Huazhu Group Ltd
HKEX:1179

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Huazhu Group Ltd
HKEX:1179
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Price: 26.1 HKD 1.56%
Market Cap: 85.2B HKD
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Operating Margin
Huazhu Group Ltd

21.6%
Current
9%
Average
7.2%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
21.6%
=
Operating Profit
5.1B
/
Revenue
23.5B

Operating Margin Across Competitors

Country CN
Market Cap 81.8B HKD
Operating Margin
22%
Country US
Market Cap 170B USD
Operating Margin
28%
Country CN
Market Cap 2.7T MXN
Operating Margin
22%
Country US
Market Cap 85.9B USD
Operating Margin
15%
Country US
Market Cap 79.8B USD
Operating Margin
15%
Country US
Market Cap 64.6B USD
Operating Margin
25%
Country US
Market Cap 62B USD
Operating Margin
21%
Country MY
Market Cap 257.3B MYR
Operating Margin
-114%
Country CN
Market Cap 365.3B HKD
Operating Margin
27%
Country US
Market Cap 32.7B USD
Operating Margin
14%
Country UK
Market Cap 23.5B GBP
Operating Margin
12%
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Huazhu Group Ltd
Glance View

Market Cap
81.8B HKD
Industry
Hotels, Restaurants & Leisure

Huazhu Group Ltd., founded in 2005 by visionary entrepreneur Qi Ji, has blossomed into a formidable force within the hospitality industry, standing as one of China’s largest hotel operators. Initially inspired by the rising demand for budget-friendly accommodations among China's middle class, Huazhu carved its niche by offering a wide array of hotel brands, each tailored to distinct customer segments. From the economic Hanting Hotel to the more upscale Joya Hotel brand, the company effectively taps into a range of consumer preferences, ensuring that travelers from all walks of life find fitting comfort under its umbrella. By 2023, Huazhu had not only cemented its dominance in China with thousands of properties under its management but expanded its footprint internationally through strategic acquisitions and partnerships, notably with its acquisition of Deutsche Hospitality, a move that opened doors to the European market. In terms of operations, Huazhu employs an asset-light model that focuses on franchise and lease-and-operate arrangements, allowing it to accelerate growth without heavy capital outlays typical of hotel ownership. This efficiency is reflected in its revenue streams that primarily flow from room bookings, complemented by membership programs that bolster customer loyalty and frequent engagement. The group's model is further supported by digital innovations, leveraging robust IT infrastructure to streamline operations, enhance customer experience, and collect data insights. By continuously refining its offerings and tapping into technological advancements, Huazhu not only secures its income through high occupancy rates and consistent pricing strategies but also positions itself as a dynamic leader ready to capitalize on shifting travel trends in the post-pandemic landscape.

Intrinsic Value
43.19 HKD
Undervaluation 40%
Intrinsic Value
Price

See Also

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What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
21.6%
=
Operating Profit
5.1B
/
Revenue
23.5B
What is the Operating Margin of Huazhu Group Ltd?

Based on Huazhu Group Ltd's most recent financial statements, the company has Operating Margin of 21.6%.