UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

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

SECURITIES EXCHANGE ACT OF 1934

 

For the month of July 2023

 

Commission File Number: 001-34656

 

H World Group Limited

(Registrant’s name)

 

No. 1299 Fenghua Road

Jiading District

Shanghai
People’s Republic of China
(86) 21 6195-2011

(Address of principal executive office)

 

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

 

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

 

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

 

 

 

 

  

EXHIBIT INDEX

 

Exhibit Number   Description
Exhibit 99.1   H World Group Limited Announces Preliminary Results for Hotel Operations in the Second Quarter of 2023

 

2

 

 

SIGNATURES

 

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

 

    H World Group Limited
    (Registrant)
     
Date: July 25, 2023 By: /s/ Qi Ji
  Name: Qi Ji
  Title: Executive Chairman of the Board of Directors

 

3

 

 

Exhibit 99.1

 

 

Contact Information

Investor Relations

Tel: +86 (21) 6195 9561

Email: ir@hworld.com

https://ir.hworld.com

 

H World Group Limited Announces Preliminary Results for Hotel Operations

in the Second Quarter of 2023

 

Singapore/Shanghai, China, July 25, 2023 – H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World”, “we” or “our”), a key player in the global hotel industry, today announced preliminary results for hotel operations in the second quarter (“Q2 2023”) ended June 30, 2023.

 

Business update

 

For our Legacy-Huazhu business, our RevPAR in Q2 2023 recovered to 121% of the 2019 level. The recovery continued to be supported by strong travel demand in this quarter and was primarily driven by ADR growth. Breaking down into monthly numbers, our RevPAR in April, May and June 2023 recovered to 127%, 115% and 123% of the 2019 levels, respectively. During this quarter, our hotel closures were mainly attributed to closures that were carried over from last year due to the impact of COVID-19, as well as the continued elimination of those lower-quality and underperforming economy hotels from our network. Our new hotel signing gained further momentum, reaching over 1,000 new hotels during this quarter, which reflected the rising confidence level of franchisees.

 

Steigenberger Hotels GmbH and its subsidiaries (“DH”, or “Legacy-DH”), after experiencing a season-related slowdown in Q1 2023, observed promising business recovery in Q2 2023, with blended RevPAR having recovered to 111% of the 2019 level, mainly driven by ADR growth.

 

 Page 1 of 8 

 

 

 

Operating Results: Legacy-Huazhu(1)

 

   Number of hotels   Number of rooms 
   Opened
in Q2 2023
   Closed (2)
in Q2 2023
   Net added
in Q2 2023
   As of
June 30, 2023
   As of
June 30, 2023
 
Leased and owned hotels   2    (6)   (4)   616    86,846 
Manachised and franchised hotels   372    (210)   162    8,006    731,399 
Total   374    (216)   158    8,622    818,245 

 

(1)        Legacy-Huazhu refers to H World and its subsidiaries, excluding DH.

(2)        The reasons for hotel closures mainly included non-compliance with our brand standards, operating losses, and property-related issues. In Q2 2023, we temporarily closed 23 hotels for brand upgrade or business model change purposes.

 

   As of June 30, 2023 
   Number of hotels   Unopened hotels in pipeline 
Economy hotels   4,856   1,079 
Leased and owned hotels   345   1 
Manachised and franchised hotels   4,511   1,078 
Midscale and upscale hotels   3,766   1,729 
Leased and owned hotels   271   14 
Manachised and franchised hotels   3,495   1,715 
Total   8,622   2,808 

 

 Page 2 of 8 

 

 

 

   For the quarter ended     
   June 30,   March 31,   June 30,   yoy 
   2022   2023   2023   change 
Average daily room rate (in RMB)                    
Leased and owned hotels   243    337    384    57.7%
Manachised and franchised hotels   215    269    295    37.3%
Blended   218    277    305    39.8%
Occupancy rate (as a percentage)                    
Leased and owned hotels   62.9%   76.3%   83.6%   +20.7 p.p. 
Manachised and franchised hotels   64.9%   75.5%   81.6%   +16.7 p.p. 
Blended   64.6%   75.6%   81.8%   +17.2 p.p. 
RevPAR (in RMB)                    
Leased and owned hotels   153    257    321    109.7%
Manachised and franchised hotels   139    203    241    72.8%
Blended   141    210    250    77.0%

 

   For the quarter ended 
   June 30,   June 30,   yoy 
   2019   2023   change 
Average daily room rate (in RMB)               
Leased and owned hotels   281    384    36.4%
Manachised and franchised hotels   225    295    30.9%
Blended   236    305    28.9%
Occupancy rate (as a percentage)               
Leased and owned hotels   89.4%   83.6%   -5.8 p.p. 
Manachised and franchised hotels   86.3%   81.6%   -4.7 p.p. 
Blended   86.9%   81.8%   -5.1 p.p. 
RevPAR (in RMB)               
Leased and owned hotels   252    321    27.6%
Manachised and franchised hotels   194    241    23.8%
Blended   206    250    21.4%

 

 Page 3 of 8 

 

 

 

Same-hotel operational data by class

 

Mature hotels in operation for more than 18 months

 

   Number of hotels   Same-hotel RevPAR   Same-hotel ADR   Same-hotel Occupancy 
  

As of
June 30,

  

For the quarter
ended
June 30,

   yoy
change
  

For the quarter
ended
June 30,

   yoy
change
  

For the quarter
ended
June 30,

   yoy
change
 
   2022   2023   2022   2023       2022   2023       2022   2023   (p.p.) 
Economy hotels  3,567   3,567   118   192   63.1%  168   231   37.3%  70.1%  83.3%  +13.2  
Leased and owned hotels  325   325   124   237   90.4%  178   277   55.2%  69.7%  85.5%  +15.8  
Manachised and franchised hotels  3,242   3,242   117   186   58.8%  167   224   34.3%  70.2%  83.0%  +12.8  
Midscale and upscale hotels  2,624   2,624   176   309   75.6%  284   378   33.4%  62.1%  81.7%  +19.6  
Leased and owned hotels  253   253   194   395   104.1%  339   479   41.3%  57.2%  82.6%  +25.5  
Manachised and franchised hotels  2,371   2,371   173   295   70.3%  276   362   31.2%  62.8%  81.6%  +18.8  
Total  6,191   6,191   146   251   71.8%  221   304   37.9%  66.2%  82.5%  +16.3  

 

 Page 4 of 8 

 

 

 

Operating Results: Legacy-DH(3)

 

   Number of hotels   Number of
rooms
   Unopened hotels
in pipeline
 
   Opened
in Q2 2023
   Closed
in Q2 2023
   Net added
in Q2 2023
   As of
June 30, 2023(4)
   As of
June 30, 2023
   As of
June 30, 2023
 
Leased hotels   -   -   -   80   15,497   26 
Manachised and franchised hotels   -   -   -   48   10,675   11 
Total   -   -   -   128   26,172   37 

 

(3)Legacy-DH refers to DH.
(4)As of June 30, 2023, a total of 3 hotels were temporarily closed. 1 hotel was closed due to flood damage, 1 hotel was closed due to repair work, and 1 hotel was not in operation due to a legal proceeding in progress.

 

 Page 5 of 8 

 

 

 

   For the quarter ended     
   June 30,   March 31,   June 30,   yoy 
   2022   2023   2023   change 
Average daily room rate (in EUR)                    
Leased hotels   113    108    119    6.1%
Manachised and franchised hotels   107    97    112    5.0%
Blended   110    104    117    5.6%
Occupancy rate (as a percentage)                    
Leased hotels   61.2%   53.0%   69.4%   +8.2 p.p. 
Manachised and franchised hotels   57.9%   54.1%   63.8%   +5.9 p.p. 
Blended   59.8%   53.5%   67.1%   +7.3 p.p. 
RevPAR (in EUR)                    
Leased hotels   69    57    83    20.3%
Manachised and franchised hotels   62    53    71    15.7%
Blended   66    55    78    18.5%

 

 Page 6 of 8 

 

 

 

Hotel Portfolio by Brand

 

   As of June 30, 2023 
   Hotels   Rooms   Unopened hotels 
   in operation   in pipeline 
Economy hotels   4,872    392,231    1,092 
HanTing Hotel   3,340    297,682    700 
Hi Inn   442    23,650    160 
Ni Hao Hotel   213    15,583    188 
Elan Hotel   642    31,102    1 
Ibis Hotel   219    22,318    30 
Zleep Hotels   16    1,896    13 
Midscale hotels   3,106    337,349    1,354 
Ibis Styles Hotel   92    9,390    32 
Starway Hotel   598    51,888    225 
JI Hotel   1,839    214,630    838 
Orange Hotel   577    61,441    259 
Upper midscale hotels   618    88,649    331 
Crystal Orange Hotel   167    21,748    84 
CitiGo Hotel   34    5,326    5 
Manxin Hotel   121    11,477    62 
Madison Hotel   64    8,202    62 
Mercure Hotel   148    24,667    62 
Novotel Hotel   20    5,114    15 
IntercityHotel(5)   56    10,742    36 
MAXX (6)   8    1,373    5 
Upscale hotels   129    20,644    60 
Jaz in the City   3    587    1 
Joya Hotel   7    1,234    - 
Blossom House   56    2,605    46 
Grand Mercure Hotel   9    1,823    4 
Steigenberger Hotels& Resorts(7)   54    14,395    9 
Luxury hotels   16    2,360    2 
Steigenberger Icon(8)   9    1,847    1 
Song Hotels   7    513    1 
Others   9    3,184    6 
Other hotels(9)   9    3,184    6 
Total   8,750    844,417    2,845 

 

(5)        As of June 30, 2023, 5 operational hotels and 22 pipeline hotels of IntercityHotel were in China.

(6)        As of June 30, 2023, 3 operational hotels and 5 pipeline hotels of MAXX were in China.

(7)        As of June 30, 2023, 11 operational hotels and 3 pipeline hotels of Steigenberger Hotels & Resorts were in China.

(8)        As of June 30, 2023, 3 operational hotels of Steigenberger Icon were in China.

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

 

 Page 7 of 8 

 

 

 

About H World Group Limited

 

Originated in China, H World Group Limited is a key player in the global hotel industry. As of June 30, 2023, H World operated 8,750 hotels with 844,417 rooms in operation in 18 countries. H World’s brands include Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, Ni Hao Hotel, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song Hotels. In addition, H World also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in the pan-China region.

 

H World’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, H World directly operates hotels typically located on leased or owned properties. Under the manachise model, H World manages manachised hotels through the on-site hotel managers that H World appoints, and H World collects fees from franchisees. Under the franchise model, H World provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. H World applies a consistent standard and platform across all of its hotels. As of June 30, 2023, H World operates 12 percent of its hotel rooms under lease and ownership model, and 88 percent under manachise and franchise models.

 

For more information, please visit H World’s website: https://ir.hworld.com.

 

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; economic conditions; the regulatory environment; our ability to attract and retain customers and leverage our brands; trends and competition in the lodging industry; the expected growth of demand for lodging; and other factors and risks detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results.

 

H World undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

 

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