Chinese Hotel Management Company H World's Q3 Sales Jump, Thanks To Summer Holiday Travel Season & Business Travel Recovery

H World Group Ltd (NASDAQ: HTHT) reported third-quarter FY23 sales growth of 53.6% year-on-year to RMB6.3 billion ($861 million), beating the analyst consensus estimate.

Adjusted EPADS of $0.58 beat the analyst consensus.

The occupancy rate for all the Legacy-Huazhu hotels in operation was 85.9% versus 76.0% in 3Q22, and Blended RevPAR was RMB278 versus RMB193 in 3Q22.

The operating income for the quarter was RMB1.9 billion or $262 million, and the operating margin was 30.4%.

The company held $1.2 billion in cash and equivalents as of September 30, 2023. The operating cash flow was RMB1.2 billion ($163 million).

As of September 30, 2023, H World's worldwide hotel network in operation totaled 9,157 hotels and 885,756 rooms, including 129 hotels from Steigenberger Hotels GmbH and its subsidiaries.

Jin Hui, CEO of H World, commented: "We are pleased to report another quarter of strong RevPAR recovery in China, supported by China's summer holiday travel season as well as continuous business travel recovery."

Outlook: For Q4, H World expects revenue growth of 41% - 45% or 48%-52%, excluding Steigenberger Hotels GmbH and its subsidiaries, versus the consensus of $726.85 million.

Price Action: HTHT shares are trading higher by 0.73% at $37.15 in premarket on the last check Friday.