HTHT.US 1179.HK

The latest: Hotelier H World Group Ltd. (HTHT.US; 1179.HK) announced Tuesday that revenue per available room (Revpar) for its legacy Huazhu business in the first quarter recovered to 118% of pre-pandemic levels in 2019. Its best performance came in February, when Revpar, a standard hotel industry benchmark, reached 140% of 2019 levels.

Looking up: The company attributed the strong recovery primarily to the release of pent-up travel demand in the period following the end of most Chinese Covid restrictions in December, as well as higher average daily room rates.

Take Note: The overall occupancy rate for the company’s hotels in the first quarter was 75.6%, a 16.4 percentage point increase year-on-year, but still short of the 84% rate for all 2019.

Digging Deeper: H World is a China-based hotel group that had nearly 810,000 rooms in 8,543 hotels both inside and outside China at the end of last year. The company’s low-cost Hanting chain is the backbone of its business, and it operates higher-end brands like Mercure, Ibis and Ibis Styles in China through a strategic partnership with France’s Accor (AC.PA). The company’s revenue grew 8.4% year-on-year last year, benefiting from the start of a tourism recovery for its hotels in international markets outside China. But it recorded a 1.82 billion yuan ($263 million) loss for the year due to Covid restrictions in China, as well as increased operating and administrative costs.

Market Reaction: H World’s New York-listed shares slipped 0.2% on Tuesday after the announcement. But its Hong Kong-listed shares rose on Wednesday to close up 4% at HK$36.15 by the midday break. They now trade at the upper end of their 52-week range.

Translation by Jony Ho

To subscribe to Bamboo Works free weekly newsletter, click here

Recent Articles

Agora makes real time engagement technology

AI powers Agora back to revenue growth

The maker of real-time engagement technology is benefitting from new demand for products like real-time online virtual tutors and talking toys Key Takeaways: Agora reported a slight revenue increase in…