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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

 

For the month of January 2023

 

Commission File Number: 001-34656

 

H World Group Limited

(Registrant’s name)

 

No. 1299 Fenghua Road

Jiading District

Shanghai
People’s Republic of China
(86) 21 6195-2011
(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (7): o

 

 

 

 

 

EXHIBIT INDEX

 

Exhibit Number   Description
Exhibit 99.1   H World Group Limited Announces Preliminary Results for Hotel Operations in the Fourth Quarter and the Full Year of 2022

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    H World Group Limited
    (Registrant)
     
Date: January 31, 2023 By: /s/ Qi Ji
  Name: Qi Ji
  Title: Executive Chairman of the Board of Directors

 

3

 

 

Exhibit 99.1

 

 

 

Contact Information

Investor Relations

Tel: +86 (21) 6195 9561

Email: ir@hworld.com

https://ir.hworld.com

 

H World Group Limited Announces Preliminary Results for Hotel Operations

in the Fourth Quarter and the Full Year of 2022

 

Shanghai, China, January 31, 2023 – H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”), a key player in the global hotel industry, today announced preliminary results for hotel operations in the fourth quarter (“Q4 2022”) and the full year ended December 31, 2022.

 

COVID-19 update

 

For our Legacy-Huazhu business, our RevPAR in Q4 2022 recovered to 83% of the 2019 level. The recovery was accelerated after Chinese Government announced the reopening policy in mid-November. Breaking down into each month, our RevPAR in October, November and December 2022 recovered to 74%, 87% and 91% of the 2019 levels, respectively. The trend continued during the Spring Festival holiday with RevPAR recovered to roughly 95% of 2019 seven days’ holiday period.

 

Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”) have experienced a seasonal slowdown of RevPAR recovery in Q4 2022. Blended RevPAR recovered to 110% of 2019 levels in Q4, driven by the Steigenberger hotels in Qatar and Egypt. Excluding the effects of the FIFA World Cup and the COP27 UN Climate Conference, the RevPAR recovered to 100% of 2019 levels. RevPAR recovery continues to be driven by ADR increases while occupancy levels still remain behind the levels achieved in 2019. The ongoing reduction of energy-related risks eases energy prices in Europe. However, inflation is continuing to impact operating costs. We will bridge the rising cost through further rate increases as well as an ongoing focus on cost reduction, process optimization and stringent cash management.

 

Page 1 of 10

 

 

 

 

Operating Results: Legacy-Huazhu(1)

 

　  Number of hotels   Number of rooms 
　              As of   As of 
   Opened
in Q4 2022		   Closed (2)
in Q4 2022		   Net added
in Q4 2022		   December 31,
2022 (3)		   December 31,
2022		 
Leased and owned hotels   5    (13)   (8)   623    89,638 
Manachised and franchised hotels   239    (96)   143    7,788    693,536 
Total   244    (109)   135    8,411    783,174 

 

(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 2022, we temporarily closed 10 hotels for brand upgrade and business model change purposes.

(3)       As of December 31, 2022, 572 hotels were requisitioned by governmental authorities.

 

　  As of December 31, 2022 
　  Number of hotels   Unopened hotels in pipeline 
Economy hotels   4930    1053 
  Leased and owned hotels   353    1 
  Manachised and franchised hotels   4577    1052 
Midscale and upscale hotels   3481    1491 
  Leased and owned hotels   270    13 
  Manachised and franchised hotels   3211    1478 
Total   8411    2544 

 

Page 2 of 10

 

 

 

 

Operational hotels excluding hotels under requisition(4)

 

　  For the quarter ended   　 
　  December 31,   September 30,   December 31,   yoy 
　  2021   2022   2022   change 
Average daily room rate (in RMB)        　    　    　 
  Leased and owned hotels   286    294    279    -2.6%
  Manachised and franchised hotels   232    248    236    1.4%
  Blended   239    254    240    0.4%
Occupancy Rate (as a percentage)        　    　    　 
  Leased and owned hotels   67.4%   73.1%   63.1%   -4.3p.p. 
  Manachised and franchised hotels   68.4%   76.4%   66.6%   -1.8p.p. 
  Blended   68.2%   76.0%   66.2%   -2.0p.p. 
RevPAR (in RMB)   　    　    　    　 
  Leased and owned hotels   193    215    176    -8.8%
  Manachised and franchised hotels   159    190    157    -1.2%
  Blended   163    193    159    -2.6%

 

　  For the quarter ended         
　  December 31,   December 31,   yoy         
　  2019   2022   change         
Average daily room rate (in RMB)          　   　         
  Leased and owned hotels   277    279    0.5%        
  Manachised and franchised hotels   223    236    5.9%        
  Blended   232    240    3.6%        
Occupancy Rate (as a percentage)        　    　         
  Leased and owned hotels   84.7%   63.1%   -21.6p.p.         
  Manachised and franchised hotels   81.6%   66.6%   -15.0p.p.         
  Blended   82.2%   66.2%   -16.0p.p.         
RevPAR (in RMB)   　    　    　         
  Leased and owned hotels   235    176    -25.2%        
  Manachised and franchised hotels   182    157    -13.6%        
  Blended   191    159    -16.6%        

 

(4)            If including hotels under requisition, RevPAR in Q4 2022 would have been 85% of the 2019 level.

 

Page 3 of 10

 

 

 

 

Operational hotels excluding hotels under requisition(5)

 

　  For full year ended         
　  December 31,   December 31,   yoy         
　  2021   2022   change         
Average daily room rate (in RMB)        　    　         
  Leased and owned hotels   286    272    -5.1%        
  Manachised and franchised hotels   232    231    -0.2%        
  Blended   239    236    -1.3%        
Occupancy Rate (as a percentage)        　    　         
  Leased and owned hotels   70.6%   63.9%   -6.7p.p.         
  Manachised and franchised hotels   72.4%   67.1%   -5.4p.p.         
  Blended   72.2%   66.7%   -5.5p.p.         
RevPAR (in RMB)   　    　    　         
  Leased and owned hotels   202    174    -14.1%        
  Manachised and franchised hotels   168    155    -7.6%        
  Blended   172    157    -8.8%        

 

　  For full year ended         
　  December 31,   December 31,   yoy         
　  2019   2022   change         
Average daily room rate (in RMB)        　    　         
  Leased and owned hotels   276    272    -1.8%        
  Manachised and franchised hotels   224    231    3.0%        
  Blended   234    236    0.6%        
Occupancy Rate (as a percentage)        　    　         
  Leased and owned hotels   87.0%   63.9%   -23.0p.p.         
  Manachised and franchised hotels   83.8%   67.1%   -16.7p.p.         
  Blended   84.4%   66.7%   -17.7p.p.         
RevPAR (in RMB)   　    　    　         
  Leased and owned hotels   240    174    -27.8%        
  Manachised and franchised hotels   188    155    -17.5%        
  Blended   198    157    -20.5%        

 

(5)            If including hotels under requisition, RevPAR in 2022 would have been 82% of the 2019 level.

 

Page 4 of 10

 

 

 

 

Same-hotel operational data by class

Mature hotels in operation for more than 18 months (excluding hotels under requisition)

 

   Number of hotels   Same-hotel RevPAR   Same-hotel ADR   Same-hotel Occupancy 
       For the quarter      For the quarter      For the quarter     
   As of   ended   yoy   ended   yoy   ended   yoy 
   December 31,   December 31,   change   December 31,   change   December 31,   change 
   2021   2022   2021   2022       2021   2022       2021   2022   (p.p.) 
Economy hotels   3,199    3,199    137    123    -10.1%   183    181    -1.0%   75.0%   68.1%   -6.9 
Leased and owned hotels   335    335    148    132    -11.1%   204    199    -2.6%   72.5%   66.2%   -6.4 
Manachised and franchised hotels   2,864    2,864    135    122    -9.9%   179    178    -0.7%   75.5%   68.5%   -7.0 
Midscale and upscale hotels   2,097    2,097    215    196    -8.6%   313    301    -3.8%   68.6%   65.1%   -3.4 
Leased and owned hotels   227    227    245    222    -9.5%   387    361    -6.8%   63.4%   61.5%   -1.9 
Manachised and franchised hotels   1,870    1,870    209    192    -8.4%   301    292    -3.2%   69.5%   65.7%   -3.7 
Total   5,296    5,296    174    158    -9.2%   241    236    -2.0%   72.0%   66.7%   -5.3 

 

    Number of hotels     Same-hotel RevPAR     Same-hotel ADR     Same-hotel Occupancy  
          For the quarter           For the quarter           For the quarter        
    As of     ended     yoy     ended     yoy     ended     yoy  
    December 31,     December 31,     change     December 31,     change     December 31,     change  
    2019     2022     2019     2022           2019     2022           2019     2022     (p.p.)  
                                                                                         
Economy hotels     1,969       1,969       167       122       -26.8 %     188       180       -4.1 %     88.6 %     67.6 %     -21.0  
Leased and owned hotels     324       324       189       130       -31.5 %     215       197       -8.3 %     88.0 %     65.8 %     -22.2  
Manachised and franchised hotels     1,645       1,645       161       120       -25.4 %     181       176       -2.8 %     88.8 %     68.1 %     -20.7  
Midscale and upscale hotels     1,009       1,009       272       192       -29.4 %     325       300       -7.9 %     83.5 %     64.0 %     -19.5  
Leased and owned hotels     166       166       329       202       -38.7 %     395       335       -15.3 %     83.3 %     60.3 %     -23.0  
Manachised and franchised hotels     843       843       256       189       -26.1 %     307       291       -5.1 %     83.5 %     65.0 %     -18.5  
Total     2,978       2,978       209       150       -28.0 %     241       227       -5.8 %     86.6 %     66.2 %     -20.4  

 

Page 5 of 10

 

 

 

 

Same-hotel operational data by class

Mature hotels in operation for more than 18 months (excluding hotels under requisition)

 

    Number of hotels     Same-hotel RevPAR     Same-hotel ADR     Same-hotel Occupancy  
          For the year           For the year           For the year        
    As of     ended     yoy     ended     yoy     ended     yoy  
    December 31,     December 31,     change     December 31,     change     December 31,     change  
    2021     2022     2021     2022           2021     2022           2021     2022     (p.p.)  
Economy hotels     3,199       3,199       142       123       -13.6 %     183       176       -3.6 %     77.5 %     69.5 %     -8.0  
Leased and owned hotels     335       335       155       133       -14.1 %     207       194       -6.3 %     74.5 %     68.3 %     -6.2  
Manachised and franchised hotels     2,864       2,864       139       121       -13.5 %     179       173       -3.1 %     78.0 %     69.7 %     -8.3  
Midscale and upscale hotels     2,097       2,097       224       196       -12.4 %     315       301       -4.4 %     71.0 %     65.0 %     -6.0  
Leased and owned hotels     227       227       255       219       -14.1 %     386       362       -6.3 %     66.1 %     60.6 %     -5.5  
Manachised and franchised hotels     1,870       1,870       218       191       -12.0 %     303       291       -3.9 %     71.9 %     65.8 %     -6.1  
Total     5,296       5,296       179       156       -13.0 %     240       231       -3.8 %     74.6 %     67.5 %     -7.1  

 

    Number of hotels     Same-hotel RevPAR     Same-hotel ADR     Same-hotel Occupancy  
          For the year           For the year           For the year        
    As of     ended     yoy     ended     yoy     ended     yoy  
    December 31,     December 31,     change     December 31,     change     December 31,     change  
    2019     2022     2019     2022           2019     2022           2019     2022     (p.p.)  
Economy hotels     1,969       1,969       174       121       -30.5 %     192       176       -8.7 %     90.7 %     69.0 %     -21.7  
Leased and owned hotels     324       324       195       130       -33.3 %     215       191       -10.9 %     90.8 %     68.0 %     -22.8  
Manachised and franchised hotels     1,645       1,645       169       119       -29.6 %     186       171       -7.9 %     90.6 %     69.3 %     -21.4  
Midscale and upscale hotels     1,009       1,009       276       190       -31.2 %     331       300       -9.5 %     83.2 %     63.3 %     -19.9  
Leased and owned hotels     166       166       334       200       -40.0 %     396       338       -14.6 %     84.2 %     59.1 %     -25.1  
Manachised and franchised hotels     843       843       258       187       -27.6 %     311       289       -7.1 %     82.9 %     64.6 %     -18.3  
Total     2,978       2,978       212       147       -30.8 %     241       219       -9.0 %     87.9 %     66.9 %     -21.0  

 

Page 6 of 10

 

 

 

 

Operating Results: Legacy-DH(6)

 

　  Number of hotels   Number of
rooms		   Unopened hotels
in pipeline		 
　  Opened
in Q4 2022		   Closed
in Q4 2022		   Net added
in Q4 2022		   As of
 December
31, 2022(7)		   As of
December
31,2022		   As of
December
31,2022		 
　                        
Leased hotels   2         -    2    81    15,328    26 
Manachised and franchised hotels   4    -    4    51    10,976    10 
Total   6    -    6    132    26,304    36 

 

(6)Legacy-DH refers to DH.
(7)As of December 31, 2022, a total of 3 hotels were temporarily closed. 1 hotel was closed due to flood damage, 1 hotel was closed due to extensive hotel refurbishment, and 1 hotel was closed due to repairment.

 

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   For the quarter ended   　 
   December 31,   September 30,   December 31,   yoy 
　  2021   2022   2022   change 
Average daily room rate  (in EUR)                    
  Leased hotels   95    113    114    19.5%
  Manachised and franchised hotels   93    116    134    44.6%
  Blended   94    114    122    29.7%
Occupancy rate (as a percentage)   　    　    　    　 
  Leased hotels   42.9%   67.4%   60.0%   +17.1 p.p. 
  Manachised and franchised hotels   50.7%   64.1%   58.3%   +7.6 p.p. 
  Blended   46.1%   66.1%   59.3%   +13.2 p.p. 
RevPAR  (in EUR)   　    　    　    　 
  Leased hotels   41    76    68    67.3%
  Manachised and franchised hotels   47    74    78    66.2%
  Blended   43    75    72    66.8%

 

　  For full year ended 
　  December 31,   December 31,   yoy 
　  2021   2022   change 
Average daily room rate (in EUR)        　    　 
  Leased and owned hotels   91    110    20.1%
  Manachised and franchised hotels   89    113    26.6%
  Blended   90    111    22.9%
Occupancy Rate (as a percentage)        　    　 
  Leased and owned hotels   31.6%   56.0%   +24.4 p.p. 
  Manachised and franchised hotels   40.5%   56.4%   +15.9 p.p. 
  Blended   35.2%   56.2%   +21.0 p.p. 
RevPAR (in EUR)   　    　    　 
  Leased and owned hotels   29    61    112.6%
  Manachised and franchised hotels   36    64    76.4%
  Blended   32    62    96.2%

 

Page 8 of 10

 

 

 

 

Hotel Portfolio by Brand

 

　  As of December 31, 2022 
　  Hotels   Rooms   Unopened hotels 
　  in operation   in pipeline 
Economy hotels   4,948    389,383    1,066 
  HanTing Hotel   3,257    288,956    652 
  Hi Inn   456    23,998    170 
  Ni Hao Hotel   159    11,534    199 
  Elan Hotel   836    39,948    - 
  Ibis Hotel   222    22,826    32 
  Zleep Hotels   18    2,121    13 
Midscale hotels   2,898    317,117    1,146 
  Ibis Styles Hotel   85    8,864    25 
  Starway Hotel   567    47,378    242 
  JI Hotel   1,694    199,581    611 
  Orange Hotel   519    56,035    261 
  CitiGO Hotel   33    5,259    7 
Upper midscale hotels   538    75,467    286 
  Crystal Orange Hotel   164    21,552    57 
  Manxin Hotel   112    10,601    59 
  Madison Hotel   52    7,195    64 
  Mercure Hotel   137    21,193    62 
  Novotel Hotel   17    4,424    19 
  IntercityHotel(8)   56    10,502    25 
Upscale hotels   134    21,609    72 
  Jaz in the City   3    587    1 
Joya Hotel   8    1,368    1 
  Blossom House   53    2,326    49 
  Grand Mercure Hotel   7    1,726    5 
  Steigenberger Hotels & Resorts(9)   54    14,040    8 
  MAXX (10)   9    1,562    8 
Luxury hotels   15    2,318    5 
  Steigenberger Icon(11)   9    1,847    1 
  Song Hotels   6    471    4 
Others   10    3,584    5 
  Other hotels(12)   10    3,584    5 
Total   8,543    809,478    2,580 

 

(8)  As of December 31, 2022, 5 operational hotels and 11 pipeline hotels of IntercityHotel were in China. 

(9)  As of December 31, 2022, 11 operational hotels and 3 pipeline hotels of Steigenberger Hotels & Resorts were in China. 

(10)  As of December 31, 2022, 3 operational hotels and 8 pipeline hotels of MAXX were in China. 

(11)  As of December 31, 2022, 3 operational hotels of Steigenberger Icon were in China. 

(12)  Other hotels include other partner hotels and other hotel brands in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House).

 

Page 9 of 10

 

 

 

 

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, 2022, H World operated 8,543 hotels with 809,478 rooms in operation in 17 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, 2022, H World operates 13 percent of its hotel rooms under lease and ownership model, and 87 percent under manachise and franchise models.

 

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.

 

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