Clearly, we are seeing that not only that we are rapidly growing our networks, but also the customers are involving rapidly as well. We are now facing a lot of diversified group of new customers, and we are trying to use both products and services to further improve their experiences and satisfactions. For example, just to give you an example for the new group of the customer, like there are a lot of marathon events host everywhere in China. So, how we can fulfill their demands, but their demand might not be the same as those general business travelers. So, again, what I want to emphasize is the service excellence strategy is not the short-term goal for the company, but it’s a long-term goal for us. It’s not just slogan. It’s actually our management goal to bring the company grow into the next stage.
Operator: Our next question comes from the line of Sijie Lin from CICC.
Sijie Lin: So, what’s the RevPAR guidance for Q1, would you might sharing with us? And we got a higher growth opening and net opening this year which we think is a very good thing and achieve a real high-quality growth. So, considering that we are opening hotels with higher RevPAR, meanwhile, closing hotels with bad performance. So, how much percentage of RevPAR growth will be contributed by this mix upgrade?
Jun Zou: Thanks for your question, Sijie. In the first quarter, our RevPAR probably will grow around the low single digits. And, as you mentioned, we will maintain a healthy growth with service excellence. However, in the meantime, we also encourage you to look into drivers other than RevPAR. RevPAR is definitely one of our drivers, but we’re rapidly shifting from a heavy model asset light model. And more and more franchise and manachised hotels will be open throughout the year. And, therefore, there will be different drivers that drive our growth in the future. And that’s something we can discuss. And while we are opening more and more mid-upscale hotels, we are also thinking into low-tier cities. So, the impact of new hotels to our RevPAR will be blended.
Operator: Our next question comes from the line of Lydia Ling from Citi.
Lydia Ling: My first question is, I want to follow up on the store opening, actually, the pace of the store opening rate this year. So, I want to check how about like the franchise confidence currently in the market given the macro conditions and also, is the company going to actually provide more support to the franchisee? And my second question is on the overseas business, the DH business and so, it’s already like to have like a positive EBITDA for last year. And so, how you actually further drive the profitability this year? Any target for this year?
Hui Jin: Let me answer your first question in terms of the franchisee. So, definitely a healthier return or ROI for franchisees and very important thing that’s what we are putting a lot of efforts on to helping them to get a good return to open every hotel that can help to make the money. So, we definitely will again provide a good service, just like what we discussed before, we’re also going to provide a good service to the franchisees and also some of the supportive policy to help them to continuously open good hotels. For some of the existing franchisees, we’re definitely helping them to open every hotels and with a good return. And from the new franchisees, especially for the new regions and the new segments, for example, the lower-tier cities and the upper-mid segment, we are dealing with a lot of new franchisees that was not existing before, for example, a lot of local property companies, governments as well as the SOEs. So, all in all, that for the franchises, definitely what we are trying to do as well as providing their good services and supportive policies just to ensure that every hotel stay open, we are going to have a good return on ROI.
Jun Zou: Hi, Lydia. I’m going to answer your second question about DH profitability and cost structure. Now, firstly, we’re determined that DH will move steadily to asset-light business model, and we are making progress in that area. And, secondly, DH is tried to best to achieve operational efficiency, and by creating a lean and lean organization. And, certainly, we are actually meticulously measuring ROI on all major capital and operational spending in DH business level. And with all of that efforts, we are determined to help DH gradually improve profitability and gradually turn cash flow positive. Thank you, Lydia, for your question.
Operator: We have reached the end of the question-and-answer session. Thank you very much for all your questions. I’ll now turn the conference back to the management team for any additional closing comments.
Jason Chen: Thank you, everyone, for taking your time with us today, and we look forward to seeing you in upcoming quarter. Thank you, and bye-bye.
Operator: That concludes today’s conference call. Thank you for participating. You may now disconnect.
