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GOODWILL
12 Months Ended
Dec. 31, 2023
GOODWILL.  
GOODWILL

8.GOODWILL

The changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2023 were as follows:

    

Legacy Huazhu

    

Legacy DH

    

Total

Balance at January 1, 2022

 

 

 

Goodwill

 

3,036

 

2,496

 

5,532

Accumulated impairment loss

 

(4)

 

(396)

 

(400)

 

3,032

 

2,100

 

5,132

Goodwill acquired during the year

4

4

Net foreign exchange-goodwill

 

 

70

 

70

Net foreign exchange-impairment loss

 

 

(11)

 

(11)

Balance at December 31, 2022

 

 

 

Goodwill

3,036

2,570

5,606

Accumulated impairment loss

 

(4)

 

(407)

 

(411)

 

3,032

2,163

5,195

Impairment loss recognized during the year

(4)

(4)

Net foreign exchange-goodwill

151

151

Net foreign exchange-impairment loss

(24)

(24)

Balance at December 31, 2023

Goodwill

3,036

2,721

5,757

Accumulated impairment loss

(4)

(435)

(439)

3,032

2,286

5,318

As of December 31, 2022 and 2023, the estimated fair value of legacy Huazhu exceeded over 100% of its carrying value. As of December 31, 2022 and 2023, the estimated fair value of legacy DH exceeded its carrying value by approximately RMB769 and RMB490, which accounted for 25% and 17%of its carrying value, respectively. A 5% decline in the underlying projected cash flows or increase in the discount rate could not result in an impairment loss in 2022 and 2023.