Why Hotel Owner H World Shares Are Falling Premarket Monday

H World Group Ltd  HTHT shares are trading lower after the company disclosed fourth quarter FY23 preliminary results for its hotel operations.

Same-hotel RevPAR increased 40.8% Y/Y, same-hotel ADR grew 16.7%, and same-hotel occupancy was up 13.9ppt Y/Y in the fourth quarter.

In the quarter vs. 2019 level, the blended average daily room rate rose 22.5%, blended RevPAR was up 20.0%, and blended occupancy rate declined 1.7 ppt.

In the Legacy-Huazhu business, the company’s RevPAR growth recovered to 120% vs. the 2019 level in the fourth quarter, led by continued leisure and business travel demand recovery. 

H World opened 460 hotels and closed 225 in its Legacy-Huazhu business in the fourth quarter of 2023. 

In Steigenberger Hotels GmbH and its subsidiaries business, the company posted RevPAR growth of 111% vs. 2019, aided by a higher ADR base experienced during the FIFA World Cup and the COP27 UN Climate Change Conference in the fourth quarter of 2022.

As of December 31, 2023, H World had 9,263 hotels and a pipeline of 3,061 hotels.

Price Action: HTHT shares are down 4.31% at $30.45 premarket on the last check Monday.