v3.26.3
RELATED PARTY TRANSACTIONS AND BALANCES
6 Months Ended
Jun. 30, 2026
RELATED PARTY TRANSACTIONS AND BALANCES  
RELATED PARTY TRANSACTIONS AND BALANCES

17.RELATED PARTY TRANSACTIONS AND BALANCES

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities.

The following entities are considered to be related parties to the Group. The related parties mainly act as service providers and service recipients to the Group.

Related Party

  ​ ​ ​

Nature of the Party

  ​ ​ ​

Relationship with the Group

Trip.com Group Limited (“Trip.com”)

 

Online travel services provider

 

Shareholder of the Group;
One officer of Trip.com is a family member of the Group’s director

China Cjia Group Limited (“Cjia Group”)

 

Apartment Management Group

 

Equity method investee of the Group

Shanghai Zhuchuang Enterprise Management Co., Ltd. (“Zhuchuang”)

 

Staged office space company

 

Equity method investee of the Group

Shanghai Lianquan Hotel Management Co., Ltd. (“Lianquan”)

 

Hotel management company

 

Equity method investee of the Group

Huamai (Guangzhou) Hotel Management Co., Ltd. (“Huamai”)

Hotel management company

Equity method investee of the Group

Azure Hospitality Fund I Limited Partnership (“Azure Fund”)

Fund

Equity method investee of the Group

Huazhu Azure Capital Partners Inc. (“Azure Capital”)

Investment company

Equity method investee of the Group

(a) Related party balances

Amounts due from related parties consist of the following:

As of

December 31,

June 30, 

  ​ ​ ​

2025

  ​ ​ ​

2026

Trip.com

 

265

 

94

Lianquan

 

19

 

19

Huamai

 

16

 

8

Zhuchuang

14

14

Cjia Group

12

12

Others

 

25

 

29

Allowance for expected credit losses

(37)

(37)

Total

 

314

 

139

Amounts due to related parties consist of the following:

As of

December 31,

June 30, 

  ​ ​ ​

2025

  ​ ​ ​

2026

Trip.com

60

52

Cjia Group

20

22

Others

49

22

Total

129

96

(b) Related party transactions

During the six months ended June 30, 2025 and June 30, 2026, significant related party transactions were as follows:

Six Months Ended June 30, 

  ​ ​ ​

2025

  ​ ​ ​

2026

Commission expenses to Trip.com

148

 

132

Lease expenses to Trip.com

10

 

10

Lease expenses to Cjia Group

18

20

Goods sold and service provided to Cjia Group

15

 

12

Service fee from Trip.com

61

56

Service fee from Azure Fund

10

9

Sublease income from Cjia Group

3

2

In 2026, a subsidiary of Azure Capital, acting as the originator (the “Originator”), initiated the public offering of a real estate investment trust (the “REIT”). The Group, together with another equity shareholder of Azure Capital, undertook that if it is substantiated that the Originator or Azure Capital has committed any material violation of laws or regulations in the documents and materials submitted in connection with the REIT issuance application, including concealing material facts or fabricating materially false information, the Group and that equity shareholder shall require the Originator or Azure Capital to repurchase, at its own expense, all units of the REIT or the equity interests in the underlying real estate projects. If the Originator or Azure Capital is unable to fully perform the repurchase undertaking due to insufficient financial resources, the Group and that equity shareholder shall provide funding support to enable it to fulfill the repurchase undertaking. By the end of August 2026, the REIT’s offering remained ongoing, with a total offering size of approximately RMB1,239.