Macquarie published a research report statingcrashbandicootit'sabouttimeswitch, Huazhu Group (1179crashbandicootit'sabouttimeswitch.HK)'s three major hotel brands, Hanting, Orange and the whole season, continue to drive the increase in average daily room prices and occupancy rates in domestic businessescrashbandicootit'sabouttimeswitchIt is expected that the adjustment and upgrade of the hotel brand portfolio will continue to drive domestic business growth.

The bank pointed out that the transformation of the Group's asset-light business model has attracted much attention. The top priority of overseas business is now to improve profitability. Although the expansion rate has accelerated in the first quarter, the hotel network expansion guidelines for the whole year remain unchanged. Therefore, it is expected that the Group will adopt a carefully calculated strategic approach to business expansion, focusing on strengthening flagship brands and markets with low business coverage.

Macquarie lowered its profit forecast for Huazhu's 2024 and 2025 fiscal years by 1%, respectivelycrashbandicootit'sabouttimeswitch4.4% and 4.5% to reflect the low growth of ADR and the slowing pace of expansion of high-quality hotels. The rating outperformed the market. The target price of H-shares dropped by 2.7% to HK$36.