Q2 2026 H World Group Ltd Earnings Call

August 17, 2026

Speaker #2: Good day, and thank you for standing by. Welcome to the H World Q2 2026 earnings conference call. At this time, all participants are in a listen-only mode.

Operator: Welcome to the H World Q2 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 this session, you will need to press star one one on your telephone. You will 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 would now like to hand the conference over to your speaker today, Ivy Lau. Please go ahead.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star one-one (*)11 on your telephone; you will then hear an automated message advising your hand is raised.

Speaker #2: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ivy Law.

Speaker #2: Please go ahead.

Ivy Luo: Thank you, operator. Good evening, and good morning, everyone. Thanks for joining us today. Welcome to H World Group 2026 second quarter and H1 earnings conference call. Joining us today is our founder and Executive Chairman, Mr. Ji Qi, our CEO, Mr. Jin Hui, our CFO, Mr. Arthur Yu. 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 SEC. H World Group does not undertake any obligation to update any forward-looking statements except as required under applicable laws.

Speaker #3: Thank you, operator. Good evening and good morning, everyone. Thank you for joining us today. Welcome to H World Group's Q2 2026 and Q1 earnings conference call.

Speaker #3: Joining us today are our Founder and Executive Chairman, Mr. Ji Qi; our CEO, Mr. Jin Hui; and our CFO, Mr. Author Yu. Following our prepared remarks, management will be available to answer your questions.

Ivy Luo: 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 SEC. H World Group does not undertake any obligation to update any forward-looking statements except as required under applicable laws.

Speaker #3: 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.

Speaker #3: 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 #3: 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: 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 earlier 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. Jin Hui, to discuss our business performance in the second quarter of 2026. Mr. Jin, please.

Speaker #3: 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 #3: 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 second quarter of 2026.

Speaker #3: Mr. Jin, please.

Jin Hui: Dear investors and analysts, good day. Thanks for joining us today. Welcome to H World Group's second quarter 2026 earnings conference call. During the H1 of 2026, domestic culture and tourism travel in China maintained steady growth. According to the Ministry of Culture and Tourism, domestic resident trips reached 3.5 billion in the H1, representing a 5.4% year-over-year increase. As visa-free policy for multiple countries continued to take effect, inbound tourism gained strong momentum, bringing new growth opportunities to China's lodging industry. On the consumption structural front, the growth of total domestic travel spending moderated up 2% year-over-year to CNY 3.2 trillion in the H1. This reflects new consumption characteristics among travelers, which were more frequent trips with more prudent spending decisions.

Jin Hui: [Foreign language]

Ivy Luo: Dear investors and analysts, good day. Thanks for joining us today. Welcome to H World Group's second quarter 2026 earnings conference call.

Speaker #4: 各位投资人分析师，大家好。感谢大家参加华硕集团2026年第二季度业绩电话会。

Speaker #3: Dear investors and analysts, good day. Thank you for joining us today. Welcome to the H World Group Q2 2026 earnings conference call.

Speaker #4: 2026年上半年国内文旅出行需求稳健上行。据文旅部统计，上半年国内居民出游规模达34.6亿人次，同比增长5.4%。随着多国免签政策持续落地，入境游客热度攀升，为国内住宿业带来全新增量。消费结构方面，同期国内出游总花费增速放缓，上半年达3.2万亿元，同比增长2%。折射出大众出行频次提升与消费决策趋于谨慎的高品质理性化的市场新特征。

Jin Hui: [Foreign language]

Ivy Luo: During the H1 of 2026, domestic culture and tourism travel in China maintained steady growth. According to the Ministry of Culture and Tourism, domestic resident trips reached 3.5 billion in the H1, representing a 5.4% year-over-year increase. As visa-free policy for multiple countries continued to take effect, inbound tourism gained strong momentum, bringing new growth opportunities to China's lodging industry. On the consumption structural front, the growth of total domestic travel spending moderated up 2% year-over-year to CNY 3.2 trillion in the H1. This reflects new consumption characteristics among travelers, which were more frequent trips with more prudent spending decisions.

Speaker #3: During the first half of 2026, domestic cultural and tourism travel in China maintained steady growth. According to the Ministry of Culture and Tourism, domestic resident trips reached 3.5 billion in the first half, representing a 5.4% year-over-year increase.

Speaker #3: As the visa-free policy for multiple countries continued to take effect, inbound tourism gained strong momentum, bringing new growth opportunities to China's lodging industry. On the consumption structural front, the growth of total domestic travel spending moderated, up 2% year over year to RMB 3.2 trillion in the first half.

Speaker #3: This reflects new consumption characteristics among travelers, which include more frequent trips and more prudent spending decisions.

Speaker #4: 近期文旅部印发旅游强国建设15规划，明确2030年发展目标。国内居民年出游人次突破83亿，总花费达7.7万亿元。入境旅游人次达1.9亿，消费总额超1,500亿美元。这份规划当中也提到后续会调整文旅区域布局，加码高质量文旅产品的供给。我们认为文旅以及出行相关产业链长期还有不小的增长潜力。未来华硕也会继续用好我们多品牌的布局，线下门店运营经验和数字化能力，稳步推进品牌及网络建设，承接住旅游出行带来的住宿需求。

Jin Hui: Recently, the government issued a plan to build China into a nation strong in tourism during the 15th Five-Year Plan period, which laid out 2030 targets including annual domestic resident trips exceeding 8.3 billion, with total consumption reaching CNY 7.7 trillion, and inbound tourist arrivals reaching 190 million, with total spending exceeding $150 billion. The plan also outlined adjustments to the tourism regional layout and a greater supply of high-quality culture and tourism-related products. We believe the travel-related industry supply chain has great long-term growth potential.

Jin Hui: [Foreign language]

Ivy Luo: Recently, the government issued a plan to build China into a nation strong in tourism during the 15th Five-Year Plan period, which laid out 2030 targets including annual domestic resident trips exceeding 8.3 billion, with total consumption reaching CNY 7.7 trillion, and inbound tourist arrivals reaching 190 million, with total spending exceeding $150 billion. The plan also outlined adjustments to the tourism regional layout and a greater supply of high-quality culture and tourism-related products. We believe the travel-related industry supply chain has great long-term growth potential. Moving forward, H World Group will keep leveraging our multi-brand portfolio, hotel operation expertise, and digital capabilities to steadily expand our brand network and capture accommodation demand brought by travelers.

Speaker #3: Recently, the government issued a plan to build China into a nation strong in tourism during the 15th Five-Year Plan period. The plan laid out 2030 targets, including annual domestic resident trips exceeding 8.3 billion, with total consumption reaching RMB 7.7 trillion. Inbound tourist arrivals are projected to reach 190 million, with total spending exceeding $150 billion.

Speaker #3: The plan also outlined adjustments to the tourism regional layout and a greater supply of high-quality cultural and tourism-related products. We believe the travel-related industry supply chain has great long-term growth potential.

Speaker #3: Moving forward, H World Group will keep leveraging our multi-brand portfolio, hotel operation expertise, and digital capabilities to steadily expand our brand network and capture accommodation demand brought by travelers.

Jin Hui: Moving forward, H World Group will keep leveraging our multi-brand portfolio, hotel operation expertise, and digital capabilities to steadily expand our brand network and capture accommodation demand brought by travelers. 面对当下行业机遇与挑战，华住始终坚守长期主义，做难而正确的事情。我们扎根大众住宿赛道，锚定高质量发展。在酒店网络的布局上，我们持续开拓下沉市场，同时抢占核心城市优质点位，持续优化存量门店布局。二季度，集团通过区域突破和低线城市渗透，实现了高质量的网络扩张。在营房量同比增加12.7%的驱动下，集团酒店GMV同比增长13.2%至305亿元。华住会员体量及会员预订间夜量也均实现稳步增长。更为重要的是，集团轻资产的加盟业务，无论在规模、收入还是利润上均实现了强劲的增长。2026年二季度加盟收入同比提升25.2%至36亿元，经营毛利同比增长18.5%至22亿元。

Jin Hui: [Foreign language]

Speaker #4: 面对当下行业机遇与挑战，华硕始终坚守长期主义做男儿正确的事情。我们扎根大众住宿赛道，锚定高质量发展。在酒店网络的布局上，我们持续开拓下沉市场，同时抢占核心城市优质点位，持续优化存量门店布局。二季度集团通过区域突破和低线城市渗透，实现了高质量的网络扩张，再赢房量同比增加12.7%的驱动下，集团酒店GMV同比增长13.2%至305亿元。华硕会会员体量及会员预订签约量也均实现稳步增长。更为重要的是，集团轻资产的加盟业务，无论在规模、收入还是利润上，均实现了强劲的增长。2026年二季度加盟收入同比提升25.2%至36亿元，经营毛利同比增长18.5%至22亿元。

Ivy Luo: Facing the current industry opportunities and challenges, H World Group remains committed to do the right thing for the long term. We focus on the mass market lodging segment and emphasize high-quality development. On hotel network, we continue expanding into lower-tier cities, while at the same time securing those prime locations in the core cities, continuously optimizing our existing hotel footprint. In Q2, we achieved high-quality network expansion through regional breakthroughs and lower-tier city penetration. Backed by a 12.7% year-over-year increase in the number of rooms in operation, the group's hotel GMV grew 13.2% year-over-year to CNY 30.5 billion. Room nights booked by members also achieved steady growth. More importantly, the group's asset-light, managed and franchised business delivered robust growth across scale, revenue, and profit.

Speaker #3: Facing the current industry opportunities and challenges, H World remains committed to doing the right thing for the long term. We focus on the mass-market lodging segment and emphasize high-quality development.

Speaker #3: On hotel network, we continue expanding into lower-tier cities, while at the same time securing those prime locations in the core cities, continuously optimizing our existing hotel footprint.

Speaker #3: In the second quarter, we achieved high-quality network expansion through regional breakthroughs and lower-tier city penetration. Backed by a 12.7% year-over-year increase in the number of rooms in operation, the group's hotel GMV grew 13.2% year-over-year to RMB 30.5 billion.

Speaker #3: Room nights booked by members also achieved steady growth. More importantly, the group assets like managed hotels and franchise business delivered robust growth across scale, revenue, and profit.

Speaker #3: In the second quarter, managed hotels and franchise revenue increased 25.2% year-over-year to RMB 3.6 billion, and gross operating profit grew 18.5% year-over-year to RMB 2.2 billion.

Ivy Luo: In Q2, managed and franchise revenue increased 25.2% year-over-year to CNY 3.6 billion, and gross operating profit grew 18.5% year-over-year to CNY 2.2 billion.

[Translator]: In Q2, managed and franchise revenue increased 25.2% year-over-year to CNY 3.6 billion, and gross operating profit grew 18.5% year-over-year to CNY 2.2 billion.

Jin Hui: 在行业竞争环境趋于良性的背景之下，华住中国依托产品服务的迭代升级、精细化收益管理及综合营销能力的持续提升，二季度ADR同比增长2.6%，实现了连续四个季度ADR的正增长。ADR的增长也带动二季度RevPAR同比提升1.1%。

Jin Hui: [Foreign language]

Speaker #4: 在行业竞争环境区域良性的背景之下，华硕中国依托产品服务的迭代升级，精细化收益管理及综合营销能力的持续提升，二季度ADR同比增长2.6%，实现了连续四个季度ADR的正增长。ADR的增长也带动二季度RealPa同比提升1.1%。

Ivy Luo: With industry competition rationalizing, H World China achieved a 2.6% year-over-year increase in ADR in Q2, which was backed by our continuous product and service upgrades, revenue management, and integrated marketing capabilities. This marked our fourth consecutive quarter of positive ADR growth. The ADR improvement fueled a 1.1% year-over-year increase in RevPAR in the same period.

Speaker #3: With industry competition rationalizing, H World China achieved a 2.6% year-over-year increase in ADR in the second quarter, which was backed by our continuous product and service upgrades, revenue management, and integrated marketing capabilities.

Speaker #3: This marked our fourth consecutive quarter of positive ADR growth. The ADR improvement fueled a 1.1% year-over-year increase in RevPAR in the same period.

Jin Hui: 我们稳步推进高质量的网络扩张，持续完善城市布局。截至二季度末，华住中国在营酒店达到13417家。我们的酒店品牌和产品持续获得加盟方的青睐和高度认可，公司签约表现稳健。截止6月底，管道内酒店同比、环比均有提升，达3054家。我们的在营及管道内酒店已覆盖1468个城镇，继续向千城万店2.0的目标迈进。在布局低线下沉市场的同时，我们持续优化核心城市优质商圈的门店布局。我们相信，依托华住不断精进的产品实力与品牌势能，我们能够在中国核心存量市场取得进一步突破。

Jin Hui: [Foreign language]

Speaker #4: 我们稳步推进高质量的网络扩张，持续完善城市布局，截至二季度末，华硕中国再赢酒店达到13,417家。我们的酒店品牌和产品持续获得加盟商的青睐和高度认可，公司签约表现稳健，截至6月底，管道内酒店同比环比均有提升，达3,054家。我们的再赢及管道内酒店已覆盖1,468个城镇，继续向千城万店2.0的目标迈进。在布局低线下沉市场的同时，我们持续优化核心城市优质商圈的门店布局。我们相信依托华硕不断精进的产品实力与品牌势能，我们能够在中国核心存量市场取得进一步突破。

Ivy Luo: We continue to steadily expand our high quality hotel network and enhance our nationwide network presence. As of end June, we had 13,417 hotels in operation in China. Our hotel brands and products continue to gain strong favor and recognition from franchisees, and we maintain a solid signing momentum. As of end June, hotels in pipeline increased both year-over-year and quarter-over-quarter, reached 3,054. Our hotels in operation and in pipeline cover 1,468 cities in China, and we are matching towards our goal of 20,000 hotels in 2,000 cities. While expanding the lower tier market, we also continue optimizing hotel footprint in core cities and prime commercial districts. We believe that with H World Group's strength and product competencies and brand influence, we can achieve further breakthrough in China's core existing markets.

Speaker #3: We continue to steadily expand our high-quality hotel network and enhance our nationwide network presence. As of the end of June, we had 13,417 hotels in operation in China.

Speaker #3: Our hotel brands and products continue to gain strong favor and recognition from franchisees, and we maintain solid signing momentum. As of the end of June, hotels in the pipeline increased both year-over-year and quarter-over-quarter, reaching 3,054.

Speaker #3: Our hotels in operation and in the pipeline cover 1,468 cities in China. And we are marching towards our goal of 20,000 hotels in 2,000 cities.

Speaker #3: While expanding the lower-tier market, we also continue optimizing our hotel footprint in core cities and prime commercial districts. We believe that with H World's strength, product competencies, and brand influence, we can achieve further breakthroughs in China's core existing markets.

Jin Hui: 在品牌档次的布局上，集团聚焦国民经济型及中档酒店赛道，深耕大众消费市场，持续强化主力品牌核心竞争力。随着汉庭全季产品的迭代升级，我们很高兴看到新版本门店的RevPAR实现了显著提升，同时也收获了消费者与加盟商的广泛认可。伴随汉庭快捷新品陆续落地，集团也进一步夯实自身在经济型中档住宿市场的领先优势。近期新出炉的HOTELS 2025年全球单品牌酒店规模榜单印证了我们品牌战略的成效。

Jin Hui: [Foreign language]

Speaker #4: 在品牌档次的布局上，集团聚焦国民经济型及中档酒店赛道，深耕大众消费市场，持续强化主力品牌核心竞争力。随着汉庭全季产品的迭代升级，我们很高兴看到新版本门店的RealPa实现了显著提升，同时也收获了消费者与加盟商的广泛认可。伴随汉庭快捷新品陆续落地，集团也进一步夯实自身在经济型、中档住宿市场的领先优势。近期新出炉的Hotels 2025年全球单品牌酒店规模搒单印证了我们品牌战略的成效。

Operator: Please continue to stand by. Your conference will resume shortly.

Speaker #3: Please continue to stand by for your conference. We will resume shortly.

Jin Hui: OK。

Speaker #4: Great.

Speaker #5: 系统的线也没有对齐。

Ivy Luo: 我们这里也没有。

Ivy Luo: [Foreign language]

Operator: We have the sound back. Please resume.

Speaker #3: We have the signed documents back. Please resume.

Ivy Luo: OK, let's continue.

Speaker #5: Okay. Let's continue.

Jin Hui: 汉庭和全季成为中国酒店品牌首次拿下Hotels榜单的冠亚军。除此以外，中档主力酒店、橘子酒店排名攀升至全球第26位，成为集团品牌规模化扩张的又一亮眼的里程碑。但我们认为规模领跑只是阶段性成果，后续集团将继续坚持高质量发展，深耕产品打磨，持续迭代升级，以提高产品质量与服务，更好地满足消费者的多元化住宿需求。展望未来，由汉庭、全季、橘子组成的有限服务金三角品牌，将持续释放强劲的市场竞争力，成为集团落地千城万店2.0战略关键的驱动引擎。

Jin Hui: [Foreign language]

Speaker #4: Sorry. Okay. 所以汉庭和全季成为中国酒店品牌首次拿下Hotels搒单的冠亚军。除此以外，中档主力酒店橘子酒店排名攀升至全球第26位，成为集团品牌规模化扩张的6亿亮眼的里程碑。但我们认为规模领跑只是阶段性成果，后续集团将继续坚持高质量发展，深耕产品打磨，持续迭代升级，以提高产品质量与服务，更好地满足消费者的多元化住宿需求。展望未来，由汉庭全季橘子组成的有限服务金三角品牌，将持续释放强劲的市场竞争力，成为集团落地千城万店2.0战略关键的驱动引擎。

Ivy Luo: We focus on the economy and mid-scale segments, deeply cultivating the mass market and continuously strengthening the core competitiveness of our flagship brands. With the upgrades of HanTing and JI, we are pleased to see that the new version hotels delivered meaningful improvement in that part and gained broader recognition from guests and franchisees. With the rollout of HanTing, we are further solidifying our leading position in the economy and mid-scale lodging markets. In the recently released HOTELS 2025 global rankings for single branded room counts, JI Hotel leaps from the number four place globally to the top spot, with HanTing closely following in the second place. This marks the first time Chinese hotel brands have flanked the top two positions on this list and underscores the effectiveness of our brand strategy.

Speaker #3: We focus on the economy and mid-scale segments, deeply cultivating the mass market and continuously strengthening the core competitiveness of our flagship brands. With the upgrades of Han Ting and Ji, we are pleased to see that the new version hotels delivered meaningful improvement in RevPAR and gained broader recognition from guests and franchisees.

Speaker #3: With the rollout of Han Ting Ying, we are further solidifying our leading position in the economy and mid-scale lodging markets. In the recently released Hotels 2025 global rankings for single-branded room counts, Ji Hotel leaped from the number 4 spot globally to the top spot.

Speaker #3: With Han Ting closely following in second place. This marks the first time Chinese hotel brands have claimed the top two positions on this list and underscores the effectiveness of our brand strategy.

Ivy Luo: In addition, our core mid-scale brand, Orange Hotel, climbed to the 26th place globally, representing another notable milestone in our brand lab expansion. We view this scale leadership as a milestone to date, and we will continue to adhere to high quality development, focusing on product refinement and continuous iteration to improve product quality and services to better serve guests' diversified lodging demands. Looking ahead, our limited service Golden Triangle brands, namely HanTing, JI, and Orange, will continue to unleash strong market competitiveness and serve as a key growth engine for the group's 20,000 hotel in 2,000 cities strategies.

Speaker #3: In addition, our core mid-scale brand, Orange Hotel, climbed to 26th place globally, representing another notable milestone in our brand-led expansion. We view this scale leadership as a milestone to date, and we will continue to adhere to high-quality development, focusing on product refinement and continuous iteration to improve product quality and services to better serve guests’ diversified lodging demands.

Speaker #3: Looking ahead, our limited service Golden Triangle brands—namely Han Ting, Ji, and Orange—will continue to unleash strong market competitiveness and serve as a key growth engine for the group's 20,000 hotels in 2,000 cities strategy.

Speaker #4: 除了核心大众品牌的深耕和网络布局的完善，华硕中国中高端板块也在稳步发力。我们坚持做品牌策略，通过清晰的品牌定位与价值主张，稳步推进以成绩大观、水晶及美居四大品牌为核心的发展战略。截至二季度末，华硕中国中高端品牌再引起管道内酒店已达到1,738家，同比增长13.4%。

Jin Hui: 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稳步发力。我们坚持多品牌策略，通过清晰的品牌定位与价值主张，稳步推进以城际、大观、水晶及美居四大品牌为核心的发展战略。截至二季度末，华住中国中高端品牌在营及管道内酒店已达到1738家，同比增长13.4%。

Jin Hui: [Foreign language]

Ivy Luo: Besides deepening our core mass market brand and network expansion, our upper mid-scale segment has also been making steady progress. We stick to our multi-brand strategy with distinct brand positioning and value propositions, and push ahead with our development strategy centered on four flagship brands IntercityHotel, Wen Ji, Crystal Orange Hotel, and Mercure. As of end June, H World China's upper mid-scale brands and 1,738 hotels in operation and in pipeline, up 13.4% year-over-year.

Speaker #3: Besides deepening our core mass-market brand and network expansion, our upper mid-scale segment has also been making steady progress. We stick to our multi-brand strategy with distinct brand positioning and value propositions.

Speaker #3: And push ahead with our development strategy centered on four flagship brands: Intercity, Grand Ji, Crystal, and Mercure. As of end June, HW China's upper mid-scale brands and the 1,738 hotels in operation and in pipeline up 13.4% year over year.

Speaker #4: 营销方面，我们始终坚持以华硕会为核心。我们坚信会员体系及执行能力是支撑公司业务。长期可持续发展的重要核心竞争力。随着我们酒店网络覆盖更多的城市，华硕会的会员体量及会员经验都实现了稳步增长。除此以外，为升级会员权益、升级用户体验，集团持续精进会员精细化运营体系，深化多业态跨界联动，拓展会员积分多元消费场景。同时，加速海外市场布局，优化华硕会APP，承接入境游市场需求，赋能全球化会员服务。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化，增强会员粘性。

Jin Hui: 营销方面，我们始终坚持以华住会员为核心。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发展的重要核心竞争力。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营都实现了稳步增长。除此以外，为升级会员权益，升级用户体验，集团持续精进会员精细化运营体系，深化多业态跨界联动，拓展会员积分多元消费场景，同时加速海外市场布局，优化华住会APP，承接入境游市场需求，赋能全球化会员服务。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，来提升会员转化，增强会员粘性。

Jin Hui: [Foreign language]

Ivy Luo: On the marketing front, we have always centered our strategy on our H Rewards membership program. We firmly believe that our membership program and the direct sales capability are the core competitive advantages underpinning the group's long-term sustainable growth. As our hotel network expand to more cities, H Rewards membership base and room nights booked by members have both achieved steady growth. In addition, to upgrade membership benefit and enhance our guest experiences, we are refining our membership-centric operation, deepening cross-industry partnership, and expanding diversified loyalty points consumption scenarios for our members. At the same time, we are accelerating our H Rewards international presence, optimizing our H Rewards app to capture more inbound travel demand, and empower global membership services. Going forward, we will further strengthen brand building, broaden customer acquisition channels, and continuously optimizing membership benefits to enhance member conversion and strengthen member loyalty.

Speaker #3: On the marketing front, we have always centered our strategy on our H Rewards membership program. We firmly believe that our membership program and direct sales capability are the core competitive advantages underpinning the group's long-term sustainable growth.

Speaker #3: As our hotel network expands to more cities, the H Rewards membership base and room nights booked by members have both achieved steady growth. In addition, to upgrade membership benefits and enhance our guest experiences, we are refining our membership-centric operation, deepening cross-industry partnerships, and expanding diversified loyalty point consumption scenarios for our members.

Ivy Luo: At the same time, we are accelerating our H Rewards international presence, optimizing our H Rewards app to capture more inbound travel demand, and empower global membership services. Going forward, we will further strengthen brand building, broaden customer acquisition channels, and continuously optimizing membership benefits to enhance member conversion and strengthen member loyalty.

Speaker #3: At the same time, we are accelerating our H Reward international presence, optimizing our H Reward app to capture more inbound travel demand, and empowering global membership services.

Speaker #3: Going forward, we will further strengthen brand building, broaden customer acquisition channels, and continuously optimize membership benefits to enhance member conversion and strengthen member loyalty.

Jin Hui: 在深耕内部经营管理、推动集团业务稳健扩张之余，我们也始终主动践行企业社会责任。这边主要有三个方面想和大家分享。首先是带动属地就业，创造岗位。随着我们门店网络的不断扩张，持续吸纳新员工的加入，截至6月底，集团在岗员工总数已突破26万人。除此以外，我们也在不断完善内部人才培养机制，给员工规划清晰的晋升和成长路线。其次，我们坚持推进酒店绿色低碳运营，落地各类节能措施，我们也会把成熟的能耗管理方案给到加盟商，帮助门店省下水电能源开支，进而取得更好的经营回报。最后便是公益回馈方面。依托集团公益基金会，我们落地不少公益项目，通过教育帮扶、灾情支援等来回馈社会。未来我们也将会继续推进各项社会责任工作，兼顾业务成长与社会担当，担负起面向消费者、加盟商、员工和社会的企业使命。

Jin Hui: [Foreign language]

Speaker #4: 在深耕内部经营管理、推动集团业务稳健扩张之余，我们也始终主动践行企业社会责任。这边主要有三个方面想和大家分享。首先是带动属地就业、创造岗位。随着我们门店网络的不断扩张、持续吸纳新员工的加入，截至6月底，集团在岗员工总数已突破26万人。除此以外，我们也在不断完善内部人才培养机制，给员工规划清晰的晋升和成长路线。其次，我们坚持推进酒店绿色低碳运营，落地各类节能措施。我们也会把成熟的能耗管理方案给到加盟商，帮助门店省下水电能源开支，进而取得更好的经营回报。最后便是公益回馈方面，依托集团公益基金会，我们落地不少公益项目，通过教育帮扶、灾情支援等来回馈社会。未来我们也将会继续推进各项社会责任工作，兼顾业务成长与社会担当，担负起面向消费者、加盟商、员工和社会的企业使命。

Ivy Luo: In addition to focusing on internal operational management and driving steady business expansion across the group, we are also committed to proactively fulfilling our social responsibilities. I would like to share three key areas. Firstly, H World boosts local employment and creates job opportunities. The continuous expansion of our hotel network enables us to recruit more employees on an ongoing basis. As of end June, the total number of employees of the group exceeded 260,000. In addition, we continue to refine our internal talent development program, providing employees with clear career paths. Secondly, we pursue energy saving management of our hotels and have rolled out multiple initiatives. We share proven energy saving management solutions with our franchisees to help them cut water and electricity costs and secure better operating returns. Thirdly, our social welfare initiatives.

Speaker #3: In addition to focusing on internal operational management and driving steady business expansion across the group, we are also committed to proactively fulfilling our social responsibilities.

Speaker #3: I would like to share three key areas. Firstly, H World boosts local employment and creates job opportunities. The continuous expansion of our hotel network enables us to recruit more employees on an ongoing basis.

Speaker #3: As of the end of June, the total number of employees of the group exceeded 260,000. In addition, we continue to refine our internal talent development program, providing employees with clear career paths.

Speaker #3: Secondly, we pursue energy-saving management of our hotels and have rolled out multiple initiatives. We share proven energy-saving management solutions with our franchisees to help them cut water and electricity costs and secure better operating returns.

Speaker #3: Thirdly, on social welfare initiatives supported by the Group's charity foundation, we have launched a wide range of public welfare programs to give back to society through educational assistance, post-disaster support, and other initiatives.

Ivy Luo: Supported by the group's charity foundation, we have launched a wide range of public welfare programs to give back to the society through educational assistance, post-disaster support, and other initiatives. Going forward, H World will continue to push forward the social responsibility initiatives, balancing business growth with social commitment and upholding our corporate mission to guests, franchisees, employees, and the wider community.

Speaker #3: Going forward, H World will continue to advance social responsibility initiatives, balancing business growth with social commitment and upholding our corporate mission to guests, franchisees, employees, and the wider community.

Speaker #4: 接下来我们就来回顾一下华硕国际业务的表现。2026年二季度，我们部分地区的酒店受到中东冲突的影响，同时我们在东南亚发展新的国家开业的新的门店还处于爬坡期。这对我们华硕国际混合以后的RERPA造成了一定的影响。二季度，华硕国际RERPA同比下滑3.8%，其中ADR同比上涨0.9%，入驻率同比下滑3.5个百分点。尽管华硕国际业务整体承压，但我们欧洲业务的表现良好。欧洲板块的经营表现在平均房价、入驻率、双重改善的驱动下，二季度RERPA同比增长1.1%。未来我们将持续优化公司在欧洲的运营效率，同时稳步推进在亚太市场的战略布局。

Jin Hui: 接下来我们就来回顾一下华住国际业务的表现。2026年二季度，我们部分地区的酒店受到中东冲突的影响，同时我们在东南亚发展新的国家，开业的新的门店还处于爬坡期，这对我们华住国际混合以后的RevPAR造成了一定的影响。二季度华住国际RevPAR同比下滑3.8%，其中ADR同比上涨0.9%，入住率同比下滑3.5个百分点。尽管华住国际业务整体承压，但我们欧洲业务的表现良好。欧洲板块的经营表现在平均房价、入住率双重改善的驱动下，二季度RevPAR同比增长1.1%。未来我们将持续优化公司在欧洲的运营效率，同时稳步推进在亚太市场的战略布局。

Jin Hui: [Foreign language]

Ivy Luo: Next, let's go over our operational performance in the international market. In Q2, HWI's blended RevPAR was affected by the Middle East conflict, as well as our Southeastern Asia expansion, which were still in the ramp-up period. In Q2, HWI's RevPAR decreased 3.8% year over year, with ADR up 0.9% and occupancy rate down 3.5 percentage points. Nevertheless, our Europe business delivered a solid performance. The European segment's RevPAR grew 1.1% year over year in Q2, driven by improvements in both ADR and occupancy. Going forward, we will continue to optimize HWI's operational efficiency in Europe and push forward our strategic layout in the Asia Pacific market.

Speaker #3: Next, let's go over our operational performance in the international market. In the second quarter, HWI's splendid RevPAR was affected by the Middle East conflict, as well as our Southeast Asia expansion, which is still in the ramp-up period.

Speaker #3: In the second quarter, HWI's RERPA decreased 3.8% year over year, with ADR up 0.9% and the occupancy rate down 3.5 percentage points. Nevertheless, our bureau business delivered a solid performance.

Speaker #3: The European segment’s RevPAR grew 1.1% year over year in the second quarter, driven by improvements in both ADR and occupancy. Going forward, we will continue to optimize HWI’s operational efficiency in Europe and push forward our strategic layout in the Asia-Pacific market.

Speaker #4: 以上就是华硕2026年二季度业务情况的更新。下面有请集团CFO阿瑟于为大家分享集团二季度的财务情况。有请阿瑟。

Jin Hui: 以上就是华住2026年二季度业务情况的更新。下面有请集团CFO薛妤为大家分享集团二季度的财务情况，有请。

Jin Hui: [Foreign language]

Ivy Luo: This concludes the business update for Q2 2026. I will now hand over the call to our CFO, Mr. Arthur Yu, for financial performance for the quarter.

Speaker #3: This concludes the business update for the second quarter of 2026. I will now hand over the call to our CFO, Mr. Arthur Yu, for the financial performance for the quarter.

Arthur Yu: Thanks Yu Jing Hui. Good evening and good morning to everyone. Now let's walk through our Q2 financial highlights. In the second quarter, our group revenue grew 10.8% year over year to RMB 7.1 billion. This was primarily driven by our China business. In the quarter, our China revenue increased 14.9% year over year to RMB 5.9 billion, supported by a steady and high quality network expansion as well as continued RevPAR recovery. Our international business revenue decreasing 5.8% year over year to RMB 1.3 billion, which was due to the closure of Leedskalnin Hotel and therefore a decline in Leedskalnin revenue. We are happy to report that our group recorded another quarter of strong profit growth. Adjusted EBITDA increased 20% year over year to RMB 2.7 billion, with adjusted EBITDA margin expanding 3 percentage points year over year to 38.3%.

Speaker #1: Thank you, Jin Hui. Good evening and good morning to everyone. Now, let's walk through our Q2 financial highlights. In the second quarter, our group revenue grew 10.8% year over year to RMB 7.1 billion.

Speaker #1: This was primarily driven by our China business. In the quarter, our China revenue increased 14.9% year over year, to RMB 5.9 billion, supported by a steady and high-quality network expansion, as well as continued RevPAR recovery.

Speaker #1: Our international business revenue decreased 5.8% year over year, to RMB 1.3 billion, which was due to the closure of leased hotels and therefore a decline in leased revenue.

Speaker #1: We are happy to report that our group recorded another quarter of strong profit growth. Adjusted EBITDA increased 20% year over year, to RMB 2.7 billion.

Speaker #1: With adjusted EBITDA margin expanding 3 percentage points year over year, to 38.3%. The margin improvement was attributable to a growing profit contribution from our asset-light business, coupled with well-controlled G&A expenses.

Arthur Yu: The margin improvement was attributable to a growing profit contribution from our asset light business, coupled with well-controlled G&A expenses. In the second quarter, hotel operating costs increased 7.4% year over year, slower than our revenue growth as we became more asset light. SG&A expenses in the quarter rose 6.1% year over year, which was also slower than our revenue growth, reflecting our cost management capabilities. Adjusted net income grew 26.9% year over year to RMB 1.7 billion, with the adjusted net income margin improved 3 percentage points to 24%. Supported by ongoing high quality asset light network expansion and improved RevPAR performance, our M&F business revenue grew a solid 24.2% year over year to RMB 3.6 billion. M&F gross operating profit increased 18.5% year over year to RMB 2.2 billion.

Speaker #1: In the second quarter, hotel operating costs increased 7.4% year over year, slower than our revenue growth, as we became more asset-light. SG&A expenses in the quarter rose 6.1% year over year, which was also slower than our revenue growth, reflecting our cost management capabilities.

Speaker #1: Adjusted net income grew 26.9% year over year to RMB 1.7 billion, with the adjusted net income margin improving by 3 percentage points to 24%. Supported by ongoing high-quality, asset-light network expansion and improved RERPA performance, our M&F business revenue grew a solid 24.2% year over year to RMB 3.6 billion.

Speaker #1: M&F growth operating profit increased 18.5% year over year, to RMB 2.2 billion. Lastly, on shareholder returns, we are very pleased to announce that we completed our 2024 shareholder return one year ahead of our plan.

Arthur Yu: Lastly, on shareholder returns, we are very pleased to announce that we completed our 2024 shareholder return one year ahead of our plan. We are committed to returning to our shareholders, which will continue to be supported by our healthy operating cash flow and strong balance sheet. We therefore announce that the board has approved another three year shareholder return plan with an aggregated amount of $2.5 billion effective from today. As the first distribution under this new shareholder return plan, the board has also approved an ordinary cash dividend of approximately $275 million. With that, we conclude our financial review for the second quarter of 2026.

Speaker #1: We are committed to returning value to our shareholders, which will continue to be supported by our healthy operating cash flow and strong balance sheet. We therefore announce that the Board has approved another three-year shareholder return plan, with an aggregated amount of $2.5 billion.

Speaker #1: Effective from today, as the first distribution under this new shareholder return plan, the Board has also approved an ordinary cash dividend of approximately $275 million.

Speaker #1: With that, we conclude our financial review for the second quarter of 2026.

Speaker #3: And with that, we are ready to take your questions. Operator, please open the line for Q&A.

Ivy Luo: With that, we are ready to take your questions. Operator, please open the line for Q&A.

Speaker #2: Thank you. We will now begin the question and answer session. If you wish to ask a question, you will need to press star one-one on your telephone and wait for your name to be announced.

Operator: Thank you. We will now begin the question and answer session. If you wish to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. We will take our first question, and the question comes from Lydia Ling from Citi. Please go ahead. Your line is open.

Speaker #2: To withdraw your question, please press star 11 again. We will take our first question. The question comes from Lydia Ling from City. Please go ahead, your line is open.

Lydia Ling: Hey, thanks management. This is Lydia from Citi and congratulations on the solid results in Q2. My question is mainly on the RevPAR trend. Into the quarter, we observed a volatile travel demand affected by the extreme weather, especially during this peak summer season. Could you share the RevPAR performance during the summer holiday and also into H2 base goes relative higher. What management latest expectation on the Q3 and also full year RevPAR trend?

Lydia Ling: [Foreign language]

[Translator]: Hey, thanks management. This is Lydia from Citi and congratulations on the solid results in Q2. My question is mainly on the RevPAR trend. Into the quarter, we observed a volatile travel demand affected by the extreme weather, especially during this peak summer season. Could you share the RevPAR performance during the summer holiday and also into H2 base goes relative higher. What management latest expectation on the Q3 and also full year RevPAR trend?

Speaker #3: 谢谢管理层。感谢给我提问的机会。我是怀慈，Lydia。首先恭喜公司在二季度依旧取得了比较亮眼的业绩。我的问题主要是关于RERPA的。进入三季度以来，我们也看到极端天气带来了一些出行的不确定性，同时也正值暑期旺季。请问管理层能否分享一下目前所观察到的暑期整体RERPA表现？此外，下半年我们也进入了一个相对较高的基数阶段。请问管理层对三季度或全年RERPA的最新预期是怎样的？我来翻译一下： Thanks, management. This is Lydia from Citi, and congratulations on the solid results in the second quarter.

Speaker #3: My question is mainly on the RERPA trend. So, into the quarter, we observed a volatile travel demand affected by the extreme weather, especially during this peak summer season.

Speaker #3: Could you share the RevPAR performance during the summer holiday and also into the second half? Are base goals relatively higher? What is management's latest expectation on the third quarter and also the full-year RevPAR trend?

Speaker #3: 感谢。

Jin Hui: 好，谢谢提问。我是晶辉，我来回答这个问题。目前应该讲中国的旅游休闲需求还是处于一个持续增长。我们非常坚信的一点就是中国的消费者已经把旅游休闲作为他们的刚需，这个在疫情以后表现得非常的明确。第二方面，政府非常鼓励支持文旅出行。今年上半年推出的各地的春假，以及在八月初推行的公务员休假的这样一个制度。第三个，当然毫无疑问，我们在这一轮里面看到了大量新型的休闲旅游的客源和场景，家庭游、银发游、自驾游表现得也非常的强劲。当然入境游也带来了非常大的增量市场，尤其对一二线的核心城市。七月份的确受到了——

Jin Hui: [Foreign language]

Speaker #1: 好，谢谢提问。我是金辉，我来回答这个问题。目前应该讲，中国的旅游休闲这个需求还是处于一个持续增长。我们非常坚信的一点就是，中国的消费者已经把旅游休闲作为他们的刚需，这个在疫情以后表现得非常的明确。第二方面，政府非常鼓励支持文旅出行。今年上半年推出的各地的春假，以及在八月初推行的公务员休假的这样的一个制度。第三个当然毫无疑问，我们在这一轮里面看到了大量的新型的休闲旅游的客源和场景，家庭游、银发游、自驾游表现得也非常的强劲。当然，入境游也带来了非常大的增量市场，尤其对一二线的核心城市。七月份的确受到了，sorry。

Speaker #3: I will translate first. So thank you for your question. This is Jin Hui. I will answer this question. Currently, China's leisure travel demand is still steadily growing.

Ivy Luo: I will translate first. Thank you for your question. This is Jing Hui, I will answer this question. Currently China's leisure travel demand is still steadily growing. We firmly believe that in China, consumers have treated leisure travel as one of the necessities. This has been very clear after the COVID reopening. Secondly, the government is very supportive of the culture and tourism travel. In H1 this year, we do see multiple regional government introducing spring holidays. In early August, we also saw government encouraging public servants to take holidays. Certainly around this round of leisure travel trend, we do see new scenarios and new customers emerging. For example, family trips, travel by silver hairs, travel by self-driving, those both have been performing very strong. Of course, inbound travel has also brought us increasing demand, especially in those core cities in the Tier 1 and Tier 2 cities.

Speaker #3: We firmly believe that, in China, consumers have treated leisure travel as one of the necessities. This has been very clear after the COVID reopening.

Speaker #3: Secondly, the government is very supportive of the culture and the tourism travel. In the first half of this year, we do see multiple regional governments introducing spring holidays.

Speaker #3: And in early August, we also saw the government encouraging public servants to take holidays. And thirdly, around this round of leisure travel trends, we do see new scenarios and new customers emerging.

Speaker #3: For example, family trips, travel by silver hares, and travel by self-driving—all of these have been performing very strongly. Of course, inbound travel has also brought us increasing demand.

Speaker #3: Especially in those core cities, in the Tier One and Tier Two cities.

Jin Hui: 七月份受到某些地区的极端天气影响，的确对经营产生了很大的影响，导致部分市场的暑期上半段的业绩表现低于预期。当然，我认为也受到了部分春假的平移的影响。但八月份目前来看，整体趋势是回暖。考虑到整个外部环境的变化和不确定性，我们对整体的需求还是保持一个谨慎乐观的态度。所以对2026年全年，我们维持RevPAR未增的目标，目前不变。

Jin Hui: [Foreign language]

Speaker #1: 七月份受到某些地区的极端天气影响，的确对经营产生了很大的影响，应该导致部分市场的暑期上半段的业绩表现低于预期。当然，我认为也受到了部分春假的平移的影响，但八月份目前来看整体趋势是回暖的。考虑到整个外部的环境的变化和不确定性，我们对整体的需求还是保持一个谨慎乐观的态度。所以对2026年全年我们维持RERPA未增的目标，目前不变。

Speaker #3: So yes, as you mentioned, in July we did see several regions being actively affected by severe weather. It impacted operational results. In some markets, for the first half of the summer holiday, the performance was below expectation.

Ivy Luo: Yes, as you mentioned, in July, we do see several regions being negatively affected by those severe weather, and it impacted operational results. In some of the markets for H1 of the summer holiday, the performance was below expectation. On the other hand, I do think that this is also partially affected by the spring holiday. In August, so far, we do see the overall trend recovering. Considering all the uncertainties in the macro environment, we maintain a cautiously optimistic view for the overall demand. For the full year of 2026, we maintain our view for the overall RevPAR unchanged.

Speaker #3: Also, on the other hand, I do think that this is also partially affected by the spring holiday. In August, so far, we do see the overall trend recovering.

Speaker #3: Considering all the uncertainties in the macro environment, we maintain a cautiously optimistic view for overall demand. For the full year of 2026, we maintain our view for overall RERPA unchanged.

Jin Hui: OK，谢谢。

Jin Hui: OK，[Foreign language]。

Speaker #3: Thank you.

Ivy Luo: Thank you.

Speaker #2: Thank you. We will take our next question. Your next question comes from Danqi from Morgan Stanley. Please go ahead, your line is open.

Operator: We will take our next question. Your next question comes from Dan Ji from Morgan Stanley. Please go ahead. Your line is open.

Speaker #1: 各位管理层晚上好，我是大摩的 Dan。我有两个问题。第一个是围绕开店的，就是华筑中国上半年我们看到毛开店是1035家。那刚刚金总也提到了我们会坚定迈进全年这个2200到2300家的这样的一个目标，这个非常清楚。我的问题是想从季节性上看，去年的上半年的开店有接近1300家毛开店，占全年比较大的头。那在上下半年这种季节性开店最佳时间是不是有一些结构性的变化跟去年？我的第二个问题是关于经济型酒店的取证，就是刚才看到汉廷3.5或以上的版本更新已经达到了55%。那么今年年前公司推出了新的这个汉廷快捷，还有那个全新的汉廷4.0的一些进展。我们我想问一下这边有没有一些更新的进度，比如说像数量上或者是产品迭代后运营上的一些提升，好吗？那我翻译一下。 This is Dan from Morgan Stanley. I have two questions. My first question is on hotel opening. We saw gross opening in first half 2026 was 1035 hotels, although on track with Mr. Jin's reassurance on full year target of 2.2 to 2.3 thousand, it is 20% below first half last year.

Dan Ji: 各位管理层晚上好，我是大摩的Dan。我有两个问题，第一个是围绕开店的，就是华住中国上半年我们看到毛开店是1035家。刚刚金总也提到了，我们会坚定迈进全年2200-2300家的这样一个目标，这个非常清楚。我的问题是想从季节性上看，去年的上半年的开店有接近1300家毛开店，占全年比较大的头。那在上下半年这种季节性开店最佳时间是不是有一些结构性的变化跟去年？我的第二个问题是关于经济型酒店的矩阵。就是刚才看到汉庭3.5或以上的版本更新已经达到了55%。那么今年年前公司推出了新的汉庭快捷，还有全新的汉庭4.0的一些进展。我想问一下这边有没有一些更新的进度，比如说像数量上，或者是产品迭代后运营上的一些提升。那我翻译一下。This is Dan from Morgan Stanley. I have two questions. My first question is on hotel opening. We saw gross opening in first half 2026 was 1,035 hotels. Although on track with Mr. Jin's reassurance on full year target of 2,200 to 2,300, it is 20% below first half last year. Is there any structural change in the contribution of the two halves in the year, seasonality wise?

Dan Chi: [Foreign language]。

[Translator]: This is Dan from Morgan Stanley. I have two questions. My first question is on hotel opening. We saw gross opening in first half 2026 was 1,035 hotels. Although on track with Mr. Jin's reassurance on full year target of 2,200 to 2,300, it is 20% below first half last year. Is there any structural change in the contribution of the two halves in the year, seasonality wise? That was my first question. My second question is about economy segment upgrade. HanTing product, we see that is now more than 55% are version 3.5 and above. Can the management share some progress made on the latest edition of 4.0 and Hanting Inn, such as quantity or operating improvements? Thank you. [Foreign language].

Speaker #1: Is there any structural change in the contribution of the two halves in a year, seasonality-wise? That was my first question. My second question is about economy segment upgrade.

Dan Ji: That was my first question. My second question is about economy segment upgrade. HanTing product, we see that is now more than 55% are version 3.5 and above. Can the management share some progress made on the latest edition of 4.0 and Hanting Inn, such as quantity or operating improvements? Thank you. 谢谢.

Speaker #1: For the Han Ting product, we see that now more than 55% are Virgin 3.5 and above. Can the management share some progress made on the latest addition of 4.0?

Speaker #1: And Han Ting in such as quantity or operating improvements? Thank you. 谢谢。 OK，谢谢Dan的问题。我来回答一下。第一呢，我先回答一下关于整个二季度华筑在开业方面的一些情况。华筑二季度呢，新开门店是498家店，开店数量呢基本符合公司的规划和预期。二季度的签约表现也非常稳健，截止6月底呢，华筑管道内酒店同比和环比均有所提升。在这个过程当中呢，华筑我想非常强调一点，华筑不仅仅是要强调规模量的发展，更是希望实现实质的提升。我们对目前新签约和新开业门店的提出了更高的要求，而且这个高质量发展的战略呢，我们将会坚持在未来几年始终如一的贯彻。整个呢，我们应该讲，我将维持整个全年的开放店的指引呢，目前不变。确实上半年的开业数字可能会受到同期基数和一些供应链这个开业的一些阶段影响，我觉得整体还是在预测以内，是属于符合预期的一个状态。谢谢，这是第一个问题。

Jin Hui: OK，谢谢Dan的问题，我来回答一下。第一，我先回答一下关于整个二季度华住在开业方面的一些情况。华住二季度新开门店是498家店，开店数量基本符合公司的规划和预期。二季度的签约表现也非常稳健。截止6月底，华住管道内酒店同比和环比均有所提升。在这个过程当中，我想强调一点，华住不仅仅是要强调规模量的发展，更是希望实现质的提升。我们对目前新签约和新开业门店提出了更高的要求，而且这个高质量发展的战略，我们将坚持在未来几年始终如一地贯彻。我们应该讲，将维持整个全年的开店指引目前不变。确实上半年的开业数值可能会受到同期基数和一些供应链开业的一些阶段影响，我觉得整体还在预测以内，是属于符合预期的一个状态。谢谢，这是第一个问题。

Jin Hui: OK，[Foreign language]

Speaker #3: 谢谢Dan for your questions。所以 on the overall new hotel network expansion，in the second quarter we opened 498 hotels。The number of openings is actually in line with our plan and our expectation。And more importantly, if you look at the new signings, we also achieved solid new signings in the second quarter。As end of June, the number of hotels in our pipeline actually increased both quarter over quarter and year over year。And we always emphasize that for age folks, what we want to achieve is not just very simple quantity growth, but quality improvement。So we do have higher requirement for our new signings and the new openings。In the next few years, we will continue our sustainable high quality growth strategy unchanged。And for the four year of 2026, we maintain our four year opening guidance。Yes, in the first half, the opening number was impacted by the base as well as by the supply chain.

Ivy Luo: Thank you Dan for your question. On the overall new hotel network expansion, in Q2, we opened 498 hotels. The number of openings is actually in line with our plan and our expectation. More importantly, if you look at the new signings, we also achieved solid new signings in Q2. At the end of June, the number of hotels in our pipeline actually increased both quarter-over-quarter and year-over-year. We always emphasize that for H World, what we want to achieve is not just very simple quantity growth, but quality improvement. We do have higher requirements for our new signings and the new openings. In the next few years, we will continue our sustainable high-quality growth strategy unchanged. For the full year of 2026, we maintain our full year opening guidance.

Ivy Luo: Yes, in H1, the opening number was impacted by the base as well as by the supply chain. I do think it is just normal volatility, and there is no change in our overall opening plan. Thank you.

Speaker #3: But I do think it's just normal volatility, and there's no change in our overall opening plan. Thank you.

Speaker #1: 关于汉廷的第二问题我也想很乐意和大家做些分享。首先，汉廷4.0版本得到了市场和加盟商的一致认可，新版本的门店的RERPA同比显著高于老版本酒店。汉廷快捷推出以后，再银和管道内迅速超过了200家，发展速度好于我们的预期。开业门店的经营表现非常优异。这两点都证明了华筑的能力在经济型酒店推动高质量发展的这样的一个预期将会得到非常好的执行。后续我们将持续对汉廷的老旧门店版本进行升级迭代，进一步优化梳理汉廷品牌的取证。同时呢，也为下层市场和小型物业的门店翻盘呢提供足够的产品方案。总之，在经济型这个领域，华筑将会充分的发展，充分的实现市场的占有。

Jin Hui: 关于汉庭的第二个问题，我也很乐意和大家做些分享。首先，汉庭4.0版本得到了市场和加盟商的一致认可。新版本的门店的RevPAR同比显著高于老版本酒店。汉庭快捷推出以后，在营和管道内迅速超过了200家，发展速度好于我们的预期。开业门店的经营表现非常优异。这两点都证明了华住的能力，在经济型酒店推动高质量发展的这样的一个预期将会得到非常好的执行。后续我们将持续对汉庭的老旧门店版本进行升级迭代，进一步优化梳理汉庭品牌的矩阵。同时，也为下沉市场和小型物业的门店翻盘提供足够的产品方案。总之，在经济型这个领域，华住将会充分地发展，充分地实现市场的占领。

Jin Hui: [Foreign language]

Speaker #3: I have a second question. I'm very happy to share with you that our 汉廷 4.0 version has achieved both market and franchisee recognition. The new version of 汉廷—its RevPAR performance is meaningfully better than the older version. After we rolled out 汉廷, the number of 汉廷 hotels in operation and in the pipeline quickly exceeded 200. The overall development is actually better than our expectation. The operational performance of those 汉廷 hotels in operation is also very strong. I think both the two points that I mentioned above actually show you that H World has very strong capability in high-quality development in the economy hotel segment, and we are very strong in execution. Going forward, we will continue to upgrade 汉廷's older version of hotels to improve the overall 汉廷 hotel portfolio quality. Meanwhile, with the 汉廷 product, we also provide a product that's available for those smaller properties, for them to open under our 汉廷 brand. To conclude, I think under the overall economy segment, H World has very big growth potential to capture the market. Thank you.

Ivy Luo: On your second question, I am very happy to share with you that our HanTing 4.0 version has achieved both market and franchisees recognition. The new version of HanTing, the RevPAR performance is meaningfully better than the older version. After we rolled out HanTing Inn, the number of hotels of HanTing Inn in operation and in pipeline actually quickly exceeded 200. The overall development is actually better than our expectation. The operational performance of those HanTing Inn that is in operation is also very strong. I think both the two points that I mentioned above actually show you that H World Group has very strong capability in high quality development in the economy hotel segment, and we are very strong in executing. Going forward, we will continue to upgrade our HanTing's older version of hotel to go through the overall HanTing hotels portfolio to improve the overall hotel portfolio quality.

Ivy Luo: Going forward, we will continue to upgrade our HanTing's older version of hotel to go through the overall HanTing hotels portfolio to improve the overall hotel portfolio quality. Meanwhile, with the HanTing Inn product, we also provide the product that is available for those smaller properties for them to open under our HanTing brand. To conclude, I think under the overall economy segment, H World Group has very big growth potential to capture the market. Thank you.

Ivy Luo: Meanwhile, with the HanTing Inn product, we also provide the product that is available for those smaller properties for them to open under our HanTing brand. To conclude, I think under the overall economy segment, H World Group has very big growth potential to capture the market. Thank you.

Speaker #2: Thank you. We will take our next question. Your next question comes from the line of UL Lu from Citi CICS. Please go ahead, your line is open.

Operator: Thank you. We will take our next question.

Operator: Thank you. We will take our next question. The next question comes from the line of Yuewu Liu from Citi. Please go ahead. Your line is open.

Ivy Luo: The next question comes from the line of Yuewu Liu from Citi. Please go ahead. Your line is open.

Speaker #1: 哎，管理层好，我是中信证券的刘继伟。我请教一个关于中高端的问题啊，就是前面金辉总也提到了我们目前在营加上 pipeline 的门店数也是超过了1,700家。那目前公司对整个中高端酒店市场今年的供需情况有什么样的一些观察，包括是否会进一步去加快在中高端门店这边的布局？那同时的话呢，全季大我们是观察到在杭州、广州，其实都是有一些门店落地的。那关于这个现在全季大观的经营情况和发展规划，是不是有更多的细节可以做一些分享？呃，我翻一下我的问题啊。呃，M继伟 from CITIC. The company now has more than 1,700 upper mid-scale hotel properties. What's your view on this year's supply-demand balance in the upper mid-scale hotel segment? Will you speed up expansion? Also, G Grand has opened in Hangzhou, Guangzhou, and Wuhan. Could you give…

[Analyst] (CITIC Securities): 管理层好，我是中信证券的刘继伟，我请教一个关于中高端的问题。前面金辉总也提到了，我们目前的在营加上pipeline的门店数也超过了1700家。目前公司对整个中高端酒店市场今年的供需情况有什么样的一些观察？包括是否会进一步去加快在中高端门店这边的布局？同时的话，全季大观我们是观察到在杭州、广州、武汉其实都是有一些门店落地的。关于现在全季大观的经营情况和发展规划，是不是有更多的细节可以做一些分享？我翻译一下我的问题。I'm Jiawei from CITIC Securities.

Zhiwei Chen: [Foreign language]

[Analyst] (CITIC Securities): The company now has more than 1,700 upper mid-scale hotel properties. What is your view on this year's supply-demand balance in the upper mid-scale hotel segment? We will speed up expansion. Also, JI Grand has opened in Hangzhou, Guangzhou, and Wuhan. Could you give

[Translator]: The company now has more than 1,700 upper mid-scale hotel properties. What is your view on this year's supply-demand balance in the upper mid-scale hotel segment? We will speed up expansion. Also, JI Grand has opened in Hangzhou, Guangzhou, and Wuhan. Could you give

Ivy Luo: Operator? Hello, we still have the participant connected. I believe the signal was cut. Yuewu Liu, are you able to repeat your questions, please?

Speaker #3: Operator。

Speaker #2: Hello, we still have the participant connected. I believe the signal was cut. UL Lu, are you able to repeat your questions, please?

Speaker #1: 喂，可以听到我这边的声音吗？

[Analyst] (CITIC Securities): 喂，可以听到我这边的声音吗？

Zhiwei Chen: [Foreign language]

Speaker #4: 可以。

Jin Hui: 可以。

Jin Hui: [Foreign language]

Speaker #1: 哦，那我重新问一下我的问题啊。呃，我的问题主要是关于这个。

[Analyst] (CITIC Securities): 那我重新问一下我的问题。我的问题主要是关于

Zhiwei Chen: [Foreign language]

Jin Hui: 你用英文问就可以，中文都听到的。

Jin Hui: [Foreign language]

Speaker #4: 英文都听到了。

Speaker #1: 哦，好的。呃，呃，M继伟 from Citix。呃，the company has more has more than 1,700 upper mid-scale hotel properties with your view on this year supply demand balance in the upper mid-scale hotel segment。We will speed up expansion also G Grand has open in Hangzhou, Guangzhou and Wuhan。Could you give more color on its operating performance on the development roadmap?

[Analyst] (CITIC Securities): 好的. I am Jiawei from Citi. The company has more than 1,700 upper mid-scale hotel properties. What is your view on this year's supply-demand balance in the upper mid-scale hotel segment? We will speed up expansion. Also, JI Grand has opened in Hangzhou, Guangzhou, and Wuhan. Could you give more color on its operating performance on the development roadmap?

Zhiwei Chen: [Foreign language]. I am Jiawei from Citi. The company has more than 1,700 upper mid-scale hotel properties. What is your view on this year's supply-demand balance in the upper mid-scale hotel segment? We will speed up expansion. Also, JI Grand has opened in Hangzhou, Guangzhou, and Wuhan. Could you give more color on its operating performance on the development roadmap?

Speaker #4: OK。我来回答一下关于中高端的一些话题。的确，华筑把中高端作为集团未来非常重要的一一个核心的战略议题。我们也在持续的投入品牌建设和呃开发能力。呃，中高端目前在中国的市场这个发展还是不错的，因为一方面承接着消费升级的市场需求，一方面也实现了对传统高端酒店的替代关系。所以它同时存在两个历史的发展的机遇。因而华筑在中高端会持续保持我们在以城际大关、水晶、美居这四个主力品牌来快速发展和实现市场战略的提升。目前城际发展非常好，我们对城际非常的有信心，而且无论是经营业绩、发展规模都取得了非常好的势能。同时提到了关于大关品牌，很高兴我们已经在中国陆续签约和开一些门店，连管道的门店已经超过20家。目前我们依然保持大关在城市的地标，然后打磨大关的商业模式。呃，我们还处于一个谨慎的发展阶段啊，所以但是我们非常看好大关已经取得的客户口碑和产品模型。我们认为在未来会有在中国会有非常巨大的发展空间，所以对此我们充满信心。

Jin Hui: OK，我来回答一下关于中高端的一些话题。的确，华住把中高端作为集团未来非常重要的一个核心的战略议题，我们也在持续地投入品牌建设和开发能力。中高端目前在中国的市场发展还是不错的，因为一方面承接着消费升级的市场需求，一方面也实现了对传统高端酒店的替代关系，所以它同时存在两个历史的发展的机遇。因而华住在中高端会持续保持。我们在以全季、大观、水晶、美居这四个主力品牌来快速发展和实现市场占位的提升。目前全季发展非常好，我们对全季非常的有信心，而且无论是经营业绩、发展规模都取得了非常好的势能。同时提到了关于大观品牌。很高兴，我们已经在中国陆续签约和开一些门店，含管道的门店已经超过20家。目前我们依然保持大观在城市的地标，然后打磨大观的商业模式。我们还处于一个谨慎的发展阶段。但是我们非常看好大观已经取得的客户口碑和产品模型，我们认为在中国会有非常巨大的发展空间，所以对此我们充满信心。

Jin Hui: OK，[Foreign language]

Speaker #3: 嗯，呃，let me answer your questions related to the upper mid-scale segment。嗯，yes，嗯，upper mid-scale segment is one of age world core strategic area。嗯，and we continue to嗯 put effort into the brand building as well as the overall development in this segment。嗯，so the upper mid-scale market in China we do see good development opportunities。We actually see opportunities from two front。One is that the upper mid-scale segment actually嗯 have the opportunity from consumption upgrade。Well, at the same time it also taken some of the demand from those traditional upscale hotels。嗯，and for age world we will continue to嗯 insist on our multi-brand strategy。We will be building on our嗯 brand G嗯 on呃 Crystal on Intercity as well as Mercure。We will be using this four core flagship brand to achieve fast development and the market share gain in the upper mid-scale segment。嗯，currently for the in呃 Intercity hotel it has been growing very strongly and we are very confident on the future growth for this brand。And you mentioned a grand G。嗯，for the grand G we have been gradually呃 signing and opening some hotels。嗯， as of now the number of grand G in pipeline have already exceeded 20 hotels。嗯，at this moment we'll be really focusing on building grand G as those very prime locations。嗯，we are still refining the overall business model。So we'll be relatively cautious on like developing the quantity of it。But we are very positive on what grand G has already achieved嗯 in terms of the customer呃 reputation, the brand reputation and the product model。嗯，In the future we believe grand G have very big呃 growth potential and we are very嗯呃 optimistic on it。

Ivy Luo: Let me answer your questions related to the upper mid-scale segment. Yes, the upper mid-scale segment is one of H World's core strategic areas, and we continue to put effort into brand building as well as the overall development in this segment. For the upper mid-scale market in China, we do see good development opportunities. We actually see opportunities from two fronts. One is that the upper mid-scale segment actually has opportunities from consumption upgrade, while at the same time, it also takes some of the demand from those traditional upscale hotels. For H World, we will continue to insist on our multi-brand strategy. We will be building on our Grand JI, on Crystal Orange Hotel, on IntercityHotel, as well as Mercure. We will be using these four core flagship brands to achieve fast development and market share gain in the upper mid-scale segment.

Ivy Luo: Currently for the IntercityHotel, it has been growing very strongly, and we are very confident on the future growth for this brand. You mentioned Grand JI. For the Grand JI, we have been gradually signing and opening some hotels. As of now, the number of Grand JI in the pipeline has already exceeded 20 hotels. At this moment, we will be really focusing on building Grand JI at those very prime locations. We are still refining the overall business model, so we will be relatively cautious on developing the quantity of it. But we are very positive on what Grand JI has already achieved in terms of customer reputation, brand reputation, and the product model. In the future, we believe Grand JI has very big growth potential and we are very optimistic on it.

Speaker #4: 我们非常坚信大关应该能成为未来中国中高端酒店的全新标杆。对此我们正在努力。

Jin Hui: 我们非常坚信大观应该能成为未来中国中高端酒店的全新标杆，对此我们正在努力。

Jin Hui: [Foreign language]。

Speaker #3: Yeah, um, we are very confident that Grand G will become a flagship in China's upper mid-scale segment. And we are really working hard on that. Thank you.

Ivy Luo: Yeah, we are very confident that Grand JI will become a flagship in China's upper mid-scale segment, and we are really working hard on that. Thank you.

Speaker #1: 好的，谢谢。

Jin Hui: 好的，谢谢。

Zhiwei Chen: [Foreign language]

Speaker #2: Thank you. We will take our next question. Your next question comes from Ronald Leung from Bank of America. Please go ahead, your line is open.

Operator: Thank you. We will take our next question. Your next question comes from Ronald Leung from Bank of America. Please go ahead. Your line is open.

Ronald Leung: [Foreign language]. Let me translate my question into English. So, good evening, management. My question is related to the membership system. Could management comment on the latest breakdown in terms of the customer acquisition channel? Also, could management comment on the strategy in terms of optimizing the membership system? Thank you very much.

Speaker #1: 呃，喂，管理层，呃，晚上好。呃，我是呃美国银行的Ronald

Ronald Leung: 喂，管理层晚上好，我是美国银行的Ronald Leung，我有一个问题是关于会员系统的，还有获客渠道的一些变化。请问管理层可以说一说，会员的签约的增速最近是怎么样？还有就是目前的获客渠道有什么变化？还有就是管理层也说会员系统，可不可以再讲多一些具体的有什么诱惑或是调整的策略？好，谢谢。Let me translate my question into English. So, good evening, management. My question is related to the membership system.

Speaker #5: Leung啊。呃，我有一个问题是关于这个呃会员系统的，还有这个获客渠道的一些变化。呃，请问管理层可以说一说就是这个会员的签约的张数最近是怎么样？还有就是目前的获客渠道有什么的变化？呃，还有就是呃管理层也说这个会员系统可不可以再涨多一些呃具体的呃有什么优惠呃或是调整的策略？好，谢谢。呃，let me translate my呃 question into English。呃，so呃 good evening呃 management。呃，my question is related to the membership system。呃，could management呃 comment on the latest breakdown呃 in terms of the呃 customer acquisition channel？呃，also could呃 management呃 comment on the strategy呃 in terms of呃 optimizing the membership system？呃，thank you very much。

Ronald Leung: Could management comment on the latest breakdown in terms of the customer acquisition channel? Also, could management comment on the strategy in terms of optimizing the membership system? Thank you very much.

Jin Hui: 好的，我来回答关于会员的话题。会员战略是华住经营里面最核心的战略，也是华住的核心竞争力。华住会目前整个会员增长和预定指数，我们认为还是较为正常和预期的。当然，面对新的休闲市场、入境市场、下沉市场这些新市场，华住会员的确需要时间沉淀更多地面对这些新市场的客源。对应的我们OTA的占比也比较稳定，目前维持在20%到25%之间。我们认为面对一些新的市场，我们还是需要OTA的支持，尤其在入境和更多的下沉市场。对此，华住会未来的核心运营策略，我想总结为三个方面。第一方面是关于华住会员，由以华住会权益最优为核心的华住的会员运营策略。我们尤其在价格最优、早餐等场景权益的治理上，我们接下去会持续地做很多的工作，同时还会做会员的创新。近期我们推出的家庭卡得到了市场的非常好的反馈。所以第一点是关于会员运营方面，第二条。Sorry，先翻译一下。

Jin Hui: [Foreign language]

Speaker #4: 好的，我来回答关于会员的话题。会员战略是华筑经营里面最核心的战略之一，也是华筑的核心竞争力。呃，华筑会目前整个会员增长和预定指数我们认为还是较为正常和预期的。当然面对新的休闲市场、入境市场、下沉市场这些新市场，华筑会员的确需要时间沉淀更多的面对这些新市场的客源。对应的我们OTA的占比也比较稳定啊，目前维持在20%到25%之间。我们认为面对一些新的市场，我们还是需要OTA的支持，尤其在入境和更多的下沉市场。对此华筑会未来的核心运营策略，我想总结为三个方面。第一个方面是关于华筑会员有以华筑会权益最优的核心为为核心的华筑的会员运营策略。我们尤其在价格最优、早餐等场景权益的这个治理上，我们接下去会持续的做很多的工作。同时还会做会员的创新，近期我们推出的家庭卡得到了市场的非常好的反馈，所以第一点是关于会员运营方面。第二条，呃，sorry，先翻一下，哈哈。

Speaker #3: 嗯，let me answer the question related to our呃 members。呃，yes，呃，member is one of our core strategy呃 for age world operation and it's also one of our core呃 competitive advantages。呃，right now the overall member the increase of the the members as well as the member contribution in the booking is in line with our expectation。Of course as we are entering into more market, for example leisure market, the inbound market as well as those lower tier cities market，嗯，age world membership do need to need some time to grab those呃 traffic from those呃 new market for us。But呃，meanwhile the OTA contribution is actually quite stable at around 20 to 25 percent。We do believe that when we enter those new market we do need呃 OTA support，especially for inbound and lower tier cities。嗯，and in related to the overall strategy嗯 and the future呃 strategic operations for呃 age reward members，嗯，I will嗯 conclude it in three areas。Firstly is for the age reward members we do emphasize on the the呃 the key best benefit for our members。This one is one of the key strategy for us。This includes the best price，呃，includes呃 breakfast，嗯，and etcetera。And going forward we are also doing more work呃 on the on innovation。For example recently we actually launched a family card呃 under our age reward ward membership。And it actually received呃 quite good呃 feedback from the market。

Ivy Luo: Let me answer the question related to our members. Yes, member is one of our core strategy for H World operation, and it is also one of our core competitive advantages. Right now, the increase of the members as well as the member contribution in the booking is in line with our expectations. Of course, as we are entering into more markets, for example, leisure market, the inbound market, as well as those lower tier cities market, H World membership do need some time to grab those traffic from those new markets for us. Meanwhile, the OTA contribution is actually quite stable at around 20% to 25%. We do believe that when we enter those new markets, we do need OTA support, especially for inbound and lower tier cities.

Ivy Luo: Related to the overall strategy and the future strategic operations for H Rewards members, I will conclude it in three areas. Firstly, for the H Rewards members, we do emphasize on the best benefit for our members. This one is one of the key strategies for us. This includes the best price, includes breakfast, and etc. Going forward, we are also doing more work on innovation. For example, recently we actually launched a family card under our H Rewards membership, and it actually received quite good feedback from the market.

Speaker #4: 我想第二条呢就是展开全面的生态的跨界合作。大家有关注到我们去年和滴滴今年和各个航空公司，包括和新能源汽车的方面方面的生活方式的打通。在生态跨界方面也将会成为华筑会非常重要的一个运营策略。最后一条呃我们在二季度展开和雅高全面的会员合作来布局入境和海外会员的发展。呃，一方面承接更多入境需求，也要也让更多的中国旅客能这个在海外旅游能住上华筑和雅高的酒店，为他们。所以总结三点，呃，华筑会是首先聚焦在会员运营方面，其次是在整个生态跨界合作，最后是在整个华筑会的国际化发展。我们正在全面的努力。

Jin Hui: 我想第二条呢，就是展开全面的生态的跨界合作。大家有关注到我们去年和滴滴，今年和各个航空公司、包客和新能源汽车方方面面的生活方式的打通，在生态跨界方面也将会成为华住会非常重要的一个运营策略。

Jin Hui: [Foreign language]

Jin Hui: 最后一条，我们在二季度展开和雅高全面的会员合作，来布局入境和海外会员的发展。一方面承接更多入境需求，也让更多的中国旅客在海外旅游能住上华住和雅高的酒店。所以总结三点，华住会首先聚焦在会员运营方面；其次是在整个生态跨界合作；最后是在整个华住会的国际化发展，我们正在全面地运营。

Speaker #3: 嗯，so secondly is嗯 the cross industry partnership。嗯，you may have already noticed that last year we actually partnered with Didi and this year we're partnering with multiple airline companies嗯 as well as new energy vehicle companies to really to work with those multi multiple business呃 sectors。呃，this will the the cross industry partnership will also be one of our important呃 strategies。嗯，lastly is our呃 our international呃 overseas member development。In the second quarter we deepened our cooperation with Accor嗯 on the membership partnership。嗯，on the one hand one hand it's really to take more to capture more inbound demand。嗯，and also it's allowed Chinese consumers to be able to or Chinese travelers to be able to stay in Accor's hotel when they go abroad。So we're really working on that。So to to conclude嗯 on the three point，one is on the membership operation，secondly is on the呃 cross industry partnership，and thirdly is on the international development for age world。Thank you。

Ivy Luo: Secondly is on the cross-industry partnership. You may have already noted that last year we actually partnered with DiDi, and this year we are partnering with multiple airline companies, as well as new energy vehicle companies to really work with those multiple business sectors. The cross-industry partnership will also be one of our important strategies. Lastly is our international or overseas member development. In Q2, we deepened our cooperation with Accor on the membership partnership. On one hand, it is really to capture more inbound demand, and also it allows Chinese consumers or Chinese travelers to be able to stay in Accor's hotel when they go abroad. So we are really working on that. To conclude on the three points, one is on the membership operation. Secondly, it is on the cross-industry partnership. Thirdly, it is on the international development for H World. Thank you.

Operator: Thank you. We will take our next question. Your next question comes from Simon Cheung from Goldman Sachs. Please go ahead. Your line is open.

Speaker #1: Thank you. We will take our next question. Your next question comes from Simon Cheng from Goldman Sachs. Please go ahead, your line is open.

Speaker #2: Uh,谢谢呃金总跟于总的分享啊。我有呃一个小小的问题想问的是呃看到过去几个季度你的你们的EBITDA margin呃上涨的挺不错的，每一个季度都涨大概三到四个点左右。呃，想追问一下下半年以及全年你们有有没有什么指引，反过来说的话呢，呃国外呃尤其是DH这块可好像。季度这个EBITDA margin好好像有一点点的跌幅，所以还是追问想说看全年的话呃在国外你你们的看法又是怎么样的。谢谢。So呃my questions in relation to the EBITDA margin trend over the last couple quarters they have seen a nice three four percent呃 margin expansion in China but yet呃 in呃 overseas market呃 the margins呃 they see some呃 sluggish呃 or slippage。呃 wondering whether呃 management do have any guidance呃 going into second half and also for the full year。Thank you。I appreciate。

Simon Cheung: 谢谢金总跟于总的分享。我有一个小小的问题想问，看到过去几个季度你们的EBITDA margin上涨得挺不错的，每一个季度都涨大概三到四个点左右。想追问一下下半年以及全年你们有没有什么指引？反过来说的话呢，国外尤其是DH好像这个季度EBITDA margin好像有一点点的跌幅，所以还是追问，想说看全年的话，在国外你们的看法又是怎么样的？谢谢。My question is in relation to the EBITDA margin trend.

Simon Cheung: [Foreign language]. My question is in relation to the EBITDA margin trend. Over the last couple quarters, they have seen a nice 3% to 4% margin expansion in China, yet in overseas markets, the margins, they see some sluggish or slippage. Wondering whether management do have any guidance going in the H2 and also for the full year. Thank you. Appreciate.

Simon Cheung: Over the last couple quarters, they have seen a nice 3% to 4% margin expansion in China, yet in overseas markets, the margins, they see some sluggish or slippage. Wondering whether management do have any guidance going in the H2 and also for the full year. Thank you. Appreciate.

Arthur Yu: Simon，感谢你的问题，我是Arthur，我来回答这个问题。首先，第一点，我们公司是随着轻资产战略的这样一个推进，所以中长期来讲，我们还是预期公司的整体的EBITDA率会继续地、稳定地提升，这个是第一点。

Arthur Yu: Simon，[Foreign language]

Speaker #4: Simon感谢你的问题。我是Arthur呃我来回答这个问题。呃首先呢第一点呢我们公司是随着轻资产战略的这样一个推进，所以中长期来讲我们还是预期公司的整体的EBITDA率会继续的稳定的提升。这个是第一点。

Speaker #3: Thank you, Simon. This is Arthur. I will answer your questions. So, on the overall margin front, as the group continues to push forward our asset-light strategy, in the mid to long term, we do expect the company's adjusted EBITDA margin to continue to expand.

Ivy Luo: Thank you, Simon. This is Arthur. I will answer your question. On the overall margin front, as the group continue to push forward our asset light strategy, in the mid to long term, we do expect company's adjusted EBITDA margin to continue to expand.

Speaker #4: 嗯另外一方面呢我们在我们的SG&A的成本的管控上面呃做的也是比较好的，得益于公司有一套比较完整成熟的成本管控体系。

Arthur Yu: 另外一方面呢，我们在我们的SG&A的成本的管控上面做得也是比较好的，得益于公司有一套比较完整成熟的成本管控体系。

Arthur Yu: [Foreign language]

Speaker #3: On the SG&A front, we have been making really good delivery in the quarter. This is supported by our very mature and developed cost control system.

Ivy Luo: On the SG&A front, we have been making really good delivery in the quarter. This is supported by our very mature and development cost control system.

Speaker #4: 嗯那公司也非常清楚的认识到呃未来长期可持续的发展，华筑还是需要在呃做必要的战略的投入，例如说在人才的培养，科技AI的建设，华筑会的建设呃品牌的建设等等这些方面我们会做一些长期合理有效的投入。

Arthur Yu: 那公司也非常清楚地认识到，未来长期可持续的发展，华住还是需要在战略上做必要的投入，例如说在人才的培养、科技AI的建设、华住会的建设、品牌的建设等等这些方面，我们会做一些长期合理有效的投入。

Arthur Yu: [Foreign language]

Speaker #3: But at the same time, we are also very clear that in order for H World to achieve long-term sustainable growth, we have to make necessary strategic investments. For example, in talent development, in technology and AI, in our H World membership building, in brand building, etc. So, in those areas, we will be making reasonable, long-term, and effective investments.

Ivy Luo: At the same time, we are also very clear that in order for H World to achieve a long-term sustainable growth, we have to make necessary strategic investments. For example, in the talent development, in technology and AI, in our H Rewards membership building, in brand building, etc. So in those areas, we will be making reasonable and long-term and effective investments.

Speaker #4: 嗯所以下半年我们对利润和成本的展望还是会基本上保持稳定。

Arthur Yu: 所以下半年我们对利润和成本的展望还是会基本上保持稳定。

Arthur Yu: [Foreign language]

Speaker #3: So, for the outlook of our second half—um—profitability and cost—um—we will maintain very stable.

Ivy Luo: For the outlook of our H2 profitability and cost, we will maintain very stable.

Speaker #4: 好的第二个问题关于我们呃海外业务的这样的呃一个情况呃由于我们的海外业务其实受到了一定的中东战争的这样的一个影响，我们在中东和埃及有二十多家的这样的一个加盟店，那它对华筑国际的收入和利润的贡献其实是非常有限的。

Arthur Yu: 第二个问题关于我们海外业务的这样的一个情况。由于我们的海外业务其实受到了一定的中东战争的这样的一个影响，我们在中东和埃及有20多家的这样的一个加盟店，那它对华住国际的收入和利润的贡献其实是非常有限的。

Arthur Yu: [Foreign language]

Speaker #3: On our international business—yes, our international business was in some way impacted by the Middle East conflict. For our HWI in the Middle East and in Egypt, we have more than 20 hotels, but they are all monetized and franchise hotels. So they have limited impact actually on our HWI's revenue and profit.

Ivy Luo: On our international business, yes, our international business was in some way impacted by the Middle East conflict. For our HWI in the Middle East and in Egypt, we have more than 20 hotels, but they are all managed as franchise hotels. So they have limited impact, actually, on our HWI's revenue and profit.

Speaker #4: 嗯虽然中东的这个战争对我们的客流和成本均是有一定的影响，但是通过整个的我们的成本控制呃这个影响还是可以维持在可控的范围之内的。

Arthur Yu: 虽然中东的战争对我们的客流和成本均是有一定的影响，但是通过我们的成本控制，这个影响还是可以维持在可控的范围之内的。

Arthur Yu: [Foreign language]

Speaker #3: 嗯despite the impact呃 of Middle East conflict on the traffic and呃on the overall operational cost呃for age world we are actually doing more cost control for呃HWI。So by doing that overall impact of the Middle East is actually controllable controllable。

Ivy Luo: Despite the impact of Middle East conflict on the traffic and on the overall operational cost, for H World, we are actually doing more cost control for HWI. So by doing that, the overall impact of the Middle East is actually controllable.

Speaker #4: 从全年的角度来看我们维持华筑国际全年利润率为正这个目标是不变的。

Arthur Yu: 从全年的角度来看，我们维持华住国际全年利润率为正，这个目标是不变的。

Arthur Yu: [Foreign language]

Speaker #3: So for the full year, we maintain our goal of achieving positive profit for our HWI business.

Ivy Luo: For the full year, we maintain our goal of achieving a positive profit for our HWI business.

Speaker #4: 谢谢。

Arthur Yu: 谢谢。

Arthur Yu: [Foreign language]

Ivy Luo: Thank you.

Speaker #3: Thank you。

Operator: Thank you. This concludes today's question and answer session. I will now hand the call back to Ivy Lau for closing remarks.

Speaker #1: Thank you. This concludes today's question-and-answer session. I'll now hand the call back to Ivy Law for closing remarks.

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 quarter. Goodbye.

Speaker #3: Thank you, everyone, for taking the time to join us today. This will conclude today's call, and we look forward to seeing you in the upcoming quarter.

Speaker #3: Goodbye。

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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Q2 2026 H World Group Ltd Earnings Call

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