Good day, and thank you for standing by. Welcome to the H World Q4 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message to advise that 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 will now like to hand the conference over to your speaker today, Jason Chen, Investor Relations Director. Please go ahead. Thank you. Good morning and good evening, everyone. Thanks for joining us today. Welcome to H World Group 2022 Q4 and full year earnings conference call. Joining us today is our chairman, Mr. Ji Qi, our CEO, Mr. Jin Hui, our CFO, Ms. He Jihong, our president, Ms. Liu Xinxin. Following their prepared remarks, management will be available to answer your questions. Before we continue, please note that the discussion today will include forward-looking statements made under the safe harbor provision of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC. H World Group does not undertake any obligations to update any forward-looking statements except as required under applicable laws. On the call today, we will also mention adjusted financial measures during the discussion of our performance. Reconciliation of those measures to comparable GAAP information can be found in our earnings release that was distributed yesterday. As a reminder, this conference call is being recorded. The webcast of this conference call as well as supplementary slides presentation is available at ir.hworld.com. With that, now I will turn the call over to our Chairman, Mr. Ji Qi. Mr. Ji, please. Good morning and good evening, everyone. Thank you for joining our call today. 2022 has been a very challenging year for our business in China. With the strict COVID policies in place for quite a long period of time across country, our business has been seriously impacted as many people expected. However, we have shown strong resilience throughout this difficult time and continued to expand new hotel network. I would like to use this opportunity to extend our sincere appreciation to our customers, franchisees, employees, and business partners for their support to go through this tough period together. No matter how difficult the business environment was, we did not stop developing our company further. Last year, we transformed our Chinese operations through organizational restructuring and established a firm ground in key regional markets. With our six fully-equipped regional companies in China, we are now well prepared for penetration in more regional markets. With China lifting the COVID restrictions and the few folks economic development, we are embracing a strong recovery in the hotel market. We believe we are well-positioned to capture the growth opportunity. This year, we will focus on three key areas. First, we will continue the high-quality expansion of our hotel network. This will be largely driven by limited service hotels, especially in low-tier city and less penetrated areas. Second, we will further develop and establish firm ground in mid-scale and upper mid-scale through multiple brand strategy. Last but not least, we'll continue to strengthen our organizational and operational capabilities to achieve high operational efficiency and provide better products and services to our customers as well as franchisees. In our international business, we are very glad to report that DH achieved the improvements in many operational areas over the last year. Full year adjusted EBITDA before impairment turned positive for the first time since our acquisition. In addition, we have achieved significant breakthrough in loyalty program, direct sales, channel development, and the digitalization of operational process. In 2023, we will focus on future margin improvement, digitalization, growth of direct sales, and expansion of hotel network. This world is full of uncertainties as we cope with consequences of international monetary policies and a continued regional conflicts. We will further strengthen our core competence in operations and various platforms. We are confident that with our continued innovation in business model and products, we can drive us through different challenges and generate sustainable quality growth for our investors, as well as entire ecosystem. With this, I will turn to Jin Hui. 2022 年 虽 然 充 满 艰 难 与 挑 战 ， Huazhu 作 为 行 业 龙 头 公 司 仍 然 迎 难 而 上 ， 取 得 了 一 些 业 务 的 进 展 。 我 们 先 来 看 一 下 Legacy Huazhu 取 得 的 一 些 主 要 成 绩 。 请 大 家 翻 到 第 3 页 。 首 先 ， 我 们 坚 持 了 经 营 增 长 战 略 不 动 摇 ， 在 2022 年 新 开 业 1,244 家 酒 店 ， 并 且 持 续 清 理 不 合 格 门 店 ， 以 及 升 级 各 个 品 牌 的 硬 件 产 品 ， 来 确 保 持 续 改 善 用 户 体 验 。 第 二 ， 我 们 完 成 了 组 织 升 级 ， 成 立 了 六 大 区 域 经 营 公 司 ， 为 未 来 市 场 充 分 渗 透 和 高 质 量 的 运 营 打 下 了 坚 实 的 组 织 基 础 。 第 三 ， 我 们 进 行 了 良 好 的 成 本 管 控 ， 在 2022 年 实 现 减 租 约 RMB 300 million ， 以 及 总 部 人 员 精 简 达 到 15% 。 最 后 ， 在 行 业 最 困 难 的 时 候 ， 我 们 仍 然 坚 持 把 加 盟 商 视 作 我 们 事 业 最 重 要 的 伙 伴 ， 帮 扶 和 减 免 加 盟 费 约 RMB 300 million 。 The year of 2022 was full of challenges and difficulties, H World Group, as one of the leading company in the industry, still coped the difficulties and made several business progresses during the year. Let's firstly discuss our main achievements for Legacy Huazhu for the year. Please turn to page three. First of all, we kept our sustainable quality growth strategy unchanged. During the year, we opened 1,244 hotels. We continued to remove inferior hotels from our network and upgrade hotel products across all brands to improve customers' experiences. Secondly, we completed our organizational restructuring and established the 6 regional offices to build up a solid foundation for further market penetration and high quality operations in the future. Thirdly, we have conducted good cost control and achieved a rental reduction of around RMB 300 million in 2022, as well as a 15% head count reduction in our headquarter during the year. Lastly, we waived around RMB 300 million, management fee for our franchisees during the tough period last year as we always treat our franchisees as our important business partners. 我们很高兴地看到 Huazhu China 的 RevPAR 在开放政策之后持续表现良好。请大家翻到第 四 页。自去年 11 月宣布开放以后，Huazhu China RevPAR 相较 2019 年的恢复程度呈现逐月提升的趋势。2022 年 10 月至 2023 年 1 月，RevPAR 恢复度从 74%、78%、87%、91%，再到 96%。2023 年 2 月 RevPAR 进一步提升到 2019 年的 104%。当然，2 月份的恢复数据一定程度上受到了 Chinese New Year 时间周期错位的影响，但同时也体现了 Huazhu 在中高端酒店占比的提升，以及价格收益能力的持续优化。We are very glad to see our RevPAR in China continue to perform well after reopenings. Please turn to page four. Since the official announcement of reopening in late November last year, our China RevPAR recovery was up trending month-over-month. RevPAR recovered to 74%, 87%, 91%, and 96% in last year, October, November, December, and January this year respectively. In February 2023, RevPAR further recovered to 140% of 2019 level. The recovery rate in February was mainly impacted by the timing mismatch of Chinese New Year holiday periods between 2023 and 2019. It also shows the impacts from product mix changes over past years as contribution from mid-scale and upper mid-scale increased, as well as our improving capabilities on ADR optimizations. 请 大 家 翻 到 第 五 页。展 望 2023 年，Huazhu China 的 战 略 重 点 依 然 是 以 经 营 增 长 为 核 心。在 营 增 长 的 背 景 下，我 们 又 细 分 了 三 个 战 略 方 向。第 一 是 基 于 高 质 量 门 店 的 酒 店 扩 张，通 过 以 Huazhu 主 力 品 牌 旗 舰 店 战 略 实 现 深 耕 中 国 的 战 略 部 署。第 二 是 以 中 档、中 高 端 品 牌 实 现 新 的 突 破 性 发 展，特 别 是 Huazhu 在 过 去 几 年 孵 化 的 Crystal Orange 、Blossom House 等 产 品 线。第 三 是 平 台 组 织 和 数 字 化 经 营 系 统 的 整 体 升 级。下 面 我 们 将 逐 一 阐 释。 Please turn to page five. Looking ahead in 2023, sustainable quality growth would still be our core strategy for Legacy Huazhu business. Under this strategy, we will focus on three key areas. Firstly, high quality hotel network expansion through our main brands and flagship hotel strategy to achieve further in-depth penetration in China market. Secondly, to achieve new breakthroughs development of mid-scale and upper mid-scale segments, especially for those brands that we incubated in past few years, such as Orange, Crystal Orange, Intercity, and Blossom House. Thirdly, we will further strengthen our organizational and digitalized operation capability. We will discuss each of these three focuses in details in the following. 首 先 ， 我 们 会 持 续 进 行 以 高 质 量 门 店 为 基 础 的 酒 店 网 络 扩 张 ， 尤 其 是 在 低 线 城 市 以 及 相 对 薄 弱 的 市 场 。 请 大 家 翻 到 第 六 页 。 截 至 2022 年 ， 华 住 中 国 酒 店 数 量 8,411 家 ， 净 增 705 家 ， 其 中 低 线 城 市 在 营 酒 店 数 量 占 比 相 较 2021 年 提 升 一 个 百 分 点 至 38% ， 管 道 酒 店 数 量 为 2,544 家 ， 其 中 低 线 占 比 也 较 2021 年 提 升 一 个 百 分 点 至 57% 。 在 营 及 管 道 酒 店 覆 盖 的 城 市 数 量 也 从 2021 年 底 的 1,062 个 提 升 至 2022 年 底 的 1,126 个 。 First of all, we will continue the high quality expansion of our hotel networks, especially in lower tier cities and less penetrated areas. Please turn to page six. At the end of 2022, we have total 8,411 hotels in operations in China, with net addition of 705 hotels during the year. Hotels in operation in lower tier cities contributed 38% as of 2022, increased by one percentage points compared to last year. We have 2,544 hotels in pipeline, with lower tier cities contributed roughly 57%, which was also increased by one percentage points compared to the last year. Number of cities coverage for both hotels in operations and pipeline increased to 1,126 cities, compared to 1,062 cities last year. 尽 管 去 年 受 到 疫 情 反 复 的 影 响 ， 但 是 我 们 的 高 质 量 的 酒 店 扩 张 仍 然 持 续 进 行 。 请 大 家 翻 到 第 七 页 。 从 新 签 约 数 量 来 看 ， 二 零 二 二 年 因 为 疫 情 加 上 信 心 有 所 下 降 ， 全 年 新 签 约 两 千 一 百 四 十 一 家 ， 显 著 低 于 二 零 二 一 年 的 两 千 八 百 四 十 九 家 。 但 是 也 需 要 看 到 ， 二 零 二 二 年 我 们 退 出 了 经 济 型 软 品 牌 市 场 ， 因 此 如 果 剔 除 经 济 型 软 品 牌 数 据 ， 二 零 二 二 年 新 签 约 为 两 千 一 百 二 十 三 家 ， 而 二 零 二 一 年 则 为 两 千 四 百 七 十 七 家 ， 下 滑 幅 度 相 对 有 限 。 从 新 开 业 酒 店 数 据 来 看 ， 也 如 新 签 约 一 样 ， 如 果 剔 除 经 济 型 软 品 牌 的 影 响 ， 全 年 新 开 业 一 千 两 百 三 十 六 家 ， 相 较 二 零 二 一 年 的 一 千 两 百 九 十 三 家 也 是 略 有 下 滑 。 从 关 店 数 据 来 看 ， 二 零 二 二 年 全 年 关 店 五 百 三 十 九 家 。 在 经 营 增 长 战 略 下 ， 我 们 持 续 关 闭 了 低 质 量 的 经 济 型 软 品 牌 和 汉 庭 一 点 零 产 品 。 如 果 剔 除 这 部 分 的 影 响 ， 二 零 二 二 年 关 店 为 两 百 三 十 七 家 ， 略 高 于 二 零 二 一 年 的 一 百 七 十 五 家 。 同 时 请 大 家 注 意 ， 我 们 去 年 给 的 关 店 指 引 是 六 百 家 以 上 ， 但 受 到 疫 情 因 素 影 响 ， 有 部 分 店 的 歇 业 流 程 尚 未 走 完 ， 因 此 这 部 分 将 会 影 响 到 今 年 的 关 店 数 量 。Our hotel network expansion with high quality continued despite COVID impacts last year. Please turn to page seven. In terms of new hotel signings, we signed up 2,141 new hotels in the last year. Obviously, that was lower than 2,849 hotels we signed in year of 2021. That was because the COVID impact and the lower franchisees confidence level. Given that we are no longer doing the economic Soft Brands since last year, therefore, if we exclude the impact of the economic Soft Brand hotels, we actually signed up 2,123 new hotels in 2022, compared to 2,477 hotels in the last year. The gap was narrowed. Similar to the new hotel signings for the new openings, if we exclude the economic Soft Brand hotel, we actually opened 1,236 new hotels in 2022, slightly lower than 1,293 hotels in 2021. On the hotel closure front, we totally closed around 539 hotels in 2022. In order to comply with our sustainable quality growth strategy, we continued to close more inferior economic Soft Brand hotels and Hanting 1.0 version products. If we exclude this impact, our closure for 2020 was 237 hotels compared to 175 hotels in 2021. At the same times, please note that our number of hotel closure was lower than our 600 closures we previously guided in last year, as some hotel closure process were uncompleted in December last year due to the impact of initial reopening from COVID. Therefore, those hotels may affected our total number of hotel closures for this year. 称 是 由 于 我 们 持 续 不 断 提 升 集 团 整 体 的 酒 店 质 量 ， 华 住 中 国 低 质 量 门 店 占 比 在 持 续 下 降 。 请 大 家 翻 到 第 八 页 。 2020 年 ， 低 质 量 的 经 济 型 软 品 牌 以 及 汉 庭 一 点 零 版 门 店 在 公 司 占 比 25.9% ， 到 2022 年 ， 这 一 比 例 已 经 下 降 到 13.4% 。 Along with our efforts on continuously improving our hotel quality, the proportion of low quality hotel were declining consistently. Please turn to page eight. For example, number of economic Soft Brand and Hanting 1.0 hotels only contributed 13.4% by the end of 2022, significantly declined from 25.9% at the end of 2020. 与 此 同 时 ， 我 们 的 主 力 品 牌 矩 阵 也 在 持 续 夯 实 。 请 大 家 翻 到 第 9 页 。 在 经 济 型 和 中 档 领 域 ， 我 们 分 别 形 成 了 以 汉 庭 、 全 季 为 核 心 ， 尼 豪 、 桔 子 为 后 补 的 主 力 品 牌 梯 队 。 未 来 我 们 的 主 力 品 牌 将 会 持 续 提 升 。 At the same time, we continuously strengthen the metrics of our main brand. Please turn to page nine. In the economic and the midscale segment, we formed Hanting and JI brand as our key core brands, and the Nihao and Orange are complementary brands. We will further enhance our core brand power in the future. 请 大 家 翻 到 page 10。 在 中 高 端 品 牌 发 展 方 面 ， 我 们 仍 然 是 以 多 品 牌 战 略 抢 占 市 场 。 通 过 新 的 品 牌 梳 理 和 调 整 ， 旗 下 已 经 有 Crystal Orange Hotel、 IntercityHotel、 MAXX、 Manxin Hotel、 欢阁、 Madison Hotel、 Mercure、 Novotel 等 八 个 品 牌 。 截 至 2022 年 年 末 ， 中 高 端 品 牌 在 中 国 合 计 523 家 在 营 酒 店 和 287 家 管 道 酒 店 。 Please turn to page ten. In terms of our upper midscale segment development, we remain using our multi-brand strategy to further penetrate the market. Through adjusting and resorting our brand metrics, we now have eight brands in this segment, which include Crystal Orange, Intercity, MAXX, Manxin, CitiGO, Madison, Mercure and the Novotel. At the end of 2022, we have total 523 hotels in operation and 287 hotels in pipeline for this segment. 华 住 也 致 力 于 组 织 和 经 营 系 统 的 持 续 升 级 ， 在 人 才 储 备 、 数 字 化 、 加 盟 商 与 客 户 服 务 、 营 销 与 会 员 、 供 应 链 、 可 持 续 发 展 等 各 个 方 面 进 行 全 面 的 提 升 ， 提 高 组 织 运 营 效 率 ， 为 客 户 和 加 盟 商 创 造 价 值 。 请 大 家 翻 到 第 十 页 。 在 客 户 服 务 提 升 方 面 ， 从 客 户 网 评 数 据 来 看 ， 呈 现 逐 步 提 升 的 态 势 ， 可 见 客 户 对 我 们 旗 下 酒 店 的 满 意 度 正 在 持 续 提 高 。 从 客 户 差 评 率 来 看 ， 呈 现 逐 步 下 降 的 态 势 ， 也 可 见 我 们 在 持 续 改 善 客 户 在 酒 店 的 体 验 。 H World is also committed to continuously upgrading and strengthening our organizational and operational system, comprehensively improving on the fronts of talent reserve, digitalization, franchisees and customer services, sales and loyalty programs, supply chain management and sustainable development. Further improving organizational operational efficiency and creating more value to our franchisees and customers. Please turn to page 11. In terms of our customer service improvement, we are seeing our customers' rating on our hotels continuously improving. It demonstrated that our customers are getting more satisfied with our hotel products and services. At the same time, customers' negative rating rate is consistently declining, indicating our continuously efforts on improving customers' experiences through providing better services and pro-products. 请 大家 翻 到 第 12 页 。 我们 将 通过 三 个 方面 强化 营销 和 会员 体系 的 能力 。 首先 是 价格 收益 能力 的 优化 。 在 完成 了 区域 分公司 的 组织 变革 后 ， 各 区域 的 酒店 能够 更好 地 进行 属地 化 ， 更为 敏捷 的 价格 体系 的 管理 ， 不同 档次 的 品牌 也 能 形成 价格 梯度 ， 在 多 品牌 之间 产生 价值 协同 。 其次 是 H Rewards 的 升级 。 依托 H Rewards 强大 的 会员 和 流量 ， 我们 能 进一步 深挖 其 潜力 ， 在 会员 权益 等 各个 方面 进行 持续 的 提升 和 升级 。 最后 是 提升 Huazhu Corporate Travel 的 经营 能力 ， 持续 开发 新 的 头部 企业 客户 ， 通过 数字 化 直连 的 方式 ， 加深 与 企业 客户 的 互动 合作 ， 提升 Huazhu 门店 在 企业 客户 、 团队 、 会议 、 宴会 等 MICE 场景 的 需求 的 销售 贡献 。 Please turn to page 12. We will focus on three areas to reinforce our sales and marketing and loyalty programs. The first one is on the ADR optimization. After completing our organizational restructuring and establishing six regional offices, hotels which located in each region can set up a more flexible pricing system based on the local market conditions. Also, the pricing synergy can be achieved among various brands in each region, and the pricing range for different segments can becomes more reasonable. The second one is continuously enhancement and upgrade of H Rewards loyalty program. By leveraging on the large number of members and traffic, we will further dig the potentials through consistent upgrading and improving our loyalty program, such as the memberships pro-privilege. Lastly, we will further improve our sales capabilities on corporate clients. We will continuously develop new top-tier corporate customers, Generating more revenue contributed from our corporate clients through group bookings, conference, banquet, and MICE activities by leveraging on our digitalized direct connection capability and closer cooperation with them. The operational efficiency improvements for our leased and owned hotels is also very important for the group. Please turn to page 13. Firstly, we will constantly optimize the current leased and owned hotel portfolios. Those leased and owned hotels which are not meeting our requirements will probably be early terminated. Secondly, we will further improve the operational efficiency of the hotel to reduce the operating cost and improve the profitability for leased and owned hotels. Lastly, any new leased and owned hotels investment in the future will be mainly determined by the return and the strategic considerations, such as the flagship hotels. Please turn to page 14. We will further strengthen our supply chain capability. We will provide full supply chain services and conduct in-depth operations to franchisees, as well as continuously upgrading products to achieve better quality product and more standardized services with lower cost and higher efficiency. Last but not least, we will pay more attention on ESG and long-term sustainable development. Please turn to page 15. In addition to the continuously efforts on social welfare and employee care in the past, we will make more efforts on ESG this year with three key focuses. The first one is to continuously improve and optimize the company's ESG database. The second one is to improve the efficiency of energy and water usage. The third one is to launch more green projects, including green suppliers and green livings and so on. All above are our business reviews for last year and the key strategic focuses for this year. Now I will turn the call over to our CFO, Ms. He Jihong, to discuss our DH business and our 2022 full year financial performance. Thank you. Hello, everyone. Thank you, Jin Hui, and thank you, Jason. Please turn to page 16. In our international front, we are very happy to report that DH business achieved robust recovery in 2022 and achieved RMB 134 million adjusted EBITDA before special write-off impairment and unrealized loss. While we are very lucky to be able to capture the market recovery after COVID, this result would not have been possible without a disciplined cost reduction measures and a corporate restructuring effort. In addition, we carried out a series of activities to bring the DH business to a new level. We rolled out our proprietary digital infrastructure in our hotels. We upgraded our loyalty program, H Rewards, internationally with enhanced benefits. We refreshed the brand positioning and the products for Intercity and Zleep Hotels. Last but not least, we implemented a new management system to attract the talent for our hotels and our headquarters. Please turn to page 17. In 2023, DH will focus on four strategic areas. Most importantly, we will continue our effort to improve margin. This includes both further improvement of our revenue as well as continued cost discipline. Number two, we will continue to invest in direct sales channels. With our H Rewards program, our reservation system, as well as mobile web booking platforms, we will continue to increase the ratio of direct bookings. Number three, we will continue to grow our hotel network by leveraging our strong brand. Number four, we will continue to carry out digitization of our core processes. Now I will turn to the financial section of today's call. Please turn to page 19. We all know 2022 was a very difficult year in China due to strict COVID policy. Despite the tough operating environment, we managed to grow our hotel network. The number of rooms increased 7% year-on-year to 809,478 rooms in 2022. Our hotel turnover was CNY 49.6 billion, a 9% increase compared to 2021. Page 20. Due to restrictions of COVID policies, blended RevPAR for our China business in 2022 was CNY 157. This is a decrease of 8.8% compared to 2021, and a 20.5% decrease compared to 2019. This was mostly due to lower occupancy, which was 5.5% lower than 2021, and is 17.7% lower compared to 2019. Page 21. In our international business, the market recovery started in Q2 2022. We achieved 96% RevPAR increase compared to 2021, which was driven by 23% of ADR increase and a 21% occupancy increase. Please turn to page 22. In Q4 2022, our total revenue for the group increased by 11% compared to Q3 2022, which is mainly due to 66% revenue improvement in our international business. For the whole year 2022, our revenue increased by 8.4% year-on-year, which is contributed by a 108.5% revenue increase from DH. For the whole year 2022, revenue from our China business decreased by 5.3%. The recovery of our China business accelerated after Chinese Government announced the reopening policy in mid-November. The overall full Q 2022 revenue was at the high end of our guidance, despite fee waiver of RMB 58 million to support our franchisees. Please turn to page 23. Operating costs in full Q 2022 was RMB 3.4 billion and RMB 12 billion for the full year 2022. This includes RMB 195 million impairment loss of our China business and RMB 169 million for DH business. Income from operations, therefore, was minus RMB 93 million in full Q 2022, and minus RMB 294 million for the full year 2022. Please turn to page 24. Our adjusted EBITDA was RMB 398 million in full Q 2022, and RMB 610 million for the full year 2022. Our China business reported a foreign exchange gain in full Q 2022, but this was offset by impairment loss. For DH business, adjusted EBITDA in full Q 2022 decreased by CNY 68 million compared to 2021 because of the absence of COVID-related government subsidies, which was received in 2022. For the whole group, adjusted net income was -CNY 255 million for full Q 2022, and -CNY 1.27 billion for the full year 2022. Please turn to page 25. As we had a quite substantial amount of non-cash impairment, unrealized loss due to change in fair value of equity securities, as well as unrealized foreign exchange losses, we would like to show the normalized EBITDA and the net income here separately. The adjusted EBITDA before impairment and foreign exchange was CNY 1.7 billion for the full year 2022. We achieved this level of normalized adjusted EBITDA due to disciplined cost control measures such as rental reduction and streamlining of our headquarter costs. Please turn to page 26. We would like to update everyone on the liquidity position as well. As of 31 December 2022, our net debt was CNY 4.8 billion, and our cash balance is CNY 5.1 billion. We have unutilized a bank facility of CNY 2.1 billion. We would like to mention here that our cash position was further improved as of today, since we did a very successful follow-on public offering of $300 million in January 2023, and we liquidated our Accor shares at EUR 300 million in February 2023. Please turn to page 27. As each year, we give a broad guidance for our business in the coming year. Since China is just starting the recovery trajectory, and we need to further observe the business trend, we remain optimistic but stay cautious. We estimate our net revenue in Q1 2023 to grow at about 61%-65% compared to Q1 2022. Excluding DH business, our China business is estimated to grow at 53%-57%. For the year, revenue is estimated to grow at 42%-46%, and the China business is estimated to grow at 46%-50%. Gross hotel opening target is estimated at 1,400, and we plan to close about 600-650 hotels. Among the hotels to be closed in 2023, there are substantial numbers of them already not revenue generating, but are still going through legal closure procedures due to delay because of the COVID. Many of these hotels are Soft Brand hotels and Hanting 1.0. We will have some of these hotels to be officially taken out of our inventory this year. This concludes our presentation today. We can start with Q&A session. Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. First question comes from the line of Ronald Leung of Bank of America. Please proceed with your question. Hi. Good morning, management. I have two questions. The first question is about the revenue guidance. Based on the Q1 revenue guidance for domestic China growing 53%-57% and the full year revenue growing 46%-50%, what would be the rough cut recovery assumptions that the management is putting in right now? The second question is about the global expansion strategy. What would be the next step for the global expansion strategy in this year and next year? Would management still consider further mergers or acquisitions to complement the brand portfolios? Thank you very much. 这 两个 问题 先 由 我 来 回答 ， 然后 Jihong 可以 做 些 补充 。 首 先 关 于 收 入 的 指 引 ， 基 于 的 RevPAR， 确 实 我 们 在 今 年 China 比 较 强 劲 的 内 需 的 推 进 下 ， 我 们 有 关 注 到 中国 整 个 应 该 ADR 的 提 升 是 比 较 明 显 的 。 我 们 也 注 意 到 了 一 些 主 流 商 务 客 户 ， 出 租 率 的 缺 口 ， 目 前 还 是 有 缺 口 的 。 我 们 基 于 了 一 个 1Q 中国 的 整 个 不 同 市 场 客 源 的 恢 复 的 程 度 ， 我 们 大 概 做 了 RevPAR 的 预 估 ， 大 概 是 在 2019 年 的 110% 左 右 。 是 这 样 的 一 个 ， 这 个 判 断 下 ， 经 过 市 场 的 检 验 以 及 不 同 细 分 市 场 的 分 析 做 出 的 一 个 指 引 。 To answer your first questions. Basically we are seeing the demand was getting quite strong in the beginning of this year. We are seeing the RevPAR recovery was mainly driven by the ADR. However, we are still seeing the business traveling, I mean especially the business traveling, still has some gap compared to the normal year. That's why the OCC was having some gap as well. By considering all the factors, in terms of the revenue guidance, by considering all the factors which we mentioned before. The revenue guidance actually implies the RevPAR recovery compared to the same period of 2019 was around 110%. 关 于 第 二 个 问 题 呢 ， 我 想 试 图 跟 大 家 做 一 些 目 前 业 务 China 的 一 些 介 绍 。 受 到 一 方 面 由 于 过 去 三 年 消 费 的 积 压 ， 我 们 在 整 个 疫 情 恢 复 以 后 ， 包 括 Chinese New Year ， 展 现 了 China 非 常 好 的 内 需 的 增 长 。 这 个 在 之 前 的 披 露 里 面 ， 我 们 有 反 映 出 整 个 Chinese New Year 对 China 消 费 市 场 的 恢 复 。 当 然 China 由 于 整 个 Two Sessions 以 后 ， 推 进 整 个 内 需 的 发 展 以 及 坚 定 的 经 济 增 长 的 策 略 。 首 先 我 们 对 China 的 内 循 环 下 的 增 长 充 满 着 非 常 强 的 信 心 。 毫 无 疑 问 ， 对 于 Huazhu 而 言 ， 第 一 个 战 略 是 深 耕 中 国 ， 在 中 国 市 场 的 持 续 的 高 质 量 发 展 和 中 高 端 的 市 场 的 突 破 ， 是 毫 无 疑 问 依 然 是 2023 Huazhu 的 核 心 的 重 点 的 工 作 。 当 然 我 们 不 排 除 在 国 际 上 探 寻 一 些 发 展 的 可 能 ， 尤 其 是 在 夯 实 DH 在 德 国 业 务 的 基 础 上 ， 我 们 持 续 地 提 升 DH 在 德 国 的 业 务 的 利 润 以 及 客 户 的 体 验 作 为 基 础 ， 我 们 再 展 开 一 些 国 际 化 的 机 会 的 探 索 和 可 能 性 。 我 想 大 致 的 战 略 是 这 样 的 一 个 原 则 。 I will give you a little bit introduction in terms of our strategy focus for the 2023. As you can see, after the reopening, I remember in the Q1, we are seeing a quite strong demand in the China market, especially during the Chinese New Year. We are still being very confident in terms of the demand in China and the growth potentials in the future. Definitely so our key focus will be in China market. We are going to further penetrate into the China market by leveraging our key brand and also further strengthening our mid scale and upper mid scale segment penetration as well. In terms of the global expansion, so, first priority is definitely to further improve the DH operations, by improving the profitability as well as the customers' experiences, but at the same time, we will be looking for some of the opportunity and the potentials in the global market, if there is something suitable. I can add a little bit of flavor to our international business. Since acquisition of DH, this business, DH business has been our base for our international expansion. After the COVID difficult time and we have seen really good turnaround of the business. Starting in 2023, we will continue to use DH as a base for our international expansion. The basic what Mr. Jin Hui mentioned was really to improve the operations of DH, but also further expand the DH brand in different markets. For example, we have good inroads into Middle East as well. For the international expansion in other areas, we remain optimistic for the further M&A opportunities. I will say, DH is our first and the most priority at this moment. 好 ， 谢 谢 管 理 层 。Thank you management。 One moment for our next question. Our next question comes from the line of Simon Cheung of Goldman Sachs. Please proceed with your question. 啊 ， 谢 谢 管 理 层 的 分 享 。 啊 ， 我 有 两 个 问 题 ， 啊 ， 刚 才 Ronald 有 问 了 ， 啊 ，2023 年 你 们 的 收 入 的 指 引 ， 啊 ， 对 于 那 个 RevPAR 的 assumption 是 怎 么 样 ？ 我 ， 我 可 以 再 ， 呃 ， 追 问 一 下 ， 你 们 现 在 看 2023 年 的 展 望 是 怎 么 样 吗 ？ 啊 ， 尤 其 是 那 个 RevPAR 的 指 引 。 然 后 呢 ， 如 果 再 看 ， 啊 ， 长 远 一 点 点 的 话 ，2024、2025 年 的 话 呢 ， 我 们 常 常 给 ， 啊 ， 投 资 者 问 到 的 一 个 问 题 ， 就 是 说 R-RevPAR 长 期 的 增 长 可 以 多 快 ？ 啊 ， 因 为 国 内 很 多 酒 店 嘛 ，oversupply 的 问 题 ， 我 想 了 解 管 理 层 对 这 个 方 向 是 怎 么 去 想 的 ， 这 个 问 题 是 怎 么 去 想 的 ， 这 个 是 第 一 个 问 题 ， 然 后 第 二 个 问 题 就 是 说 刚 才 看 到 你 们 的 即 兴 ， 今 年 的 开 店 的 数 量 从 1,200 多 家 ， 上 一 年 到 今 年 大 概 1,400 多 家 嘛 ， 我 想 了 解 一 下 ， 你 们 过 去 可 能 一 两 个 月 ， 尤 其 是 那 个 势 头 这 么 ， 这 么 强 劲 底 下 ， 会 不 会 看 到 有 比 较 多 的 投 资 者 开 始 有 兴 趣 在 你 们 加 店 ， 就 开 始 有 投 入 多 一 点点 ， 开 拍 去 加 店 呢 ？ 然 后 你 在 华 南 地 区 ， 我 记 得 你 上 一 个 季 度 有 说 ， 你 们 会 有 一 个 分 公 司 ， 我 想 了 解 一 下 你 们 在 华 南 地 区 你 现 在 做 得 怎 么 样 ？ I will ask, follow up with English in the questions. I think Ronald earlier asked also about you know the 2023 revenue guidance and the implied RevPAR for the full year. Would like to see whether you can provide us you know the RevPAR guidance for the full year, and also that you know going forward in the longer run, what is your expectation of RevPAR growth in the next perhaps two, three years, given all this massive concern of about over-the-price situation in China. That's the first question. And the second question is, not just that you have give out a [accelerations] in the hotel at, from RMB 1,200 RMB 1,400 wondering whether you have see more appetite of the investors to comeback into the market and also you have any update on the [inaudible] China regional update office strategy. Thank you. 好 的 ， 关 于 RevPAR 和 收 入 的 呃 ， 增 长 ， 我 想 主 要 来 自 于 两 个 方 面 ， 一 个 方 面 呢 ， 来 自 于 我 们 业 务 的 增 长 ， 其 实 和 你 提 的 第 二 个 问 题 有 关 。 呃 ， 第 二 个 呢 是 来 自 于 RevPAR 的 整 个 业 务 的 增 长 。 我 们 前 面 我 也 提 到 过 ， 由 于 受 到 整 个 内 需 的 增 长 ， 我 们 显 著 地 看 到 了 ADR 的 增 长 的 趋 势 是 比 较 明 显 的 ， 特 别 是 在 ， 呃 ， 整 个 政 策 疫 情 放 开 以 后 ， 在 休 闲 旅 游 度 假 市 场 的 这 样 的 一 个 支 付 能 力 ， 啊 是 得 到 了 显 著 的 恢 复 和 提 升 。 所 以 我 们 在 2023 年 我 们 给 的 指 引 RevPAR 大 概 是 在 2019 年 的 百 分 之 一 百 一 到 百 分 之 一 百 一 十 五 这 样 的 一 个 区 间 。 呃 ， 这 个 是 我 想 讲 的 第 一 个 问 题 。 关 于 第 二 个 ， 其 实 涉 及 到 整 个 业 务 的 增 长 ， 呃 ， 确 实 我 们 在 一 季 度 ， 呃 ， 如 你 所 讲 ， 由 于 整 个 经 营 恢 复 的 提 升 ， 我 们 看 到 了 整 个 投 资 这 样 的 一 个 恢 复 ， 啊 我 们 确 实 在 一 季 度 ， 特 别 是 在 春 节 以 后 ， 整 个 在 中 国 的 业 务 增 长 、 签 约 数 量 、 管 道 数 量 都 ， 都 得 到 了 非 常 好 的 这 样 的 一 个 表 现 ， 啊 非 常 好 的 表 现 ， 应 该 略 高 于 我 们 原 来 自 己 的 估 算 。 然 后 呢 ， 在 整 个 中 国 的 薄 弱 市 场 ， 不 仅 仅 是 在 南 方 ， 啊 华 住 原 来 在 华 中 ， 啊 在 整 个 华 西 都 是 原 来 华 住 相 对 比 较 薄 弱 区 域 。 应 该 讲 我 们 都 通 过 过 去 一 年 的 整 个 公 司 的 组 织 的 下 沉 ， 开 发 的 倾 斜 ， 能 力 的 倾 斜 ， 得 到 了 很 好 的 补 充 和 成 长 。 呃 ， 大 家 也 会 很 快 在 这 些 薄 弱 市 场 都 看 到 我 们 围 绕 着 品 牌 旗 舰 店 主 力 品 牌 的 这 样 的 一 个 渗 透 和 发 展 ， 我 们 对 此 保 持 非 常 乐 观 的 这 样 的 一 个 态 度 。 To answer your first questions, as I mentioned earlier. Basically we are seeing a quite strong domestic demand, starting from the beginning of the year, post the government's, you know, announced the reopening policy. It was the RevPAR recovery was mainly driven by the ADR growth, and especially from the leisure market. We are seeing a pretty good recovery from the leisure market. In terms of the RevPAR, I mean in terms of the blended RevPAR recovery compared to the same period of 2019, the current full year revenue guidance implies the blended RevPAR will recover to 110%-115% compared to the same period of 2019. To answer your second questions in terms of the business growth. Yes, I think in the Q1 we are seeing a good business recovery and we are seeing the franchisees confidence is coming back a bit, and we are also seeing the investment appetite is improving as well, especially post the Chinese New Year. From the number front, we are seeing good trends in terms of the new signings and pipeline increase, which is slightly better than our previous expectations. In terms of the less penetrated market development, not only the southern part of China, like for example, the central area and western area, were also previously quite weak places for Huazhu for H World. After we completed our organizational restructuring and regional offices establishment, we are seeing a pretty good progress development in those particular regions and we are still remain very confident in terms of the growth potentials over there, mainly leveraging our flagship stores strategy as well as our main brands development. 好 的 ， 谢 谢 管 理 层 的 分 享 ， 谢 谢 。 One moment for our next question. Our next question comes from line of Sijie Lin of CICC. Please proceed with your question. 谢 谢 管 理 层 ， 我 就 有 一 个 问 题 是 关 于 刚 才 咱 们 提 到 的 Nihao Hotel ， 就 是 它 ， 它 在 这 个 经 济 型 里 面 的 一 个 定 位 ， 会 不 会 是 类 似 于 Orange Hotel 在 中 档 里 面 的 一 个 定 位 ， 然 后 Nihao Hotel 未 来 的 一 个 这 个 拓 店 的 计 划 ， 包 括 说 在 这 种 房 量 要 求 ， 还 有 这 个 RevPAR 上 会 和 Hanting 有 多 大 的 一 个 差 异 ？ I have just one question about Nihao Hotel. Considering it's positioned in economy hotels. Is it quite similar with Orange Hotel's positioning in mid-scale hotels? What is Nihao Hotel's opening target in the future? What's the difference in the room numbers and RevPAR compared with Hanting? Thank you. 好 的 ， 我 来 回 答 这 个 问 题 。 随 着 我 们 在 进 一 步 深 耕 中 国 和 下 沉 市 场 的 过 程 中 ， 我 们 发 现 ， 在 原 有 Hanting 的 市 场 这 样 的 一 个 区 隔 里 面 ， 出 现 了 大 量 的 下 层 的 我 们 称 作 为 叫 小 镇 青 年 、 年 轻 化 的 客 户 、 本 地 休 闲 旅 游 度 假 这 些 原 有 在 Hanting 之 外 的 这 样 的 客 户 群 。 大 家 知 道 Hanting 在 中 国 已 经 有 3,000 家 店 以 上 的 规 模 ， 它 有 非 常 强 的 商 务 和 这 个 属 性 ， 所 以 我 们 迅 速地 在 2020 年 开 始 孵 化 Nihao 的 品 牌 ， 希 望 在 整 个 中 国 的 有 幸 福 国 民 市 场 实 现 充 分 的 占 领 。 Nihao 承 载 着 对 于 Hanting 的 强 有 力 的 补 充 ， 在 整 个 下 层 年 轻 化 市 场 、 旅 游 度 假 休 闲 市 场 ， 随 着 我 们 的 产 品 升 级 和 迭 代 ， 也 会 让 中 国 的 这 样 的 国 民 有 更 多 的 选 择 。 在 国 民 市 场 ， Huazhu 希 望 通 过 2 个 品 牌 实 现 非 常 好 的 完 整 的 这 样 的 组 合 。 谢 谢 。 Okay. To answer your questions. Actually, along with our strategy with the lower tier cities penetrations and further penetrating to the entire China market, we realized that actually, especially in the lower tier cities, we are seeing quite a lot of, you know, new demands, like a lot of young generations, a lot of local leisure, traveling demand. Those customers are actually not, probably not the Hanting brand's key customers or target customers. As you know, Hanting was positioned as a very unique business traveling product. To fulfill those kind of new demand in the lower tier cities, we incubated our Nihao brand starting from 2020. What we are targeting is to further penetrating the very mass market in China, and especially in the economic segment. We would like to use Hanting and Nihao as our two key brands, in to further penetrate the market and provide more choices to the customers, for the entire mass market in China. Thank you. Thank you. At this time, I would now like to turn back to Jason Chen for closing remarks. Thank you everyone for taking your time with us today, and we look forward to see you in upcoming quarter. Thank you. Bye bye. That concludes today's conference call. Thank You for participating. You may now disconnect.