March 15, 2024 H World Group (HTHT)

The Hotel Investment Conference Asia Pacific Update 2024 was held successfully in Hong Kong, focusing on current trends and future prospects in the hospitality and travel industry in the Asia-Pacific region.

Approximately 75 industry experts, including Ms. He Jihong, Chief Strategy Officer of H World Group Limited, discussed the latest developments, investment opportunities, and challenges in key markets.

H World, one of the fastest-growing hotel groups globally, highlighted strong recovery signs in China’s economy in 2023, with RevPAR reaching 122% of 2019 levels.

H World Group Limited (HTHT) is set to deliver its Q4 2023 results on March 20. The company outperformed the Zacks Consensus Estimate in the previous quarter by 14.3%. The projected earnings for Q4 2024 stand at 31 cents, a stunning rise of 616.7% YoY, with revenues forecasted at $760 million, indicating a considerable 41.5% annual increase. These optimistic projections are fueled by the steady recovery in leisure and business travel and the firm’s successful expansion.

In a preliminary report, H World Group exhibited resounding performance for its Legacy-Huazhu division; its Revenue per Available Room (RevPAR), depicting the health of a hotel business, reached 120% of the 2019’s numbers, buoyed by upsurge in demand from leisure and business sectors. The ADR (average daily rate) also experienced a rise, contributing to the RevPAR growth.

Alongside HTHT’s performance, Hyatt Hotels Corporation registered good Q4 2023 results with revenues exceeding the Zacks Consensus Estimate but a decline in earnings YoY. Despite adverse effects due to increasing costs and foreign currency risks, Hyatt continued to demonstrate growth in their comparable system-wide revenue due to increased occupancy and average daily rate, primarily driven by worldwide demand from leisure, business, and group customers.

Meanwhile, Planet Fitness, Inc. showcased an earnings and revenues beat in its Q4 2023 report, albeit management expressed concerns regarding the ongoing macroeconomic headwinds and a slowdown in sales due to a shift towards strength equipment. The company expects its 2024 sales patterns to follow the same trend as 2023.

On another note, Live Nation Entertainment, Inc. reported mixed results for Q4 2023 with revenues topping the consensus estimate, but earnings falling short. Still, Live Nation has witnessed the fruits of pent-up demand for live events, solid ticket sales, and increased fan spending, serving as key drivers for its seven consecutive quarters of revenue beat.