0001104659-23-050695 | 20-F | XBRL Viewer

Years Ended December 31,

Balance at January 1

Addition for tax positions

Balance at December 31

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Cover Page	12 Months Ended
Cover Page	Dec. 31, 2022 shares
Document and Entity Information
Document Type	20-F
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-34656
Entity Registrant Name	H World Group Limited
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	No. 1299 Fenghua Road
Entity Address, City or Town	Shanghai
Entity Address, Country	CN
Title of 12(b) Security	American Depositary Shares
Trading Symbol	HTHT
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Document Registration Statement	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	3,112,413,730
Entity Address, Postal Zip Code	201803
ICFR Auditor Attestation Flag	true
Auditor Name	Deloitte Touche Tohmatsu Certified Public Accountants LLP
Auditor Firm ID	1113
Auditor Location	Shanghai, China
Entity Central Index Key	0001483994
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Business contact
Document and Entity Information
Contact Personnel Name	Jihong He
Entity Address, Address Line One	11 Penang Lane
Entity Address, Country	SG
City Area Code	65
Local Phone Number	8655-0278
Entity Address, Postal Zip Code	238485

CONSOLIDATED BALANCE SHEETS ¥ in Millions, $ in Millions	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 3,583	$ 520	¥ 5,116
Restricted cash	1,503	218	25
Short-term investments	1,788	259	2,589
Accounts receivable, net	1,113	161	521
Loan receivables - current, net	134	19	218
Amounts due from related parties, net	178	26	149
Inventories	70	10	88
Other current assets, net	809	117	847
Total current assets	9,178	1,330	9,553
Property and equipment, net	6,784	984	7,056
Intangible assets, net	5,278	765	5,385
Operating lease right-of-use assets	28,970	4,200	29,942
Finance lease right-of-use assets	2,047	297	2,235
Land use rights, net	199	29	206
Long-term investments	1,945	282	1,965
Goodwill	5,195	753	5,132
Amounts due from a related party	6	1	1
Loan receivables, net	124	18	98
Other assets, net	688	101	834
Deferred income tax assets	1,093	158	862
Total assets	61,507	8,918	63,269
Current liabilities:
Short-term debt and current portion of long-term debt	3,288	477	6,232
Accounts payable	1,171	170	968
Amounts due to related parties	71	10	197
Salary and welfare payables	657	95	591
Deferred revenue	1,308	190	1,366
Operating lease liabilities, current	3,773	547	3,628
Finance lease liabilities, current	41	6	41
Accrued expenses and other current liabilities	2,337	339	1,838
Income tax payable	500	72	418
Total current liabilities	13,146	1,906	15,279
Long-term debt	6,635	962	3,565
Operating lease liabilities, non-current	27,637	4,007	28,012
Finance lease liabilities, non-current	2,513	364	2,684
Deferred revenue	828	120	785
Other long-term liabilities	977	142	903
Retirement benefit obligations	110	16	144
Deferred income tax liabilities	858	124	853
Total liabilities	52,704	7,641	52,225
Commitments and contingencies (Note 22)
Equity:
Ordinary shares (US$0.00001 par value per share; 80,000,000,000 shares authorized; 3,255,971,250 and 3,265,433,590 shares issued as of December 31, 2021 and 2022, and 3,120,746,090 and 3,112,413,730 shares outstanding as of December 31, 2021 and 2022, respectively)	0	0	0
Treasury shares (30,974,040 and 153,019,860 shares as of December 31, 2021 and 2022, respectively)	(441)	(64)	(107)
Additional paid-in capital	10,138	1,470	9,964
Retained earnings	(1,200)	(174)	1,037
Accumulated other comprehensive income	232	34	41
Total H World Group Limited shareholders' equity	8,729	1,266	10,935
Noncontrolling interest	74	11	109
Total equity	8,803	1,277	11,044
Total liabilities and equity	¥ 61,507	$ 8,918	¥ 63,269

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021	May 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Ordinary shares, par value (in dollars per share)	$ 0.00001	$ 0.00001	$ 0.0001
Ordinary shares, shares authorized	80,000,000,000	80,000,000,000
Ordinary shares, shares issued	3,265,433,590	3,255,971,250
Ordinary shares, shares outstanding	3,112,413,730	3,120,746,090		3,108,425,680	2,859,026,090
Treasury shares, shares	153,019,860	30,974,040

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares
Revenues:
Total revenues	¥ 13,862	$ 2,010	¥ 12,785	¥ 10,196
Operating costs and expenses:
Hotel operating costs	12,260	1,777	11,282	9,729
Other operating costs	62	9	58	52
Selling and marketing expenses	613	89	641	597
General and administrative expenses	1,675	243	1,545	1,259
Pre-opening expenses	95	14	81	288
Total operating costs and expenses	14,705	2,132	13,607	11,925
Goodwill impairment loss \| ¥				437
Other operating income, net	549	79	986	480
(Loss) income from operations	(294)	(43)	164	(1,686)
Interest income	87	13	89	119
Interest expense	409	59	405	533
Other (expense) income, net	10	1	157	(89)
Losses from fair value changes of equity securities, net	(359)	(52)	(96)	(265)
Foreign exchange gain (loss), net	(641)	(93)	(317)	175
Loss before income taxes	(1,606)	(233)	(408)	(2,279)
Income tax (benefit) expense	207	30	12	(215)
Loss from equity method investments	(36)	(5)	(60)	(140)
Net loss	(1,849)	(268)	(480)	(2,204)
Less: net loss attributable to noncontrolling interest	(28)	(4)	(15)	(12)
Net loss attributable to H World Group Limited	(1,821)	(264)	(465)	(2,192)
Other comprehensive income (loss)
(Loss) gain arising from defined benefit plan, net of tax of RMB13,RMB4 and RMB10 for the year ended 2020, 2021 and 2022, respectively	22	3	13	(27)
Gains from fair value changes of debt securities, net of tax of nil, nil and RMB19 for 2020,2021 and 2022, respectively	57	8
Foreign currency translation adjustments, net of tax of nil for the year ended 2020, 2021 and 2022, respectively	112	16	(99)	203
Comprehensive loss	(1,658)	(241)	(566)	(2,028)
Less: comprehensive loss attributable to the noncontrolling interest	(28)	(4)	(15)	(12)
Comprehensive loss attributable to H World Group Limited	¥ (1,630)	$ (237)	¥ (551)	¥ (2,016)
Losses per share:
Basic \| (per share)	¥ (0.59)	$ (0.08)	¥ (0.15)	¥ (0.75)
Diluted \| (per share)	¥ (0.59)	$ (0.08)	¥ (0.15)	¥ (0.75)
Weighted average number of shares used in computation:
Basic (in shares)	3,111,196,757	3,111,196,757	3,114,124,244	2,927,398,409
Diluted (in shares)	3,111,196,757	3,111,196,757	3,114,124,244	2,927,398,409
Leased and owned hotels
Revenues:
Total revenues	¥ 9,148	$ 1,326	¥ 8,118	¥ 6,908
Manachised and franchised hotels
Revenues:
Total revenues	4,405	639	4,404	3,136
Others
Revenues:
Total revenues	¥ 309	$ 45	¥ 263	¥ 152

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Loss / Income arising from defined benefit plan, tax	¥ 10	¥ 4	¥ 13
Unrealized gains(losses) from fair value changes of debt securities	19	0	0
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ¥ in Millions	Ordinary Shares Convertible Senior Notes Due 2022 CNY (¥)	Ordinary Shares CNY (¥)	Treasury Shares CNY (¥) shares	Treasury Shares USD ($) shares	Additional Paid-in Capital Convertible Senior Notes Due 2022 CNY (¥)	Additional Paid-in Capital CNY (¥)	Retained Earnings CNY (¥)	Accumulated Other Comprehensive (Loss) Income CNY (¥)	Noncontrolling Interest CNY (¥)	Convertible Senior Notes Due 2022 CNY (¥) shares	CNY (¥) shares	USD ($) shares
Balance at beginning outstanding (in shares) at Dec. 31, 2019 \| shares											2,859,026,090	2,859,026,090
Balance at beginning at Dec. 31, 2019		¥ 0	¥ (107)			¥ 3,834	¥ 3,694	¥ (49)	¥ 121		¥ 7,493
Treasury shares, balance (in shares) at Dec. 31, 2019 \| shares			30,967,640	30,967,640
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks		0				2					¥ 2
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks (in shares) \| shares											14,543,070	14,543,070
Return of loaned ADS in connection with issuance of Convertible Senior Notes due 2022 (in shares) \| shares										2,020
Return of loaned ADS in connection with issuance of Convertible Senior Notes due 2022	¥ 0				¥ 0					¥ 0
Share-based compensation						122					¥ 122
Net loss							(2,192)		(12)		(2,204)
Dividends to noncontrolling interest holders									(4)		(4)
Capital contribution from noncontrolling interest holders									10		10
Acquisition of noncontrolling interest						(118)			(18)		(136)
Foreign currency translation adjustments, net of tax of nil								203			203
Noncontrolling interest recognized in connection with acquisitions									3		3
Issuance of ordinary shares in Hong Kong public offering		0				5,968					¥ 5,968
Issuance of ordinary shares in Hong Kong public offering (in shares) \| shares											234,854,500	234,854,500
Noncontrolling interest recognized from partial disposal									2		¥ 2
Disposal of noncontrolling interest for deconsolidation									0		0
Loss / Income arising from defined benefit plan, net of tax								(27)			¥ (27)
Balance at ending outstanding (in shares) at Dec. 31, 2020 \| shares											3,108,425,680	3,108,425,680
Balance at ending at Dec. 31, 2020		0	¥ (107)			9,808	1,502	127	102		¥ 11,432
Treasury shares, balance (in shares) at Dec. 31, 2020 \| shares			30,967,640	30,967,640
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks		0									¥ 0
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks (in shares) \| shares											12,325,470	12,325,470
Return of loaned ADS in connection with issuance of Convertible Senior Notes due 2022 (in shares) \| shares										1,340
Return of loaned ADS in connection with issuance of Convertible Senior Notes due 2022	¥ 0				¥ 0					¥ 0
Share-based compensation						109					¥ 109
Net loss							(465)		(15)		(480)
Dividends to noncontrolling interest holders									(4)		(4)
Capital contribution from noncontrolling interest holders									16		16
Acquisition of noncontrolling interest						(3)			(11)		(14)
Foreign currency translation adjustments, net of tax of nil								(99)			(99)
Repurchase of ordinary shares			¥ 0								¥ 0
Repurchase of shares (in ordinary shares) \| shares											(6,400)	(6,400)
Repurchase of shares (in Treasury Shares) \| shares			6,400	6,400
Net settlement on shares repurchased for withholding taxes related to share-based awards						50					¥ 50
Noncontrolling interest recognized in connection with acquisitions									21		21
Loss / Income arising from defined benefit plan, net of tax								13			¥ 13
Balance at ending outstanding (in shares) at Dec. 31, 2021 \| shares											3,120,746,090	3,120,746,090
Balance at ending at Dec. 31, 2021		0	¥ (107)			9,964	1,037	41	109		¥ 11,044
Treasury shares, balance (in shares) at Dec. 31, 2021 \| shares			30,974,040	30,974,040							30,974,040	30,974,040
Treasury shares, balance at Dec. 31, 2021											¥ (107)
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks		0									¥ 0
Issuance of ordinary shares upon exercise of options and vesting of restricted stocks (in shares) \| shares											9,462,340	9,462,340
Return of loaned ADS in connection with issuance of Convertible Senior Notes due 2022 \| $				$ 104,251,120
Share-based compensation						87					¥ 87
Net loss							(1,821)		(28)		(1,849)	$ (268,000,000)
Dividends to noncontrolling interest holders									(6)		(6)
Capital contribution from noncontrolling interest holders									0		0
Gains from fair value changes of debt securities, net of tax of RMB19								57			57	8,000,000
Acquisition of noncontrolling interest						1			(2)		(1)
Foreign currency translation adjustments, net of tax of nil								112			112	$ 16,000,000
Cash dividends declared							(416)				(416)
Repurchase of ordinary shares			¥ 334	$ (17,794,700)							¥ 334
Repurchase of ordinary shares (in shares) \| shares											(17,794,700)	(17,794,700)
Noncontrolling interest recognized in connection with acquisitions									1		¥ 1
Loss / Income arising from defined benefit plan, net of tax								22			22	$ 3,000,000
Termination of Capped Call						86					¥ 86
Balance at ending outstanding (in shares) at Dec. 31, 2022 \| shares											3,112,413,730	3,112,413,730
Balance at ending at Dec. 31, 2022		¥ 0				¥ 10,138	¥ (1,200)	¥ 232	¥ 74		¥ 8,803	$ 1,277,000,000
Treasury shares, balance (in shares) at Dec. 31, 2022 \| shares			153,019,860	153,019,860							153,019,860	153,019,860
Treasury shares, balance at Dec. 31, 2022			¥ (441)								¥ (441)	$ (64,000,000)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0
Loss / Income arising from defined benefit plan, tax	10	4	13
Unrealized gains from fair value changes of debt securities, net of tax	¥ 19	¥ 0	¥ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Operating activities:
Net loss	¥ (1,849)	$ (268)	¥ (480)	¥ (2,204)
Adjustments to reconcile net loss to net cash provided by operating activities:
Share-based compensation	87	13	109	122
Depreciation and amortization	1,456	211	1,503	1,362
Amortization of issuance cost of convertible senior notes and upfront fee on bank borrowings	57	8	60	83
Deferred income taxes	(268)	(39)	(543)	(553)
Credit loss	82	12	105	65
Loss (gain) from disposal of property and equipment	(4)	(1)	(14)	1
Impairment loss	491	71	380	709
Loss from equity method investments, net of dividends	85	12	60	145
Foreign currency exchange loss (gain)	341	49	255	(176)
Investment loss (income)	321	47	(188)	284
Interest accretion for finance lease	16	2	4	27
Noncash lease expense	2,257	327	2,306	2,063
Gain on reassessment of finance lease payments	(66)	(10)
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(621)	(90)	(113)	35
Inventories	20	3	2	0
Amounts due from related parties	(57)	(8)	12	(14)
Other current assets	43	7	6	(147)
Other assets	149	22	(64)	(86)
Accounts payable	9	1	7	31
Amounts due to related parties	(30)	(4)	(4)	20
Salary and welfare payables	63	9	72	(46)
Deferred revenue	(19)	(3)	224	(52)
Accrued expenses and other current liabilities	507	74	(439)	445
Operating lease liabilities	(1,608)	(233)	(2,123)	(1,640)
Income tax payable	82	12	83	94
Other long-term liabilities	20	3	122	41
Net cash provided by operating activities	1,564	227	1,342	609
Investing activities:
Purchases of property and equipment	(1,049)	(152)	(1,658)	(1,745)
Purchases of intangibles	(4)	(1)	(17)	(28)
Purchases of land use rights	0	0		(3)
Amount received as a result of government zoning	4	0	33
Acquisitions, net of cash received	(57)	(8)	(742)	(5,060)
Proceeds from disposals of subsidiary and branch, net of cash disposed	6	1	3	4
Purchases of investments	(401)	(58)	(521)	(1,702)
Proceeds from maturity/sale and return of investments	937	136	1,494	396
Payment for shareholder loans to equity investees	(7)	(1)	(5)	(15)
Collection of shareholder loans from equity investees	12	2	25	15
Origination of loan receivables	(175)	(25)	(176)	(130)
Collection of loan receivables	212	30	162	167
Net cash used in investing activities	(522)	(76)	(1,402)	(8,101)
Financing activities:
Proceeds from issuance of ordinary shares in Hong Kong public offering				6,018
Proceeds from Termination of Capped Call	86	12
Payment of ordinary share issuance costs	0	0	(19)	(32)
Net settlement on shares repurchased for withholding taxes related to share-based awards			50
Net proceeds from issuance of ordinary shares upon exercise of options			1	1
Payment of repurchases of ordinary shares	(334)	(48)	0
Proceeds from short-term debt	4,249	616	2,288	1,658
Repayment of short-term debt	(1,935)	(281)	(2,474)	(1,993)
Proceeds from long-term debt	2,797	407	53	1,652
Repayment of long-term debt	(2,364)	(342)	(1,650)	(9,163)
Funds advanced from noncontrolling interest holders	1	0	4	14
Repayment of funds advanced from noncontrolling interest holders	(27)	(4)	(1)	(9)
Acquisitions of noncontrolling interest	(1)	0	(29)	(98)
Capital contributions from noncontrolling interest holders	0	0	16	10
Proceeds from long-term finance liabilities	55	8	38	83
Repayment of long-term finance liabilities	(49)	(7)	(46)	(42)
Dividends paid to noncontrolling interest holders	(6)	(1)	(4)	(4)
Dividends paid	(416)	(60)		(678)
Repayment of convertible senior notes	(3,406)	(494)	0
Proceeds from issuance of convertible senior notes				3,499
Direct financing costs paid	(4)	(1)		(10)
Principal payments of finance lease	(40)	(6)	(28)	(23)
Net cash provided by (used in) financing activities	(1,394)	(201)	(1,801)	883
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	297	43	(88)	(300)
Net increase (decrease) in cash, cash equivalents and restricted cash	(55)	(7)	(1,949)	(6,909)
Cash, cash equivalents and restricted cash at the beginning of the year	5,141	745	7,090	13,999
Cash, cash equivalents and restricted cash at the end of the year	5,086	738	5,141	7,090
Cash and cash equivalents	3,583		5,116	7,026
Restricted cash	1,503		25	64
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	5,086		5,141	7,090
Supplemental disclosure of cash flow information:
Interest paid, net of amounts capitalized	256	37	297	476
Income taxes paid	385	56	477	238
Supplemental schedule of non-cash investing and financing activities:
Purchases of property and equipment included in payables	652	95	486	736
Consideration payable for business acquisition	¥ 5	$ 1	86
Purchase of intangible assets included in payables			¥ 2	5
Reimbursement of government zoning included in receivables				¥ 2

ORGANIZATION AND PRINCIPAL ACTIVITIES

12 Months Ended

Dec. 31, 2022

ORGANIZATION AND PRINCIPAL ACTIVITIES

ORGANIZATION AND PRINCIPAL ACTIVITIES

1.ORGANIZATION AND PRINCIPAL ACTIVITIES

H World Group Limited (the “Company”) was incorporated in the Cayman Islands under the laws of the Cayman Islands on January 4, 2007. The principal business activities of the Company and its subsidiaries and consolidated variable interest entities (the “Group”) are to develop leased and owned, manachised and franchised hotels mainly in the People’s Republic of China (“PRC”) and Europe.

On January 2, 2020, the Group completed the acquisition of 100% equity interest of Steigenberger Hotels Aktiengesellschaft Germany (“Deutsche Hospitality” or “DH”). Deutsche Hospitality was engaged in the business of leasing, franchising, operating and managing hotels under five brands in the midscale and upscale market in Europe, the Middle East and Africa. After the acquisition, “legacy DH” refers to Deutsche Hospitality and its subsidiaries and “legacy Huazhu” refers to the Group excluding Deutsche Hospitality.

The Group completed public offering in Hong Kong in September 2020 with proceeds of RMB6,018 and the trading of ordinary shares on the Hong Kong Stock Exchange commenced on September 22, 2020 under the stock code “1179”.

In June 2021, the Company effected a share split that each ordinary share of the Company with a par value of US$0.0001 was sub-divided into 10 ordinary shares with a par value of US$0.00001 each. The ratio of ADS to ordinary share was adjusted from one (1) ADS representing one (1) ordinary share to one (1) ADS representing ten (10) ordinary shares. The share split has been retrospectively applied for all periods presented in the financial statements.

In June 2022, the English name of the Company was changed from “Huazhu Group Limited” to “H World Group Limited”.

Leased and owned hotels

The Group leases hotel properties from property owners or purchases properties directly and is responsible for all aspects of hotel operations and management, including hiring, training and supervising the managers and employees required to operate the hotels. In addition, the Group is responsible for hotel development and customization to conform to the standards of the Group brands at the beginning of the lease or the construction, as well as repairs and maintenance, operating expenses and management of properties over the term of the lease or the land and building certificate.

As of December 31, 2021 and 2022, the Group had 738 and 704 leased and owned hotels in operation, respectively.

Manachised and franchised hotels

The Group enters into franchise and management arrangements with franchisees for which the Group is responsible for providing branding, quality assurance, training, reservation, hiring and appointing of the hotel general manager and various other support services relating to hotel renovation and operations. Those hotels are classified as manachised hotels. Under the typical franchise and management agreements, the franchisee is required to pay an initial franchise fee and ongoing franchise and management service fees, which typically equal to a certain percentage of the revenues of the hotel. The franchisee is responsible for the costs of hotel development, renovation and the costs of its operations. The franchise and management agreements typically range from eight to ten years under legacy Huazhu, and 15 to 20 years for manachised hotels and 10 to 15 years for franchised hotels under legacy DH. These agreements are renewable upon mutual agreement between the Group and the franchisee. There are also some franchised hotels for which the Group does not provide a hotel general manager. As of December 31, 2021 and 2022, the Group had 6,824 and 7,617 manachised hotels in operation and 268 and 222 franchised hotels in operation, respectively.

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2022

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

2.SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Basis of consolidation

The consolidated financial statements include the financial statements of the Company, its majority-owned subsidiaries and consolidated variable interest entities (the “VIEs”). All intercompany transactions and balances are eliminated on consolidation.

Variable Interest Entities

The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support.

The Company is deemed as the primary beneficiary of and consolidates variable interest entities when the Company has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities.

As of December 31, 2021 and 2022, the Group consolidated seven and seven entities under VIE model, and the impact of the consolidated VIEs are immaterial to the Group’s consolidated financial statements.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include the useful lives and impairment of property and equipment, right-of-use assets and intangible assets with definite lives, valuation allowance of deferred tax assets, purchase price allocation, impairment of investment, goodwill and intangible assets without definite lives and incremental borrowing rate used to measure lease liabilities.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased.

Restricted cash

Restricted cash mainly represents deposits used as security against borrowings, deposits restricted due to contract disputes or lawsuit and cash restricted for special purposes.

Investments

The Group uses the equity method of accounting to account for equity investment with significant influence, no control over the investee. Equity-method investment is reviewed for impairment by assessing if the decline in market value of the investment below the carrying value is other-than-temporary. In making this determination, factors are evaluated in determining whether a loss in value should be recognized. These include consideration of the intent and ability of the Group to hold investment and the ability of the investee to sustain an earnings capacity, justifying the carrying amount of the investment.

Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with gains and losses from fair value changes recognized in net income in the consolidated statements of comprehensive income.

Equity investments without readily determinable fair values are measured at cost, less impairment, plus or minus observable price changes.

The Group classifies debt securities for which it does not have an intent to hold till maturity or may sell the security in response to the changes in economic conditions are classified as available-for-sale debt securities. These securities are carried at estimated fair value with unrealized holding gains and losses, net of tax impact, if any, reported as a net amount in a separate component of shareholders’ equity, accumulated other comprehensive income, until realized. Credit-related impairment is measured as the difference between the debt security’s amortized cost basis and the present value of expected cash flows and is recognized as an allowance on the balance sheet with a corresponding adjustment to earnings. The allowance should not exceed the amount by which the amortized cost basis exceeds fair value.

Allowances for Losses on Certain Financial Assets

The Group establishes allowances for credit losses on accounts receivable, loans receivables and certain other similar financial assets. For accounts receivables and other financial assets, the adequacy of these allowances is assessed regularly for pools of assets with similar risk characteristics by evaluating of factors such as historical levels of credit losses, current economic condition that may affect a customer’s ability to pay, customer credit ratings, and age of the receivable. When specific customers are identified as no longer sharing the same risk profile as their current pool, they are removed from the pool and evaluated separately.

For loan receivables, the Group estimate current expected credit losses based on the expectation of future economic conditions, historical collection experience and a loss-rate approach whereby the allowance is calculated using the probability of default and recovery rates and multiplying it by the asset’s amortized cost at the balance sheet date

Property and equipment, net

Property and equipment, net are stated at cost less accumulated depreciation. The renovations, betterments and interest cost incurred during construction are capitalized. Depreciation of property and equipment is provided using the straight line method over their expected useful lives. The expected useful lives are as follows:


Leasehold improvements		Shorter of the lease term or their estimated useful lives
Buildings		20-40 years
Furniture, fixtures and equipment		1-20 years
Motor vehicles		5 years

Construction in progress represents leasehold improvements and property under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use.

Expenditures for repairs and maintenance are expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive income as the difference between the net sales proceeds and the carrying amount of the underlying asset.

Intangible assets, net

Intangible assets consist primarily of brand name, master brand agreement, non-compete agreements, franchise or manachise agreements and purchased software.

Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives over which the assets are expected to contribute directly or indirectly to the future cash flows of the Group. These estimated useful lives are generally as follows:


Franchise or manachise agreements		Remaining contract terms from 10 to 20 years
Non-compete agreements		2 - 10 years based on specified non-compete period
Purchased software		3 - 10 years based on the estimated usage period
Other intangible assets including trademark, licenses and other rights		2 - 15 years based on the contractual term, the length of license agreements and the effective terms of other legal rights

Almost all the brand names and master brand agreement acquired by the Group are considered to have indefinite useful lives since there are no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these brands and these brands can be renewed at nominal cost. The Group evaluates the brand name and master brand agreement each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired.

Land use rights

The land use rights represent the operating lease prepayments for the rights to use the land in the PRC under ASC 842, Leases, which are amortized on a straight-line basis over the remaining term of the land certificates, between 30 to 50 years.

Impairment of long-lived assets

The Group evaluates its long-lived assets including property and equipment, net, right-of-use assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets.

The Group performed a recoverability test of its long-lived assets associated with certain hotels due to the continued underperformance relative to the projected operating results, of which the carrying amount of the long-lived assets exceeded the future undiscounted net cash flows, and recognized an impairment loss of RMB180, RMB157 and RMB297 during the years ended December 31, 2020, 2021 and 2022, respectively.

Fair value of the long-lived assets was determined by the Group based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected hotels’ revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results.

Goodwill

Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group performs a one-step impairment test in which it compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. Upon the acquisition of Deutsche Hospitality, the Group concludes there are two reporting units, which are legacy Huazhu and legacy DH. The goodwill impairment testing was performed at each reporting unit level. If the carrying amount of a reporting unit exceeds its fair value, an impairment amounts to that excess should be recognized in the statement of comprehensive income.

Revenue recognition

Revenue are primarily derived from products and services in leased and owned hotels, contracts of manachised and franchised hotels with third-party franchisees as well as activities other than the operation of hotel businesses.

Leased and owned hotel revenues

Leased and owned hotel revenues are primarily derived from the rental of rooms, sales of food, beverage and other ancillary goods and services, including but not limited to souvenir, laundry, parking and conference reservation. Each of these products and services represents an individual performance obligation and, in exchange for these services, the Group receives fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other goods and services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied.

Manachised and franchised hotel revenues

Manachised and franchised hotel revenues are derived from franchise or manachise agreements where the franchisees are required to pay (i) an initial one-time franchise fee, and (ii) continuing franchise fees, which mainly consist of (a) primarily on-going management and franchise service fees, (b) central reservation system usage fees, system maintenance and support fees and (c) reimbursements for hotel manager fees.

Initial one-time license/franchise fee: For the manachised and franchised hotel, the Group is entitled to an initial one-time franchise fee, which is typically fixed and collected upfront. Initial franchise fee is recognized as revenue on a straight-line basis over the term of the franchise agreements.

On-going management and franchise service/royalty fees: On-going management and franchise service/royalty fees for our manachised and franchised hotels are variable and generally calculated as a percentage of the room revenues of the hotels as defined by each contract. Generally, on-going management and franchise service/royalty fees are recognized on a monthly basis over the term of the agreements as these amounts became payable. For the manachised hotel under Deutsche Hospitality, the franchisees are required to pay the Group an on-going management fees consisting of a base fee as a percentage of the hotel’s gross revenues and an incentive fee as a percentage of the hotel’s gross adjusted profit. Based fee is recognized on a monthly basis over the term of the agreement when the amounts become payable. Incentive fee are recognized on a monthly basis over the term of the agreement based on each hotel’s financial results, as long as the Group does not expect a significant reversal of the hotel’s gross adjusted profit.

Central reservation system usage fees, other system maintenance and support fees: The group also charges a monthly system maintenance and support fees as part of the contracts. These fees are recognized on a monthly basis over the term of the agreements as these amount become payable.

Reimbursements for hotel manager fees: Under the management and franchise agreements, the Group is entitled to be reimbursed for payroll related for the appointed hotel general managers and other out-of-pocket expenses the Group incurs on behalf of the manachised hotels. The Group is entitled to reimbursement in the period the Group incurs the related reimbursable costs, which are recognized within manachised and franchised hotels revenue.

Other Revenues

Other revenues mainly include revenues from the provision of IT products and services and commissions charged from suppliers for goods sold through Hua Zhu mall. Revenue from commissions charged to suppliers for goods through Hua Zhu mall is recognized upon delivery of goods to end customers when the suppliers’ obligations are fulfilled. Revenues from IT products are recognized when goods are delivered and revenues from IT services are recognized when services are rendered.

Loyalty Program

H Reward loyalty program members earn loyalty points based on nights and other consumptions that they spent at the Group’s hotels and Huazhu Mall. These loyalty points can be redeemed for future products and services. Points earned by loyalty program members represent a material right to free or discounted goods or services in the future. The loyalty program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. The Group is responsible for arranging for the redemption of points, but the Group does not directly fulfill the redemption obligation except at leased and owned hotels. Therefore, the Group is the agent with respect to this performance obligation for manachised and franchised hotels, and is the principal with respect to leased and owned hotels.

For leased and owned hotels, a portion of the leased and owned revenues is deferred until a member redeems points. The amount of revenue the Group recognizes upon point redemption is impacted by the estimate of the “breakage” for points that members will never redeem in the Group’s owned and leased hotels.

For manachised and franchised hotels, we receive monthly cash contributions from manachised and franchised hotels determined based on the value of qualified spend by Loyalty Program members (when the points earned). We recognize these contributions into revenue as we provide the related service. The amount of revenue we recognize is based on a blend of historical funding rates and is impacted by our estimate of the “breakage” for points that members will never redeem.

Membership fees from the Group’s customer loyalty program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. The membership duration is estimated to be two to five years which reflects the expected membership retention. Revenues recognized from membership fees were RMB223, RMB243 and RMB267 for the years ended December 31, 2020, 2021 and 2022, respectively, which amount were included in revenues from leased and owned hotel or revenues from manachised and franchised hotels depending on the type of hotels the membership was sold at.

Advertising and promotional expenses

Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income as incurred, and amounted to RMB150, RMB165 and RMB128 for the years ended December 31, 2020, 2021 and 2022, respectively.

Leases

The Group determines if an arrangement is a lease or contains a lease at the inception of the contract. A lease arrangement is being evaluated for classification as operating or financing upon lease commencement. Lease liabilities, which represent the Group’s obligation to make lease payments arising from the lease, and corresponding right of-use assets, which represent the Group’s right to use an underlying asset for the lease term, are recognized at the commencement date of the lease based on the present value of fixed future payments and variable lease payments that depend on an index or a rate (initially measured using the index or rate as at the commencement date) over the lease term, calculated using the discount rate implicit in the lease, if available, or the Group’s incremental borrowing rate. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term and lease expense relating to variable payments is expensed as incurred. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset.

Most leases have initial terms ranging from 10 to 20 years for legacy Huazhu, and from 20 to 25 years for legacy DH. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that the Group will exercise such extension options and not exercise such early termination options, respectively. The Group’s lease agreements may include nonlease components, mainly common area maintenance, which are combined with the lease components as the Group elects to account for these components as a single lease component, as permitted. The Group elected the practical expedient of not to separate land components outside PRC from leases of specified property and equipment at the ASC842 transition date. Besides, the Group’s lease payments are generally fixed and certain agreements contain variable lease payments based on the operating performance of the leased property and the changes in the index of consumer pricing index (“CPI”). Almost all the lease agreements with variable lease payments based on the changes in CPI are held by legacy DH.

For operating leases, the Group recognizes lease expense on a straight-line basis over the lease term and variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period in which the obligation for those payments is incurred. The operating lease expense is recognized as hotel operating costs, general and administrative expenses and pre-opening expenses in the consolidated statements of comprehensive income. For finance lease, lease expense is generally front-loaded as the finance lease ROU asset is depreciated on a straight-line basis over the shorter of the lease term or useful life of the underlying asset within hotel operating costs in the consolidated statements of comprehensive income, but interest expense on the lease liability is recognized in interest expense in the consolidated statements of comprehensive income using the effective interest method which results in more expense during the early years of the lease. Additionally, the Group elected not to recognize leases with lease terms of 12 months or less at the commencement date. Lease payments on short-term leases are recognized as an expense on a straight-line basis over the lease term, not included in lease liabilities. The Group’s lease agreements do not contain any significant residual value guarantees or restricted covenants.

The Group reassesses of a contract is or contains a leasing arrangement and re-measures ROU assets and liabilities upon modification of the contract. The Group will derecognize ROU assets and liabilities, with difference recognized in the consolidated statements of comprehensive income on the contract termination.

Income taxes

Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations.

Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. Net operating losses are carried forward and credited by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of the Group, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. For a particular tax-paying component of an entity and within a particular tax jurisdiction, all deferred tax liabilities and assets, as well as any related valuation allowance, shall be offset and presented as a single noncurrent amount. However, an entity shall not offset deferred tax liabilities and assets attributable to different tax-paying components of the entity or to different tax jurisdictions.

Foreign currency translation

The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company is the United States dollar (“US$”). Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured in functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing on the day transactions occurred. Transaction gains and losses are recognized in the statements of comprehensive income.

Assets and liabilities are translated into RMB at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of comprehensive income.

The financial records of the Group’s subsidiaries are maintained in local currencies, which are the functional currencies.

Fair value

The established fair value hierarchy by U.S. GAAP has three levels based on the reliability of the inputs used to measure fair value:

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Group’s financial instruments include cash and cash equivalent, restricted cash, loan receivables, other receivables, payables, short-term debts, long-term debts. The carrying amounts of the short-term financial instruments approximates their fair value due to their short-term nature. The long-term debts and long-term loan receivables approximate their fair values, because the bearing interest rates approximate market interest rate, and market interest rates have not fluctuated significantly since the commencement of loan contracts signed. Convertible senior notes are measured at amortized costs of RMB6,318, RMB6,186 and RMB3,463 and the corresponding fair value estimated based on quoted market price were RMB7,747, RMB6,681 and RMB4,283, as of December 31, 2020, 2021 and 2022, respectively.

The following table presents our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.


As of December 31, 2021	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active	Significant Other	Significant
	Markets for Identical	Observable Inputs	Unobservable
Description	Assets (Level 1)	(Level 2)	Inputs (Level 3)
Equity securities with readily determinable fair value	2,589	—	—
Available-for-sale debt securities	—	220	—
Employee benefit plan assets	5	—	—


As of December 31, 2022	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active	Significant Other	Significant
	Markets for Identical	Observable Inputs	Unobservable
Description	Assets (Level 1)	(Level 2)	Inputs (Level 3)
Equity securities with readily determinable fair value	1,788	—	—
Available-for-sale debt securities	—	—	296
Employee benefit plan assets	13	—	—

Equity securities with readily determinable fair value and employee benefit plan assets are valued using a market approach based on the quoted market prices or broker/dealer quotes of identical or comparable instruments.

Level 3 fair value of available-for-sale debt securities is determined based on income approach using various unobservable inputs. The determination of the fair value required significant judgement by management with respect to the assumptions and estimates for the revenue growth rate, weighted average cost of capital, lack of marketability discounts, expected volatility and probability in equity allocation.

Certain assets are measured at a non-recurring basis. The following table presents the asset classification, the fair value and the non-recurring losses recognized for the years ended December 31, 2021 and 2022 due to impairment of the related assets.


As of December 31, 2021		Fair Value Measurements at Reporting Date Using
		Significant Unobservable	Total Loss for
Description	Fair Value	Inputs (Level 3)	the Year
Property and equipment	33	33	24
Operating lease right-of-use assets	88	88	48
Intangible assets	2,556	2,556	245
Long-term investment	—	—	63


As of December 31, 2022		Fair Value Measurements at Reporting Date Using
		Significant Unobservable	Total Loss for
Description	Fair Value	Inputs (Level 3)	the Year
Property and equipment	38	38	218
Operating lease right-of-use assets	336	336	76
Intangible assets	388	388	170
Long-term investment	11	11	27

Property and equipment, operating lease right-of-use assets and intangible assets were primarily valued using the income approach based on discounted cash flows associated with the underlying assets, which incorporate certain assumptions including projected hotels’ revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. The revenue growth rate and the discount rate were the significant unobservable input used in the fair value measurement, which are ranged between negative 15% and 4%, 8.64% and 12% respectively, for the years ended December 31, 2020, 2021 and 2022, respectively.

Share-based compensation

The Group recognizes share-based compensation in the consolidated statements of comprehensive income based on the fair value of equity awards on the date of the grant, with compensation expenses recognized over the period in which the grantee is required to provide service to the Group in exchange for the equity award. Vesting of certain equity awards are based on the performance conditions for a period of time following the grant date. Share-based compensation expense is recognized according to the Group’s judgement of likely future performance and will be adjusted in future periods based on the actual performance.

Earnings (losses) per share

Basic earnings (losses) per share is computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings (losses) per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares, which consist of the ordinary shares issuable upon the conversion of the convertible senior notes (using the if-converted method) and ordinary shares issuable upon the exercise of stock options and vest of nonvested restricted stocks (using the treasury stock method).

Recently Issued Accounting Pronouncements

Adopted Accounting Standards

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance. The amendments in this ASU require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. The amendments in this ASU are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. Early application of the amendments is permitted. The Group adopted the guidance on January 1, 2022, as required. There was no material impact on the Group’s consolidated financial statements and related disclosures as a result of adopting this new standard.

Accounting Standards Not Yet Adopted

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). The amendments create an exception to the general recognition and measurement principal in ASC 805, Business Combinations to measure assets and liabilities acquired in a business combination at fair value. Instead, an acquirer in a business combination will be required to apply ASC 606 to recognize and measure contract assets and contract liabilities that result from contracts accounted for under ASC 606 on the acquisition date and will generally result in the acquirer recognizing amounts consistent with those recorded by the acquiree immediately before the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. The Group does not expect the adoption of this ASU will have a significant impact on the consolidated financial statements.

In June 2022, the FASB issued ASU No. 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The update also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity securities subject to contractual sale restrictions. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. The Group does not expect the adoption of this ASU will have a significant impact on the consolidated financial statements.

Translation into United States Dollars

The financial statements of the Group are stated in RMB. Translations of amounts from RMB into United States dollars are solely for the convenience of the reader and were calculated at the rate of US$1 = RMB6.8972, on December 30, 2022, as set forth in H.10 statistical release of the Federal Reserve Board. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into United States dollars at that rate on December 30, 2022, or at any other rate.

ACQUISITIONS

12 Months Ended

Dec. 31, 2022

ACQUISITIONS

ACQUISITIONS

3.ACQUISITIONS

On January 2, 2020, the Group completed an acquisition of 100% equity interest of Deutsche Hospitality. Deutsche Hospitality was engaged in the business of leasing, franchising, operating and managing hotels under five brands in the midscale and upscale market in Europe, the Middle East and Africa. The aggregated consideration was EUR720 million (equivalent to RMB5,624) which has been fully paid in cash as of January 2, 2020.

The allocation of the purchase price as of the date of acquisition is summarized as follows:


		Amortization Period
Current assets	785
Property and equipment, net	586	2-25 years
Operating lease right-of-use assets	8,616	Remaining lease terms
Financing lease right-of-use assets	1,794	Shorter of estimated useful lives of the assets and the lease terms
Franchise or manachise agreements	270	Remaining contract terms
Brand names	3,873	Indefinite-life
Non-compete agreement	10	2 years
Goodwill	2,694
Deferred tax assets	170
Other non-current assets	280
Operating lease liabilities, current	(296)
Finance lease liabilities, current	(21)
Other current liabilities	(784)
Operating lease liabilities, non-current	(8,553)
Finance lease liabilities, non-current	(2,166)
Other noncurrent liabilities	(330)
Deferred tax liabilities	(1,304)
Total	5,624

Goodwill was recognized as a result of expected synergies from combining operations of the Group and acquired business and other intangible assets that don’t qualify for separate recognition. The goodwill generated from the DH acquisition is allocated to the reporting unit of legacy DH.Goodwill is not deductible for tax purposes.

On April 30, 2021, the Group completed the acquisition of 100% equity interest of CitiGO hotels from Cjia Group, a related party of the Group. CitiGO brand is a light luxury and social hotel brand, which are mainly distributed in first and second-tier cities in China. The aggregated consideration was RMB783 and RMB749 was paid in cash as of December 31, 2021.

The allocation of the purchase price as of the date of acquisition is summarized as follows:


		Amortization Period
Current assets	34
Property and equipment	296	5-12 years
Operating lease right-of-use assets	1,119	Remaining lease terms
Other non-current assets	33
Franchise agreement	61	Remaining contract terms
Brand names	90	Indefinite-life
Goodwill	372
Operating lease liabilities, current	(153)
Other current liabilities	(23)
Operating lease liabilities, non-current	(987)
Other noncurrent liabilities	(5)
Deferred tax liabilities	(33)
Noncontrolling interest	(21)
Total	783

Goodwill was recognized as a result of expected synergies from combining operations of the Group and acquired business and other intangible assets that don’t qualify for separate recognition. All the acquired business has been migrated to the Group’s business. The goodwill generated from the CitiGO acquisition is allocated to the reporting unit of legacy Huazhu. Goodwill is not deductible for tax purposes.

During the years ended December 31, 2020, 2021 and 2022, the Group acquired three, three and seven individual companies for total cash consideration of RMB26, RMB51 and RMB9, respectively. The business acquisitions were accounted for under purchase accounting. The assets and liabilities of these hotels and companies acquired in 2020, 2021 and 2022 were immaterial to the consolidated financial statements.

REVENUE

12 Months Ended

Dec. 31, 2022

REVENUE

REVENUE

4.REVENUE

Disaggregated Revenues

The following tables present the Group’s revenues disaggregated by the nature of the product or service:


	Years Ended December 31,
	2020	2021	2022
Room revenues	5,735	7,024	7,571
Food and beverage revenues	608	694	1,049
Others	565	400	528
Leased and owned hotels revenue	6,908	8,118	9,148
Initial one-time license/franchise fee	110	109	106
On-going management and service/royalty fees	1,057	1,479	1,375
Central reservation system usage fees, other system maintenance and support fees	908	1,399	1,262
Reimbursements for hotel manager fees	657	897	1,103
Other fees	404	520	559
Manachised and franchised hotels revenue	3,136	4,404	4,405
Other revenues	152	263	309
Total revenues	10,196	12,785	13,862

Contract Balances

The Group’s contract assets are insignificant at December 31, 2021 and 2022.


	As of December 31,
	2021	2022
Current contract liabilities	1,366	1,308
Long-term contract liabilities	785	828
Total contract liabilities	2,151	2,136

The contract liabilities balances above are classified as deferred revenue on the consolidated balance sheet, as of December 31, 2021 and 2022.

The Group recognized revenues that were previously deferred as contract liabilities of RMB613 and RMB655 during the years ended December 31, 2021 and 2022, respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2022

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

5.PROPERTY AND EQUIPMENT, NET

Property and equipment, net consist of the following:


	As of December 31,
	2021	2022
Cost:
Buildings	305	843
Leasehold improvements	10,467	10,952
Furniture, fixtures and equipment	2,348	2,520
Motor vehicles	3	3
	13,123	14,318
Less: Accumulated depreciation	6,845	7,727
	6,278	6,591
Construction in progress	778	193
Property and equipment, net	7,056	6,784

Depreciation expense was RMB1,219, RMB1,352 and RMB1,312 for the years ended December 31, 2020, 2021 and 2022, respectively.

INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2022

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

6.INTANGIBLE ASSETS, NET

Intangible assets, net consist of the following:


	As of December 31,
	2021	2022
Intangible assets with indefinite lives:
Brand names	5,010	5,111
Master brand agreement	192	192
Intangible assets with finite lives:
Franchise or manachise agreements	366	368
Purchased software	142	128
Other intangible assets	81	77
Total	5,791	5,876
Less: Accumulated amortization	163	178
Less: Accumulated impairment loss(Note2)	243	420
Total	5,385	5,278

Amortization expense of intangible assets for the years ended December 31, 2020, 2021 and 2022 amounted to RMB62, RMB65, and RMB45, respectively.

There were 3 brand names with indefinite lives acquired in DH acquisition. In 2021, the estimated fair value of one brand name was determined to be lower than its carrying amount, as such, an impairment loss of RMB160 was recognized.

In 2022, the estimated fair value of one brand name was determined to be lower than its carrying amount, as such, an impairment loss of RMB167 was recognized in 2022.

The annual estimated amortization expense for the above intangible assets excluding brand names and master brand agreement for the following years is as follows:


		Amortization for Intangible Assets
2023		36
2024		33
2025		31
2026		29
2027		28
Thereafter		151
Total		308

INVESTMENTS

12 Months Ended

Dec. 31, 2022

INVESTMENTS.

INVESTMENTS

7.INVESTMENTS

The investments as of December 31, 2021 and 2022 were as follows:


	As of December 31,
	2021	2022
Short-term investments
Equity securities with readily determinable fair values:
Accor	2,508	1,701
Other marketable securities	81	87
Total	2,589	1,788

Long-term investments
Equity securities without readily determinable fair values:
Cjia Group-preferred shares	168	138
OYO	54	54
Other equity securities without readily determinable fair values	71	65
Subtotal	293	257
Equity-method investments:
AAPC LUB	525	494
Hotel related funds	488	443
China Hospitality JV	99	67
Zleep	68	70
Commerz Real Institute	85	80
Other investments	187	238
Subtotal	1,452	1,392
Available-for-sale debt securities:
Cjia Group-convertible notes	220	296
Total	1,965	1,945

Equity securities with readily determinable fair values:

In 2020, 2021 and 2022, the Group purchased 8,737,987 and 1,180,000 and nil ordinary shares of Accor, respectively, a hotel group listed in Paris stock exchange, from open market. The Group sold 5,172,458 and 2,397,596 of these shares with gains of RMB209 and RMB74 realized, for the years ended December 31, 2021 and 2022 respectively. As of December 31, 2022, the Group hold 9,814,956 shares of Accor, which accounts for less than 5% of Accor total outstanding shares where the Group does not have the ability to significantly influence the operations of this entity. In 2021 and 2022, the Group recognized losses from fair value changes of Accor of RMB94 and RMB358, respectively.

Equity securities without readily determinable fair values:

As of December 31, 2022 the Group held RMB138 preferred shares of Cjia Group. The preferred shares are accounted for as equity securities without readily determineable fair value as they are not in substance ordinary shares.

In September 2017, the Group purchased approximately 1% equity interest of Oravel Stays Private limited (“OYO”), an India leading hospitality company. During the year ended December 31, 2021, the group sold part of equity interest, and recognized investment income of RMB52 in 2021. As of December 31, 2021 and 2022, the Group owned less than 1% equity interest of OYO.

Other equity securities without readily determinable fair values included several insignificant investments in certain privately-held companies. As a result of the COVID-19 pandemic, the Group recognized an impairment of nil and RMB7 for these equity securities for the year ended December 31, 2021 and 2022, respectively.

Equity-method investments:

In January 2016, the Group acquired approximately 28% equity interest in AAPC LUB. The Group accounted for the investment in AAPC LUB under equity-method as the Group has the ability to exert significant influence. The Group recognized investment income of RMB21, RMB35 and RMB16 in income (loss) from equity method investments in 2020, 2021 and 2022, respectively. In 2020, 2021 and 2022, the Group received cash dividend from AAPC LUB of nil, nil and RMB47 which was recognized as return on investment.

As of December 31, 2021 and 2022, the Group had RMB488 and RMB443, respectively, of investments in hotel related funds. Those funds were VIEs and were managed by or power shared with un-related third-parties. However, the Group determined that they were not the primary beneficiary of those VIEs since the Group did not have the power to direct the activities of these VIEs that most significantly impacted their economic performance. The Group accounted for the investment under equity-method as the Group’s influence over the funds is more than minor. The Group recognized investment loss of RMB16, RMB55 and RMB31, in income (loss) from equity method investments in 2020, 2021 and 2022, respectively. The maximum potential financial statement loss the Group could incur if the investment funds were to default on all of their obligations is the loss of value of the interests in such investments of RMB443 that the Group holds as of December 31, 2022.

In 2018, the Group partnered with an unrelated third party investor to form China Hospitality JV, Ltd. (“China Hospitality JV”), of which the Group holds 20% equity interest. The business of China Hospitality JV was to acquire and operate two hotel properties, one of which has been converted into office buildings in 2020. The Group accounted for the investment in China Hospitality JV under equity-method as the Group has the ability to exert significant influence. During the year ended December 31, 2022, the Group received cash dividend of RMB54 which was recognized as return of investment. The Group recognized investment loss of RMB12, RMB4, and investment income of RMB22 in income (loss) from equity method investments in 2020, 2021 and 2022, respectively.

In February 2019, Deutsche Hospitality acquired 51% of the shares in Zleep Hotels A/S (“Zleep”), a hotel brand in Scandinavia. The Group’s interest in Zleep is accounted for using the equity method in the consolidated financial statements because the Group has joint control only in the business and finance decisions due to voting right restrictions. The Group recognized investment loss of RMB12 and RMB0 in income (loss) from equity method investments in 2021 and 2022.

In 2021, the Group partnered with an unrelated third party investor who acted as a general partner to form Commerz Real Institute, of which the Group holds 34% equity interest as a limited shareholder at the consideration of EUR12 million. Commerz Real Institute was designed as an open-ended investment fund to build a portfolio of hotels in prestigious locations. The Group accounted for the investment in Commerz Real Institute under equity-method as the Group’s significant influence over the funds is more than minor. The Group recognized investment loss of RMB1 and RMB7 in income (loss) from equity method investments in 2021 and 2022.

Other investments included several insignificant equity investments in certain privately-held companies. As a result of the COVID-19 pandemic, the Group recognized an impairment of RMB63 and RMB20 for these equity investments for the year ended December 31, 2021 and 2022.

GOODWILL

12 Months Ended

Dec. 31, 2022

GOODWILL.

GOODWILL

8.GOODWILL

The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2022 were as follows:


	Legacy Huazhu	Legacy DH	Total
Balance at January 1, 2021
Goodwill	2,664	2,768	5,432
Accumulated impairment loss	(4)	(440)	(444)
	2,660	2,328	4,988
Goodwill acquired during the year (Note 3)	372	6	378
Net foreign exchange-goodwill	—	(278)	(278)
Net foreign exchange-impairment loss	—	44	44
Balance at December 31, 2021
Goodwill	3,036	2,496	5,532
Accumulated impairment loss	(4)	(396)	(400)
	3,032	2,100	5,132
Goodwill acquired during the year	—	4	4
Net foreign exchange-goodwill	—	70	70
Net foreign exchange-impairment loss	—	(11)	(11)
Balance at December 31, 2022
Goodwill	3,036	2,570	5,606
Accumulated impairment loss	(4)	(407)	(411)
	3,032	2,163	5,195

The goodwill of legacy Huazhu was not impaired for the years ended December 31, 2021 and 2022. The Group recorded an impairment loss of RMB437 against goodwill of legacy DH for the year ended December 31, 2020. As the estimated fair value of the reporting unit of legacy DH exceeded its carrying value, no impairment loss was recorded for the years ended December 31, 2021 and 2022.

As of December 31, 2021 and 2022, the estimated fair value of the reporting unit of legacy Huazhu exceeded over 100% of its carrying value. As of December 31, 2021 and 2022, the estimated fair value of the reporting unit of legacy DH exceeded its carrying value by approximately RMB421 and RMB769, which accounted for 13% and 25% of its carrying value, respectively. A 5% decline in the underlying projected cash flow or increase in the discount rate could have resulted in goodwill impairment loss of approximately RMB313 and RMB359 in 2021. A 5% decline in the underlying projected cash flows or increase in the discount rate could not result in an impairment loss in 2022.

DEBT

12 Months Ended

Dec. 31, 2022

DEBT

DEBT

9.DEBT

The short-term and long-term debt as of December 31, 2021 and 2022 were as follows:


	As of December 31,
	2021	2022
Short-term debt:
Long-term bank borrowings, current portion	2,464	208
Short-term bank borrowings	692	3,035
Convertible senior notes, current portion	3,029	—
FF&E liability, current portion	47	45
Total	6,232	3,288

Long-term debt:
Long-term bank borrowings, non-current portion	211	2,929
Convertible senior notes, non-current portion	3,158	3,463
FF&E liability, non-current portion	180	228
Others	16	15
Total	3,565	6,635

Bank borrowings

In December 2019, the Group entered into a EUR440 million term facility and US$500 million revolving credit facility agreement with several banks. As of December 31, 2021, the outstanding loan amount was EUR338 million and had been reclassified to long-term bank borrowings, current portion. As of December 31, 2022, the outstanding loan amount of EUR338 million has been fully paid off.

In January 2021, the Group entered into a twelve-year syndicated loan contract with facility amount of RMB650 expiring in December 2032. The loan is used for the construction project of the Group’s headquarters buildings. The interest rate resets every year, and is based on the People’s Bank of China five-year benchmark LPR minus certain basis points on the pricing date. The mortgage ratio covenant is related to this facility. The Group was fully in compliance with the further amended covenants as of December 31, 2022. As of December 31, 2021 and 2022, the outstanding loan amount is RMB53 and RMB53 respectively. The weighted average interest rate of borrowings drawn under this agreement was 4.41% and 4.19%, respectively. The interest was fully capitalized and with the amount of RMB1 and RMB2 million for the years ended December 31, 2021 and 2022, respectively.

In August 2022, the Group entered into a 3-year long-term facility of EUR220 million and RMB-equivalent of EUR110 million term facility, and EUR70 million revolving credit facility agreement with several banks. The EUR70 million revolving credit facility is available for 35 months after the date of the agreement. The interest rate on the loan for each interest period is the aggregate of the applicable Margin and EURIBOR or one-year benchmark LPR. The margin for each loan depends on the currency of loan, a loan denominated in EUR means 1.55% per annum and a loan denominated in RMB means -0.15% per annum. There are some financial covenants including interest cover, leverage and book equity related to this facility. As of December 31, 2022, the Group had drawn down EUR220 million, RMB equivalent of EUR110 million and EUR70 million under the facility agreement and repaid nil. For the year ended December 31, 2022, the weighted average interest rate of borrowings drawn under this agreement was 3.01%.

In October 2022, the Group entered into a one-year uncommitted term loan facility of up to US$123 million which is to be made by single drawing only. The Group had drawn down US$121 million under this agreement, the interest rate was fixed at 5.4% per annum. As of December 31, 2022, the outstanding loan amount was US$121 million.

In October 2022, the Group entered into a one-year USD dominated facility agreement that it could draw down no more than RMB1,000 with interest rate to be determined case-by-case. The Group had drawn down US$65 million as of December 31, 2022 under the facility agreement and repaid all the bank borrowings in advance in January 2023.

Convertible Senior Notes due 2022

On November 3, 2017, the Company issued US$475 million of Convertible Senior Notes (the “2022 Notes”). The 2022 Notes mature on November 1, 2022 and bear interest at a rate of 0.375% per annum, payable in arrears semi-annually on May 1 and November 1, beginning May 1, 2018.

Holders of the 2022 Notes have the option to convert their Notes at any time prior to the close of business on the second business day immediately preceding the maturity date. The 2022 Notes can be converted into the Company’s ADSs at an initial conversion rate of 5.4869, before the ADSs split, of the Company’s ADSs per US$1,000 principal amount of the 2022 Notes (equivalent to an initial conversion price of US$182.25 per ADS before the ADSs split effected in May 2018). The conversion rate is subject to adjustment in some events but is not adjusted for any accrued and unpaid interest. In addition, following a make-whole fundamental change (as defined in the Indenture) that occur prior to the maturity date or following the Company’s delivery of a notice of a tax redemption, the Company will increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or such tax redemption.

The holders were able to require the Company to repurchase all or portion of the 2022 Notes for cash on November 2, 2020, or upon a fundamental change, at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest.

During the years ended December 31, 2020 and 2021, RMB0.06 and RMB0.04 of the 2022 Notes had been converted into 202 ADSs and 134 ADSs upon the holders’ request, respectively. As of December 31, 2021, the Group reclassified the 2022 Notes as short-term debt as the 2022 Notes mature on November 1, 2022. The Group had redeemed the remaining part of US$475 million of 2022 Notes on November 1, 2022.

ADS Lending Arrangement

Concurrent with the offering of the 2022 Notes, the Company entered into ADS lending agreements with the affiliates of the initial purchasers of the 2022 Notes (“ADS Borrowers”), pursuant to which the Company lent to the ADS Borrowers 2,606,278 ADSs (the “Loaned ADSs”) at a price equal to par, or $0.0004 per ADS before the ADSs split (“ADS lending arrangement”). The purpose of the ADS lending arrangements is to facilitate privately negotiated transactions in which the ultimate holders of the 2022 Notes may elect to hedge their investment in the related notes.

The Loaned ADSs must be returned to the Company by the earliest of (a) the maturity date of the 2022 Notes, November 1, 2022, (b) upon the Company’s election to terminate the ADS lending agreement at any time after the later of (x) the date on which the entire principal amount of the 2022 Notes ceases to be outstanding, and (y) the date on which the entire principal amount of any additional convertible securities that the Company has in writing consented to permit the ADS Borrower to hedge under the ADS lending agreement ceases to be outstanding, in each case, whether as a result of conversion, redemption, repurchase, cancellation or otherwise; and (c) the termination of the ADS lending agreement. The Company is not required to make any payment to the initial purchasers or ADS Borrower upon the return of the Loaned ADSs. The ADS Borrowers do not have the choice or option to pay cash in exchange for the return of the Loaned ADSs.

No collateral is required to be posted for the Loaned ADSs. The initial purchasers are required to remit to the Company any dividends paid to the holders of the Loaned ADSs. An ADS Borrower has the ability to vote without restriction. However, the ADS Borrowers have agreed not to vote on the Loaned ADSs.

In May 2018, the Company changed the ADS to ordinary share ratio from one ADS representing four ordinary shares to one ADS representing one ordinary share. Therefore, as of December 31, 2020 and 2021, the outstanding number of Loaned ADSs was 10,425,112. All these Loaned ADSs had been returned to the Company with the maturity of 2022 Notes, and was accounted for as an increase to the treasury shares.

Capped Call Options

In connection with the issuance of the 2022 Notes, the Group entered into capped call option transactions with some of the initial purchasers or their affiliates (the “Option Counterparties”) to reduce the potential dilution to existing shareholders of the Group upon conversion of the 2022 Notes. In June 2022, the Group and Option Counterparties terminated these capped call transactions before the conversion date of convertible notes on November 1, 2022 with the settlement amount of US$12.8 million, which was received by the Group in July 2022. The settlement amount of US$12.8 million was recorded as an increase to additional paid-in capital.

Convertible Senior Notes due 2026

On May 12, 2020, the Company issued US$450 million Convertible Senior Notes (the “2026 Notes”). On May 26, 2020, the Company issued an additional US$50 million in aggregate principal amount of the 2026 Notes pursuant to the exercise in full by the initial purchasers of an option to purchase additional notes. The 2026 Notes will mature on May 1, 2026 and bear interest at a rate of 3.00% per annum, payable in arrears semi-annually on May 1 and November 1 of each year, beginning on November 1, 2020. In 2020, proceeds to the Company were RMB3,499 (equivalently US$493 million), net of issuance costs of RMB49 (equivalently US$7 million).

Holders of the 2026 Notes have the option to convert their Notes at any time prior to the close of business on the second business day immediately preceding the maturity date. The 2026 Notes can be converted into the Company’s ADSs at an initial conversion rate of 23.971 of the Company’s ADSs per US$1,000 principal amount of the 2026 Notes (equivalent to an initial conversion price of US$41.72 per ADS). The conversion rate is subject to adjustment in some events but is not adjusted for any accrued and unpaid interest. In addition, following a make-whole fundamental change (as defined in the Indenture) that occur prior to the maturity date or following the Company’s delivery of a notice of a tax redemption, the Company will increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or such tax redemption.

The holders may require the Company to repurchase all or portion of the 2026 Notes for cash on May 1, 2024, or in the event of certain fundamental changes, at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest.

The Company accounted for the 2026 Notes as a single instrument. Issuance costs related to the 2026 Notes is recorded in consolidated balance sheet as a direct deduction from the principal amount of the 2026 Notes, and is amortized over the period from May 12, 2020, the date of issuance, to May 1, 2024, the first put date of the 2026 Notes, using the effective interest method.

FF&E Liability

The Group entered into several contracts with lessors to install furniture, fixtures and equipment (“FF&E”) in various leased hotels prior to the respective commencement date. Those transactions are classified as “failed” sale and leaseback transactions, as the control of the furniture, fixtures and equipment does not transfer to the lessor. Consequently, the received consideration from the lessor is accounted for as a liability. The current portion and non-current portion of FF&E liability are recorded in short-term debt and long-term debt, respectively.

Debt Maturities

The contractual maturities of the Group’s debt as of December 31, 2022 were as follows:


Year Ending December 31,		Principal Amounts
2023		3,287
2024		3,755
2025		2,735
2026		34
2027		28
Thereafter		100
Total		9,939

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1I
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

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-Paragraph 1I
-Subparagraph (d)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (b)
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-Name Accounting Standards Codification
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-SubTopic 20
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-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
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-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2022

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

10.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	As of December 31,
	2021	2022
Payable to franchisees	710	652
Other payables	535	850
Accrued utilities and other accrued expenses	209	332
Liabilities related to customer loyalty program	135	166
Value-added tax, other tax and surcharge payables	132	234
Advance from noncontrolling interest holders	117	103
Total	1,838	2,337

HOTEL OPERATING COSTS

12 Months Ended

Dec. 31, 2022

HOTEL OPERATING COSTS.

HOTEL OPERATING COSTS

11.HOTEL OPERATING COSTS

Hotel operating costs include all direct costs incurred in the operation of the leased and owned hotels, manachised and franchised hotels and consist of the following:


	Years Ended December 31,
	2020	2021	2022
Rents	3,485	3,900	3,927
Utilities	478	507	603
Personnel costs	2,501	3,022	3,683
Depreciation and amortization	1,316	1,413	1,414
Consumable, food and beverage	885	969	1,026
Others	1,064	1,471	1,607
Total	9,729	11,282	12,260

PRE-OPENING EXPENSES

12 Months Ended

Dec. 31, 2022

PRE-OPENING EXPENSES

PRE-OPENING EXPENSES

12.PRE-OPENING EXPENSES

The Group expenses all costs incurred in connection with start-up activities, including pre-operating costs associated with new hotel facilities and costs incurred with the formation of the subsidiaries, such as organization costs. Pre-opening expenses primarily include rental expenses and employee costs incurred during the hotel pre-opening period.


	Years Ended December 31,
	2020	2021	2022
Rents	251	68	84
Personnel costs	15	5	5
Others	22	8	6
Total	288	81	95

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2022

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

13.SHARE-BASED COMPENSATION

In February 2007, the Group adopted the 2007 Global Share Plan which allows the Group to offer incentive awards to employees, officers, directors and consultants or advisors (the “Participants”). Under the 2007 Global Share Plan, the Group may issue incentive awards to the Participants to purchase not more than 100,000,000 ordinary shares. In June 2007, the Group adopted the 2008 Global Share Plan which allows the Group to offer incentive awards to Participants to purchase up to 30,000,000 ordinary shares. In October 2008, the Group increased the maximum number of incentive awards available under the 2008 Global Share Plan to 70,000,000. In September 2009, the Group adopted the 2009 Share Incentive Plan which allows the Group to offer incentive awards to Participants. Under the 2009 Share Incentive Plan, the Group may issue incentive awards to purchase up to 30,000,000 ordinary shares. In August 2010, the Group increased the maximum number of incentive awards available under the 2009 Share Incentive Plan to 150,000,000. In March 2015, the Group increased the maximum number of incentive awards available under the 2009 Share Incentive Plan to 430,000,000. The 2007 and 2008 Global Share Plans and 2009 Share Incentive Plan (collectively, the “Incentive Award Plans”) contain the same terms and conditions. The incentive awards granted under the Incentive Award Plans typically have a maximum life of ten years and vest in typical ways as listed below:

a.)Vest 50% on the second anniversary of the stated vesting commencement date with the remaining 50% vesting ratably over the following two years;

b.)Vest over a period of ten years in equal yearly installments;

As of December 31, 2022, the Group had granted a total of 245,776,690 options and 277,921,390 nonvested restricted stocks in total, which were subject to adjustment on performance condition.

Share options

No share options were outstanding as of December 31, 2022.

Nonvested restricted stocks

The fair value of nonvested restricted stock with service conditions or performance conditions is based on the fair market value of the underlying ordinary shares on the date of grant.

In 2020, 2021 and 2022, the Group granted nil, nil and 31,683,100 nonvested restricted stocks, respectively to senior officers and managers, each was in ten tranches with performance conditions. Each tranche is accounted for as a separate award with the same grant date, its own service inception date and requisite service period. The share-based compensation cost is recognized for each vesting tranche during the respective service period based on the estimated performance conditions at the service inception date. The Group reassesses the performance condition at each reporting period for true up. For each tranche, 50% vests on the second anniversary of the vesting commencement date with the remaining 50% vesting ratably over the following two years.

The following table summarized the Group’s nonvested restricted stock activities in 2022.


		Weighted Average Grant
	Number of Restricted	Date
	Stocks	Fair Value
		US$
Nonvested restricted stocks outstanding at January 1, 2022	53,696,490	1.20
Granted	39,153,240	2.53
Forfeited	(2,157,320)	1.41
Vested	(9,462,340)	1.40
Adjusted for performance conditions	(4,290,920)	0.63
Nonvested restricted stocks outstanding at December 31, 2022	76,939,150	1.88

For the years ended December 31, 2020, 2021 and 2022, the Group recognized share-based compensation expenses of RMB122, RMB109 and RMB87, respectively, which were classified as follows:


	Years Ended December 31,
	2020	2021	2022
Hotel operating costs	42	39	33
Selling and marketing expenses	4	4	4
General and administrative expenses	76	66	50
Total	122	109	87

As of December 31, 2022, there was RMB823 in unrecognized compensation costs, net of estimated forfeitures, related to unvested restricted stocks, which is expected to be recognized over a weighted-average period of 3.62 years.

EARNINGS (LOSSES) PER SHARE

12 Months Ended

Dec. 31, 2022

EARNINGS (LOSSES) PER SHARE

LOSSES PER SHARE

14.EARNINGS (LOSSES) PER SHARE

The following table sets forth the computation of basic and diluted earnings (losses) per share for the years indicated:


	Years Ended December 31,
	2020	2021	2022
Net loss attributable to ordinary shareholders — basic	(2,192)	(465)	(1,821)
Net loss attributable to ordinary shareholders — diluted	(2,192)	(465)	(1,821)
Weighted average ordinary shares outstanding — basic	2,927,398,409	3,114,124,244	3,111,196,757
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method	—	—	—
Dilutive effect of convertible senior notes	—	—	—
Weighted average ordinary shares outstanding — diluted	2,927,398,409	3,114,124,244	3,111,196,757
Basic earnings (losses) per share	(0.75)	(0.15)	(0.59)
Diluted earnings (losses) per share	(0.75)	(0.15)	(0.59)

For the years ended December 31, 2020, 2021 and 2022, the Group had securities which could potentially dilute basic earnings per share in the future, but which were excluded from the computation of diluted earnings per share as their effects would have been anti-dilutive. Such outstanding securities consist of the following at non-weighted basis:


	As of December 31,
	2020	2021	2022
Outstanding employee options and nonvested restricted stocks	70,954,080	53,696,490	76,939,150
Shares of convertible senior notes	226,827,410	226,827,410	120,601,000
Total	297,781,490	280,523,900	197,540,150

In accordance with ASC Topic 470-20, although legally issued, the loaned ADSs are not considered outstanding, and then excluded from basic and diluted earnings per share unless default of the ADS lending arrangement occurs, at which time the Loaned ADSs would be included in the basic and diluted earnings per share calculation.

The loaned shares under the ADS lending agreement are excluded from both the basic and diluted earnings (losses) per share calculation for the years ended December 31, 2020, 2021 and 2022.

SEGMENT

12 Months Ended

Dec. 31, 2022

SEGMENT

SEGMENT

15. SEGMENT

The Group’s chief operating decision maker (“CODM”) has been identified as the chief executive officer. CODM regularly reviews the operating data, EBITDA, which is defined as earnings before interest income, interest expense, income tax expense (benefit) and depreciation and amortization. Therefore, in January 2020, the Group modified its operating segment structure to be two operating segments which are legacy Huazhu and legacy DH as a result of a change in the way management intends to evaluate results and allocate resources within the Group. In identifying its reportable segments, the Group assesses nature of operating segments and evaluates the operating results of each reporting segments. Both operating segments meet the quantitative thresholds and should be considered as two reportable segments.

The following table provides a summary of the Group’s operating segment results for the years ended December 31, 2021 and 2022. The Group presents segment information after elimination of intercompany transactions.

Years Ended December 31,

2020

2021

2022

Legacy Huazhu

Legacy DH

Total

Legacy Huazhu

Legacy DH

Total

Legacy Huazhu

Legacy DH

Total

Total revenues

8,664

1,532

10,196

11,247

1,538

12,785

10,655

3,207

13,862

EBITDA

736

(1,367)

(631)

1,827

(461)

1,366

282

(118)

164

Interest income

119

Interest expense

533

405

409

Income tax expense (benefit)

(215)

207

Depreciation and amortization

1,362

1,503

1,456

Net (loss) income attributable to H World Group Limited

(2,192)

(465)

(1,821)

The following table presents total assets for operating segments, reconciled to consolidated amounts:

As of December 31,

2021

2022

Legacy Huazhu

Legacy DH

Total

Legacy Huazhu

Legacy DH

Total

Total assets

45,353

17,916

63,269

43,729

17,778

61,507

The following tables represent revenues and property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill by geographical region.

Revenues:


	Years Ended December 31,
	2021	2022
China	11,231	10,637
Germany	1,263	2,458
All others	291	767
Total	12,785	13,862

Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill:


	As of December 31,
	2021	2022
China	33,143	31,684
Germany	13,884	13,501
All others	2,929	3,288
Total	49,956	48,473

Other than China and Germany, there were no countries that individually represented more than 10% of the total revenue and certain long lived assets for the years ended and as of December 31, 2021 and 2022.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

CASH DIVIDEND

12 Months Ended

Dec. 31, 2022

CASH DIVIDEND

Cash Dividend

16.CASH DIVIDEND

The Group did not declare cash dividend to its shareholders in 2020 and 2021.

On March 03, 2022, the Group approved and declared a cash dividend of US$0.021 per ordinary share on its outstanding shares as of the close of trading on March 24, 2022. Such dividend equivalent of RMB416 was fully paid in April 2022.

LEASES

12 Months Ended

Dec. 31, 2022

LEASES

LEASES

17.LEASES

The Group’s leases mainly related to building and the rights to use the land. The total expense related to short-term leases were insignificant for period of 2020, 2021 and 2022, and sublease income of the Group which is recognized in revenues in the consolidated statements of comprehensive income were RMB112, RMB134 and RMB119 for the years ended December 31, 2020, 2021 and 2022, respectively. The Group recognizes a negative lease expense of RMB88 and RMB281 for 2021 and 2022 under the relief of lease concession from COVID-19 as the Group elects using the variable lease expense approach.

A summary of supplemental information related to operating leases in 2021 and 2022 is as follows:


	Years Ended December 31,
	2021		2022
Lease cost:
Operating fixed lease cost	4,074		4,186
Finance lease cost
— Amortization of ROU assets	79		93
— Interest on lease liabilities	96		116
Short term lease cost	0		0
Operating variable lease cost	(25)		(144)
Total lease cost	4,224		4,251

Other information:
Weighted average remaining lease term
Operating leases	13 years		13 years
Finance leases	28 years		28 years
Weighted average discount rate
Operating leases	6.31	%	6.28	%
Finance leases	3.97	%	3.98	%

As of December 31, 2022, the maturities of lease liabilities in accordance with ASC 842 in each of the next five years and thereafter are as follows:


Year Ending December 31,	Total Operating Leases	Total Finance Leases
2023	4,209	142
2024	4,196	146
2025	3,989	146
2026	3,793	148
2027	3,605	151
Thereafter	24,547	3,539

Total minimum lease payments	44,339	4,272

Less: amount representing interest	12,929	1,718

Present value of minimum lease payments	31,410	2,554

As of December 31, 2022, the Group has entered 34 lease contracts that the Group expects to account for as operating or finance leases, the future undiscounted lease payments for these non-cancellable lease contracts are RMB8,387, which is not reflected in the consolidated balance sheets.

As of December 31, 2021, the maturities of lease liabilities in accordance with ASC 842 in each of the next five years and thereafter were as follows:


Year Ending December 31,	Total Operating Leases	Total Finance Leases
2022	4,055	140
2023	4,066	155
2024	4,037	157
2025	3,871	157
2026	3,655	158
Thereafter	26,035	3,824

Total minimum lease payments	45,719	4,591

Less: amount representing interest	14,079	1,866

Present value of minimum lease payments	31,640	2,725

Supplemental cash flow information related to leases for the years ended December 31, 2021 and 2022 are as follows:


	Years Ended December, 31
	2021	2022
Cash paid for amounts included in the measurement of operating lease liabilities	3,770	3,295
Cash paid for amounts included in the measurement of finance lease liabilities	92	106
Non-cash right-of-use assets obtained in exchange for operating lease liabilities	2,565	1,010
Non-cash right-of-use assets obtained in exchange for finance lease liabilities, net of reassessment of finance lease payments	501	(161)
Non-cash right-of-use assets obtained in acquisition for operating lease	1,710	171
Non-cash lease liabilities obtained in acquisition for operating lease	1,692	144

INCOME TAXES

12 Months Ended

Dec. 31, 2022

INCOME TAXES

INCOME TAXES

18.INCOME TAXES

The Group is subject to different income tax rates in various countries and jurisdictions under laws and relevant interpretations depending on the place of formation.

Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%, and the industries and projects that are encouraged and supported by the State may enjoy tax preferential treatment. Jizhu Information and Technology (Shanghai) Co., Ltd. (“Jizhu Shanghai”), which once called Mengguang Information and Technology (Shanghai) Co., Ltd, is a recognized software development entity located in Shanghai of PRC. In November 2018, Jizhu Shanghai was qualified as high and new tech enterprise, resulting Jizhu Shanghai subject to a reduced tax rate of 15% in 2018, 2019 and 2020. In December 2021, Jizhu Shanghai was qualified as high and new tech enterprise, resulting Jizhu Shanghai subject to a reduced tax rate of 15% in 2021, 2022 and 2023. H-World Information and Technology Co., Ltd. (“H-World Information”) is qualified as high and new tech enterprise, resulting H-World Information and Technology Co., Ltd. subject to a reduced tax rate of 15% in 2019, 2020 and 2021. In December 2022, H-World Information was qualified as high and new tech enterprise, resulting H-World Information subject to a reduced tax rate of 15% in 2022, 2023 and 2024. Pursuant to the relevant regulations applicable to small and micro businesses, several PRC subsidiaries enjoy a preferential tax rate of 20% with a discount to taxable income. From January 1, 2019 to December 31, 2020, for taxable income less than RMB1, 75% of the taxable income would be exempted in tax computation, and for taxable income over RMB1 but less than RMB3, the discount would be 50%. From January 1, 2021 to December 31, 2021, for taxable income less than RMB1, 87.5% of the taxable income would be exempted in tax computation, and for taxable income over RMB1 but less than RMB3, the discount would be 50%. From January 1, 2022 to December 31, 2022, for taxable income less than RMB1, 87.5% of the taxable income would be exempted in tax computation, and for taxable income over RMB1 but less than RMB3, the discount would be 75%. From January 1, 2023 to December 31, 2024, for taxable income less than RMB3, 75% of the taxable income would be exempted in tax computation. Entities qualified as small and micro businesses shall be engaged in industries not restricted or prohibited by the state, which simultaneously meet the following three conditions: annual taxable income does not exceed RMB3, the number of employees does not exceed 300, and the total assets does not exceed RMB50.

Under the current laws of Germany, companies are subject to income tax at a standard rate of 15% (15.825% including solidarity surcharge), plus municipal trade tax of 7%-21%. The income tax rates in other countries and jurisdictions are of little effect on the financial statements. In other major jurisdictions, including Austria, Netherlands and Belgium, the Group is subject to a range from 9% to 25% of the statutory income tax rate, respectively.

Income (loss) before income taxes consists of:


	Years Ended December 31,
	2020	2021	2022
PRC including Hong Kong and Taiwan	(392)	617	(483)
Germany	(1,606)	(632)	(410)
Other	(281)	(393)	(713)
Total	(2,279)	(408)	(1,606)

Income tax expense (benefit) is comprised of the following:


	Years Ended December 31,
	2020	2021	2022
Current Tax	338	555	475
Deferred Tax	(553)	(543)	(268)
Total	(215)	12	207

A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows:


	Years Ended December 31,
	2020		2021		2022
PRC statutory tax rate	25	%	25	%	25	%
Tax effect of non-deductible expenses and non-taxable income in determining taxable profit	(6)	%	(6)	%	(6)	%
Effect of different tax rate of group entities operating in other jurisdictions	(2)	%	(6)	%	(10)	%
Effect of change in valuation allowance	(10)	%	(24)	%	(15)	%
Effect of tax holiday	1	%	9	%	1	%
Effect of cash dividends	0	%	(8)	%	(6)	%
Effect of excess tax benefit of share-based rewards	1	%	7	%	(2)	%
Effective tax rate	9	%	(3)	%	(13)	%

The aggregate amount and per share effect of the tax holidays are as follows:


	Years Ended December 31,
	2020	2021	2022
Aggregate amount	31	37	22
Per share effect—basic	0.01	0.01	0.01
Per share effect—diluted	0.01	0.01	0.01

The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2021 and 2022 are as follows:


	As of December 31,
	2021	2022
Deferred tax assets:
Net loss carryforward	1,271	1,678
Deferred revenue	326	349
Long-term assets	238	303
Bad debt provision	40	59
Accrued payroll	45	41
Other accrued expenses	3	(9)
Share-based compensation	29	31
Others	150	150
Valuation allowance	(466)	(731)
Total deferred tax assets, net of valuation allowance	1,636	1,871
Deferred tax liabilities:
Fair value adjustment for Building, land use rights and identified intangible assets due to acquisition	1,596	1,596
Others	31	40
Total deferred tax liabilities	1,627	1,636
Net deferred tax assets	9	235
Analysis as:
Deferred tax assets	862	1,093
Deferred tax liabilities	853	858
Net deferred tax assets	9	235

Deferred tax assets and liabilities have been offset where the Group has a legally enforceable right to do so, and intends to settle on a net basis.

The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carryforward periods, the Group’s experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more likely than not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carryforward periods provided for in the tax law. Movement of the valuation allowance is as follows:


	Years Ended December 31,
	2020	2021	2022
Balance at the beginning of the year	(152)	(369)	(466)
Provided	(249)	(151)	(338)
Reversed	32	37	41
Written off	—	17	32
Balance at the end of the year	(369)	(466)	(731)

As of December 31, 2022, the Group’s PRC subsidiaries had tax loss carryforwards of RMB4,901, which will expire between 2023 and 2027 if not used. The Germany Companies had tax loss carry forwards of RMB1,555, which can be offset in the future without anytime restriction.

The Group determines whether or not a tax position is “more-likely-than-not” of being sustained upon audit based solely on the technical merits of the position. At December 31, 2021 and 2022, the Group had recorded liabilities for uncertain tax benefit of approximately RMB60 and RMB65 mainly associated with the interests on intercompany loans and other permanent differences related to Corporate Income and Trade Taxes, respectively. No interest or penalty expense was recorded for the years ended December 31, 2020, 2021 and 2022. In 2023, the Group will decrease its income tax liability by RMB 0.1 for unrecognized tax benefits previously recorded in 2013 as the statute of limitations for the tax liabilities of certain tax positions will expire under the PRC Tax Administration and Collection Law.

In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. If there is a favorable tax treaty between mainland China and the jurisdiction of the foreign holding company, the income tax rate may be reduced. For example, holding companies in Hong Kong that are also tax residents in Hong Kong are eligible for a 5% withholding tax on dividends under the Tax Memorandum between China and the Hong Kong Special Administrative Region if the holding company is the beneficial owner of the dividends and holds more than 25% of the PRC company. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting basis over tax basis in a domestic subsidiary. In 2018, the Group revised its dividend policy that it may make a moderate dividend distribution every year with the range of 0.5% to 2.0% of its market capitalization from current year net income starting from 2018. The Group’s board of directors has complete discretion in deciding whether to distribute dividends and the dividend amounts within the approved range. The Group was restricted from distributing cash dividends until June 30, 2021 pursuant to the waiver from certain financial covenants that the Group obtained on April 17, 2020 for the syndicated bank loans and therefore did not accrue PRC dividend withholding tax in 2020. In March 2022, the Group announced that its board of directors declared a cash dividend of approximately US$68 million. To facilitate this dividend distribution and meet the oversea treasury demand, certain amount of dividends from the Group’s PRC subsidiaries to its oversea subsidiaries was planned. PRC dividend withholding tax of RMB32 was accrued as of December 31, 2021. PRC dividend withholding tax of RMB100 was accrued as of December 31, 2022. Other than these dividends distributions, the Group intends to indefinitely reinvest the remaining undistributed earnings of PRC subsidiaries, and therefore, no additional provision for PRC dividend withholding tax was accrued.

According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding RMB0.1 is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The Group’s PRC subsidiaries are therefore subject to examination by the PRC tax authorities from 2018 through 2022 on non-transfer pricing matters, and from 2013 through 2022 on transfer pricing matters. Generally, the statute of limitations for the assessment and collection of taxes is four years. The four-year period usually starts at the end of the year in which the tax return is filed. If no tax return is filed, the statute of limitations starts with the end of the third year following the year in which the tax arose. Extended limitations of 5 and 10 years will apply in the event of tax evasion or tax fraud. The statute of limitations may be suspended for a variety of reasons, for example, appeal of assessment by taxpayers, announcement or start of a tax audit, obvious mistake in tax assessment, etc.

According to the German General Fiscal Code, the statute of limitations for the assessment and collection of taxes is four years. The four-year period usually starts at the end of the year in which the tax return is filed. If no tax return is filed, the statute of limitations starts with the end of the third year following the year in which the tax arose. Extended limitations of 5 and 10 years will apply in the event of tax evasion or tax fraud. The statute of limitations may be suspended for a variety of reasons, for example, appeal of assessment by taxpayers, announcement or start of a tax audit, obvious mistake in tax assessment, etc.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
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-Publisher FASB
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+ Details

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2022

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

19.EMPLOYEE BENEFIT PLANS

a. Defined Benefit Plans

The Group maintains a German pension plan after the completion of the acquisition of DH.

As of December 31, 2021 and 2022, accumulated benefit obligation net of plan assets recognized in the consolidated balance sheets consist of the following:


	As of December 31,
	2021	2022
Salary and welfare payables	8	10
Retirement benefit obligation	144	110
Liability in the balance sheet	152	120

b. Defined Contribution Plans

Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on a certain percentage of the employees’ salaries. The total contribution for such employee benefits were RMB283, RMB544 and RMB645 for the years ended December 31, 2020, 2021 and 2022, respectively. The Group has no ongoing obligation to its employees subsequent to its contribution to the PRC plan. In an attempt to mitigate the adverse financial effects of the COVID-19 pandemic on employers, the Chinese Government had announced temporary reductions in, and exemptions from, the payment of contributions in 2020. The supportive policies have been gradually reduced since 2021.

Furthermore, the Group pays contribution to governmental and private pension insurance organizations based on legal regulations in some countries out of China. The contributions are recognized as expense and amount RMB129, RMB55 and RMB74 for the years ended December 31, 2020, 2021 and 2022.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

RESTRICTED NET ASSETS

12 Months Ended

Dec. 31, 2022

RESTRICTED NET ASSETS

RESTRICTED NET ASSETS

20.RESTRICTED NET ASSETS

Pursuant to laws applicable to entities incorporated in the PRC, our subsidiaries in the PRC must make appropriations from after-tax profit to non-distributable reserve funds. In particular, subject to certain cumulative limits, the statutory reserve fund requires an annual appropriation of 10% of after-tax profit (as determined under accounting principles generally accepted in the PRC at each year-end) until the accumulative amount of such reserve fund reaches 50% of a PRC subsidiary’s registered capital. These reserve funds can only be used for such specific purposes as provided in PRC laws, and are not distributable as cash dividends, amounted to RMB771, RMB826 and RMB904 as of December 31, 2020, 2021 and 2022, respectively. In addition, due to restrictions on the distribution of share capital from the Group’s PRC subsidiaries, the PRC subsidiaries share capital of RMB2,831 at December 31, 2022 is considered restricted. As a result of these PRC laws and regulations, as of December 31, 2022, approximately RMB3,735 is not available for distribution to the Group by its PRC subsidiaries in the form of dividends, loans or advances.

RELATED PARTY TRANSACTIONS AND BALANCES

12 Months Ended

Dec. 31, 2022

RELATED PARTY TRANSACTIONS AND BALANCES

21.RELATED PARTY TRANSACTIONS AND BALANCES

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities.

The following entities are considered to be related parties to the Group. The related parties mainly act as service providers and service recipients to the Group. The Group is not obligated to provide any type of financial support to these related parties.


Related Party	Nature of the Party	Relationship with the Group
Trip.com Group Limited (“Trip.com”)	Online travel services provider	Mr. Qi Ji is a director
Sheen Star Group Limited (“Sheen Star”)	Investment holding company	Equity method investee of the Group, controlled by Mr. Qi Ji
Accor Hotels (“Accor”)	Hotel Group	Shareholder of the Group up to December 2021
China Cjia Group Limited (“Cjia Group”)	Apartment Management Group	Equity method investee of the Group
Shanghai Zhuchuang Enterprise Management Co., Ltd. (“Zhuchuang”)	Staged office space company	Equity method investee of the Group
China Hospitality JV, Ltd. (“China Hospitality JV”)	Property management company	Equity method investee of the Group
Shanghai Lianquan Hotel Management Co., Ltd. (“Lianquan”)	Hotel management company	Equity method investee of the Group
Suzhou Huali Jinshi Construction Decoration Co., Ltd. (“Huali Jinshi”)	Building decoration company	Equity method investee of the Group up to August 2022
Shenzhen Hitone Investment Fund Partnership (LLP) ( “Hitone”)	Fund	Equity method investee of the Group

(a) Related party balances

Amounts due from related parties consist of the following:


	As of December 31,
	2021	2022
Trip.com	17	73
Lianquan	49	46
Sheen Star	33	29
Cjia Group	29	28
Zhuchuang	27	24
Others	12	21
Allowance for expected credit losses	(17)	(37)
Total	150	184

Amounts due to related parties consist of the following:


	As of December 31,
	2021	2022
Trip.com	44	38
Cjia Group	101	26
Huali Jinshi	47	—
Others	5	7
Total	197	71

(b) Related party transactions

During the years ended December 31, 2020, 2021 and 2022, significant related party transactions were as follows:


	Years Ended December 31,
	2020	2021	2022
Commission expenses to Trip.com	78	99	55
Lease expenses to Trip.com	18	19	19
Lease expenses to Cjia Group	—	12	31
Service fee to Huali Jinshi	41	42	—
Service fee to Cjia Group	17	—	—
Brand use fee, reservation fee and other related service fee to Accor	17	22	—
Goods sold and service provided to Cjia Group	18	11	4
Early termination compensation of sublease to Cjia Group	8	—	—
Loan payment to Hitone	—	5	—
Service fee from Trip.com	66	62	93
Service fee from Accor	3	3	—
Service fee from Sheen Star	4	5	4
Sublease income from Lianquan	12	10	12
Sublease income from Cjia Group	9	6	5
Early termination compensation of franchise agreement from China Hospitality JV	26	—	—
Purchase of property and equipment from Cjia Group	11	—	—
Business acquisition of CitiGO from Cjia Group	—	783	—
Business acquisition of one individual company from Cjia Group	—	51	—

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2022

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

22.	COMMITMENTS AND CONTINGENCIES

(a) Commitments

As of December 31, 2022, the Group’s commitments related to leasehold improvements and installation of equipment for hotel operations was RMB294, which is expected to be incurred within one to two year.

(b) Contingencies

The Group is subject to periodic legal or administrative proceedings in the ordinary course of the Group’s business, including lease contract terminations and disputes, and management agreement disputes. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material adverse effect on the financial statements. As of December 31, 2022, there are no accrued contingent liabilities from such proceedings.

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2022

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

23.	SUBSEQUENT EVENTS

In January 2023, the Group successfully completed a follow-on public offering of 7,118,500 ADSs with proceeds of approximately US$300 million (equivalent of RMB2,012).

In March 2023, the Group disposed all of its holdings in Accor’s ordinary share for net proceeds to approximately EUR300 million (equivalent of RMB2,185).

In April 2023, the Group repaid the outstanding principal and interests of EUR220 million term loan (equivalent of RMB1,608) and EUR70 million revolving credit facility (equivalent of RMB525).

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY

12 Months Ended

Dec. 31, 2022

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY

ADDITIONAL FINANCIAL INFORMATION — FINANCIAL STATEMENTS SCHEDULE I

H WORLD GROUP LIMITED

FINANCIAL INFORMATION FOR PARENT COMPANY

BALANCE SHEETS

(Renminbi in millions, except share and per share data, unless otherwise stated)


	As of December 31,
	2021	2022	2022
			US$’ in millions
			(Note 2)
Assets
Current assets:
Cash and cash equivalents	581	1,204	175
Short-term investments	81	87	13
Other current assets	1	8	1
Total current assets	663	1,299	189
Investment in and amount due from subsidiaries	16,928	12,390	1,796
Total assets	17,591	13,689	1,985
Liabilities and equity
Current liabilities:
Short-term debt	3,028	453	66
Amount due to subsidiaries	257	858	124
Accrued expenses and other current liabilities	213	181	26
Total current liabilities	3,498	1,492	216
Long-term debt	3,158	3,463	502
Other non-current liabilities	—	5	1
Total liabilities	6,656	4,960	719
Equity:
Ordinary shares (US$0.00001 par value per share; 80,000,000,000 shares authorized; 3,255,971,250 and 3,265,433,590 shares issued as of December 31, 2021 and 2022, and 3,120,746,090 and 3,112,413,730 shares outstanding as of December 31, 2021 and 2022, respectively)	0	0	0
Treasury shares (30,974,040 and 153,019,860 shares as of December 31, 2021 and 2022, respectively)	(107)	(441)	(64)
Additional paid-in capital	9,964	10,138	1,470
Retained earnings	1,037	(1,200)	(174)
Accumulated other comprehensive income	41	232	34
Total equity	10,935	8,729	1,266
Total liabilities and equity	17,591	13,689	1,985

ADDITIONAL FINANCIAL INFORMATION — FINANCIAL STATEMENTS SCHEDULE I

H WORLD GROUP LIMITED

FINANCIAL INFORMATION FOR PARENT COMPANY

STATEMENTS OF COMPREHENSIVE INCOME

(Renminbi in millions, unless otherwise stated)


	Years Ended December 31,
	2020	2021	2022	2022
				US$’ in millions
				(Note 2)
Operating costs and expenses:
General and administrative expenses	155	110	93	14
Total operating costs and expenses	155	110	93	14
Loss from operations	(155)	(110)	(93)	(14)
Interest income	2	8	15	2
Interest expense	154	128	130	19
Foreign exchange gain (loss)	(8)	(3)	(223)	(32)
Other income, net	32	15	6	1
Loss from fair value changes of equity securities, net	(10)	(2)	(1)	(0)
Income (loss) in investment in subsidiaries	(1,899)	(245)	(1,395)	(202)
Net income (loss) attributable to H World Group Limited	(2,192)	(465)	(1,821)	(264)

Other comprehensive (loss) income, net of tax	176	(86)	191	27
Comprehensive income (loss)	(2,016)	(551)	(1,630)	(237)

ADDITIONAL FINANCIAL INFORMATION — FINANCIAL STATEMENTS SCHEDULE I

H WORLD GROUP LIMITED

FINANCIAL INFORMATION FOR PARENT COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(Renminbi in millions, unless otherwise stated)


	Years Ended December 31,
	2020		2021	2022	2022
					US$’ in millions
					(Note 2)
Net cash (used in) provided by operating activities	49		9	(136)	(19)
Investing activities:
Loans to subsidiaries	(6,267)		(1,050)	(750)	(109)
Repayment of loans by subsidiaries	—		—	4,165	604
Purchase of short-term investments	—		(34)	—	—
Net cash (used in) provided by investing activities	(6,267)		(1,084)	3,415	495
Financing activities:
Proceeds from issuance of ordinary shares in Hong Kong public offering	6,018		—	—	—
Proceeds from termination of Capped Call	—		—	86	12
Payment of ordinary share issuance costs	(10)		(15)	(0)	(0)
Net settlement on shares repurchased for withholding taxes related to share-based awards	—		50	—	—
Payment of share repurchase	—		(0)	(334)	(48)
Loans from subsidiaries	—		—	798	116
Net proceeds from issuance of ordinary shares upon exercise of option	1		1	—	—
Proceeds from short-term bank borrowings	—		—	453	66
Repayment of short-term bank borrowings	(282)	A	—	—	—
Proceeds from issuance of convertible senior notes	3,499		—	—	—
Repayment of convertible senior notes	(0)		(0)	(3,406)	(494)
Debt financing costs paid	(9)		—	—	—
Dividends paid	(678)		—	(416)	(60)
Net cash provided by (used in) financing activities	8,539		36	(2,819)	(408)
Effect of exchange rate changes on cash and cash equivalents	(790)		(272)	163	24
Net (decrease) increase in cash and cash equivalents	1,531		(1,311)	623	91
Cash, cash equivalents at the beginning of the year	361		1,892	581	84
Cash, cash equivalents at the end of the year	1,892		581	1,204	175

A—In 2020, Except for repayment of short-term bank borrowings by cash, short-term bank borrowings of RMB 4,628 was settled by investment in subsidiaries.

The accompanying notes are an integral part of these consolidated financial statements

ADDITIONAL FINANCIAL INFORMATION — FINANCIAL STATEMENTS SCHEDULE I

H WORLD GROUP LIMITED

FINANCIAL INFORMATION FOR PARENT COMPANY

Note to Schedule I

Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04-(c) of Regulation S-X, which require condensed financial information as to the financial position, change in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

The condensed financial information has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. Such investments in subsidiaries are presented on the balance sheets as investment in subsidiaries and the profit of the subsidiaries is presented as income in investment in subsidiaries.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying consolidated financial statements.

As of December 31, 2022, there are no material contingencies, mandatory dividend, and significant provision of long-term obligation or guarantee of the Company, except for those which have separately disclosed in the consolidated financial statements.

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2022

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

ADDITION INFORMATION — FINANCIAL STATEMENTS SCHEDULE II

H WORLD GROUP LIMITED

This financial information has been prepared in conformity with accounting principles generally accepted in the United States.

VALUATION AND QUALIFYING ACCOUNTS


	Balance at
	Beginning of	Charge to Costs and	Charge to Other	Charge Taken		Balance at
	Year	Expenses	Accounts	Against Allowance	Write off	End of Year

	(Renminbi in millions)
Allowance for accounts receivable, loan receivables and other financial assets:
2020	22	65	7	—	(7)	87
2021	87	105	—	—	(64)	128
2022	128	82	—	—	(7)	203
Valuation allowance for deferred tax assets

2020	152	249	—	(32)	—	369
2021	369	151	—	(37)	(17)	466
2022	466	338	—	(41)	(32)	731

******

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2022

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Basis of consolidation

Variable Interest Entities

Use of estimates

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased.

Restricted cash

Restricted cash mainly represents deposits used as security against borrowings, deposits restricted due to contract disputes or lawsuit and cash restricted for special purposes.

Investments

Equity investments without readily determinable fair values are measured at cost, less impairment, plus or minus observable price changes.

Allowances for Losses on Certain Financial Assets

Property and equipment, net


Leasehold improvements		Shorter of the lease term or their estimated useful lives
Buildings		20-40 years
Furniture, fixtures and equipment		1-20 years
Motor vehicles		5 years

Intangible assets, net

Intangible assets consist primarily of brand name, master brand agreement, non-compete agreements, franchise or manachise agreements and purchased software.


Franchise or manachise agreements		Remaining contract terms from 10 to 20 years
Non-compete agreements		2 - 10 years based on specified non-compete period
Purchased software		3 - 10 years based on the estimated usage period
Other intangible assets including trademark, licenses and other rights		2 - 15 years based on the contractual term, the length of license agreements and the effective terms of other legal rights

Land use rights

Impairment of long-lived assets

Goodwill

Revenue recognition

Leased and owned hotel revenues

Manachised and franchised hotel revenues

Other Revenues

Loyalty Program

Advertising and promotional expenses

Leases

Income taxes

Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations.

Foreign currency translation

The financial records of the Group’s subsidiaries are maintained in local currencies, which are the functional currencies.

Fair value

The established fair value hierarchy by U.S. GAAP has three levels based on the reliability of the inputs used to measure fair value:

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The following table presents our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.


As of December 31, 2021	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active	Significant Other	Significant
	Markets for Identical	Observable Inputs	Unobservable
Description	Assets (Level 1)	(Level 2)	Inputs (Level 3)
Equity securities with readily determinable fair value	2,589	—	—
Available-for-sale debt securities	—	220	—
Employee benefit plan assets	5	—	—


As of December 31, 2022	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active	Significant Other	Significant
	Markets for Identical	Observable Inputs	Unobservable
Description	Assets (Level 1)	(Level 2)	Inputs (Level 3)
Equity securities with readily determinable fair value	1,788	—	—
Available-for-sale debt securities	—	—	296
Employee benefit plan assets	13	—	—


As of December 31, 2021		Fair Value Measurements at Reporting Date Using
		Significant Unobservable	Total Loss for
Description	Fair Value	Inputs (Level 3)	the Year
Property and equipment	33	33	24
Operating lease right-of-use assets	88	88	48
Intangible assets	2,556	2,556	245
Long-term investment	—	—	63


As of December 31, 2022		Fair Value Measurements at Reporting Date Using
		Significant Unobservable	Total Loss for
Description	Fair Value	Inputs (Level 3)	the Year
Property and equipment	38	38	218
Operating lease right-of-use assets	336	336	76
Intangible assets	388	388	170
Long-term investment	11	11	27

Share-based compensation

Earnings (losses) per share

Recently Issued Accounting Pronouncements

Adopted Accounting Standards

Accounting Standards Not Yet Adopted

Translation into United States Dollars

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Schedule of expected useful lives of property and equipment


Leasehold improvements		Shorter of the lease term or their estimated useful lives
Buildings		20-40 years
Furniture, fixtures and equipment		1-20 years
Motor vehicles		5 years

Schedule of estimated useful lives of intangible assets


Franchise or manachise agreements		Remaining contract terms from 10 to 20 years
Non-compete agreements		2 - 10 years based on specified non-compete period
Purchased software		3 - 10 years based on the estimated usage period
Other intangible assets including trademark, licenses and other rights		2 - 15 years based on the contractual term, the length of license agreements and the effective terms of other legal rights

Schedule of information about inputs into the fair value measurements of the assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition


As of December 31, 2021	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active	Significant Other	Significant
	Markets for Identical	Observable Inputs	Unobservable
Description	Assets (Level 1)	(Level 2)	Inputs (Level 3)
Equity securities with readily determinable fair value	2,589	—	—
Available-for-sale debt securities	—	220	—
Employee benefit plan assets	5	—	—


As of December 31, 2022	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active	Significant Other	Significant
	Markets for Identical	Observable Inputs	Unobservable
Description	Assets (Level 1)	(Level 2)	Inputs (Level 3)
Equity securities with readily determinable fair value	1,788	—	—
Available-for-sale debt securities	—	—	296
Employee benefit plan assets	13	—	—

Schedule of assets measured at fair value on a non-recurring basis


As of December 31, 2021		Fair Value Measurements at Reporting Date Using
		Significant Unobservable	Total Loss for
Description	Fair Value	Inputs (Level 3)	the Year
Property and equipment	33	33	24
Operating lease right-of-use assets	88	88	48
Intangible assets	2,556	2,556	245
Long-term investment	—	—	63


As of December 31, 2022		Fair Value Measurements at Reporting Date Using
		Significant Unobservable	Total Loss for
Description	Fair Value	Inputs (Level 3)	the Year
Property and equipment	38	38	218
Operating lease right-of-use assets	336	336	76
Intangible assets	388	388	170
Long-term investment	11	11	27

Summary of total assets for operating segments, reconciled to consolidated amounts

As of December 31,

2021

2022

Legacy Huazhu

Legacy DH

Total

Legacy Huazhu

Legacy DH

Total

Total assets

45,353

17,916

63,269

43,729

17,778

61,507

Schedule of revenues and property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill by geographical region

The following tables represent revenues and property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill by geographical region.

Revenues:


	Years Ended December 31,
	2021	2022
China	11,231	10,637
Germany	1,263	2,458
All others	291	767
Total	12,785	13,862

Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill:


	As of December 31,
	2021	2022
China	33,143	31,684
Germany	13,884	13,501
All others	2,929	3,288
Total	49,956	48,473

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2022

CitiGo Hotels

Acquisitions

Schedule of allocation of the purchase price as of the date of acquisition

The allocation of the purchase price as of the date of acquisition is summarized as follows:


		Amortization Period
Current assets	34
Property and equipment	296	5-12 years
Operating lease right-of-use assets	1,119	Remaining lease terms
Other non-current assets	33
Franchise agreement	61	Remaining contract terms
Brand names	90	Indefinite-life
Goodwill	372
Operating lease liabilities, current	(153)
Other current liabilities	(23)
Operating lease liabilities, non-current	(987)
Other noncurrent liabilities	(5)
Deferred tax liabilities	(33)
Noncontrolling interest	(21)
Total	783

Deutsche Hospitality

Acquisitions

Schedule of allocation of the purchase price as of the date of acquisition

The allocation of the purchase price as of the date of acquisition is summarized as follows:


		Amortization Period
Current assets	785
Property and equipment, net	586	2-25 years
Operating lease right-of-use assets	8,616	Remaining lease terms
Financing lease right-of-use assets	1,794	Shorter of estimated useful lives of the assets and the lease terms
Franchise or manachise agreements	270	Remaining contract terms
Brand names	3,873	Indefinite-life
Non-compete agreement	10	2 years
Goodwill	2,694
Deferred tax assets	170
Other non-current assets	280
Operating lease liabilities, current	(296)
Finance lease liabilities, current	(21)
Other current liabilities	(784)
Operating lease liabilities, non-current	(8,553)
Finance lease liabilities, non-current	(2,166)
Other noncurrent liabilities	(330)
Deferred tax liabilities	(1,304)
Total	5,624

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 2022

REVENUE

Schedule of disaggregated revenues

The following tables present the Group’s revenues disaggregated by the nature of the product or service:


	Years Ended December 31,
	2020	2021	2022
Room revenues	5,735	7,024	7,571
Food and beverage revenues	608	694	1,049
Others	565	400	528
Leased and owned hotels revenue	6,908	8,118	9,148
Initial one-time license/franchise fee	110	109	106
On-going management and service/royalty fees	1,057	1,479	1,375
Central reservation system usage fees, other system maintenance and support fees	908	1,399	1,262
Reimbursements for hotel manager fees	657	897	1,103
Other fees	404	520	559
Manachised and franchised hotels revenue	3,136	4,404	4,405
Other revenues	152	263	309
Total revenues	10,196	12,785	13,862

Schedule of contract balances

The Group’s contract assets are insignificant at December 31, 2021 and 2022.


	As of December 31,
	2021	2022
Current contract liabilities	1,366	1,308
Long-term contract liabilities	785	828
Total contract liabilities	2,151	2,136

The contract liabilities balances above are classified as deferred revenue on the consolidated balance sheet, as of December 31, 2021 and 2022.

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2022

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment, net

Property and equipment, net consist of the following:


	As of December 31,
	2021	2022
Cost:
Buildings	305	843
Leasehold improvements	10,467	10,952
Furniture, fixtures and equipment	2,348	2,520
Motor vehicles	3	3
	13,123	14,318
Less: Accumulated depreciation	6,845	7,727
	6,278	6,591
Construction in progress	778	193
Property and equipment, net	7,056	6,784

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2022

INTANGIBLE ASSETS, NET

Schedule of intangible assets with indefinite life


	As of December 31,
	2021	2022
Intangible assets with indefinite lives:
Brand names	5,010	5,111
Master brand agreement	192	192
Intangible assets with finite lives:
Franchise or manachise agreements	366	368
Purchased software	142	128
Other intangible assets	81	77
Total	5,791	5,876
Less: Accumulated amortization	163	178
Less: Accumulated impairment loss(Note2)	243	420
Total	5,385	5,278

Schedule of annual estimated amortization expense for intangible assets and unfavorable lease excluding brand name and master brand agreement


		Amortization for Intangible Assets
2023		36
2024		33
2025		31
2026		29
2027		28
Thereafter		151
Total		308

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2022

INVESTMENTS.

Schedule of investments


	As of December 31,
	2021	2022
Short-term investments
Equity securities with readily determinable fair values:
Accor	2,508	1,701
Other marketable securities	81	87
Total	2,589	1,788

Long-term investments
Equity securities without readily determinable fair values:
Cjia Group-preferred shares	168	138
OYO	54	54
Other equity securities without readily determinable fair values	71	65
Subtotal	293	257
Equity-method investments:
AAPC LUB	525	494
Hotel related funds	488	443
China Hospitality JV	99	67
Zleep	68	70
Commerz Real Institute	85	80
Other investments	187	238
Subtotal	1,452	1,392
Available-for-sale debt securities:
Cjia Group-convertible notes	220	296
Total	1,965	1,945

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2022

GOODWILL.

Schedule of changes in the carrying amount of goodwill


	Legacy Huazhu	Legacy DH	Total
Balance at January 1, 2021
Goodwill	2,664	2,768	5,432
Accumulated impairment loss	(4)	(440)	(444)
	2,660	2,328	4,988
Goodwill acquired during the year (Note 3)	372	6	378
Net foreign exchange-goodwill	—	(278)	(278)
Net foreign exchange-impairment loss	—	44	44
Balance at December 31, 2021
Goodwill	3,036	2,496	5,532
Accumulated impairment loss	(4)	(396)	(400)
	3,032	2,100	5,132
Goodwill acquired during the year	—	4	4
Net foreign exchange-goodwill	—	70	70
Net foreign exchange-impairment loss	—	(11)	(11)
Balance at December 31, 2022
Goodwill	3,036	2,570	5,606
Accumulated impairment loss	(4)	(407)	(411)
	3,032	2,163	5,195

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

DEBT (Tables)

12 Months Ended

Dec. 31, 2022

DEBT

Schedule of short-term and long-term debt

The short-term and long-term debt as of December 31, 2021 and 2022 were as follows:


	As of December 31,
	2021	2022
Short-term debt:
Long-term bank borrowings, current portion	2,464	208
Short-term bank borrowings	692	3,035
Convertible senior notes, current portion	3,029	—
FF&E liability, current portion	47	45
Total	6,232	3,288

Long-term debt:
Long-term bank borrowings, non-current portion	211	2,929
Convertible senior notes, non-current portion	3,158	3,463
FF&E liability, non-current portion	180	228
Others	16	15
Total	3,565	6,635

Schedule of contractual maturities of the group's long-term debt

The contractual maturities of the Group’s debt as of December 31, 2022 were as follows:


Year Ending December 31,		Principal Amounts
2023		3,287
2024		3,755
2025		2,735
2026		34
2027		28
Thereafter		100
Total		9,939

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	As of December 31,
	2021	2022
Payable to franchisees	710	652
Other payables	535	850
Accrued utilities and other accrued expenses	209	332
Liabilities related to customer loyalty program	135	166
Value-added tax, other tax and surcharge payables	132	234
Advance from noncontrolling interest holders	117	103
Total	1,838	2,337

HOTEL OPERATING COSTS (Tables)

12 Months Ended

Dec. 31, 2022

HOTEL OPERATING COSTS.

Schedule of hotel operating costs


	Years Ended December 31,
	2020	2021	2022
Rents	3,485	3,900	3,927
Utilities	478	507	603
Personnel costs	2,501	3,022	3,683
Depreciation and amortization	1,316	1,413	1,414
Consumable, food and beverage	885	969	1,026
Others	1,064	1,471	1,607
Total	9,729	11,282	12,260

PRE-OPENING EXPENSES (Tables)

12 Months Ended

Dec. 31, 2022

PRE-OPENING EXPENSES

Schedule of pre-opening expenses incurred during the hotel pre-opening period


	Years Ended December 31,
	2020	2021	2022
Rents	251	68	84
Personnel costs	15	5	5
Others	22	8	6
Total	288	81	95

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2022

SHARE-BASED COMPENSATION

Summary of the Group's nonvested restricted stock activity


		Weighted Average Grant
	Number of Restricted	Date
	Stocks	Fair Value
		US$
Nonvested restricted stocks outstanding at January 1, 2022	53,696,490	1.20
Granted	39,153,240	2.53
Forfeited	(2,157,320)	1.41
Vested	(9,462,340)	1.40
Adjusted for performance conditions	(4,290,920)	0.63
Nonvested restricted stocks outstanding at December 31, 2022	76,939,150	1.88

Schedule of share-based compensation expense recognized


	Years Ended December 31,
	2020	2021	2022
Hotel operating costs	42	39	33
Selling and marketing expenses	4	4	4
General and administrative expenses	76	66	50
Total	122	109	87

EARNINGS (LOSSES) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2022

EARNINGS (LOSSES) PER SHARE

Schedule of computation of basic and diluted losses per share


	Years Ended December 31,
	2020	2021	2022
Net loss attributable to ordinary shareholders — basic	(2,192)	(465)	(1,821)
Net loss attributable to ordinary shareholders — diluted	(2,192)	(465)	(1,821)
Weighted average ordinary shares outstanding — basic	2,927,398,409	3,114,124,244	3,111,196,757
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method	—	—	—
Dilutive effect of convertible senior notes	—	—	—
Weighted average ordinary shares outstanding — diluted	2,927,398,409	3,114,124,244	3,111,196,757
Basic earnings (losses) per share	(0.75)	(0.15)	(0.59)
Diluted earnings (losses) per share	(0.75)	(0.15)	(0.59)

Schedule of outstanding securities excluded from the computation of diluted earnings per share


	As of December 31,
	2020	2021	2022
Outstanding employee options and nonvested restricted stocks	70,954,080	53,696,490	76,939,150
Shares of convertible senior notes	226,827,410	226,827,410	120,601,000
Total	297,781,490	280,523,900	197,540,150

SEGMENT (Tables)

12 Months Ended

Dec. 31, 2022

SEGMENT

Summary of segment information after elimination of intercompany transactions

Years Ended December 31,

2020

2021

2022

Legacy Huazhu

Legacy DH

Total

Legacy Huazhu

Legacy DH

Total

Legacy Huazhu

Legacy DH

Total

Total revenues

8,664

1,532

10,196

11,247

1,538

12,785

10,655

3,207

13,862

EBITDA

736

(1,367)

(631)

1,827

(461)

1,366

282

(118)

164

Interest income

119

Interest expense

533

405

409

Income tax expense (benefit)

(215)

207

Depreciation and amortization

1,362

1,503

1,456

Net (loss) income attributable to H World Group Limited

(2,192)

(465)

(1,821)

Schedule of total assets for operating segments, reconciled to consolidated amounts

As of December 31,

2021

2022

Legacy Huazhu

Legacy DH

Total

Legacy Huazhu

Legacy DH

Total

Total assets

45,353

17,916

63,269

43,729

17,778

61,507

Schedule of revenues and property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill by geographical region

The following tables represent revenues and property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill by geographical region.

Revenues:


	Years Ended December 31,
	2021	2022
China	11,231	10,637
Germany	1,263	2,458
All others	291	767
Total	12,785	13,862

Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill:


	As of December 31,
	2021	2022
China	33,143	31,684
Germany	13,884	13,501
All others	2,929	3,288
Total	49,956	48,473

LEASES (Tables)

12 Months Ended

Dec. 31, 2022

LEASES

Schedule of supplemental information related to operating leases


	Years Ended December 31,
	2021		2022
Lease cost:
Operating fixed lease cost	4,074		4,186
Finance lease cost
— Amortization of ROU assets	79		93
— Interest on lease liabilities	96		116
Short term lease cost	0		0
Operating variable lease cost	(25)		(144)
Total lease cost	4,224		4,251

Other information:
Weighted average remaining lease term
Operating leases	13 years		13 years
Finance leases	28 years		28 years
Weighted average discount rate
Operating leases	6.31	%	6.28	%
Finance leases	3.97	%	3.98	%

Schedule of maturities of operating and finance lease liabilities

As of December 31, 2022, the maturities of lease liabilities in accordance with ASC 842 in each of the next five years and thereafter are as follows:


Year Ending December 31,	Total Operating Leases	Total Finance Leases
2023	4,209	142
2024	4,196	146
2025	3,989	146
2026	3,793	148
2027	3,605	151
Thereafter	24,547	3,539

Total minimum lease payments	44,339	4,272

Less: amount representing interest	12,929	1,718

Present value of minimum lease payments	31,410	2,554

As of December 31, 2021, the maturities of lease liabilities in accordance with ASC 842 in each of the next five years and thereafter were as follows:


Year Ending December 31,	Total Operating Leases	Total Finance Leases
2022	4,055	140
2023	4,066	155
2024	4,037	157
2025	3,871	157
2026	3,655	158
Thereafter	26,035	3,824

Total minimum lease payments	45,719	4,591

Less: amount representing interest	14,079	1,866

Present value of minimum lease payments	31,640	2,725

Schedule of supplemental cash flow information related to leases


	Years Ended December, 31
	2021	2022
Cash paid for amounts included in the measurement of operating lease liabilities	3,770	3,295
Cash paid for amounts included in the measurement of finance lease liabilities	92	106
Non-cash right-of-use assets obtained in exchange for operating lease liabilities	2,565	1,010
Non-cash right-of-use assets obtained in exchange for finance lease liabilities, net of reassessment of finance lease payments	501	(161)
Non-cash right-of-use assets obtained in acquisition for operating lease	1,710	171
Non-cash lease liabilities obtained in acquisition for operating lease	1,692	144

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Summary of income (loss) before income taxes


	Years Ended December 31,
	2020	2021	2022
PRC including Hong Kong and Taiwan	(392)	617	(483)
Germany	(1,606)	(632)	(410)
Other	(281)	(393)	(713)
Total	(2,279)	(408)	(1,606)

Schedule of tax expense (benefit)


	Years Ended December 31,
	2020	2021	2022
Current Tax	338	555	475
Deferred Tax	(553)	(543)	(268)
Total	(215)	12	207

Schedule of a reconciliation between the effective income tax rate and PRC statutory income tax rate


	Years Ended December 31,
	2020		2021		2022
PRC statutory tax rate	25	%	25	%	25	%
Tax effect of non-deductible expenses and non-taxable income in determining taxable profit	(6)	%	(6)	%	(6)	%
Effect of different tax rate of group entities operating in other jurisdictions	(2)	%	(6)	%	(10)	%
Effect of change in valuation allowance	(10)	%	(24)	%	(15)	%
Effect of tax holiday	1	%	9	%	1	%
Effect of cash dividends	0	%	(8)	%	(6)	%
Effect of excess tax benefit of share-based rewards	1	%	7	%	(2)	%
Effective tax rate	9	%	(3)	%	(13)	%

Schedule of the aggregate amount and per share effect of the tax holidays


	Years Ended December 31,
	2020	2021	2022
Aggregate amount	31	37	22
Per share effect—basic	0.01	0.01	0.01
Per share effect—diluted	0.01	0.01	0.01

Schedule of the principal components of the Group's deferred income tax assets and liabilities


	As of December 31,
	2021	2022
Deferred tax assets:
Net loss carryforward	1,271	1,678
Deferred revenue	326	349
Long-term assets	238	303
Bad debt provision	40	59
Accrued payroll	45	41
Other accrued expenses	3	(9)
Share-based compensation	29	31
Others	150	150
Valuation allowance	(466)	(731)
Total deferred tax assets, net of valuation allowance	1,636	1,871
Deferred tax liabilities:
Fair value adjustment for Building, land use rights and identified intangible assets due to acquisition	1,596	1,596
Others	31	40
Total deferred tax liabilities	1,627	1,636
Net deferred tax assets	9	235
Analysis as:
Deferred tax assets	862	1,093
Deferred tax liabilities	853	858
Net deferred tax assets	9	235

Summary of movement of the valuation allowance


	Years Ended December 31,
	2020	2021	2022
Balance at the beginning of the year	(152)	(369)	(466)
Provided	(249)	(151)	(338)
Reversed	32	37	41
Written off	—	17	32
Balance at the end of the year	(369)	(466)	(731)

Schedule of unrecognized tax benefits

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2022

EMPLOYEE BENEFIT PLANS

Schedule of amounts recognized in the consolidated balance sheets


	As of December 31,
	2021	2022
Salary and welfare payables	8	10
Retirement benefit obligation	144	110
Liability in the balance sheet	152	120

RELATED PARTY TRANSACTIONS AND BALANCES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of related parties


Related Party	Nature of the Party	Relationship with the Group
Trip.com Group Limited (“Trip.com”)	Online travel services provider	Mr. Qi Ji is a director
Sheen Star Group Limited (“Sheen Star”)	Investment holding company	Equity method investee of the Group, controlled by Mr. Qi Ji
Accor Hotels (“Accor”)	Hotel Group	Shareholder of the Group up to December 2021
China Cjia Group Limited (“Cjia Group”)	Apartment Management Group	Equity method investee of the Group
Shanghai Zhuchuang Enterprise Management Co., Ltd. (“Zhuchuang”)	Staged office space company	Equity method investee of the Group
China Hospitality JV, Ltd. (“China Hospitality JV”)	Property management company	Equity method investee of the Group
Shanghai Lianquan Hotel Management Co., Ltd. (“Lianquan”)	Hotel management company	Equity method investee of the Group
Suzhou Huali Jinshi Construction Decoration Co., Ltd. (“Huali Jinshi”)	Building decoration company	Equity method investee of the Group up to August 2022
Shenzhen Hitone Investment Fund Partnership (LLP) ( “Hitone”)	Fund	Equity method investee of the Group

Schedule of amounts due from related parties


	As of December 31,
	2021	2022
Trip.com	17	73
Lianquan	49	46
Sheen Star	33	29
Cjia Group	29	28
Zhuchuang	27	24
Others	12	21
Allowance for expected credit losses	(17)	(37)
Total	150	184

Schedule of amounts due to related party


	As of December 31,
	2021	2022
Trip.com	44	38
Cjia Group	101	26
Huali Jinshi	47	—
Others	5	7
Total	197	71

Schedule of significant related party transactions


	Years Ended December 31,
	2020	2021	2022
Commission expenses to Trip.com	78	99	55
Lease expenses to Trip.com	18	19	19
Lease expenses to Cjia Group	—	12	31
Service fee to Huali Jinshi	41	42	—
Service fee to Cjia Group	17	—	—
Brand use fee, reservation fee and other related service fee to Accor	17	22	—
Goods sold and service provided to Cjia Group	18	11	4
Early termination compensation of sublease to Cjia Group	8	—	—
Loan payment to Hitone	—	5	—
Service fee from Trip.com	66	62	93
Service fee from Accor	3	3	—
Service fee from Sheen Star	4	5	4
Sublease income from Lianquan	12	10	12
Sublease income from Cjia Group	9	6	5
Early termination compensation of franchise agreement from China Hospitality JV	26	—	—
Purchase of property and equipment from Cjia Group	11	—	—
Business acquisition of CitiGO from Cjia Group	—	783	—
Business acquisition of one individual company from Cjia Group	—	51	—

ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) ¥ in Millions	1 Months Ended		12 Months Ended
	Jun. 30, 2021	Sep. 30, 2020 CNY (¥)	Dec. 31, 2022 item $ / shares	Dec. 31, 2021 item $ / shares	May 31, 2021 $ / shares	Jan. 02, 2020
Organization and presentation activities
Proceeds from issuance of ordinary shares in Hong Kong public offering \| ¥		¥ 6,018
Ordinary shares, par value (in dollars per share) \| $ / shares			$ 0.00001	$ 0.00001	$ 0.0001
Share split conversion ratio	10
Legacy Huazhu \| Minimum
Organization and presentation activities
Term of franchise and management agreement			8 years
Legacy Huazhu \| Maximum
Organization and presentation activities
Term of franchise and management agreement			10 years
Leased and owned hotels
Organization and presentation activities
Number of hotels			704	738
Manachised hotels
Organization and presentation activities
Number of hotels			7,617	6,824
Manachised hotels \| Legacy DH \| Minimum
Organization and presentation activities
Term of franchise and management agreement			15 years
Manachised hotels \| Legacy DH \| Maximum
Organization and presentation activities
Term of franchise and management agreement			20 years
Franchised hotels
Organization and presentation activities
Number of hotels			222	268
Franchised hotels \| Legacy DH \| Minimum
Organization and presentation activities
Term of franchise and management agreement			10 years
Franchised hotels \| Legacy DH \| Maximum
Organization and presentation activities
Term of franchise and management agreement			15 years
Deutsche Hospitality
Organization and presentation activities
Percent of ownership acquired (as percent)						100.00%

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Variable Interest Entities (Details) - entity	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
VIEs
Variable Interest Entities
Number of entities consolidated	7	7

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Property and equipment, net (Details)	12 Months Ended
	Dec. 31, 2022
Leasehold improvements
Property and equipment, net
Property and equipment, estimated useful life	Shorter of the lease term or their estimated useful lives
Buildings \| Minimum
Property and equipment, net
Property and equipment, estimated useful life	20 years
Buildings \| Maximum
Property and equipment, net
Property and equipment, estimated useful life	40 years
Furniture, fixtures and equipment \| Minimum
Property and equipment, net
Property and equipment, estimated useful life	1 year
Furniture, fixtures and equipment \| Maximum
Property and equipment, net
Property and equipment, estimated useful life	20 years
Motor vehicles
Property and equipment, net
Property and equipment, estimated useful life	5 years

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Intangible assets (Details) - CNY (¥) ¥ in Millions		12 Months Ended
	Jan. 02, 2020	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms	25 years
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration]		Other Operating Income (Expense), Net	Other Operating Income (Expense), Net
Impairment loss on intangible assets			¥ 245
Minimum \| Manachised and franchised hotels
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms		10 years
Minimum \| Non-compete agreement
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms		2 years
Minimum \| Purchased software
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms		3 years
Minimum \| Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms		2 years
Maximum \| Manachised and franchised hotels
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms		20 years
Maximum \| Non-compete agreement
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms		10 years
Maximum \| Purchased software
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms		10 years
Maximum \| Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms		15 years

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Land use rights (Details) ¥ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥) item	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Accounting policies
Long-lived asset impairment loss	¥ 297	¥ 157	¥ 180
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag	true
Number of reporting units \| item	2
Net revenues	¥ 13,862	12,785	10,196
Advertising related expenses	128	165	150
Loyalty program
Accounting policies
Net revenues	¥ 267	¥ 243	¥ 223
Minimum
Accounting policies
Estimated membership duration	2 years
Minimum \| Legacy Huazhu
Accounting policies
Initial lease term	10 years
Minimum \| Legacy DH
Accounting policies
Initial lease term	20 years
Minimum \| Land use rights
Accounting policies
Remaining contractual term	30 years
Maximum
Accounting policies
Estimated membership duration	5 years
Maximum \| Legacy Huazhu
Accounting policies
Initial lease term	20 years
Maximum \| Legacy DH
Accounting policies
Initial lease term	25 years
Maximum \| Land use rights
Accounting policies
Remaining contractual term	50 years

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Fair value (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Fair value
Total equity securities with readily determinable fair values	¥ 1,788	¥ 2,589		$ 259
Operating lease right-of-use assets	28,970	29,942		4,200
Impairment charge of intangible assets		245
Goodwill, Impairment Loss			¥ 437
Property and equipment, impairment loss		24
Operating lease right-of-use assets, impairment loss		48
Long-term investment, impairment loss		63
Goodwill	5,195	5,132	4,988	$ 753
Long-lived asset impairment loss	297	157	180
Convertible Debt
Fair value
Long-term bank borrowings, current portion		3,029
Carrying amounts of convertible senior notes	3,463	6,186	6,318
Fair value of convertible senior notes	4,283	6,681	¥ 7,747
Recurring basis \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair value
Total equity securities with readily determinable fair values	1,788	2,589
Employee benefit plan assets	13	5
Recurring basis \| Significant Other Observable Inputs (Level 2)
Fair value
Available-for-sale debt securities		220
Recurring basis \| Significant Unobservable Inputs (Level 3)
Fair value
Available-for-sale debt securities	296
Non-recurring basis
Fair value
Property and equipment		33
Intangible assets		2,556
Operating lease right-of-use assets		88
Non-recurring basis \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair value
Property and equipment	38
Intangible assets	388
Long-term investments	11
Operating lease right-of-use assets	336
Non-recurring basis \| Significant Other Observable Inputs (Level 2)
Fair value
Property and equipment	38
Intangible assets	388
Long-term investments	11
Operating lease right-of-use assets	336
Non-recurring basis \| Significant Unobservable Inputs (Level 3)
Fair value
Property and equipment	218	33
Intangible assets	170	2,556
Long-term investments	27
Operating lease right-of-use assets	¥ 76	¥ 88
Revenue growth rate \| Minimum
Fair value
Measurement input	(15)	(15)	(15)	(15)
Revenue growth rate \| Maximum
Fair value
Measurement input	4	4	4	4
Discount rate \| Minimum
Fair value
Measurement input	8.64	8.64	8.64	8.64
Discount rate \| Maximum
Fair value
Measurement input	12	12	12	12

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Treasury shares (Details)	Dec. 30, 2022 $ / ¥
Translation into United States Dollars
Foreign exchange rate used to translate amounts denominated in RMB to US dollar	6.8972

ACQUISITIONS - Citigo acquisition and Other acquisitions (Details) € in Millions, ¥ in Millions				12 Months Ended
	Apr. 30, 2021 CNY (¥)	Jan. 02, 2020 CNY (¥) item	Jan. 02, 2020 EUR (€) item	Dec. 31, 2022 CNY (¥) item	Dec. 31, 2021 CNY (¥) item	Dec. 31, 2020 CNY (¥) item
CitiGo Hotels
Acquisitions
Percentage of ownership interest acquired	100.00%
Aggregated consideration	¥ 783
Cash consideration					¥ 749
Other acquisitions
Acquisitions
Cash consideration				¥ 9	¥ 51	¥ 26
Number of hotels acquired \| item				7	3	3
Deutsche Hospitality
Acquisitions
Percentage of ownership interest acquired		100.00%	100.00%
Aggregated consideration		¥ 5,624	€ 720
Number of brands in which entity is operating \| item		5	5

ACQUISITIONS - Allocation of purchase price (Details) ¥ in Millions, $ in Millions		12 Months Ended
	Jan. 02, 2020 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)	Apr. 30, 2021 CNY (¥)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Goodwill		¥ 5,195	¥ 5,132	¥ 4,988	$ 753
Estimated useful life of intangible assets	25 years
Manachised and franchised hotels \| Minimum
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Estimated useful life of intangible assets		10 years
Manachised and franchised hotels \| Maximum
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Estimated useful life of intangible assets		20 years
Non-compete agreement \| Minimum
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Estimated useful life of intangible assets		2 years
Non-compete agreement \| Maximum
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Estimated useful life of intangible assets		10 years
Deutsche Hospitality
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Current assets	¥ 785
Property and equipment, net	586
Operating lease right-of-use assets	8,616
Other non-current assets	280
Intangible assets, finite life	270
Goodwill	2,694
Operating lease liabilities, current	(296)
Others	(784)
Operating lease liabilities, non-current	(8,553)
Other noncurrent liabilities	(330)
Deferred tax liabilities	(1,304)
Financing lease right-of-use assets	1,794
Deferred tax assets	170
Finance lease liabilities, current	(21)
Finance lease liabilities, non-current	(2,166)
Total	5,624
Deutsche Hospitality \| Minimum
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Estimated useful life of property, plant and equipment				2 years
Deutsche Hospitality \| Non-compete agreement
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Intangible assets, finite life	¥ 10
Estimated useful life of intangible assets	2 years
Deutsche Hospitality \| Brand names
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Intangible assets, Indefinite life	¥ 3,873
CitiGo Hotels
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Current assets						¥ 34
Property and equipment, net						296
Operating lease right-of-use assets						1,119
Other non-current assets						33
Goodwill						372
Operating lease liabilities, current						(153)
Others						(23)
Operating lease liabilities, non-current						(987)
Other noncurrent liabilities						(5)
Deferred tax liabilities						(33)
Noncontrolling interest						(21)
Total						783
CitiGo Hotels \| Minimum
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Estimated useful life of property, plant and equipment			5 years
CitiGo Hotels \| Maximum
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Estimated useful life of property, plant and equipment			12 years
CitiGo Hotels \| Franchise agreement
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Intangible assets, finite life						61
CitiGo Hotels \| Brand names
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Intangible assets, Indefinite life						¥ 90

REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregated Revenues (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregated Revenues
Total revenues	¥ 13,862	¥ 12,785	¥ 10,196
Leased and owned hotels
Disaggregated Revenues
Total revenues	9,148	8,118	6,908
Room Revenues
Disaggregated Revenues
Total revenues	7,571	7,024	5,735
Food and Beverage Revenues
Disaggregated Revenues
Total revenues	1,049	694	608
Others
Disaggregated Revenues
Total revenues	528	400	565
Manachised and franchised hotels
Disaggregated Revenues
Total revenues	4,405	4,404	3,136
Initial one-time license/franchise fee
Disaggregated Revenues
Total revenues	106	109	110
On-going management and service/royalty fees
Disaggregated Revenues
Total revenues	1,375	1,479	1,057
Central reservation system usage fees, other system maintenance and support fees
Disaggregated Revenues
Total revenues	1,262	1,399	908
Reimbursements for hotel manager fees
Disaggregated Revenues
Total revenues	1,103	897	657
Other fees
Disaggregated Revenues
Total revenues	559	520	404
Others
Disaggregated Revenues
Total revenues	¥ 309	¥ 263	¥ 152

REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Balances (Details) ¥ in Millions, $ in Millions	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Contract with Customer, Liability
Current contract liabilities	¥ 1,308	$ 190	¥ 1,366
Long-term contract liabilities	828	$ 120	785
Total contract liabilities	¥ 2,136		¥ 2,151

REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Balances - Contract liabilities (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Contract with Customer, Liability
Total contract liabilities	¥ 2,136	¥ 2,151
Revenue recognized	¥ 655	¥ 613

PROPERTY AND EQUIPMENT, NET - Schedule (Details) ¥ in Millions, $ in Millions	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Cost:
Property and equipment, gross	¥ 14,318		¥ 13,123
Less: Accumulated depreciation	7,727		6,845
Property and equipment net excluding construction in process	6,591		6,278
Construction in progress	193		778
Property and equipment, net	6,784	$ 984	7,056
Buildings
Cost:
Property and equipment, gross	843		305
Leasehold improvements
Cost:
Property and equipment, gross	10,952		10,467
Furniture, fixtures and equipment
Cost:
Property and equipment, gross	2,520		2,348
Motor vehicles
Cost:
Property and equipment, gross	¥ 3		¥ 3

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
PROPERTY AND EQUIPMENT, NET
Depreciation expense	¥ 1,312	¥ 1,352	¥ 1,219

INTANGIBLE ASSETS, NET - Schedule (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥) item	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Intangible assets, net
Intangible assets, gross	¥ 5,876	¥ 5,791
Less: Accumulated amortization	178	163
Less: Accumulated impairment loss	420	243
Total	5,278	5,385		$ 765
Amortization expense of intangible assets	¥ 45	¥ 65	¥ 62
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Operating Income (Expense), Net	Other Operating Income (Expense), Net
Legacy DH
Intangible assets, net
Number of brand names acquired \| item		3
Manachised and franchised hotels
Intangible assets, net
Intangible assets, gross	¥ 368	¥ 366
Purchased software
Intangible assets, net
Intangible assets, gross	128	142
Other intangible assets
Intangible assets, net
Intangible assets, gross	77	81
Brand names
Intangible assets, net
Intangible assets, gross	5,111	5,010
One brand name
Intangible assets, net
Impairment loss recognized	167	160
Master brand agreement
Intangible assets, net
Intangible assets, gross	¥ 192	¥ 192

INTANGIBLE ASSETS, NET - Amortization (Details) - Intangible assets excluding brand names and master brand agreement ¥ in Millions	Dec. 31, 2022 CNY (¥)
Amortization for Intangible Assets
2023	¥ 36
2024	33
2025	31
2026	29
2027	28
Thereafter	151
Total	¥ 308

INVESTMENTS - Schedule (Details) ¥ in Millions, $ in Millions	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
INVESTMENTS
Total equity securities with readily determinable fair values	¥ 1,788	$ 259	¥ 2,589
Equity securities without readily determinable fair values:	257		293
Equity-method investments:	1,392		1,452
Investments	1,945		1,965
Accor
INVESTMENTS
Total equity securities with readily determinable fair values	1,701		2,508
Other marketable securities
INVESTMENTS
Total equity securities with readily determinable fair values	87		81
Cjia/Cjia Group
INVESTMENTS
Equity securities without readily determinable fair values:	138		168
Available-for-sale debt securities:	296		220
OYO
INVESTMENTS
Equity securities without readily determinable fair values:	54		54
Other equity securities without readily determinable fair values
INVESTMENTS
Equity securities without readily determinable fair values:	65		71
AAPC LUB
INVESTMENTS
Equity-method investments:	494		525
Hotel related funds
INVESTMENTS
Equity-method investments:	443		488
China Hospitality JV
INVESTMENTS
Equity-method investments:	67		99
Zleep
INVESTMENTS
Equity-method investments:	70		68
Commerz Real Institute
INVESTMENTS
Equity-method investments:	80		85
Other investments
INVESTMENTS
Equity-method investments:	¥ 238		¥ 187

INVESTMENTS - Equity securities with readily determinable fair values (Details) - Accor - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity securities with readily determinable fair values
Number of ordinary shares acquired	0	1,180,000	8,737,987
Number of ordinary shares sold	2,397,596	5,172,458
Gain realized	¥ 74	¥ 209
Number of shares held in investment	9,814,956
Investment in equity securities (in percentage)	5.00%
Unrealized losses from fair value	¥ 358	¥ 94

INVESTMENTS - Equity securities without readily determinable fair values (Details) € in Millions, ¥ in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 EUR (€)	Dec. 31, 2020 CNY (¥)
INVESTMENTS
Equity securities without readily determinable fair values:		¥ 257		¥ 293
Investment loss (income)		(321)	$ (47)	188		¥ (284)
Impairment of equity securities with out readily determinable fair value		7		0
Preferred shares
INVESTMENTS
Equity securities without readily determinable fair values:		138
Cjia/Cjia Group
INVESTMENTS
Equity securities without readily determinable fair values:		¥ 138		¥ 168
Commerz Real Institute
INVESTMENTS
Consideration for purchase of investments \| €					€ 12
OYO
INVESTMENTS
Equity interest owned (as a percent)		1.00%		1.00%
Percentage of equity interest acquired	1.00%
Equity securities without readily determinable fair values:		¥ 54		¥ 54
Investment loss (income)				¥ 52

INVESTMENTS - Equity-method investments (Details) € in Millions, ¥ in Millions, $ in Millions	1 Months Ended		12 Months Ended
	Feb. 28, 2019	Jan. 31, 2016	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 EUR (€)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2018
Equity-method investments
Income (Loss) from Equity Method Investments			¥ (36)	$ (5)	¥ (60)		¥ (140)
Equity-method investments:			1,392		1,452
Impairment loss					63
Covid 19 \| Equity-method investments
Equity-method investments
Impairment loss			20		63
AAPC LUB
Equity-method investments
Income (Loss) from Equity Method Investments			16		35		21
Received cash dividend			47		0		0
Percentage of equity interest acquired		28.00%
Equity-method investments:			494		525
China Hospitality JV
Equity-method investments
Income (Loss) from Equity Method Investments			22		(4)		(12)
Received cash dividend			54
Percentage of equity interest acquired								20.00%
Equity-method investments:			67		99
Commerz Real Institute
Equity-method investments
Income (Loss) from Equity Method Investments			(7)		(1)
Equity-method investments:			80		¥ 85
Equity method investment, ownership percentage					34.00%
Consideration for purchase of investments \| €						€ 12
Hotel related funds
Equity-method investments
Income (Loss) from Equity Method Investments			(31)		¥ (55)		¥ (16)
Equity-method investments:			443		488
Maximum potential loss, in loss of value of interests in investments			443
Zleep
Equity-method investments
Income (Loss) from Equity Method Investments			0		(12)
Percentage of equity interest acquired	51.00%
Equity-method investments:			¥ 70		¥ 68

GOODWILL - Changes in carrying amount (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
GOODWILL
Gross carrying values	¥ 5,606	¥ 5,532	¥ 5,432
Accumulated impairment loss	(411)	(400)	(444)
Goodwill	5,195	5,132	4,988	$ 753
Goodwill acquired during the year (Note 3)	4	378
Net foreign exchange-goodwill	70	(278)
Net foreign exchange-impairment loss	¥ (11)	¥ 44
Hypothetical decline in projected cash flow or increase in the discount rate (as a percent)	5.00%			5.00%
Hypothetical decline in projected cash flow (as a percent)		5.00%
Hypothetical goodwill impairment in 5% decline in projected cash flow		¥ 313
Hypothetical goodwill impairment in 5% increase in discount rate		359
Legacy Huazhu
GOODWILL
Gross carrying values	¥ 3,036	3,036	2,664
Accumulated impairment loss	(4)	(4)	(4)
Goodwill	¥ 3,032	3,032	2,660
Goodwill acquired during the year (Note 3)		¥ 372
Percentage of fair value exceeded the carrying value	100.00%	100.00%		100.00%
Legacy DH
GOODWILL
Gross carrying values	¥ 2,570	¥ 2,496	2,768
Accumulated impairment loss	(407)	(396)	(440)
Goodwill	2,163	2,100	2,328
Goodwill acquired during the year (Note 3)	4	6
Net foreign exchange-goodwill	70	(278)
Net foreign exchange-impairment loss	(11)	44
Impairment loss	¥ 0	¥ 0	¥ 437
Percentage of fair value exceeded the carrying value	25.00%	13.00%		25.00%
Fair value exceeded carrying value	¥ 769	¥ 421

DEBT - Components (Details) ¥ in Millions, $ in Millions	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
DEBT
Short-term debt	¥ 3,288	$ 477	¥ 6,232
Total	3,288		6,232
Long-term debt, non-current portion	6,635	$ 962	3,565
Long-term debt	6,635		3,565
Bank borrowings
DEBT
Long-term debt, current portion	208		2,464
Long-term debt, non-current portion	2,929		211
Convertible Debt [Member]
DEBT
Long-term debt, current portion			3,029
Long-term debt, non-current portion	3,463		3,158
FF&E liability
DEBT
Long-term debt, current portion	45		47
Long-term debt, non-current portion	228		180
Others
DEBT
Long-term debt	15		16
Bank borrowings
DEBT
Short-term debt	¥ 3,035		¥ 692

DEBT - Bank borrowings (Details) € in Millions, ¥ in Millions, $ in Millions	1 Months Ended			12 Months Ended
	Oct. 31, 2022 USD ($)	Aug. 31, 2022 EUR (€)	Jan. 31, 2021 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Oct. 31, 2022 CNY (¥)	Oct. 31, 2022 USD ($)	Dec. 31, 2021 EUR (€)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 EUR (€)
Debt
Long-term debt, non-current portion				¥ 6,635			¥ 3,565	$ 962
Long-term debt \| ¥				6,635			3,565
Short-term Debt				3,288			6,232	477
Note repurchased				¥ 3,406	$ 494		0
Euro
Debt
Percentage points added to the reference rate		1.55%
RMB
Debt
Percentage points added to the reference rate		0.15%
One year term facility
Debt
Maximum borrowing amount \| ¥										¥ 1,000
Term of debt instrument	1 year
Credit facility drawn down amount \| $	$ 65
Term Facility Expiring December 2022
Debt
Maximum borrowing amount														€ 440
Bank borrowings entered in August 2022
Debt
Weighted average interest rate (as a percent)				3.01%	3.01%	3.01%
Repayment of line of credit facility \| ¥				¥ 0
Long-term facility entered in August 2022
Debt
Maximum borrowing amount		€ 220
Term of debt instrument		3 years
Credit facility drawn down amount						€ 220
Term facility entered in August 2022 \| RMB
Debt
Maximum borrowing amount		€ 110
Credit facility drawn down amount						110
Revolving credit facility entered in August 2022
Debt
Maximum borrowing amount		€ 70
Term of debt instrument		35 months
Credit facility drawn down amount						€ 70
Revolving Credit Facility Expiring December 2022
Debt
Maximum borrowing amount									€ 338			€ 338	$ 500
One-Year Uncommitted Term Loan
Debt
Maximum borrowing amount \| $											$ 123
Term of debt instrument	1 year
Fixed interest rate (as a percent)										5.40%	5.40%
Credit facility drawn down amount \| $	$ 121
Short-term Debt \| $								$ 121
Syndicated Loan Facility Expiring in December 2032
Debt
Maximum borrowing amount \| ¥			¥ 650
Long-term debt \| ¥				¥ 53			¥ 53
Term of debt instrument			12 years
Weighted average interest rate (as a percent)				4.19%	4.19%	4.19%	4.41%
Interest capitalized amount \| ¥				¥ 2			¥ 1

DEBT - ADS Lending Arrangement (Details) - ADS Lending Arrangement - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2021	Dec. 31, 2020	May 31, 2018	Apr. 30, 2018
Debt Instrument [Line Items]
Number of Loaned ADS lent	2,606,278
ADS par value per share	$ 0.0004
ADS to ordinary share ratio				1	4
Loand ADS outstanding		10,425,112	10,425,112

DEBT - Capped Call Options (Details) $ in Millions	1 Months Ended
DEBT - Capped Call Options (Details) $ in Millions	Jun. 30, 2022 USD ($)
DEBT
Settlement amount of call option	$ 12.8
Increase of additional paid in capital by settlement of capped call option	$ 12.8

DEBT - Convertible Senior Notes (Details) $ / shares in Units, ¥ in Thousands				12 Months Ended
	May 12, 2020 CNY (¥)	May 12, 2020 USD ($)	Nov. 03, 2017 USD ($) $ / shares	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥) shares	Nov. 01, 2022 USD ($)	May 26, 2020 USD ($)	May 12, 2020 USD ($) $ / shares
DEBT
Note repurchased				¥ 3,406,000	$ 494,000,000	¥ 0
Convertible Senior Notes Due 2022
DEBT
Number of shares converted \| shares						1,340	2,020
Amount converted \| ¥						¥ 0	¥ 0
Convertible Debt \| Convertible Senior Notes Due 2022
DEBT
Aggregate principal amount			$ 475,000,000
Fixed interest rate (as a percent)			0.375%
Initial conversion price \| $ / shares			$ 182.25
Repurchase price as a percentage of principal amount			100.00%
Initial conversion rate per ADS			5.4869
Increment used for debt conversion			$ 1,000
Number of shares converted \| shares						134	202
Amount converted \| ¥						¥ 40	¥ 60
Notes redeemed								$ 475,000,000
Convertible Debt \| 2026 Notes
DEBT
Aggregate principal amount										$ 450,000,000
Additional aggregate maximum amount of notes to purchase									$ 50,000,000
Fixed interest rate (as a percent)	3.00%									3.00%
Proceeds from issuance of debt	¥ 3,499,000	$ 493,000,000
Debt issuance costs	¥ 49,000									$ 7,000,000
Initial conversion price \| $ / shares										$ 23.971
Repurchase price as a percentage of principal amount	100.00%	100.00%
Initial conversion rate per ADS	41.72	41.72
Increment used for debt conversion		$ 1,000

DEBT - Schedule of contractual maturities of the group's long-term debt (Details) ¥ in Millions	Dec. 31, 2022 CNY (¥)
Contractual maturities
2023	¥ 3,287
2024	3,755
2025	2,735
2026	34
2027	28
Thereafter	100
Total	¥ 9,939

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Millions, $ in Millions	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Payable to franchisees	¥ 652		¥ 710
Other payables	850		535
Accrued utilities and other accrued expenses	332		209
Liabilities related to customer loyalty program	166		135
Value-added tax, other tax and surcharge payables	234		132
Advance from noncontrolling interest holders	103		117
Total	¥ 2,337	$ 339	¥ 1,838

HOTEL OPERATING COSTS (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
HOTEL OPERATING COSTS.
Rents	¥ 3,927		¥ 3,900	¥ 3,485
Utilities	603		507	478
Personnel costs	3,683		3,022	2,501
Depreciation and amortization	1,414		1,413	1,316
Consumable, food and beverage	1,026		969	885
Others	1,607		1,471	1,064
Total	¥ 12,260	$ 1,777	¥ 11,282	¥ 9,729

PRE-OPENING EXPENSES (Details) ¥ in Millions, $ in Millions	12 Months Ended
PRE-OPENING EXPENSES (Details) ¥ in Millions, $ in Millions	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
PRE-OPENING EXPENSES
Rents	¥ 84		¥ 68	¥ 251
Personnel costs	5		5	15
Others	6		8	22
Total	¥ 95	$ 14	¥ 81	¥ 288

SHARE-BASED COMPENSATION - Plan (Details) - shares	12 Months Ended
SHARE-BASED COMPENSATION - Plan (Details) - shares	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2015	Aug. 31, 2010	Sep. 30, 2009	Oct. 31, 2008	Jun. 30, 2007	Feb. 28, 2007
Share options
Share based compensation
Share options outstanding (in shares)	0
Incentive Award Plans
Share based compensation
Vesting period	10 years
Incentive Award Plans \| Maximum [Member]
Share based compensation
Share-based payment award, contractual term	10 years
Incentive Award Plans \| Share options
Share based compensation
Share-based payment award, option granted (in shares)		245,776,690
Incentive Award Plans \| Restricted stocks
Share based compensation
Share-based payment award, nonvested restricted stocks (in shares)		277,921,390
Incentive Award Plans \| Second anniversary of the stated vesting commencement date
Share based compensation
Share-based payment award, vesting percentage	50.00%
Incentive Award Plans \| Vesting ratably over the following two years
Share based compensation
Share-based payment award, vesting percentage	50.00%
Vesting period	2 years
2007 Global Share Plan
Share based compensation
Share-based payment award, maximum number of incentive award available (in shares)								100,000,000
2008 Global Share Plan
Share based compensation
Share-based payment award, maximum number of incentive award available (in shares)						70,000,000	30,000,000
2009 Global Share Plan
Share based compensation
Share-based payment award, maximum number of incentive award available (in shares)			430,000,000	150,000,000	30,000,000

SHARE-BASED COMPENSATION - Nonvested restricted stocks (Details) - Restricted stocks ¥ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥) tranche $ / shares shares	Dec. 31, 2021 tranche $ / shares shares	Dec. 31, 2020 tranche shares
Number of Restricted Stocks
Nonvested restricted stocks outstanding at the beginning of the period (in shares)	53,696,490
Granted (in shares)	39,153,240
Forfeited (in shares)	(2,157,320)
Vested (in shares)	(9,462,340)
Adjusted for performance conditions (in shares)	(4,290,920)
Nonvested restricted stocks outstanding at the end of the period (in shares)	76,939,150	53,696,490
Weighted Average Grant Date Fair Value
Nonvested restricted stocks outstanding at the beginning of the period (in dollars per shares) \| $ / shares	$ 1.20
Granted (in dollars per shares) \| $ / shares	2.53
Forfeited (in dollars per shares) \| $ / shares	1.41
Vested (in dollars per shares) \| $ / shares	1.40
Adjusted for performance conditions (in dollars per share) \| $ / shares	0.63
Nonvested restricted stocks outstanding at the end of the period (in dollars per shares) \| $ / shares	$ 1.88	$ 1.20
Total unrecognized compensation expense \| ¥	$ 823
Weighted-average period for recognition of unrecognized compensation costs	3 years 7 months 13 days
Performance Condition
Share based compensation
Number of tranche \| tranche	10	10	10
Number of Restricted Stocks
Granted (in shares)	31,683,100	0	0
Performance Condition \| Second anniversary of the stated vesting commencement date
Share based compensation
Share-based payment award, vesting percentage	50.00%
Performance Condition \| Vesting ratably over the following two years
Share based compensation
Share-based payment award, vesting percentage	50.00%
Period for remaining percentage vested	2 years

SHARE-BASED COMPENSATION - Recognized share-based compensation expenses (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Recognized share-based compensation expenses	¥ 87	¥ 109	¥ 122
Hotel operating costs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Recognized share-based compensation expenses	33	39	42
Selling and marketing expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Recognized share-based compensation expenses	4	4	4
General and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Recognized share-based compensation expenses	¥ 50	¥ 66	¥ 76

EARNINGS (LOSSES) PER SHARE (Details) ¥ / shares in Units, ¥ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 $ / shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares
EARNINGS (LOSSES) PER SHARE
Net loss attributable to ordinary shareholders - basic \| ¥	¥ (1,821)		¥ (465)	¥ (2,192)
Net loss attributable to ordinary shareholders - diluted \| ¥	¥ (1,821)		¥ (465)	¥ (2,192)
Weighted average ordinary shares outstanding - basic \| shares	3,111,196,757		3,114,124,244	2,927,398,409
Weighted average ordinary shares outstanding - diluted \| shares	3,111,196,757		3,114,124,244	2,927,398,409
Basic earnings (losses) per share \| (per share)	¥ (0.59)	$ (0.08)	¥ (0.15)	¥ (0.75)
Diluted earnings (losses) per share \| (per share)	¥ (0.59)	$ (0.08)	¥ (0.15)	¥ (0.75)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

EARNINGS (LOSSES) PER SHARE - Computation of diluted earnings (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
EARNINGS (LOSSES) PER SHARE
Securities which could potentially dilute basic earnings per share which were excluded from the computation of diluted earnings per share	197,540,150	280,523,900	297,781,490
Outstanding employee options and nonvested restricted stocks
EARNINGS (LOSSES) PER SHARE
Securities which could potentially dilute basic earnings per share which were excluded from the computation of diluted earnings per share	76,939,150	53,696,490	70,954,080
Shares of convertible senior notes
EARNINGS (LOSSES) PER SHARE
Securities which could potentially dilute basic earnings per share which were excluded from the computation of diluted earnings per share	120,601,000	226,827,410	226,827,410

SEGMENT (Details)	1 Months Ended
SEGMENT (Details)	Jan. 31, 2020 segment
SEGMENT
Number of operating segments	2
Number of reportable segments	2

SEGMENT - Segment information (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
SEGMENT
Total revenues	¥ 13,862	$ 2,010	¥ 12,785	¥ 10,196
Operating costs and expenses	14,705	2,132	13,607	11,925
Income (Losses) from operations	(294)	(43)	164	(1,686)
Net (loss) income attributable to H World Group Limited	(1,821)	(264)	(465)	(2,192)
Interest income	87	13	89	119
Interest expense	409	59	405	533
Income tax (benefit) expense	207	30	12	(215)
Depreciation and amortization	1,456	211	1,503	1,362
EBITDA	164		1,366	(631)
Share-based compensation	87	$ 13	109	122
Legacy Huazhu
SEGMENT
Total revenues	10,655		11,247	8,664
EBITDA	282		1,827	736
Legacy DH
SEGMENT
Total revenues	3,207		1,538	1,532
EBITDA	¥ (118)		¥ (461)	¥ (1,367)

SEGMENT - Total assets for operating segments (Details) ¥ in Millions, $ in Millions	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
SEGMENT
Total assets	¥ 61,507	$ 8,918	¥ 63,269
Legacy Huazhu
SEGMENT
Total assets	43,729		45,353
Legacy DH
SEGMENT
Total assets	¥ 17,778		¥ 17,916

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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+ Details

SEGMENT - Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
SEGMENT
Revenues	¥ 13,862	$ 2,010	¥ 12,785	¥ 10,196
Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill	48,473		49,956
China
SEGMENT
Revenues	10,637		11,231
Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill	31,684		33,143
Germany
SEGMENT
Revenues	2,458		1,263
Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill	13,501		13,884
All others
SEGMENT
Revenues	767		291
Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill	¥ 3,288		¥ 2,929

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

CASH DIVIDEND (Details) ¥ in Millions	Mar. 03, 2022 CNY (¥) $ / shares
CASH DIVIDEND
Cash dividends declared (per share) \| $ / shares	$ 0.021
Dividends payable \| ¥	$ 416

LEASES - Supplemental Information Related to Operating Leases (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Lease cost:
Operating fixed lease cost	¥ 4,186	¥ 4,074
- Amortization of ROU assets	93	79
- Interest on lease liabilities	116	96
Short term lease cost	0	0
Operating variable lease cost	(144)	(25)
Total lease cost	¥ 4,251	¥ 4,224
Other information:
Weighted average remaining lease term, Operating leases	13 years	13 years
Weighted average remaining lease term, Finance leases	28 years	28 years
Weighted average discount rate, Operating leases	6.28%	6.31%
Weighted average discount rate, Finance leases	3.98%	3.97%

LEASES - Schedule Of Maturities Of Lease Liabilities (Details) - CNY (¥) ¥ in Millions	Dec. 31, 2022	Dec. 31, 2021
Total Operating Leases
2023	¥ 4,209	¥ 4,055
2024	4,196	4,066
2025	3,989	4,037
2026	3,793	3,871
2027	3,605	3,655
Thereafter	24,547	26,035
Total minimum lease payments	44,339	45,719
Less: amount representing interest	12,929	14,079
Present value of minimum lease payments	31,410	31,640
Total Finance Leases
2023	142	140
2024	146	155
2025	146	157
2026	148	157
2027	151	158
Thereafter	3,539	3,824
Total minimum lease payments	4,272	4,591
Less: amount representing interest	1,718	1,866
Present value of minimum lease payments	¥ 2,554	¥ 2,725

LEASES - Schedule Of Future Minimum Payments (Details) - CNY (¥) ¥ in Millions	Dec. 31, 2022	Dec. 31, 2021
Total Operating Leases
2022	¥ 4,209	¥ 4,055
2023	4,196	4,066
2024	3,989	4,037
2025	3,793	3,871
2026	3,605	3,655
Thereafter	24,547	26,035
Total minimum lease payments	44,339	45,719
Less: amount representing interest	12,929	14,079
Present value of minimum lease payments	31,410	31,640
Total Finance Leases
2022	142	140
2023	146	155
2024	146	157
2025	148	157
2026	151	158
Thereafter	3,539	3,824
Total minimum lease payments	4,272	4,591
Less: amount representing interest	1,718	1,866
Present value of minimum lease payments	¥ 2,554	¥ 2,725

LEASES - Narrative (Details) ¥ in Millions	12 Months Ended
LEASES - Narrative (Details) ¥ in Millions	Dec. 31, 2022 CNY (¥) contract	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
LEASES
Sublease income	¥ 119	¥ 134	¥ 112
Negative lease expense recognized under the relief using variable lease expense approach	¥ 281	¥ 88
Number of lease contracts \| contract	34
Non-cancellable lease contracts not reflected in consolidate balance sheets	¥ 8,387

LEASES - Supplemental cash flow information related to leases (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Supplemental disclosure of cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	¥ 3,295	¥ 3,770
Cash paid for amounts included in the measurement of finance lease liabilities	106	92
Non-cash right-of-use assets obtained in exchange for operating lease liabilities	1,010	2,565
Non-cash right-of-use assets obtained in exchange for finance lease liabilities, net of reassessment of finance lease payments		501
Non-cash right-of-use assets obtained in exchange for finance lease liabilities, net of reassessment of finance lease payments	(161)
Non-cash right-of-use assets obtained in acquisition for operating lease	171	1,710
Non-cash lease liabilities obtained in acquisition for operating lease	¥ 144	¥ 1,692

INCOME TAXES (Details) ¥ in Millions, $ in Millions	1 Months Ended	12 Months Ended								24 Months Ended
INCOME TAXES (Details) ¥ in Millions, $ in Millions	Dec. 31, 2022	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2024	Dec. 31, 2020
Income tax
Effective tax rate (as a percent)				25.00%	25.00%	25.00%	25.00%
Percentage holding of the PRC company				25	25
Percentage of reduction for the first RMB 3 million of taxable income										75.00%
Income (loss) before income taxes
Loss before income taxes				¥ (1,606)	$ (233)	¥ (408)	¥ (2,279)
Minimum [Member]
Income tax
Extended limitation tax evasion period				5 years	5 years
Maximum [Member]
Income tax
Extended limitation tax evasion period				10 years	10 years
China
Income tax
Effective tax rate (as a percent)				25.00%	25.00%
Preferential income tax rate (as a percent)				20.00%	20.00%
Percentage of reduction for the first RMB 1 million of taxable income				87.50%	87.50%	87.50%					75.00%
Percentage of reduction for annual taxable income between RMB 1 million and 3 million				75.00%	75.00%	50.00%					50.00%
Income (loss) before income taxes
PRC including Hong Kong and Taiwan				¥ (483)		¥ 617	(392)
GERMANY
Income tax
Effective tax rate (as a percent)				15.00%	15.00%
Effective income tax rate including solidarity surcharge				15.825%	15.825%
Income (loss) before income taxes
Income taxes foreign				¥ (410)		(632)	(1,606)
GERMANY \| Minimum [Member]
Income tax
Municipal Trade Tax				7.00%	7.00%
GERMANY \| Maximum [Member]
Income tax
Municipal Trade Tax				21.00%	21.00%
Countries Other Than China And Germany [Member]
Income (loss) before income taxes
Income taxes foreign				¥ (713)		¥ (393)	¥ (281)
Countries Other Than China And Germany [Member] \| Minimum [Member]
Income tax
Effective tax rate (as a percent)				9.00%	9.00%
Countries Other Than China And Germany [Member] \| Maximum [Member]
Income tax
Effective tax rate (as a percent)				25.00%	25.00%
Jizhu Shanghai \| China
Income tax
Effective tax rate (as a percent)			15.00%	15.00%	15.00%	15.00%	15.00%	15.00%	15.00%
H-World Information \| China
Income tax
Effective tax rate (as a percent)						15.00%	15.00%	15.00%
Preferential income tax rate (as a percent)	15.00%	15.00%	15.00%

INCOME TAXES - Reconciliation (Details) ¥ / shares in Units, ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥) ¥ / shares	Dec. 31, 2020 CNY (¥) ¥ / shares
Tax expense (benefit)
Current Tax \| ¥	¥ 475		¥ 555	¥ 338
Deferred Tax	(268)	$ (39)	(543)	(553)
Total	¥ 207	$ 30	¥ 12	¥ (215)
Reconciliation between the effective income tax rate and the PRC statutory income tax rate
PRC statutory tax rate	25.00%	25.00%	25.00%	25.00%
Tax effect of non-deductible expenses and non-taxable income in determining taxable profit	(6.00%)	(6.00%)	(6.00%)	(6.00%)
Effect of different tax rate of group entities operating in other jurisdictions	(10.00%)	(10.00%)	(6.00%)	(2.00%)
Effect of change in valuation allowance	(15.00%)	(15.00%)	(24.00%)	(10.00%)
Effect of tax holiday	1.00%	1.00%	9.00%	1.00%
Effect of cash dividends	(6.00%)	(6.00%)	(8.00%)	0.00%
Effect of excess tax benefit of share based rewards	(2.00%)	(2.00%)	7.00%	1.00%
Effective tax rate	(13.00%)	(13.00%)	(3.00%)	9.00%
Aggregate amount and per share effect of the tax holidays
Aggregate amount \| ¥	¥ 22		¥ 37	¥ 31
Per share effect-basic \| ¥ / shares	¥ 0.01		¥ 0.01	¥ 0.01
Per share effect-diluted \| ¥ / shares	¥ 0.01		¥ 0.01	¥ 0.01

INCOME TAXES - Deferred income tax assets and liabilities (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Net loss carryforward	¥ 1,678	¥ 1,271
Deferred revenue	349	326
Long-term assets	303	238
Bad debt provision	59	40
Accrued payroll	41	45
Other accrued expenses		3
Other accrued expenses	(9)
Share-based compensation	31	29
Others	150	150
Valuation allowance	(731)	(466)	¥ (369)
Total deferred tax assets	1,871	1,636
Deferred tax liabilities:
Fair value adjustment for Building, land use rights and identified intangible assets due to acquisition	1,596	1,596
Others	40	31
Total deferred tax liabilities	1,636	1,627
Net deferred tax assets	235	9
Analysis as:
Deferred tax assets	1,093	862
Deferred tax liabilities	858	853
Net deferred tax assets	235	9
Movement of the valuation allowance
Balance at the beginning of the year	(466)	(369)	(152)
Provided	(338)	(151)	(249)
Reversed	41	37	32
Written off	32	17
Balance at the end of the year	¥ (731)	¥ (466)	¥ (369)

INCOME TAXES - Valuation allowance (Details) ¥ in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2018
Uncertain tax benefits
Interest or penalty expense			¥ 0.0	¥ 0.0	¥ 0.0
Roll-forward of the unrecognized tax benefits
Beginning balance		¥ 65.0	60.0	50.0	18.0
Addition for tax positions			5.0	10.0	32.0
Ending balance			¥ 65.0	60.0	¥ 50.0
Withholding income tax rate (as a percentage)			10.00%
Withholding income tax rate with Hong Kong as holding company (as a percentage)			5.00%
PRC dividend withholding tax accrued			¥ 100.0	¥ 32.0
Period of statute of limitations			3 years
Period of statute of limitations, if the underpayment is more than the specified amount			5 years
Minimum amount of underpayment of taxes for statute of limitations to be extended to five years			¥ 0.1
Period of statute of limitations for transfer pricing issues			10 years
Tax liability reduction due to unrecognized tax benefits		¥ 0.1
Cash dividends declared \| $	$ 68
GERMANY
Valuation allowance
Tax loss carryforwards			¥ 1,555.0
China
Valuation allowance
Tax loss carryforwards, expire between 2022 and 2026			¥ 4,901.0
Maximum [Member]
Uncertain tax benefits
Market capitalization percent						2.00%
Minimum [Member]
Uncertain tax benefits
Market capitalization percent						0.50%

EMPLOYEE BENEFIT PLANS - Amounts recognized in the consolidated balance sheets (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract]
Salary and welfare payables	¥ 10		¥ 8
Retirement benefit obligation	110		144		$ 16
Liability in the balance sheet	120		152
(Loss) gain arising from defined benefit plan, net of tax of RMB13,RMB4 and RMB10 for the year ended 2020, 2021 and 2022, respectively	¥ 22	$ 3	¥ 13	¥ (27)

EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
EMPLOYEE BENEFIT PLANS
Total contribution for employee benefits	¥ 645	¥ 544	¥ 283
Contributions recognized as expense	¥ 74	¥ 55	¥ 129

RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Millions	12 Months Ended
RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
RESTRICTED NET ASSETS
Minimum required percentage of after tax profit appropriated to general reserve fund	10.00%
Threshold percentage of general reserve fund to registered capital	50.00%
Reserve funds not distributed as cash dividends	¥ 904	¥ 826	¥ 771
Restricted share capital	2,831
Restricted net assets not available for distribution to the Company in the form of dividends, loans or advances	¥ 3,735

RELATED PARTY TRANSACTIONS AND BALANCES (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
RELATED PARTY TRANSACTIONS AND BALANCES
Due to related party	¥ 71		¥ 197
Loan payment	7	$ 1	5	¥ 15
Allowance for expected credit losses	(37)		(17)
Total	184		150
Sheen Star
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties	29		33
Sheen Star \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Revenue from related parties	4		5	4
Zhuchuang
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties	24		27
Trip.com
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties	73		17
Due to related party	38		44
Trip.com \| Commission expenses
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties	55		99	78
Trip.com \| Lease expenses
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties	19		19	18
Trip.com \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Revenue from related parties	93		62	66
Cjia/Cjia Group
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties	28		29
Due to related party	26		101
Cjia/Cjia Group \| Lease expenses
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties	31		12
Cjia/Cjia Group \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties				17
Cjia/Cjia Group \| Goods sold and service provided
RELATED PARTY TRANSACTIONS AND BALANCES
Revenue from related parties	4		11	18
Cjia/Cjia Group \| Sublease income
RELATED PARTY TRANSACTIONS AND BALANCES
Revenue from related parties	5		6	9
Cjia/Cjia Group \| Business acquisition of CitiGO
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties			783
Cjia/Cjia Group \| Business acquisition
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties			51
Cjia/Cjia Group \| Early termination compensation
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties				8
Cjia/Cjia Group \| Purchase of property, plant and equipment
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties				11
Lianquan
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties	46		49
Lianquan \| Sublease income
RELATED PARTY TRANSACTIONS AND BALANCES
Revenue from related parties	12		10	12
Others
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties	21		12
Due to related party	¥ 7		5
Huali Jinshi
RELATED PARTY TRANSACTIONS AND BALANCES
Due to related party			47
Huali Jinshi \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties			42	41
Accor \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Revenue from related parties			3	3
Accor \| Brand use fee, reservation fee and other related service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties			22	17
Hitone
RELATED PARTY TRANSACTIONS AND BALANCES
Loan payment			¥ 5
China Hospitality JV \| Early termination compensation
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties				¥ 26

COMMITMENTS AND CONTINGENCIES (Details) ¥ in Millions	Dec. 31, 2022 CNY (¥)
COMMITMENTS AND CONTINGENCIES.
Purchase commitments expected to be incurred within one to two year related to leasehold improvements and installation of equipment for hotel operations	¥ 294
Accrued contingent liabilities	¥ 0

SUBSEQUENT EVENTS (Details) € in Millions, ¥ in Millions, $ in Millions	1 Months Ended						12 Months Ended
	Apr. 30, 2023 CNY (¥)	Apr. 30, 2023 EUR (€)	Mar. 31, 2023 EUR (€)	Jan. 31, 2023 CNY (¥) shares	Jan. 31, 2023 USD ($) shares	Sep. 30, 2020 CNY (¥)	Dec. 31, 2020 shares
SUBSEQUENT EVENTS
Number of shares issued							234,854,500
Proceeds from shares issued \| ¥						¥ 6,018
Subsequent Event
SUBSEQUENT EVENTS
Repaid outstanding principle revolving credit facility agreement	¥ 1,608	€ 220
Repaid interest for revolving credit facility	¥ 525	€ 70
Subsequent Event \| Accor
SUBSEQUENT EVENTS
Net proceeds from sale of investment			€ 300	¥ 2,185
Subsequent Event \| Follow-on public offering \| ADSs
SUBSEQUENT EVENTS
Number of shares issued				7,118,500	7,118,500
Proceeds from shares issued				¥ 2,012	$ 300

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - BALANCE SHEETS (Details) ¥ in Millions, $ in Millions	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Mar. 03, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 3,583	$ 520		¥ 5,116	¥ 7,026
Other current assets	809	117		847
Total current assets	9,178	1,330		9,553
Total assets	61,507	8,918		63,269
Current liabilities:
Short-term debt	3,288	477		6,232
Dividends payable			¥ 416
Amount due to subsidiaries	71	10		197
Accrued expenses and other current liabilities	2,337	339		1,838
Total current liabilities	13,146	1,906		15,279
Long-term debt	6,635	962		3,565
Other non-current liabilities	977	142		903
Total liabilities	52,704	7,641		52,225
Equity:
Ordinary shares (US$0.00001 par value per share; 80,000,000,000 shares authorized; 3,255,971,250 and 3,265,433,590 shares issued as of December 31, 2021 and 2022, and 3,120,746,090 and 3,112,413,730 shares outstanding as of December 31, 2021 and 2022, respectively)	0	0		0
Treasury shares (30,974,040 and 153,019,860 shares as of December 31, 2021 and 2022, respectively)	(441)	(64)		(107)
Additional paid-in capital	10,138	1,470		9,964
Retained earnings	(1,200)	(174)		1,037
Accumulated other comprehensive income	232	34		41
Total equity	8,729	1,266		10,935
Total liabilities and equity	61,507	8,918		63,269
Parent Company
Current assets:
Cash and cash equivalents	1,204	175		581
Short-term investments	87	13		81
Other current assets	8	1		1
Total current assets	1,299	189		663
Investment in and amount due from subsidiaries	12,390	1,796		16,928
Total assets	13,689	1,985		17,591
Current liabilities:
Short-term debt	453	66		3,028
Amount due to subsidiaries	858	124		257
Accrued expenses and other current liabilities	181	26		213
Total current liabilities	1,492	216		3,498
Long-term debt	3,463	502		3,158
Other non-current liabilities	5	1
Total liabilities	4,960	719		6,656
Equity:
Ordinary shares (US$0.00001 par value per share; 80,000,000,000 shares authorized; 3,255,971,250 and 3,265,433,590 shares issued as of December 31, 2021 and 2022, and 3,120,746,090 and 3,112,413,730 shares outstanding as of December 31, 2021 and 2022, respectively)	0	0		0
Treasury shares (30,974,040 and 153,019,860 shares as of December 31, 2021 and 2022, respectively)	(441)	(64)		(107)
Additional paid-in capital	10,138	1,470		9,964
Retained earnings	(1,200)	(174)		1,037
Accumulated other comprehensive income	232	34		41
Total equity	8,729	1,266		10,935
Total liabilities and equity	¥ 13,689	$ 1,985		¥ 17,591

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - BALANCE SHEETS (Parenthetical) (Details) - $ / shares	Dec. 31, 2022	Dec. 31, 2021	May 31, 2021	Dec. 31, 2020	Dec. 31, 2019
BALANCE SHEETS
Ordinary shares, par value (in dollars per share)	$ 0.00001	$ 0.00001	$ 0.0001
Ordinary shares, shares authorized	80,000,000,000	80,000,000,000
Ordinary shares, shares issued	3,265,433,590	3,255,971,250
Ordinary shares, shares outstanding	3,112,413,730	3,120,746,090		3,108,425,680	2,859,026,090
Treasury shares, shares	153,019,860	30,974,040
Parent Company
BALANCE SHEETS
Ordinary shares, par value (in dollars per share)	$ 0.00001	$ 0.00001
Ordinary shares, shares authorized	80,000,000,000	80,000,000,000
Ordinary shares, shares issued	3,265,433,590	3,255,971,250
Ordinary shares, shares outstanding	3,112,413,730	3,120,746,090
Treasury shares, shares	153,019,860	30,974,040

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - STATEMENTS OF COMPREHENSIVE INCOME (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Operating costs and expenses:
General and administrative expenses	¥ 1,675	$ 243	¥ 1,545	¥ 1,259
Total operating costs and expenses	14,705	2,132	13,607	11,925
Loss from operations	(294)	(43)	164	(1,686)
Interest income	87	13	89	119
Interest expense	409	59	405	533
Foreign exchange gain (loss)	(641)	(93)	(317)	175
Other income, net	10	1	157	(89)
Net loss attributable to H World Group Limited	(1,821)	(264)	(465)	(2,192)
Other comprehensive income
Foreign currency translation adjustments, net of tax of nil	112	16	(99)	203
Comprehensive loss attributable to H World Group Limited	(1,630)	(237)	(551)	(2,016)
Parent Company
Operating costs and expenses:
General and administrative expenses	93	14	110	155
Total operating costs and expenses	93	14	110	155
Loss from operations	(93)	(14)	(110)	(155)
Interest income	15	2	8	2
Interest expense	130	19	128	154
Foreign exchange gain (loss)	(223)	(32)	(3)	(8)
Other income, net	6	1	15	32
Loss from fair value changes of equity securities, net	(1)	0	(2)	(10)
Income (loss) in investment in subsidiaries	(1,395)	(202)	(245)	(1,899)
Net loss attributable to H World Group Limited	(1,821)	(264)	(465)	(2,192)
Other comprehensive income
Foreign currency translation adjustments, net of tax of nil	191	27	(86)	176
Comprehensive loss attributable to H World Group Limited	¥ (1,630)	$ (237)	¥ (551)	¥ (2,016)

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - CONDENSED STATEMENTS OF CASH FLOWS (Details) ¥ in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Sep. 30, 2020 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Adjustments to reconcile net income to net cash used in operating activities:
Net cash (used in) provided by operating activities		¥ 1,564	$ 227	¥ 1,342	¥ 609
Investing activities:
Loans to subsidiaries		7	1	5	15
Net cash (used in) provided by investing activities		(522)	(76)	(1,402)	(8,101)
Financing activities:
Proceeds from issuance of ordinary shares in Hong Kong public offering	¥ 6,018
Proceeds from Termination of Capped Call		86	12
Payment of ordinary share issuance costs		0	0	(19)	(32)
Payment of share repurchase		334	48	0
Net proceeds from issuance of ordinary shares upon exercise of option				1	1
Proceeds from short-term bank borrowings		4,249	616	2,288	1,658
Repayment of short-term bank borrowings		(1,935)	(281)	(2,474)	(1,993)
Proceeds from long-term bank borrowings		2,797	407	53	1,652
Proceeds from issuance of convertible senior notes					3,499
Direct financing costs paid		(4)	(1)		(10)
Dividends paid		(416)	(60)		(678)
Net cash provided by (used in) financing activities		(1,394)	(201)	(1,801)	883
Effect of exchange rate changes on cash and cash equivalents		297	43	(88)	(300)
Net (decrease) increase in cash and cash equivalents		(55)	(7)	(1,949)	(6,909)
Cash, cash equivalents and restricted cash at the beginning of the year		5,141	745	7,090	13,999
Cash, cash equivalents and restricted cash at the end of the year		5,086	738	5,141	7,090
Short-term bank borrowings settled by investment in subsidiaries					4,628
Parent Company
Adjustments to reconcile net income to net cash used in operating activities:
Net cash (used in) provided by operating activities		(136)	(19)	9	49
Investing activities:
Loans to subsidiaries		750	109	1,050	6,267
Repayment of loans by subsidiaries		4,165	604
Purchase of short-term investments				(34)
Net cash (used in) provided by investing activities		3,415	495	(1,084)	(6,267)
Financing activities:
Proceeds from issuance of ordinary shares in Hong Kong public offering					6,018
Proceeds from Termination of Capped Call		86	12
Payment of ordinary share issuance costs		0	0	(15)	(10)
Net settlement on shares repurchased for withholding taxes related to share-based awards				50
Payment of share repurchase		334	48	0
Loans from subsidiaries		798	116
Net proceeds from issuance of ordinary shares upon exercise of option				1	1
Proceeds from short-term bank borrowings		453	66
Repayment of short-term bank borrowings					(282)
Proceeds from issuance of convertible senior notes					3,499
Repayment of convertible senior notes		(3,406)	(494)	0	0
Direct financing costs paid					(9)
Dividends paid		(416)	(60)		(678)
Net cash provided by (used in) financing activities		(2,819)	(408)	36	8,539
Effect of exchange rate changes on cash and cash equivalents		163	24	(272)	(790)
Net (decrease) increase in cash and cash equivalents		623	91	(1,311)	1,531
Cash, cash equivalents and restricted cash at the beginning of the year		581	84	1,892	361
Cash, cash equivalents and restricted cash at the end of the year		¥ 1,204	$ 175	¥ 581	¥ 1,892

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allowance for doubtful accounts of accounts receivables and other receivables:
Valuation And Qualifying Accounts
Balance at Beginning of Year	¥ 128	¥ 87	¥ 22
Charge to Costs and Expenses	82	105	65
Charge to Other Accounts			7
Write off	(7)	(64)	(7)
Balance at End of Year	203	128	87
Valuation allowance for deferred tax assets
Valuation And Qualifying Accounts
Balance at Beginning of Year	466	369	152
Charge to Costs and Expenses	338	151	249
Charge Taken Against Allowance	(41)	(37)	(32)
Write off	(32)	(17)
Balance at End of Year	¥ 731	¥ 466	¥ 369