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    Simon Cheung • Goldman Sachs Group, Inc.

    Simon Cheung's questions to H World Group Ltd (HTHT) leadership

    Simon Cheung's questions to H World Group Ltd (HTHT) leadership • Q2 2025

    Question

    Simon Cheung from Goldman Sachs asked about the timeline to resolve the underperformance of older HanTing brand hotels that are affecting same-store RevPAR. He also inquired about the long-term growth potential and market share expectations for the Crystal Orange and Intercity brands.

    Answer

    Jason Chen, Head of IR, translated the response, indicating it will likely take one to two years to resolve the issue with older HanTing hotels (versions 2.5 and below) through upgrades and substitutions with the new 4.0 version. For other brands, the company aims for Orange Hotel to become its second growth engine in the midscale segment. Intercity is positioned to become a leading upper-midscale brand within 3-5 years, capitalizing on high-quality properties becoming available due to weakness in the real estate market.

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    Simon Cheung's questions to H World Group Ltd (HTHT) leadership • Q1 2025

    Question

    Simon Cheung of Goldman Sachs noted the rapid pace of hotel openings in Q1 and asked if this indicated an upside risk to the full-year guidance. He also inquired about the growth strategy for the mid-upscale hotel segment, given its concentrated presence in a limited number of cities.

    Answer

    CEO Jin Hui stated that despite strong Q1 openings, the company is maintaining its conservative full-year target to prioritize high-quality, profitable growth over pure scale. For the upper-midscale segment, he explained the strategy is to first establish a strong brand presence in prime locations within Tier 1 and Tier 2 cities before expanding further, expressing confidence in eventually surpassing competitors in the segment.

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    Simon Cheung's questions to H World Group Ltd (HTHT) leadership • Q1 2025

    Question

    Simon Cheung of Goldman Sachs noted the rapid pace of hotel openings in Q1 and asked if this indicated an upside risk to the full-year guidance. He also inquired about the future growth strategy for the mid-upscale hotel segment, given its current focus on a limited number of cities.

    Answer

    CEO Hui Jin acknowledged the strong start to the year but stated the company is conservatively maintaining its full-year opening guidance, prioritizing 'high-quality scale growth.' Regarding the mid-upscale strategy, he explained the focus is on establishing strong brand presence in prime locations within Tier 1 and Tier 2 cities to 'reform' the segment, expressing confidence in long-term market leadership.

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    Simon Cheung's questions to H World Group Ltd (HTHT) leadership • Q2 2024

    Question

    Simon Cheung of Goldman Sachs posed three questions regarding the medium-term hotel supply outlook in China and its impact on RevPAR, how softer RevPAR guidance would affect margins, and the long-term strategy for the Deutsche Hospitality (DH) business, particularly in Asia.

    Answer

    CEO Hui Jin and CFO Jun Zou provided answers. On supply, Mr. Jin stated that the market lacks high-quality supply, not overall supply, and H World's strategy is to provide superior products to gain a competitive edge. For the DH business, he outlined a three-part strategy: an asset-light transformation, continuous cost control, and leveraging the brand for expansion in the Middle East and Asia Pacific. CFO Jun Zou addressed margins, explaining that despite short-term RevPAR fluctuations, margins are expected to improve long-term due to the shift to an asset-light model, flexible budgeting, and disciplined ROI measurement on spending.

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    Simon Cheung's questions to Trip.com Group Ltd (TCOM) leadership

    Simon Cheung's questions to Trip.com Group Ltd (TCOM) leadership • Q1 2025

    Question

    Simon Cheung of Goldman Sachs inquired about outbound travel trends, the company's performance versus the industry, the full-year outlook, and the potential impact of tariffs and forex volatility.

    Answer

    CFO Xiaofan Wang stated that cross-border flights recovered to 83-84% of 2019 levels in Q1, with a forecast to exceed 90% by year-end. She noted Trip.com's outbound bookings consistently outperform the market, especially for long-haul destinations. Wang also explained that the company's combined inbound and outbound operations create a natural hedge against foreign exchange fluctuations.

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    Simon Cheung's questions to Trip.com Group Ltd (TCOM) leadership • Q4 2024

    Question

    Simon Cheung of Goldman Sachs asked about the 2025 growth outlook for the Trip.com platform, planned initiatives, and whether the company has seen a response from local or global competitors.

    Answer

    CEO Jane Sun attributed the platform's rapid growth to its one-stop-shop model, excellent user experience, superior customer service, and heavy investment in AI. Regarding competition, she noted that the industry has always been competitive, and Trip.com's focus remains on building internal strengths rather than reacting to specific competitors.

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    Simon Cheung's questions to Trip.com Group Ltd (TCOM) leadership • Q2 2024

    Question

    Simon Cheung of Goldman Sachs noted the strong margin performance and the decline in product development expenses, asking for quantification of future AI investments and the margin outlook for the second half.

    Answer

    CFO Xiaofan Wang projected that margins would follow typical seasonality, with Q3 being the strongest. While marketing expenses may rise slightly, they will remain efficient. Long-term, she expects the China business margin to benefit from scale while overseas operations remain in an investment cycle, with no structural barriers to achieving margins comparable to international peers.

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    Simon Cheung's questions to Trip.com Group Ltd (TCOM) leadership • Q1 2024

    Question

    Simon Cheung from Goldman Sachs inquired about the differing margin profiles and take rates for Trip.com's domestic, outbound, and global platform businesses, and asked for color on the trend of declining operating expenses as a percentage of revenue.

    Answer

    CEO Jane Sun explained that the domestic business has a healthy margin due to scale, while the outbound business has a slightly higher margin due to higher average selling prices. The global Trip.com platform, though in an investment phase, has reached breakeven on a contribution margin basis. She stated that future margin expansion will be driven by operational scalability and improved marketing efficiency, which may be partially offset by expenses for international expansion.

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    Simon Cheung's questions to Atour Lifestyle Holdings Ltd (ATAT) leadership

    Simon Cheung's questions to Atour Lifestyle Holdings Ltd (ATAT) leadership • Q4 2024

    Question

    Simon Cheung of Goldman Sachs asked for the company's 2025 guidance on new hotel openings and new signings, following the record-breaking performance in 2024.

    Answer

    CEO Haijun Wang stated that Atour targets opening 500 new hotels in 2025, maintaining a similar growth rate to steadily advance towards its goal of 2,000 premier hotels. He noted that franchisee demand remains active and expects new signings to remain strong, but emphasized that the company will maintain strict quality control for new projects, particularly for its Atour 4.0 and Atour Light 3.0 products, to protect long-term brand value.

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    Simon Cheung's questions to Melco Resorts & Entertainment Ltd (MLCO) leadership

    Simon Cheung's questions to Melco Resorts & Entertainment Ltd (MLCO) leadership • Q3 2024

    Question

    Simon Cheung requested more details on the revamped promotional program and asked for guidance on daily operating expenses, particularly with the relaunch of 'The House of Dancing Water'.

    Answer

    President Evan Winkler explained the new loyalty program focuses on guaranteed benefits for top players and targeted offers for new players to create an aspirational path. CFO Geoff Davis reiterated prior guidance, stating daily OpEx could reach $3.0 million by year-end and that the relaunch of 'The House of Dancing Water' in Q2 2025 is expected to add $0.1 million per day to OpEx.

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