H World Group Ltd (HTHT) 2025 Q3 法說會逐字稿

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

各位來賓，感謝您的耐心等待。歡迎參加H World 2025年第三季財報電話會議。 （操作說明）請注意，本次會議正在錄音。

I would now like to turn the call over to your first speaker today, Mr. Jason Chen. Thank you. Please go ahead.

現在我把電話交給今天的第一位發言人，陳先生。謝謝。請開始。

Thank you. Good morning and good evening, everyone. Thanks for joining us today. Welcome to H World Group 2025 third-quarter earnings conference call. Joining us today is our Founder and Chairman, Mr. Qi Ji; 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。感謝各位今天參加本次會議。歡迎參加H World集團2025年第三季業績電話會議。今天出席會議的有我們的創辦人兼董事長齊騸先生、執行長金輝先生、財務長陳慧女士以及首席策略長何繼紅女士。在他們發言結束後，管理階層將回答各位的問題。

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.

在繼續討論之前，請注意，今天的討論將包含根據1995年美國《私人證券訴訟改革法案》安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，我們的實際結果可能與今天表達的觀點有重大差異。

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 and applicable laws.

我們在向美國證券交易委員會提交的公開文件中列出了許多潛在風險和不確定性。除法律要求和適用情況外，H World Group不承擔更新任何前瞻性聲明的義務。

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

在今天的電話會議上，我們將在討論公司績效時提及調整後的財務指標。這些指標與可比較GAAP資訊的調節表可在今天稍早發布的獲利報告中查閱。請注意，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上觀看。

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

接下來，我將把電話交給我們的執行長金輝先生，請他討論我們2025年第三季的業務表現。金先生，請發言。

(interpreted) I believe many of you have noticed that two weeks ago, on the occasion of H World 20th anniversary, we successfully held a partner conference being 20 years young forging ahead. Therefore, before diving into our third-quarter performance review, I'd like to take a few minutes to once again share some of our thoughts on the long-term outlook of China's in hotel industry and us.

（譯）我相信大家都注意到了，兩週前，值此H World成立20週年之際，我們成功舉辦了一場合作夥伴大會，回顧了我們20年來的青春歷程。因此，在深入探討第三季業績之前，我想花幾分鐘時間再次分享我們對中國酒店業及我們自身長期發展前景的一些看法。

In summary, we believe H World has great long-term growth potential by deeply rooted in China market. Currently, we can observe that while the industry supply is relatively ample, high-quality supply is in noticeable shortage. Compared to the mature US market, China still has low hotel chain penetration and the industry remains fragmented as a unified large singular market, similar to the US, but with even an -- an even larger population base to increase in churn ratio and the phaseout of low-quality supply will innovatively become a long-term trend.

總而言之，我們認為H World憑藉其在中國市場的深厚根基，擁有巨大的長期成長潛力。目前，我們觀察到，雖然產業供應相對充足，但優質供應明顯短缺。與成熟的美國市場相比，中國酒店連鎖滲透率仍然較低，作為一個整體龐大的單一市場，其行業仍處於分散狀態，與美國類似，但擁有更大的人口基數，這將導致更高的客戶流失率，並逐步淘汰低品質供應，從而成為一種長期趨勢。

(interpreted) More importantly, the demand for travel is gradually shifting from discretionary demand to necessity for Chinese consumers nowadays. China has the best infrastructure worldwide with extensive high-speed rail and highway network coverage. This has made traveling much easier and more convenient, facilitating the penetration of accommodation needs from major cities to country-level markets.

更重要的是，如今華人消費者的旅遊需求正逐漸從可自由支配的需求轉變為必要的需求。中國擁有全球一流的基礎設施，高速鐵路和公路網絡覆蓋廣泛。這使得旅行更加便捷，也促進了住宿需求從主要城市向全國各地市場的滲透。

Additionally, Chinese consumers are beginning to redefine consumption concepts and oriental aesthetics. We can see a substantial increase in the consumer design in seeking sales pressure which further drives the growth of experiential consumption such as tourism, exhibitions, concerts, and sports events.

此外，中國消費者正在重新定義消費概念和東方美學。我們可以看到，消費者在追求銷售壓力方面表現出顯著的消費傾向，這進一步推動了體驗式消費（例​​如旅遊、展覽、音樂會和體育賽事）的成長。

(interpreted) Apparently, the current supply quality in China's hotel industry is unable to fully meet consumers increasingly upgraded and diversified demand. Therefore, supply side reform will be the main theme of the future industry development, and this will undoubtedly bring tremendous growth opportunities for domestic branded hotels like us.

顯然，目前中國酒店業的供給品質無法完全滿足消費者日益升級和多元化的需求。因此，供給面改革將是未來產業發展的主旋律，這無疑將為像我們這樣的國內品牌酒店帶來巨大的發展機會。

As the leading players in China's hotel industry, we will continue deepening our roots in the China market pursuing high-quality growth and delivering service excellence with a brand-led approach to reduce industry with -- [centering] on high quality and efficiency. We are full of confidence in the future development of China's hotel industry.

作為中國酒店業的領導企業，我們將繼續深耕中國市場，追求高品質成長，以品牌為導向，提供卓越服務，力求降低行業成本——以高品質和高效率為核心。我們對中國酒店業的未來發展充滿信心。

(interpreted) After tuning our perspective on the long-term outlook, now let's turn to our third-quarter performance. We are pleased to see early signs of improvements in the overall market condition. On the demand side, data from railway aviation and the number of tourists indicate that the domestic travel demands continuously to grow steadily, with the increasing demand for travel being particularly evident during the National Day and the Mid-Autumn Festival's holiday period.

（譯文）在調整了我們對長期前景的看法之後，現在讓我們來看看第三季的業績。我們很欣喜地看到整體市場狀況出現初步改善跡象。需求方面，鐵路航空運輸數據和遊客數量均表明，國內旅遊需求持續穩定成長，尤其是在國慶日和中秋節假期期間，旅遊需求的成長更為明顯。

On the supply side, third-party data shows that the sequential supply growth has stabilized and the year-over-year growth rate has moderated. However, we still need more time to see if this trend is sustainable.

供應方面，第三方數據顯示，環比供應成長已趨於穩定，較去年同期成長速度也有所放緩。然而，我們仍需更多時間來觀察這一趨勢是否可持續。

(interpreted) We are glad to report that H World delivered good results across several key metrics in the quarter. In the third quarter, we achieved a year-over-year increase in ADR while maintaining a relatively stable occupancy rate, driven by refined revenue management initiatives, including optimizing pricing strategies across flagship hotels, newly opened hotel and mature hotel as well as refining promotional strategies and enhancing incentive programs. As a result, our RevPAR stayed largely stable compared to the same period last year.

我們很高興地報告，H World在本季各項關鍵指標均取得了良好業績。第三季度，在保持相對穩定的入住率的同時，平均房價（ADR）實現了同比增長，這得益於我們優化了收益管理舉措，包括優化旗艦酒店、新開業酒店和成熟酒店的定價策略，以及完善促銷策略和加強獎勵計劃。因此，我們的每間可供出租客房收入（RevPAR）與去年同期相比基本保持穩定。

(interpreted) We're breaking through in new cities and the regions and further penetrating in the lower tier cities, we achieved under the quarter of high-quality network expansion. Driven by a 17.3% year-over-year increase in the number of rooms in operation, our group hotel GMV grew by 17.5% year over year to RMB30.6 billion.

（譯文）我們在新城市和地區取得突破，並進一步滲透到低線城市，本季實現了高品質的網路擴張。受營運客房數量年增17.3%的推動，集團飯店GMV年增17.5%至人民幣306億元。

Meanwhile, along with our network expansion and continuous enhancement of H World membership program, our membership base exceeded $300 million by the end of third quarter up 17.3% year over year and a ranking number one globally. In addition, room nights sold to the members rose 19.7% compared to the same period of last year, exceeding $66 million and accounting for 74% of the total room back sold, which is also a leading position in worldwide.

同時，隨著我們網路的拓展和H World會員計畫的持續完善，截至第三季末，我們的會員規模已突破3億美元，年增17.3%，位居全球第一。此外，會員客房銷售量年增19.7%，超過6,600萬美元，佔總客房銷售量的74%，同樣位居全球領先地位。

(interpreted) More importantly, our monetized and franchised business delivered strong growth in its hotel network revenue as well as profit. Our third-quarter growth M&F revenue rose 27.2% year over year to RMB3.3 billion. And group M&S gross operating profit increased by 28.6% year over year to RMB2.2 billion, contributing over 70% of the group's total gross operating profit.

更重要的是，我們的貨幣化及特許經營業務在酒店網路收入和利潤方面均實現了強勁增長。第三季度，我們的M&F業務收入年增27.2%至人民幣33億元。集團M&S業務毛利年增28.6%至人民幣22億元，佔集團總毛利潤的70%以上。

(interpreted) In terms of hotel network expansion, we remain steadfast in executing our strategic focus on economy and middle scale segments to serve the mass market. This strategic positioning aligns precisely with the current consumer behavior of seeking value for money products and services and can further demonstrate our competitive advantages.

（譯文）在飯店網路擴張方面，我們始終堅持以經濟型和中檔飯店為策略重點，服務大眾市場。這項策略定位與當前消費者追求物有所值的產品和服務的需求高度契合，並能進一步彰顯我們的競爭優勢。

By continuously upgrading our core products and enhancing our excellent service with a customer-centric pricing pool, we are enhancing the quality of our hotel portfolio and strengthening our brand positioning to achieve long-term sustainable growth. The new version of [HanTing], along with our middle-scale brands, JI Hotel and Orange Hotel, will serve as the key growth engines for our expansion in the lower-tier cities and provide strong foundation for achieving our strategic goal of 20,000 hotels in 2,000 cities.

透過不斷升級核心產品，並以客戶為中心的定價體系提升卓越服務，我們正在提升飯店組合的品質，強化品牌定位，以實現長期永續發展。新版漢庭酒店，連同其中端品牌濟宜酒店和橙苑酒店，將成為我們拓展低線城市市場的關鍵成長引擎，並為實現「2000個城市2萬家酒店」的戰略目標奠定堅實基礎。

(interpreted) At the same time, H World has also made rapid breakthrough in the upper mid-scale segments. At the end of third quarter, our number of upper midscale hotels in operation and in pipeline exceeded 1,600, up 25.3% year over year.

同時，H World在中高端市場也取得了快速突破。截至第三季末，我們營運中高端飯店及在建飯店數量超過1,600家，較去年同期成長25.3%。

More importantly, to meet the growth, growing consumer demand for quality living, our rental aesthetics and unique experiences, we recently launched a brand-new. upper mid-scale brand, Ji Icons during our 20th anniversary. The introduction of Ji Icons further enriched our upper midscale brand portfolio and help us to achieve comprehensive coverage from our rental to Western brands and from selected service to lifestyle hotel offerings. Ji Icon's brand embodies a combination of subtle, understated, and elegant or rental aesthetic, enabling value leap from accommodation functionality to holistic lifestyle experiences.

更重要的是，為了滿足消費者對高品質生活日益增長的需求，以及我們租賃公寓的美學理念和獨特體驗，我們在公司成立20週年之際推出了全新的中高端品牌——Ji Icons。 Ji Icons的推出進一步豐富了我們的中高端品牌組合，並幫助我們實現了從租賃公寓到西式品牌、從精選服務到生活方式酒店的全面覆蓋。 Ji Icons品牌融合了精緻、低調、優雅的租賃美學，實現了從住宿功能到整體生活方式體驗的飛躍。

(interpreted) The success of JI Hotels has demonstrated Chinese consumers' affinity for oriental aesthetics and culture. We are confident that building upon JI Hotels Foundation, Ji Icon will further deepen the expression of our rental aesthetics and culture element. Moreover, our group's strong supply chain and the modular construction probability as well as our global leading membership and the direct sales capability will effectively support our Ji Icons to reach low construction costs, high operational efficiency, and high product quality. We believe Ji Icons will become one of the big driving force to support our penetration in the upper midscale segment and has the potential to become another world-class brands [at HanTing], JI Hotel, and Orange brands.

（譯）吉伊酒店的成功展現了中國消費者對東方美學和文化的喜愛。我們相信，依托吉伊酒店的基礎，吉伊酒店將進一步深化我們租賃美學和文化元素的表達。此外，集團強大的供應鏈、模組化建造優勢、全球領先的會員體係以及直銷能力，將有效支持吉伊酒店實現低建設成本、高營運效率和高品質的產品。我們相信，吉伊酒店將成為我們進入中高端市場的重要推動力之一，並有潛力成為漢庭、吉伊酒店和橘園旗下另一個世界級品牌。

(interpreted) We will be focusing on strengthening our direct sales capabilities through H World membership programs. Our membership program and direct sales capability are vital to our sustainable long-term business growth. Our membership base has been growing as we expand our hotel network and entering into more cities.

我們將專注於透過H World會員計畫加強直銷能力。會員計畫和直銷能力對我們業務的可持續長期成長至關重要。隨著飯店網路的拓展和業務進駐更多城市，我們的會員基礎也不斷壯大。

By the end of third quarter, H World membership exceeded $300 million and the room nights sold to the members grew 19.7% year over year with a larger portion of contribution to the total room nights sold. Going forward, we will further enhance our membership benefits, expand loyalty points usage scenarios and explore cross-industry partnership to strengthen member engagement and enhance direct sales capability.

截至第三季末，H World會員費總額突破3億美元，會員房晚數年增19.7%，佔總房晚數的比重也大幅提升。展望未來，我們將進一步提升會員權益，拓展積分使用場景，並探索跨產業合作，以增強會員互動，提升直銷能力。

(interpreted) This concludes the business updates for H World third quarter 2025. Now I will hand over the call to our CFO, Ms. Jihong He, to present the group's financial performance for the quarter.

（翻譯）以上是H World 2025年第三季業務更新的全部內容。現在我將把電話交給我們的財務長何繼紅女士，由她來介紹集團本季的財務表現。

Thank you, Jin Hui. Good evening, and good morning, everyone. Let me walk you through our third-quarter financial overview. During the quarter, our group revenue grew 8.1% year-over-year to RMB7 billion, and last quarter revenue grew 10.8% year over year to RMB5.7 billion, first surpassed the high end of our previous guidance. It was mainly driven by better-than-expected RevPAR performance as well as hotel network expansion.

謝謝金輝。各位晚上好，各位早安。讓我為大家介紹一下我們第三季的財務概況。本季度，集團營收年增8.1%至人民幣70億元，而上一季營收年增10.8%至人民幣57億元，首次超過了我們先前預期的上限。這主要得益於RevPAR（每間可供出租客房收入）表現優於預期以及飯店網路擴張。

Group adjusted EBITDA rose by 18.9% year over year to RMB2.5 billion, with margin improved by 3.3 percentage points year over year to 36.1%. The faster adjusted EBITDA growth the and margin expansion were mainly contributed to further enlarged profit contribution from our asset-light business. Cost savings from [Legacy-DH] partially on the absence of RMB81 million restructuring costs incurred in the third quarter last year as well as cost optimization efforts from [Legacy-Huazhu].

集團調整後EBITDA年增18.9%至人民幣25億元，利潤率年增3.3個百分點至36.1%。調整後EBITDA成長加速及利潤率提升主要得益於輕資產業務利潤貢獻的進一步擴大。 [原DH業務]的成本節約部分源自於去年第三季8,100萬元重組費用的免除，以及[原華竹業務]的成本優化措施。

Looking into our asset-light monetized and franchise business in the third quarter, powered by our high-quality asset-light network expansion and better-than-expected RevPAR performance. Our monetized and franchise business revenue recorded a robust 27.2% year-over-year growth to RMB3.3 billion. More importantly, monetized and franchise business gross operating profit rose by 28.6% year over year to RMB2.2 billion with a margin of 68% in the third quarter. As a result, gross operating profit contribution from our monetized and franchise business further in line to 70% in the third quarter, up 11.1 percentage points year over year.

第三季度，由於高品質的輕資產網絡擴張和超出預期的每間可供出租客房收入（RevPAR），我們的輕資產變現及特許經營業務表現出色。變現及特許經營業務收入年增27.2%，達33億元人民幣。更重要的是，變現及特許經營業務毛營業利潤年增28.6%，達到人民幣22億元，毛利率為68%。因此，變現及特許經營業務的毛營業利益貢獻率在第三季進一步提升至70%，較去年同期成長11.1個百分點。

Moving to our cash flow and liquidity position. In the third quarter, we generated RMB1.7 billion operating cash flow. And at the quarter end, the group had RMB13.3 billion cash and cash equivalents and RMB6.6 billion net cash on the balance sheet.

接下來談談我們的現金流和流動性狀況。第三季度，我們實現了人民幣17億元的營運現金流。截至季末，集團資產負債表上的現金及現金等價物為人民幣133億元，淨現金為人民幣66億元。

Lastly, on our guidance for the fourth quarter of 2025, we expect our group revenue to grow 2% to 6% compared to the same quarter last year and 3% to 7% if excluding DH. The monetized and franchise revenue in the fourth quarter of 2025 is expected to grow in the range of 17% to 21% compared to the fourth quarter last year.

最後，關於我們對2025年第四季的業績展望，我們預期集團營收將比去年同期成長2%至6%，若不計入DH業務，則預期成長3%至7%。 2025年第四季的變現收入和特許經營收入預計將比去年同期成長17%至21%。

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

好了，現在可以回答您的問題了。接線員，請開通問答環節。

(Operator Instructions) Dan Chee, Morgan Stanley.

（操作員指令）Dan Chee，摩根士丹利。

(interpreted) Good evening. My question is about RevPAR and demand trend. Firstly, on the company's fourth-quarter China revenue guidance of 3% to 4% year-on-year growth, what's the implied RevPAR assumption? Can the management share any 2026 outlook for us, especially after seeing third-quarter RevPAR decline turns almost flat, especially on the new experiential demand Mr. Jin mentioned versus the original business demand weakness? So which one is driving the RevPAR stabilization? Thank you.

晚安.我的問題是關於每間可供出租客房收入（RevPAR）和需求趨勢的。首先，公司對第四季中國市場營收年增3%至4%的預期，其隱含的RevPAR假設為何？管理階層能否分享2026年的展望，尤其是在第三季RevPAR下滑幅度幾乎收窄之後，特別是考慮到金先生提到的體驗式消費需求與原有業務需求疲軟之間的對比？究竟是什麼因素推動了RevPAR的穩定？謝謝。

(interpreted) So as many of you may notice that in the third quarter, our RevPAR is a bit stabilized. On a year-over-year basis, it's kind of flat. It's not further declining compared to last two quarters. And of course, we observed the several trends during the quarter. In terms of the demand, obviously, the demand was mainly driven by the leisure travel demand, especially from the tourism activities starting from summer holiday, [Q of] September and, of course, the beginning of the October National Day and the Mid-Autumn Festival as well.

（譯文）正如大家可能已經注意到的，第三季我們的每間可供出租客房收入（RevPAR）趨於穩定。與去年同期相比，基本上持平，沒有像前兩個季度那樣進一步下降。當然，我們也觀察到本季的一些趨勢。就需求而言，顯然，需求主要由休閒旅遊需求驅動，特別是從暑假開始的旅遊活動，以及9月份的旅遊旺季，當然還有10月初的國慶日和中秋節。

But on the supply side, as I mentioned it before, on a year-over-year basis from the third-party data, we saw the supply growth actually moderated. So it was not growing as fast as before. So it's becoming a bit moderated, so which brings some of the benefits to the RevPAR stabilization.

但就供應方面而言，正如我之前提到的，根據第三方數據，同比來看，供應成長實際上已經放緩。因此，其成長速度不如以前那麼快了。所以，成長速度正在趨於平穩，這對RevPAR的穩定起到了一定的作用。

But more importantly, for us, H World has been putting a lot of efforts over the last six months in terms to further enhance our, for example, the revenue management, as I mentioned in my prepared remarks, in terms of setting a new pricing strategy among different tiers of hotels like flagship, new hotels and the mature hotels.

但更重要的是，對我們來說，H World 在過去的六個月裡投入了大量精力，以進一步加強我們的收益管理，正如我在準備好的發言稿中提到的那樣，為不同級別的酒店（如旗艦酒店、新酒店和成熟酒店）制定新的定價策略。

And therefore, I think -- but looking to the fourth quarter, because we are entering to the low season, there is still some uncertainties. So as of now, based on our revenue guidance, it implies our fourth-quarter RevPAR, which is somewhere around flattish to slightly positive for the fourth quarter.

因此，我認為——但展望第四季度，由於我們即將進入淡季，仍然存在一些不確定因素。所以目前，根據我們的營收預期，這意味著我們第四季度的每間可供出租客房收入（RevPAR）預計會與上季持平或略有成長。

In terms of business demand and the leisure demand, of course, there are still some of the macro uncertainties. So to be very frank, the business demand is not that strong yet. But on the other hand, for the leisure demand -- and it was continuously growing.

就商務需求和休閒需求而言，當然仍存在一些宏觀經濟方面的不確定因素。坦白說，商務需求目前還不夠強勁。但另一方面，休閒需求卻持續成長。

As I mentioned previously, for the Chinese consumers nowadays, the leisure traveling demand has become -- has gradually becoming a necessity instead of discretional demand and especially for some emerging new demands, such as concerts, marathons, sports events, and I think non-travel as well. So the leisure, remember, is strong.

正如我之前提到的，如今對中國消費者而言，休閒旅遊的需求已經——並且正逐漸從可自由支配的需求轉變為必需品，尤其是一些新興的需求，例如音樂會、馬拉松、體育賽事，以及我認為非旅遊活動也包括在內。所以，請記住，休閒需求依然強勁。

In terms of the outlook for the next year, we think it's a bit too early. It still takes time to see whether the stabilization in terms of the RevPAR and the supply-demand equivalent is sustainable. So we will give more color for our fourth-quarter earnings. Thank you.

至於明年的展望，我們認為現在下結論還為時過早。 RevPAR（每間可供出租客房收入）和供需平衡的穩定能否持續，還需要時間觀察。因此，我們將在第四季財報中提供更詳細的資訊。謝謝。

Sijie Lin, CICC.

林思傑，中金公司。

(interpreted) Thank you, management. My question is about RevPAR breakdown. If we look at ADR and OCC, we see that ADR performed better recently. So trying to understand the reason behind this and the sustainability.

（翻譯）謝謝管理層。我的問題是關於每間可供出租客房收入（RevPAR）的細分。如果我們看一下平均房價（ADR）和營業成本（OCC），會發現最近平均房價的表現較好。所以我想了解背後的原因以及這種表現的可持續性。

Also, if we look at the gap between blended RevPAR and same-hotel RevPAR, the gap remained at similar level with last few quarters. So is there any chance that the gap narrows in the future and what measures need to be taken? Thank you.

此外，如果我們觀察混合RevPAR與同店RevPAR之間的差距，會發現該差距與過去幾季基本持平。那麼，未來該差距是否有可能縮小？需要採取哪些措施？謝謝。

(interpreted) Okay. So in terms of the ADR, of course, for 2025, the improvements of RevPAR has been a very key task for our top management team. And of course, they have been putting a lot of efforts on that. So in terms of ADR, as I mentioned earlier, so we are doing a lot of work on further enhancing our revenue management capability, especially on the pricing for a different layer of the hotel and different products. And of course, on the front line, we give a lot of various incentives to our salespeople to further motivate and to do a lot of sales activities.

（翻譯）好的。就平均房價而言，當然，對於2025年來說，提高每間可供出租客房收入（RevPAR）一直是高階管理團隊的關鍵任務。他們當然也為此投入了大量精力。正如我之前提到的，我們正在努力提昇平均房價，尤其是在飯店不同層級和不同產品的定價方面。當然，在銷售一線，我們也為銷售人員提供了各種激勵措施，以進一步激勵他們進行銷售活動。

However, apart from this things we have been doing over the six months -- over the last six months, actually, the ADR increase in the third quarter is a result from our continuous efforts on the product upgrades, the quality improvements as well as our service excellence because we have been doing this since for many, many years and continuously doing so, and we have more and more recommendations from our customers. So that's why in certain area or in certain regions, our products and service is definitely in a leading position, which gives us some of the pricing power, which led us to achieve a better ADR for the third quarter.

然而，除了過去六個月以來我們所做的工作之外——實際上，第三季平均房價的成長，得益於我們持續不斷的產品升級、品質改進以及卓越的服務。多年來，我們始終堅持這些努力，並不斷提升服務質量，因此也獲得了越來越多的客戶好評。正因為如此，在某些地區，我們的產品和服務處於領先地位，這賦予了我們一定的定價權，最終促成了第三季平均房價的提升。

And in terms of the like-for-like hotel or mature hotels, the gap, we are glad to see the year-over-year decline was narrowed significantly in the third quarter. On one hand, we -- in terms of the pricing, we use a lot of different layers for pricing the different products.

就同​​類酒店或成熟酒店而言，我們很高興看到第三季同比降幅已顯著收窄。一方面，在定價方面，我們採用了多種不同的定價策略來區分不同的產品。

Over the last 1.5 years, we opened a lot of high-quality hotels, new hotels in some of Tier 1, Tier 2 cities, which is creating some of the cannibalization to the existing hotels but through different pricing -- in different pricing strategy for different products, I think we are seeing some of the improvements for our mature hotels and for -- and more importantly, we keep doing a lot of existing hotels upgrades to further improve the hotel quality itself in order to raise the -- improve the RevPAR as a whole. Thank you.

過去一年半，我們在一些一二線城市開設了許多高品質的新酒店，這在一定程度上蠶食了現有酒店的市場份額。但透過針對不同產品採取不同的定價策略，我認為我們已經看到成熟飯店的業績有所改善。更重要的是，我們持續對現有飯店進行升級改造，以進一步提升飯店整體品質，從而提高每間可供出租客房收入（RevPAR）。謝謝。

Lydia Ling, Citi.

Lydia Ling，花旗銀行。

(interpreted) Thanks. (inaudible) EDF from Citi. So I have a question regarding the branded especially for the newly launched upper scale brand, Ji Icons. So could you actually share some -- your plans for this brand and such as we are store opening plan and also the store economics like the CapEx and the payback period and how actually your advantage versus like current other leading operating sales brand in the market and how is the feedback for franchisees so far? Thank you.

（翻譯）謝謝。 （聽不清楚）我是花旗銀行的EDF。我有一個關於品牌的問題，特別是關於新推出的高端品牌Ji Icons。您能否分享一下您對這個品牌的規劃，例如門市開幕計畫、門市經濟效益（如資本支出和投資回收期）以及與目前市場上其他領先的銷售品牌相比，您的優勢是什麼？加盟商目前的回饋如何？謝謝。

(interpreted) Okay. So in terms of the Ji Icons brands, so obviously, the launch of the Ji Icons brands are showing a very strong determination for H World to further breakthrough and developing in the upper mid-scale segment with multi-brand strategy. This trend is very clear.

（翻譯）好的。就 Ji Icons 品牌而言，很顯然，Ji Icons 品牌的推出展現了 H World 進軍中高端市場、採用多品牌策略的堅定決心。這一趨勢非常明顯。

And secondly, based on the current culture confidence or Chinese culture confidence and also the preference from the Chinese consumers on our rental culture, our rental service as well as our rental lifestyle that also basically support the launch of the Ji Icons brands.

其次，基於當前文化信心或中國文化信心，以及中國消費者對我們的租賃文化、租賃服務以及租賃生活方式的偏好，這也從根本上支持了 Ji Icons 品牌的推出。

And as I said before, Ji Icons is going to definitely become one of the core brands in our upper mid-scale segments. And we hope this brand can be the best brand or the best hotel that Chinese customers will like the most. So in terms of the [UE], in terms of the CapEx you're asking, we hope we can share more information after the first hotels opened. Thank you.

正如我之前所說，吉之酒店必將成為我們中高端市場的核心品牌之一。我們希望這個品牌能夠成為中國消費者最愛的飯店品牌。至於您提到的[UE]和資本支出，我們希望在首批酒店開業後能夠分享更多資訊。謝謝。

Simon Cheung, Goldman Sachs.

Simon Cheung，高盛。

(interpreted) The question is related to the hotel opening. In the third quarter, they've done very well in terms of hotel opening over 700. And I think in the first nine months, they opened more than 2,000 hotels. That's on track or even exceeded the 2,300 hotels that they have targeted for the full year. Wondering whether there's any update for that and, in particular, also on the new signing as well.

（翻譯）這個問題與飯店開業有關。第三季度，他們在飯店開幕方面做得非常出色，新增了700多家。我認為前九個月，他們已經開設了2000多家酒店。這符合甚至超過了他們全年設定的2300家酒店的目標。我想知道這方面是否有任何最新消息，特別是關於新簽約項目的情況。

And then on the related questions, given the focus and the strong momentum that they have seen in the upscale segments, upper mid-scale segments, where they achieved 1,600 hotel secure. And we have seen -- similarly hunting, they've done like 5,000 and that's JI Hotel on 4,000. Wondering whether they have any targets for the upper mid-scale in the long run. Thank you.

關於相關問題，鑑於他們專注於高端和中高端市場，並且發展勢頭強勁，已成功拿下1600家酒店。我們看到，在類似的拓展項目中，他們也完成了約5,000家，其中JI Hotel就拿下了4,000家。我想知道他們是否有針對中高端市場的長期目標。謝謝。

(interpreted) Okay. So benefiting from faster new signings in 2023 and 2024 post COVID as well as further improvements in terms of our supply chain capability, which resulted in performance in conversion ratio from the pipeline to the openings, so we achieved a quite good new openings for the first nine months, which is slightly more than 2,000.

（翻譯）好的。因此，由於新冠疫情后 2023 年和 2024 年新簽約速度加快，以及供應鏈能力的進一步提升，提高了從項目儲備到實際開業的轉化率，我們在前九個月取得了相當不錯的新開業業績，略高於 2000 家。

So therefore, for the full year, we could possibly open a bit more than 2,300 hotel as what we guided previously. But again, so we emphasized several times over the last several quarters' earnings call, in terms of the new signings and openings, we will focus more on quality expansion is that only looking for scale. So that thing never changed. So we're going to continuously implementing this strategy for high-quality sustainable growth.

因此，全年來看，我們或許能像之前預期的那樣，開設略多於2300家酒店。但正如我們在過去幾季的財報電話會議上多次強調的那樣，在新簽約和新開業方面，我們將更加重視品質擴張，而不是僅僅追求規模。這一點從未改變。我們將繼續貫徹這項策略，以實現高品質、可持續的成長。

In terms of the upper mix segment, as I said, we have reached 1,600 in both pipeline and the operations, which also achieved a pretty rapid growth. But however, if you look into a longer term, for example, 2030, we're going to still focus on the mass market with the economy and the middle scale.

就高端產品線而言，正如我所說，我們在研發和營運方面都已達到1600輛，並且實現了相當快速的成長。但是，如果著眼於更長遠的未來，例如到2030年，我們仍將專注於經濟型和中端市場的大眾市場。

So in terms of the proportion, economy, and the middle scale can still contribute to the majority. But in terms of the growth rate, we hope our upper mix segments could grow the fastest in the industry and become the leading players in China market by 2030.

因此，就比例而言，經濟型和中端市場仍能貢獻大部分份額。但就成長率而言，我們希望高端產品組合能實現業界最快成長，並在2030年成為中國市場的領導者。

Ronald Leung, Bank of America.

梁榮國，美國銀行。

(interpreted) Let me translate my questions in English. So I have two questions. My first question is about cost and margins outlook. The company has achieved very decent margin expansion in the past two quarters. Could management share with us the latest outlook on cost control and also margins?

（翻譯）讓我用英文翻譯一下我的問題。我有兩個問題。第一個問題是關於成本和利潤率的展望。公司在過去兩個季度實現了非常可觀的利潤率成長。管理階層能否與我們分享最新的成本控制和利潤率展望？

My second question is about the membership program. So the overall membership has grown decency to over [$300 million] by the end of 3Q '25. Could management share an update on the strategy on how to further enhance membership's loyalty and also marketing strategies to improve the conversion rates? Thank you very much.

我的第二個問題是關於會員計劃的。截至2025年第三季末，會員總收入已超過3億美元。管理階層能否分享如何進一步提升會員忠誠度的策略，以及提高轉換率的行銷策略？非常感謝。

(interpreted) Okay. So in terms of our numbers, so definitely, direct sales and the membership is one of our core strategy. We are glad to see in terms of the member base as well as the room nights sold to all members continuously to grow. But we think that's still not enough. So that's why we have been doing quite a lot of jobs over the past several months.

（翻譯）好的。就我們的資料而言，直銷和會員制無疑是我們的核心策略之一。我們很高興看到會員數量以及所有會員的房間銷售量都在持續增長。但我們認為這還不夠。所以，過去幾個月我們做了很多工作。

First of all, we introduced a price guarantee program, which is going to ensure our members to get the best price and service as also the unique experiences at the hotel. And secondly, we're also trying to fulfill more diversified demand from the leisure travelers and some of the emerging demand -- for example, as I mentioned earlier, like sports events, like inbound travelers. So basically, an H Rewards membership program is gradually shifting from only business travelers to fulfill more diversified demand.

首先，我們推出了價格保證計劃，旨在確保會員在飯店享受最優惠價格、最佳服務以及獨特的體驗。其次，我們也在努力滿足休閒旅客和一些新興旅客的多元化需求——例如，正如我之前提到的，體育賽事和入境旅客等。因此，H Rewards 會員計畫正逐步從僅面向商務旅客轉向滿足更多元化的需求。

And thirdly, we are also enhancing our capability to receive more business clients and corporate clients to further enhance our exposures. And lastly, we have been experimenting a lot of cross industry in cooperation with a lot of top-tier vertical players trying to enhance members' experiences and improve their engagement. Thank you.

第三，我們也努力提升自身能力，吸引更多企業客戶和公司客戶，以進一步擴大我們的影響力。最後，我們一直在與許多業界領先的垂直領域企業合作，進行跨產業探索，力求提升會員體驗和參與度。謝謝。

(multiple speakers) Sorry, please go, continue.

（多人發言）抱歉，請繼續。

(spoken in Chinese)

（中文）

Okay. Let me do the translation. So overall, the adjusted EBITDA margin improvement was mainly because of our (inaudible) strategy. So obviously, the MNF has higher margin compared to lease and on. But in terms of the cost control in terms of the hotel operating costs, by leveraging our strong supply chain capability, we continuously to reduce the cost per room night sold.

好的，我來翻譯一下。總的來說，調整後 EBITDA 利潤率的提升主要歸功於我們的（聽不清楚）策略。顯然，與租賃等其他模式相比，多戶住宅的利潤率更高。但在飯店營運成本控制方面，我們透過利用強大的供應鏈能力，持續降低每間客房每晚的成本。

And for our leased and owned hotels, we're continuously seeking for more rental reduction, just trying to improve the profitability level of our leased and owned hotels.

對於我們租賃和擁有的酒店，我們一直在尋求進一步降低租金，努力提高我們租賃和擁有酒店的盈利水平。

And on SG&A perspective, we're continuously optimizing our mid and back office and headquarter just trying to control the cost. In terms of sales and marketing, we will, based on ROI and to do some of necessary investments on, for example, the hotel brands, membership as well as the user -- new user acquisition.

從銷售、管理及行政費用（SG&A）的角度來看，我們一直在優化中後台和總部運營，並努力控製成本。在銷售和行銷方面，我們將根據投資回報率（ROI）進行必要的投資，例如飯店品牌、會員制以及用戶（包括新用戶獲取）等方面。

So as mentioned by Jin Hui, so we have been -- systematically improved our capability to improve our revenue management so as in the cost control side. So we are also doing a systematically capability improvement. Thank you.

正如金輝所提到的，我們一直在系統性地提升收入管理能力，以便更好地控製成本。因此，我們也在進行系統的能力提升。謝謝。

Thank you. We have come to the end of the question-and-answer session. That concludes the conference call for today. Thank you for your participation. You may now disconnect your lines.

謝謝。問答環節到此結束。今天的電話會議到此結束。感謝您的參與。您可以掛斷電話了。

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.

本記錄中標示「（已翻譯）」的部分由現場通話的口譯員翻譯。該口譯員由本次活動的贊助公司提供。