Thank you, operator. Good evening and good morning, everyone.

Thanks for joining us today. Welcome to H World Group 2026 second quarter and first half 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 statement, 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 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.

各位投资人、分析师，大家好。感谢大家参加华住集团2026年第二季度业绩电话会。

Dear investors and analysts, good day. Thanks for joining us today.

Welcome to H World Group second quarter 2026 earnings conference call.

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。

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.

As visa-free policy for multiple countries continued to take effect, inbound tourism gained strong momentum, bringing new growth opportunity to China's lodging industry. On the consumption structural front, the growth of total domestic travel spending moderated, up 2% year-over-year to RMB3.2 trillion in the first half.

This reflects new consumption characteristics among travelers, which are more frequent trips with more prudent spending decisions.

近期，文旅部印发《旅游强国建设“十五五”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1500亿美元。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。未来华住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。

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 RMB7.7 trillion, and inbound tourism arrivals reaching 190 million with total spending exceeding US$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.

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定位，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。在营房量同比增长12.7%的驱动下，集团酒店GMV同比增长13.2%至305亿元。华住会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。

Facing the current industry opportunities and challenges, H World 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 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 RMB30.5 billion. Room nights booked by members also achieved steady growth.

More importantly, the group asset-light Manachised and franchised business delivered robust growth across scale, revenue, and profit. In the second quarter, Manachised and franchise revenue increased 25.2% year-over-year to RMB3.6 billion, and gross operating profit grew 18.5% year-over-year to RMB2.2 billion.

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等的持续提升，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%。

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. This marked our fourth consecutive quarters of positive ADR growth.

The ADR improvement fueled a 1.1% year-over-year increase in RevPAR in the same period.

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。我们的在营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。我们相信依托华住不断精进的产品实力与品牌势能，我们能够在中国的核心存量市场取得进一步突破。

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 the 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 marching towards our goal of 20,000 hotels in 2,000 cities. While expanding in lower-tier market, we also continue optimizing hotel footprint in core cities and prime commercial districts.

We believe that with H World's strength and product competencies and brand influence, we can achieve further breakthrough in China's core existing markets.

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。

All

right. [unclear]

Let's continue.

All right. OK，所以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，中档主力酒店桔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、桔子组成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。

We focus on the economy and midscale 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 RevPAR and gained broader recognitions from guests and franchisees.

With the rollout of HanTing Express, we are further solidifying our leading position in the economy and midscale lodging markets. In the recently released HOTELS 2025 global rankings for single brand room counts, JI Hotel leaped 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 claimed the top two positions on this list and underscores the effectiveness of our brand strategy. In addition, our core midscale 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. 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 hotels in 2,000 cities strategy.

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。我们坚持做品牌策略，通过清晰的品牌定位与价值主张，稳步推进以城际、花间堂、美仑、漫心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1,738家，同比增长13.4%。

Besides deepening our core mass-market brand and network expansion, our upper midscale 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: Intercity, Grand JI, Crystal, and Mercure.

As of end June, H World China's upper midscale brands had 1,738 hotels in operation and in pipeline, up 13.4% year-over-year.

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间夜都实现了稳步增长。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，增强会员黏性。

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.

As our hotel network expanded to more cities, H Rewards membership base and the 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.

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、员工和社会的社会使命。

In addition to focusing on our 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 return.

Thirdly, our social welfare initiatives: 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.

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设的新门店还处于爬坡期，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。

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

In the second quarter, 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 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.

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 Arthur

Yu为大家分享集团二季度的财务情况。有请Arthur。 That concludes the business update for the second quarter of 2026.

I will now hand over the call to our CFO, Mr. Arthur Yu, for financial performance for the quarter.

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 RMB7.1 billion.

This was primarily driven by our China business. In the quarter, our China revenue increased 14.9% year-over-year to RMB5.9 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 RMB1.3 billion, which was due to the closure of leased hotel and therefore a decline in leased revenue. We are happy to report that our group recorded another quarter of strong profit growth.

Adjusted EBITDA increased 20% year-over-year to RMB2.7 billion, 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.

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 RMB1.7 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 25.2% year-over-year to RMB3.6 billion.

M&F gross operating profit increased 18.5% year-over-year to RMB2.2 billion. Lastly, on shareholder returns, we are very pleased to announce that we completed our 2024 shareholder return one year ahead of our plan.

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 US$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 US$275 million. With that, we conclude our financial review for the second quarter of 2026.

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

哎，管理层好，那感谢给我提问的机会，我是花旗的Lydia。那也是首先恭喜公司二季度依旧取得了比较亮丽的一个业绩。那我的问题呢主要是关于这个RevPAR的。那进入三季度以来，我们也看到极端的天气带来出行的一些不确定性，也正值暑期的一个旺季。那管理层能否分享一下目前所观察到的暑期整体的一个RevPAR表现吗？那么下半年也进入了一个相对高的一个基数，那管理层对于三季度或者是全年的一个RevPAR的最新预期是怎样子的？那我翻译一下。Thanks, management. This is Lydia from Citi, and congratulations on the solid results in the second quarter.

My question is mainly on the RevPAR trend. Into third quarter, we observed the volatile travel demand affected by the extreme weather, especially during this peak summer season.

Could you share the RevPAR performance during the summer holiday? Also, into second half, the base goes relatively higher.

What's management's latest expectation on the third quarter and also full year RevPAR trend? 感谢。

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8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。7月份的确受到了，sorry——

I will translate first. Thank you for your question.

This is Jin Hui. I will answer this question.

Currently, China's leisure travel demand is still steadily growing. We firmly believe that in China, consumer has treat 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 the tourism travel.

In the first half this year, we do see multiple regional government introducing spring holiday, and in early August, we also saw government encouraging public servants to take holidays. Thirdly, 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.

7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，因而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8月份目前来看，整体趋势是已回暖的。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RevPAR微增的目标目前不变。

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 market for the first half of this summer holiday, the performance was below expectation.

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.

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.

OK，谢谢。 Thank you.

谢谢。

Thank you.

各位管理层晚上好，我是大摩的Dan。我有两个问题啊，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1,035家，那刚刚金总也提到了我们会坚定迈进全年这个2,200到2,300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1,300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的最佳时点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的，就是刚才看到汉庭3.5或以上的版本跟进已经达到了55%，那么今年年前公司推出了新的这个汉庭快捷，还有那个全新的汉庭4.0的一些进展，我想问一下这边有没有一些更新的进度啊，比如说像数量上啊，或者是产品迭代后运营上的一些提升？好吧，那我翻译一下。This is Dan from Morgan Stanley. I have two questions.

My first question is on hotel openings. We saw gross opening in first half '26 was 1,035 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.

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 upgrades, HanTing product. We see that is now more than 55% version 3.5 and above.

Can the management share some progress made on the latest edition of 4.0 and HanTing Express, such as quantity or operating improvements? Thank you.

谢谢。 OK，谢谢Dan的问题啊，我来回答一下。第一呢，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，开店数量的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，截至6月底呢，华住管道内酒店同比和环比均有所提升。在这个过程当中呢，我想非常强调一点，华住不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呢，我们将会坚持在未来几年始终如一地贯彻。整个呢，我们应该讲，我们将维持整个全年的开关店的指引目前不变。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，是属于符合预期的表现。谢谢，这是第一个问题。

Thank you, Dan, for your questions. On the overall new hotel network expansion, in the second quarter, we opened 498 hotels.

The number of opening 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 the second quarter.

As 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 requirement for our new signings and 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. Yes, in the first half, the opening number was impacted by the base as well as by the supply chain.

I do think it's a just normal volatility, and there's no change in our overall opening plan. Thank you.

关于汉庭的第二个问题，我也想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。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。这两点都证明了华族的能力在经营酒店推动高质量发展的这样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。同时呢，也为下沉市场和小型物业的门店翻牌提供足够的产品方案。总是在经济型这个领域，华住将会充分的发展，充分的实现市场的占有。

On your second question, I'm very happy to share with you that our HanTing 4.0 version have achieved both market and franchisee recognition. The new version of HanTing, the RevPAR performance is meaningfully better than the older version.

After we rolled out HanTing Express, the number of hotels of HanTing Express in operation and in pipeline actually quickly exceeded 200. The overall development is actually better than our expectation.

The operational performance of those HanTing Express that's in operation is also very strong. I think both the two points that I mentioned above actually shows you that H World have very strong capability in high-quality development in the economy hotel segment, and we're very strong in executing.

Going forward, we will continue to upgrade our HanTing's older version of hotel, to go through the overall HanTing hotel portfolio, to improve the overall hotel portfolio quality. Meanwhile, with the HanTing Express product, we also provide the product that's available for those smaller properties for them to open under our HanTing brand.

To conclude, I think under the overall economy segment, H World have very big growth potential to capture the market. Thank you.

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。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？同时的话呢，全季大观我们是观察到在这个杭州、广州、武汉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这个细节可以做一些分享？我翻译一下我的问题啊。Jiwei from CITICS. The company now has more than 1,700 upper midscale hotel properties.

What's your view on this year's supply-demand balance in the upper midscale hotel segment? Will you speed up expansion?

Also, JI Grand has opened in Hangzhou, Guangzhou, and Wuhan. Could you give—

Operator?

啊，好的。Jiwei from CITICS. The company has more than 1,700 upper midscale hotel properties.

What's your view on this year's supply-demand balance in the upper midscale hotel segment? Will you speed up expansion?

Also, JI Grand has opened in Hangzhou, Guangzhou, and Wuhan. Could you give more color on its operating performance and the development roadmap?

OK，我来回答一下关于中高端的这些话题。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。因而华住在中高端会持续保持我们在以城际、大观、水晶、美居这四个主力品牌来快速发展和实现市场占有率的提升。目前城际发展非常的好，我们对城际非常的有信心，而且无论是在经营业绩、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，很高兴我们已经在在中国陆续签约和开业一些门店，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。

Let me answer your questions related to the upper midscale segment. Yes, upper midscale segment is one of H World's core strategic area, and we continue to put effort into the brand building as well as the overall development in this segment.

For the upper midscale market in China, we do see good development opportunities. We actually see opportunities from two front.

One is that upper midscale segment actually have opportunities from consumption upgrades, while at the same time, it also take in some of the demand from those traditional upscale hotels. For H World, we will continue to insist on our multi-brand strategy.

We'll be building on our Grand JI, on Crystal, on Intercity, as well as Mercure. We'll be using this four core flagship brand to achieve fast development and the market share gain in the upper midscale segment.

Currently, for the Intercity hotel, 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 of the hotels. As of now, the number of Grand JI in pipeline have already exceeded 20 hotels.

At this moment, we'll be really focusing on building Grand JI as those very prime locations. We are still refining the overall business model, we'll be relatively cautious on developing the quantity of it.

We're very positive on what Grand JI has already achieved in terms of the customer reputation, the brand reputation, and the product model. In the future, we believe Grand JI have very big growth potential, and we are very optimistic on it.

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。

We're

very confident that Grand JI will become a flagship in China's upper midscale segment, and we're really working hard on that. Thank you.

好的，谢谢。

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这个会员系统的，还有这个获客渠道的一些变化。请问管理层可以说一说或者是这个会员的间夜的增幅最近是怎么样？还有就是目前的获客渠道有什么的变化？还有就是管理层也说这个会员系统可以再讲多一些具体的有什么优化或是调整的策略？好，谢谢。Let me translate my question into English. 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.

好的，我来回答关于会员的话题。会员战略是华住经营理念中最核心的战略之一，也是华住的核心竞争力。华住会目前整个会员增长和预订间夜数，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，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的核心为核心的华住的会员运营策略，我们尤其在价格最优、早餐等场景权益的这个治理上，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，请翻译一下。

Let me answer the question related to our members. Yes, member is one of our core strategy for H World's operation, and it's 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 expectation. Of course, as we are entering to more market, for example, leisure market, inbound market, as well as those lower-tier cities market, H World membership do need some time to grab those traffic from those new market for us.

Meanwhile, the OTA contribution is actually quite stable at around 20% to 25%. We do believe that when we enter those new market, we do need OTA support, especially for inbound and lower-tier cities.

Related to the overall strategy and the future strategic operations for H Rewards members, I will conclude it in three areas. Firstly, it's for the H Rewards members, we do emphasize on the best benefit for our members.

This one is one of the key strategy 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 a quite good feedback from the market.

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。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，也望也让更多的中国旅客能在在海外旅游能住上华住和雅高的酒店为他们服务。所以总结三点：华住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，最后是在整个华住会的国际化发展，我们正在全面地努力。 Secondly is on the cross-industry partnership.

You may have already noticed that last year, we actually partner with Didi, and this year, we're 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 strategy.

Lastly, is on our international or overseas member development. In the second quarter, we deepened our cooperation with Accor on the membership partnership.

On the one hand, it's really to capture more inbound demand, and also it's allow Chinese travelers to be able to stay in Accor's hotel when they go abroad. We're really working on that.

To conclude on the three points: one is on the membership operation, secondly, it's on the cross-industry partnership, and thirdly, it's on the international development for H Rewards. Thank you.

谢谢金总跟于总的分享。我有一个小小的问题想问的是，看到过去几个季度你的你们的EBITDA margin上涨的挺不错的，每一个季度都长大概三到四个点左右。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，国外尤其是DH这块好像几个季度这个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你们的看法又是怎么样的？谢谢。So my question is in relation to the EBITDA margin trend. Over the last couple quarters, they have seen a nice 3%-4% margin expansion in China, but yet in overseas market, the margins, they see some sluggish or slippage.

Wondering whether management do have any guidance going into second half and also for the full year. Thank you.

Appreciate. Simon，感谢你的问题。我是Arthur，我来回答这个问题。首先呢，第一点呢，我们公司是随着轻资产战略的这样一个个推进，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。

Thank you, Simon. This is Arthur.

I will answer your questions. 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.

另外一方面呢，我们在我们的SG&A的成本的管控上面，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。

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.

但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。

At the same time, we're also very clear that in order for H World to achieve a long-term sustainable growth, we have to make necessary strategic investment. For example, in the talent development, in technology and AI, in our H Rewards membership building, in brand building, etc.

In those areas, we'll be making reasonable and long-term and effective investments. 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。

For the outlook of our second half profitability and cost, we will maintain very stable.

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多家这样的加盟店，那它对华住国际的收入和利润的贡献其实是非常有限的。

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 Manachised and franchise hotels.

They have limited impact actually on our HWI's revenue and profit. 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，这个影响还是可以维持在可控的范围之内的。

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, by doing that, the overall impact of the Middle East is actually controllable. 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。

For the full year, we maintain our goal of achieving a positive profit for our HWI business. 谢谢。

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.