Huazhu Q4 2024 Earnings Report
Key Takeaways
In Q4 2024, H World Group reported revenue of $825 million, representing a 7.8% year-over-year increase. However, net income dropped sharply to $7 million, primarily driven by foreign exchange losses and tax impacts. Adjusted EBITDA reached $171 million, up from $158 million in the prior year. The company demonstrated strong growth in its manachised and franchised hotel segment, with revenue increasing by 24% year-over-year.
Revenue increased 7.8% year-over-year to $825 million, exceeding guidance.
Net income declined to $7 million due to FX losses and higher tax expenses.
Adjusted EBITDA rose to $171 million from $158 million year-over-year.
Strong 24% revenue growth in the manachised and franchised hotel segment.
Huazhu
Huazhu
Huazhu Revenue by Segment
Forward Guidance
H World expects modest revenue growth in 2025 with an emphasis on the manachised and franchised segment, projecting 2%-6% total revenue growth for the year and 17%-21% growth in manachised and franchised revenue.
Positive Outlook
- Revenue growth forecasted between 2%-6% for FY 2025.
- Manachised and franchised revenue expected to grow 17%-21%.
- Planned opening of approximately 2,300 hotels in FY 2025.
- Continued focus on asset-light business strategy.
- Strong momentum in brand reputation and market expansion.
Challenges Ahead
- Ongoing foreign exchange volatility may impact profitability.
- Higher tax expenses expected to continue in FY 2025.
- Challenges in cost management with fast-paced expansion.
- Impairment losses could continue to affect results.
- Potential macroeconomic headwinds in key markets.