H World Group Reports Strong 2022 Performance with 8.4% Revenue Growth
H World Group announced an 8.4% increase in 2022 revenue, reaching RMB13.9 billion, driven by China’s economic recovery and demand for business travel. The Group’s European business experienced a strong recovery, and expansion efforts focused on lower-tier markets in China. By the end of 2022, the Group’s global network included 8,543 hotels, with 2,580 more under development. In 2023, H World Group plans to open 1,400 new hotels and anticipates revenue growth between 42% and 46%.
Singapore, Singapore, 28th Mar 2023, King NewsWire – H World Group (NASDAQ: HTHT and HKEX: 1179) announced its annual results for the year ended December 31, 2022. The Group’s revenue reached RMB13.9 billion, marking an 8.4% increase compared to the previous year.
H World Group attributes its accelerated recovery in China to the country’s reopening in mid-November 2022, which spurred economic growth and increased demand for business travel. The Group reported RMB3.7 billion in revenue for the fourth quarter of 2022, a 10.7% year-on-year increase.
He Jihong, the Group’s Chief Financial Officer, said, “Despite Covid-19-related challenges in China, the Group achieved an Adjusted EBITDA of RMB 610 Million. This success is due to our international business’s strong recovery and rigorous cost reduction efforts implemented across the Group at both the hotel and headquarters levels.”
The Adjusted EBITDA before non-cash impairment and forex loss was RMB 1.74 billion.
H World Group’s European business experienced robust recovery since Europe’s reopening in mid-February. Deutsche Hospitality (DH) saw a 22.9% increase in Average Daily Rate (ADR) and a 96.2% increase in full-year blended revenue per available room (RevPAR) compared to 2021. The fourth-quarter blended RevPAR rebounded to 110% of 2019’s performance, driven by Steigenberger hotels in Qatar and Egypt.
The Legacy-DH segment’s revenue for 2022 reached RMB3.2 billion, a 108.5% year-on-year increase, with an Adjusted EBITDA of RMB134 million before impairment and unrealized losses.
Moving forward, DH will focus on growing its membership base through the H Rewards loyalty program, increasing the share of direct sales channels, and enhancing management efficiency while reducing operating costs through digitalization.
As of December 31, 2022, H World Group’s global network included 8,543 operating hotels and 809,478 rooms, featuring DH’s 132 hotels. The Group continued its expansion plan throughout the year, opening 1,244 new hotels. With 2,580 hotels under development, including 2,544 Legacy-Huazhu hotels and 36 Legacy-DH hotels, H World Group remains committed to its sustainable quality growth strategy.
The Group has been successful in cultivating the Chinese market and expanding into lower-tier cities, with 38% of hotels operating in third-tier cities and below, and 57% of hotels under development in these regions. H World Group’s presence now spans 1,126 cities.
Additionally, the Group continued to focus on midscale and upper-midscale brands, operating 523 upper-midscale hotels and developing 287 more.
In 2023, H World Group plans to open 1,400 new hotels and anticipates revenue growth between 42% and 46%.
Jin Hui, the Group’s Chief Executive Officer, said, “While we recognize the challenges 2022 presented, we remain optimistic about the hotel industry’s future. We believe that the worst is behind us and that brighter days lie ahead. H World Group is excited to embark on a new journey as we continue to pursue our sustainable quality growth strategy.”
About H World Group
H World Group Limited is a key player in the global hotel industry. At the end of 2022, H World Group operated 8,543 hotels in 17 countries, covering 31 hotel and apartment brands from budget to luxury markets. It had 809,478 rooms in operation, providing consumers with a diverse range of accommodation experiences. 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. H World applies a consistent standard and platform across all of its hotels. As of December 31, 2022, H World operates 13 percent of its hotel rooms under lease and ownership model, and 87 percent under manachise and franchise models.
Organization: H World Group Limited
Contact Person: Olga Duan
Contact Number: +85298656561
Release Id: 2803232906
The post H World Group Reports Strong 2022 Performance with 8.4% Revenue Growth appeared first on King Newswire.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Economic Think journalist was involved in the writing and production of this article.