Poster News Reporter Wang Xiaoyin reports from Shanghai
On August 20th, Huazhu Group Co., Ltd. (hereinafter referred to as "Huazhu") disclosed its unaudited financial performance announcement for the second quarter and interim of 2024. Data shows that in the first half of this year, Huazhu Group achieved a revenue of 11.426 billion yuan, a year-on-year increase of 14.1%. Among them, Huazhu China's revenue was about 9.073 billion yuan, a year-on-year increase of 14.3%; Huazhu International's revenue was approximately 2.353 billion yuan, a year-on-year increase of 13.7%. The net profit attributable to the parent company was approximately 1.7 billion yuan, a year-on-year decrease of 15%.
From the second quarter data, Huazhu's revenue and profit both achieved growth. In the second quarter of 2024, Huazhu Hotel's revenue was 23.4 billion yuan, a year-on-year increase of 15.5%; Achieved a revenue of 6.1 billion yuan, a year-on-year increase of 11.2%; The net profit attributable to the parent company was 1.1 billion yuan, a year-on-year increase of 10%. For the reasons for growth, Huazhu stated that it is mainly due to business recovery, continuous expansion of hotel network, and seasonal factors.
It is worth noting that during the reporting period, Huazhu achieved its goal of "10000 stores". As of June 30th, Huazhu has a total of 10286 hotels and over 1 million guest rooms in its global hotel network. Among them, Huazhu China has 10150 operating hotels, with economy hotels accounting for 52% and mid-range, mid to high end hotels and others accounting for 48%.
Image source: Huazhu Group
In terms of operation, in the second quarter of 2024, Huazhu China's average daily room price was 296 yuan, a year-on-year decrease of 2.9%; The occupancy rate was 82.6%, a year-on-year increase of 0.7 percentage points; The mixed average rental room revenue was 244 yuan, a decrease of 2% year-on-year.
According to Jin Hui, CEO of Huazhu Group, although Huazhu China's mixed average rentable room revenue in the second quarter decreased by 2% year-on-year mainly due to the high base of daily average room rates in the same period last year, the group continued to rapidly expand its hotel network while achieving a 0.7% year-on-year increase in occupancy rate. Despite recent macroeconomic and consumer fluctuations, China's overall tourism demand remains strong.
According to data from the Ministry of Transport, the cross regional personnel flow in China in the first half of 2024 was 32.41 billion, a year-on-year increase of 7.4%, with a year-on-year increase of 4.5% in the second quarter. According to data from the Ministry of Culture and Tourism, in the first half of 2024, the number of domestic tourists reached 2.725 billion, a year-on-year increase of 14.3%; Domestic tourists spent a total of 2.73 trillion yuan on travel, a year-on-year increase of 19.0%.
Looking ahead, Huazhu expects its revenue to grow by between 2% and 5%, or between 1% and 4%, in the third quarter of 2024 compared to the third quarter of 2023. In addition, the group has raised its guidance for opening hotels throughout 2024, expecting to open over 2200 hotels, higher than the previous guidance of 1800 hotels.
As of press time, the stock price of Huazhu Group was reported at HKD 22.05, a decrease of 2.22%.