H World Group Ltd (HTHT) 2025 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to the H World Q1 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加 H World 2025 年第一季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to your speaker today, Jason Chen, Head of IR. Please go ahead.

現在我想將會議交給今天的演講者，投資者關係主管 Jason Chen。請繼續。

Thank you. Good morning and good evening, everyone. Thanks for joining us today. Welcome to H World Group 2025 first-quarter earnings conference call. Joining us today is our Chairman, Mr. Ji Qi; our CEO, Mr. Jin Hui; our CFO, Ms. Chen Hui; and our CSO, Ms. He Jihong. Following their prepared remarks, management will be available to answer your questions.

謝謝。大家早安，晚上好。感謝您今天加入我們。歡迎參加 H World Group 2025 年第一季財報電話會議。今天與我們一起出席的有我們的董事長季琦先生、我們的執行長金輝先生、我們的財務長陳暉女士和我們的首席策略長何繼紅女士。在發表準備好的發言後，管理階層將回答您的問題。

Before we continue, please note that the discussion today will include forward-looking statements made under the Safe Harbor provision of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC. H World Group does not undertake any obligations to update any forward-looking statements, except as required under applicable laws.

在我們繼續之前，請注意，今天的討論將包括根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，我們的結果可能與今天表達的觀點有重大不同。我們向美國證券交易委員會提交的公開文件中概述了許多潛在的風險和不確定性。H World Group 不承擔更新任何前瞻性聲明的義務，除非適用法律要求。

On the call today, we will also mention adjusted financial measures during the discussion of our performance. Reconciliation of those measures to comparable GAAP information can be found in our earnings release that was distributed earlier today.

在今天的電話會議上，我們還將在討論績效時提及調整後的財務指標。在我們今天早些時候發布的收益報告中找到這些指標與可比較 GAAP 資訊的對帳情況。

As a reminder, this conference call is being recorded. The webcast of this conference call as well as supplementary slide presentation is available at ir.hworld.com.

提醒一下，本次電話會議正在錄音。本次電話會議的網路直播以及補充投影片簡報可在 ir.hworld.com 上找到。

With that, now I will hand over the call to our CEO, Mr. Jin Hui, to discuss our business performance in the first quarter of 2025. Mr. Jin, please.

說完這些，現在我將把電話交給我們的執行長金輝先生，討論我們 2025 年第一季的業務表現。請金先生。

Hello, everyone. Thanks for joining H World first-quarter of 2025 earnings conference call.

大家好。感謝您參加 H World 2025 年第一季財報電話會議。

First of all, I'd like to share some of our observations on the industry during the quarter. In the first quarter, we saw the overall traveling demand was still resilient and grow steadily according to the data released by railway and airline industries. However, RevPAR remained under some pressure, especially on ADR. We believe it was largely due to the overall supply surge last year.

首先，我想分享一下我們對本季產業的一些觀察。一季度，從鐵路、航空等產業發布的數據來看，整體出行需求依然韌性十足，穩定成長。然而，RevPAR 仍然面臨一些壓力，尤其是 ADR。我們認為這主要是由於去年整體供應量激增所致。

Therefore, our RevPAR declined by 3.9% year over year with ADR decreased by 2.6% year over year and occupancy rate declined slightly by 1 percentage points. The slight decline in occupancy rate was mainly because those hotels newly opened in the last several quarters were still ramping up.

因此，我們每間可用的客房收入 (RevPAR) 年減 3.9%，平均房價 (ADR) 年減 2.6%，入住率小幅下降 1 個百分點。入住率略有下降主要是因為前幾季新開幕的飯店仍在成長。

Entering into the second quarter, the tariff issues started from April brought some uncertainties to the market outlook. Also, we saw some temporary solution on tariff issues recently. We remain cautious on potential future volatilities and uncertainties.

進入第二季度，從4月開始的關稅問題為市場前景帶來了一些不確定性。另外，我們最近看到了一些針對關稅問題的臨時解決方案。我們對未來潛在的波動和不確定性保持謹慎。

However, on the leisure traveling front, we are still relatively optimistic as we saw the overall leisure traveling demand and the willingness remains strong. For instance, we saw both number of travelers and the total spending grew mid- to high-single-digit year over year for Chinese New Year holiday, [Qingming] Festival holiday, and the Labor Day holidays.

不過，在休閒旅遊方面，我們仍然相對樂觀，因為我們看到整體休閒旅遊需求和意願仍然強勁。例如，我們發現春節、清明節、勞動節等假日的出境旅遊人數和總消費金額較去年同期均出現了中高個位數的成長。

More importantly, according to third-party data, the industry RevPAR recorded a positive year-over-year growth during the Labor Day holiday. Therefore, we have been developing differentiated strategies on products and service offering with targeted sales and marketing program to better capture the rising leisure demand, especially those emerging travelers such as silver health tourist and inbound tourists.

更重要的是，根據第三方數據，在勞動節假期期間，產業RevPAR年實現正成長。因此，我們一直在製定產品和服務的差異化策略，並製定有針對性的銷售和行銷計劃，以更好地滿足不斷增長的休閒需求，特別是老年健康遊客和入境遊客等新興遊客的需求。

Also, we are still facing some uncertainties and challenges. We will insist on implementing our core strategy with long-term focus. With that, I will share with you more data on our operational performance during the quarter.

但同時，我們也面臨一些不確定性和挑戰。我們將堅持長期實施核心策略。藉此，我將與大家分享更多有關我們本季營運表現的數據。

Please turn to page 4. In the first quarter of 2025, we opened 695 hotels and closed 155 hotels, respectively. Pipeline was 2,865 hotels by quarter-end. The slight quarter-over-quarter decline is mainly due to fast new hotels opening and proactive pipeline clearance to improve quality. The new signings in the quarter remained stable and healthy.

請翻到第 4 頁。2025年第一季度，我們分別開業695家飯店和關閉155家飯店。截至本季末，籌備中的飯店數量為 2,865 家。環比略有下降主要是由於新酒店快速開業以及積極清理現有酒店以提高品質。本季的新簽約保持穩定和健康。

Please turn to page 5. The proportion of upper-mid-scale and above hotels increased meaningfully in our pipeline by the end of first quarter. It was mainly due to the fast new signings of our upper-mid hotels as well as the different lines of construction period and timing of new hotel openings. However, in terms of the hotel in operation, limited service segment hotels remains our core markets.

請翻到第5頁。截至第一季末，我們飯店儲備中高檔及以上飯店的比例顯著增加。主要是由於我們中高端酒店新簽約速度較快，以及新酒店建設週期和開業時間各有不同。然而，就營運的飯店而言，有限服務型飯店仍然是我們的核心市場。

As I mentioned earlier, we maintained a strong growth momentum in the upper mid-scale segment. Please turn to page 6. As of the first quarter, the number of upper-mid-scale hotels in operation increased by 36% year over year to 933. And the pipeline grew by 22% year over year to 523.

正如我之前提到的，我們在中高端市場保持了強勁的成長勢頭。請翻到第 6 頁。截至第一季，營運中的中高檔飯店數量年增36%至933家。管道數量年增 22%，達到 523 條。

Over the past several years, we have been seeing a clear trend that customers are seeking high-quality products and services with good value for money. Therefore, we have been continuously upgrading products and our core brands to better meet the customers' evolving demand.

過去幾年來，我們看到一個明顯的趨勢，即客戶正在尋求物有所值的高品質產品和服務。因此，我們一直在不斷升級產品和核心品牌，以更好地滿足客戶不斷變化的需求。

Please turn to page 7. The proportion of newer products and our core brands, including HanTing, Ji Hotel, and Orange has been increasing constantly.

請翻到第 7 頁。新產品和漢庭、全季、桔子等核心品牌的比重不斷提升。

In terms of regional expansion, our penetration in the lower-tier cities continued progressing. Please turn to page 8. At the end of first quarter of 2025, 54% of the company's hotels in pipeline were located in Tier-3 and below cities, 11 percentage points higher than the proportion in operating hotels. Additionally, by the first quarter, we are now covering 1,394 cities and counties, 104 more than a year ago.

在區域擴張方面，我們在低線城市的滲透率持續提升。請翻到第8頁。截至2025年第一季末，公司在建飯店中有54%位於三線及以下城市，比營運飯店的比例高出11個百分點。此外，截至第一季度，我們已覆蓋 1,394 個市縣，比一年前增加了 104 個。

Membership program and direct sales capability are the most critical aspects for our business to achieve long-term sustainable development. Please turn to page 9. At the end of first quarter of 2025, our member base further increased to nearly 280 million. Room nights generated through the central reservation system counted for 65.1%, representing an increase of 5.4 percentage points year over year.

會員計畫和直銷能力是我們業務實現長期永續發展的最關鍵因素。請翻到第 9 頁。截至2025年第一季末，我們的會員規模進一步增加至近2.8億。透過中央預訂系統產生的間夜量佔65.1%，較去年同期上升5.4個百分點。

All above concludes the first quarter of 2025 operational updates for Legacy-Huazhu. Now I will hand over the call to our CSO, Ms. He Jihong, to give an update on Legacy-DH. Thank you.

以上就是萊格賽華住 2025 年第一季的營運更新內容。現在我將把電話交給我們的首席策略官何繼紅女士，請她介紹 Legacy-DH 的最新進展。謝謝。

Thank you, Jin Hui. Please turn to page 10. In first quarter 2025, RevPAR of Legacy-DH improved 12.7% to EUR65 with ADR improved 2.8% and occupancy increased 5.3 percentage points. This increase of RevPAR is a mixture of different markets. We have seen particularly strong performance in North Africa and Middle East.

謝謝你，金輝。請翻到第10頁。2025 年第一季度，Legacy-DH 的 RevPAR 成長 12.7% 至 65 歐元，ADR 成長 2.8%，入住率成長 5.3 個百分點。RevPAR 的成長是不同市場共同作用的結果。我們看到北非和中東地區的表現特別強勁。

Please turn to page 11. In first quarter 2025, we did several transactions to change the lease hotel contracts to franchise contracts. Therefore, our managed and franchised hotel increased to 46%. This is a significant improvement compared to 38% in the first quarter 2024. The percentage of asset-light hotels in our pipeline is 57% in first quarter 2025, which is also an improvement compared to the same period last year.

請翻到第11頁。2025年第一季度，我們進行了數筆交易，將租賃酒店合約轉變為特許經營合約。因此，我們管理和特許經營的酒店比例增加到了46%。與 2024 年第一季的 38% 相比，這是一個顯著的改善。2025年第一季度，我們籌備中的輕資產飯店比例為57%，與去年同期相比也有所提升。

With this, I conclude the discussion about Legacy-DH, and I will turn to CFO, Ms. Chen Hui, for financial performance.

關於Legacy-DH的討論到此結束，接下來請CFO陳暉女士報告財務表現。

Thank you, Jihong. Good evening and good morning, everyone. Let me walk you through our financial review for the first quarter of 2025.

謝謝你，季紅。大家晚上好，早安。讓我向您介紹我們 2025 年第一季的財務回顧。

Please turn to page 13. We continued expanding our hotel network. Number of rooms increased 20% year over year to over 1.1 million by the end of the quarter. Hotel turnover in the first quarter grew 14% year over year.

請翻到第13頁。我們繼續擴大我們的酒店網絡。截至本季末，客房數量年增 20%，達到 110 多萬間。第一季飯店營業額較去年同期成長14%。

Revenue grew steadily in the quarter. Please turn to page 14. Our group revenue increased 2.2% year over year to RMB5.4 billion, in line with our guidance. Revenue from Legacy-Huazhu grew 5.5% year over year while DH revenue decreased 11.3% year over year, mainly due to the transformation of 10 leased hotels to franchise hotels during the quarter.

本季營收穩定成長。請翻到第14頁。我們的集團營收年增2.2%至人民幣54億元，符合我們的預期。Legacy-Huazhu 的營收年增 5.5%，而 DH 營收年減 11.3%，主要由於本季度有 10 家租賃飯店轉型為特許經營飯店。

However, our manachised and franchised business achieved a robust growth of 21.1% year over year, at the high end of our guidance. The strong manachised and franchised revenue growth was driven by our strong network expansion. As a result, our revenue contribution from our asset-light model further enlarged to 46% for the group and 55% for the Legacy-Huazhu, as shown on page 15.

然而，我們的管理和特許經營業務實現了同比 21.1% 的強勁增長，達到了我們預期的高位。強勁的管理和特許經營收入成長得益於我們強勁的網路擴張。因此，我們輕資產模式的收入貢獻進一步擴大至集團的 46% 和華住的 55%，如第 15 頁所示。

Moving to cost and expense side. Both hotel operating costs and SG&A expenses were well managed during the quarter. Please turn to page 16. In the first quarter, hotel operating costs only grew by 1.1% year over year, slower than our revenue growth, thanks to our continued asset-light transformation.

轉向成本和費用方面。本季度酒店營運成本和銷售、一般及行政費用均得到良好管理。請翻到第16頁。一季度，由於我們持續的輕資產轉型，飯店營業成本較去年同期僅成長1.1%，低於營收成長。

Total SG&A expenses decreased 1.8% year over year or reduced by 4.6% year over year, excluding SBS -- SBC, mainly benefiting from 11.1% year over year. SG&A expenses decreased from Legacy-DH as a result of the structuring and the cost optimization started the second half last year.

總銷售、一般及行政費用較去年同期下降1.8%，扣除SBS-SBC後較去年同期下降4.6%，主要受惠於年減11.1%的下降。由於去年下半年開始的結構調整和成本優化，銷售、一般及行政費用較 Legacy-DH 有所下降。

Our group's adjusted EBITDA grew 5.3% year over year to RMB1.5 billion in the fourth quarter, of which Legacy-Huazhu's adjusted EBITDA increased 5.8% year over year to RMB1.6 billion.

第四季度，集團調整後EBITDA年增5.3%至人民幣15億元，其中Legacy-Huazhu調整後EBITDA年增5.8%至人民幣16億元。

Moving to our cash flow and liquidity position on page 17. In the first quarter, we generated RMB580 million operating cash flow. As of the quarter end, the group had RMB11.8 billion cash and cash equivalents and was in a solid cash -- net cash position of RMB6.5 billion.

轉到第 17 頁的現金流量和流動性狀況。一季度，我們實現營運現金流5.8億元。截至本季末，集團擁有現金及現金等價物人民幣118億元，現金狀況穩健，淨現金狀況為人民幣65億元。

Lastly, turn to page 18 on guidance. For the second quarter of 2025, we expect our group revenue to grow 1% to 5% compared to the same quarter last year and 3% to 7% if excluding DH. The manachised and franchised revenue is expected to grow in the range of 18% to 22% compared to the same quarter last year.

最後，請翻到第 18 頁的指導。對於 2025 年第二季度，我們預計集團營收將比去年同期成長 1% 至 5%，如果不包括 DH，則成長 3% 至 7%。與去年同期相比，管理和特許經營收入預計將成長 18% 至 22%。

With that, we are ready to take your questions. Operator, please open the line for Q&A.

現在，我們已準備好回答您的問題。接線員，請開通問答專線。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

[Candice Chang], Bank of America.

[Candice Chang]，美國銀行。

(spoken in Chinese)

（用中文說）

Let me translate my questions into English. I have two questions. My first question is about RevPAR expectations. So what is management's latest expectations on RevPAR for 2Q '25 and also full year 2025? This is my first question.

讓我將我的問題翻譯成英文。我有兩個問題。我的第一個問題是關於 RevPAR 預期。那麼管理階層對 2025 年第二季和 2025 年全年的 RevPAR 的最新預期是什麼？這是我的第一個問題。

My second question is about the business travel. So the business travel has been under pressure even though off an easy base last year. Could management share with us any specific weakness behind -- any specific reasons behind the weakness? Thank you very much.

我的第二個問題是關於商務旅行的。因此，儘管去年商務旅行基礎較輕鬆，但仍面臨壓力。管理階層能否與我們分享背後的具體弱點──弱點背後的具體原因？非常感謝。

(interpreted) So let me do the translation for you. So in terms of the first question regarding to the RevPAR. So as we mentioned in our prepared remarks, so basically, the tariff issue that happened in April add some of the uncertainties and volatilities for the overall market outlook. But again, overall, year to date, we still see the demand is growing steadily. But the business of course, because of the tariff, will -- under some kind of the pressures, but we are trying very hard to navigate the difficulties and trying to increase our RevPAR to a more stabilized level.

（翻譯）那麼讓我來為你翻譯一下。第一個問題與 RevPAR 有關。正如我們在準備好的評論中提到的那樣，基本上，四月份發生的關稅問題為整體市場前景增加了一些不確定性和波動性。但總體而言，今年迄今為止，我們仍然看到需求穩定成長。但由於關稅的原因，業務當然會面臨某種壓力，但我們正在努力克服困難，並試圖將我們的 RevPAR 提高到更穩定的水平。

However, on the leisure traveling demand side from various data, as we observed year to date, so we think the leisure travel demand still being very strong and still growing very steadily as the people's willingness to traveling is still very strong. So in terms of the number -- in terms of the RevPAR for the second quarter, we think the RevPAR will decline at low-single-digit but narrowed on a sequential basis. And for the full year, again, because of the uncertainties, there are some of the volatilities and uncertainties ahead. We will try our best to achieve our full-year guidance.

然而，從各種數據來看，就休閒旅遊需求方面而言，正如我們今年迄今所觀察到的，我們認為休閒旅遊需求仍然非常強勁，並且仍然在穩步增長，因為人們的旅遊意願仍然非常強烈。因此，就數字而言 - 就第二季度的 RevPAR 而言，我們認為 RevPAR 將以低個位數下降，但環比下降幅度將收窄。就全年而言，由於存在不確定性，未來仍存在一些波動性和不確定性。我們將盡最大努力實現全年目標。

And in terms of the second question on the business traveling, we don't think it is the demand issue, and it's more like the supply issues as over the last two years, there was a lot of supply increase which adds a lot of pressures to the RevPAR, especially on the ADR. However, we try to leverage more on our corporate customers and the B2B business to overcome some of the uncertainties and a shortage of the demand from the individual traveling.

關於商務旅行的第二個問題，我們認為這不是需求問題，而更像是供應問題，因為在過去兩年中，供應量大幅增加，這給 RevPAR 增加了許多壓力，尤其是 ADR。然而，我們試圖更多地利用我們的企業客戶和B2B業務來克服一些不確定性和個人旅行需求的不足。

Lydia Ling, Citi.

花旗銀行的 Lydia Ling。

(spoken in Chinese) I have two questions. The first one is on the DH side. And so we saw some progression on asset-light strategy in the first quarter. So what's the further plan on the DH strategy to further improve the profitability? And for example, how many leased and owned hotels you plan to transfer to franchised looking ahead?

（用中文說）我有兩個問題。第一個是在DH方面。因此，我們在第一季看到了輕資產策略的一些進展。那麼，DH策略的進一步計劃是什麼，以進一步提高獲利能力？例如，您計劃未來將多少家租賃和自有飯店轉為特許經營？

And my second question is more on the industry supply, and so how you evaluate the competition landscape currently in the limited service. And so how -- and we see some -- the pipeline sequential decline in the first quarter. So what's the reason? And how is the price sentiment on the opening so far? Thank you.

我的第二個問題是關於產業供應，您如何評估目前有限服務下的競爭格局。那麼，我們看到第一季管道數量出現環比下降。那麼原因是什麼呢？到目前為止開盤時的價格情緒如何？謝謝。

Okay. Let me take the first question about the DH. So to improve the profitability of the DH -- Legacy-DH business is, of course, our priority. There are different measures and different strategies. Asset-light transaction is one of the part that we can reduce negative net.

好的。讓我來回答有關 DH 的第一個問題。因此，提高 DH——Legacy-DH 業務的獲利能力當然是我們的首要任務。有不同的措施和不同的策略。輕資產交易是減少負淨額的部分之一。

So we will continue to -- we are very happy that we finished the transaction of 10 hotels in the first quarter, and we will continue to look for opportunities. There are several discussions currently in the pipeline, and we will disclose as and when it comes through.

因此，我們將繼續——我們很高興在第一季完成了 10 家酒店的交易，並且我們將繼續尋找機會。目前有幾項討論正在進行中，一旦有結果我們將予以披露。

Other than an asset-light transaction, we are also looking -- further looking into reducing our overhead costs, restructuring our business, streamline our processes. So first quarter, you see still a negative EBITDA contribution. This is because we continued our restructuring efforts. And first quarter is traditionally a very weak first quarter as well.

除了輕資產交易之外，我們還在進一步研究降低管理費用、重組業務、簡化流程。因此，第一季度，您仍然會看到 EBITDA 貢獻為負。這是因為我們繼續進行重組努力。傳統上，第一季也是一個非常疲軟的第一季。

So we are confident that with time, especially with the second and third quarter coming, our profitability, especially adjusted EBITDA will increase over the time.

因此，我們相信，隨著時間的推移，特別是第二季和第三季的到來，我們的獲利能力，特別是調整後的 EBITDA 將隨著時間的推移而增加。

(interpreted) Okay. So to answer your second question in terms of the demand-supply dynamics for the industry, so as you may notice that -- I know a lot of people are concerned about our RevPAR decline or the RevPAR pressure because of the oversupply or the supply surge over the past several years.

（翻譯）好的。因此，回答您關於行業供需動態的第二個問題，您可能注意到——我知道很多人都擔心我們的 RevPAR 下降或 RevPAR 壓力，因為過去幾年供應過剩或供應激增。

But let me share with you, H World has been doing, what we call, the reform of the overall supply side -- reform of the supply side of the China lodging industry. And that's -- we have been building several capabilities to ensure that our franchises still achieve a pretty good return in terms of the opening of the hotels.

但我要跟大家分享一下，H World一直在做我們所謂的整體供給面的改革——中國住宿業的供給面改革。這就是——我們一直在建立多種能力，以確保我們的特許經營酒店在開業方面仍然能夠獲得相當不錯的回報。

First of all, from the franchisee sentiment front, there are several key costs. One is the fixed cost. As you may see that over the past several years, the biggest fixed cost is the rental cost, which has been gradually declining over the past several years. And another key cost of running a hotel is the OpEx. So the OpEx is the combination of the label cost, sales and marketing costs as well as the supplies cost.

首先，從加盟主情緒方面來說，有幾個關鍵的成本。一是固定成本。大家可以看到，在過去幾年裡，最大的固定成本就是租金成本，而租金成本在過去幾年一直在逐漸下降。經營飯店的另一個主要成本是營運支出。因此，營運成本是標籤成本、銷售和行銷成本以及供應成本的總和。

However, H World has been putting a lot of efforts to improve the efficiency -- operational efficiency and achieve the lowest cost and trying to be leading in the overall industry and by leveraging on our very strong capability of supply chain management, our loyalty program or membership program as well as the technology capability. So in conclusion, what I can share with you now is the overall sentiment has been quite stable and healthy for our existing franchisees.

然而，H World 一直在努力提高效率——營運效率，實現最低成本，並試圖在整個行業中保持領先地位，並利用我們強大的供應鏈管理能力、忠誠度計劃或會員計劃以及技術能力。總而言之，我現在可以與大家分享的是，我們現有加盟主的整體情緒相當穩定且健康。

Thank you. Next question, please.

謝謝。請回答下一個問題。

Dan Chee, Morgan Stanley.

摩根士丹利的 Dan Chee。

(spoken in Chinese)

（用中文說）

Thank you management for the opportunity. My first question is about DH. After restructuring program in second half 2024, SG&A costs of DH declined 11% year on year. Is there still any one-off restructuring costs embedded in this quarter?

感謝管理層給予的機會。我的第一個問題是關於 DH 的。2024年下半年重組計畫實施後，區域暖氣的銷售、一般及行政費用較去年同期下降11%。本季是否仍有一次性重組成本？

And going forward, can we assume this quarter's SG&A is clean and normalized? After the cost savings in SG&A together with the 11 asset-heavy hotels changing to asset-light, adjusted EBITDA loss still widened a little bit by RMB11 million. What's the main reason for such hotel operating cost increase?

展望未來，我們能否假設本季的銷售、一般及行政費用是乾淨且正常的？在SG&A成本節省以及11家重資產飯店轉為輕資產飯店後，調整後EBITDA虧損仍小幅擴大1,100萬元。造成飯店營運成本增加的主要原因是什麼？

(spoken in Chinese)

（用中文說）

Let me translate my second question. It's about Legacy-Huazhu. So blended RevPAR climbed 3.9% year on year in Q1, but [like-for-like] declined 8.3% year on year. The gap was 4 percentage points. In fourth quarter '24 was also 4 percentage point gap, but this were wider than the previous quarters. What's the reason for the gap widening? Thank you.

讓我翻譯一下我的第二個問題。這是關於 Legacy-Huazhu 的。因此，第一季綜合 RevPAR 年增 3.9%，但年減 8.3%。差距為4個百分點。24 年第四季的差距也達到了 4 個百分點，但比前幾季的差距更大。差距擴大的原因是什麼？謝謝。

Thank you, Dan. Let me take the first question about DH. So the restructuring is still ongoing. Last year, we announced 30% reduction of overhead costs in one go. And that kind of cost effect it still needs to be reflected gradually in our costs in this year quarter by quarter because some of the restructuring efforts are not completely done yet, even from the last year's restructuring measures. And this year, we continue some of the -- not this kind of 30% one-off, but we still identify possibilities in different departments, in different processes so that we can continue our effort in streamline.

謝謝你，丹。讓我來回答關於 DH 的第一個問題。因此重組仍在進行中。去年，我們一次宣布削減30%的管理費用。而且這種成本效應仍然需要在今年逐季度的成本中逐漸反映出來，因為一些重組工作甚至從去年的重組措施來看還沒有完全完成。今年，我們繼續進行一些工作——不是這種一次性的 30%，但我們仍在不同部門、不同流程中尋找可能性，以便我們可以繼續努力精簡。

So to your question about whether the numbers and SG&A are clean, as of now, I would say not completely yet. And we will see still some of the effects coming through this year. But we are very sure that with these kind of measures, this will only improve our SG&A in the mid and long term. So please do not look at only really quarter-to-quarter results. We will reflect the whole year when we come to almost the end of our restructuring effort mid of this year.

因此，對於您關於數字和銷售、一般及行政費用是否乾淨的問題，截至目前，我會說還不完全乾淨。今年我們仍將看到一些影響的顯現。但我們非常確信，透過採取這些措施，從中長期來看，這只會改善我們的銷售、一般及行政開支。因此，請不要只專注於季度業績。當我們在今年年中接近重組工作的尾聲時，我們將對全年的情況進行反思。

And to your second question about the first-quarter loss, so there's actually a very special event in the first quarter that caused this higher loss on the paper. We gave up Davos as a hotel for -- as a leased hotel, and we've turned it into franchised hotel. And you know that is a very, very seasonal event. Actually, the whole year of EBITDA focus on this one week and conference effort. So that's why the first-quarter results is very much skewed by this one-time event every year.

關於第一季虧損的第二個問題，第一季實際上發生了一件非常特殊的事件，導致了帳面虧損的增加。我們放棄了達沃斯酒店的形式，將其轉變為租賃酒店，並將其轉變為特許經營酒店。你知道這是一個非常非常季節性的活動。實際上，全年的 EBITDA 都集中在這一周和會議的努力上。這就是為什麼每年第一季的業績都會受到這一次性事件的嚴重影響。

So this year, taking out the Davos event, actually our EBITDA is comparable to last year even with the continued restructuring effort.

因此，今年，除去達沃斯論壇，即使繼續進行重組，我們的 EBITDA 實際上與去年相當。

What I wanted to say with this answer to you is that we are very conscious of our EBITDA commitment, and we are very conscious also in streaming line our unnecessary overhead cost. Please bear with us in the short term. We will still see some of the variation in SG&A and some of the other costs as well. But we are very sure that in the mid and long term, we are on a better way.

我想透過這個答案告訴您，我們非常清楚我們的 EBITDA 承諾，我們也非常清楚精簡不必要的間接成本。請您短期內耐心等待。我們仍會看到銷售、一般及行政費用以及其他一些成本的一些變化。但我們非常確信，從中長期來看，我們正在走上更好的道路。

(interpreted) Okay. To answer your second question regarding to the gap between the blended RevPAR and the like-for-like RevPAR, so you're right. So the like-for-like RevPAR was underperforming compared to the blended RevPAR.

（翻譯）好的。回答您的第二個問題，關於混合 RevPAR 和同類 RevPAR 之間的差距，您是對的。因此，與混合 RevPAR 相比，同類 RevPAR 表現不佳。

There are two reasons behind. One is because of the product -- because we keep upgrading, as we mentioned earlier, we upgraded -- continuously upgraded our products and continuously do clearance of those older versions of products in order to improve the overall product quality. So that's one of the reasons why there was a gap or enlarged the gap between the blended RevPAR and like-for-like RevPAR.

背後有兩個原因。一是因為產品——因為我們不斷升級，正如我們前面提到的，我們不斷升級我們的產品，並不斷清理那些舊版本的產品，以提高整體產品品質。這就是為什麼混合 RevPAR 和同類 RevPAR 之間存在差距或差距擴大的原因之一。

And secondly, in certain area, because of the surge of the supply over the several years, indeed, there were some of the pressure on the RevPAR in both ADR and occupancy rates. But we have already noticed that, and we are doing a lot of optimization in terms of our revenue management to set up a more rational ADR and occupancy rates in these particular regions.

其次，在某些區域，由於這幾年供應量的激增，確實對平均房價和入住率的RevPAR造成了一定的壓力。但我們已經注意到了這一點，並且我們正在收益管理方面做大量的優化，以便在這些特定地區建立更合理的ADR和入住率。

Thank you. Next question please.

謝謝。請問下一個問題。

Simon Cheung, Goldman Sachs.

高盛的 Simon Cheung。

(Operator Instructions)

（操作員指示）

Let me translate that into English. So the first question is in relation to the hotel opening. We noticed that your hotel openings were actually quite fast in the first quarter, almost 700. And that compared to full year of 2,300, that was actually tracking ahead of the momentum last year. Just checking to see whether there's any timing issue here and whether there are going to be some upside risk to the full year 2,300 hotel additional guidance.

讓我把它翻譯成英文。第一個問題與酒店開業有關。我們注意到，你們第一季的飯店開幕速度其實挺快的，差不多有700家。與全年的 2,300 相比，這一增長勢頭實際上超過了去年。只是想檢查這裡是否存在時間問題，以及全年 2,300 家酒店額外指導是否會存在一些上行風險。

And then the second question is in relation to the mid-upscale hotel, whereby I think H World has done a great job in terms of adding the hotels, almost dozens by now. I think you did mention that out of the 1,500 hotels, they are only exposed to 200 cities and have no intention to go into other new cities. Just wondering the strategy for H World and where would they see growth going forward?

第二個問題是關於中高檔飯店，我認為 H World 在增加飯店方面做得很好，現在已經有幾十家了。我想您確實提到過，在 1,500 家酒店中，他們只覆蓋了 200 個城市，並且無意進入其他新城市。只是想知道 H World 的策略以及他們未來的成長方向是什麼？

So I'm very happy to see we achieved a quite good number of hotel new openings in the first quarter as our -- one of the key strategies, we are looking for a high-quality scale growth. And we hope every newly opened hotel can be profitable. And therefore, in terms of the new openings, the quality of the hotel is much important than the purely scale growth.

因此，我很高興看到我們在第一季實現了相當多的新酒店開業，這是我們的關鍵策略之一，我們正在尋求高品質的規模成長。我們希望每家新開幕的飯店都能獲利。因此，對於新開業酒店而言，酒店的品質比單純的規模增長更為重要。

We are not only looking to achieve a leading position in terms of the market share, but also trying to achieve a leading position for each of the brands in different segments. So that we are looking for in the longer term to both achieve in terms of the scale, in terms of the number one or the leading market share. But also in each of different segments, we want to be top one or two, at least for the brand.

我們不僅要爭取在市場佔有率上取得領先地位，還要努力在每個細分領域取得領先地位。因此，從長遠來看，我們希望在規模、市場份額方面都達到第一或領先地位。但在每個不同的領域，我們都希望至少在品牌層面上成為前兩位。

Although we are seeing a pretty good in terms of the new openings and the new signings, but we want to stay at the conservative, not changing the full-year opening target for now. We have been putting a lot of efforts last year -- since last year to break through the upper-mid segment, and I'm very happy to that you're looking in details in terms of our upper-mid segment development over the last several quarters.

儘管我們看到新開幕酒店和新簽約酒店的情況相當不錯，但我們希望保持保守，暫時不改變全年開業目標。自去年以來，我們付出了很多努力來突破中高端市場，我很高興您詳細了解我們過去幾季在中高端市場的發展。

We do see a lot of market opportunity, especially to reform those traditional upper-mid-scale segment. At the current stage, we would like to focus only on Tier-1, Tier-2 cities, especially those prime areas to establish a stronger brand.

我們確實看到了許多市場機會，尤其是改革那些傳統的中高端市場。現階段，我們只想專注於一線、二線城市，特別是那些黃金地段，以建立更強大的品牌。

The demand actually is very concentrated in the Tier-1, Tier-2 cities, especially for those upper-mid segment hotels. Therefore, in those particular areas and cities, we want to take the most prime location to establish the brand. In the longer-term perspective, we are very confident to chase the leading company right now or even surpass them.

事實上，需求主要集中在一線、二線城市，尤其是中高端飯店。因此，在這些特定的地區和城市，我們希望佔據最優越的地理位置來建立品牌。從更長遠的角度來看，我們現在非常有信心追趕領先公司，甚至超越他們。

Thank you. Next question, please.

謝謝。請回答下一個問題。

Sherrie Lynn, CICC.

謝麗·林恩（Sherrie Lynn），CICC。

(spoken in Chinese)

（用中文說）

So this year, we see relative bigger pressure on business demand compared with leisure demand. But meanwhile, why it seems that upper-mid-scale segment performs better on both RevPAR and pipeline?

因此，今年我們認為商務需求的壓力相對休閒需求較大。但同時，為什麼中高端飯店集團在 RevPAR 和通路的表現似乎都比較好呢？

Because, first, our upscale -- upper-mid-scale pipeline stayed flat quarter over quarter; second, the same-store RevPAR mid-scale and above segment also performed a bit better than economy segment. I don't know if this is correct and trying to understand the reason behind this. And what is our view towards the upper-mid-scale market conditions and how we strengthen our competitiveness in this segment? Thank you.

因為，首先，我們的高檔—中高檔飯店產品線與上一季相比保持平穩；其次，同店 RevPAR 中檔及以上飯店的表現也略好於經濟型飯店。我不知道這是否正確並試圖理解背後的原因。我們對中高端市場狀況有何看法？我們如何加強這一領域的競爭力？謝謝。

(interpreted) As I mentioned earlier, we see plenty of opportunity to reform the existing very traditional upper-scale segment. Therefore, we have been putting a lot of efforts in terms of the products and the service offering as well as the sales -- target sales and marketing especially for those upper-mid segments to establish our overall capability to do the breakthrough in this particular segment, leveraging on our good product design to improve our product power as well as leveraging our very strong membership program and to accumulate a lot of repeated customers for our upper-mid segment products, therefore, to increase the recognition and the acceptance of the products by the customers.

（翻譯）正如我之前提到的，我們看到了許多改革現有非常傳統的高端市場的機會。因此，我們在產品、服務以及銷售方面投入了大量精力——目標銷售和營銷，特別是針對中高端市場，以建立我們在這一特定領域的整體突破能力，利用我們良好的產品設計來提高我們的產品力，並利用我們非常強大的會員計劃，為我們的中高端產品積累大量回頭客，從而提高客戶對產品的認可度和接受度。

We have been keep upgrading and optimizing the membership, especially for the upper-mid segment, and we hope you can have a look going forward and you will see the progress. Thank you.

我們一直在不斷升級和優化會員資格，特別是針對中高端會員，我們希望您能夠繼續關注並看到進步。謝謝。

Next question, please.

請回答下一個問題。

[Jia Wei Lu, CITIC X].

[盧嘉偉，中信X]。

(spoken in Chinese) The Intercity brand has received strong consumer reputation. Can management share some more insights regarding the franchise profile, single-store model, and store opening target plans for this year or the next five years? Thank you.

（中文）城際品牌已獲得消費者的良好聲譽。管理層能否分享更多有關特許經營概況、單店模式以及今年或未來五年的開店目標計劃的見解？謝謝。

(interpreted) So in terms of the Intercity brands, actually, the growth momentum started from last year, and the Intercity brand actually redefined the overall upper-mid-scale segment. And it's kind of a combination with Chinese as well as the Western design and service to provide more suitable products and service to the Chinese customers.

（解釋）就城際品牌而言，實際上，成長動能從去年就開始了，城際品牌實際上重新定義了整個中高端市場。這是中國和西方設計和服務的結合，旨在為中國客戶提供更合適的產品和服務。

And I'm happy to see that probably by the end of 2025, we can have around 100 intercity hotels in operation. And more importantly, we have been seeing that there's a lot of Intercity hotels has been located in a very important key areas and cities, which are we call flagship hotels in very prime locations. That will bring a longer-term benefit to -- for the brand establishment.

我很高興地看到，到 2025 年底，我們將有大約 100 家城際酒店投入營運。更重要的是，我們看到許多城際酒店都坐落在非常重要的關鍵地區和城市，我們稱之為黃金地段的旗艦酒店。這將為品牌建立帶來長期利益。

For the entire upper-mid-scale segment, we actually use the multi-brand strategy. Apart from the intercity, we still have Crystal Hotel as well as Mercure and Novotel for example. So the key strategy is definitely the multi-brand strategy but with core brand focus. And I think for those foreign brands within our portfolio such as Mercure and Novotel are going to benefit from a rising inbound tourist in the future.

對於整個中高端酒店市場，我們實際上採用多品牌策略。除了城際以外，我們還有水晶酒店以及美居和諾富特酒店。因此，關鍵策略肯定是多品牌策略，但要以核心品牌為重點。我認為，我們投資組合中的那些外國品牌，例如美居和諾富特，未來將會受益於入境遊客數量的成長。

Thank you.

謝謝。

Next question, please.

請回答下一個問題。

Thank you. There are no further questions at this time. So I'll hand the call back to Jason for closing remarks.

謝謝。目前沒有其他問題。因此我將把電話交還給傑森，讓他做最後發言。

Okay. Thank you, everyone, for taking your time with us today, and we look forward to see you in the upcoming quarter. Thank you, and bye-bye.

好的。感謝大家今天抽出時間與我們在一起，我們期待在下一季與您見面。謝謝，再見。

This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers please stand by.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。發言者請稍候。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。