China-based hotel management company H World Group has recorded a net income of 1.35bn yuan ($190.4m) in the third quarter (Q3) of 2023, as against a net loss of 710m yuan in the same quarter a year ago.
The net income attributable to the company for the latest quarter ending on 30 September 2023 was 1.3bn yuan compared with a net loss of 717m yuan in the corresponding period of 2022.
As per the company’s unaudited financial results released for Q3 2023, total revenue stood at 6.28bn yuan, marking an increase of around 54% from 4.09bn yuan in Q3 2022.
The company reported basic earnings per share (EPS) in Q3 2023 of 0.42 yuan as against a loss of 0.23 yuan in the comparable period a year ago, while diluted EPS was 0.31 yuan against a loss of 0.23 yuan in Q3 2022.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) (non-GAAP) in Q3 2023 were 2.18bn yuan compared with 491m yuan in the same period a year earlier.
H World’s blended revenue per available room (RevPAR) for the quarter was 278 yuan while it was 193 yuan in the previous year quarter.
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The occupancy rate increased from 76% in Q3 2022 to 85.9% in Q3 2023.
H World CEO Jin Hui said: “We continue to outperform the China lodging industry, delivering robust operational results. We are pleased to report another quarter of strong RevPAR recovery in China, supported by China’s summer holiday travel season as well as continuous business travel recovery.
“For our Legacy-Huazhu business, RevPAR in Q3 2023 recovered to 129% of the Q3 2019 level. While the RevPAR growth continued to be primarily driven by ADR growth, occupancy recovery also improved sequentially this quarter. Our ADR growth reflected a combination of product mix change and product upgrades, which should continue to support our ADR in the future.”
The company, as of the latest quarter, operated a total of 9,157 hotels with 885,756 rooms, including 129 hotels from its subsidiary DH.
For the fourth quarter of 2023, the company expects its revenue growth to be between 41% and 45%.