H World Group Limited (NASDAQ: HTHT and HKEX: 1179) has disclosed its unaudited financial results for the second quarter and first half ending on June 30, 2023. In the initial half of 2023, the Group reported revenue of RMB10.0 billion (US$1.4 billion), signifying a notable 65.1% surge compared to the same period in 2022. Revenue from Legacy-Huazhu reached RMB7.9 billion, reflecting a substantial 67.7% year-over-year increase. Additionally, revenue from Steigenberger Hotels GmbH and its subsidiaries ("DH" or "Legacy-DH") amounted to RMB2.1 billion, marking a robust 55.9% year-over-year increase. The Hotel turnover for H World experienced a remarkable 72.0% year-over-year boost, reaching RMB20.3 billion in the second quarter of 2023. Excluding DH, hotel turnover grew by 78.1% year-over-year in the same quarter. Overall revenue escalated by 63.5% year-over-year to RMB5.5 billion (US$762 million). Legacy-Huazhu contributed RMB4.3 billion in revenue, demonstrating an impressive 76.6% year-over-year increase attributed to heightened travel demand and ongoing enhancements in products and operations through the Group's regional headquarters. Both the Group and Legacy-Huazhu surpassed previously announced revenue guidance. DH segment revenue amounted to RMB1.2 billion, reflecting a 28.4% year-over-year increase and a 33.5% sequential increase, driven by the recovery of the Group's business and seasonality, respectively. Net income attributable to H World was RMB1.0 billion (US$138 million), in stark contrast to the net losses of RMB350 million in the second quarter of 2022. EBITDA (non-GAAP) reached RMB1.7 billion (US$234 million), a significant improvement from the negative RMB213 million reported in the second quarter of 2022 and RMB1.6 billion in the previous quarter.
As of December 2023, H World's global hotel network comprised 8,750 hotels and 844,417 rooms, including 128 hotels from DH. Legacy-Huazhu operated 8,622 hotels with 818,245 rooms. In the second quarter of 2023, Legacy-Huazhu achieved a historical milestone by signing over 1,000 new hotels. The ADR stood at RMB305, surpassing the figures from the second quarter of 2022 (RMB218) and the previous quarter (RMB277), as well as the second quarter of 2019 (RMB236). The OCC for all Legacy-Huazhu hotels in operation rose to 81.8%, marking a significant 17.2 percentage point year-over-year increase. The blended RevPAR reached RMB250, bouncing back to 121% of the Q2 2019 level. Every month, the Group's RevPAR in April, May, and June 2023 recovered to 127%, 115%, and 123% of the 2019 levels for the corresponding months, respectively. The ADR of DH increased to EUR117, and the OCC for all DH hotels in operation rose by 7.3 percentage points to 67.1% year-over-year, with blended RevPAR at EUR78.
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