Q1 2026 H World Group Ltd Earnings Call

May 15, 2026

Operator: Welcome to H World Q1 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'll now hand the conference over to your first speaker today, Miss Ivy Luo, Head of Investor Relations. Please go ahead.

Operator: Welcome to H World Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'll now hand the conference over to your first speaker today, Miss Ivy Luo, Head of Investor Relations. Please go ahead.

Speaker #1: To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised.

Speaker #1: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I will now hand the conference over to your first speaker today, Miss Ivy Law, Head of Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Operator. Good morning and good evening, everyone. Thanks for joining us today. Welcome to H World First Quarter 2026 earnings conference call. Joining us today is our founder and Executive Chairman, Mr. Qi Qi.

Ivy Luo: Thank you, operator. Good morning and good evening, everyone. Thanks for joining us today. Welcome to H World's Q1 2026 earnings conference call. Joining us today is our Founder and Executive Chairman, Mr. Qi Ji, our CEO, Mr. Hui Jin, our CFO, Mr. Arthur Yu, our COO, Ms. Hui Chen, and our CSO, Ms. Jihong He. Following our prepared remarks, management will be available to answer your questions. Before we continue, please note that the discussion today will include forward-looking statements made under the safe harbor provision of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC.

Ivy Luo: Thank you, operator. Good morning and good evening, everyone. Thanks for joining us today. Welcome to H World's Q1 2026 earnings conference call. Joining us today is our Founder and Executive Chairman, Mr. Ji Qi, our CEO, Mr. Hui Jin, our CFO, Mr. Arthur Yu, our COO, Ms. Hui Chen, and our CSO, Ms. Jihong He. Following our prepared remarks, management will be available to answer your questions. Before we continue, please note that the discussion today will include forward-looking statements made under the Safe Harbor provision of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC.

Speaker #2: Our CEO, Mr. Hui Jin; our CFO, Mr. Author Yu; our COO, Mr. Hui Chen; and our CSO, Miss Jihong He. Following our prepared remarks, management will be available to answer your questions.

Speaker #2: Before we continue, please note that the discussion today will include forward-looking statements made under the Safe Harbor Provision of the United States Private Security Litigation Reform Act of 1995.

Speaker #2: Forward-looking statements involve current risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC.

Speaker #2: H World Group does not undertake any obligation to update any forward-looking statements except as required under applicable laws. On the call today, we will also mention adjusted financial measures during the discussion of our performance.

Ivy Luo: H World Group does not undertake any obligation to update any forward-looking statements except as required under applicable laws. On the call today, we will also mention adjusted financial measures during the discussion of our performance. Reconciliation of those measures to comparable GAAP information can be found in our earnings release that was distributed early today. As a reminder, this conference call is being recorded. The webcast of this conference call, as well as supplementary slide presentation, is available at ir.hworld.com. With that, now I will hand over the call to our CEO, Mr. Hui Jin, to discuss our business performance in the Q1 of 2026. Mr. Jin, please.

Speaker #2: Reconciliation of those measures to comparable GAAP information can be found in our earnings release that was distributed earlier today. As a reminder, this conference call is being recorded.

Speaker #2: The webcast of this conference call, as well as the supplementary slide presentation, is available at ir.hworld.com. With that, I will now hand over the call to our CEO, Mr. Jin Hui, to discuss our business performance in the first quarter of 2026.

Speaker #2: Mr. Jin, please.

Speaker #3: 各位投资人分析师大家好，感谢大家参加华助集团2026年第一季度业绩电话会。

Ivy Luo: Dear investors and analysts, good day. Thank you for joining H World Q1 of 2026 earnings call. In 2026, China's domestic travel demand gained a solid momentum.

Hui Jin: [Non-English content]

[Translator]: Dear investors and analysts, good day. Thank you for joining H World Q1 of 2026 earnings call. In 2026, China's domestic travel demand gained a solid momentum.

Speaker #2: Dear investors and analysts, good day. Thank you for joining H World First Quarter of 2026 earnings call.

Speaker #3: 2026年以来，国内居民出行及文旅需求延续稳健态势，铁路、民航、跨区域客流整体保持平稳增长，出行人次与文旅消费规模稳步提升。我们观察到今年多地开始实施春假试点，春假与清明、五一假期衔接，形成了5到8天的休息窗口，有效引导错峰出行。同时，随着免签政策的进一步执行，入境游需求持续增长，为中国的住宿市场带来增量。

Speaker #2: In 2026, China's domestic travel demand showed solid momentum. The overall railway and aviation cross-region traffic, number of trips, as well as tourism spending, rose steadily.

Ivy Luo: The overall railway and aviation cross-region traffic, number of trips, as well as tourism spending, rose steadily. We also saw several regions rolling out spring breaks this year. Those spring breaks right before or after Qingming Festival and May Day holidays enabled Chinese consumers to enjoy 5 to 8 days of vacation, which effectively help balancing out passenger flows in between peak and off-peak periods. Meanwhile, a further step up in the implementation of visa-free policy has fueled the continuous growth of inbound tourism, which serve as an additional growth engine of China's hospitality industry. We think structurally there is still a mismatch between the hotel supply and the consumer demand in China. Therefore, pushing forward supply side reform and hotel network optimization will remain a key strategic H World.

[Translator]: The overall railway and aviation cross-region traffic, number of trips, as well as tourism spending, rose steadily. We also saw several regions rolling out spring breaks this year. Those spring breaks right before or after Qingming Festival and May Day holidays enabled Chinese consumers to enjoy 5 to 8 days of vacation, which effectively help balancing out passenger flows in between peak and off-peak periods. Meanwhile, a further step up in the implementation of visa-free policy has fueled the continuous growth of inbound tourism, which serve as an additional growth engine of China's hospitality industry. We think structurally there is still a mismatch between the hotel supply and the consumer demand in China. Therefore, pushing forward supply side reform and hotel network optimization will remain a key strategic H World.

Speaker #2: We also saw several regions rolling out spring breaks this year. Those spring breaks, right before or after Qingming Festival and the May Day holidays, enabled Chinese consumers to enjoy five to eight days of vacation, which effectively helped balance out passenger flows between peak and off-peak periods.

Speaker #2: Meanwhile, a further step up in the implementation of visa-free policy has fueled the continuous growth of inbound tourism, which serves as an additional growth engine of China's hospitality industry.

Speaker #3: 我们认为目前中国酒店行业处于结构性供需不匹配的阶段，因此推动行业的供给侧改革与存量优化将是华助持续发力的方向。一方面，这是对实物规划中深化供给侧结构性改革盘活存量等政策号召的积极响应；另一方面，华助也依托自身的品牌势能、运营能力及数字化优势进一步提升行业份额，实现稳健的高质量发展，践行把中国酒店业重新做一遍的使命。

Speaker #2: We think, structurally, there is still a mismatch between the hotel supply and the consumer demand in China. Therefore, pushing forward supply-side reform and hotel network optimization will remain a key strategic vote.

Ivy Luo: This closely aligns with the 15-5 year plan guideline on deepening supply side structural reform and revitalizing existing resources. Meanwhile, backed by our strong brand reputation, proven operational expertise, and digitalization advantages, we aim to further expand our market share, deliver sustainable, high-quality growth, and fulfill our mission of redo China's hotel industry.

[Translator]: This closely aligns with the 15-5 year plan guideline on deepening supply side structural reform and revitalizing existing resources. Meanwhile, backed by our strong brand reputation, proven operational expertise, and digitalization advantages, we aim to further expand our market share, deliver sustainable, high-quality growth, and fulfill our mission of redo China's hotel industry.

Speaker #2: This closely aligns with the 15 five-year plan guideline on deepening supply-side structural reform and revitalizing existing resources. Meanwhile, backed by our strong brand reputation, proven operational expertise, and digitalization advantages, we aim to further expand our market share, deliver sustainable high-quality growth, and fulfill our mission of reducing China's hotel industry.

Speaker #3: 迈入2026年，华助持续推进品牌引领下的高质量发展。在酒店、网络布局、品牌建设、会员生态搭建及盈利表现等方面均取得稳健成果。不过，与对低线城市的有效渗透，华助实现了又一季度的高质量规模扩张，再营房量同比增加14.1%的驱动下，集团GMV同比增长17.4%至264亿元。华助会员预订间夜量持续增长，一季度会员预订间夜同比增长10.7%，集团的轻资产加盟业务实现了规模、收入及利润的同步稳健增长。2026年一季度加盟收入同比提升20.3%至30亿元，经营毛利同比增长20.7%至19亿元。

Hui Jin: 迈入2026年，华住持续推进品牌引领下的高质量发展，在酒店网络布局、品牌建设、会员生态搭建及盈利表现等方面均取得稳健成果。通过对低线城市的有效渗透，华住实现了又一季度的高质量规模扩张。在营房量同比增加14.1%的驱动下，集团GMV同比增长17.4%至264亿元。华住会员预定间夜量持续增长，一季度会员预定间夜同比增长10.7%。集团的轻资产加盟业务实现了规模、收入及利润的同步稳健增长。2026年一季度加盟收入同比提升20.3%至30亿元，经营毛利同比增长20.7%至19亿元。

Ivy Luo: As we enter 2026, H World remains committed to brand-new high-quality development, and we achieve solid business results across network expansion, brand building, membership ecosystem development, and profitability. By breaking through into new cities and regions and deepening penetration in the lower tier cities, we delivered another quarter of strong network expansion. Driven by a 14.1% year-over-year increase in the number of rooms in operation, our group hotel GMV grew 17.4% year-over-year to RMB 26.4 billion. Nights booked by members increased 10.7% year-over-year to 60 million. Our asset-light Manachised and Franchised business registered another quarter of solid growth in its hotel network revenue as well as profit.

[Translator]: As we enter 2026, H World remains committed to brand-new high-quality development, and we achieve solid business results across network expansion, brand building, membership ecosystem development, and profitability. By breaking through into new cities and regions and deepening penetration in the lower tier cities, we delivered another quarter of strong network expansion. Driven by a 14.1% year-over-year increase in the number of rooms in operation, our group hotel GMV grew 17.4% year-over-year to RMB 26.4 billion. Nights booked by members increased 10.7% year-over-year to 60 million. Our asset-light Manachised and Franchised business registered another quarter of solid growth in its hotel network revenue as well as profit.

Speaker #2: As we enter 2026, H World remains committed to brand-led high-quality development. And we achieved solid business results across network expansion, brand building, membership ecosystem development, and profitability.

Speaker #2: By breaking through into new cities and regions, and deepening penetration in the lower-tier cities, we delivered another quarter of strong network expansion. Driven by a 14.1% year-over-year increase in the number of rooms in operation, our group hotel GMV grew 17.4% year-over-year to RMB 26.4 billion.

Speaker #2: The guidebook by members increased 10.7% year-over-year to 60 million. Our asset light monetized and franchise business registered another quarter of solid growth in its hotel network, revenue, as well as profit.

Speaker #2: Our first quarter 2026 group M&F revenue rose 20.3% year-over-year to RMB 3.0 billion. And group M&F gross operating profit increased by 20.7% year-over-year to RMB 1.9 billion.

Ivy Luo: Our Q1 2026 group M&F revenue growth 20.3% year-over-year to RMB 3.0 billion, and group M&F gross operating profit increased by 20.7% year-over-year to RMB 1.9 billion.

[Translator]: Our Q1 2026 group M&F revenue growth 20.3% year-over-year to RMB 3.0 billion, and group M&F gross operating profit increased by 20.7% year-over-year to RMB 1.9 billion.

Speaker #3: 在市场竞争更加趋于理性的背景下，华助中国依托产品及服务质量的不断升级，精细化的收益管理及综合营销能力提升，4.5%的ADR同比提升。ADR的扩张带动了REPA同比3%的正增长，REPA表现环比持续改善。

Hui Jin: 在市场竞争更加趋于理性的背景下，华住中国依托产品及服务质量的不断升级，精细化的收益管理及综合营销能力提升，4.5%的ADR同比提升。ADR的扩张带动了RevPAR同比3%的增长，RevPAR表现环比持续改善。

Ivy Luo: As market competition became more rational and healthier, H World China achieved 4.5% year-over-year increase in ADR, which was also supported by our continuous product upgrades and revenue management optimization. The ADR expansion drove a 3.0% year-over-year growth in the blended RevPAR, which represents a sequential improvement from Q4 2025.

[Translator]: As market competition became more rational and healthier, H World China achieved 4.5% year-over-year increase in ADR, which was also supported by our continuous product upgrades and revenue management optimization. The ADR expansion drove a 3.0% year-over-year growth in the blended RevPAR, which represents a sequential improvement from Q4 2025.

Speaker #2: As market competition became more rational and healthier, H World China achieved a 4.5% year-over-year increase in ADR, which was also supported by our continuous product upgrades and revenue management optimization.

Speaker #2: The ADR expansion drove a 3.0% year-over-year growth in the blended REPA, which represents a sequential improvement from the fourth quarter 2025.

Speaker #3: 在品牌长势的布局上，我们坚持以国民经济型和中档酒店为主，市场持续夯实核心品牌的竞争力，汉庭全季品牌的不断升级和汉庭快捷的推出，助力华助进一步夯实在经济型和中档市场的绝对领导力。在此基础上，我们稳步推进高质量的网络扩张，持续完善城市布局，截至一季度末，华助中国再营酒店达13,095家，管道内酒店2,865家，再营及管道内酒店已覆盖1,461个城镇，持续向千城万店2.0的目标迈进。在下城低线城市的同时，我们也在同步梳理和完善华助在一二线城市的酒店布局，尤其加大在核心城市、核心商圈的高质量布局。我们相信华助产品力的提升和品牌力的增强，将支持华助在中国一二线存量市场取得进一步的突破。

Hui Jin: 在品牌档次的布局上，我们坚持以国民经济型和中档酒店为主，市场持续夯实核心品牌的竞争力。汉庭、全季品牌的不断升级和汉庭快捷的推出，助力华住进一步夯实在经济型和中档市场的绝对领导力。在此基础上，我们稳步推进高质量的网络扩张，持续完善城市布局。截至一季度末，华住中国在营酒店达13,095家，管道内酒店2,865家，在营及管道内酒店已覆盖1,461个城镇，持续向千城万店二点零的目标迈进。在下沉低线城市的同时，我们也在同步梳理和完善华住在二线城市的酒店布局，尤其加大在核心城市核心商圈的高质量布局。我们相信华住产品力的提升和品牌力的增强，将支持华住在中国一线存量市场取得进一步的突破。

Speaker #2: We remain focused on serving the mass market using our economy and mid-scale hotels, and solidifying the competencies of our core brands. The continuous upgrades of Hanting and G Hotel, together with the launch of Hanting Inn, have further strengthened our competitiveness in the economy and mid-scale hotel markets.

Ivy Luo: We remain focused on serving the mass market, using our economy and midscale hotels, and solidifying the competencies of our core brands. The continuous upgrades of HanTing and JI Hotel, together with the launch of Hanting Inn, have further strengthened our competitiveness in economy and midscale hotel markets, reinforcing H World's absolute leadership in China's mass market hospitality segment. We are steadily expanding hotel network and enhancing geographic coverage. By the end of Q1, HWC hotel in operation totaled 13,095, and we have another 2,865 hotels in the pipeline. Our city coverage increased to 1,461 cities across China. We are moving steadily towards our strategic goal of 2,000 cities, 20,000 hotels.

[Translator]: We remain focused on serving the mass market, using our economy and midscale hotels, and solidifying the competencies of our core brands. The continuous upgrades of HanTing and JI Hotel, together with the launch of Hanting Inn, have further strengthened our competitiveness in economy and midscale hotel markets, reinforcing H World's absolute leadership in China's mass market hospitality segment. We are steadily expanding hotel network and enhancing geographic coverage. By the end of Q1, HWC hotel in operation totaled 13,095, and we have another 2,865 hotels in the pipeline. Our city coverage increased to 1,461 cities across China. We are moving steadily towards our strategic goal of 2,000 cities, 20,000 hotels.

Speaker #2: Reinforcing H World's absolute leadership in China's mass market hospitality segment, we are steadily expanding our hotel network and enhancing geographic coverage. By the end of the first quarter, H World hotels in operation totaled 13,095, and we have another 2,865 hotels in the pipeline.

Speaker #2: Our city coverage increased to 1,461 cities across China. We are moving steadily towards our strategic goal of 2,000 cities and 20,000 hotels. While expanding into lower-tier cities, we are also optimizing and refining our hotel portfolio in the tier-one and tier-two cities, especially in those core business districts in the top-tier cities.

Ivy Luo: While expanding into lower tier cities, we are also optimizing and refining our hotel portfolio in the tier 1 and 2 cities, especially in those core business districts in the top-tier cities. We believe our premium product quality and a strong brand power will enable us to recapture opportunities in the mature tier 1 and 2 cities markets.

[Translator]: While expanding into lower tier cities, we are also optimizing and refining our hotel portfolio in the tier 1 and 2 cities, especially in those core business districts in the top-tier cities. We believe our premium product quality and a strong brand power will enable us to recapture opportunities in the mature tier 1 and 2 cities markets.

Speaker #2: We believe our premium product quality and strong brand power will enable us to recapture opportunities in the mature tier-one and tier-two city markets.

Speaker #3: 除了核心大众品牌的深耕和网络布局的完善，华助中国中高端板块也在逐步发力。我们坚持多品牌策略，通过清晰的品牌定位与价格主张，稳步推进以成绩、大关、水晶及美居四大品牌为核心的发展战略，截至一季度末，华助中国中高端品牌再营及管道酒店已达1,658家，同比增长14.4%。

Hui Jin: 除了核心大众品牌的深耕和网络布局的完善，华住中国中高端板块也在逐步发力。我们坚持多品牌策略，通过清晰的品牌定位与价值主张，稳步推进以全季大观、桔子水晶及美居四大品牌为核心的发展战略。截至一季度末，华住中国中高端品牌在营及管道酒店已达1658家，同比增长14.4%。

Ivy Luo: Aside from strengthening our core mass-market brands and optimizing hotel coverage, we are also making steady headway in the upper midscale segment. We are adopting a multi-brand strategy with clear brand positioning and value propositions. We are steadily pushing forward the development of our four key upper midscale brands, namely Intercity, Grand JI, Crystal, and Mercure. At the end of Q1, the number of our upper midscale hotels in operation and in pipeline reached 1,658, up 14.4% year over year.

[Translator]: Aside from strengthening our core mass-market brands and optimizing hotel coverage, we are also making steady headway in the upper midscale segment. We are adopting a multi-brand strategy with clear brand positioning and value propositions. We are steadily pushing forward the development of our four key upper midscale brands, namely Intercity, Grand JI, Crystal, and Mercure. At the end of Q1, the number of our upper midscale hotels in operation and in pipeline reached 1,658, up 14.4% year over year.

Speaker #2: Aside from strengthening our core mass market brands and optimizing hotel coverage, we are also making steady headway in the upper mid-scale segment. We are adopting a multi-brand strategy, with clear brand positioning and value propositions. We are steadily pushing forward the development of our four key upper mid-scale brands, namely InterCity, Grand G, Crystal, and Mercure.

Speaker #2: At the end of the first quarter, the number of our upper mid-scale hotels in operation and in the pipeline reached 1,658, up 14.4% year-over-year.

Speaker #3: 在营销方面，我们始终坚持以华助会为核心。我们坚信会员体系及执效能力是支撑公司业务长期可持续发展的能力。随着我们酒店网络覆盖更多的城市，华助会的会员体量及会员经验都实现了稳步增长。未来我们将进一步加强品牌建设，拓宽获客场景，同时不断优化会员权益来提升会员转换，增强会员粘性。

Hui Jin: 在营销方面，我们始终坚持以华住会为核心。我们坚信会员体系及直销能力是支撑公司业务长期可持续能力。随着我们酒店网络覆盖更多的城市，华住会的会员体量及会员经验都实现了稳步增长。未来我们将进一步加强品牌建设，拓宽获客场景，同时不断优化会员权益，来提升会员转换，增强会员粘性。

Ivy Luo: We always insist on strengthening our direct sales capabilities through H Rewards membership program, which we believe is vital to our sustainable long-term development. As our hotel network covers more cities, our membership base and room night booked by members also achieve robust growth. Going forward, we'll further strengthen brand building, diversify customer acquisition scenarios, and enhance member benefits and member stickiness.

[Translator]: We always insist on strengthening our direct sales capabilities through H Rewards membership program, which we believe is vital to our sustainable long-term development. As our hotel network covers more cities, our membership base and room night booked by members also achieve robust growth. Going forward, we'll further strengthen brand building, diversify customer acquisition scenarios, and enhance member benefits and member stickiness.

Speaker #2: We are always insist on strengthening our direct sales capability through H World membership program, which we believe is vital to our sustainable long-term development.

Speaker #2: As our hotel network covers more cities, our membership base and room night booked by members also achieve robust growth. Going forward, we'll further strengthen brand building.

Speaker #2: Diversify customer acquisition scenarios, and enhance member benefits and member stickiness.

Speaker #3: 为清晰展现未来发展布局，从本季度起，我们正式启用华助中国华助国际两大业务板块的披露框架与统计口径。华助中国特指集团中国境内业务，华助国际则囊括集团所有海外酒店，包括 Let's say BH 及亚太的运营业务。

Hui Jin: 为清晰展现未来发展布局，从本季度起，我们正式启用华住中国、华住国际两大业务板块的披露框架与统计口径。华住中国特指集团中国境内业务，华住国际则囊括集团所有海外酒店，包括Legacy-DH及亚太的运营业务。

Speaker #2: To better and more accurately reflect our future development prospects, we have adopted the new HWC and HWI disclosure framework and terminology beginning this quarter.

Ivy Luo: To better and more accurately reflect our future development prospects, we have adopted the new HWC and HWI disclosure framework and terminology beginning this quarter, where the acronym HWC refers to our operations inside China, and HWI includes all overseas hotel business covering Legacy, DH, as well as our APAC business.

[Translator]: To better and more accurately reflect our future development prospects, we have adopted the new HWC and HWI disclosure framework and terminology beginning this quarter, where the acronym HWC refers to our operations inside China, and HWI includes all overseas hotel business covering Legacy, DH, as well as our APAC business.

Speaker #2: We use the acronym HWC to refer to our operations inside China. HWI includes all overseas hotel business, covering, let's say, BH, as well as our APAC business.

Speaker #3: 接下来我们就回顾一下华助国际业务表现。2026年一季度，华助国际 Royal Park 同比提升 5%，其中 ADR 同比上涨 1.6%，入住率同比提升 2.1 个百分点。

Hui Jin: 接下来我们就回顾一下华住国际业务表现。2026年一季度，华住国际RevPAR同比提升5%，其中ADR同比上涨1.6%，入住率同比提升2.1个百分点。

Speaker #2: Now let's go over the operational performance of our HWI business. In the first quarter of 2026, HWI achieved a 5.0% year-over-year increase in Red Park.

Ivy Luo: Now let's go over the operational performance of our HWI business. In Q1 2026, HWI achieved a 5.0% year-over-year increase in RevPAR, driven by a 1.6% increase in ADR and a 2.1% improvement in occupancy rate.

[Translator]: Now let's go over the operational performance of our HWI business. In Q1 2026, HWI achieved a 5.0% year-over-year increase in RevPAR, driven by a 1.6% increase in ADR and a 2.1% improvement in occupancy rate.

Speaker #2: Driven by a 1.6% increase in ADR and a 2.1 percentage-point improvement in occupancy rate.

Speaker #3: 大家可能已经留意到，除了 BH 的业务，华助国际在亚太市场也有了初步的布局和突破。依托共建一带一路区域合作发展机遇，华助国际持续加码亚太区域战略布局。目前我们已新加坡为运营枢纽，向老挝、越南、柬埔寨等东南亚重点市场延伸。目前集团在东南亚以落地运营六家酒店，依托汉廷、全记、成记、美人美幻等品牌，逐步构建涵盖经济型、中档及中高端多元化住宿产品矩阵。不同客户的消费与出行需求。

Hui Jin: 大家可能已经留意到，除了DH业务，华住国际在亚太市场也有了初步的布局和突破。依托共建一带一路区域合作发展机遇，华住国际持续加码亚太区域战略布局。目前我们以新加坡为运营枢纽，向老挝、越南、柬埔寨等东南亚重点市场延伸。目前，集团在东南亚已落地运营六家酒店，依托汉庭、全季、城际、美仑美奂等品牌，逐步构建涵盖经济型、中档及中高端多元化住宿产品矩阵，不同客户的消费与出行需求。

Ivy Luo: As you may have noticed, aside from our DH business, H World International has also made initial progress and breakthroughs in the Asia Pacific market. Leveraging the development opportunities under the Belt and Road Initiative, we are accelerating our strategic layout across APAC. With Singapore as its operational hub, HWI is expanding its footprint into key Southeast Asian markets, including Vietnam, Laos, and Cambodia. To date, we have opened six hotels across Southeast Asia. By rolling out brands ranging from HanTing, JI Hotel, to IntercityHotel, and MAXX, we have built a covering economy, midscale, and upper midscale segments, catering to diverse guest travel needs.

[Translator]: As you may have noticed, aside from our DH business, H World International has also made initial progress and breakthroughs in the Asia Pacific market. Leveraging the development opportunities under the Belt and Road Initiative, we are accelerating our strategic layout across APAC. With Singapore as its operational hub, HWI is expanding its footprint into key Southeast Asian markets, including Vietnam, Laos, and Cambodia. To date, we have opened six hotels across Southeast Asia. By rolling out brands ranging from HanTing, JI Hotel, to IntercityHotel, and MAXX, we have built a covering economy, midscale, and upper midscale segments, catering to diverse guest travel needs.

Speaker #2: As you may have noticed, aside from our DH business, H World International has also made initial progress and breakthroughs in the Asia-Pacific market. Leveraging the development opportunities under the Belt and Road Initiative, we are accelerating our strategic layout across APAC.

Speaker #2: With Singapore as its operational hub, HWI is expanding its footprint into key Southeast Asian markets, including Vietnam, Laos, and Cambodia. To date, we have opened six hotels across Southeast Asia.

Speaker #2: By rolling out brand ranging from Hanting, G Hotel, to InterCity, and Max, we have built a covering economy, mid-scale, and upper mid-scale segments, catering to diverse guest travel needs.

Speaker #3: 2025年末，我们首家海外汉廷正式落地开业。该项目采用汉廷 4.0 的产品体系，坐落于越南胡志明市第一郡核心商圈，区位优势突出。在 2026年一季度取得了亮眼的经营表现，一季度 Royal Park 达到近 500 元人民币。另外值得一提的是，该汉廷是有国内优质头部加盟商、出海投资筹建，充分体现了加盟商对华助品牌力和运营能力的充分信赖和高度认可。今年年初，全记 5.0 首家海外门店也正式落地老挝首都万象。该全记坐落于万象核心地段，延续全记东方人文的空间设计，让我们具备了东方文化品牌输出的能力。

Hui Jin: 2025年末，我们首家海外汉庭正式落地开业，该项目采用汉庭4.0的产品体系，坐落于越南胡志明市第一郡核心商圈，区位优势突出。在2026年一季度取得了亮眼的经营表现，一季度RevPAR达到近500元人民币。另外值得一提的是，该汉庭是由国内优质头部加盟商出海投资筹建，充分体现了加盟商对华住品牌力和运营能力的充分信赖和高度认可。今年年初，全季5.0首家海外门店也正式落地老挝首都万象。该全季坐落于万象核心地段，延续全季东方人文的空间设计，让我们具备了东方文化品牌输出的能力。

Speaker #2: We open our first overseas Han Ting Hotel in late 2025. Featuring our latest Han Ting 4.0 version, the hotel is in the very prime central business district of Ho Chi Minh City, Vietnam.

Ivy Luo: We opened our first overseas HanTing Hotel in late 2025. Featuring our latest HanTing 4.0 version, the hotel sits in the very prime center business district of Ho Chi Minh City, Vietnam. The hotel posted strong operational results with a nearly RMB 500 RevPAR in Q1. It's also worth mentioning that this property was invested by one of our large domestic franchisees, which shows our franchisee acknowledgment and confidence in our brand power and operational capabilities. This quarter, our first overseas JI 5.0 officially opened in Vientiane, the capital of Laos. Located in a prime area of the city, the hotel continues JI's signature design language rooted in Eastern culture, representing the overseas expansion of one of H World's Eastern cultural brands.

[Translator]: We opened our first overseas HanTing Hotel in late 2025. Featuring our latest HanTing 4.0 version, the hotel sits in the very prime center business district of Ho Chi Minh City, Vietnam. The hotel posted strong operational results with a nearly RMB 500 RevPAR in Q1. It's also worth mentioning that this property was invested by one of our large domestic franchisees, which shows our franchisee acknowledgment and confidence in our brand power and operational capabilities. This quarter, our first overseas JI 5.0 officially opened in Vientiane, the capital of Laos. Located in a prime area of the city, the hotel continues JI's signature design language rooted in Eastern culture, representing the overseas expansion of one of H World's Eastern cultural brands.

Speaker #2: The hotel posted strong operational results with a nearly RMB 500 million RevPAR in the first quarter. It's also worth mentioning that this property was invested in by one of our large domestic franchisees.

Speaker #2: Which shows our franchisees acknowledgment and confidence in our brand power and operational capabilities. This quarter, our first overseas G 5.0 officially opened in Vientiane, the capital of Laos.

Speaker #2: Located in a prime area of the city, the hotel continues G's signature design language rooted in Eastern culture, representing the overseas expansion of one of H World's Eastern cultural brands.

Speaker #3: 我们相信华助的标准化品牌体系、数字化运营能力与供应链优势，可以很好地赋能海外门店。我们目标打造华助在亚太市场的品牌势能，同时积累对东南亚市场本地化运营的能力。

Ivy Luo: We believe our standardized branded hotel products, systematic and digitalized operation capabilities, and supply chain advantages will enable us to empower our overseas hotels. Moving forward, we aim to build solid brand influence in Asia Pacific while accumulating local operational expertise in the Southeast Asian market. This concludes the business update for Q1 2026. I will now hand over the call to our CFO, Mr. Arthur Yu. Financial performance for the quarter.

[Translator]: We believe our standardized branded hotel products, systematic and digitalized operation capabilities, and supply chain advantages will enable us to empower our overseas hotels. Moving forward, we aim to build solid brand influence in Asia Pacific while accumulating local operational expertise in the Southeast Asian market. This concludes the business update for Q1 2026. I will now hand over the call to our CFO, Mr. Arthur Yu. Financial performance for the quarter.

Speaker #2: We believe our standardized, branded hotel product, systematic and digitalized operation capabilities, and supply chain advantages will enable us to empower our overseas hotels. Moving forward, we aim to build solid brand influence in the Asia-Pacific region.

Speaker #2: While accumulating local operational expertise in the Southeast Asian market,

Speaker #3: 以上就是华助 2026年一季度的业务情况更新。下面有请华助集团 CFO 阿瑟瑜为大家分享集团一季度的财务情况，有请。

Speaker #2: This concludes the business update for the first quarter of 2026. I will now hand over the call to our CFO, Mr. Arthur Yu, for the financial performance for the quarter.

Speaker #3: Good evening and good morning to everyone. Before we get into the details of our quarterly financial performance, I'd like to quickly highlight one accounting update first.

Arthur Yu: Thank you, Hui Jin. Good evening and good morning to everyone. Before we get into the details of our quarterly financial performance, I'd like to quickly highlight one accounting update first. Starting this quarter, we have renamed our operating segments to HWC and HWI, replacing the previous Legacy Huazhu and Legacy DH segments. Additionally, we made a minor business realignment between HWC and HWI effective 2026. For consistency and comparability, we have restated prior period figures to align with our current segment presentation. Now let's walk through our Q1 financial highlights. Group revenue grew 11.1% year-over-year to RMB 6.0 billion. Within this, HWC revenue increased 12.4% year-over-year to RMB 5.0 billion, primarily driven by steady hotel network expansion and continued RevPAR recovery.

Speaker #3: Starting this quarter, we have renamed our operating segments to HWC and HWI, replacing the previous legacy 华助 and legacy DH segments. Additionally, we made a minor business realignment between HWC and HWI, effective 2026.

Speaker #3: For consistency and comparability, we have restated prior period figures to align with our current segment presentation. Now, let's walk through our quarter one financial highlights.

Speaker #3: Group revenue grew 11.1% year over year to RMB 6.0 billion. Within this, HWC revenue increased 12.4% year over year, to RMB 5.0 billion, primarily driven by steady hotel network expansion and continued Red Park recovery.

Speaker #3: HWI revenue rose 5.1% year over year in quarter one 2026, partially benefited by favorable foreign exchange rates. On profitability, group adjusted EBITDA was up 24.2% year over year, to RMB 1.9 billion.

Arthur Yu: HWI revenue rose 5.1% year-over-year in Q1 2026, partially benefited by favorable foreign exchange rates. On profitability, group-adjusted EBITDA was up 24.2% year-over-year to RMB 1.9 billion, with the margin expanding 3.3 percentage points year-over-year to 31.0%. The strong EBITDA growth and margin improvement were mainly attributable to a growing profit contribution from our asset light business. Adjusted net income grew 38.6% year-over-year to RMB 1.1 billion, with the adjusted net income margin improving 3.5 percentage points to 17.9%. Next, on our asset light M&F business. Supported by ongoing high-quality asset light network expansion and improved RevPAR performance, our M&F business revenue grew a solid 20.3% year-over-year.

Speaker #3: With the margin expanding 3.3 percentage points year over year to 31.0%. The strong EBITDA growth and margin improvement were mainly attributable to a growing profit contribution from our asset-light business.

Speaker #3: Adjusted net income grew 38.6% year over year, to R&B 1.1 billion. With the adjusted net income margin improving 3.5 percentage points, to 17.9%. Next, on our asset light, M&S business.

Speaker #3: Supported by ongoing high-quality asset light network expansion, and improved Red Park performance. Our M&S business revenue grew a solid 20.3% year over year. Increased 20.7% year over year, to R&B 1.9 billion.

Arthur Yu: Increased 20.7% year-over-year to RMB 1.9 billion, with a growth operating margin of 63.6% for the quarter. Let's now turn to our cash flow and liquidity position. We generated RMB 233 million in operating cash flow during Q1. As of quarter end, the group holds RMB 15.8 billion in cash and cash equivalents, with a net cash position of RMB 9.6 billion on our balance sheet. Our healthy operating cash flow and strong balance sheet provides solid support for future shareholder return arrangements. This concludes our financial review for Q1 2026.

Speaker #3: With a growth operating margin of 63.6% for the quarter. Let's now turn to our cash flow and liquidity position. We generated R&B 233 million, in operating cash flow during quarter one.

Speaker #3: As of quarter end, the group holds RMB 15.8 billion in cash and cash equivalents, with a net cash position of RMB 9.6 billion on our balance sheet.

Speaker #3: Our healthy operating cash flow and strong balance sheet provide solid support for future shareholder return arrangements. With our financial review for the first quarter of 2026.

Speaker #2: We're ready to take your questions. Operator, please open the line for Q&A.

Ivy Luo: We're ready to take your questions. Operator, please open the line for Q&A.

Speaker #1: As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Speaker #1: Please stand by while we compile the Q&A roster. One moment for our first question. We will now take our first question from the line of Dan Chi of Morgan Stanley.

Operator: We will now take our first question from the line of Dan Qi of Morgan Stanley. Please ask your question. Dan, your line is open.

Speaker #1: Please ask your question, Dan. Your line is open.

Speaker #4: 各位观众朋友，大家晚上好。我是大摩的分析师Dan徐显达。很高兴又看到一个季度利润的优异增长，这个公司。我的问题是关于最近这个Red Park还有需求的趋势，就一季度我们看到需求是环比得到提升的，就3%的一个Red Park的增长。然后刚刚金总也提到了二季度以来的春假和节假日的这些错峰的旅游。那么想问一问能不能像我们分享多一点最近的这个情况，特别是商旅的一些趋势，就是除了休闲之外，还有就是能源上涨之后有没有看到有一些影响或者是情况怎么样。最后一点我想问管理层，就是入住率这一边看是不是能给我们多一点点分享，是不是可以稳健一点。谢谢。那我翻译一下。 Thank you, management. This is Dan from Morgan Stanley. Congratulations on another quarter of strong profit growth. My question is around recent demand and Red Park trend.

Dan Qi: 各位管理层，大家晚上好，我是大摩的分析师Dan，徐先达。很高兴又看到一个季度利润的优异增长啊，这个公司。我的问题是关于最近这个RevPAR还有需求的趋势，就一季度我们看到需求是环比得到提升的，就3%的一个RevPAR的增长。然后刚刚金总也提到了二季度以来的春假和节假日的这些错峰的旅游。那么想问一问，能不能向我们分享多一点最近的这个情况，特别是商旅的一些趋势啊，就是除了休闲之外，还有就是能源上涨之后呢，有没有看到有一些影响或者是情况怎么样？最后一点，我想问管理层，就是入住率这一边呢，看是不是能给我们多一点点分享，是不是可以稳定一点？谢谢。那我翻译一下。Thank you management.

Dan Chee: 各位管理层，大家晚上好，我是大摩的分析师Dan，徐先达。很高兴又看到一个季度利润的优异增长啊，这个公司。我的问题是关于最近这个RevPAR还有需求的趋势，就一季度我们看到需求是环比得到提升的，就3%的一个RevPAR的增长。然后刚刚金总也提到了二季度以来的春假和节假日的这些错峰的旅游。那么想问一问，能不能向我们分享多一点最近的这个情况，特别是商旅的一些趋势啊，就是除了休闲之外，还有就是能源上涨之后呢，有没有看到有一些影响或者是情况怎么样？最后一点，我想问管理层，就是入住率这一边呢，看是不是能给我们多一点点分享，是不是可以稳定一点？谢谢。那我翻译一下。Thank you management.

Dan Qi: This is Dan from Morgan Stanley. Congratulations on another quarter of strong profit growth. My question is around recent demand and RevPAR trend. Q1 RevPAR saw sequential improvement and Mr. Hui Jin mentioned about the demand balance during the Qingming and also May Spring holiday and several holidays in Q2. Can management share more colors, especially on business demand and any impact from energy cost increase? Lastly, any comments on the occupancy stabilization? Thank you. 谢谢。

Dan Chee: This is Dan from Morgan Stanley. Congratulations on another quarter of strong profit growth. My question is around recent demand and RevPAR trend. Q1 RevPAR saw sequential improvement and Mr. Hui Jin mentioned about the demand balance during the Qingming and also May Spring holiday and several holidays in Q2. Can management share more colors, especially on business demand and any impact from energy cost increase? Lastly, any comments on the occupancy stabilization? Thank you. 谢谢。

Speaker #4: First quarter, Red Park saw sequential improvement, and Mr. Jin mentioned the demand balance during Qingming and also the May/Spring holiday. There are several holidays in Q2.

Speaker #4: So, can management share more color, especially on business demand and any impact from energy cost increases? Lastly, any comments on occupancy stabilization? Thank you.

Speaker #4: 谢谢。好，各位，我是金辉，我来回答这个问题。在疫情以后，一直中国市场的旅游休闲的市场一直保持一个非常好的增长。我想这个一方面和消费者的日益这样的一个把旅游作为刚需的这样的一个消费，成为一种促行的习惯，非常有关。同时政府侧也做了大量的推进文旅、推进消费的这样的一个工作，包括我前面提到的春假的等等试点。同时我们也很高兴持续看到入境市场的快。所以总体来讲，在中国旅游市场人次这方面持续展现了稳步的增长的趋势。当然由于消费不是消费力的这样的一个问题，中国经济还处于一个波动的状态，所以我们看到的是人次增长，消费力显得不是太强劲的这样的一个现状。所以整体来讲，我先回答一下消费力，消费市场还是稳步增长的一个趋势，尤其在休闲市场。

Hui Jin: 好，各位，我是金辉，我来回答这个问题。在疫情以后，中国市场的旅游休闲市场一直保持一个非常好的增长。我想这个一方面和消费者的日益这样的把旅游作为刚需的这样的一个消费成为一种出行的习惯非常有关。同时呢，政府侧也做了大量的推进文旅、推进消费的这样的一个工作，包括我前面提到的春假等等试点。同时我们也很高兴持续看到入境市场的，所以总体来讲，在中国旅游市场人次这方面持续展现了稳步的增长的趋势。当然由于消费力的这样的一个问题，中国经济还处于一个波动的状态，所以我们看到的是人次增长，消费力显得不是太强劲的这样的现状。所以整体来讲，我先回答一下消费力，消费市场还是稳步增长的一个趋势，尤其在休闲市场。

Speaker #2: So after reopening, we actually see that for the leisure travel demand, it still has been growing steadily. A couple of reasons behind—I think one is that after reopening, the leisure travel and experiential experience behavior is becoming a necessity to Chinese consumers.

Ivy Luo: After reopening, we actually see that for the leisure travel demand, it still has been growing steadily. 2 reasons behind, I think one is that after reopening, the leisure travel and experiential experience behavior is becoming a necessity to Chinese consumers. Secondly, we are also seeing government pushing out supportive policies, such as the one that I mentioned during my prepared remarks, the spring breaks, that was rolled out in multiple regions and cities this year. Thirdly, we're also seeing a rising demand or an increase in overall inbound tourism, which was an additional growth driver to the overall leisure travel market. Overall, we are seeing that in terms of the number of trips, it is growing steadily after reopening. Probably because of the consumption power, we still see some fluctuations in the overall spending. To conclude, we do believe that overall leisure travel is still growing steadily.

[Translator]: After reopening, we actually see that for the leisure travel demand, it still has been growing steadily. 2 reasons behind, I think one is that after reopening, the leisure travel and experiential experience behavior is becoming a necessity to Chinese consumers. Secondly, we are also seeing government pushing out supportive policies, such as the one that I mentioned during my prepared remarks, the spring breaks, that was rolled out in multiple regions and cities this year. Thirdly, we're also seeing a rising demand or an increase in overall inbound tourism, which was an additional growth driver to the overall leisure travel market. Overall, we are seeing that in terms of the number of trips, it is growing steadily after reopening. Probably because of the consumption power, we still see some fluctuations in the overall spending. To conclude, we do believe that overall leisure travel is still growing steadily.

Speaker #2: Secondly, we are also seeing government pushing out supportive policies, such as the one that I mentioned during my prepared remarks—the spring breaks—that would roll out in multiple regions and cities this year.

Speaker #2: Thirdly, we're also seeing a rising demand, or an increase in the overall inbound tourism, which was an additional growth driver to the overall leisure travel market.

Speaker #2: Overall, we are seeing that, in terms of the number of trips, it is growing steadily after reopening. But probably because of the consumption power, we still see some fluctuations in the overall spending.

Speaker #2: But to conclude, we do believe that overall leisure travel is still growing steadily.

Hui Jin: 能源上涨目前没有对国内的出行造成非常明显的影响。我想这和中国新能源汽车的快速普及也有很大的关系。这个非常明确。刚才Dan问到了能源的问题，我们没有看到对出行市场明显的负面，所以我们保持了对26年全年华住RevPAR微增的目标。

Speaker #4: 能源上涨目前没有对国内的出行造成非常明显的影响。我想这和中国新能源汽车的快速普及也有很大的关系。这个非常明确，刚才Dan问到了能源的问题，我们没有看到对出行市场明显的负面，所以我们保持了对26年全年华族Red Park微增的目标。

Speaker #2: On the rising energy cost, while we haven't been observing any impact on the overall travel demand because of the rising energy cost, we think partially this is also because of the popularity of new energy vehicles in China. That is also why, for the full year 2026, we still maintain our full year RevPAR guidance of a slight increase.

Ivy Luo: The rising energy cost, for now we haven't been observing any impact on the overall travel demand because of the rising energy cost. We think partially this is also because the popular new energy vehicle in China. That is also why for the full year 2026, we still maintain our full year RevPAR guidance of a slight increase.

[Translator]: The rising energy cost, for now we haven't been observing any impact on the overall travel demand because of the rising energy cost. We think partially this is also because the popular new energy vehicle in China. That is also why for the full year 2026, we still maintain our full year RevPAR guidance of a slight increase.

Speaker #4: 我们在过去和未来华族将持续聚焦在自身以品牌运营管理会员等营销和性能力的投入。随着市场供应的趋缓，我们对未来整体的出租率还是表示谨慎的乐观态度。

Hui Jin: 我们在过去和未来，华住将持续聚焦在自身以品牌运营管理、会员等营销核心能力的投入。随着市场供应的趋缓，我们对未来整体的出租率还是表示谨慎的乐观态度。

Speaker #2: For H World, we will continue to focus on building our own core competencies, including our management capability as well as membership. So, given that the overall industry supply increase has been slowing down and the rationalizing, we maintain cautiously optimistic on our occupancy rate outlook.

Ivy Luo: For H World, we will continue to focus on building our own core competencies, including our hotel brand, including our operational management capability, as well as membership. Given that the overall industry supply increase has been slowing down and the rationalizing, we maintain cautiously optimistic our overall occupancy rate outlook.

[Translator]: For H World, we will continue to focus on building our own core competencies, including our hotel brand, including our operational management capability, as well as membership. Given that the overall industry supply increase has been slowing down and the rationalizing, we maintain cautiously optimistic our overall occupancy rate outlook.

Speaker #4: 谢谢。

Hui Jin: 谢谢。

Speaker #2: Thank you.

Ivy Luo: Thank you. We will now take our next question from the line of Ronald Leung of Bank of America. Please ask your question, Ronald. Your line is open.

[Translator]: Thank you.

Speaker #1: Thank you. We will now take our next question from the line of Ronald Leung of Bank of America. Please ask your question, Ronald. Your line is open.

Operator: We will now take our next question from the line of Ronald Leung of Bank of America. Please ask your question, Ronald. Your line is open.

Ronald Leung: 各位管理层晚上好，我是美银证券的Ronald，我的问题是关于这个开店关店的。我们看到一季度的开店都是还有不错的节奏，可以请问一下今年的最新的开关店的预期的整个计划是怎么样？还有就是关于开关店的城市覆盖的规划也是怎么样的？谢谢管理层。Let me translate my question into English. My question is about the opening and closures outlook for the full year. What is the latest outlook for the full year opening and closures?

Speaker #3: 各位管理层晚上好，我是美银证券的Ronald。我的问题是关于这个开店关店的。我们看到一季度的开店都是还有不错的节奏，可以请问一下今年的最新的开关店的预期的整个计划是怎么样？还有就是关于开关店的城市覆盖的规划也是怎么样的？谢谢管理层。 Let me translate my question into English. So my question is about the opening and closures outlook for the full year. So what is the latest outlook for the full year opening and closures?

Speaker #3: And could management also comment about the city coverage in terms of the overall openings? Thank you.

Ronald Leung: Could management also comment about the city coverage in terms of the overall openings? Thank you.

Hui Jin: 关于开店和布局的问题，我分两部分来回答，先回答开业部分。一季度华住净开业，毛开业的门店是537家，维持在历史的一个高位的水平。当然一季度净开业还受到了中国春节比较晚的一些因素，但整体开业数量是符合集团的这个预期。

Speaker #4: 关于开店和布局的问题，我分两部分来回答。先回答开业部分。一季度华族净开业，毛开业的门店是537家，维持在历史的一个高位的水平。当然一季度净开业还受到了中国春节比较晚的一些因素，但整体开业数量是符合集团的这个预期。

Speaker #2: I will answer the opening and the city coverage question separately. So, on the hotel HWC, we grossly opened 537 hotels, which is at a relatively high level compared to historical performance.

Ivy Luo: I will answer the opening and the city coverage question separately. On the hotel HWC, we grossly opened 537 hotels, which is at a relatively high level compared to historical performance. Of course in Q1 our net opening is kind of impacted by the late Spring Festival holiday this year. Overall, the number of gross openings and net openings in the quarter was in line with our overall expectation.

[Translator]: I will answer the opening and the city coverage question separately. On the hotel HWC, we grossly opened 537 hotels, which is at a relatively high level compared to historical performance. Of course in Q1 our net opening is kind of impacted by the late Spring Festival holiday this year. Overall, the number of gross openings and net openings in the quarter was in line with our overall expectation.

Speaker #2: Of course, in the first quarter, our net opening was kind of impacted by the late Spring Festival holidays this year. Overall, the number of gross openings and net openings in the quarter was in line with our overall expectations.

Speaker #4: 在开店的战略上，我想再次重申华族的规划的想法是围绕着高质量的发展。自从两年前华族从单纯追求规模的增长转型成以高质量品牌引领的这样一个发展策略，我们坚持持续的提升我们签约和开业的门店的质量要求。在这个大背景下，很高兴的和大家报告我们的签约依然保持一个非常良好的节奏。

Hui Jin: 在开店的战略上，我想再次重申华住的规划的想法是围绕着高质量的发展。自从两年前华住从单纯追求规模的增长转型成以高质量品牌引领的这样一个发展策略，我们坚持持续地提升我们签约和开业的门店的质量要求。在这个大背景下，很高兴地和大家报告，我们的签约依然保持一个非常良好的节奏。

Speaker #2: Our hotel opening strategies we insist on the high quality development of our hotel network. Since two years ago, we are already shifted from purely focusing on quantity to focusing on a high quality growth of the hotel network.

Ivy Luo: Our hotel opening strategies, we insist on the high quality development of our hotel network. Since 2 years ago, we already shifted from purely focusing on quantity to focusing a high quality growth of the hotel network. Under our brand led high quality growth strategy, we have high standard and high requirement on the new signings and new opening. With that strategy, I'm happy to report that in Q1 of overall new signings is still at a healthy and high level.

[Translator]: Our hotel opening strategies, we insist on the high quality development of our hotel network. Since 2 years ago, we already shifted from purely focusing on quantity to focusing a high quality growth of the hotel network. Under our brand led high quality growth strategy, we have high standard and high requirement on the new signings and new opening. With that strategy, I'm happy to report that in Q1 of overall new signings is still at a healthy and high level.

Speaker #2: So under our brand-led, high-quality growth strategy, we have high standards and high requirements on the new signings and new openings. With that strategy, I'm happy to report that in the first quarter, overall new signings are still at a healthy and high level.

Speaker #4: 再保持良好的签约的节奏下，我们华族维持2026年的全年的开关店指标是应不变。

Hui Jin: 在保持良好的签约的节奏下，我们华住维持2026年的全年的开关店指标不变。

Speaker #2: With our healthy signing pace, we maintain our opening guidance for the full year of 2026 unchanged.

Ivy Luo: With our healthy signing pace, we maintain our opening guidance for the full year of 2026 unchanged.

[Translator]: With our healthy signing pace, we maintain our opening guidance for the full year of 2026 unchanged.

Speaker #4: 关于开业城市布局的这个规划上，华族目前采取的是两手抓两条腿走路的方式。一方面我们继续保持对下沉市场的这样一个渗透，同时我们基于目前房地产供应周期的因素的影响，我们正在重返一二线去重新布局我们的高品质高质量的新品的主力品牌，去重返一二线抢夺核心城市核心商圈。

Hui Jin: 关于开业城市布局的这个规划上，华住目前采取的是两手抓、两条腿走路的方式。一方面我们继续保持对下沉市场的这样一个渗透，同我们基于目前房地产供应周期的因素的影响，我们正在重返一二线，去重新布局我们的高品质高质量的新品的主力品牌，去重返一二线，抢夺核心城市核心商圈。

Ivy Luo: On the city coverage strategy, we have two lines of strategy which we are implementing at the same time. Firstly is still the penetration into lower tier cities. Secondly, given the current real estate market, the current supply cycle of the real estate market, we are also returning to the tier one and tier two cities. We are grabbing those emerging opportunities of those high quality properties in those core and premium district and premium locations. We will be developing our premium hotel products in those tier one and tier two cities.

[Translator]: On the city coverage strategy, we have two lines of strategy which we are implementing at the same time. Firstly is still the penetration into lower tier cities. Secondly, given the current real estate market, the current supply cycle of the real estate market, we are also returning to the tier one and tier two cities. We are grabbing those emerging opportunities of those high quality properties in those core and premium district and premium locations. We will be developing our premium hotel products in those tier one and tier two cities.

Speaker #2: On the city coverage strategy, we have two legs of strategy which we are implementing at the same time. So firstly is still the penetration into lower tier cities.

Speaker #2: And secondly, given the current real estate market and the current supply cycle of the real estate market, we are also returning to the tier-one and tier-two cities.

Speaker #2: We are grabbing those emerging opportunities of those high-quality properties in those core and premium districts and premium locations. We will be developing our premium hotel products in those tier-one and tier-two cities.

Speaker #4: 华族有非常充足的信心，同时在我下沉市场和核心城市保持一个非常高质量的增长。

Hui Jin: 华住有非常充足的信心，同时在下沉市场和核心城市保持一个非常高质量的增长。

Ivy Luo: We are fully confident that each role will be delivering high quality growth in both the lower tier cities as well as the tier 1 and 2 cities.

[Translator]: We are fully confident that each role will be delivering high quality growth in both the lower tier cities as well as the tier 1 and 2 cities.

Speaker #2: We are fully confident that H World will be delivering high-quality growth in both the lower-tier cities as well as the tier-one and tier-two cities.

Hui Jin: 谢谢。

Speaker #2: Thank you.

Ivy Luo: Thank you. Thank you. We will now take our next question from the line of Sijie Lin of CICC. Please ask your question, Sijie Lin.

[Translator]: Thank you.

Speaker #1: Thank you. We will now take our next question from the line of 思杰林 of CICC. Please ask your question, 思杰.

Operator: Thank you. We will now take our next question from the line of Sijie Lin of CICC. Please ask your question, Sijie Lin.

Speaker #5: 好，谢谢管理层。我是中金公司的林思杰。我的问题是关于中高端业务的发展，就是我们看到过去一段时间中高端，尤其是程璟的开店和签约都很不错，包括憨憨拳击大关首店也开始运营了，现在已经有12家签约。所以我想问问我们中高端的一个RevPAR的表现，相对于经济型和中档大概会怎么样？以及能否分享一下未来一段时间中高端的拳头产品，包括程璟和拳击大关，以及整个板块拓展的目标和经营重心？我来翻译成英文。 So, thank you, management. My question is about the upper mid-scale business development. For the last several quarters, upper mid-scale, especially Intercity, achieved quite impressive expansion speed and we see that Grand Ji opened its first hotel and has 12 new signings.

Sijie Lin: 好，谢谢管理层，我是中金公司林思洁。我的问题是关于这个中高端业务的发展，就是我们看到过去一段时间中高端，尤其是城际的这个开店和签约是很不错的，包括这个城际大观，首店也开始运营了，然后有了这个十二家签约。所以我想问问，就是我们这个中高端的RevPAR的表现，相对于这个经济型中档大概会怎么样，以及呢，就是可否分享一下未来一段时间这个中高端的拳头产品吧，包括城际和城际大观，以及整个板块的这个拓展的目标和经营的重心。我来翻译成英文。 So thank you management.

Sijie Lin: My question is about the upper-midscale business development. For the last several quarters, upper-midscale, especially Intercity, achieve quite impressive expansion speed. We see that Grand JI opened first hotel and has 12 new signings, so want to know how the RevPAR performance of upper-midscale compare with economy and midscale. Additionally, could you please share the expansion targets and operational focus of the upper-midscale segments, especially the Intercity and Grand JI, in the coming period. Thank you.

Speaker #5: So, I want to know, how is the RFPA performance of upper mid-scale compared with economy and mid-scale? And additionally, could you please share the expansion targets and operational focus of the upper mid-scale segment, especially Intercity and Grand G, in the coming period?

Speaker #5: Thank you.

Speaker #4: 好的，谢谢。我来回答这个问题。中高端是华族未来战略布局当中非常重要的一个组成部分，也是华族的战略重心。我很高兴的略好更表现其实略好于我们中大和国民市场，展现了华族在中高端市场品牌可运营能力的逐步形成。

Hui Jin: 好的，谢谢。我来回答这个问题。中高端是华住未来战略布局当中非常重要的组成部分，也是华住的战略重心。我很高兴地，表现其实略好于我们中档和国民市场，展现了华住在中高端市场品牌和运营能力的逐步形成。

Speaker #2: On the upper mid-scale segment is a core strategic part of our overall H World strategy. We are actually very happy to see that in the first quarter the overall RFPA recovery in the upper mid-scale segment is actually slightly better than our economy and mid-scale.

Ivy Luo: The upper midscale segment is a core strategic part of our overall H World strategy. We are actually very happy to see that in Q1, the overall RevPAR recovery in the upper midscale segment is actually slightly better than our economy and midscale. This showcases our growing brand power and product quality in the upper midscale segment.

[Translator]: The upper midscale segment is a core strategic part of our overall H World strategy. We are actually very happy to see that in Q1, the overall RevPAR recovery in the upper midscale segment is actually slightly better than our economy and midscale. This showcases our growing brand power and product quality in the upper midscale segment.

Speaker #2: This showcases our growing brand power and product quality in the upper mid-scale segment.

Speaker #4: 由于华族采取的是多品牌中高端的发展策略，我们四个品牌分别是成绩、大关、水晶和美居。就规模来讲，整体规模增长不错，但是单一品牌的品牌势能还不足。所以我们今年调整了开发策略更聚焦在一二线核心城市核心商圈去进一步树立我们这些品牌的旗舰店，进而来尽快提升四个品牌在中国消费者市场的品牌影响力。

Hui Jin: 由于华住采取的是多品牌中高端的发展策略，我们四个品牌分别是城际、大观、水晶和美居。就规模来讲，整体规模增长不错，但是单一品牌的品牌势能还不足，所以我们今年调整了开发策略，更聚焦在一二线核心城市核心商圈，去进一步树立我们这些品牌的旗舰店，进而来尽快提升四个品牌在中国消费者市场的品牌影响力。

Ivy Luo: We adopt a multi-brand strategy in the upper midscale segment. Namely is the Intercity, Grand JI, Mercure, and Crystal. Overall, the total network growth in the upper midscale is quite solid. When we breaking down into single brand, we do see that some of the brand still need further improvement in its overall brand power, which upper midscale strategy. We are returning to and refocusing back to the Tier 1 and Tier 2 cities to opening flagship stores in those core districts.

[Translator]: We adopt a multi-brand strategy in the upper midscale segment. Namely is the Intercity, Grand JI, Mercure, and Crystal. Overall, the total network growth in the upper midscale is quite solid. When we breaking down into single brand, we do see that some of the brand still need further improvement in its overall brand power, which upper midscale strategy. We are returning to and refocusing back to the Tier 1 and Tier 2 cities to opening flagship stores in those core districts.

Speaker #2: We adopt a multi-brand strategy in the upper mid-scale segment, so namely it's Intercity, Grand G, Mercure, and Crystal. Overall, the total network growth in the upper mid-scale is quite solid, but when we break it down into single brands, we do see that some of the brands still need further improvement in their overall brand power.

Speaker #2: With our upper mid-scale strategy, we are returning to and refocusing back on the tier-one and tier-two cities, opening flagship stores in those core districts.

Speaker #4: 我们的确花了很多时间在早期打磨四大品牌的不同产品、不同定位。我们希望形成四个品牌非常鲜明的市场定位和差异化。四个品牌在启动的阶段，对于华族来讲也是巨大挑战，但我坚信从长远来看，华族会依托这四个品牌实现在中高端市场的领导者的这样的市场地位。我们表示非常有信心。

Hui Jin: 我们的确花了很多时间在早期打磨四大品牌的不同产品、不同定位。我们希望形成四个品牌非常鲜明的市场定位和差异化。四个品牌在起动的阶段对于华住来讲也是巨大挑战，但我坚信从长远来看，华住会依托这四个品牌实现在中高端市场的领导者的这样的市场地位，我们表示非常有信心。

Speaker #2: At the initial stage of development, H World has been spending a lot of time setting the overall brand strategy as well as the design.

Ivy Luo: At the initial stage of development, we have been spending a lot of time setting the overall brand strategy as well as the design. We have very clear value proposition for each of our upper-midscale product. Of course, at the initial stage, you are always going to face some of the challenges, but we are very confident that in the longer term, our H World upper-midscale brands will be leading in the upper-midscale segment.

[Translator]: At the initial stage of development, we have been spending a lot of time setting the overall brand strategy as well as the design. We have very clear value proposition for each of our upper-midscale product. Of course, at the initial stage, you are always going to face some of the challenges, but we are very confident that in the longer term, our H World upper-midscale brands will be leading in the upper-midscale segment.

Speaker #2: So, we have very clear value propositions for each of our upper mid-scale products. Of course, at the initial stage, you are always going to face some of the challenges, but we are very confident that in the longer term, our H World upper mid-scale brands will be leading in the upper mid-scale segment.

Hui Jin: 谢谢。

Speaker #2: Thank you.

Ivy Luo: Thank you.

[Translator]: Thank you.

Speaker #1: Thank you. We will now take our next question from Jiewei Liu of Citrix. Please ask your question, Jiewei. Your line is open.

Operator: Thank you. We will now take our next question from Jiwei Liu of CITIC. Please ask your question, Jiwei, your line is open.

Speaker #6: 哎，管理层好，我是中信证券的刘继伟。我这边请教一个关于会员的问题啊，就是我们一方面其实现在去看这个商旅跟休闲的这种客源的需求还是比较波动的，另一方面其实最近这个OTA行业本身也在被监管，所以在这种大的背景下，目前我们的这种获客的整个的客源的渠道占比现在是怎么样的？包括从整个长期展望，估计这个渠道的结构的比例会不会有什么样的变化？以及的话呢，也想请教一下公司在整个的这个会员的营销方面有什么样的一些策略跟想法啊？ I translate my question in English. Hi, management. I'm Jiewei from Citrix. Against the backdrop of luck treating business and the narrow gas mix and the increasing regulation across OTA industry, can you share the current breakdown of our customer source channels and your all-look going forward?

Jiwei Liu: 管理层好，我是中信证券的刘继伟，我这边请教一个关于会员的问题啊，就是我们一方面其实现在去看这个商旅跟休闲的这种客源的需求还是比较波动的，另一方面其实最近这个OTA行业本身也在被监管，所以在这种大的背景下，目前我们的这种获客的整个的客源的渠道占比现在是怎么样的，包括从整个长期展望，估计这个渠道的结构的比例会有什么样的变化，以及的话呢，也想请教一下公司在整个的这个会员的营销方面有什么样的一些策略跟想法。Hi, management, I'm Jiwei Liu from CITIC Securities. Against the backdrop of fluctuating business and leisure guest mix and increasing regulation across the OTA industry, can you share the current breakdown of our customer source channels and your outlook going forward, as well as the company's plans and strategies for membership marketing?

[Analyst] (CITIC): 管理层好，我是中信证券的刘继伟，我这边请教一个关于会员的问题啊，就是我们一方面其实现在去看这个商旅跟休闲的这种客源的需求还是比较波动的，另一方面其实最近这个OTA行业本身也在被监管，所以在这种大的背景下，目前我们的这种获客的整个的客源的渠道占比现在是怎么样的，包括从整个长期展望，估计这个渠道的结构的比例会有什么样的变化，以及的话呢，也想请教一下公司在整个的这个会员的营销方面有什么样的一些策略跟想法。Hi, management, I'm Jiwei Liu from CITIC Securities. Against the backdrop of fluctuating business and leisure guest mix and increasing regulation across the OTA industry, can you share the current breakdown of our customer source channels and your outlook going forward, as well as the company's plans and strategies for membership marketing?

Speaker #6: As well as the company's plans and strategies for membership marketing? Thank you.

Jiwei Liu: Thank you.

[Analyst] (CITIC): Thank you.

Speaker #4: 好，我来回答这个问题。呃，华族整体来讲，CIS的比例，尤其我们一些关键指标保持还是相对稳定的。在呃，开业500多家店，那包括去年保持一个高增长的同时，我们获客率还是保持一个相对稳定的一个状态。我们觉得还是整体还是表现不错的。

Hui Jin: 华住整体来讲，CRS的比例，尤其我们一些关键指标保持还是相对稳定的。在开业五百多家店，包括去年保持一个高增长的同时，我们混率还是保持一个相对稳定的状态，我们觉得整体还是表现不错的。

Speaker #2: Overall, our CIS, as well as some of the other key metrics of our membership, have been performing quite stable. Even in the case that we've been expanding our overall network rapidly last year and opened over 500 new hotels this year, the overall CIS contribution to and the membership booking has been quite stable.

Ivy Luo: Overall, our CRS as well as some of the other key metrics of our membership have been performing quite stable, even under the case that we've been expanding our overall network rapidly last year and opened over 500 new hotels this year. Overall CRS contribution and the membership booking has been quite stable.

[Translator]: Overall, our CRS as well as some of the other key metrics of our membership have been performing quite stable, even under the case that we've been expanding our overall network rapidly last year and opened over 500 new hotels this year. Overall CRS contribution and the membership booking has been quite stable.

Speaker #4: 但的确我们看到一些新的变化，由于中国市场休闲旅游入境等一些新型的客户越来越多，对华族会而言去建立新的能力实现这些会员的连接和转换，的确是华族会下个阶段非常核心的关键任务。

Hui Jin: 但的确我们看到一些新的变化，由于中国市场休闲旅游、入境等一些新型的客户越来越多，对于华住会而言，去建立新的能力，实现这些会员的连接和转换，的确是华住会下个阶段非常核心的关键任务。

Speaker #2: But at the same time, we are also observing some of the emerging trends, including leisure travel as well as the overall increase in inbound tourism.

Ivy Luo: At the same time, we are also observing some of the emerging trends, including the leisure travel as well as the overall increase in the inbound tourism. How to capture those emerging traffic and the new type of consumers is one of the very important topic for H World and for our H World membership.

[Translator]: At the same time, we are also observing some of the emerging trends, including the leisure travel as well as the overall increase in the inbound tourism. How to capture those emerging traffic and the new type of consumers is one of the very important topic for H World and for our H World membership.

Speaker #2: So, how to capture those emerging traffic and the new types of consumers is one of the very important topics for H World and for our H World membership.

Speaker #4: 我想大家也关注到了华族在持续引入一些新的核心团队，包括我们和行业领先的AI企业展开个性化和新型会员的转换。这些动作都表明了华族在华族会这个营销上面的坚定的投入。

Hui Jin: 大家也关注到了，华住在持续引入一些新的核心团队，包括我们和行业领先的AI企业展开个性化和新型会员的转换，这些动作都表明了华住在华住会这个营销上面的坚定的投入。

Speaker #2: You may have noticed that, at H World, we have been bringing in some new talent into the company. We are also working with some of the leading AI companies to develop new selling and marketing strategies, as well as to implement some of the new strategies and initiatives in member conversion.

Ivy Luo: You may have noticed that H World, we have been bringing in some of the new talents into the company, and we are also working with some of the leading AI companies, to develop new selling marketing strategies as well as to solve the new strategy and initiatives in member conversion.

[Translator]: You may have noticed that H World, we have been bringing in some of the new talents into the company, and we are also working with some of the leading AI companies, to develop new selling marketing strategies as well as to solve the new strategy and initiatives in member conversion.

Speaker #4: 同时华族会还在企业级的预订方面也在持续发力。我们通过华族会的能力持续去服务好中国头部企业的商旅客人，我想这也是华族会非常重要的一个能力的提升，也是新的客源的转换。

Hui Jin: 同时华住会还在企业级的预定方面也在持续发力，我们通过华住会的能力持续去服务好中国头部企业的商旅客人，我想这也是华住会非常重要的一个能力的提升，也是新的客源的转换。

Speaker #2: And improving our capability in the corporate B2B channel, we are using our membership to train us leading corporate business travelers. We do believe that this also showcases the improving membership capability of H World.

Ivy Luo: Improving our capability in the corporate B2B channel. We are using our membership to, you know, leading corporate business travelers. We do believe that this is also showcases the improving membership capability of H World.

[Translator]: Improving our capability in the corporate B2B channel. We are using our membership to, you know, leading corporate business travelers. We do believe that this is also showcases the improving membership capability of H World.

Speaker #4: 谢谢。

Hui Jin: 谢谢。

Speaker #2: Thank you.

Ivy Luo: Thank you.

Speaker #1: Thank you. We will now take our next question from the line of Lia Pan of Goldman Sachs. Please ask your question, Lia. Your line is open.

Operator: Thank you. We will now take our next question from the line of Leah Pan of Goldman Sachs. Please ask your question, Leah, your line is open.

Speaker #3: 感谢管理层给我提问的机会。我是高盛香港的分析师 Lia Pan 嘉农。我有一个关于公司海外扩张战略的问题。公司管理层刚刚提到近期在东南亚地区布局持续推进，包括签约马来西亚的拳击酒店，以及进入柬埔寨市场。能否请管理层具体分享一下我们目前在这些区域的扩张进展，以及未来几年在东南亚市场和其他全球市场的增长目标？另外，也想请问一下管理层如何看待中东的问题，对公司目前国际业务和未来海外拓展的影响。So please allow me to translate my question into English. Thanks, management, for taking my question. This is Lia from Goldman Sachs. I have a question on the company’s international strategy.

Leah Pan: 感谢管理层给我提问的机会，我是高盛香港的分析师 Leah Pan 佳龙。我有一个关于公司海外扩张战略的问题。公司管理层刚刚提到近期在东南亚地区布局持续推进，包括签约马来西亚的全季酒店以及进入柬埔寨市场。能否请问管理层再具体分享一下我们目前在这些区域有什么扩张的进一步的进展，以及未来几年在东南亚市场以及其他的全球市场的增长目标。另外也想请问一下管理层如何看待中东的这个问题对于公司目前国际业务和未来海外拓展的影响。 Thanks for taking my question. This is Leah from Goldman Sachs. I have a question on the company's international strategy. I think you mentioned the business stepping up in the Southeast Asian market, including the signing of JI Hotels in Malaysia and the entry into Cambodia with the brands JI Hotel and Steigenberger. Could you please share with us more on the Southeast Asia market and the growth targets over the next few years?

Speaker #3: I think you mentioned the recent stepping up in the Southeast Asia market, including the signing up of G Hotel in Malaysia and the entry into Cambodia with the brands G Hotel and Schneckenberg.

Speaker #3: So, could you please share with us more, potentially, in your Southeast Asia market and the growing targets over the next few years? And also, given the company's business exposure in the Middle East market, how do you see the impact from the ongoing Middle East crisis to your current business, as well as the global expansion strategy?

Leah Pan: Given company's business exposure in the Middle East market, how do you see the impact from the ongoing Middle East crisis to your current business and as well as the global expansion strategy? Thank you.

Speaker #3: Thank you.

Speaker #4: 好，我是金辉。我先回答第一个问题，关于东南亚的战略和布局。的确，第一阶段我们在越南和老挝成功的，包括柬埔寨成功的开店，给了我们莫大的证明了中国的品牌，中国的供应链，中国的会员优势都能很好的赋能我们在东南亚的开店。因而基于这样的一个能力的基础，我们认为华族会持续加大在整个东南亚布局的规模和速度。所以对此我们表示非常的，对长期来讲是非常乐观的一个新的市场，对华族来讲也是一个非常充满机会的市场。

Hui Jin: 好，我是金辉，我先回答第一个问题，关于东南亚的战略和布局。的确，第一阶段我们在越南和老挝，包括柬埔寨成功的开店，给了我莫大的信——证明了中国的品牌、中国的供应链、中国的会员优势都能很好地赋能我们在东南亚的开店。因而基于这样的一个能力的基础，我们认为华住会持续加大在整个东南亚布局的规模和速度，所以对此我们表示非常的，对长期来讲是非常乐观的一个新的市场，对华住来讲也是一个非常充满机会的市场。

Speaker #2: So you do see that as a first step with successfully open hotels in Vietnam, in Laos, and in Cambodia. This gives us a very strong confidence that H World's products management, supply chain, as well as members can actually empower the hotel operation in the overseas market.

Ivy Luo: You do see that as a first step, we successfully opened hotels in Vietnam, in Laos and in Cambodia. This gives us a very strong confidence that H World products, management, supply chain as well as members can actually empower the hotel operation in the overseas market. Going forward, we are going to step up in the overall investment in the Southeast Asia market in terms of the network expansion, the size as well as the pace of expansion. We do think that overall the Southeast Asia is a brand new market that provides new opportunities to H World.

[Translator]: You do see that as a first step, we successfully opened hotels in Vietnam, in Laos and in Cambodia. This gives us a very strong confidence that H World products, management, supply chain as well as members can actually empower the hotel operation in the overseas market. Going forward, we are going to step up in the overall investment in the Southeast Asia market in terms of the network expansion, the size as well as the pace of expansion. We do think that overall the Southeast Asia is a brand new market that provides new opportunities to H World.

Speaker #2: So, going forward, we are going to step up the overall investment in the Southeast Asia market in terms of network expansion, the size, as well as the pace of expansion.

Speaker #2: We do think that, overall, Southeast Asia is a brand new market that provides new opportunities to H World.

Speaker #4: 你好，我是Arthur Yujin，本来回答第二个关于中东战争对我们华族国际的这个影响。首先从整体一季度的结果来看，我们的影响是比较有限的。一方面，华族国际在中东我们仅有10家这样的一个加盟店，那对华族国际的收入和利润的这个占比还是比较小的。另一方面，对于欧洲能源成本的这个上升的影响，我们通过自己内部在管理上面的努力，去降低这个影响。现在看这个影响还是相对比较可控的。但整体中东的局势仍然存在不确定性，所以我们会密切关注事态的进一步的进展跟市场进行沟通。

Arthur Yu: 你好，我是Arthur于军瑞，我来回答第二个关于中东战争对我们华住国际的影响。首先从整体一季度的结果来看，我们的影响是比较有限的。一方面，华住国际在中东我们仅有十家这样的一个加盟店，那对华住国际的收入和利润的这个占比还是比较小的。另外一方面，对于欧洲能源成本的这个上升的影响，我们通过自己内部在管理上面的努力，去降低这个影响。现在看这个影响还是相对比较可控的。但整体中东的局势仍然存在不确定性，所以我们会密切关注事态的进一步的进展，跟市场进行沟通。

Speaker #2: So this is also after the second country related to the Middle East conflict. Based on our first quarter results, we see very limited impact from the Middle East conflict to our H World international.

Ivy Luo: This is Arthur Yu. Answer the second question related to the Middle East conflict. Based on our Q1 results, we see very limited impact from the Middle East conflict to our H World International. In the Middle East, our HWI only have 10 managed type hotels, and it has manageable and non-material contribution to the revenue as well as profit. On the overall increase in the energy cost, we are taking effort in controlling the increase and managing the increase in overall energy. So far, we think the impact of the rising energy cost on HWI is still manageable. Of course, there are still uncertainties in how the overall situation in the Middle East is gonna evolve.

[Translator]: This is Arthur Yu. Answer the second question related to the Middle East conflict. Based on our Q1 results, we see very limited impact from the Middle East conflict to our H World International. In the Middle East, our HWI only have 10 managed type hotels, and it has manageable and non-material contribution to the revenue as well as profit. On the overall increase in the energy cost, we are taking effort in controlling the increase and managing the increase in overall energy. So far, we think the impact of the rising energy cost on HWI is still manageable. Of course, there are still uncertainties in how the overall situation in the Middle East is gonna evolve.

Speaker #2: In the Middle East, our HWI only has 10 managed franchise hotels, and it has a manageable and non-material contribution to both revenue and profit.

Speaker #2: And on the overall increase in the energy cost, we are taking effort in controlling the increase and managing the increase in the overall energy.

Speaker #2: So far, we think the impact of dividing energy cost on HWI is still manageable. But of course, there is still uncertainty in how the overall situation in the Middle East is going to evolve.

Speaker #2: So, we will keep a close eye on the overall development there. Thank you.

Ivy Luo: We will keep a close eye on the overall development there. Thank you.

[Translator]: We will keep a close eye on the overall development there. Thank you.

Speaker #1: Thank you. We will now take our next question from the line of Lydia Ling of Citi. Please ask your question, Lydia, your line is open.

Operator: Thank you. We will now take our next question from the line of Lydia Ling of Citi. Please ask your question, Lydia. Your line is open.

Speaker #3: 管理层好，我是会计的Lydia，感谢给我提问的机会。那我的问题呢，是关于那个利润率方面的。我们看到一季度公司的利润率还是有持续的提升，费用率也是继续的优化。那怎么看全年的这个利润率的一个趋势？如果分地区来看的话，中国现在也是比较高的一个水平。那随着轻资产战略的推进，还有多少提升空间？那么德意志海鸥（DH）那边可以看到一季度或者整个华住国际那边一季度是在减亏，那怎么看全年的利润情况？ Hi, management. Lydia from Citi, and thanks for taking my questions. So, my question would be on the profitability. In the first quarter, we continue to see margin improvement and further optimization in the cost ratios.

Lydia Ling: 管理层好，我是Citi的Lydia，感谢给我提问的机会。那我的问题呢，是关于那个利润率方面的，那我们看到一季度呢，公司的利润率还是有持续的提升，那费用率也是继续的优化，那怎么看全年的这个利润率的一个趋势？如果分地区来看的话，那中国现在也是比较高的一个水平，那随着这个轻资产的这个战略进一步推进，那还有多少的提升空间？那么DH那边可以看到一季，或者整个就是华住国际那边一季度的，是有在减亏，那怎么看全年的这个利润的一个情况。Hi management, Lydia from Citi, and thanks for taking my questions.

Lydia Ling: My question would be on the profitability. In Q1, we continue to see the margin improvement and a further optimization in the cost ratios. What would be your outlook for the full year margin trend? If by region in China, as a light strategy continues to push forward, what will be the upside from current high level? We see the international part, the loss, actually narrowed on year-on-year basis in Q1. What would be your target for the overseas profitability on full year basis? Thank you.

Speaker #3: So, what would be your outlook for the full-year margin trend? If, by region, in China as the light strategy continues to push forward, what would be the upside from the current high level?

Speaker #3: And we see the international part—the loss actually narrowed on a yearly basis in the first quarter. So, what would be your target for overseas profitability on a full-year basis?

Speaker #3: Thank you.

Speaker #4: 好，谢谢Lydia。我是Arthur Yujin，我来回答这个问题。首先我们看到我们第一季度的这个EBITDA的这个表现还是很好的。那主要是有三个方面我们做出了一个动作的影响。第一呢，是随着集团的轻资产的这个战略推进，我们还是有信心华族的酒店业务的EBITDA率将在同比是持续的稳定的这样的一个提升，主要是由轻资产的战略所带来的。第二一点呢，是我们自己的直营业务，那我们通过收益管理以及成本管控，特别是在减租方面做出一些作用成效的工作。是比较好的完成了这样的我们的一个成本控制的这样的一个目标。取得了比较好的结果。

Arthur Yu: 好，谢谢 Lydia，我是 Arthur 于军瑞，我来回答这个问题。首先我们看到我们第一季度的 EBITDA 的表现还是很好的，那主要是有三个方面，我们做出了一个动作的影响。第一呢，是随着集团的轻资产的战略的推进，我们还是有信心华住的酒店业务的 EBITDA 率将在同比是持续的、稳定的这样的一个提升，主要是由轻资产的战略所带来的。第二一点呢，是我们自己的直营业务，那我们通过收益管理以及成本管控，特别是在减租方面做出一些卓有成效的工作，是比较好地完成了这样的我们的一个成本控制的这样的一个目标，取得了比较好的结果。

Ivy Luo: On Q1 EBITDA, there are several things that we are doing to improve the overall EBITDA performance. Firstly is our asset light strategy. As we continue pushing forward asset light strategy, we are confident that for our H World Hotel business, the adjusted EBITDA margin will continue to improve steadily. Secondly, also on the overall lease and own business, we are also improving the performance of this segment by revenue management as well as cost control, including the negotiation of rental reduction.

[Translator]: On Q1 EBITDA, there are several things that we are doing to improve the overall EBITDA performance. Firstly is our asset light strategy. As we continue pushing forward asset light strategy, we are confident that for our H World Hotel business, the adjusted EBITDA margin will continue to improve steadily. Secondly, also on the overall lease and own business, we are also improving the performance of this segment by revenue management as well as cost control, including the negotiation of rental reduction.

Speaker #2: First quarter EBITDA, there are several things that we are doing to improve the overall EBITDA performance. So, firstly, is our SLI strategy. As we continue pushing forward the SLI strategy, we are confident that for our H World hotel business, the adjusted EBITDA margin will continue to improve steadily.

Speaker #2: Secondly, also on the overall leased and owned business, we are also improving the performance of this segment by revenue management as well as cost control.

Speaker #2: Including the negotiation of rental reduction.

Speaker #4: 然后刚才你提到的关于海外的业务，那我们在我们华族国际，特别是DH的业务方面，我们在持续的推进成本降低的这样的一个项目。那在这个项目的基础之上，我们会深挖我们自己的每一项成本的结构，然后对我们自己的成本做出精细化的管理，以提升我们自己的运营效率。那这方面我们已经在第一季度取得了初步的这样的一个效果，后面我还会继续去持续去推进。

Arthur Yu: 然后，刚才你提到的关于海外的业务，那我们在华住国际，特别是DH的业务方面，我们在持续地推进成本降低的这样的一个项目。那在这个项目的基础之上，我们会深挖我们自己的每一项成本的结构，然后对我们自己的成本做出精细化的管理，以提升我们自己的运营效率。那这方面我们已经在第一季度取得了初步的这样的一个效果，后面往后我们还会继续去持续推进。

Speaker #2: On the overseas business, HWI, especially for DH, we continue to push forward the cost reduction initiatives. We are actually looking into each item in the overall cost structure to improve the overall efficiency.

Ivy Luo: On overseas business, HWI, especially for DH, we continue to push forward cost reduction initiatives. We are actually looking into each item in the overall cost structure to improve the overall efficiency in Q1 this year, and we will continue to pushing forward the cost reduction initiatives in DH.

[Translator]: On overseas business, HWI, especially for DH, we continue to push forward cost reduction initiatives. We are actually looking into each item in the overall cost structure to improve the overall efficiency in Q1 this year, and we will continue to pushing forward the cost reduction initiatives in DH.

Speaker #2: In the first quarter this year, we will continue to push forward the cost reduction initiatives in DH.

Speaker #4: 最后一点我也想补充一句的是，我们除了做好多成本降低方面的努力，我们其实还在加大一些重点项目上面的投资。例如说像我们的数字化和AI的建设，华族会会员体系的升级，以及品牌的推广和宣传。例如我们Q1做了汉庭快捷的发布。在这些事情上面呢，我们是保持一个长期可持续发展的这样的想法。那华族需要对我们自己的品牌和我们会员体系和技术体系做必要的投入。但是从全年的这样的一个成本来讲，我们会在我们自己内部的预算的基础之上，做出一个这样的一个保持稳定的一个投入，让我们在投入和产出方面有一个比较好的汇报。谢谢。

Arthur Yu: 最后一点我也想补充一句的是，我们除了做好多成本降低方面的努力，我们其实还在加大一些重点项目上面的投资，例如说像我们的数字化和AI的建设、华住会会员体系的升级，以及品牌的推广和宣传。例如我们Q1做了汉庭快捷的发布。在这些事情上面呢，我们是保持一个长期可持续发展的这样的一个想法。那华住需要对我们自己的品牌和会员体系和技术体系做必要的投入。但是从全年的这样的一个成本来讲，我们会在我们自己内部的预算的基础之上，做出一个这样的一个保持稳定的一个投入，让我们在投入和产出方面有一个比较好的回报。谢谢。

Speaker #2: I would like to add that, aside from cost control and cost reduction, H World is also making some investment in key areas such as digitalization, technology, and AI development, as well as our overall H World membership building.

Ivy Luo: I would like to add that aside from the cost control and cost reduction, H World is also making some investment in key areas such as digitalization, technology, and AI development, as well as our overall H World membership building, the promotion, and marketing of our core brand. For example, in Q1, we launched our Hanting Inn product. Based on the overall budget and overall planning, we do need to make necessary investment. Of course, we will be looking at the overall ROI of those investment. On the full year basis, we will have control on the cost, but we also make necessary investment for our long-term sustainable growth.

[Translator]: I would like to add that aside from the cost control and cost reduction, H World is also making some investment in key areas such as digitalization, technology, and AI development, as well as our overall H World membership building, the promotion, and marketing of our core brand. For example, in Q1, we launched our Hanting Inn product. Based on the overall budget and overall planning, we do need to make necessary investment. Of course, we will be looking at the overall ROI of those investment. On the full year basis, we will have control on the cost, but we also make necessary investment for our long-term sustainable growth.

Speaker #2: The promotion and marketing of our core brand. For example, in the first quarter, we launched our Hanting Inn product. So, based on the overall budget and overall planning, we do need to make necessary investment.

Speaker #2: But of course, we will be looking at the overall ROI of those investments. On a full-year basis, we will have control on the cost, but we also make necessary investments for our long-term sustainable growth.

Operator: Thank you.

Ivy Luo: Thank you.

Ivy Luo: We'll take the last question.

Operator: We'll take the last question.

Speaker #2: We will take the last question.

Speaker #3: Certainly. Our last question today comes from the line of Xingchen of UBS. Please ask your question. Xing, your line is open.

Operator: Certainly. Our last question today comes from the line of Xin Chen of UBS. Please ask your question. Xin, your line is open.

Ivy Luo: Certainly.

Operator: Our last question today comes from the line of Xin Chen of UBS. Please ask your question. Xin, your line is open.

Speaker #5: 感谢万盛给我这个提问的机会。我是UBS的陈鑫。我的问题是关于分红的，我相信很多投资者都很关注。就想请管理层和我们分享一下2026年我们的股东回报的计划。谢谢。 Let me translate to English. This is Chen Xin from UBS. My question is on dividends. Could the management please share the 2026 shareholder return plan with us?

Xin Chen: 感谢管理层给我这个提问的机会，我是UBS的陈鑫。我的问题是关于分红的，我相信很多投资者都很关注。就是想请管理层和我们分享一下二零二六年，我们的股东回报的计划。谢谢。 Let me translate to English. This is Xin Chen from UBS. My question is on dividends. Could the management please share the 2026 shareholder return plan with us? Thank you.

Speaker #5: Thank you.

Speaker #4: 好，谢谢陈鑫。我来回答这个问题。从我们刚才的准备的材料可以看到，华族是有着非常优秀的这样的一个资产负债表和比较稳定的这样的一个现金流。那像我们刚才所提到的，我们推进的轻资产策略，成本降低上面做出的一些努力，以及我们的海外业务的不断的这样一个发展，我们很自信在去进行这样的一个推进的。那我们在股东回报上面呢，我们也会持续的去推进我们的股东回报。后续具体的我们的方案，我们会及时跟市场和分析师们进行沟通。但是我们总体的方针是，我们会用我们自己的现金流来尽可能的回报我们的股东。谢谢。

Arthur Yu: 好，谢谢陈鑫，我来回答这个问题。从我们刚才准备的材料可以看到，华住是有着非常优秀的这样的一个资产负债表和比较稳定的这样的一个现金流。那像我们刚才所提到的，我们推进的轻资产策略，成本降低上面做出的一些努力，以及我们的海外业务的不断的这样一个发展，我们很自在去进行这样的一个推进的。那我们在股东回报上面呢，我们也会持续地去推进我们的股东回报。后续具体的我们的方案，我们会及时跟市场和分析师们进行沟通。但是我们总体的方针是，我们会用我们自己的现金流来尽可能地回报我们的股东。谢谢。

Speaker #2: Thank you, Chen Xin. So, as you can see from our presentations, H World has a very strong and solid balance sheet, as well as stable cash flow.

Ivy Luo: Thank you, Xin Chen. As you can see from our presentations, H World have very strong and solid balance sheet as well as stable cash flow. Going forward, as we continue pushing forward the asset-light strategy, and those cost reduction initiatives, we will maintain our shareholder return plan in place. Going forward, if there's anything new, we will update with the market in time. Overall, for the overall direction, is that we will be using our own cash flow to return to the shareholders. Thank you.

[Translator]: Thank you, Xin Chen. As you can see from our presentations, H World have very strong and solid balance sheet as well as stable cash flow. Going forward, as we continue pushing forward the asset-light strategy, and those cost reduction initiatives, we will maintain our shareholder return plan in place. Going forward, if there's anything new, we will update with the market in time. Overall, for the overall direction, is that we will be using our own cash flow to return to the shareholders. Thank you.

Speaker #2: And going forward, as we continue pushing forward the SLI strategy and those cost reduction initiatives, we will maintain our shareholder return plan in place.

Speaker #2: Going forward, if there's anything new, we will update with the market in time. But overall, for the overall direction, we will be using our own cash flow to return to the shareholders.

Speaker #2: Thank you.

Speaker #3: Thank you. That’s the end of the question-and-answer session. I’ll now turn the conference back to Ms. Ivy Law for closing comments.

Operator: Thank you. That is the end of the question and answer session. I would now like to turn the conference back to Ms. Ivy Luo for closing comments.

Speaker #2: Thank you, everyone, for taking your time with us today. This will conclude today's call, and we look forward to seeing you in the upcoming quarters.

Ivy Luo: Thank you everyone for taking your time with us today. This will conclude today's call, and we look forward to seeing you in the upcoming quarters. Bye-bye.

Speaker #2: Bye-bye.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.