0001104659-24-050202 | 20-F | XBRL Viewer

Years Ended December 31,

Balance at the beginning of the year

Addition for tax positions

Balance at the end of the year

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
CONSOLIDATED 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	3,210,392,530	3,265,433,590
Ordinary shares, shares outstanding	3,159,046,350	3,112,413,730
Treasury shares, shares	51,346,180	153,019,860

INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

6.INTANGIBLE ASSETS, NET

Intangible assets, net consist of the following:


	As of December 31,
	2022	2023
Intangible assets with indefinite lives:
Brand names	5,111	5,327
Master brand agreement	192	192
Intangible assets with finite lives:
Franchise or manachise agreements	368	281
Purchased software	128	135
Other intangible assets	77	75
Total	5,876	6,010
Less: Accumulated amortization	178	204
Less: Accumulated impairment loss(Note2)	420	526
Total	5,278	5,280

Amortization expense of intangible assets for the years ended December 31, 2021, 2022 and 2023 amounted to RMB65, RMB45, and RMB45, respectively.

There were 3 brand names with indefinite lives acquired in DH acquisition. Impairment recognized relating to these brand names were RMB160, RMB167 and RMB160, respectively for the years ended December 31, 2021, 2022 and 2023.

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
2024		33
2025		32
2026		29
2027		24
2028		23
Thereafter		132
Total		273

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Land use rights (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounting policies
Long-lived asset impairment loss	¥ 286	¥ 297	¥ 157
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag	true
Advertising related expenses	¥ 255	128	165
Revenue from Contract with Customer, Excluding Assessed Tax	21,882	13,862	12,785
Loyalty program
Accounting policies
Revenue from Contract with Customer, Excluding Assessed Tax	¥ 288	¥ 267	¥ 243
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

RELATED PARTY TRANSACTIONS AND BALANCES (Details) € in Millions, ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
RELATED PARTY TRANSACTIONS AND BALANCES
Total revenues	€ 750	¥ 21,882	$ 3,082	¥ 13,862	¥ 12,785
Related party
RELATED PARTY TRANSACTIONS AND BALANCES
Due to related party		77		71
Allowance for expected credit losses		(63)		(37)
Total		235		184
Related party \| Trip.com
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties		174		73
Due to related party		48		38
Related party \| Trip.com \| Commission expenses
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties		260		55	99
Related party \| Trip.com \| Lease expenses
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties		19		19	19
Related party \| Trip.com \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Total revenues		112		93	62
Related party \| Lianquan
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties		45		46
Related party \| Lianquan \| Sublease income
RELATED PARTY TRANSACTIONS AND BALANCES
Total revenues		10		12	10
Related party \| Huamai
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties		22
Related party \| Zhuchuang
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties		14		24
Related party \| Cjia Group
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties		9		28
Due to related party		16		26
Related party \| Cjia Group \| Lease expenses
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties		37		31	12
Related party \| Cjia Group \| Goods sold and service provided
RELATED PARTY TRANSACTIONS AND BALANCES
Total revenues		17		4	11
Related party \| Cjia Group \| Sublease income
RELATED PARTY TRANSACTIONS AND BALANCES
Total revenues		5		5	6
Related party \| Cjia Group \| Business acquisition of CitiGO
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties					783
Related party \| Cjia Group \| Business acquisition
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties					51
Related party \| Sheen Star
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties				29
Related party \| Sheen Star \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Total revenues		5		4	5
Related party \| Sheen Star \| Interest income
RELATED PARTY TRANSACTIONS AND BALANCES
Total revenues		10
Related party \| Others
RELATED PARTY TRANSACTIONS AND BALANCES
Amounts due from related parties		34		21
Due to related party		13		7
Related party \| Huali Jinshi \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties					42
Related party \| Accor \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Total revenues					3
Related party \| Accor \| Brand use fee, reservation fee and other related service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Expenses with related parties					22
Related party \| Hitone
RELATED PARTY TRANSACTIONS AND BALANCES
Loan payment					¥ 5
Related party \| AZURE \| Service fee
RELATED PARTY TRANSACTIONS AND BALANCES
Total revenues		¥ 17		¥ 5

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2023

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

11.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	As of December 31,
	2022	2023
Payables to franchisees	652	1,150
Other payables	850	1,146
Accrued utilities and other accrued expenses	332	283
Liabilities related to customer loyalty program	166	264
Value-added tax, other tax and surcharge payables	234	337
Advance from noncontrolling interest holders	103	81
Total	2,337	3,261

REVENUE - Disaggregated Revenues (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregated Revenues
Total revenues	¥ 21,882	¥ 13,862	¥ 12,785
Leased and owned hotel revenues
Disaggregated Revenues
Total revenues	13,796	9,148	8,118
Room revenues
Disaggregated Revenues
Total revenues	11,789	7,571	7,024
Food and beverage revenues
Disaggregated Revenues
Total revenues	1,333	1,049	694
Others
Disaggregated Revenues
Total revenues	674	528	400
Manachised and franchised hotel revenues
Disaggregated Revenues
Total revenues	7,694	4,405	4,404
Initial one-time license/franchise fee
Disaggregated Revenues
Total revenues	114	106	109
On-going management and service/royalty fees
Disaggregated Revenues
Total revenues	2,785	1,375	1,479
Central reservation system usage fees, other system maintenance and support fees
Disaggregated Revenues
Total revenues	2,628	1,262	1,399
Reimbursements for hotel manager fees
Disaggregated Revenues
Total revenues	1,400	1,103	897
Other fees
Disaggregated Revenues
Total revenues	767	559	520
Others
Disaggregated Revenues
Total revenues	¥ 392	¥ 309	¥ 263

ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - item	12 Months Ended
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - item	Dec. 31, 2023	Dec. 31, 2022	Jan. 02, 2020
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	691	704
Manachised hotels
Organization and presentation activities
Number of hotels	8,526	7,617
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	177	222
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 - Fair value (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Fair value
Subtotal	¥ 231		¥ 1,788
Impairment charge of intangible assets	166		170
Goodwill, Impairment Loss	4	$ 1
Property and equipment, impairment loss	52		218
Long-term investment, impairment loss	66		27
Operating lease right-of-use assets, impairment loss	228		76
Convertible Debt
Fair value
Long-term bank borrowings, current portion	3,537
Carrying amounts of convertible senior notes	3,537		3,463	¥ 6,186
Fair value of convertible senior notes	3,768		4,283	¥ 6,681
Recurring basis \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair value
Subtotal	231		1,788
Employee benefit plan assets	17		13
Recurring basis \| Significant Unobservable Inputs (Level 3)
Fair value
Available-for-sale debt securities	281		296
Non-recurring basis
Fair value
Property and equipment	70		38
Operating lease right-of-use assets	309		336
Intangible assets	236		388
Long-term investments	113		11
Non-recurring basis \| Significant Other Observable Inputs (Level 2)
Fair value
Property and equipment	70
Operating lease right-of-use assets	309
Intangible assets	236
Long-term investments	¥ 113
Non-recurring basis \| Significant Unobservable Inputs (Level 3)
Fair value
Property and equipment			38
Operating lease right-of-use assets			336
Intangible assets			388
Long-term investments			¥ 11
Revenue growth rate \| Minimum
Fair value
Measurement input	0.01		0.01	0.01
Revenue growth rate \| Maximum
Fair value
Measurement input	0.04		0.04	0.04
Royalty saving rate \| Minimum
Fair value
Measurement input	0.015		0.015	0.015
Royalty saving rate \| Maximum
Fair value
Measurement input	0.03		0.03	0.03
Discount rate \| Minimum
Fair value
Measurement input	0.0911		0.0911	0.0911
Discount rate \| Maximum
Fair value
Measurement input	0.12		0.12	0.12

EMPLOYEE BENEFIT PLANS (Details) - CNY (¥) ¥ in Millions	12 Months Ended
EMPLOYEE BENEFIT PLANS (Details) - CNY (¥) ¥ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
EMPLOYEE BENEFIT PLANS
Total contribution for employee benefits	¥ 699	¥ 645	¥ 544
Contributions recognized as expense	¥ 90	¥ 74	¥ 55

REVENUE - Contract Balances - Contract liabilities (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Contract with Customer, Liability
Revenue recognized	¥ 686	¥ 655

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2023

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

20.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, 2022 and 2023, accumulated benefit obligation net of plan assets recognized in the consolidated balance sheets consist of the following:


	As of December 31,
	2022	2023
Salary and welfare payables	10	12
Retirement benefit obligation	110	124
Liability in the balance sheet	120	136

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 RMB544, RMB645 and RMB699 for the years ended December 31, 2021, 2022 and 2023, respectively. The Group has no ongoing obligation to its employees subsequent to its contribution to the PRC plan.

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 RMB55, RMB74 and RMB90 for the years ended December 31, 2021, 2022 and 2023.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (q)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (l)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (o)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (p)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Treasury shares (Details)	Dec. 31, 2023 $ / ¥
Translation into United States Dollars
Foreign exchange rate used to translate amounts denominated in RMB to US dollar	7.0999

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2023

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.

As of December 31, 2022 and 2023, 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 whether there is an indication that a loss in value has occurred and whether a decline is deemed to be 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.

Held to maturity investments are stated at amortized cost.

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. In determining the allowance for credit losses, the Group evaluates available-for-sale debt securities at the individual security level and considers the Group’s investment strategy, current market conditions, financial strength of the underlying investments, term to maturity, and the Group’s intent and ability to sell the securities.

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, and impairment, if any. 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 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
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 RMB157, RMB297 and RMB286 during the years ended December 31, 2021, 2022 and 2023, 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. 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 consolidated statements 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 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 Rewards 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, the Group receives monthly cash contributions from manachised and franchised hotels determined based on the value of qualified spend by Loyalty Program members (when the points earned). The Group recognizes these contributions into revenue as the Group provides the related service. The amount of revenue recognized is based on a blend of historical funding rates and is impacted by the Group’s 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 RMB243, RMB267 and RMB288 for the years ended December 31, 2021, 2022 and 2023, 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 RMB165, RMB128 and RMB255 for the years ended December 31, 2021, 2022 and 2023, 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 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’s options to extend or to early terminate the lease, and lease extension options are included in operating lease ROU assets and lease liabilities only to the extent that it is reasonably certain that the Group will exercise such extension options and will not exercise 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 leases, lease expense is front-loaded, because ROU asset is depreciated on a straight-line basis over the shorter of the lease term or useful life of the underlying asset, and the lease liability is measured at amortized cost using the effective interest method, and the interest expense declines as the balance of lease liability declines; the depreciation of ROU assets and interest expenses on lease liabilities are respectively classified as hotel operating costs and interest expense in the consolidated statements of comprehensive income. 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, and are 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, receivables, payables, finance lease liabilities, short-term debts, and 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 RMB6,186, RMB3,463 and RMB3,537 and the corresponding fair value estimated based on quoted market price were RMB6,681, RMB4,283 and RMB3,768 as of December 31, 2021, 2022 and 2023, 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, 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, 2023	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	231	—	—
Available-for-sale debt securities	—	—	281
Employee benefit plan assets	17	—	—

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 losses recognized for the years ended December 31, 2022 and 2023 due to impairment of the related assets.


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


As of December 31, 2023		Fair Value Measurements at Reporting Date Using
		Significant Unobservable	Total Loss for
Description	Fair Value	Inputs (Level 3)	the Year
Property and equipment	70	70	52
Operating lease right-of-use assets	309	309	228
Intangible assets	236	236	166
Long-term investment	113	113	66
Goodwill	—	—	4

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, royalty saving rate and the discount rate were the significant unobservable input used in the fair value measurement, which are ranged between 1% to 4%, 1.5% to 3%, and 9.11% to 12% respectively, for the years ended December 31, 2021, 2022 and 2023, respectively.

Assets and liabilities held for sale

The Group recognizes the assets and liabilities of a disposal group as held for sale in the period (i) it has approved and committed to a plan to sell the disposal group, (ii) the disposal group is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions to sell the disposal group have been initiated, (iv) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Group initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until closing.

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 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 adopted the standards on January 1, 2023, 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.

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 adopted this ASU and there was no significant impact on the consolidated financial statements.

Accounting Standards Not Yet Adopted

On November 27, 2023, the FASB issued ASU 2023-07, under which all public entities that are required to report segment information in accordance with Topic 280 are required to disclose significant segment expenses by reportable segment if they are regularly provided to the CODM and included in each reported measure of segment profit or loss. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable “investors to better understand an entity’s overall performance” and assess “potential future cash flows.” The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Group does not expect the adoption of this ASU will have a significant impact on its consolidated financial statements.

On December 14, 2023, the FASB issued ASU 2023-09, which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. The ASU amends ASC 740-10-50-12 to require a public business entity to disclose a reconciliation between the amount of reported income tax expense (or benefit) from continuing operations and the amount computed by multiplying the income (or loss) from continuing operations before income taxes by the applicable statutory federal (national) income tax rate of the jurisdiction (country) of domicile. If the public business entities is not domiciled in the United States, the federal (national) income tax rate in such entity’s jurisdiction (country) of domicile shall normally be used in the rate reconciliation. The amendments prohibit the use of different income tax rates for subsidiaries or segments. Further, public business entities that use an income tax rate in the rate reconciliation that is other than the U.S. income tax rate must disclose the rate used and the basis for using it. The ASU also adds ASC 740-10-50-12A, which requires entities to annually disaggregate the income tax rate reconciliation between the following eight categories by both percentages and reporting currency amounts: 1. State and local income tax, net of federal (national) income tax effect, 2. Foreign tax effects, 3. Effect of changes in tax laws or rates enacted in the current period, 4. Effect of cross-border tax laws, 5. Tax credits, 6. Changes in valuation allowances, 7. Nontaxable or nondeductible items, 8. Changes in unrecognized tax benefits. Public business entities must apply the ASU’s guidance to annual periods beginning after December 15, 2024. Early adoption is permitted. Entities may apply the amendments prospectively or may elect retrospective application. The Group does not expect the adoption of this ASU will have a significant impact on its 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 = RMB7.0999, on December 29, 2023, 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 29, 2023, or at any other rate.

LEASES - Supplemental cash flow information related to leases (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Supplemental disclosure of cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	¥ 4,440	¥ 3,295
Cash paid for amounts included in the measurement of finance lease liabilities	68	106
Non-cash right-of-use assets obtained in exchange for operating lease liabilities	343	1,010
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 exchange for finance lease liabilities, net of reassessment of finance lease payments	¥ 361
Non-cash right-of-use assets obtained in acquisition for operating lease		171
Non-cash lease liabilities obtained in acquisition for operating lease		¥ 144

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY

12 Months Ended

Dec. 31, 2023

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,
	2022	2023	2023
			US$’ in millions
			(Note 2)
Assets
Current assets:
Cash and cash equivalents	1,204	4,382	617
Short-term investments	87	576	81
Other current assets	8	24	3
Total current assets	1,299	4,982	701
Investment in and amount due from subsidiaries	12,390	15,760	2,220
Total assets	13,689	20,742	2,921
Liabilities and equity
Current liabilities:
Short-term debt	453	3,537	498
Dividends payable	—	2,085	294
Amount due to subsidiaries	858	2,897	408
Accrued expenses and other current liabilities	181	88	12
Total current liabilities	1,492	8,607	1,212
Long-term debt	3,463	—	—
Other non-current liabilities	5	—	—
Total liabilities	4,960	8,607	1,212
Equity:
Ordinary shares (US$0.00001 par value per share; 80,000,000,000 shares authorized; 3,265,433,590 and 3,210,392,530 shares issued as of December 31, 2022 and 2023, and 3,112,413,730 and 3,159,046,350 shares outstanding as of December 31, 2022 and 2023, respectively)	0	0	0
Treasury shares (153,019,860 and 51,346,180 shares as of December 31, 2022 and 2023, respectively)	(441)	(906)	(128)
Additional paid-in capital	10,138	11,861	1,671
Retained earnings	(1,200)	794	112
Accumulated other comprehensive income	232	386	54
Total equity	8,729	12,135	1,709
Total liabilities and equity	13,689	20,742	2,921

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,
	2021	2022	2023	2023
				US$’ in millions
				(Note 2)
Operating costs and expenses:
General and administrative expenses	110	93	154	22
Total operating costs and expenses	110	93	154	22
Loss from operations	(110)	(93)	(154)	(22)
Interest income	8	15	69	10
Interest expense	128	130	122	17
Foreign exchange loss	(3)	(223)	(108)	(16)
Other income, net	15	6	61	9
Loss from fair value changes of equity securities, net	(2)	(1)	(15)	(2)
(Loss) income in investment in subsidiaries	(245)	(1,395)	4,354	613
Net (loss) income attributable to H World Group Limited	(465)	(1,821)	4,085	575

Other comprehensive (loss) income, net of tax	(86)	191	154	22
Comprehensive (loss) income	(551)	(1,630)	4,239	597

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,
	2021	2022	2023	2023
				US$’ in millions
				(Note 2)
Net cash provided by (used in) operating activities	9	(136)	(133)	(21)
Investing activities:
Loans to subsidiaries	(1,050)	(750)	(987)	(139)
Repayment of loans by subsidiaries	—	4,165	2,061	290
Purchase of investments	(34)	—	(803)	(113)
Proceeds from maturity/sale of investments	—	—	301	42
Net cash (used in) provided by investing activities	(1,084)	3,415	572	80
Financing activities:
Proceeds from issuance of ordinary shares in Hong Kong public offering	—	—	1,973	278
Proceeds from termination of Capped Call	—	86	—	—
Payment of ordinary share issuance costs	(15)	(0)	(9)	(1)
Net settlement on shares repurchased for withholding taxes related to share-based awards	50	—	—	—
Payment of repurchases of ordinary shares	(0)	(334)	(848)	(119)
Loans from subsidiaries	—	798	2,574	364
Repayment of loans from subsidiaries	—	—	(540)	(76)
Net proceeds from issuance of ordinary shares upon exercise of option	1	—	—	—
Proceeds from short-term bank borrowings	—	453	—	—
Repayment of short-term bank borrowings	—	—	(439)	(62)
Repayment of convertible senior notes	(0)	(3,406)	(0)	(0)
Dividends paid	—	(416)	—	—
Net cash provided by (used in) financing activities	36	(2,819)	2,711	384
Effect of exchange rate changes on cash and cash equivalents	(272)	163	28	4
Net (decrease) increase in cash and cash equivalents	(1,311)	623	3,178	447
Cash, cash equivalents at the beginning of the year	1,892	581	1,204	170
Cash, cash equivalents at the end of the year	581	1,204	4,382	617

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, 2023, 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.

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2023

INVESTMENTS.

Schedule of investments


	As of December 31,
	2022	2023
Short-term investments
Equity securities with readily determinable fair values:
Accor Hotels (“Accor”)	1,701	—
Other marketable securities	87	231
Subtotal	1,788	231
Held to maturity investments
Bank time deposits and financial products	—	1,958
Total	1,788	2,189

Long-term investments
Equity securities without readily determinable fair values:
Cjia Group-preferred shares	138	99
Oravel Stays Private limited (“OYO”)	54	54
Other equity securities without readily determinable fair values	65	29
Subtotal	257	182
Equity-method investments:
AAPC LUB	494	490
Hotel related funds	574	479
Other investments	324	320
Subtotal	1,392	1,289
Available-for-sale debt securities:
Cjia Group-convertible notes	296	281
Held to maturity investments
Bank time deposits	—	812
Total	1,945	2,564

DEBT

12 Months Ended

Dec. 31, 2023

DEBT

DEBT

10.DEBT

The short-term and long-term debt as of December 31, 2022 and 2023 were as follows:


	As of December 31,
	2022	2023
Short-term debt:
Long-term bank borrowings, current portion	208	125
Short-term bank borrowings	3,035	329
Convertible senior notes, current portion	—	3,537
FF&E liability, current portion	45	58
Total	3,288	4,049

Long-term debt:
Long-term bank borrowings, non-current portion	2,929	1,050
Convertible senior notes, non-current portion	3,463	—
FF&E liability, non-current portion	228	199
Others	15	16
Total	6,635	1,265

Bank borrowings

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% to - 0.2% per annum. There are some financial covenants including interest cover, leverage and book equity related to this facility. The Group was fully in compliance with the amended covenants for the years ended December 31, 2022 and 2023. In 2022, the Group had drawn down EUR220 million, RMB equivalent of EUR110 million and EUR70 million under the facility agreement, among which, the Group repaid EUR220 million, RMB equivalent of EUR6 million and EUR70 million for the year ended December 31, 2023. For the years ended December 31, 2022 and 2023, the weighted average interest rate of borrowings drawn under this agreement was 3.01% and 3.59%, respectively.

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.The Company had subsequently redeemed US$475 million of 2022 Notes on November 1, 2022.

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.

During the year ended December 31, 2023, RMB0.01 of the 2026 Notes had been converted into 24 ADSs upon the holders’ request. As of December 31, 2023, the Group reclassified the 2026 Notes as short - term debt as the 2026 Notes holders have a put option which can be exercised within one year.

Debt Maturities

The contractual maturities of the Group’s debt as of December 31, 2023 were as follows:


Year Ending December 31,		Principal Amounts
2024		4,053
2025		787
2026		342
2027		33
2028		25
Thereafter		79
Total		5,319

- 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://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

PROPERTY AND EQUIPMENT, NET - Schedule (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Cost:
Property and equipment, gross	¥ 14,294		¥ 14,318
Less: Accumulated depreciation	8,456		7,727
Property and equipment net excluding construction in process	5,838		6,591
Construction in progress	259		193
Property and equipment, net	6,097	$ 859	6,784
Buildings
Cost:
Property and equipment, gross	791		843
Leasehold improvements
Cost:
Property and equipment, gross	11,053		10,952
Furniture, fixtures and equipment
Cost:
Property and equipment, gross	2,448		2,520
Motor vehicles
Cost:
Property and equipment, gross	¥ 2		¥ 3

DEBT - Bank borrowings (Details) - EUR (€) € in Millions	1 Months Ended	12 Months Ended
DEBT - Bank borrowings (Details) - EUR (€) € in Millions	Aug. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Maximum
Debt
Percentage points added to the reference rate			0.20%
Euro
Debt
Percentage points added to the reference rate	1.55%
RMB \| Minimum
Debt
Percentage points added to the reference rate	(0.15%)
Bank borrowings entered in August 2022
Debt
Weighted average interest rate (as a percent)		3.59%	3.01%
Long-term facility entered in August 2022
Debt
Maximum borrowing amount	€ 220
Term of debt instrument	3 years
Credit facility drawn down amount			€ 220
Repayment of line of credit facility		€ 220
Term facility entered in August 2022 \| RMB
Debt
Maximum borrowing amount	€ 110
Credit facility drawn down amount			110
Repayment of line of credit facility		6
Revolving credit facility entered in August 2022
Debt
Maximum borrowing amount	€ 70
Term of debt instrument	35 months
Credit facility drawn down amount			€ 70
Repayment of line of credit facility		€ 70

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME € in Millions, ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥) ¥ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares
Revenues:
Total revenues	¥ 21,882	$ 3,082	¥ 13,862	¥ 12,785
Operating costs and expenses:
Hotel operating costs	14,341	2,021	12,260	11,282
Other operating costs	34	5	62	58
Selling and marketing expenses	1,072	151	613	641
General and administrative expenses	2,086	294	1,675	1,545
Pre-opening expenses	35	5	95	81
Total operating costs and expenses	17,568	2,476	14,705	13,607
Goodwill impairment loss	4	1
Other operating income, net	404	57	549	986
Income (loss) from operations	4,714	662	(294)	164
Interest income	248	35	87	89
Interest expense	385	54	409	405
Other income, net	573	81	10	157
(Loss) gains from fair value changes of equity securities, net	109	15	(359)	(96)
Foreign exchange (loss) gain, net	90	13	(641)	(317)
(Loss) income before income taxes	5,349	752	(1,606)	(408)
Income tax expense	1,204	168	207	12
Loss from equity method investments	(14)	(2)	(36)	(60)
Net (loss) income	4,131	582	(1,849)	(480)
Less: net (loss) income attributable to noncontrolling interest	46	7	(28)	(15)
Net (loss) income attributable to H World Group Limited	4,085	575	(1,821)	(465)
Other comprehensive (loss) income
Gain (loss) arising from defined benefit plan, net of tax of RMB 4,RMB 10 and RMB(3) for the year ended 2021, 2022 and 2023, respectively	(9)	(1)	22	13
Gains (loss) from fair value changes of debt securities, net of tax of nil, RMB 19 and RMB(3) for 2021,2022 and 2023, respectively	(12)	(2)	57
Foreign currency translation adjustments, net of tax of nil for the years ended 2021, 2022 and 2023, respectively	175	25	112	(99)
Comprehensive (loss) income	4,285	604	(1,658)	(566)
Less: comprehensive (loss) income attributable to the noncontrolling interest	46	7	(28)	(15)
Comprehensive (loss) income attributable to H World Group Limited	¥ 4,239	$ 597	¥ (1,630)	¥ (551)
(Losses) earnings per share:
Basic \| (per share)	¥ 1.28	$ 0.18	¥ (0.59)	¥ (0.15)
Diluted \| (per share)	¥ 1.25	$ 0.18	¥ (0.59)	¥ (0.15)
Weighted average number of shares used in computation:
Basic (in shares)	3,183,163,131	3,183,163,131	3,111,196,757	3,114,124,244
Diluted (in shares)	3,351,421,211	3,351,421,211	3,111,196,757	3,114,124,244
Leased and owned hotels
Revenues:
Total revenues	¥ 13,796	$ 1,943	¥ 9,148	¥ 8,118
Manachised and franchised hotels
Revenues:
Total revenues	7,694	1,084	4,405	4,404
Others
Revenues:
Total revenues	¥ 392	$ 55	¥ 309	¥ 263

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - BALANCE SHEETS (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Nov. 29, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Mar. 03, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 6,946	$ 978		¥ 3,583		¥ 5,116
Short-term investments	2,189	308		1,788
Other current assets	949	134		809
Total current assets	12,056	1,698		9,178
Total assets	63,532	8,948		61,507
Current liabilities:
Short-term debt	4,049	570		3,288
Dividends payable	2,085	294	¥ 2,085		¥ 416
Amount due to subsidiaries	77	11		71
Accrued expenses and other current liabilities	3,261	459		2,337
Total current liabilities	17,411	2,450		13,146
Long-term debt	1,265	179		6,635
Other non-current liabilities	1,118	157		977
Total liabilities	51,283	7,223		52,704
Equity:
Ordinary shares (US$0.00001 par value per share; 80,000,000,000 shares authorized; 3,265,433,590 and XXX shares issued as of December 31, 2022 and 2023, and 3,112,413,730 and XXX shares outstanding as of December 31, 2022 and 2023, respectively)	0	0		0
Treasury shares (153,019,860 and XXX shares as of December 31, 2022 and 2023, respectively)	(906)	(128)		(441)
Additional paid-in capital	11,861	1,671		10,138
Retained earnings	794	112		(1,200)
Accumulated other comprehensive income	386	54		232
Total equity	12,135	1,709		8,729
Total liabilities and equity	63,532	8,948		61,507
Parent Company
Current assets:
Cash and cash equivalents	4,382	617		1,204
Short-term investments	576	81		87
Other current assets	24	3		8
Total current assets	4,982	701		1,299
Investment in and amount due from subsidiaries	15,760	2,220		12,390
Total assets	20,742	2,921		13,689
Current liabilities:
Short-term debt	3,537	498		453
Dividends payable	2,085	294
Amount due to subsidiaries	2,897	408		858
Accrued expenses and other current liabilities	88	12		181
Total current liabilities	8,607	1,212		1,492
Long-term debt				3,463
Other non-current liabilities				5
Total liabilities	8,607	1,212		4,960
Equity:
Ordinary shares (US$0.00001 par value per share; 80,000,000,000 shares authorized; 3,265,433,590 and XXX shares issued as of December 31, 2022 and 2023, and 3,112,413,730 and XXX shares outstanding as of December 31, 2022 and 2023, respectively)	0	0		0
Treasury shares (153,019,860 and XXX shares as of December 31, 2022 and 2023, respectively)	(906)	(128)		(441)
Additional paid-in capital	11,861	1,671		10,138
Retained earnings	794	112		(1,200)
Accumulated other comprehensive income	386	54		232
Total equity	12,135	1,709		8,729
Total liabilities and equity	¥ 20,742	$ 2,921		¥ 13,689

INCOME TAXES - Narratives (Details) ¥ in Millions, $ in Millions	12 Months Ended								24 Months Ended
	Dec. 31, 2024	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2024	Dec. 31, 2020
Income tax
Effective tax rate (in %)		25.00%	25.00%	25.00%	25.00%
Percentage of reduction for the first RMB 3 million of taxable income (in %)									75.00%
Income (loss) before income taxes
(Loss) income before income taxes		¥ 5,349	$ 752	¥ (1,606)	¥ (408)
China
Income tax
Effective tax rate (in %)		25.00%	25.00%	25.00%	25.00%
Preferential income tax rate (in %)		20.00%	20.00%
Percentage of reduction for the first RMB 1 million of taxable income (in %)				87.50%	87.50%					75.00%
Percentage of reduction for annual taxable income between RMB 1 million and 3 million (in %)				75.00%	50.00%					50.00%
Income (loss) before income taxes
PRC including Hong Kong and Taiwan		¥ 5,833		¥ (483)	¥ 617
Germany
Income tax
Effective tax rate (in %)		15.00%	15.00%
Effective income tax rate including solidarity surcharge (in %)		15.825%	15.825%
Income (loss) before income taxes
Income taxes foreign		¥ (463)		(410)	(632)
Germany \| Minimum
Income tax
Municipal Trade Tax (in %)		7.00%	7.00%
Germany \| Maximum
Income tax
Municipal Trade Tax (in %)		21.00%	21.00%
Other than China and Germany
Income (loss) before income taxes
Income taxes foreign		¥ (21)		¥ (713)	¥ (393)
Other than China and Germany \| Minimum
Income tax
Effective tax rate (in %)		9.00%	9.00%
Other than China and Germany \| Maximum
Income tax
Effective tax rate (in %)		25.00%	25.00%
Jizhu Shanghai \| China
Income tax
Effective tax rate (in %)		15.00%	15.00%	15.00%	15.00%	15.00%	15.00%	15.00%
H-World Information \| China
Income tax
Effective tax rate (in %)					15.00%	15.00%	15.00%
Preferential income tax rate (in %)	15.00%	15.00%	15.00%	15.00%

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2023

GOODWILL.

Schedule of changes in the carrying amount of goodwill


	Legacy Huazhu	Legacy DH	Total
Balance at January 1, 2022
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
Impairment loss recognized during the year	—	(4)	(4)
Net foreign exchange-goodwill	—	151	151
Net foreign exchange-impairment loss	—	(24)	(24)
Balance at December 31, 2023
Goodwill	3,036	2,721	5,757
Accumulated impairment loss	(4)	(435)	(439)
	3,032	2,286	5,318

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

CASH DIVIDEND (Details) $ / shares in Units, ¥ in Millions, $ in Millions	Nov. 29, 2023 CNY (¥) $ / shares	Mar. 03, 2022 CNY (¥) $ / shares	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)
Cash Dividend
Dividends payable	¥ 2,085	¥ 416	¥ 2,085	$ 294
Ordinary Shares
Cash Dividend
Cash dividends declared (in $ per share)	¥ 0.093	¥ 0.021
ADR [Member]
Cash Dividend
Cash dividends declared (in $ per share)	¥ 0.93

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2023

EMPLOYEE BENEFIT PLANS

Schedule of amounts recognized in the consolidated balance sheets


	As of December 31,
	2022	2023
Salary and welfare payables	10	12
Retirement benefit obligation	110	124
Liability in the balance sheet	120	136

INVESTMENTS

12 Months Ended

Dec. 31, 2023

INVESTMENTS.

INVESTMENTS

7.INVESTMENTS

The investments as of December 31, 2022 and 2023 were as follows:


	As of December 31,
	2022	2023
Short-term investments
Equity securities with readily determinable fair values:
Accor Hotels (“Accor”)	1,701	—
Other marketable securities	87	231
Subtotal	1,788	231
Held to maturity investments
Bank time deposits and financial products	—	1,958
Total	1,788	2,189

Long-term investments
Equity securities without readily determinable fair values:
Cjia Group-preferred shares	138	99
Oravel Stays Private limited (“OYO”)	54	54
Other equity securities without readily determinable fair values	65	29
Subtotal	257	182
Equity-method investments:
AAPC LUB	494	490
Hotel related funds	574	479
Other investments	324	320
Subtotal	1,392	1,289
Available-for-sale debt securities:
Cjia Group-convertible notes	296	281
Held to maturity investments
Bank time deposits	—	812
Total	1,945	2,564

In 2022, the Group recognized loss from fair value changes of Accor of RMB358. In 2023, the Group sold all the Accor shares for a cash consideration of RMB2,198 with a gain of RMB516 realized upon disposal.

REVENUE (Tables)

12 Months Ended

Dec. 31, 2023

REVENUE

Schedule of disaggregated revenues


	Years Ended December 31,
	2021	2022	2023
Room revenues	7,024	7,571	11,789
Food and beverage revenues	694	1,049	1,333
Others	400	528	674
Leased and owned hotel revenues	8,118	9,148	13,796
Initial one-time license/franchise fee	109	106	114
On-going management and service/royalty fees	1,479	1,375	2,785
Central reservation system usage fees, other system maintenance and support fees	1,399	1,262	2,628
Reimbursements for hotel manager fees	897	1,103	1,400
Other fees	520	559	767
Manachised and franchised hotel revenues	4,404	4,405	7,694
Other revenues	263	309	392
Total revenues	12,785	13,862	21,882

Schedule of contract balances


	As of December 31,
	2022	2023
Current contract liabilities	1,308	1,637
Long-term contract liabilities	828	1,072
Total contract liabilities	2,136	2,709

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0
Income (Loss) arising from defined benefit plan, tax	(3)	10	4
Gains (losses) from fair value changes of debt securities, tax	¥ (3)	¥ 19	¥ 0

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2023

SHARE-BASED COMPENSATION

Summary of significant assumptions used to estimate the fair value of stock options


	2023
Suboptimal exercise factor	2.80
Risk-free interest rate	3.61	%
Volatility	49.31	%
Dividend yield	0.80	%
Life of option	10 years

Summary of the Group's share option activity under the option plans


			Weighted
		Weighted	Average	Aggregate
	Number of	Average	Remaining	Intrinsic
	Options	Exercise Price	Contractual Life	Value
		US$	Years	US$’million
Share options outstanding at January 1, 2023	—	—	—	—
Granted	28,625,350	2.80	—	—
Adjusted for performance conditions	(106,250)	2.80	—	—
Share options outstanding at December 31, 2023	28,519,100	2.80	9.41	16
Share options vested or expected to vest at December 31, 2023	26,429,100	2.80	9.41	14
Share options exercisable at December 31, 2023	—	—	—	—

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, 2023	76,939,150	1.88
Granted	31,881,420	3.67
Forfeited	(2,070,020)	1.62
Vested	(10,033,350)	1.56
Adjusted for performance conditions	(1,655,900)	0.70
Nonvested restricted stocks outstanding at December 31, 2023	95,061,300	2.54

Schedule of share-based compensation expense recognized


	Years Ended December 31,
	2021	2022	2023
Hotel operating costs	39	33	31
Selling and marketing expenses	4	4	6
General and administrative expenses	66	50	106
Total	109	87	143

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2023

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

14.SHARE-BASED COMPENSATION

In September 2009, the Group adopted the 2009 Share Incentive Plan which allows the Group to offer incentive awards to employees, officers, directors and consultants or advisors (the “Participants”). Under the 2009 Share Incentive Plan, the Group may issue incentive awards 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. In June 2023, the Group adopted the 2023 Share Incentive Plan (collectively with 2009 Share Incentive Plan, the “Incentive Award Plans”) , which allows the Group to offer incentive awards up to 20,000,000 ordinary shares to Participants. 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, 2023, the Group had granted a total of 274,295,790 options and 308,146,910 nonvested restricted stocks in total, which were subject to adjustment on performance condition.

Share options

In 2023, the Group granted 28,625,350 share options to senior officers, which was in five tranches with performance conditions, and the vesting of each of the five tranches commences respectively at the first, second, third, fourth, and fifth anniversary of grant date. Each tranche is accounted for as a separate award with the same grant date, the same service inception date and its own requisite service period. The actual number of share options that could be exercised is contingent on certain financial performance of the year when vesting of share option commences. The Group reassesses the performance condition at each reporting period for true up. For each tranche, 50% vests on the second anniversary of the stated vesting commencement date with the remaining 50% vesting ratably over the following two years and will become exercisable if certain performance conditions are met for the five - year period ending December 31, 2027.

The weighted - average grant date fair value for options granted during the year ended December 31, 2023 was US$2.22 per share, computed using the binomial option pricing model. The binomial option pricing model requires the input of subjective assumptions including the expected stock price volatility and the expected price multiple at which employees are likely to exercise stock options. The Group uses historical data to estimate forfeiture rate. Expected volatilities are based on the average historical equity volatility of the Group. The risk - free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

The fair value of stock options was estimated using the following significant assumptions:


	2023
Suboptimal exercise factor	2.80
Risk-free interest rate	3.61	%
Volatility	49.31	%
Dividend yield	0.80	%
Life of option	10 years

The following table summarized the Group’s share option activity under the option plans:


			Weighted
		Weighted	Average	Aggregate
	Number of	Average	Remaining	Intrinsic
	Options	Exercise Price	Contractual Life	Value
		US$	Years	US$’million
Share options outstanding at January 1, 2023	—	—	—	—
Granted	28,625,350	2.80	—	—
Adjusted for performance conditions	(106,250)	2.80	—	—
Share options outstanding at December 31, 2023	28,519,100	2.80	9.41	16
Share options vested or expected to vest at December 31, 2023	26,429,100	2.80	9.41	14
Share options exercisable at December 31, 2023	—	—	—	—

Given the actual number of share options that could be exercised is contingent on certain financial performance of the year when vesting commences, the share - based compensation expenses related to these options would be recognized when the financial performance is expected to be met. The Group didn’t record any compensation expenses relating to options awarded indexed to financial performance beyond the year ended December 31, 2023. The total share based compensation expenses relating to these options was RMB337.

As of December 31, 2023, there was RMB68 in total unrecognized compensation expense related to the option arrangements, which is expected to be recognized over a weighted - average period of 3.41 years.

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 2021, 2022 and 2023, the Group granted nil, 31,683,100 and nil 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.

In 2023, the Group granted 28,625,350 nonvested restricted stocks to senior officers, each was in five tranches with performance conditions, and the vesting of each of the five tranches commences respectively at the first, second, third, fourth, and fifth anniversary of grant date. Each tranche is accounted for as a separate award with the same grant date, the same service inception date and its own requisite service period. The actual number of nonvested restricted stocks that could vest is contingent on certain financial performance of the year when vesting commences. 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 share - based compensation expenses related to these nonvested restricted stocks would be recognized when the financial performance is expected to be met. The Group didn’t record any compensation expenses relating to incentive shares which are indexed to financial performance beyond the year ended December 31, 2023.

The following table summarized the Group’s nonvested restricted stock activities in 2023.


		Weighted Average Grant
	Number of Restricted	Date
	Stocks	Fair Value
		US$
Nonvested restricted stocks outstanding at January 1, 2023	76,939,150	1.88
Granted	31,881,420	3.67
Forfeited	(2,070,020)	1.62
Vested	(10,033,350)	1.56
Adjusted for performance conditions	(1,655,900)	0.70
Nonvested restricted stocks outstanding at December 31, 2023	95,061,300	2.54

As of December 31, 2023, there was RMB891 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.

The total fair value of nonvested restricted stocks vested in 2021, 2022 and 2023 was RMB389, RMB234 and RMB286, respectively.

For the years ended December 31, 2021, 2022 and 2023, the Group recognized share-based compensation expenses of RMB109, RMB87 and RMB143, respectively, which were classified as follows:


	Years Ended December 31,
	2021	2022	2023
Hotel operating costs	39	33	31
Selling and marketing expenses	4	4	6
General and administrative expenses	66	50	106
Total	109	87	143

RELATED PARTY TRANSACTIONS AND BALANCES

12 Months Ended

Dec. 31, 2023

RELATED PARTY TRANSACTIONS AND BALANCES

22.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 Shareholder of the Group
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
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
Huamai (Guangzhou) Hotel Management Co., Ltd. (“Huamai”)	Hotel management company	Equity method investee of the Group
Azure Hospitality Fund I Limited Partnership (LLP) (“Azure”)	Fund	Equity method investee of the Group

(a) Related party balances

Amounts due from related parties consist of the following:


	As of December 31,
	2022	2023
Trip.com	73	174
Lianquan	46	45
Huamai	—	22
Zhuchuang	24	14
Cjia Group	28	9
Sheen Star	29	—
Others	21	34
Allowance for expected credit losses	(37)	(63)
Total	184	235

Amounts due to related parties consist of the following:


	As of December 31,
	2022	2023
Trip.com	38	48
Cjia Group	26	16
Others	7	13
Total	71	77

(b) Related party transactions

During the years ended December 31, 2021, 2022 and 2023, significant related party transactions were as follows:


	Years Ended December 31,
	2021	2022	2023
Commission expenses to Trip.com	99	55	260
Lease expenses to Trip.com	19	19	19
Lease expenses to Cjia Group	12	31	37
Service fee to Huali Jinshi	42	—	—
Brand use fee, reservation fee and other related service fee to Accor	22	—	—
Goods sold and service provided to Cjia Group	11	4	17
Loan payment to Hitone	5	—	—
Service fee from Trip.com	62	93	112
Service fee from Accor	3	—	—
Service fee from Sheen Star	5	4	5
Service fee from Azure	—	5	17
Sublease income from Lianquan	10	12	10
Sublease income from Cjia Group	6	5	5
Interest income from Sheen Star	—	—	10
Business acquisition of CitiGO from Cjia Group	783	—	—
Business acquisition of one individual company from Cjia Group	51	—	—

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

INCOME TAXES - Deferred income tax assets and liabilities (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Net loss carryforward	¥ 1,289	¥ 1,678
Deferred revenue	454	349
Long-term assets	399	303
Bad debt provision	80	59
Accrued payroll		41
Accrued payroll	(10)
Other accrued expenses	74
Other accrued expenses		(9)
Share-based compensation	33	31
Others	198	150
Valuation allowance	(675)	(731)	¥ (466)
Total deferred tax assets	1,842	1,871
Deferred tax liabilities:
Fair value adjustment for Building, land use rights and identified intangible assets due to acquisition	1,593	1,596
Others	51	40
Total deferred tax liabilities	1,644	1,636
Net deferred tax assets	198	235
Analysis as:
Deferred tax assets	1,043	1,093
Deferred tax liabilities	845	858
Net deferred tax assets	198	235
Movement of the valuation allowance
Balance at the beginning of the year	(731)	(466)	(369)
Provided	(145)	(338)	(151)
Reversed	165	41	37
Written off	36	32	17
Balance at the end of the year	¥ (675)	¥ (731)	¥ (466)

INVESTMENTS - Schedule (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Investments
Equity securities with readily determinable fair values	¥ 231		¥ 1,788
Bank time deposits and financial products	1,958
Total short-term investments	2,189	$ 308	1,788
Equity securities without readily determinable fair values	182		257
Equity-method investments	1,289		1,392
Bank time deposits	812
Total long-term investments	2,564	$ 361	1,945
Accor Hotels ("Accor")
Investments
Equity securities with readily determinable fair values			1,701
Other marketable securities
Investments
Equity securities with readily determinable fair values	231		87
Cjia/Cjia Group
Investments
Equity securities without readily determinable fair values	99		138
Available-for-sale debt securities	281		296
Oravel Stays Private limited ("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	29		65
AAPC LUB
Investments
Equity-method investments	490		494
Hotel related funds
Investments
Equity-method investments	479		574
Other investments
Investments
Equity-method investments	¥ 320		¥ 324

SHARE-BASED COMPENSATION - Plan (Details) - shares	12 Months Ended
SHARE-BASED COMPENSATION - Plan (Details) - shares	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2015	Aug. 31, 2010	Sep. 30, 2009
Incentive Award Plans
SHARE-BASED COMPENSATION
Vesting period	10 years
Incentive Award Plans \| Maximum
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)	274,295,790
Incentive Award Plans \| Restricted stocks
SHARE-BASED COMPENSATION
Share-based payment award, nonvested restricted stocks (in shares)	308,146,910
Incentive Award Plans \| Vesting on the second anniversary
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
2009 Global Share Plan
SHARE-BASED COMPENSATION
Share-based payment award, maximum number of incentive award available (in shares)		20,000,000	430,000,000	150,000,000	30,000,000

HOTEL OPERATING COSTS

12 Months Ended

Dec. 31, 2023

HOTEL OPERATING COSTS.

HOTEL OPERATING COSTS

12.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,
	2021	2022	2023
Rents	3,900	3,927	4,290
Utilities	507	603	685
Personnel costs	3,022	3,683	4,684
Depreciation and amortization	1,413	1,414	1,329
Consumable, food and beverage	969	1,026	1,327
Others	1,471	1,607	2,026
Total	11,282	12,260	14,341

ORGANIZATION AND PRINCIPAL ACTIVITIES

12 Months Ended

Dec. 31, 2023

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 (“Deutsche Hospitality” or “DH”) which was renamed as Steigenberger Hotels GmbH. 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.

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, 2022 and 2023, the Group had 704 and 691 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, 2022 and 2023, the Group had 7,617 and 8,526 manachised hotels in operation and 222 and 177 franchised hotels in operation, respectively.

COMMITMENTS AND CONTINGENCIES (Details) ¥ in Millions	Dec. 31, 2023 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	¥ 243
Accrued contingent liabilities	¥ 0

SHARE-BASED COMPENSATION - Share options (Details) $ / shares in Units, ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥) tranche $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Weighted Average Exercise Price
Adjusted for performance conditions (in dollars per shares)	$ 2.80
Share options
Number of Options
Granted (in shares) \| shares	28,625,350
Adjusted for performance conditions (in shares) \| shares	(106,250)
Share options outstanding at the end of the period (in shares) \| shares	28,519,100
Share options vested or expected to vest (in shares) \| shares	26,429,100	26,429,100
Weighted Average Exercise Price
Granted (in dollars per shares)	$ 2.80
Share options outstanding at the end of the period (in dollars per shares)	$ 2.80
Share options vested or expected to vest (in dollars per shares)		$ 2.80
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value
Share options outstanding, Weighted Average Remaining Contractual Life (in years)	9 years 4 months 28 days
Share options vested or expected to vest, Weighted Average Remaining Contractual Life (in years)	9 years 4 months 28 days
Aggregate Intrinsic Value
Share options outstanding, Aggregate intrinsic value \| $		$ 16
Share options vested or expected to vest, Aggregate intrinsic value \| $		$ 14
Number of tranches \| tranche	5
Total unrecognized compensation expense \| ¥	$ 68
Weighted-average recognition period of compensation expense (in years)	3 years 4 months 28 days
Weighted-average grant date fair value	$ 2.22
Vesting on the second anniversary \| Share options
Aggregate Intrinsic Value
Share-based payment award, vesting percentage	50.00%
Vesting ratably over the following two years \| Share options
Aggregate Intrinsic Value
Share-based payment award, vesting percentage	50.00%
Period for remaining percentage vested	2 years

SHARE-BASED COMPENSATION - Nonvested restricted stocks (Details) ¥ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥) tranche shares	Dec. 31, 2023 CNY (¥) $ / shares	Dec. 31, 2022 CNY (¥) tranche shares	Dec. 31, 2021 CNY (¥) tranche shares
Weighted Average Grant Date Fair Value
Recognized share-based compensation expenses \| ¥	¥ 143		¥ 87	¥ 109
Restricted stocks
Number of Restricted Stocks
Nonvested restricted stocks outstanding at the beginning of the period (in shares)	76,939,150
Granted (in shares)	31,881,420
Forfeited (in shares)	(2,070,020)
Vested (in shares)	(10,033,350)
Adjusted for performance conditions (in shares)	(1,655,900)
Nonvested restricted stocks outstanding at the end of the period (in shares)	95,061,300		76,939,150
Weighted Average Grant Date Fair Value
Nonvested restricted stocks outstanding at the beginning of the period (in dollars per shares) \| $ / shares		$ 1.88
Granted (in dollars per shares) \| $ / shares		3.67
Forfeited (in dollars per shares) \| $ / shares		1.62
Vested (in dollars per shares) \| $ / shares		1.56
Adjusted for performance conditions (in dollars per share) \| $ / shares		0.70
Nonvested restricted stocks outstanding at the end of the period (in dollars per shares) \| $ / shares		$ 2.54
Total unrecognized compensation expense \| ¥	¥ 891	$ 891
Weighted-average period for recognition of unrecognized compensation costs	3 years 7 months 13 days
Total fair value of nonvested restricted stocks, vested \| ¥	¥ 286		¥ 234	¥ 389
Restricted stocks \| Performance Condition \| Senior officers and managers
Number of Restricted Stocks
Granted (in shares)	0		31,683,100	0
Weighted Average Grant Date Fair Value
Number of tranches \| tranche	10		10	10
Restricted stocks \| Performance Condition \| Senior officers
Number of Restricted Stocks
Granted (in shares)	28,625,350
Weighted Average Grant Date Fair Value
Number of tranches \| tranche	5
Restricted stocks \| Performance Condition \| Vesting on the second anniversary \| Senior officers and managers
Weighted Average Grant Date Fair Value
Share-based payment award, vesting percentage	50.00%
Restricted stocks \| Performance Condition \| Vesting on the second anniversary \| Senior officers
Weighted Average Grant Date Fair Value
Share-based payment award, vesting percentage	50.00%
Restricted stocks \| Performance Condition \| Vesting ratably over the following two years \| Senior officers and managers
Weighted Average Grant Date Fair Value
Period for remaining percentage vested	2 years
Share-based payment award, vesting percentage	50.00%
Restricted stocks \| Performance Condition \| Vesting ratably over the following two years \| Senior officers
Weighted Average Grant Date Fair Value
Period for remaining percentage vested	2 years
Share-based payment award, vesting percentage	50.00%
Share options
Weighted Average Grant Date Fair Value
Recognized share-based compensation expenses \| ¥	¥ 337

SEGMENT - Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill (Details) € in Millions, ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
SEGMENT
Revenues	€ 750	¥ 21,882	$ 3,082	¥ 13,862	¥ 12,785
Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill		44,705		48,473
China
SEGMENT
Revenues		17,393		10,637	11,231
Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill		28,762		31,684
Germany
SEGMENT
Revenues		3,324		2,458	1,263
Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill		12,504		13,501
Other than China and Germany
SEGMENT
Revenues		1,165		767	¥ 291
Property and equipment, net, intangible assets, net, right-of-use assets, land use rights, net and goodwill		¥ 3,439		¥ 3,288

- 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).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479557/942-235-S99-1

+ Details

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - STATEMENTS OF COMPREHENSIVE INCOME (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Operating costs and expenses:
General and administrative expenses	¥ 2,086	$ 294	¥ 1,675	¥ 1,545
Total operating costs and expenses	17,568	2,476	14,705	13,607
Loss from operations	4,714	662	(294)	164
Interest income	248	35	87	89
Interest expense	385	54	409	405
Foreign exchange gain (loss)	90	13	(641)	(317)
Other income, net	573	81	10	157
Net (loss) income attributable to H World Group Limited	4,085	575	(1,821)	(465)
Other comprehensive income
Foreign currency translation adjustments	175	25	112	(99)
Comprehensive (loss) income attributable to H World Group Limited	4,239	597	(1,630)	(551)
Parent Company
Operating costs and expenses:
General and administrative expenses	154	22	93	110
Total operating costs and expenses	154	22	93	110
Loss from operations	(154)	(22)	(93)	(110)
Interest income	69	10	15	8
Interest expense	122	17	130	128
Foreign exchange gain (loss)	(108)	(16)	(223)	(3)
Other income, net	61	9	6	15
Loss from fair value changes of equity securities, net	(15)	(2)	(1)	(2)
Income (loss) in investment in subsidiaries	4,354	613	(1,395)	(245)
Net (loss) income attributable to H World Group Limited	4,085	575	(1,821)	(465)
Other comprehensive income
Foreign currency translation adjustments	154	22	191	(86)
Comprehensive (loss) income attributable to H World Group Limited	¥ 4,239	$ 597	¥ (1,630)	¥ (551)

GOODWILL

12 Months Ended

Dec. 31, 2023

GOODWILL.

GOODWILL

8.GOODWILL

The changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2023 were as follows:


	Legacy Huazhu	Legacy DH	Total
Balance at January 1, 2022
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
Impairment loss recognized during the year	—	(4)	(4)
Net foreign exchange-goodwill	—	151	151
Net foreign exchange-impairment loss	—	(24)	(24)
Balance at December 31, 2023
Goodwill	3,036	2,721	5,757
Accumulated impairment loss	(4)	(435)	(439)
	3,032	2,286	5,318

As of December 31, 2022 and 2023, the estimated fair value of legacy Huazhu exceeded over 100% of its carrying value. As of December 31, 2022 and 2023, the estimated fair value of legacy DH exceeded its carrying value by approximately RMB769 and RMB490, which accounted for 25% and 17%of its carrying value, respectively. A 5% decline in the underlying projected cash flows or increase in the discount rate could not result in an impairment loss in 2022 and 2023.

LEASES - Supplemental Information Related to Operating Leases (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Lease cost:
Operating fixed lease cost	¥ 4,217	¥ 4,186
- Amortization of ROU assets	87	93
- Interest on lease liabilities	114	116
Variable lease cost	110	(144)
Total lease cost	¥ 4,528	¥ 4,251
Other information:
Weighted average remaining lease term, Operating leases (in years)	0 years	13 years
Weighted average remaining lease term, Finance leases (in years)	0 years	28 years
Weighted average discount rate, Operating leases (in %)	6.27%	6.28%
Weighted average discount rate, Finance leases (in %)	4.29%	3.98%

EARNINGS (LOSSES) PER SHARE

12 Months Ended

Dec. 31, 2023

EARNINGS (LOSSES) PER SHARE

EARNINGS (LOSSES) PER SHARE

15.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,
	2021	2022	2023
Net (loss) income attributable to ordinary shareholders — basic	(465)	(1,821)	4,085
Net (loss) income attributable to ordinary shareholders — diluted	(465)	(1,821)	4,205
Weighted average ordinary shares outstanding — basic	3,114,124,244	3,111,196,757	3,183,163,131
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method	—	—	44,331,080
Dilutive effect of convertible senior notes	—	—	123,927,000
Weighted average ordinary shares outstanding — diluted	3,114,124,244	3,111,196,757	3,351,421,211
Basic (losses) earnings per share	(0.15)	(0.59)	1.28
Diluted (losses) earnings per share	(0.15)	(0.59)	1.25

For the years ended December 31, 2021, 2022 and 2023, 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,
	2021	2022	2023
Outstanding employee options and nonvested restricted stocks	53,696,490	76,939,150	53,132,230
Shares of convertible senior notes	226,827,410	120,601,000	—
Total	280,523,900	197,540,150	53,132,230

In accordance with ASC Topic 470-20, although legally issued, the loaned ADSs in connection with the “2022 Notes” 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.

All these Loaned ADSs had been returned to the Company with the maturity of 2022 Notes on November 1, 2022 and was accounted for as an increase to the treasury shares.

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Property and equipment, net (Details)	Dec. 31, 2023
Leasehold improvements
Property and equipment, net
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration]	us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
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

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
PROPERTY AND EQUIPMENT, NET
Depreciation expense	¥ 1,276	¥ 1,312	¥ 1,352

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - CONDENSED STATEMENTS OF CASH FLOWS (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Adjustments to reconcile net income to net cash used in operating activities:
Net cash (used in) provided by operating activities	¥ 7,674	$ 1,080	¥ 1,564	¥ 1,342
Investing activities:
Proceeds from maturity/sale and return of investments	2,972	419	937	1,494
Net cash (used in) provided by investing activities	(1,477)	(207)	(522)	(1,402)
Financing activities:
Proceeds from termination of Capped Call			86
Payment of repurchases of ordinary shares	(848)	(119)	(334)	0
Proceeds from short-term bank borrowings	745	106	4,249	2,288
Repayment of short-term bank borrowings	(3,436)	(485)	(1,935)	(2,474)
Proceeds from long-term bank borrowings	350	49	2,797	53
Dividends paid			(416)
Net cash used in financing activities	(3,720)	(523)	(1,394)	(1,801)
Effect of exchange rate changes on cash and cash equivalents	164	22	297	(88)
Net (decrease) increase in cash and cash equivalents	2,641	372	(55)	(1,949)
Cash, cash equivalents and restricted cash at the beginning of the year	5,086	716	5,141	7,090
Cash, cash equivalents and restricted cash at the end of the year	7,710	1,086	5,086	5,141
Parent Company
Adjustments to reconcile net income to net cash used in operating activities:
Net cash (used in) provided by operating activities	(133)	(21)	(136)	9
Investing activities:
Loans to subsidiaries	(987)	(139)	(750)	(1,050)
Repayment of loans by subsidiaries	2,061	290	4,165
Purchase of short-term investments	(803)	(113)		(34)
Proceeds from maturity/sale and return of investments	301	42
Net cash (used in) provided by investing activities	572	80	3,415	(1,084)
Financing activities:
Proceeds from issuance of ordinary shares in Hong Kong public offering	1,973	278
Proceeds from termination of Capped Call			86
Payment of ordinary share issuance costs	(9)	(1)	0	(15)
Net settlement on shares repurchased for withholding taxes related to share-based awards				50
Payment of repurchases of ordinary shares	(848)	(119)	(334)	0
Loans from subsidiaries	2,574	364	798
Repayment of loans from subsidiaries	(540)	(76)
Net proceeds from issuance of ordinary shares upon exercise of option				1
Proceeds from short-term bank borrowings			453
Repayment of short-term bank borrowings	(439)	(62)
Repayment of convertible senior notes	0	0	(3,406)	0
Dividends paid			(416)
Net cash used in financing activities	2,711	384	(2,819)	36
Effect of exchange rate changes on cash and cash equivalents	28	4	163	(272)
Net (decrease) increase in cash and cash equivalents	3,178	447	623	(1,311)
Cash, cash equivalents and restricted cash at the beginning of the year	1,204	170	581	1,892
Cash, cash equivalents and restricted cash at the end of the year	¥ 4,382	$ 617	¥ 1,204	¥ 581

DEBT - Capped Call Options (Details) - Call Option $ in Millions	1 Months Ended
	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

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482900/835-30-50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (a)
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
-Section 55
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Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://www.xbrl.org/2003/role/exampleRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 11: http://www.xbrl.org/2003/role/exampleRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (f)
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Paragraph 1E
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Publisher FASB
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1F

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Publisher FASB
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

REVENUE

12 Months Ended

Dec. 31, 2023

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,
	2021	2022	2023
Room revenues	7,024	7,571	11,789
Food and beverage revenues	694	1,049	1,333
Others	400	528	674
Leased and owned hotel revenues	8,118	9,148	13,796
Initial one-time license/franchise fee	109	106	114
On-going management and service/royalty fees	1,479	1,375	2,785
Central reservation system usage fees, other system maintenance and support fees	1,399	1,262	2,628
Reimbursements for hotel manager fees	897	1,103	1,400
Other fees	520	559	767
Manachised and franchised hotel revenues	4,404	4,405	7,694
Other revenues	263	309	392
Total revenues	12,785	13,862	21,882

Contract Balances

The Group’s contract assets are insignificant at December 31, 2022 and 2023.


	As of December 31,
	2022	2023
Current contract liabilities	1,308	1,637
Long-term contract liabilities	828	1,072
Total contract liabilities	2,136	2,709

The contract liabilities balances above are classified as deferred revenue on the consolidated balance sheets, as of December 31, 2022 and 2023.

The Group recognized revenues that were previously deferred as contract liabilities of RMB655 and RMB686 during the years ended December 31, 2022 and 2023, 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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
-Paragraph 12
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-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2023

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	As of December 31,
	2022	2023
Payables to franchisees	652	1,150
Other payables	850	1,146
Accrued utilities and other accrued expenses	332	283
Liabilities related to customer loyalty program	166	264
Value-added tax, other tax and surcharge payables	234	337
Advance from noncontrolling interest holders	103	81
Total	2,337	3,261

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Intangible assets (Details)	Dec. 31, 2023
Minimum \| Manachised and franchised hotels
Finite-Lived Intangible Assets [Line Items]
Remaining contract terms	10 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 \| 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

INTANGIBLE ASSETS, NET - Schedule (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥) item	Dec. 31, 2023 USD ($)
Intangible assets, net
Intangible assets, gross	¥ 6,010	¥ 5,876
Less: Accumulated amortization	204	178
Less: Accumulated impairment loss	526	420
Total	5,280	5,278		$ 744
Amortization expense of intangible assets	¥ 45	¥ 45	¥ 65
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	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	¥ 281	¥ 368
Purchased software
Intangible assets, net
Intangible assets, gross	135	128
Other intangible assets
Intangible assets, net
Intangible assets, gross	75	77
Brand names
Intangible assets, net
Intangible assets, gross	5,327	5,111
Impairment loss recognized	160	167	¥ 160
Master brand agreement
Intangible assets, net
Intangible assets, gross	¥ 192	¥ 192

PRE-OPENING EXPENSES (Details) ¥ in Millions, $ in Millions	12 Months Ended
PRE-OPENING EXPENSES (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
PRE-OPENING EXPENSES
Rents	¥ 30		¥ 84	¥ 68
Personnel costs	1		5	5
Others	4		6	8
Total	¥ 35	$ 5	¥ 95	¥ 81

EMPLOYEE BENEFIT PLANS - Amounts recognized in the consolidated balance sheets (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract]
Salary and welfare payables	¥ 12		¥ 10
Retirement benefit obligation	124	$ 18	110
Liability in the balance sheet	¥ 136		¥ 120

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2023

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment, net


	As of December 31,
	2022	2023
Cost:
Buildings	843	791
Leasehold improvements	10,952	11,053
Furniture, fixtures and equipment	2,520	2,448
Motor vehicles	3	2
	14,318	14,294
Less: Accumulated depreciation	7,727	8,456
	6,591	5,838
Construction in progress	193	259
Property and equipment, net	6,784	6,097

PRE-OPENING EXPENSES (Tables)

12 Months Ended

Dec. 31, 2023

PRE-OPENING EXPENSES

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


	Years Ended December 31,
	2021	2022	2023
Rents	68	84	30
Personnel costs	5	5	1
Others	8	6	4
Total	81	95	35

RESTRICTED NET ASSETS

12 Months Ended

Dec. 31, 2023

RESTRICTED NET ASSETS

RESTRICTED NET ASSETS

21.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 RMB826, RMB904 and RMB1,029 as of December 31, 2021, 2022 and 2023, respectively. In addition, due to restrictions on the distribution of share capital from the Group’s PRC subsidiaries, the PRC subsidiaries share capital of RMB2,809 at December 31, 2023 is considered restricted. As a result of these PRC laws and regulations, as of December 31, 2023, approximately RMB3,838 is not available for distribution to the Group by its PRC subsidiaries in the form of dividends, loans or advances.

SEGMENT (Details)	12 Months Ended
SEGMENT (Details)	Dec. 31, 2023 segment
SEGMENT
Number of operating segments	2
Number of reportable segments	2

SEGMENT

12 Months Ended

Dec. 31, 2023

SEGMENT

SEGMENT

16. SEGMENT

The Group’s chief operating decision maker (“CODM”) has been identified as the chief executive officer. The Group has two operating segments which are legacy Huazhu and legacy DH according to 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 Group has changed the segment profit measure from EBITDA to adjusted EBITDA starting from the second quarter of 2023 as the CODM used adjusted EBITDA to evaluate the performance of each segment. Adjusted EBITDA has also been presented for the disclosure for prior period as the segment profit.

The following table provides a summary of the Group’s operating segment results for the years ended December 31, 2021, 2022 and 2023.


	Years Ended December 31,
	2021				2022				2023
	Legacy Huazhu	Legacy DH	Elimination	Total	Legacy Huazhu	Legacy DH	Elimination	Total	Legacy Huazhu	Legacy DH	Elimination	Total
Total revenues	11,247	1,539	(1)	12,785	10,661	3,212	(11)	13,862	17,444	4,465	(27)	21,882
Adjusted EBITDA	2,032	(461)	(0)	1,571	725	(112)	(3)	610	6,772	103	(1)	6,874
Interest income	—	—	—	89	—	—	—	87	—	—	—	248
Interest expense	—	—	—	405	—	—	—	409	—	—	—	385
Income tax expense (benefit)	—	—	—	12	—	—	—	207	—	—	—	1,204
Depreciation and amortization	—	—	—	1,503	—	—	—	1,456	—	—	—	1,414
Share-based compensation	—	—	—	109	—	—	—	87	—	—	—	143
(Gain)loss from fair value changes of equity securities	—	—	—	96	—	—	—	359	—	—	—	(109)
Net (loss) income attributable to H World Group Limited	—	—	—	(465)	—	—	—	(1,821)	—	—	—	4,085

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

As of December 31,

2022

2023

Legacy Huazhu

Legacy DH

Total

Legacy Huazhu

Legacy DH

Total

Total assets

43,729

17,778

61,507

44,285

19,247

63,532

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	2023
China	11,231	10,637	17,393
Germany	1,263	2,458	3,324
All others	291	767	1,165
Total	12,785	13,862	21,882

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


	As of December 31,
	2022	2023
China	31,684	28,762
Germany	13,501	12,504
All others	3,288	3,439
Total	48,473	44,705

Other than China and Germany, there were no countries that individually represented more than 10% of the total revenue for the years ended December 31, 2021, 2022 and 2023, and 10% of the above long lived assets as of December 31, 2022 and 2023.

- 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
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

PRE-OPENING EXPENSES

12 Months Ended

Dec. 31, 2023

PRE-OPENING EXPENSES

PRE-OPENING EXPENSES

13.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,
	2021	2022	2023
Rents	68	84	30
Personnel costs	5	5	1
Others	8	6	4
Total	81	95	35

REVENUE - Contract Balances (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Contract with Customer, Liability
Current contract liabilities	¥ 1,637	$ 231	¥ 1,308
Long-term contract liabilities	1,072	$ 151	828
Total contract liabilities	¥ 2,709		¥ 2,136

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2023

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,
	2022	2023
Cost:
Buildings	843	791
Leasehold improvements	10,952	11,053
Furniture, fixtures and equipment	2,520	2,448
Motor vehicles	3	2
	14,318	14,294
Less: Accumulated depreciation	7,727	8,456
	6,591	5,838
Construction in progress	193	259
Property and equipment, net	6,784	6,097

Depreciation expense was RMB1,352, RMB1,312 and RMB1,276 for the years ended December 31, 2021, 2022 and 2023, respectively.

ASSETS AND LIABILITIES HELD FOR SALE (Details)	12 Months Ended
ASSETS AND LIABILITIES HELD FOR SALE (Details)	Dec. 31, 2023 USD ($)
ASSETS AND LIABILITIES HELD FOR SALE
Impairment loss	$ 0
Liabilities held for sale:
Operating lease liabilities, current	76
HELD FOR SALE - Continuing operations \| Lease and owned hotels
Assets held for sale::
Cash and cash equivalents	17
Property and equipment, net	102
Operating lease right-of-use assets	1,834
Finance lease right-of-use assets	295
Other assets, net	65
Total	2,313
Liabilities held for sale:
Accrued expenses and other current liabilities	102
Operating lease liabilities, non-current	1,936
Finance lease liabilities, non-current	324
Other liabilities	98
Total	$ 2,536

INTANGIBLE ASSETS, NET - Amortization (Details) - Intangible assets excluding brand names and master brand agreement ¥ in Millions	Dec. 31, 2023 CNY (¥)
Estimated amortization expense
2024	¥ 33
2025	32
2026	29
2027	24
2028	23
Thereafter	132
Total	¥ 273

INVESTMENTS - Equity securities without readily determinable fair values (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Summary of Investment Holdings [Line Items]
Equity securities without readily determinable fair values	¥ 182		¥ 257
Investment income recognized	806	$ 113	(321)	¥ 188
Cjia/Cjia Group
Summary of Investment Holdings [Line Items]
Equity securities without readily determinable fair values	99		138
Oravel Stays Private limited ("OYO")
Summary of Investment Holdings [Line Items]
Equity securities without readily determinable fair values	¥ 54		54
Accor Hotels ("Accor")
Summary of Investment Holdings [Line Items]
Impairment of equity securities with out readily determinable fair value			¥ 358

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 6
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-12

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-Name Accounting Standards Codification
-Section 55
-Paragraph 1
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+ Details

ASSETS AND LIABILITIES HELD FOR SALE (Tables)

12 Months Ended

Dec. 31, 2023

ASSETS AND LIABILITIES HELD FOR SALE

Schedule of total assets and liabilities of the disposal group that were classified as held for sale on the Group's Consolidated Balance Sheet


		As of December 31,
		2023
Assets held for sale:
Cash and cash equivalents		17
Property and equipment, net		102
Operating lease right-of-use assets		1,834
Finance lease right-of-use assets		295
Other assets		65
Total		2,313

Liabilities held for sale:
Accrued expenses and other current liabilities		102
Operating lease liabilities, current		76
Operating lease liabilities, non-current		1,936
Finance lease liabilities		324
Other liabilities		98
Total		2,536

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts of accounts receivables and other receivables: - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Valuation And Qualifying Accounts
Balance at Beginning of Year	¥ 203	¥ 128	¥ 87
Charge to Costs and Expenses	89	82	105
Write off	(5)	(7)	(64)
Balance at End of Year	¥ 287	¥ 203	¥ 128

INCOME TAXES - Reconciliation (Details) ¥ / shares in Units, ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥) ¥ / shares	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥) ¥ / shares	Dec. 31, 2021 CNY (¥) ¥ / shares
Tax expense (benefit)
Current Tax \| ¥	¥ 1,175		¥ 475	¥ 555
Deferred Tax	29	$ 4	(268)	(543)
Total	¥ 1,204	$ 168	¥ 207	¥ 12
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	2.00%	2.00%	(6.00%)	(6.00%)
Effect of different tax rate of group entities operating in other jurisdictions	(4.00%)	(4.00%)	(10.00%)	(6.00%)
Effect of change in valuation allowance	0.00%	0.00%	(15.00%)	(24.00%)
Effect of tax holiday	(1.00%)	(1.00%)	1.00%	9.00%
Effect of cash dividends	1.00%	1.00%	(6.00%)	(8.00%)
Effect of excess tax benefit of share based rewards	0.00%	0.00%	(2.00%)	7.00%
Effective tax rate	23.00%	23.00%	(13.00%)	(3.00%)
Aggregate amount and per share effect of the tax holidays
Aggregate amount \| ¥	¥ 60		¥ 22	¥ 37
Per share effect-basic \| ¥ / shares	¥ 0.02		¥ 0.01	¥ 0.01
Per share effect-diluted \| ¥ / shares	¥ 0.02		¥ 0.01	¥ 0.01

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2023

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:
2021	87	105	—	—	(64)	128
2022	128	82	—	—	(7)	203
2023	203	89	—	—	(5)	287

******

DEBT - Convertible Senior Notes (Details) $ / shares in Units, ¥ in Thousands			12 Months Ended
	May 12, 2020 CNY (¥)	May 12, 2020 USD ($)	Dec. 31, 2023 CNY (¥) shares	Dec. 31, 2021 CNY (¥)	Nov. 01, 2022 USD ($)	May 26, 2020 USD ($)	May 12, 2020 USD ($) $ / shares	Nov. 03, 2017 USD ($)
DEBT
Amount converted \| ¥			¥ 0
2022 Notes
DEBT
Amount converted \| ¥				¥ 0
Convertible Debt \| 2022 Notes
DEBT
Aggregate principal amount								$ 475,000,000
Fixed interest rate (as a percent)								0.375%
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
Increment used for debt conversion		$ 1,000
Repurchase price as a percentage of principal amount	100.00%	100.00%
Initial conversion rate per ADS	41.72	41.72
Debt conversion in value \| ¥			¥ 10
Convertible Debt \| 2026 Notes \| ADSs
DEBT
Debt conversion in shares \| shares			24

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Operating activities:
Net (loss) income	¥ 4,131	$ 582	¥ (1,849)	¥ (480)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Share-based compensation	143	20	87	109
Depreciation and amortization	1,414	199	1,456	1,503
Amortization of issuance cost of convertible senior notes and upfront fee on bank borrowings	34	5	57	60
Deferred income taxes	29	4	(268)	(543)
Credit loss	89	13	82	105
Impairment loss	516	73	491	380
Loss from equity method investments, net of dividends	72	10	85	60
Foreign currency exchange loss (gain)	(119)	(17)	341	255
Investment (income) loss	(806)	(113)	321	(188)
Noncash lease expense	2,163	305	2,257	2,306
Other	48	7	(54)	(10)
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	296	42	(621)	(113)
Other assets	6	1	149	(64)
Salary and welfare payables	402	57	63	72
Deferred revenue	576	81	(19)	224
Accrued expenses and other current liabilities	1,133	157	507	(439)
Operating lease liabilities	(2,548)	(360)	(1,608)	(2,123)
Income tax payable	62	9	82	83
Other long-term liabilities	84	12	20	122
Other, net	(51)	(7)	(15)	23
Net cash provided by operating activities	7,674	1,080	1,564	1,342
Investing activities:
Purchases of property and equipment	(894)	(126)	(1,049)	(1,658)
Purchases of intangible asset	(7)	(1)	(4)	(17)
Acquisitions, net of cash received	0	0	(57)	(742)
Purchases of investments	(3,509)	(494)	(401)	(521)
Proceeds from maturity/sale and return of investments	2,972	419	937	1,494
Origination of loan receivables	(226)	(32)	(175)	(176)
Collection of loan receivables	137	20	212	162
Other investing activities	50	7	15	56
Net cash used in investing activities	(1,477)	(207)	(522)	(1,402)
Financing activities:
Proceeds from issuance of ordinary shares in Hong Kong public offering	1,973	278
Proceeds from Termination of Capped Call			86
Payment of repurchases of ordinary shares	(848)	(119)	(334)	0
Proceeds from short-term debt	745	106	4,249	2,288
Repayment of short-term debt	(3,436)	(485)	(1,935)	(2,474)
Proceeds from long-term debt	350	49	2,797	53
Repayment of long-term debt	(2,336)	(329)	(2,364)	(1,650)
Proceeds from long-term finance liabilities	74	10	55	38
Repayment of long-term finance liabilities	(66)	(9)	(49)	(46)
Dividends paid			(416)
Repayment of convertible senior notes	0	0	(3,406)	0
Principal payments of finance lease	(82)	(11)	(40)	(28)
Other financing activities	(94)	(13)	(37)	18
Net cash used in financing activities	(3,720)	(523)	(1,394)	(1,801)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	164	22	297	(88)
Net (decrease) increase in cash, cash equivalents and restricted cash, Including cash and cash equivalents classified within assets held for sale	2,641	372	(55)	(1,949)
Less: net increase in cash and cash equivalents classified within non-current assets held for sale	17	2
Cash, cash equivalents and restricted cash at the beginning of the year	5,086	716	5,141	7,090
Cash, cash equivalents and restricted cash at the end of the year	7,710	1,086	5,086	5,141
Cash and cash equivalents	6,946		3,583	5,116
Restricted cash	764		1,503	25
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	7,710		5,086	5,141
Supplemental disclosure of cash flow information:
Interest paid, net of amounts capitalized	263	37	256	297
Income taxes paid	1,127	159	385	477
Supplemental schedule of non-cash investing and financing activities:
Purchases of property and equipment included in payables	477	67	652	486
Consideration payable for business acquisition	¥ 4	$ 1	¥ 5	86
Purchase of intangible assets included in payables				¥ 2

ACQUISITIONS

12 Months Ended

Dec. 31, 2023

ACQUISITIONS

ACQUISITIONS

3.ACQUISITIONS

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 and RMB33 were respectively paid in cash in 2021 and 2023.

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. 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, 2021 and 2022, the Group acquired three and seven individual companies for total cash consideration of RMB51 and RMB9, respectively. The business acquisitions were accounted for under purchase accounting. The assets and liabilities of these companies acquired in 2021 and 2022 were immaterial to the consolidated financial statements. There was no acquisition for the year ended December 31, 2023.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ¥ in Millions, $ in Millions	Ordinary Shares Convertible Senior Notes Due 2022 CNY (¥) shares	Ordinary Shares CNY (¥) shares	Treasury Shares CNY (¥) shares	Additional Paid-in Capital Convertible Senior Notes Due 2022 CNY (¥)	Additional Paid-in Capital CNY (¥)	Retained Earnings CNY (¥)	Accumulated Other Comprehensive Income (Loss) CNY (¥)	Noncontrolling Interest CNY (¥)	Convertible Senior Notes Due 2022 CNY (¥)	CNY (¥) shares	USD ($) shares
Balance at beginning outstanding (in shares) at Dec. 31, 2020 \| shares		3,108,425,680
Balance at beginning at Dec. 31, 2020		¥ 0			¥ 9,808	¥ 1,502	¥ 127	¥ 102		¥ 11,432
Treasury shares, balance (in shares) at Dec. 31, 2020 \| shares			30,967,640
Treasury shares, balance at Dec. 31, 2020			¥ (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		12,325,470
Conversion of Convertible Senior Notes due 2022	¥ 0			¥ 0					¥ 0
Conversion of Convertible Senior Notes due 2022 (in shares) \| shares	1,340
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							(99)			(99)
Repurchase of treasury shares			¥ 0
Repurchase of treasury shares (in shares) \| shares			6,400
Repurchase of ordinary shares										0
Repurchase of ordinary shares (in shares) \| shares		(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
Income (loss) arising from defined benefit plan, net of tax benefit							13			13
Balance at ending outstanding (in shares) at Dec. 31, 2021 \| shares		3,120,746,090
Balance at ending at Dec. 31, 2021		¥ 0			9,964	1,037	41	109		11,044
Treasury shares, balance (in shares) at Dec. 31, 2021 \| shares			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
Conversion of Convertible Senior Notes due 2022 (in shares) \| shares			104,251,120
Share-based compensation					87					87
Net loss						(1,821)		(28)		(1,849)
Dividends to noncontrolling interest holders								(6)		(6)
Capital contribution from noncontrolling interest holders								0		0
Acquisition of noncontrolling interest					1			(2)		(1)
Gain (losses) from fair value changes of debt securities, net of tax benefit							57			57
Foreign currency translation adjustments							112			112
Repurchase of treasury shares			¥ (334)
Repurchase of treasury shares (in shares) \| shares			17,794,700
Repurchase of ordinary shares										(334)
Repurchase of ordinary shares (in shares) \| shares		(17,794,700)
Cash dividends declared						(416)				(416)
Noncontrolling interest recognized in connection with acquisitions								1		1
Termination of Capped Call					86					86
Income (loss) arising from defined benefit plan, net of tax benefit							22			¥ 22
Balance at ending outstanding (in shares) at Dec. 31, 2022 \| shares		3,112,413,730								3,112,413,730	3,112,413,730
Balance at ending at Dec. 31, 2022		¥ 0			10,138	(1,200)	232	74		¥ 8,803
Treasury shares, balance (in shares) at Dec. 31, 2022 \| shares			153,019,860							153,019,860	153,019,860
Treasury shares, balance at Dec. 31, 2022			¥ (441)							¥ (441)
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		6,793,560
Vest of restricted stock in Treasury Shares			¥ 11		(11)
Vest of restricted stock in Treasury Shares (in shares) \| shares		3,239,790	(3,239,790)
Conversion of Convertible Senior Notes due 2022		¥ 0			0					0
Conversion of Convertible Senior Notes due 2022 (in shares) \| shares		240
Share-based compensation					143					143
Net loss						4,085		46		4,131	$ 582
Dividends to noncontrolling interest holders								(2)		(2)
Issuance of ordinary shares		¥ 0			1,963					1,963
Issuance of ordinary shares (in shares) \| shares		71,185,000
Capital contribution from noncontrolling interest holders								0		0
Acquisition of noncontrolling interest					0			(4)		(4)
Gain (losses) from fair value changes of debt securities, net of tax benefit							(12)			(12)	(2)
Foreign currency translation adjustments							175			175	25
Repurchase of treasury shares			¥ (848)
Repurchase of shares (in ordinary shares) \| shares			133,019,860
Repurchase of treasury shares (in shares) \| shares			34,585,970
Repurchase of ordinary shares										(848)
Repurchase of ordinary shares (in shares) \| shares		(34,585,970)
Cash dividends declared						(2,091)				(2,091)
Cancellation of ordinary shares (in Shares) \| shares			(133,019,860)
Cancellation of ordinary shares		¥ 0	¥ 372		(372)					0
Income (loss) arising from defined benefit plan, net of tax benefit							(9)			¥ (9)	$ (1)
Balance at ending outstanding (in shares) at Dec. 31, 2023 \| shares		3,159,046,350								3,159,046,350	3,159,046,350
Balance at ending at Dec. 31, 2023		¥ 0			¥ 11,861	¥ 794	¥ 386	¥ 114		¥ 12,249	$ 1,725
Treasury shares, balance (in shares) at Dec. 31, 2023 \| shares			51,346,180							51,346,180	51,346,180
Treasury shares, balance at Dec. 31, 2023			¥ (906)							¥ (906)	$ (128)

LEASES - Schedule Of Maturities Of Lease Liabilities (Details) - CNY (¥) ¥ in Millions	Dec. 31, 2023	Dec. 31, 2022
Total Operating Leases
Year 1	¥ 4,073	¥ 4,209
Year 2	3,981	4,196
Year 3	3,788	3,989
Year 4	3,615	3,793
Year 5	3,384	3,605
Thereafter	22,282	24,547
Total minimum lease payments	41,123	44,339
Less: amount representing interest	13,299	12,929
Present value of minimum lease payments	27,824	31,410
Total Finance Leases
Year 1	155	142
Year 2	159	146
Year 3	161	146
Year 4	165	148
Year 5	168	151
Thereafter	4,056	3,539
Total minimum lease payments	4,864	4,272
Less: amount representing interest	2,122	1,718
Present value of minimum lease payments	¥ 2,742	¥ 2,554

SEGMENT - Total assets for operating segments (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
SEGMENT
Total assets	¥ 63,532	$ 8,948	¥ 61,507
Operating Segments \| Legacy Huazhu
SEGMENT
Total assets	44,285		43,729
Operating Segments \| Legacy DH
SEGMENT
Total assets	¥ 19,247		¥ 17,778

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (bb)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481203/810-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 25
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481231/810-10-45-25

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(12))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479440/944-210-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(8))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(18))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
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-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
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-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 23: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481404/852-10-50-7

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 26: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479853/942-210-S99-1

+ Details

LEASES

12 Months Ended

Dec. 31, 2023

LEASES

LEASES

18.LEASES

The Group’s leases mainly related to buildings and the rights to use the land. The total expense related to short-term leases was insignificant for period of 2021, 2022 and 2023, and sublease income of the Group which was recognized in revenues in the consolidated statements of comprehensive income was RMB134, RMB119 and RMB143 for the years ended December 31, 2021, 2022 and 2023, respectively. The Group recognized a negative lease expense of RMB88, RMB281 and RMB98 for 2021, 2022 and 2023 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 2022 and 2023 is as follows:


	Years Ended December 31,
	2022		2023
Lease cost:
Operating fixed lease cost	4,186		4,217
Finance lease cost
— Amortization of ROU assets	93		87
— Interest on lease liabilities	116		114
Operating variable lease cost	(144)		110
Total lease cost	4,251		4,528

Other information:
Weighted average remaining lease term
Operating leases	13 years		13 years
Finance leases	28 years		27 years
Weighted average discount rate
Operating leases	6.28	%	6.27	%
Finance leases	3.98	%	4.29	%

As of December 31, 2023, the maturities of lease liabilities, excluding operating lease liabilities classified in liabilities held for sale (Note 9), 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
2024	4,073	155
2025	3,981	159
2026	3,788	161
2027	3,615	165
2028	3,384	168
Thereafter	22,282	4,056

Total minimum lease payments	41,123	4,864

Less: amount representing interest	13,299	2,122

Present value of minimum lease payments	27,824	2,742

As of December 31, 2023, the Group has entered 25 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 RMB5,504, which is not reflected in the consolidated balance sheets.

As of December 31, 2022, 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
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

Supplemental cash flow information related to leases for the years ended December 31, 2022 and 2023 are as follows:


	Years Ended December, 31
	2022	2023
Cash paid for amounts included in the measurement of operating lease liabilities	3,295	4,440
Cash paid for amounts included in the measurement of finance lease liabilities	106	68
Non-cash right-of-use assets obtained in exchange for operating lease liabilities	1,010	343
Non-cash right-of-use assets obtained in exchange for finance lease liabilities, net of reassessment of finance lease payments	(161)	361
Non-cash right-of-use assets obtained in acquisition for operating lease	171	—
Non-cash lease liabilities obtained in acquisition for operating lease	144	—

LEASES - Narratives (Details) ¥ in Millions	12 Months Ended
LEASES - Narratives (Details) ¥ in Millions	Dec. 31, 2023 CNY (¥) contract	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
LEASES
Sublease income	¥ 143	¥ 119	¥ 134
Negative lease expense recognized under the relief using variable lease expense approach	¥ 98	¥ 281	¥ 88
Number of lease contracts \| contract	25
Non-cancellable lease contracts not reflected in consolidate balance sheets	¥ 5,504

INCOME TAXES

12 Months Ended

Dec. 31, 2023

INCOME TAXES

INCOME TAXES

19.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,
	2021	2022	2023
PRC including Hong Kong and Taiwan	617	(483)	5,833
Germany	(632)	(410)	(463)
Other	(393)	(713)	(21)
Total	(408)	(1,606)	5,349

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


	Years Ended December 31,
	2021	2022	2023
Current Tax	555	475	1,175
Deferred Tax	(543)	(268)	29
Total	12	207	1,204

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


	Years Ended December 31,
	2021		2022		2023
PRC statutory tax rate	25	%	25	%	25	%
Tax effect of non-deductible expenses and non-taxable income in determining taxable profit	(6)	%	(6)	%	2	%
Effect of different tax rate of group entities operating in other jurisdictions	(6)	%	(10)	%	(4)	%
Effect of change in valuation allowance	(24)	%	(15)	%	(0)	%
Effect of tax holiday	9	%	1	%	(1)	%
Effect of cash dividends	(8)	%	(6)	%	1	%
Effect of excess tax benefit of share-based rewards	7	%	(2)	%	(0)	%
Effective tax rate	(3)	%	(13)	%	23	%

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


	Years Ended December 31,
	2021	2022	2023
Aggregate amount	37	22	60
Per share effect—basic	0.01	0.01	0.02
Per share effect—diluted	0.01	0.01	0.02

The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2022 and 2023 are as follows:


	As of December 31,
	2022	2023
Deferred tax assets:
Net loss carryforward	1,678	1,289
Deferred revenue	349	454
Long-term assets	303	399
Bad debt provision	59	80
Accrued payroll	41	(10)
Other accrued expenses	(9)	74
Share-based compensation	31	33
Others	150	198
Valuation allowance	(731)	(675)
Total deferred tax assets, net of valuation allowance	1,871	1,842
Deferred tax liabilities:
Fair value adjustment for building, land use rights and identified intangible assets due to acquisition	1,596	1,593
Others	40	51
Total deferred tax liabilities	1,636	1,644
Net deferred tax assets	235	198
Analysis as:
Deferred tax assets	1,093	1,043
Deferred tax liabilities	858	845
Net deferred tax assets	235	198

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,
	2021	2022	2023
Balance at the beginning of the year	(369)	(466)	(731)
Provided	(151)	(338)	(145)
Reversed	37	41	165
Written off	17	32	36
Balance at the end of the year	(466)	(731)	(675)

As of December 31, 2023, the Group’s PRC subsidiaries had tax loss carryforwards of RMB3,098, which will expire between 2024 and 2028 if not used. Companies under Legacy DH had tax loss carry forwards of RMB1,725, 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, 2022 and 2023, the Group had recorded liabilities for uncertain tax benefit of approximately RMB65 and RMB67 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, 2021, 2022 and 2023. In 2024, the Group will decrease its income tax liability by RMB 0.2 for unrecognized tax benefits previously recorded in 2014 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 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 RMB100 was accrued as of December 31, 2022. In 2023, the Group revised its dividend policy that it may make a dividend distribution every year up to 45% of its current year net income starting from 2023. PRC dividend withholding tax of RMB75 was accrued as of December 31, 2023. 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 2019 through 2023 on non-transfer pricing matters, and from 2014 through 2023 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.

The Organisation for Economic Co-operation and Development (OECD) developed a Global Anti-Base Erosion Rules (Pillar Two) to ensure a 15% global minimum tax paid by large multination enterprises with consolidated revenue over EUR 750 million. In December 2022, the EU Minimum Tax Directive entered into force and leaded to member states to enact legislation to implement Pillar Two rules effective for fiscal years starting on or after December 31,2023.

Some other major jurisdictions have either enacted certain parts of the Pillar Two rules or begun the process of enacting such rules, with varying effective dates.

Based on current enacted legislation effective in 2024, group’s structure and assessment, the Group does not expect Pillar Two to have a material impact on the effective tax rate, consolidation results of operation, financial position, and cash flows in near term. The Group will continue to closely monitor Pillar Two global implementation process and refine the assessment.

- 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
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

SEGMENT - Segment information (Details) € in Millions, ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
SEGMENT
Total revenues	€ 750	¥ 21,882	$ 3,082	¥ 13,862	¥ 12,785
Adjusted EBITDA		6,874		610	1,571
Interest income		248	35	87	89
Interest expense		385	54	409	405
Income tax expense (benefit)		1,204	168	207	12
Depreciation and amortization		1,414	199	1,456	1,503
Share-based compensation		143	20	87	109
(Gain)loss from fair value changes of equity securities		(109)	(15)	359	96
Net (loss) income attributable to H World Group Limited		4,085	$ 575	(1,821)	(465)
Intersegment Eliminations
SEGMENT
Total revenues		(27)		(11)	(1)
Adjusted EBITDA		(1)		(3)	0
Legacy Huazhu \| Operating Segments
SEGMENT
Total revenues		17,444		10,661	11,247
Adjusted EBITDA		6,772		725	2,032
Legacy DH \| Operating Segments
SEGMENT
Total revenues		4,465		3,212	1,539
Adjusted EBITDA		¥ 103		¥ (112)	¥ (461)

SHARE-BASED COMPENSATION - Significant assumptions used to estimate the fair value of stock options (Details) - Share options	12 Months Ended
	Dec. 31, 2023 ¥ / shares
SHARE-BASED COMPENSATION
Suboptimal exercise factor	¥ 2.80
Risk-free interest rate	3.61%
Volatility	49.31%
Dividend yield	0.80%
Life of option	10 years

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
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-Subparagraph (c)(1)(iii)
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (c)(2)(ii)
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
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-Subparagraph (c)(2)(iii)(02)
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Subparagraph (c)(2)(iii)(03)
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2023

CitiGo Hotels

Acquisitions

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


		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

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS, NET

Schedule of intangible assets with indefinite life


	As of December 31,
	2022	2023
Intangible assets with indefinite lives:
Brand names	5,111	5,327
Master brand agreement	192	192
Intangible assets with finite lives:
Franchise or manachise agreements	368	281
Purchased software	128	135
Other intangible assets	77	75
Total	5,876	6,010
Less: Accumulated amortization	178	204
Less: Accumulated impairment loss(Note2)	420	526
Total	5,278	5,280

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


		Amortization for Intangible Assets
2024		33
2025		32
2026		29
2027		24
2028		23
Thereafter		132
Total		273

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Gain (loss) arising from defined benefit plan, tax	¥ (3)	¥ 10	¥ 4
Gains (losses) from fair value changes of debt securities, tax	(3)	19	0
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

23.	COMMITMENTS AND CONTINGENCIES

(a) Commitments

As of December 31, 2023, the Group’s commitments related to leasehold improvements and installation of equipment for hotel operations was RMB243, 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, 2023, there are no accrued contingent liabilities from such proceedings.

ASSETS AND LIABILITIES HELD FOR SALE

12 Months Ended

Dec. 31, 2023

ASSETS AND LIABILITIES HELD FOR SALE

ASSETS AND LIABILITIES HELD FOR SALE

9. ASSETS AND LIABILITIES HELD FOR SALE

In the fourth quarter of 2023, the Group committed to a plan to sell certain lease-and-owned hotels (the “disposal group”) included in legacy DH. In February 2024, the Group entered into a Share and Asset Purchase and Transfer Agreement with an unaffiliated third party, and the transaction is expected to be closed in mid-2024, subject to certain customary closing conditions. As of December 31, 2023, the related assets and liabilities were classified as held for sale on the Group’s consolidated balance sheet. As the estimated fair value of the disposal group exceeded its carrying value, no impairment loss was recognized for the year ended December 31, 2023.

The total assets and liabilities of the disposal group that were classified as held for sale on the Group’s consolidated balance sheet as of December 31, 2023, were as follows:


		As of December 31,
		2023
Assets held for sale:
Cash and cash equivalents		17
Property and equipment, net		102
Operating lease right-of-use assets		1,834
Finance lease right-of-use assets		295
Other assets		65
Total		2,313

Liabilities held for sale:
Accrued expenses and other current liabilities		102
Operating lease liabilities, current		76
Operating lease liabilities, non-current		1,936
Finance lease liabilities		324
Other liabilities		98
Total		2,536

INCOME TAXES - Valuation allowance (Details) € in Millions, ¥ in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Uncertain tax benefits
Interest or penalty expense			¥ 0.0		¥ 0.0	¥ 0.0
Roll-forward of the unrecognized tax benefits
Balance at the beginning of the year			65.0		60.0	50.0
Addition for tax positions			2.0		5.0	10.0
Balance at the end of the year			¥ 67.0		65.0	60.0
Withholding income tax rate (in %)		10.00%	10.00%	10.00%
Withholding income tax rate with Hong Kong as holding company (in %)		5.00%	5.00%	5.00%
Percentage holding of the PRC company (in %)		25	25	25
Percentage of dividend distribution on current year net income		45.00%	45.00%	45.00%
PRC dividend withholding tax accrued			¥ 75.0		100.0
Additional provision for PRC dividend withholding tax accrued			¥ 0.0
Period of statute of limitations (in years)		3 years	3 years	3 years
Period of statute of limitations, if the underpayment is more than the specified amount (in years)		5 years	5 years	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 (in years)		10 years	10 years	10 years
Tax liability reduction due to unrecognized tax benefits			¥ 0.2
Cash dividends declared \| $	$ 68
Period Of Statute Of Limitations For Assessment and Collection of Taxes		4 years	4 years	4 years
Revenues		€ 750	¥ 21,882.0	$ 3,082	13,862.0	12,785.0
Tax paid by large multination enterprises		15.00%	15.00%	15.00%
GERMANY
Valuation allowance
Tax loss carryforwards			¥ 1,725.0
Roll-forward of the unrecognized tax benefits
Revenues			3,324.0		2,458.0	1,263.0
China
Valuation allowance
Tax loss carryforwards, expire between 2024 and 2028			3,098.0
Roll-forward of the unrecognized tax benefits
Revenues			¥ 17,393.0		¥ 10,637.0	¥ 11,231.0
Maximum [Member]
Roll-forward of the unrecognized tax benefits
Extended limitation tax evasion period (in years)		10 years	10 years	10 years
Minimum [Member]
Roll-forward of the unrecognized tax benefits
Extended limitation tax evasion period (in years)		5 years	5 years	5 years

ACQUISITIONS - Allocation of purchase price (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Apr. 30, 2021 CNY (¥)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Goodwill	¥ 5,318	$ 749	¥ 5,195	¥ 5,132
CitiGo Hotels
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Current assets					¥ 34
Property and equipment					296
Operating lease right-of-use assets					1,119
Other non-current assets					33
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
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

ACQUISITIONS - Citigo acquisition and Other acquisitions (Details) ¥ in Millions			12 Months Ended
	Dec. 31, 2021 CNY (¥)	Apr. 30, 2021 CNY (¥)	Dec. 31, 2023 CNY (¥) item	Dec. 31, 2022 CNY (¥) item	Dec. 31, 2021 CNY (¥) item
Acquisitions
Number of individual companies acquired \| item			0
CitiGo Hotels
Acquisitions
Percentage of ownership interest acquired		100.00%
Aggregated consideration		¥ 783
Cash consideration	¥ 749		¥ 33
Other acquisitions
Acquisitions
Cash consideration				¥ 9	¥ 51
Number of hotels acquired \| item				7	3

DEBT - Total (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
DEBT
Short-term debt	¥ 4,049	$ 570	¥ 3,288
Total	4,049		3,288
Long-term debt, non-current portion	1,265	$ 179	6,635
Bank borrowings
DEBT
Long-term debt, current portion	125		208
Long-term debt, non-current portion	1,050		2,929
Convertible Debt
DEBT
Long-term debt, current portion	3,537
Long-term debt, non-current portion			3,463
FF&E liability
DEBT
Long-term debt, current portion	58		45
Long-term debt, non-current portion	199		228
Others
DEBT
Long-term debt, non-current portion	16		15
Bank borrowings
DEBT
Short-term debt	¥ 329		¥ 3,035

GOODWILL - Changes in carrying amount (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2021 CNY (¥)
GOODWILL
Gross carrying values	¥ 5,757	¥ 5,606		¥ 5,532
Accumulated impairment loss	(439)	(411)		(400)
Goodwill	5,318	5,195	$ 749	5,132
Goodwill acquired during the year		4
Net foreign exchange-goodwill	151	70
Net foreign exchange-impairment loss	(24)	¥ (11)
Impairment loss	¥ (4)
Hypothetical decline in projected cash flow or increase in the discount rate (as a percent)	5.00%	5.00%	5.00%
Legacy Huazhu
GOODWILL
Gross carrying values	¥ 3,036	¥ 3,036		3,036
Accumulated impairment loss	(4)	(4)		(4)
Goodwill	¥ 3,032	¥ 3,032		3,032
Percentage of fair value exceeded the carrying value	100.00%	100.00%	100.00%
Legacy DH
GOODWILL
Gross carrying values	¥ 2,721	¥ 2,570		2,496
Accumulated impairment loss	(435)	(407)		(396)
Goodwill	2,286	2,163		¥ 2,100
Goodwill acquired during the year		4
Net foreign exchange-goodwill	151	70
Net foreign exchange-impairment loss	(24)	¥ (11)
Impairment loss	¥ (4)
Percentage of fair value exceeded the carrying value	17.00%	25.00%	17.00%
Fair value exceeded carrying value	¥ 490	¥ 769

DEBT (Tables)

12 Months Ended

Dec. 31, 2023

DEBT

Schedule of short-term and long-term debt


	As of December 31,
	2022	2023
Short-term debt:
Long-term bank borrowings, current portion	208	125
Short-term bank borrowings	3,035	329
Convertible senior notes, current portion	—	3,537
FF&E liability, current portion	45	58
Total	3,288	4,049

Long-term debt:
Long-term bank borrowings, non-current portion	2,929	1,050
Convertible senior notes, non-current portion	3,463	—
FF&E liability, non-current portion	228	199
Others	15	16
Total	6,635	1,265

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

The contractual maturities of the Group’s debt as of December 31, 2023 were as follows:


Year Ending December 31,		Principal Amounts
2024		4,053
2025		787
2026		342
2027		33
2028		25
Thereafter		79
Total		5,319

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2023

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

Variable Interest Entities

As of December 31, 2022 and 2023, the impact of the consolidated VIEs are immaterial to the Group’s consolidated financial statements.

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

Held to maturity investments are stated at amortized cost.

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


Franchise or manachise agreements		Remaining contract terms from 10 to 20 years
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, 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, 2023	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	231	—	—
Available-for-sale debt securities	—	—	281
Employee benefit plan assets	17	—	—


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


As of December 31, 2023		Fair Value Measurements at Reporting Date Using
		Significant Unobservable	Total Loss for
Description	Fair Value	Inputs (Level 3)	the Year
Property and equipment	70	70	52
Operating lease right-of-use assets	309	309	228
Intangible assets	236	236	166
Long-term investment	113	113	66
Goodwill	—	—	4

Assets and liabilities held for sale

Share-based compensation

Earnings (losses) per share

Recently Issued Accounting Pronouncements

Adopted Accounting Standards

Accounting Standards Not Yet Adopted

Translation into United States Dollars

RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Millions	12 Months Ended
RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
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	¥ 1,029	¥ 904	¥ 826
Restricted share capital	2,809
Restricted net assets not available for distribution to the Company in the form of dividends, loans or advances	¥ 3,838

CASH DIVIDEND

12 Months Ended

Dec. 31, 2023

CASH DIVIDEND

CASH DIVIDEND

17.CASH DIVIDEND

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

On March 3, 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 of RMB416 was fully paid in April 2022.

On November 29, 2023, the Group approved and declared a cash dividend of US$0.093 per ordinary share or US$0.93 per ADS, on its outstanding shares as of the close of trading on January 10, 2024. Such dividend of RMB2,085 was recorded as dividend payable as of December 31, 2023 and was fully paid in the first quarter of 2024.

Cover Page	12 Months Ended
Cover Page	Dec. 31, 2023 shares
Document and Entity Information
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
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, Postal Zip Code	201803
Entity Address, Country	CN
Title of 12(b) Security	American Depositary Shares
Trading Symbol	HTHT
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding	3,159,046,350
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
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction Flag	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Auditor Name	Deloitte Touche Tohmatsu Certified Public Accountants LLP
Auditor Firm ID	1113
Auditor Location	Shanghai, China
Entity Central Index Key	0001483994
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Business contact
Document and Entity Information
Contact Personnel Name	Jun Zou
Entity Address, Address Line One	No. 1299 Fenghua Road
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	201803
Entity Address, Country	CN
City Area Code	86
Local Phone Number	(21) 6195-2011
Contact Personnel Email Address	zoujun002@hworld.com

SEGMENT (Tables)

12 Months Ended

Dec. 31, 2023

SEGMENT

Summary of segment information after elimination of intercompany transactions


	Years Ended December 31,
	2021				2022				2023
	Legacy Huazhu	Legacy DH	Elimination	Total	Legacy Huazhu	Legacy DH	Elimination	Total	Legacy Huazhu	Legacy DH	Elimination	Total
Total revenues	11,247	1,539	(1)	12,785	10,661	3,212	(11)	13,862	17,444	4,465	(27)	21,882
Adjusted EBITDA	2,032	(461)	(0)	1,571	725	(112)	(3)	610	6,772	103	(1)	6,874
Interest income	—	—	—	89	—	—	—	87	—	—	—	248
Interest expense	—	—	—	405	—	—	—	409	—	—	—	385
Income tax expense (benefit)	—	—	—	12	—	—	—	207	—	—	—	1,204
Depreciation and amortization	—	—	—	1,503	—	—	—	1,456	—	—	—	1,414
Share-based compensation	—	—	—	109	—	—	—	87	—	—	—	143
(Gain)loss from fair value changes of equity securities	—	—	—	96	—	—	—	359	—	—	—	(109)
Net (loss) income attributable to H World Group Limited	—	—	—	(465)	—	—	—	(1,821)	—	—	—	4,085

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

As of December 31,

2022

2023

Legacy Huazhu

Legacy DH

Total

Legacy Huazhu

Legacy DH

Total

Total assets

43,729

17,778

61,507

44,285

19,247

63,532

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


	Years Ended December 31,
	2021	2022	2023
China	11,231	10,637	17,393
Germany	1,263	2,458	3,324
All others	291	767	1,165
Total	12,785	13,862	21,882


	As of December 31,
	2022	2023
China	31,684	28,762
Germany	13,501	12,504
All others	3,288	3,439
Total	48,473	44,705

EARNINGS (LOSSES) PER SHARE (Details) ¥ / shares in Units, ¥ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥) ¥ / shares shares	Dec. 31, 2023 $ / shares	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares
EARNINGS (LOSSES) PER SHARE
Net loss attributable to ordinary shareholders - basic \| ¥	¥ 4,085		¥ (1,821)	¥ (465)
Net loss attributable to ordinary shareholders - diluted \| ¥	¥ 4,205		¥ (1,821)	¥ (465)
Weighted average ordinary shares outstanding - basic	3,183,163,131		3,111,196,757	3,114,124,244
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method	44,331,080
Dilutive effect of convertible senior notes	123,927,000
Weighted average ordinary shares outstanding - diluted	3,351,421,211		3,111,196,757	3,114,124,244
Basic earnings (losses) per share \| (per share)	¥ 1.28	$ 0.18	¥ (0.59)	¥ (0.15)
Diluted earnings (losses) per share \| (per share)	¥ 1.25	$ 0.18	¥ (0.59)	¥ (0.15)

- 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, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

HOTEL OPERATING COSTS (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
HOTEL OPERATING COSTS.
Rents	¥ 4,290		¥ 3,927	¥ 3,900
Utilities	685		603	507
Personnel costs	4,684		3,683	3,022
Depreciation and amortization	1,329		1,414	1,413
Consumable, food and beverage	1,327		1,026	969
Others	2,026		1,607	1,471
Total	¥ 14,341	$ 2,021	¥ 12,260	¥ 11,282

INVESTMENTS - Equity-method investments (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Equity-method investments
Equity-method investments	¥ 1,289		¥ 1,392
Income (loss) from equity method investments	(14)	$ (2)	(36)	¥ (60)
Impairment loss	66		27
AAPC LUB
Equity-method investments
Equity-method investments	490		494
Hotel related funds
Equity-method investments
Equity-method investments	¥ 479		¥ 574

DEBT - Contractual maturities of the group's long-term debt (Details) ¥ in Millions	Dec. 31, 2023 CNY (¥)
Contractual maturities
2024	¥ 4,053
2025	787
2026	342
2027	33
2028	25
Thereafter	79
Total	¥ 5,319

LEASES (Tables)

12 Months Ended

Dec. 31, 2023

LEASES

Schedule of supplemental information related to operating leases


	Years Ended December 31,
	2022		2023
Lease cost:
Operating fixed lease cost	4,186		4,217
Finance lease cost
— Amortization of ROU assets	93		87
— Interest on lease liabilities	116		114
Operating variable lease cost	(144)		110
Total lease cost	4,251		4,528

Other information:
Weighted average remaining lease term
Operating leases	13 years		13 years
Finance leases	28 years		27 years
Weighted average discount rate
Operating leases	6.28	%	6.27	%
Finance leases	3.98	%	4.29	%

Schedule of maturities of operating and finance lease liabilities


Year Ending December 31,	Total Operating Leases	Total Finance Leases
2024	4,073	155
2025	3,981	159
2026	3,788	161
2027	3,615	165
2028	3,384	168
Thereafter	22,282	4,056

Total minimum lease payments	41,123	4,864

Less: amount representing interest	13,299	2,122

Present value of minimum lease payments	27,824	2,742

As of December 31, 2022, 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
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

Schedule of supplemental cash flow information related to leases


	Years Ended December, 31
	2022	2023
Cash paid for amounts included in the measurement of operating lease liabilities	3,295	4,440
Cash paid for amounts included in the measurement of finance lease liabilities	106	68
Non-cash right-of-use assets obtained in exchange for operating lease liabilities	1,010	343
Non-cash right-of-use assets obtained in exchange for finance lease liabilities, net of reassessment of finance lease payments	(161)	361
Non-cash right-of-use assets obtained in acquisition for operating lease	171	—
Non-cash lease liabilities obtained in acquisition for operating lease	144	—

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Payable to franchisees	¥ 1,150		¥ 652
Other payables	1,146		850
Accrued utilities and other accrued expenses	283		332
Liabilities related to customer loyalty program	264		166
Value-added tax, other tax and surcharge payables	337		234
Advance from noncontrolling interest holders	81		103
Total	¥ 3,261	$ 459	¥ 2,337

SHARE-BASED COMPENSATION - Recognized share-based compensation expenses (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Recognized share-based compensation expenses	¥ 143	¥ 87	¥ 109
Hotel operating costs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Recognized share-based compensation expenses	31	33	39
Selling and marketing expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Recognized share-based compensation expenses	6	4	4
General and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Recognized share-based compensation expenses	¥ 106	¥ 50	¥ 66

RELATED PARTY TRANSACTIONS AND BALANCES (Tables)

12 Months Ended

Dec. 31, 2023

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 Shareholder of the Group
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
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
Huamai (Guangzhou) Hotel Management Co., Ltd. (“Huamai”)	Hotel management company	Equity method investee of the Group
Azure Hospitality Fund I Limited Partnership (LLP) (“Azure”)	Fund	Equity method investee of the Group

Schedule of amounts due from related parties


	As of December 31,
	2022	2023
Trip.com	73	174
Lianquan	46	45
Huamai	—	22
Zhuchuang	24	14
Cjia Group	28	9
Sheen Star	29	—
Others	21	34
Allowance for expected credit losses	(37)	(63)
Total	184	235

Schedule of amounts due to related party


	As of December 31,
	2022	2023
Trip.com	38	48
Cjia Group	26	16
Others	7	13
Total	71	77

Schedule of significant related party transactions


	Years Ended December 31,
	2021	2022	2023
Commission expenses to Trip.com	99	55	260
Lease expenses to Trip.com	19	19	19
Lease expenses to Cjia Group	12	31	37
Service fee to Huali Jinshi	42	—	—
Brand use fee, reservation fee and other related service fee to Accor	22	—	—
Goods sold and service provided to Cjia Group	11	4	17
Loan payment to Hitone	5	—	—
Service fee from Trip.com	62	93	112
Service fee from Accor	3	—	—
Service fee from Sheen Star	5	4	5
Service fee from Azure	—	5	17
Sublease income from Lianquan	10	12	10
Sublease income from Cjia Group	6	5	5
Interest income from Sheen Star	—	—	10
Business acquisition of CitiGO from Cjia Group	783	—	—
Business acquisition of one individual company from Cjia Group	51	—	—

EARNINGS (LOSSES) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2023

EARNINGS (LOSSES) PER SHARE

Schedule of computation of basic and diluted losses per share


	Years Ended December 31,
	2021	2022	2023
Net (loss) income attributable to ordinary shareholders — basic	(465)	(1,821)	4,085
Net (loss) income attributable to ordinary shareholders — diluted	(465)	(1,821)	4,205
Weighted average ordinary shares outstanding — basic	3,114,124,244	3,111,196,757	3,183,163,131
Incremental weighted-average ordinary shares from assumed exercise of share options and nonvested restricted stocks using the treasury stock method	—	—	44,331,080
Dilutive effect of convertible senior notes	—	—	123,927,000
Weighted average ordinary shares outstanding — diluted	3,114,124,244	3,111,196,757	3,351,421,211
Basic (losses) earnings per share	(0.15)	(0.59)	1.28
Diluted (losses) earnings per share	(0.15)	(0.59)	1.25

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


	As of December 31,
	2021	2022	2023
Outstanding employee options and nonvested restricted stocks	53,696,490	76,939,150	53,132,230
Shares of convertible senior notes	226,827,410	120,601,000	—
Total	280,523,900	197,540,150	53,132,230

EARNINGS (LOSSES) PER SHARE - Computation of diluted earnings (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
EARNINGS (LOSSES) PER SHARE
Securities which could potentially dilute basic earnings per share which were excluded from the computation of diluted earnings per share	53,132,230	197,540,150	280,523,900
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	53,132,230	76,939,150	53,696,490
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

INVESTMENTS - Equity securities with readily determinable fair values (Details) - Accor Hotels ("Accor") ¥ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)
Investments
Cash consideration	¥ 2,198
Gain realized	¥ 516

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

HOTEL OPERATING COSTS (Tables)

12 Months Ended

Dec. 31, 2023

HOTEL OPERATING COSTS.

Schedule of hotel operating costs


	Years Ended December 31,
	2021	2022	2023
Rents	3,900	3,927	4,290
Utilities	507	603	685
Personnel costs	3,022	3,683	4,684
Depreciation and amortization	1,413	1,414	1,329
Consumable, food and beverage	969	1,026	1,327
Others	1,471	1,607	2,026
Total	11,282	12,260	14,341

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Schedule Of Property Plant And Equipment Useful Life [Table Text Block]


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
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, 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, 2023	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	231	—	—
Available-for-sale debt securities	—	—	281
Employee benefit plan assets	17	—	—

Schedule of assets measured at fair value and lossess recognized


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


As of December 31, 2023		Fair Value Measurements at Reporting Date Using
		Significant Unobservable	Total Loss for
Description	Fair Value	Inputs (Level 3)	the Year
Property and equipment	70	70	52
Operating lease right-of-use assets	309	309	228
Intangible assets	236	236	166
Long-term investment	113	113	66
Goodwill	—	—	4

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Summary of income (loss) before income taxes


	Years Ended December 31,
	2021	2022	2023
PRC including Hong Kong and Taiwan	617	(483)	5,833
Germany	(632)	(410)	(463)
Other	(393)	(713)	(21)
Total	(408)	(1,606)	5,349

Schedule of tax expense (benefit)


	Years Ended December 31,
	2021	2022	2023
Current Tax	555	475	1,175
Deferred Tax	(543)	(268)	29
Total	12	207	1,204

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


	Years Ended December 31,
	2021		2022		2023
PRC statutory tax rate	25	%	25	%	25	%
Tax effect of non-deductible expenses and non-taxable income in determining taxable profit	(6)	%	(6)	%	2	%
Effect of different tax rate of group entities operating in other jurisdictions	(6)	%	(10)	%	(4)	%
Effect of change in valuation allowance	(24)	%	(15)	%	(0)	%
Effect of tax holiday	9	%	1	%	(1)	%
Effect of cash dividends	(8)	%	(6)	%	1	%
Effect of excess tax benefit of share-based rewards	7	%	(2)	%	(0)	%
Effective tax rate	(3)	%	(13)	%	23	%

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


	Years Ended December 31,
	2021	2022	2023
Aggregate amount	37	22	60
Per share effect—basic	0.01	0.01	0.02
Per share effect—diluted	0.01	0.01	0.02

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


	As of December 31,
	2022	2023
Deferred tax assets:
Net loss carryforward	1,678	1,289
Deferred revenue	349	454
Long-term assets	303	399
Bad debt provision	59	80
Accrued payroll	41	(10)
Other accrued expenses	(9)	74
Share-based compensation	31	33
Others	150	198
Valuation allowance	(731)	(675)
Total deferred tax assets, net of valuation allowance	1,871	1,842
Deferred tax liabilities:
Fair value adjustment for building, land use rights and identified intangible assets due to acquisition	1,596	1,593
Others	40	51
Total deferred tax liabilities	1,636	1,644
Net deferred tax assets	235	198
Analysis as:
Deferred tax assets	1,093	1,043
Deferred tax liabilities	858	845
Net deferred tax assets	235	198

Summary of movement of the valuation allowance


	Years Ended December 31,
	2021	2022	2023
Balance at the beginning of the year	(369)	(466)	(731)
Provided	(151)	(338)	(145)
Reversed	37	41	165
Written off	17	32	36
Balance at the end of the year	(466)	(731)	(675)

Schedule of unrecognized tax benefits

CONSOLIDATED BALANCE SHEETS ¥ in Millions, $ in Millions	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 6,946	$ 978	¥ 3,583
Restricted cash	764	108	1,503
Short-term investments	2,189	308	1,788
Accounts receivable, net	755	106	1,113
Loan receivables - current, net	184	26	134
Amounts due from related parties, net	¥ 210	$ 30	¥ 178
Loan receivables, net of RMB3 and RMB3 as of December 31, 2022 and June 30, 2023 respectively	Related party	Related party	Related party
Inventories	¥ 59	$ 8	¥ 70
Other current assets, net	949	134	809
Total current assets	12,056	1,698	9,178
Property and equipment, net	6,097	859	6,784
Intangible assets, net	5,280	744	5,278
Operating lease right-of-use assets	25,658	3,614	28,970
Finance lease right-of-use assets	2,171	306	2,047
Land use rights, net	181	25	199
Long-term investments	2,564	361	1,945
Goodwill	5,318	749	5,195
Amounts due from related parties	¥ 25	$ 3	¥ 6
Other Receivable, after Allowance for Credit Loss, Noncurrent, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]	Related Party [Member]
Loan receivables, net	¥ 163	$ 23	¥ 124
Other assets, net	663	93	688
Deferred income tax assets	1,043	147	1,093
Assets held for sale	2,313	326
Total assets	63,532	8,948	61,507
Current liabilities:
Short-term debt and current portion of long-term debt	4,049	570	3,288
Accounts payable	1,019	143	1,171
Amounts due to related parties	¥ 77	$ 11	¥ 71
Other Liability, Current, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]	Related Party [Member]
Salary and welfare payables	¥ 1,067	$ 150	¥ 657
Deferred revenue	1,637	231	1,308
Operating lease liabilities, current	3,609	508	3,773
Finance lease liabilities, current	45	6	41
Accrued expenses and other current liabilities	3,261	459	2,337
Dividends payable	2,085	294
Income tax payable	562	78	500
Total current liabilities	17,411	2,450	13,146
Long-term debt	1,265	179	6,635
Operating lease liabilities, non-current	24,215	3,411	27,637
Finance lease liabilities, non-current	2,697	380	2,513
Deferred revenue	1,072	151	828
Other long-term liabilities	1,118	157	977
Retirement benefit obligations	124	18	110
Deferred income tax liabilities	845	119	858
Liabilities held for sale	2,536	358
Total liabilities	51,283	7,223	52,704
Commitments and contingencies (Note 23)
Equity:
Ordinary shares (US$0.00001 par value per share; 80,000,000,000 shares authorized; 3,265,433,590 and 3,210,392,530 shares issued as of December 31, 2022 and 2023, and 3,112,413,730 and 3,159,046,350 shares outstanding as of December 31, 2022 and 2023, respectively)	0	0	0
Treasury shares (153,019,860 and 51,346,180 shares as of December 31, 2022 and 2023, respectively)	(906)	(128)	(441)
Additional paid-in capital	11,861	1,671	10,138
Retained earnings	794	112	(1,200)
Accumulated other comprehensive income	386	54	232
Total H World Group Limited shareholders' equity	12,135	1,709	8,729
Noncontrolling interest	114	16	74
Total equity	12,249	1,725	8,803
Total liabilities and equity	¥ 63,532	$ 8,948	¥ 61,507

SCHEDULE I FINANCIAL INFORMATION FOR PARENT COMPANY - BALANCE SHEETS (Parenthetical) (Details) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
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	3,210,392,530	3,265,433,590
Ordinary shares, shares outstanding	3,159,046,350	3,112,413,730
Treasury shares, shares	51,346,180	153,019,860
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	3,210,392,530	3,265,433,590
Ordinary shares, shares outstanding	3,159,046,350	3,112,413,730
Treasury shares, shares	51,346,180	153,019,860