H World Group Ltd (NASDAQ:HTHT), a leading hospitality company, today disclosed the voting results of its 2024 Annual General Meeting (AGM) and announced amendments to its Share Incentive Plan.
The AGM, held on Thursday, June 27, 2024, culminated in the approval of all proposed resolutions. The specifics of the voting outcomes, however, were not detailed in the press release statement.
In addition to the AGM results, H World Group has amended and restated its 2023 Share Incentive Plan. While the exact changes to the plan were not elaborated upon, such modifications typically aim to align the interests of shareholders with those of employees and executives, incentivizing performance and potentially impacting the company's governance structure.
H World Group, formerly known as Huazhu Group (NASDAQ:HTHT) Ltd and China Lodging Group, Ltd, operates under the hotel and motel industry classification. The company, which is incorporated in the Cayman Islands and headquartered in Shanghai, China, has been publicly traded under the ticker HTHT on the NASDAQ stock exchange.
The information reported is based on a press release statement and is part of a current report filed with the U.S. Securities and Exchange Commission on Form 6-K.
In other recent news, H World Group Ltd. has demonstrated 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 (YoY) to RMB 216, and it expanded its hotel portfolio by opening 569 new hotels while closing 148. Financially, 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.
On the analyst front, Citi maintained a Buy rating and a $60.00 price target 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. The revision follows H World Group's first-quarter results, which surpassed expectations primarily due to stronger performance in leased and owned hotels' RevPAR and an increased franchise and management revenue take rate.
In other company news, H World is focusing on service excellence and customer satisfaction to enhance its leading position. The company's recent share price weakness, attributed to short-term fluctuations in RevPAR, was deemed excessive by Citi's analyst. The current share price is seen as an attractive entry point for investors, given the company's ongoing expansion and the introduction of the upgraded Ji Hotel service.
InvestingPro Insights
As H World Group Ltd (NASDAQ:HTHT) continues to make strategic moves with the amendment of its Share Incentive Plan, it's important for investors to consider the company's financial metrics and market performance. According to InvestingPro data, H World Group has a robust market capitalization of $10.56 billion and is trading at a Price/Earnings (P/E) ratio of 21.82, which adjusts to 20.98 based on the last twelve months as of Q1 2024. The company's commitment to shareholder value is reflected in its aggressive share buyback program and high shareholder yield, two notable InvestingPro Tips. Additionally, the company has experienced a significant revenue growth of 44.82% over the last twelve months as of Q1 2024, showcasing its strong performance in the Hotels, Restaurants & Leisure industry.
For investors looking to delve deeper into H World Group's prospects, InvestingPro offers additional insights. There are 9 more InvestingPro Tips available, which can be found at: https://www.investing.com/pro/HTHT. These tips provide a comprehensive look at the company's financial health and market position. For those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off, ensuring access to valuable investment information that could shape your investment strategy.
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