H World Expects Q3 Revenue Growth of 2%-6% YoY, 20%-24% Excluding DH.

H World expects Q3 revenue to increase by 2%-6% compared to last year, with a 4%-8% increase excluding DH. The company also forecasts a 20%-24% growth in manachised and franchised revenue for Q3.

Title: H World Group Reports Strong Q2 2025 Results, Projects Q3 Growth

H World Group Limited (NASDAQ: HTHT) reported robust financial results for the second quarter of 2025, showcasing a 4.5% year-over-year increase in revenue to RMB6.4 billion (US$897 million). The company's net income surged by 44.7% to RMB1.5 billion (US$215 million). Key highlights include a 22.8% increase in manachised and franchised revenue to RMB2.9 billion, and a network expansion to 12,137 hotels with 1,184,915 rooms in operation. During Q2 2025, H World opened 595 new hotels, maintaining a pipeline of 2,947 hotels [1].

The company's strategic shift towards manachised and franchised hotels is yielding impressive results. This segment's revenue jumped 22.8% year-over-year to RMB2.9 billion, exceeding management's guidance. The expansion pace remains aggressive, positioning H World well to achieve its 2,300 hotel opening target for 2025. This network expansion is successfully offsetting the 3.7% decline in RevPAR, which fell from RMB244 to RMB235. Same-hotel RevPAR decreased more significantly by 7.9%, indicating some pressure on the core business. Profitability metrics show substantial improvement, with operating margin expanding from 25.6% to 27.8% year-over-year. This margin expansion reflects the increasing contribution from high-margin franchised operations, which now represent approximately 45% of total revenue compared to 38.5% a year ago [1].

The Legacy-DH segment (Steigenberger Hotels) is showing signs of recovery with RevPAR increasing from €82 to €88, driven primarily by occupancy improvements rather than rate increases. This segment contributed RMB180 million in Adjusted EBITDA, a meaningful improvement from RMB133 million in Q2 2024 [1].

For Q3 2025, H World projects revenue growth of 2%-6% company-wide and 20%-24% for manachised and franchised operations. The Board declared a cash dividend of US$0.81 per ADS, totaling approximately US$250 million. H World's Q2 results demonstrate the effectiveness of its asset-light strategy, with net income surging 44.7% year-over-year to RMB1.5 billion (US$215 million) despite a modest 4.5% revenue increase to RMB6.4 billion [1].

References:
[1] https://www.stocktitan.net/news/HTHT/h-world-group-limited-reports-second-quarter-and-interim-of-2025-hbt0whlcmno6.html