Shanghai-headquartered hotel giant H World Group Limited announced its unaudited financial results for the three months ended March 31, 2023.
Hotel turnover increased 71.3% year-over-year to RMB 16.2 billion in the first quarter of 2023.
Revenue increased 67.1% year-over-year to RMB 4.5 billion (US$652 million) in the first quarter of 2023, surpassing the revenue guidance previously announced of a 61% to 65% increase compared to the first quarter of 2022. Revenue from the Legacy-Huazhu segment in the first quarter of 2023 increased 58.0% year-over-year, exceeding the revenue guidance previously announced of a 53% to 57% increase.
Net income attributable to the group was RMB 990 million (US$144 million) in the first quarter of 2023, compared with a net loss attributable to H World Group Limited of RMB 630 million in the first quarter of 2022.
A total of 8,592 hotels or 820,099 hotel rooms in operation as of March 31, 2023.
Jin Hui, CEO of H World commented: “We are very pleased to see a strong beginning of the year in China post-reopening. For our Legacy-Huazhu business, RevPAR in Q1 2023 recovered to 118% of the Q1 2019 level. The strong recovery was largely driven by the ADR growth in the first quarter due to pent-up demand, a combination of product mix change and continued product upgrades, as well as market penetration and synergy through regional offices. More importantly, our franchisees’ confidence level also gradually improved. It led to a strong momentum for our new signings, reaching over 670 new hotels during the quarter.”
“Regarding our business outside China, our Legacy-DH business continued its promising business recovery. Q1 2023 Blended RevPAR recovered to 94% of the 2019 level.”
For the second quarter of 2023, H World expects its revenue growth to be in the range of 51%-55% compared to the second quarter of 2022, or in the range of 64%-68% excluding DH.