Chinese Hotel Management Firm H World Says Near-Term Revenue Per Available Room Performance Might See Some Fluctuations - Here's Why
Portfolio Pulse from Shivani Kumaresan
H World Group Ltd (NASDAQ: HTHT) reported a 17.8% year-on-year increase in first-quarter FY24 sales, beating analyst estimates. The company saw growth in both its Legacy-Huazhu and Legacy-DH segments, with improved occupancy rates and RevPAR. Despite strong performance, the company anticipates near-term fluctuations in RevPAR due to last year's pent-up demand. H World projects second-quarter revenue growth of 7% to 11%. HTHT shares are trading 2% lower in premarket.
May 17, 2024 | 12:50 pm
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H World Group Ltd reported strong Q1 FY24 sales growth of 17.8%, beating analyst estimates. The company saw improved occupancy rates and RevPAR in both its Legacy-Huazhu and Legacy-DH segments. However, near-term RevPAR may fluctuate due to last year's pent-up demand. The company projects Q2 revenue growth of 7% to 11%. HTHT shares are trading 2% lower in premarket.
The strong Q1 performance and beating of analyst estimates are positive indicators. However, the anticipated near-term fluctuations in RevPAR and the current premarket decline of 2% suggest a neutral short-term impact. The projected Q2 revenue growth provides some optimism but does not offset the immediate concerns.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100