Focusing on Lower-tier Markets and Opening a New Chapter of International Growth
HONG KONG, March 15, 2024 /PRNewswire/ -- From March 13th to 14th, the Hotel Investment Conference Asia Pacific Update 2024 ("HICAP UPDATE") was successfully held in Hong Kong. This conference focused on the dynamics and future prospects of the hospitality and travel industry in the Asia-Pacific region, discussing the latest development and investment opportunities and challenges in a variety of the region's hot markets. Nearly 75 leading industry experts were invited to speak at the 2024 conference. Ms. He Jihong, the Chief Strategy Officer of H World Group Limited("H World" or "the Group") attended the conference and delivered speeches on the Group's business and the development of the travel industry.
As one of the fastest-growing hotel groups globally, H World ranks sixth in terms of the number of hotel rooms. With the resurgence of China's economy in 2023, the Group witnessed promising signs of recovery, commencing from February of the previous year. For the full year of 2023, the RevPAR of Legacy-Huazhu (refers to H World's business in China) reached 122% of the 2019 level. Addressing the trajectory of the Chinese economy and its tourism sector, Ms. He underscored a discernible trend of robust demand emanating from lower-tier cities, with a notable increase in RevPAR observed in lower-tier cities, as well as strong franchisee interest in investment in these locations. H World's portfolio consisting of over 80% limited-service hotels, is well-suited to meet the requirements of franchisees in third and fourth-tier cities, thereby further contributing to the favorable outlook for H World's business.
Regarding international business development, Ms. He emphasized that Southeast Asia emerges as a nascent market for H World, signaling a promising frontier ripe with untapped potential and strategic opportunities. While the Group's operations span Europe, the Middle East, India, Africa, and the Asia Pacific region, including the Ji Hotel in Singapore and Steigenberger in Bangkok, Southeast Asia stands out as a pivotal focus area, given its proximity to H World's home market. The Group also expresses keen interest in nations such as Vietnam, Indonesia, Cambodia, and the Philippines. Moreover, with the official rebranding of Deutsche Hospitality as H World International, the Group embarks on a journey to expand its footprint in overseas markets, signaling the commencement of a new chapter in its international growth.
Furthermore, Ms. He stated that H World has consistently embraced technological innovation. With its in-house operational system and analytical tools, the Group has significantly enhanced its ability to engage loyal members and forge meaningful connections with customers while deciphering their preferences. Presently, the self-developed platform boasts over 200 million members, with projections indicating further growth in the coming year. H World's strategic vision encompasses the cultivation of a robust ecosystem through development of technology and data analytics as well as increasingly targeted customer service applications.
