H World Group, a Chinese-origin multi-brand hotels operator, has registered revenue of 4.5bn yuan ($652m) in the first quarter (Q1) of the fiscal year (FY) 2023.
This reflects a 67.1% year-over-year (YoY) and a 20.9% sequential increase in revenue from 2.68bn yuan ($377.88m) recorded in Q1 of FY2022.
The revenue of “leased and owned hotels” and “manachised and franchised hotels” for the reported quarter, which ended on 31 March 2023, was 2.9bn yuan $410m and 1.6bn yuan, $2.3m respectively.
The company’s net income for Q1 2023 stood at 990m yuan $1.3m, compared to a net loss of 630m yuan $0.9m in Q1 2022.
For this quarter of FY23, H World’s non-GAAP earnings before interest, taxes, depreciation, and amortisation (EBITDA) was 1.6bn yuan $2.3m.
The company’s hotel turnover, which is the total transaction value of room and non-room revenue from H World hotels, was up by 71.3% YoY to 16.2bn yuan $2.29bn in Q1 2023.
H World CEO Jin Hui said: “For our Legacy-Huazhu business, RevPAR in Q1 2023 recovered to 118% of the Q1 2019 level. Broken down into monthly numbers, our RevPAR in January, February and March 2023 recovered to 96%, 140% and 120% of the 2019 levels of the corresponding months, respectively.
“The strong recovery was largely driven by the ADR growth in the first quarter due to pent-up demand, a combination of product mix change and continued product upgrades, as well as market penetration and synergy through regional offices.
“Regarding our business outside China, our Legacy-DH business continued its promising business recovery. Q1 2023 Blended RevPAR recovered to 94% of the 2019 level.”
Some of the H World’s brands are Elan Hotel, Hi Inn, HanTing Hotel, Orange Hotel, JI Hotel, Starway Hotel, Madison Hotel, Joya Hotel and Blossom House, among others.
The company, as on 31 March 2023, had a total of 8,592 hotels in operation.
Meanwhile, H World’s subsidiary Legacy-Huazhu operates 8,464 hotels, of which 620 are leased and owned hotels and 7,844 manachised and franchised hotels, as of 31 March 2023.
For the next Q2 of FY2023, the company has forecasted a 51% to 55% of growth in the revenues, compared with Q2 FY22.