Turismo
H World Attends Hotel Investment Conference Asia Pacific 2023
He Jihong highlighted that from the opening of the first Hanting Hotel 18 years ago, H World has become one of the fastest-growing hotel groups in the world and is currently ranked 6 in the world. H World has rapidly recovered from the impact of the Covid-19. Particularly during Chinese New Year this year, the RevPAR of Legacy-Huazhu (refers to H World's business in China ) rebounded to 140% of the 2019 level. In Q3 2023, Legacy-Huazhu's RevPAR recovered to 129% of the 2019 level. Speaking about the Chinese economy and the tourism industry, He Jihong emphasized a new consumer trend where individuals of all age groups prioritize "experiential consumption", which allows them to seek happiness through relatively small budget. H World's portfolio consisting of over 90% limited-service hotels, is well-suited to meet these consumer needs. In addition, the anticipated rebound of business travel in China further contributes to the favorable outlook for H World's business.
Regarding customer loyalty programs, He Jihong stated that H World has consistently embraced technological innovation. With their in-house operational system and analytical tools, the Group has significantly enhanced its ability to attract and retain loyalty members. Currently, more than 80% of their bookings come from their proprietary platform, with over 70% of them being made by loyalty members. The Group has a membership base of over 200 million and the number is expected to increase further next year as they work on building a robust ecosystem.
Furthermore, He Jihong emphasized that H World's management and franchise model played a crucial role in the Group's rapid growth. By providing a complete supply chain and assigning on-site hotel managers to manage franchised hotels, H World ensures consistent brand quality and revenue while simplifying operations for franchisees, realizing the Group's rapid expansion to form a network effect, which is expected to open more than 1,000 hotels in the coming year.
During the "A Spotlight on East Asia - Opportunities and Challenges" session, Murphy Zhu also shared the recovery status of H World Group. The domestic consumption in the service industry increased by 21% compared to last year during the October Golden Week period, with tourism, lodging and restaurant businesses being the key drivers. As of September 30, 2023 , H World operated 9,157 hotels with 885,756 rooms in operation in 18 countries. For Legacy-Huazhu, the like-for-like comparison with the mature hotel (6,500 hotels) RevPAR saw an increase of 41% compared to last year in Q3 2023, while the blended occupancy rate reached 86%. DH continued its promising business recovery trend and its RevPAR recovered to 107% of the 2019 level. In Q3 2023, H World has a pipeline of 2,970 projects. These solid pipeline results endorse the Group's growth trends in 2024. Additionally, CJA, a subsidiary of H World, operates more than 200 apartments with 30,000 units in China , creating a strong synergy between hotels and apartments with their extensive network of over 9,000 hotels. In the future, with the accelerated urbanization in China and rapid development of extended-stay segment, H world will be able to create added value for owners and investors.
Photo - https://mma.prnewswire.com/media/2261839/JI_Hotel_Singapore.jpg
View original content:https://www.prnewswire.co.uk/news-releases/h-world-attends-hotel-investment-conference-asia-pacific-2023-301972441.html