surpassing previous guidance. Full-year revenue grew 9.2% to RMB23.9 billion. However, net income declined to RMB49 million in Q4 2024 from RMB743 million in Q4 2023, mainly due to foreign exchange losses and increased withholding tax.

The company declared a cash dividend of US$0.97 per ADS for H2 2024. Total shareholder returns for 2024 reached US$767 million, including US$500 million in cash dividends and US$267 million in share repurchases. For 2025, H World expects revenue growth of 2-6% and plans to open approximately 2,300 hotels while closing around 600.

H World Group (HTHT) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, mostrando una performance mista. La rete totale di hotel dell'azienda ha raggiunto 11.147 hotel con 1.088.218 camere operative al 31 dicembre 2024.

Il fatturato è aumentato del 7,8% rispetto all'anno precedente, raggiungendo i RMB6,0 miliardi (825 milioni di dollari USA) nel quarto trimestre del 2024, superando le previsioni precedenti. Il fatturato annuale è cresciuto del 9,2%, arrivando a RMB23,9 miliardi. Tuttavia, l'utile netto è diminuito a RMB49 milioni nel quarto trimestre del 2024, rispetto ai RMB743 milioni nel quarto trimestre del 2023, principalmente a causa di perdite da cambio e dell'aumento delle tasse di ritenuta.

L'azienda ha dichiarato un dividendo in contante di 0,97 dollari USA per ADS per il secondo semestre del 2024. I ritorni totali per gli azionisti nel 2024 hanno raggiunto i 767 milioni di dollari USA, inclusi 500 milioni di dollari USA in dividendi in contante e 267 milioni di dollari USA in riacquisti di azioni. Per il 2025, H World prevede una crescita del fatturato del 2-6% e pianifica di aprire circa 2.300 hotel, chiudendone circa 600.

H World Group (HTHT) informó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un desempeño mixto. La red total de hoteles de la compañía alcanzó 11,147 hoteles con 1,088,218 habitaciones en operación al 31 de diciembre de 2024.

Los ingresos aumentaron un 7.8% interanual, alcanzando RMB6.0 mil millones (825 millones de dólares estadounidenses) en el cuarto trimestre de 2024, superando las orientaciones previas. Los ingresos anuales crecieron un 9.2% hasta RMB23.9 mil millones. Sin embargo, el ingreso neto disminuyó a RMB49 millones en el cuarto trimestre de 2024 desde RMB743 millones en el cuarto trimestre de 2023, principalmente debido a pérdidas de cambio y al aumento del impuesto de retención.

La compañía declaró un dividendo en efectivo de 0.97 dólares estadounidenses por ADS para el segundo semestre de 2024. Los retornos totales para los accionistas en 2024 alcanzaron los 767 millones de dólares estadounidenses, incluidos 500 millones de dólares en dividendos en efectivo y 267 millones de dólares en recompra de acciones. Para 2025, H World espera un crecimiento de ingresos del 2-6% y planea abrir aproximadamente 2,300 hoteles mientras cierra alrededor de 600.

H 월드 그룹 (HTHT)은 2024년 4분기 및 전체 연도 재무 결과를 발표했으며, 혼합된 성과를 보여주었습니다. 회사의 전체 호텔 네트워크는 2024년 12월 31일 기준으로 11,147개 호텔과 1,088,218개의 객실을 운영하고 있습니다.

2024년 4분기 매출은 전년 대비 7.8% 증가하여 RMB6.0억 (미화 8억 2500만 달러)로, 이전 가이던스를 초과했습니다. 연간 매출은 9.2% 증가하여 RMB23.9억에 달했습니다. 그러나 2024년 4분기 순이익은 2023년 4분기의 RMB743백만에서 RMB49백만으로 감소했으며, 이는 주로 외환 손실 및 증가한 원천징수세 때문입니다.

회사는 2024년 하반기 ADS당 0.97달러의 현금 배당금을 선언했습니다. 2024년 총 주주 수익은 7억 6700만 달러에 달하며, 여기에는 5억 달러의 현금 배당금과 2억 6700만 달러의 자사주 매입이 포함됩니다. 2025년을 위해 H 월드는 2-6%의 매출 성장을 기대하며 약 2,300개의 호텔을 열 계획이고, 약 600개를 폐쇄할 예정입니다.

H World Group (HTHT) a publié ses résultats financiers pour le quatrième trimestre et l'année complète 2024, montrant une performance mixte. Le réseau hôtelier total de l'entreprise a atteint 11 147 hôtels avec 1 088 218 chambres en exploitation au 31 décembre 2024.

Le chiffre d'affaires a augmenté de 7,8 % par rapport à l'année précédente, atteignant 6,0 milliards RMB (825 millions de dollars américains) au quatrième trimestre 2024, dépassant les prévisions précédentes. Le chiffre d'affaires annuel a augmenté de 9,2 % pour atteindre 23,9 milliards RMB. Cependant, le bénéfice net a diminué à 49 millions RMB au quatrième trimestre 2024, contre 743 millions RMB au quatrième trimestre 2023, principalement en raison de pertes de change et d'une augmentation de l'impôt à la source.

L'entreprise a déclaré un dividende en espèces de 0,97 dollar américain par ADS pour le second semestre 2024. Les rendements totaux pour les actionnaires en 2024 ont atteint 767 millions de dollars américains, y compris 500 millions de dollars en dividendes en espèces et 267 millions de dollars en rachats d'actions. Pour 2025, H World prévoit une croissance des revenus de 2 à 6 % et prévoit d'ouvrir environ 2 300 hôtels tout en fermant environ 600.

H World Group (HTHT) hat seine Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die eine gemischte Leistung zeigen. Das gesamte Hotelnetzwerk des Unternehmens erreichte 11.147 Hotels mit 1.088.218 Zimmern, die am 31. Dezember 2024 in Betrieb sind.

Der Umsatz stieg im vierten Quartal 2024 um 7,8 % im Vergleich zum Vorjahr auf RMB6,0 Milliarden (825 Millionen US-Dollar) und übertraf damit die vorherige Prognose. Der Umsatz für das gesamte Jahr wuchs um 9,2 % auf RMB23,9 Milliarden. Der Nettogewinn ging jedoch im vierten Quartal 2024 auf RMB49 Millionen zurück, verglichen mit RMB743 Millionen im vierten Quartal 2023, was hauptsächlich auf Währungsverluste und erhöhte Quellensteuern zurückzuführen ist.

Das Unternehmen erklärte eine Bardividende von 0,97 US-Dollar pro ADS für das zweite Halbjahr 2024. Die Gesamtrenditen für die Aktionäre im Jahr 2024 beliefen sich auf 767 Millionen US-Dollar, einschließlich 500 Millionen US-Dollar an Bardividenden und 267 Millionen US-Dollar an Aktienrückkäufen. Für 2025 erwartet H World ein Umsatzwachstum von 2-6 % und plant die Eröffnung von etwa 2.300 Hotels, während etwa 600 geschlossen werden.

Positive
  • Revenue exceeded guidance, growing 7.8% YoY to RMB6.0 billion in Q4 2024
  • Strong shareholder returns of US$767 million in 2024 through dividends and buybacks
  • Significant network expansion with 520 new hotels opened in Q4 2024
  • Manachised and franchised revenue grew 24% YoY in Q4 2024
Negative
  • Net income declined significantly to RMB49 million in Q4 2024 from RMB743 million in Q4 2023
  • Legacy-Huazhu's RevPAR declined 6.7% YoY for same-hotel comparisons
  • Legacy-DH segment reported adjusted EBITDA loss of RMB247 million in Q4 2024
  • ADR decreased to RMB277 from RMB284 year-over-year in Q4 2024

Insights

H World Group's Q4 2024 results present a mixed but relatively positive financial picture with revenue outperformance counterbalanced by profitability challenges. Revenue grew 7.8% year-over-year to US$825 million, significantly exceeding management's guidance of 1-5%, while full-year revenue increased 9.2% to US$3.3 billion.

The company continues its impressive network expansion, reaching 11,147 hotels with 520 new openings in Q4 alone, positioning H World well for future revenue growth. Their strategic shift toward an asset-light model is evidenced by manachised and franchised revenue growing 24% year-over-year and now representing 39.8% of total revenue, up from 35.2% in 2023.

However, concerning elements include a significant drop in net income to just US$7 million for Q4 (down from US$106 million in Q4 2023) and full-year net income declining to US$418 million from US$586 million. This decline stems primarily from foreign exchange losses, DH segment restructuring costs, and increased withholding taxes. The 6.7% same-hotel RevPAR decline in Legacy-Huazhu properties also signals some operational challenges despite maintaining a healthy 80% occupancy rate.

The company's commitment to shareholder returns remains strong with US$767 million returned in 2024 through dividends and share repurchases. Forward guidance projects modest 2025 growth of 2-6% overall, but a more robust 17-21% increase in manachised and franchised revenue, reinforcing their strategic pivot toward a capital-light model.

  • A total of 11,147 hotels or 1,088,218 hotel rooms in operation as of December 31, 2024.
  • Hotel turnover1 increased 16.5% year-over-year to RMB23.7 billion in the fourth quarter of 2024 and increased 15.5% year-over-year for the full year of 2024. Excluding Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”), hotel turnover from the Legacy-Huazhu segment increased 17.5% year-over-year in the fourth quarter of 2024 and increased 16.1% year-over-year for the full year of 2024. Hotel turnover from the Legacy-DH segment increased 6.5% year-over-year in the fourth quarter of 2024 and increased 9.0% year-over-year for the full year of 2024.
  • Revenue increased 7.8% year-over-year to RMB6.0 billion (US$825 million)2 in the fourth quarter of 2024, surpassing the revenue guidance previously announced of a 1% to 5% increase compared to the fourth quarter of 2023, increasing 9.2% year-over-year to RMB23.9 billion (US$3.3 billion) for the full year of 2024. Revenue from the Legacy-Huazhu segment in the fourth quarter of 2024 increased 9.2% year-over-year, exceeding the revenue guidance previously announced of a 1% to 5% increase, increasing 9.1% year-over-year for the full year of 2024. Revenue from the Legacy-DH segment in the fourth quarter of 2024 increased 2.9% year-over-year, increasing 9.6% year-over-year for the full year of 2024.
  • Net income attributable to H World Group Limited was RMB49 million (US$7 million) in the fourth quarter of 2024, compared with RMB743 million in the fourth quarter of 2023 and RMB1.3 billion in the previous quarter. The year-over-year decline was mainly due to the foreign exchange loss and the rise in withholding tax in the fourth quarter of 2024. Net income attributable to H World Group Limited was RMB3.0 billion (US$418 million) for the full year of 2024, compared with RMB4.1 billion for the full year of 2023. The year-over-year decline was mainly attributable to the foreign exchange loss, DH’s one-off restructuring costs, as well as the rise in withholding tax in 2024.
  • EBITDA (non-GAAP) in the fourth quarter of 2024 was RMB974 million (US$134 million), compared with RMB1.4 billion in the fourth quarter of 2023 and RMB2.0 billion in the previous quarter. The year-over-year decline was mainly due to the foreign exchange loss in the fourth quarter of 2024. EBITDA (non-GAAP) for the full year of 2024 was RMB6.2 billion (US$844 million), which was negatively impacted by the foreign exchange loss and DH’s one-off restructuring costs. compared with RMB6.8 billion for the full year of 2023.
  • Adjusted EBITDA (non-GAAP), which excluded share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments from EBITDA (non-GAAP), was RMB1.2 billion (US$171 million) in the fourth quarter of 2024, compared with RMB1.1 billion in the fourth quarter of 2023 and RMB2.1 billion in the previous quarter. Adjusted EBITDA (non-GAAP) for the full year of 2024 was RMB6.8 billion (US$935 million), compared with RMB6.3 billion for the full year of 2023.
  • Adjusted EBITDA is a segment measure. Adjusted EBITDA from the Legacy-Huazhu segment was RMB1.5 billion in the fourth quarter of 2024, compared with RMB1.1 billion in the fourth quarter of 2023 and RMB2.1 billion in the previous quarter. Adjusted EBITDA from the Legacy-Huazhu segment was RMB7.0 billion for the full year of 2024, compared with RMB6.2 billion for the full year of 2023. Adjusted EBITDA from the Legacy-DH segment was a loss of RMB247 million in the fourth quarter of 2024, compared with a loss of RMB6 million in the fourth quarter of 2023 and a positive RMB21 million in the previous quarter. The year-over-year decline was mainly due to the RMB417 million impairment loss in the fourth quarter of 2024. Adjusted EBITDA from the Legacy-DH segment was a loss of RMB161 million, which included the RMB420 million impairment loss and the RMB97 million of one-off restructuring costs, for the full year of 2024, compared with a positive RMB68 million for the full year of 2023.
  • For the second half of 2024, the board of directors of the Company (the “Board”) declared a cash dividend in the aggregate amount of approximately US$300 million, of US$0.097 per ordinary share, or US$0.97 per American Depositary Share (the “ADS”). For the full year of 2024, total shareholder returns reached US$767 million, including US$500 million cash dividend and US$267 million share repurchase.
  • As H World is pursuing a more asset-light model, we believe the manachised and franchised business better reflects the Company’s growth trajectory in the long-run. Therefore, in addition to the total revenue guidance, the Company is providing revenue guidance for the manachised and franchised business.
  • For the first quarter of 2025, H World expects its revenue growth to be in the range of 0%-4%, compared to the first quarter of 2024 or in the range of 3%-7% excluding DH. H World expects its manachised and franchised revenue growth to be in the range of 18%-22%, compared to the first quarter of 2024.
  • For the full year of 2025, H World expects revenue growth to be in the range of 2%-6%, compared to the full year of 2024, or in the range of 5%-9% excluding DH. H World expects its manachised and franchised revenue growth to be in the range of 17%-21%, compared to the full year of 2024.
  • For the full year of 2025, H World expects to open around 2,300 hotels and close around 600 hotels.

SINGAPORE and SHANGHAI, March 20, 2025 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, the “Company”, “we” or “our”), a key player in the global hotel industry, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024.

As of December 31, 2024, H World’s worldwide hotel network in operation totaled 11,147 hotels and 1,088,218 rooms, including 122 hotels from DH. During the fourth quarter of 2024, our Legacy-Huazhu business opened 520 hotels, including 4 leased and owned hotels, and 516 manachised and franchised hotels, and closed a total of 202 hotels, including 17 leased and owned hotels and 185 manachised and franchised hotels. As of December 31, 2024, H World had a total of 3,013 unopened hotels in the pipeline, including 2,988 hotels from the Legacy-Huazhu business and 25 hotels from the Legacy-DH business.

Legacy-Huazhu – Fourth Quarter and Full Year of 2024 Operational Highlights

As of December 31, 2024, Legacy-Huazhu had 11,025 hotels in operation, including 557 leased and owned hotels, and 10,468 manachised and franchised hotels. In addition, as of the same date, Legacy-Huazhu had 1,062,329 hotel rooms in operation, including 82,580 rooms under the lease and ownership model, and 979,749 rooms under the manachise and franchise models. Legacy-Huazhu also had 2,988 unopened hotels in its pipeline, including 5 leased and owned hotels, and 2,983 manachised and franchised hotels. The following discusses Legacy-Huazhu’s revenue per available room (“RevPAR”), average daily room rate (“ADR”) and occupancy rate for its leased and owned hotels, as well as manachised and franchised hotels for the periods indicated.

  • The ADR was RMB277 in the fourth quarter of 2024, compared with RMB284 in the fourth quarter of 2023, and RMB301 in the previous quarter.
  • The occupancy rate for all the Legacy-Huazhu hotels in operation was 80.0% in the fourth quarter of 2024, compared with 80.5% in the fourth quarter of 2023, and 84.9% in the previous quarter.
  • Blended RevPAR was RMB222 in the fourth quarter of 2024, compared with RMB229 in the fourth quarter of 2023, and RMB256 in the previous quarter.
  • For all the Legacy-Huazhu hotels which had been in operation for at least 18 months, the same-hotel RevPAR was RMB222 in the fourth quarter of 2024, a 6.7% decline from RMB238 in the fourth quarter of 2023, due to a 4.6% decrease in same-hotel ADR and a 1.8 percentage-point contraction in same-hotel occupancy rate.

Legacy-DH – Fourth Quarter and Full Year of 2024 Operational Highlights

As of December 31, 2024, Legacy-DH had 122 hotels in operation, including 76 leased hotels, and 46 manachised and franchised hotels. In addition, as of the same date, Legacy-DH had 25,889 hotel rooms in operation, including 15,490 rooms under the lease model, and 10,399 rooms under the manachise and franchise models. Legacy-DH also had 25 unopened hotels in the pipeline, including 12 leased hotels and 13 manachised and franchised hotels. The following discusses Legacy-DH’s RevPAR, ADR and occupancy rate for its leased as well as manachised and franchised hotels (excluding hotels temporarily closed) for the periods indicated. 

  • The ADR was EUR115 in the fourth quarter of 2024, compared with EUR115 in the fourth quarter of 2023 and EUR117 in the previous quarter.
  • The occupancy rate for all Legacy-DH hotels in operation was 70.5% in the fourth quarter of 2024, compared with 63.8% in the fourth quarter of 2023 and 69.8% in the previous quarter.
  • Blended RevPAR was EUR81 in the fourth quarter of 2024, compared with EUR73 in the fourth quarter of 2023 and EUR82 in the previous quarter.

Jin Hui, CEO of H World commented: “In 2024, H World achieved the 10,000-hotel milestone, and continued our fast network expansion in China. In the year of 2024, Legacy-Huazhu opened over 2,400 new hotels, far exceeding our initial target of 1,800 hotels, supported by our strong brand reputation and excellent product quality. While Legacy-Huazhu’s full-year RevPAR declined slightly year-over-year from a high base last year, Legacy-Huazhu maintained a high occupancy rate of 81.2%, which we believe is encouraging given the speed of our network expansion. Looking ahead, we will continue to carry out our asset-light strategy, pursue high-quality hotel network growth, strengthen brand positioning and ‘service-excellence’, and enhance sales capability centered around our H Reward membership program.”

“Regarding our business outside China, our Legacy-DH business recorded a 5.9% year-over-year RevPAR increase in 2024. Looking into 2025, we will continue to enhance our hotel operations, focus on cost reduction and efficiency improvement, and continue developing the asset light portfolio.”

Fourth Quarter and Full year of 2024 Unaudited Financial Results

(RMB in millions)Q4 2023Q3 2024Q4 20242023FY2024FY
Revenue:     
Leased and owned hotels3,4533,6903,37313,79613,843
Manachised and franchised hotels2,0162,6022,4997,6949,498
Others116150151392550
Total revenue5,5856,4426,02321,88223,891
      

Revenue in the fourth quarter of 2024 was RMB6.0 billion (US$825 million), representing a 7.8% year-over-year increase which exceeds the previously announced revenue guidance of a 1% to 5% increase, and a sequential decrease of 6.5% due to seasonality effects. Revenue from the Legacy-Huazhu segment in the fourth quarter of 2024 was RMB4.8 billion, representing a 9.2% year-over-year increase and a 7.3% sequential decline. The 9.2% year-over-year increase exceeds the previously announced revenue guidance of a 1% to 5% increase, which was primarily supported by our fast network expansion. Revenue from the Legacy-DH segment in the fourth quarter of 2024 was RMB1.2 billion, representing a 2.9% year-over-year increase and a 3.4% sequential decline.

Revenue for the full year of 2024 was RMB23.9 billion (US$3.3 billion), representing an increase of 9.2% over the full year of 2023. Revenue from Legacy-Huazhu for the full year of 2024 was RMB19.0 billion, representing a 9.1% year-over-year increase. Revenue from the Legacy-DH segment for the full year of 2024 was RMB4.9 billion, representing a 9.6% year-over-year increase.

Revenue from leased and owned hotels in the fourth quarter of 2024 was RMB3.4 billion (US$462 million), representing a 2.3% year-over-year decrease and an 8.6% sequential decrease. Revenue from leased and owned hotels from the Legacy-Huazhu segment in the fourth quarter of 2024 was RMB2.2 billion, representing a 4.8% year-over-year decrease. Revenue from leased and owned hotels from the Legacy-DH segment in the fourth quarter of 2024 was RMB1.2 billion, representing a 2.6% year-over-year increase.

For the full year of 2024, revenue from our leased and owned hotels was RMB13.8 billion (US$1.9 billion), representing a 0.3% year-over-year increase. Revenue from our Legacy-Huazhu leased and owned hotels for the full year of 2024 was RMB9.1 billion, representing a 3.9% year-over-year decrease. Revenue from our Legacy-DH leased and owned hotels for the full year of 2024 was RMB4.7 billion, representing a 9.9% year-over-year increase.

Revenue from manachised and franchised hotels in the fourth quarter of 2024 was RMB2.5 billion (US$342 million), representing a 24% year-over-year increase and a 4.0% sequential decline. Revenue from our Legacy-Huazhu segment from manachised and franchised hotels in the fourth quarter of 2024 was RMB2.5 billion, representing a 24.0% year-over-year increase. Revenue from manachised and franchised hotels from the Legacy-DH segment in the fourth quarter of 2024 was RMB29 million, representing a 20.8% year-over-year increase.

For the full year of 2024, revenue from manachised and franchised hotels was RMB9.5 billion (US$1.3 billion), representing a 23.4% year-over-year increase. The revenue from manachised and franchised hotels accounted for 39.8% of the total revenue for the full year of 2024, compared to 35.2% for the full year of 2023. Revenue from our Legacy-Huazhu manachised and franchised hotels for the full year of 2024 was RMB9.4 billion, representing a 23.6% year-over-year increase. The revenue from manachised and franchised hotels accounted for 49.3% of Legacy-Huazhu revenue for the full year of 2024, compared to 43.6% for the full year of 2023. Revenue from our Legacy-DH manachised and franchised hotels for the full year of 2024 was RMB113 million, representing a 15.3% year-over-year increase.

Other revenue represents revenue generated from businesses other than our hotel operations, which mainly includes revenue from the provision of IT products and services and Huazhu Mall™ and other revenue from the Legacy-DH segment, totaling RMB151 million (US$21 million) in the fourth quarter of 2024, compared to RMB116 million in the fourth quarter of 2023 and RMB150 million in the previous quarter.

For the full year of 2024, other revenue was RMB550 million (US$76 million), compared to RMB392 million for the full year of 2023.



(RMB in millions)		Q4 2023Q3 2024Q4 20242023FY2024FY
Operating costs and expenses:     
Hotel operating costs(3,996)(3,799)(4,190)(14,341)(15,285)
Other operating costs(10)(11)(5)(34)(31)
Selling and marketing expenses(326)(303)(296)(1,072)(1,176)
General and administrative expenses(644)(672)(725)(2,086)(2,508)
Pre-opening expenses(3)(19)(4)(35)(50)
Total operating costs and expenses(4,979)(4,804)(5,220)(17,568)(19,050)
           

Hotel operating costs in the fourth quarter of 2024 were RMB4.2 billion (US$574 million), compared to RMB4.0 billion in the fourth quarter of 2023 and RMB3.8 billion in the previous quarter. The year-over-year increase was mainly due to rising personnel costs as our hotel network continues to expand. As the Company continues to transform into a more asset-light manachised and franchised model, hotel operating costs from the Legacy-Huazhu segment in the fourth quarter of 2024 were RMB2.8 billion, which represented 58.1% of revenue, compared to RMB2.9 billion or 67.0% of revenue in the fourth quarter of 2023 and RMB2.8 billion or 54.3% of revenue for the previous quarter. Hotel operating costs from the Legacy-DH segment in the fourth quarter of 2024 were RMB1.4 billion, which represented 113.9% of revenue, compared to RMB1.1 billion or 88.2% of revenue in the fourth quarter of 2023 and RMB996 million or 77.8% of revenue for the previous quarter. The higher hotel operating costs from Legacy-DH were primarily due to the RMB417 million impairment loss recognized in the fourth quarter of 2024.

For the full year of 2024, hotel operating costs were RMB15.3 billion (US$2.1 billion), compared to RMB14.3 billion for the full year of 2023. Hotel operating costs from Legacy-Huazhu for the full year of 2024 were RMB10.9 billion, which represented 57.5% of revenue, compared to 60.4% for the full year of 2023. Hotel operating costs from Legacy-DH for the full year of 2024 were RMB4.3 billion, which represented 89.3% of revenue, compared to 85.6% for the full year of 2023.

Selling and marketing expenses in the fourth quarter of 2024 were RMB296 million (US$40 million), compared to RMB326 million in the fourth quarter of 2023 and RMB303 million in the previous quarter. Selling and marketing expenses from the Legacy-Huazhu segment in the fourth quarter of 2024 were RMB192 million, which represented 4.0% of revenue, compared to RMB202 million or 4.6% of revenue in the fourth quarter of 2023, and RMB186 million or 3.6% of revenue in the previous quarter. Selling and marketing expenses from the Legacy-DH segment in the fourth quarter of 2024 were RMB104 million, which represented 8.4% of revenue, compared to RMB124 million or 10.3% of DH revenue in the fourth quarter of 2023, and RMB117 million or 9.1% for the previous quarter.

For the full year of 2024, selling and marketing expenses were RMB1.2 billion (US$161 million), compared to RMB1.1 billion for the full year of 2023. Selling and marketing expenses from Legacy-Huazhu for the full year of 2024 were RMB730 million, which represented 3.8% of revenue, compared to RMB649 million or 3.7% of revenue for the full year of 2023. Selling and marketing expenses from Legacy-DH for the full year of 2024 were RMB446 million or 9.2% of DH revenue, compared to RMB423 million or 9.5% of DH revenue for the full year of 2023.

General and administrative expenses in the fourth quarter of 2024 were RMB725 million (US$99 million), compared to RMB644 million in the fourth quarter of 2023 and RMB672 million in the previous quarter. The year-over-year expense increase was mainly due to rising headcount as well as an increase in share-based compensation to attract and retain core employees who are key to our sustainable long-term business growth. General and administrative expenses from the Legacy-Huazhu segment in the fourth quarter of 2024 were RMB586 million, which represented 12.2% of revenue, compared to RMB484 million or 11.0% in the fourth quarter of 2023 and RMB457 million or 8.9% for the previous quarter. General and administrative expenses from the Legacy-DH segment in the fourth quarter of 2024 were RMB139 million, which represented 11.2% of DH revenue, compared to RMB160 million or 13.3% of DH revenue in the fourth quarter of 2023 and RMB215 million or 16.8% in the previous quarter.

For the full year of 2024, general and administrative expenses were RMB2.5 billion (US$344 million), compared to RMB2.1 billion for the full year of 2023. General and administrative expenses from Legacy-Huazhu for the full year of 2024 were RMB1.9 billion, which represented 10.1% of revenue, compared to RMB1.6 billion or 9.0% of revenue for the full year of 2023. General and administrative expenses from Legacy-DH for the full year of 2024 were RMB587 million, which represented 12.1% of DH revenue, compared to RMB521 million or 11.7% of DH revenue for the full year of 2023.

Pre-opening expenses in the fourth quarter of 2024 were primarily related to the Legacy-Huazhu segment and totaled RMB4 million (US$1 million), compared to RMB3 million in the fourth quarter of 2023 and RMB19 million in the previous quarter.

Pre-opening expenses for the full year of 2024 were RMB50 million (US$7 million), compared to RMB35 million for the full year of 2023. Pre-opening expenses from Legacy-Huazhu as a percentage of revenue were 0.3% for the full year of 2024, compared to 0.2% for the full year of 2023.

Other operating income, net in the fourth quarter of 2024 was RMB99 million (US$13 million), compared to RMB155 million in the fourth quarter of 2023 and RMB85 million in the previous quarter.

Other operating income, net for the full year of 2024 was RMB359 million (US$49 million), compared to RMB404 million for the full year of 2023.

Income from operations in the fourth quarter of 2024 was RMB902 million (US$123 million), compared to RMB757 million in the fourth quarter of 2023 and RMB1.7 billion in the previous quarter. Income from operations from the Legacy-Huazhu segment in the fourth quarter of 2024 was RMB1.2 billion, compared to RMB821 million in the fourth quarter of 2023 and RMB1.8 billion in the previous quarter. The Legacy-DH segment had a loss from operations of RMB311 million in the fourth quarter of 2024, compared to a loss from operations of RMB64 million in the fourth quarter of 2023 and a loss of RMB40 million in the previous quarter. The widened operating loss from Legacy-DH was due primarily to the RMB417 million impairment loss recognized in the fourth quarter of 2024.

Income from operations for the full year of 2024 was RMB5.2 billion (US$713 million), compared to RMB4.7 billion for the full year of 2023. Income from operations from Legacy-Huazhu for the full year of 2024 was RMB5.6 billion, compared to RMB4.9 billion for the full year of 2023. Loss from operations from Legacy-DH for the full year of 2024 were RMB406 million, compared to loss of RMB185 million for the full year of 2023.

Operating margin, defined as income from operations as a percentage of revenue, was 15.0% in the fourth quarter of 2024, compared with 13.6% in the fourth quarter of 2023 and 26.7% for the previous quarter. Operating margin from the Legacy-Huazhu segment in the fourth quarter of 2024 was 25.3%, compared with 18.7% in the fourth quarter of 2023 and 34.2% in the previous quarter. Operating margin from the Legacy-DH segment in the fourth quarter of 2024 was a negative 25.2%, compared with a negative 5.3% in the fourth quarter of 2023 and a negative 3.1% in the previous quarter. The margin contraction of Legacy-DH was primarily due to the impairment loss recognized in the fourth quarter of 2024.

Operating margin for the full year of 2024 was 21.8%, compared with 21.5% for the full year of 2023. Operating margin from Legacy-Huazhu for the full year of 2024 was 29.5%, compared with 28.1% for the full year of 2023. Operating margin from Legacy-DH for the full year of 2024 was a negative 8.3%, compared with a negative 4.2% for the full year of 2023.

Other income, net in the fourth quarter of 2024 was an expense of RMB14 million (US$2 million), compared to an income of RMB2 million in the fourth quarter of 2023 and an income of RMB1 million for the previous quarter.

Other income, net for the full year of 2024 was RMB51 million (US$7 million), compared to RMB573 million which was associated with gains from selling Accor shares for the full year of 2023.

Gains (losses) from fair value changes of equity securities in the fourth quarter of 2024 were losses of RMB19 million (US$3 million), compared to gains of RMB124 million in the fourth quarter of 2023, and losses of RMB34 million in the previous quarter. Gains (losses) from fair value changes of equity securities mainly represent the gains (losses) from our investments in equity securities with readily determinable fair values.

For the full year of 2024, losses from fair value changes of equity securities were RMB66 million (US$9 million), compared to gains of RMB109 million for the full year of 2023. The gains in 2023 were mainly from an increase in the value of UBOX holdings by the Company.

Income tax expense in the fourth quarter of 2024 was RMB578 million (US$79 million), compared to RMB281 million in the fourth quarter of 2023 and RMB382 million in the previous quarter. The higher income tax expense in the quarter was due to withholding tax related to dividend distributions.

For the full year of 2024, income tax expense was RMB1.7 billion (US$228 million), compared to RMB1.2 billion for the full year of 2023.

Net income attributable to H World Group Limited in the fourth quarter of 2024 was RMB49 million (US$7 million), compared to RMB743 million in the fourth quarter of 2023 and RMB1.3 billion in the previous quarter. Net income attributable to H World Group Limited from the Legacy-Huazhu segment was RMB358 million in the fourth quarter of 2024, compared to RMB827 million in the fourth quarter of 2023 and RMB1.4 billion in the previous quarter. Net loss attributable to H World Group Limited from the Legacy-DH segment was RMB309 million in the fourth quarter of 2024, compared to RMB84 million in the fourth quarter of 2023 and RMB83 million in the previous quarter. The widened net loss of Legacy-DH was due mainly to the impairment loss.

Net income attributable to H World Group Limited for the full year of 2024 was RMB3.0 billion (US$418 million), compared to RMB4.1 billion for the full year of 2023. Net income attributable to H World Group Limited from Legacy-Huazhu for the full year of 2024 was RMB3.6 billion, compared to RMB4.4 billion for the full year of 2023. The year-over-year decrease in net income attributable to H World Group Limited from the Legacy-Huazhu segment was due primarily to the foreign exchange loss and the rise in withholding tax related to dividend distributions. Net loss attributable to H World Group Limited from Legacy-DH for the full year of 2024 was RMB532 million, compared to a net loss of RMB265 million for the full year of 2023.

EBITDA (non-GAAP) in the fourth quarter of 2024 was RMB974 million (US$134 million), compared with RMB1.4 billion in the fourth quarter of 2023 and RMB2.0 billion in the previous quarter. Adjusted EBITDA (non-GAAP), which excluded the following from EBITDA (non-GAAP): share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments, was RMB1.2 billion (US$171 million) in the fourth quarter of 2024, compared with RMB1.1 billion in the fourth quarter of 2023 and RMB2.1 billion in the previous quarter. Adjusted EBITDA from the Legacy-Huazhu segment, which is a segment measure, was RMB1.5 billion in the fourth quarter of 2024, compared with RMB1.1 billion in the fourth quarter of 2023 and RMB2.1 billion in the previous quarter. Adjusted EBITDA from the Legacy-DH segment, which is a segment measure, was a loss of RMB247 million in the fourth quarter of 2024, compared with a loss of RMB6 million in the fourth quarter of 2023 and a positive RMB21 million in the previous quarter. The year-over-year decline was mainly due to the RMB417 million impairment loss in the fourth quarter of 2024.

EBITDA (non-GAAP) for the full year of 2024 was RMB6.2 billion (US$844 million), compared to RMB6.8 billion for the full year of 2023. Excluding share-based compensation expenses, gains (losses) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments, adjusted EBITDA (non-GAAP) for the full year of 2024 was RMB6.8 billion (US$935 million), compared with RMB6.3 billion for the full year of 2023. The adjusted EBITDA from Legacy-Huazhu for the full year of 2024 was RMB7.0 billion, compared with RMB6.2 billion for the full year of 2023. The adjusted EBITDA from Legacy-DH for the full year of 2024 was a loss of RMB161 million, which included the RMB420 million impairment loss and the RMB97 million of one-off restructuring costs, compared with a positive RMB68 million for the full year of 2023.

Cash flow. Operating cash inflow in the fourth quarter of 2024 was RMB2.7 billion (US$371 million). Investing cash outflow in the fourth quarter of 2024 was RMB3.1 billion (US$424 million) due to the purchase of time deposits and financial products. Financing cash outflow in the fourth quarter of 2024 was RMB37 million (US$6 million).

Operating cash inflow for the full year of 2024 was RMB7.5 billion (US$1.0 billion), compared to RMB7.7 billion for the full year of 2023. Investing cash outflow for the full year of 2024 was RMB2.2 billion (US$307 million), compared to RMB1.5 billion for the full year of 2023. Financing cash outflow for the full year of 2024 was RMB5.5 billion (US$754 million), compared to RMB3.7 billion for the full year of 2023.

Cash, cash equivalents and restricted cash. As of December 31, 2024, the Company had a total balance of cash and cash equivalents of RMB7.5 billion (US$1.0 billion) and restricted cash of RMB50 million (US$7 million).

Debt financing. As of December 31, 2024, the Company had a total debt and net cash balance of RMB5.4 billion (US$743 million) and RMB2.1 billion (US$288 million), respectively; the unutilized credit facility available to the Company was RMB3.3 billion.

Cash Dividend
The Board has approved the declaration and payment of an ordinary cash dividend (the “Cash Dividend”), for the second half of 2024 in the aggregate amount of approximately US$300 million, of US$0.097 per ordinary share, or US$0.97 per ADS. Holders of the Company’s ordinary shares or ADSs as of the close of business on April 9, 2025 will be entitled to receive the Cash Dividend. Dividends to holders of the Company’s ordinary shares are expected to be distributed on or about April 23, 2025. Citibank, N.A. (“Citi”), depositary bank for the Company’s ADS program, expects to pay out dividends to ADS holders on or about April 30, 2025. Dividends to be paid to the Company’s ADS holders through Citi will be subject to the terms of the deposit agreement by and among the Company and Citi, and the holders and beneficial owners of ADSs issued thereunder, including the fees and expenses payable thereunder.

Shareholder Return
In July 2024, H World announced a three-year shareholder return plan with an aggregate amount of up to US$2 billion (the “Shareholder Return Plan”). For the full year of 2024, the Board has declared cash dividends in an aggregate amount of approximately US$500 million and the Company had made on-market share repurchases of approximately US$267 million. Accordingly, such cash dividends and share repurchases totaled to approximately US$767 million, representing over one-third of the Shareholder Return Plan, and over 80% of the free cash flow generated by the Company in the year of 2024.

Guidance
As H World is pursuing a more asset-light model, we believe the manachised and franchised business better reflects the Company’s growth trajectory in the long-run. Therefore, in addition to the total revenue guidance, the Company is providing revenue guidance for the manachised and franchised business.

For the first quarter of 2025, H World expects its revenue growth to be in the range of 0%-4%, compared to the first quarter of 2024 or in the range of 3%-7% excluding DH. H World expects its manachised and franchised revenue growth to be in the range of 18%-22%, compared to the first quarter of 2024.

For the full year of 2025, H World expects revenue growth to be in the range of 2%-6%, compared to the full year of 2024, or in the range of 5%-9% excluding DH. H World expects its manachised and franchised revenue growth to be in the range of 17%-21%, compared to the full year of 2024.

For the full year of 2025, H World expects to open around 2,300 hotels and close around 600 hotels.

The above forecast reflects the Company’s current and preliminary view, which is subject to change.

Conference Call
H World’s management will host a conference call at 8 a.m. U.S. Eastern time on Thursday, March 20, 2025 (8 p.m. Hong Kong time on Thursday, March 20, 2025) following the announcement.

To join by phone, all participants must pre-register this conference call using the Participant Registration link of https://register-conf.media-server.com/register/BI303638c962504ffcb81bb09e374f8485. Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN.

A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/z7bi4fve or the Company’s website at https://ir.hworld.com/news-and-events/events-calendar.

A replay of the conference call will be available for twelve months from the date of the conference at the Company’s website, https://ir.hworld.com/news-and-events/events-calendar.

Use of Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission (“SEC”): adjusted net income (loss) attributable to H World Group Limited excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments; adjusted basic and diluted earnings (losses) per share/ADS excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments; EBITDA; adjusted EBITDA excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and non-GAAP Results” set forth at the end of this release. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding Company performance by excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments that may not be indicative of Company operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Company performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. A limitation of using non-GAAP financial measures excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments is that share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments have been and may continue to be significant and recurring in the Company’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

The Company believes that EBITDA is a useful financial metric to assess the operating and financial performance before the impact of investing and financing transactions and income taxes, given the significant investments that the Company has made in leasehold improvements, depreciation and amortization expense that comprise a significant portion of the Company’s cost structure. In addition, the Company believes that EBITDA is widely used by other companies in the lodging industry and may be used by investors as a measure of financial performance. The Company believes that EBITDA information provides investors with a useful tool for comparability between periods because it excludes depreciation and amortization expense attributable to capital expenditures. The Company also uses adjusted EBITDA to assess operating results of its hotels in operation. The Company believes that the exclusion of share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments helps facilitate year-over-year comparisons of the results of operations as the share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments may not be indicative of Company operating performance.

Therefore, the Company believes adjusted EBITDA more closely reflects the financial performance capability of our hotels. The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that the Company’s future results will be unaffected by other charges and gains considered to be outside the ordinary course of business.

The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets (including land use rights), income tax, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of depreciation and amortization, interest income, interest expense, income tax expense, share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments all in the reconciliations to the U.S. GAAP financial measures and in the consolidated financial statements, all of which should be considered when evaluating the performance of the Company.

The terms EBITDA and adjusted EBITDA are not defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing the operating and financial performance, investors should not consider these data in isolation or as a substitute for the Company’s net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, the Company’s EBITDA or adjusted EBITDA may not be comparable to EBITDA or adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA or adjusted EBITDA in the same manner as the Company does.

Reconciliations of the Company’s non-GAAP financial measures, including EBITDA and adjusted EBITDA, to the consolidated statement of operations information are included at the end of this press release.

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, 2024, H World operated 11,147 hotels with 1,088,218 rooms in operation in 19 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, 2024, H World operated 9 percent of its hotel rooms under the lease and ownership model, and 91 percent under the 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.


—Financial Tables and Operational Data Follow—



H World Group Limited
Unaudited Condensed Consolidated Balance Sheets
 December 31, 2023
 December 31, 2024
 RMB
 RMB
 US$3
 (in millions)
      
ASSETS   
Current assets:   
Cash and cash equivalents6,946  7,474  1,024 
Restricted cash764  50  7 
Short-term investments2,189  3,603  494 
Accounts receivable, net755  817  112 
Loan receivables - current, net184  114  16 
Amounts due from related parties, current210  297  41 
Inventories59  60  8 
Other current assets, net949  800  108 
Total current assets12,056  13,215  1,810 
      
Property and equipment, net6,097  5,682  778 
Intangible assets, net5,280  4,776  654 
Operating lease right-of-use assets25,658  24,992  3,424 
Finance lease right-of-use assets2,171  2,272  311 
Land use rights, net181  174  24 
Long-term investments2,564  2,316  317 
Goodwill5,318  5,221  715 
Amounts due from related parties, non-current25  51  7 
Loan receivables, net163  190  26 
Other assets, net663  668  94 
Deferred tax assets1,043  1,054  144 
Assets held for sale2,313  1,941  266 
Total assets63,532  62,552  8,570 
      
LIABILITIES AND EQUITY     
Current liabilities:     
Short-term debt4,049  880  120 
Accounts payable1,019  983  135 
Amounts due to related parties77  74  10 
Salary and welfare payables1,067  1,201  165 
Deferred revenue1,637  1,822  250 
Operating lease liabilities, current3,609  3,492  478 
Finance lease liabilities, current45  50  7 
Accrued expenses and other current liabilities3,261  4,006  549 
Dividends payable2,085  0  0 
Income tax payable562  813  111 
Total current liabilities17,411  13,321  1,825 
      
Long-term debt1,265  4,546  623 
Operating lease liabilities, non-current24,215  23,634  3,238 
Finance lease liabilities, non-current2,697  2,843  390 
Deferred revenue1,072  1,351  185 
Other long-term liabilities1,118  1,472  201 
Deferred tax liabilities845  919  126 
Retirement benefit obligations124  111  15 
Liabilities held for sale2,536  2,084  286 
Total liabilities51,283  50,281  6,889 
      
Equity:     
Ordinary shares0  0  0 
Treasury shares(906) (274) (38)
Additional paid-in capital11,861  9,620  1,318 
Retained earnings794  2,449  336 
Accumulated other comprehensive income386  382  52 
Total H World Group Limited shareholders' equity12,135  12,177  1,668 
Noncontrolling interest114  94  13 
Total equity12,249  12,271  1,681 
Total liabilities and equity63,532  62,552  8,570 


H World Group Limited
Unaudited Condensed Consolidated Statements of Comprehensive Income
 Quarter Ended
 Year Ended
 December 31,
2023
 September 30,
2024
 December 31, 2024
 December 31,
2023
 December 31, 2024
 RMB
 RMB
 RMB
 US$
 RMB
 RMB
 US$
 (in millions, except shares, per share and per ADS data)
Revenue:       
Leased and owned hotels3,453  3,690  3,373  462  13,796  13,843  1,897 
Manachised and franchised hotels2,016  2,602  2,499  342  7,694  9,498  1,301 
Others116  150  151  21  392  550  76 
Total revenue5,585  6,442  6,023  825  21,882  23,891  3,274 
        
Operating costs and expenses:       
Hotel operating costs:       
Rents(1,033) (1,088) (1,100) (151) (4,290) (4,365) (598)
Utilities(160) (194) (155) (21) (685) (690) (94)
Personnel costs(1,331) (1,371) (1,393) (191) (4,684) (5,326) (730)
Depreciation and amortization(320) (315) (305) (42) (1,329) (1,254) (172)
Consumables, food and beverage(361) (337) (336) (46) (1,327) (1,293) (177)
Others(791) (494) (901) (123) (2,026) (2,357) (323)
Total hotel operating costs(3,996) (3,799) (4,190) (574) (14,341) (15,285) (2,094)
Other operating costs(10) (11) (5) (1) (34) (31) (4)
Selling and marketing expenses(326) (303) (296) (40) (1,072) (1,176) (161)
General and administrative expenses(644) (672) (725) (99) (2,086) (2,508) (344)
Pre-opening expenses(3) (19) (4) (1) (35) (50) (7)
Total operating costs and expenses(4,979) (4,804) (5,220) (715) (17,568) (19,050) (2,610)
Goodwill impairment loss(4) -  -  -  (4) -  - 
Other operating income (expense), net155  85  99  13  404  359  49 
Income (loss) from operations757  1,723  902  123  4,714  5,200  713 
Interest income85  50  53  7  248  210  29 
Interest expense(76) (77) (74) (10) (385) (318) (44)
Other income (expense), net2  1  (14) (2) 573  51  7 
Gains (losses) from fair value changes of equity securities124  (34) (19) (3) 109  (66) (9)
Foreign exchange gains (losses)140  (1) (155) (21) 90  (272) (37)
Income (loss) before income taxes1,032  1,662  693  94  5,349  4,805  659 
Income tax (expense) benefit(281) (382) (578) (79) (1,204) (1,662) (228)
Income (Loss) from equity method investments(8) 12  (54) (7) (14) (41) (6)
Net income (loss)743  1,292  61  8  4,131  3,102  425 
Net (income) loss attributable to noncontrolling interest(0) (19) (12) (1) (46) (54) (7)
Net income (loss) attributable to H World Group Limited743  1,273  49  7  4,085  3,048  418 
        
Gains (losses) arising from defined benefit plan, net of tax(9) -  6  1  (9) 6  1 
Gains (losses) from fair value changes of debt securities, net of tax(31) -  (13) (2) (12) (38) (5)
Foreign currency translation adjustments, net of tax(23) 128  (70) (10) 175  28  4 
Comprehensive income (loss)680  1,420  (16) (3) 4,285  3,098  425 
Comprehensive (income) loss attributable to noncontrolling interest(0) (19) (12) (1) (46) (54) (7)
Comprehensive income (loss) attributable to H World Group Limited680  1,401  (28) (4) 4,239  3,044  418 
        
Earnings (Losses) per share:       
Basic0.23  0.41  0.02  0.00  1.28  0.98  0.13 
Diluted0.23  0.40  0.02  0.00  1.25  0.96  0.13 
        
Earnings (Losses) per ADS:       
Basic2.33  4.10  0.16  0.02  12.83  9.78  1.34 
Diluted2.31  3.99  0.16  0.02  12.55  9.64  1.32 
        
Weighted average number of shares used in computation:     
Basic3,182,802,226  3,102,868,424  3,080,973,793  3,080,973,793  3,183,163,131  3,115,130,107  3,115,130,107 
Diluted3,217,737,686  3,257,589,866  3,123,364,616  3,123,364,616  3,351,421,211  3,278,308,290  3,278,308,290 




H World Group Limited
Unaudited Condensed Consolidated Statements of Cash Flows
 Quarter Ended
 Year Ended
 December 31,
2023
 September 30,
2024
 December 31, 2024
 December 31,
2023
 December 31, 2024
 RMB
 RMB
 RMB
 US$
 RMB
 RMB
 US$
 (in millions)
Operating activities:       
Net income (loss)743  1,292  61  8  4,131  3,102  425 
        
Share-based compensation38  79  73  10  143  322  44 
Depreciation and amortization,
and other		346  329  326  45  1,448  1,337  183 
Impairment loss430  32  469  64  516  537  74 
Loss (income) from equity method investments, net of dividends8  (9) 65  9  72  97  13 
Investment (income) loss and foreign exchange (gain) loss(452) (15) 195  27  (925) 250  34 
Changes in operating assets and liabilities1,359  43  1,323  182  2,508  1,886  259 
Other(61) (58) 192  26  (219) (13) (2)
Net cash provided by (used in) operating activities2,411  1,693  2,704  371  7,674  7,518  1,030 
        
Investing activities:       
Capital expenditures(313) (209) (205) (28) (901) (898) (123)
Purchase of investments(700) (32) (3,099) (424) (3,509) (4,017) (550)
Proceeds from maturity/sale and return of investments771  406  176  24  2,972  2,563  351 
Loan advances(140) (75) (54) (7) (262) (193) (26)
Loan collections36  65  73  10  147  229  31 
Other69  11  10  1  76  77  10 
Net cash provided by (used in) investing activities(277) 166  (3,099) (424) (1,477) (2,239) (307)
        
Financing activities:       
Net proceeds from issuance of ordinary shares-  -  -  -  1,973  -  - 
Payment of share repurchase(848) (496) -  -  (848) (1,172) (161)
Proceeds from debt370  29  25  3  1,169  643  88 
Repayment of debt(204) (135) (49) (7) (5,862) (613) (84)
Dividend paid-  (1,389) (0) (0) -  (3,480) (477)
Purchase of prepaid put option-  0  -  -  -  (710) (97)
Other(62) (113) (13) (2) (152) (172) (23)
Net cash provided by (used in) financing activities(744) (2,104) (37) (6) (3,720) (5,504) (754)
        
Effect of exchange rate changes on cash, cash equivalents and restricted cash41  16  21  3  164  30  4 
Net increase (decrease) in cash, cash equivalents and restricted cash, including cash classified within assets held for sale1,431  (229) (411) (56) 2,641  (195) (27)
Less: net increase (decrease) in cash and cash equivalents classified within assets held for sale17  (4) 5  1  17  (9) (1)
Cash, cash equivalents and restricted cash at the beginning of the period6,296  8,165  7,940  1,088  5,086  7,710  1,057 
Cash, cash equivalents and restricted cash at the end of the period7,710  7,940  7,524  1,031  7,710  7,524  1,031 


H World Group Limited
Unaudited Reconciliation of GAAP and Non-GAAP Results
 Quarter Ended
 Year Ended
 December 31,
2023
 September 30,
2024
 December 31, 2024
 December 31,
2023
 December 31, 2024
 RMBRMBRMBUS$RMBRMBUS$
 (in millions, except shares, per share and per ADS data)
Net income (loss) attributable to H World Group Limited (GAAP)743  1,273  49  7  4,085  3,048  418 
Share-based compensation expenses38  79  73  10  143  322  44 
(Gain) loss from fair value changes of equity securities(124) 34  19  3  (109) 66  9 
Foreign exchange (gain) loss, net(140) 1  155  21  (90) 272  37 
(Gain) loss on disposal of investments0  (15) 25  3  （516) 10  1 
Adjusted net income (loss) attributable to H World Group Limited (non-GAAP)517  1,372  321  44  3,513  3,718  509 
        
        
Adjusted earnings (losses) per share (non-GAAP)     
Basic0.16  0.44  0.10  0.01  1.10  1.19  0.16 
Diluted0.16  0.43  0.10  0.01  1.08  1.17  0.16 
        
Adjusted earnings (losses) per ADS (non-GAAP)
Basic1.62  4.42  1.04  0.14  11.03  11.94  1.64 
Diluted1.61  4.29  1.03  0.14  10.84  11.68  1.60 
        
Weighted average number of shares used in computation     
Basic3,182,802,226  3,102,868,424  3,080,973,793  3,080,973,793  3,183,163,131  3,115,130,107  3,115,130,107 
Diluted3,217,737,686  3,257,589,866  3,123,364,616  3,123,364,616  3,351,421,211  3,278,308,290  3,278,308,290 
 
        
 Quarter Ended
 Year Ended
 December 31, 2023
 September 30, 2024
 December 31, 2024
 December 31, 2023
 December 31, 2024
 RMBRMBRMBUS$RMBRMBUS$
 (in millions, except per share and per ADS data)
Net income (loss) attributable to H World Group Limited (GAAP)743  1,273  49  7  4,085  3,048  418 
Interest income(85) (50) (53) (7) (248) (210) (29)
Interest expense76  77  74  10  385  318  44 
Income tax expense281  382  578  79  1,204  1,662  228 
Depreciation and amortization341  332  326  45  1,414  1,332  183 
EBITDA (non-GAAP)1,356  2,014  974  134  6,840  6,150  844 
Share-based compensation38  79  73  10  143  322  44 
(Gain) loss from fair value changes of equity securities(124) 34  19  3  (109) 66  9 
Foreign exchange (gain) loss, net(140) 1  155  21  (90) 272  37 
(Gain) loss on disposal of investments0  (15) 25  3  (516) 10  1 
Adjusted EBITDA (non-GAAP)1,130  2,113  1,246  171  6,268  6,820  935 


H World Group Limited
Segment Financial Summary
  Quarter Ended December 31, 2023
  Quarter Ended September 30, 2024
  Quarter Ended December 31, 2024
 Legacy- Huazhu Legacy- DH
 Legacy- Huazhu Legacy- DH Legacy- Huazhu Legacy- DH
 RMB RMBRMB RMB RMB RMB
  (in millions) (in millions) (in millions)
Leased and owned hotels2,288 1,165 2,461 1,229 2,178 1,195
Manachised and franchised hotels1,992 24 2,568 34 2,470 29
Others104 12 133 17 139 12
Revenue 4,384 1,201 5,162 1,280 4,787 1,236
           
Depreciation and amortization282 59 271 61 265 61
Adjusted EBITDA1,136 (6) 2,092 21 1,493 (247)


H World Group Limited
Segment Financial Summary
  Year Ended December 31, 2023
  Year Ended December 31, 2024
 Legacy- Huazhu Legacy- DH Legacy- Huazhu Legacy- DH
 RMB RMB RMB RMB
 (in millions)(in millions)
Leased and owned hotels9,522 4,274 9,146 4,697
Manachised and franchised hotels7,596 98 9,385 113
Others320 72 491 59
Revenue 17,438 4,444 19,022 4,869
        
Depreciation and amortization1,166 248 1,095 237
Adjusted EBITDA6,200 68 6,981 (161)


Operating Results: Legacy-Huazhu(1)

　Number of hotels 　Number of rooms
　Opened
in Q4 2024
Closed (2)
in Q4 2024
Net added
in Q4 2024
As of
December 31, 2024
　As of
December 31, 2024
　　
Leased and owned hotels4(17)(13)557 82,580
Manachised and franchised hotels516(185)331 10,468 979,749
Total520(202)318 11,025 1,062,329
(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 2024, we temporarily closed 5 hotels for brand upgrade or business model change purposes.


　As of December 31, 2024
　Number of hotels Unopened hotels in pipeline
Economy hotels5,4851,158
Leased and owned hotels2791
Manachised and franchised hotels5,2061,157
Midscale, upper-midscale hotels and others5,5401,830
Leased and owned hotels2784
Manachised and franchised hotels5,2621,826
Total11,0252,988


 
　For the quarter ended　
　December 31,September 30,December 31,yoy
　2023 2024 2024 change
Average daily room rate (in RMB)　　　
Leased and owned hotels356381353-0.7%
Manachised and franchised hotels276294270-2.1%
Blended284301277-2.5%
Occupancy rate (as a percentage)   
Leased and owned hotels83.7%87.4%83.7%+0.0 p.p.
Manachised and franchised hotels80.1%84.6%79.7%-0.5 p.p.
Blended80.5%84.9%80.0%-0.5 p.p.
RevPAR (in RMB)    
Leased and owned hotels298333296-0.7%
Manachised and franchised hotels221249215-2.7%
Blended229256222-3.1%


 
　For full year ended
　December 31,December 31,yoy
　2023 2024 change
Average daily room rate (in RMB)　　
Leased and owned hotels372364-2.0%
Manachised and franchised hotels290281-2.8%
Blended299289-3.2%
Occupancy rate (as a percentage)　　
Leased and owned hotels82.8%84.4%+1.6 p.p.
Manachised and franchised hotels80.8%80.9%+0.1 p.p.
Blended81.1%81.2%+0.2 p.p.
RevPAR (in RMB)   
Leased and owned hotels308308-0.1%
Manachised and franchised hotels234228-2.7%
Blended242235-3.0%


Same-hotel operational data by class        
Mature hotels in operation for more than 18 months
 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
 As of
December 31,

For the quarter yoyFor the quarter yoyFor the quarter yoy
 ended
December 31,		changeended
December 31,		changeended
December 31,		change
 2023202420232024 20232024 2023 2024 (p.p.)
Economy hotels3,7573,757179166-7.5%215204-5.0%83.2%81.0%-2.2
Leased and owned hotels272272215202-6.0%253239-5.3%85.1%84.5%-0.6
Manachised and franchised hotels3,4853,485175161-7.8%211200-5.0%82.9%80.5%-2.4
Midscale, upper-midscale hotels and others3,4063,406286268-6.3%352335-4.6%81.5%80.0%-1.4
Leased and owned hotels253253373356-4.5%446427-4.1%83.6%83.3%-0.3
Manachised and franchised hotels3,1533,153276258-6.6%339323-4.7%81.2%79.6%-1.5
Total7,1637,163238222-6.7%289276-4.6%82.2%80.5%-1.8


Same-hotel operational data by class        
Mature hotels in operation for more than 18 months
 Number of hotelsSame-hotel RevPARSame-hotel ADRSame-hotel Occupancy
 As of
December 31,
For the year yoyFor the year yoyFor the year yoy
 ended
December 31,		changeended
December 31,		changeended
December 31,		change
 2023202420232024 20232024 2023 2024 (p.p.)
Economy hotels3,7573,757191180-6.0%229217-5.0%83.7%82.8%-0.9
Leased and owned hotels272272229220-3.8%270256-5.2%84.8%86.0%+1.2
Manachised and franchised hotels3,4853,485187175-6.3%223212-5.0%83.6%82.4%-1.2
Midscale, upper-midscale hotels and others3,4063,406301285-5.2%369351-4.8%81.5%81.2%-0.3
Leased and owned hotels253253384373-2.9%467446-4.5%82.2%83.5%+1.4
Manachised and franchised hotels3,1533,153290274-5.5%356339-4.9%81.4%80.9%-0.5
Total7,1637,163250236-5.4%303289-4.8%82.5%82.0%-0.6


Operating Results: Legacy-DH(3)

　Number of hotels　Number of
rooms		　Unopened hotels
in pipeline
　Opened
in Q4 2024
Closed
in Q4 2024
Net added
in Q4 2024
As of
December 31, 2024(4)
 As of
December 31, 2024
　

　

As of
December 31, 2024
　
Leased hotels (1)(1)76 15,490 12
Manachised and franchised hotels-(15)(15)46 10,399 13
Total-(16)(16)122 25,889 25
(3)   Legacy-DH refers to DH.
(4)   As of December 31, 2024, a total of 3 hotels were temporarily closed due to repair work.


 For the quarter ended　
 December 31,September 30,December 31,yoy
　202320242024change
Average daily room rate (in EUR)    
Leased hotels118118115-2.1%
Manachised and franchised hotels1111161153.9%
Blended1151171150.2%
Occupancy rate (as a percentage)    
Leased hotels64.7%72.2%70.0%+5.4 p.p.
Manachised and franchised hotels62.6%66.6%71.2%+8.6 p.p.
Blended63.8%69.8%70.5%+6.7 p.p.
RevPAR (in EUR)    
Leased hotels7685816.1%
Manachised and franchised hotels69778218.1%
Blended73828110.7%


　For full year ended
　December 31,December 31,yoy
　20232024change
Average daily room rate (in EUR)　　
Leased and owned hotels1151172.0%
Manachised and franchised hotels1101100.7%
Blended1131141.5%
Occupancy Rate (as a percentage)　　
Leased and owned hotels64.7%67.2%+2.6 p.p.
Manachised and franchised hotels61.6%64.5%+3.0 p.p.
Blended63.4%66.1%+2.7 p.p.
RevPAR (in EUR)   
Leased and owned hotels74796.1%
Manachised and franchised hotels67715.6%
Blended71765.9%


Hotel Portfolio by Brand

　As of December 31, 2024
　HotelsRoomsUnopened hotels
　in operationin pipeline
Economy hotels5,489449,7631,167
HanTing Hotel4,139359,475711
Hi Inn54628,680294
Ni Hao Hotel41531,335136
Elan Hotel1628,018-
Ibis Hotel22321,59817
Zleep Hotels46579
Midscale hotels4,547484,7331,204
Ibis Styles Hotel10510,1058
Starway Hotel72458,547127
JI Hotel2,867325,999814
Orange Hotel85190,082255
Upper midscale hotels935126,158526
Crystal Orange Hotel24531,105159
CitiGO Hotel345,1074
Manxin Hotel16615,58564
Madison Hotel14917,623105
Mercure Hotel19930,71455
Novotel Hotel316,85019
IntercityHotel(5)9917,466113
MAXX(6)121,7087
Upscale hotels14921,790106
Jaz in the City35871
Joya Hotel71,2341
Blossom House753,62291
Grand Mercure Hotel91,726-
Steigenberger Hotels & Resorts(7)5514,62113
Luxury hotels162,3255
Steigenberger Icon(8)91,8043
Song Hotels75212
Others113,4495
Other hotels(9)113,4495
Total 11,147 1,088,218 3,013

(5)   As of December 31, 2024, 42 operational hotels and 108 pipeline hotels of IntercityHotel were under Legacy-Huazhu.
(6)   As of December 31, 2024, 7 operational hotels and 7 pipeline hotels of MAXX were under Legacy-Huazhu.
(7)   As of December 31, 2024, 12 operational hotels and 6 pipeline hotels of Steigenberger Hotels & Resorts were under Legacy-Huazhu.
(8)   As of December 31, 2024, 3 operational hotels and 2 pipeline hotels of Steigenberger Icon were under Legacy-Huazhu.
(9)   Other hotels include other partner hotels and other hotel brands in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House).

_______________________

1 Hotel turnover refers to total transaction value of room and non-room revenue from H World hotels (i.e., leased and operated, manachised and franchised hotels).
2 The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB7.2993 on December 31, 2024, as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
3 The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB7.2993 on December 31, 2024, as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.

Contact Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@hworld.com
https://ir.hworld.com


FAQ

What was H World Group's (HTHT) revenue growth in Q4 2024?

Revenue grew 7.8% year-over-year to RMB6.0 billion (US$825 million), exceeding the previously announced guidance of 1-5% growth.

How many hotels does HTHT plan to open and close in 2025?

H World plans to open approximately 2,300 hotels and close around 600 hotels in 2025.

What dividend did HTHT announce for the second half of 2024?

The company declared a cash dividend of US$0.97 per ADS for the second half of 2024.

What caused HTHT's net income decline in Q4 2024?

Net income declined primarily due to foreign exchange losses and increased withholding tax in Q4 2024.

What is HTHT's total hotel network size as of December 31, 2024?

HTHT operated 11,147 hotels with 1,088,218 rooms globally as of December 31, 2024.
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H World Group

NASDAQ:HTHT

HTHT Rankings

#617 Ranked by Market Cap
#564 Ranked by Dividends

HTHT Latest News

Mar 20, 2025
H World Group Reports Fourth Quarter and 2024 Full-Year Financial Results
Mar 10, 2025
H World Group Limited Schedules Fourth Quarter and Full Year of 2024 Earnings Release on March 20, 2025
Nov 26, 2024
H World Group Limited Announces the Third Quarter 2024 Financial Results
Nov 26, 2024
H World Group Limited Reports Third Quarter of 2024 Unaudited Financial Results
Nov 12, 2024
H World Group Limited Schedules Third Quarter of 2024 Earnings Release on November 26, 2024

HTHT Stock Data

10.80B
308.44M
1.71%
52.81%
4.19%
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