SHANGHAI, Tuesday – H World Group Ltd (formerly known as Huazhu Group (NASDAQ:HTHT) Ltd and China Lodging Group, Ltd), a prominent player in the hotels and motels industry, has declared a new shareholder return plan today, as per its latest filing with the Securities and Exchange Commission (SEC).
The Shanghai-based company, listed under the Standard Industrial Classification (SIC) code 7011 for Hotels & Motels, has outlined its intentions to reward its shareholders. This decision was documented in Form 6-K, a report of foreign private issuers under Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934, which was filed in July 2024.
The details of the shareholder return plan were included in Exhibit 99.1 of the SEC filing. However, the specifics of the plan, such as the amount, timing, and method of returns to shareholders, were not disclosed in the summary provided.
Qi Ji, the Executive Chairman of the Board of Directors, signed off on the filing, underscoring the company’s commitment to its shareholders. This move is expected to be well-received by investors seeking value from their investments in H World Group.
The information in this article is based on the press release statement and the SEC filing made by H World Group Ltd on July 23, 2024.
In other recent news, H World Group Ltd has reported robust growth in the first quarter of 2024, with a notable increase in revenue and net income. The company's blended RevPAR (Revenue Per Available Room) grew by 3.1% year-over-year to RMB 216, and it expanded its hotel portfolio by opening 569 new hotels while closing 148. H World Group's hotel turnover surged by 21% YoY to RMB 19.7 billion, with total revenue climbing 18% to RMB 5.3 billion.
The company also disclosed the voting results of its 2024 Annual General Meeting (AGM) and announced amendments to its Share Incentive Plan. The specifics of the voting outcomes were not detailed, and the exact changes to the incentive plan were not elaborated upon.
On the analyst front, Citi maintained a Buy rating for H World, citing the potential for higher-than-expected store openings and market share gains. However, Morgan Stanley (NYSE:MS) adjusted its financial outlook for the company, reducing the stock's price target to $56 from $60, while reaffirming an Overweight rating.
These are the recent developments for H World Group Ltd.
InvestingPro Insights
In light of H World Group's announcement of a new shareholder return plan, it's worth noting that management has been actively buying back shares, signaling confidence in the company's future prospects. This aligns with the company’s high shareholder yield, which is a positive indicator for investors looking for returns. Additionally, H World Group has been recognized as a prominent player in the Hotels, Restaurants & Leisure industry, further establishing its market presence.
On the financial front, the company's market capitalization stands at $9.74 billion, with an adjusted P/E ratio of 19.41 as of Q1 2024. The revenue growth has been impressive, with a 44.82% increase over the last twelve months leading up to Q1 2024. Despite recent price declines, with the stock trading near its 52-week low and experiencing a significant drop over the last three months, analysts predict profitability for the year. This could present a buying opportunity for long-term investors.
For those interested in further analysis and additional InvestingPro Tips on H World Group, including a detailed breakdown of financial metrics and analyst predictions, visit https://www.investing.com/pro/HTHT. There are 11 additional InvestingPro Tips available, offering a deeper dive into the company's financial health and market position. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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