Shanghai-headquartered hotel giant H World Group reported that its revenue increased 10.7% year-over-year to RMB 3.7 billion (USD 537 million) in the fourth quarter of 2022, in line with the revenue guidance previously announced of a 7% to 11% increase compared to the fourth quarter of 2021.
Revenue from the Legacy-Huazhu segment in the fourth quarter of 2022 decreased 0.7% year-over-year, better than revenue guidance previously announced of a 1% to 5% decrease.
Revenue increased 8.4% year-over-year to RMB 13.9 billion (USD 2.0 billion) for the full year of 2022.
Hotel turnover increased 10.5% year-over-year to RMB 13.1 billion in the fourth quarter of 2022, and increased 9.3% year-over-year to RMB 49.6 billion for the full year of 2022. Excluding Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”), hotel turnover increased 5.3% year-over-year in the fourth quarter of 2022 and increased 3.5% year-over-year for the full year of 2022.
Net loss attributable to H World Group was RMB 124 million (USD 19 million) in the fourth quarter of 2022, compared with RMB 459 million in the fourth quarter of 2021 and RMB 717 million in the previous quarter. Net loss attributable to H World Group from the Legacy-Huazhu segment was RMB 84 million in the fourth quarter of 2022, compared with net loss attributable to H World Group from the Legacy-Huazhu segment of RMB 419 million in the fourth quarter of 2021.
A total of 8,543 hotels or 809,478 hotel rooms in operation as of December 31, 2022.
Jin Hui, CEO of H World commented: “We are very glad to see the strong resilience that our company has shown over the past years despite the tremendous difficulties and challenges brought by COVID. Also, we extend a hearty thanks to our customers, franchisees, employees and business partners who have helped and supported us to get through this tough period together. Now entering the post-COVID era, we will ‘stay the course’ with our “Sustainable Quality Growth” Strategy comprising three areas of key strategic focus."
"Firstly, we will continue the quality expansion of our hotel network, especially in the less-penetrated areas. Secondly, we will further develop our midscale and upper-midscale segments through our multiple-brand strategy. Lastly, we will further strengthen our operational capabilities to achieve higher efficiency, and provide better products and services to our customers as well as franchisees.”
“Moving to our business outside China, we are also happy to see our Legacy-DH business well on recovery trajectory. For the year of 2023, margin improvement will still be a top priority for Legacy-DH. Moreover, loyalty program, direct sales channel development, as well as further digitalization will also be our key areas of focus in 2023.”
In the first quarter of 2023, H World expects its revenue growth to be in the range of 61%-65% compared to the first quarter of 2022, or in the range of 53%-57% excluding DH.
For the full year of 2023, H World expects revenue growth to be in the range of 42%-46% compared to the full year of 2022, or in the range of 46%-50% excluding DH.
For the full year of 2023, H World expects to open around 1,400 hotels and close 600-650 hotels.