Sujie Lin

Sujie Lin from CICC asked for insights into the expected trend and impact of delivery platform subsidies in 2026, whether platform competition is likely to mitigate, and what measures Yum China is taking to attract customers back to its own channels.

Answer

CFO Adrian Ding stated that Yum China has scenario plans for delivery platform subsidies and is confident the impact on its business will be limited due to a disciplined approach to sales, margin protection, and price integrity. He reiterated the long-term belief that aggregator subsidies benefit larger merchants by offering choice and opportunities for long-term benefits. Adrian emphasized the company's ability to protect and slightly increase margins in previous quarters, supporting the 2026 guidance for slight improvements in restaurant and operating margins, while cautioning about a tough Q1 comparison.

Sujie Lin inquired about Atour's recent hotel signing trends and whether there are any adjustments to the full-year guidance for hotel openings and closures.

Answer

Haijun Wang, Founder, Chairman, and CEO, stated that Atour maintains a strict selection mechanism for signings, focusing on core cities and business districts, with the number of new hotel signings in 2025 generally in line with 2024. He confirmed the full-year guidance of 500 new openings and achieving 2,000 premier hotels by year-end 2025. He also noted 28 closures in Q3 2025, with an expectation of approximately 80 closures for the full year 2025 to maintain network quality.

Sujie Lin of CICC asked for a breakdown of RevPAR performance, specifically the reasons behind strong ADR growth and its sustainability. She also questioned the persistent gap between blended RevPAR and same-store RevPAR, and what measures H World is taking to narrow it.

Answer

Jin Hui (CEO) and Jason Chen (Senior Vice President of Supply Chain) explained that ADR improvement resulted from refined revenue management, continuous product upgrades, and service excellence, which enhanced H World's pricing power. They noted the gap between blended and same-store RevPAR narrowed in Q3 due to tiered pricing strategies for new/flagship hotels and ongoing upgrades for mature hotels to meet evolving consumer demands.

Sujie Lin inquired about the breakdown of RevPAR, noting that ADR has performed better recently, and asked for the reasons behind this and its sustainability. She also questioned the persistent gap between blended RevPAR and same-store RevPAR, asking if it could narrow in the future and what measures would be taken.

Answer

Jin Hui (CEO, H World Group) and Jason Chen (Senior Vice President of Supply Chain, H World Group) attributed the ADR improvement to enhanced revenue management, pricing strategies, and continuous product upgrades and service excellence, which have given H World pricing power. They noted that the gap between blended and same-store RevPAR, caused by new high-quality hotels cannibalizing existing ones, narrowed in Q3 2025 due to tiered pricing strategies and ongoing upgrades of older hotels.