HTHT - H World Group says Legacy-Huazhu business close to pre-pandemic levels over pent-up hotel demand

• H World Group ( NASDAQ: HTHT ) reported Tuesday that third quarter's revenue per available room (RevPAR) recovered to 90% of the 2019 level in Legacy-Huazhu business due to the pent-up leisure travelling demand in the summer holiday.
• The China's hotel group H World recorded 3.1% growth in blended average daily room rate for the hotels operational excluding the ones under requisition. Occupancy rate rose 4.2% to 76%.
• RevPAR increased 9.1% to RMB 193 during the three months through September quarter. Breaking down into each month, the group's RevPAR in July, August and September 2022 recovered to 90%, 89% and 90% of the 2019 levels, respectively.
• There has been net addition of 240 manachised and franchised hotels while leased and owned hotels saw net closing of 15 hotels during the quarter.
• Same hotel average daily rate (ADR) for Legacy-Huazhu business was almost flat at RMB 248.
• "Blended RevPAR recovery was driven by a 17% increase in ADR, while occupancy remained 10 percentage points behind 2019 levels. Due to expected energy shortages and resulting high inflation rates in Europe, further ADR increases will be required to cover the cost increases," the company reported.
• Stock is up 3% in pre-market trading on Wednesday.

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