H World Group reports strong second-quarter 2026 performance and announces new shareholder return plan

H World Group Limited (NASDAQ: HTHT and HKEX: 1179) reported strong financial results for the second quarter of 2026, with revenue rising 10.8% year-over-year to RMB7.1 billion. This follows a 11.1% year-over-year revenue increase during the first quarter of 2026, which totaled RMB6.0 billion. The company’s H World China (HWC) segment, which includes all hotels operating within China, contributed significantly to this growth, with revenue increasing 12.4% year-over-year in Q1 2026.

The company’s hotel turnover also showed robust performance, increasing 17.4% year-over-year to RMB26.4 billion in the first quarter of 2026. This growth was driven by both the HWC and H World International (HWI) segments, with HWC contributing 18.0% year-over-year growth and HWI contributing 9.6%. The HWC segment’s manachised and franchised (M&F) revenue increased 20.3% year-over-year to RMB3.0 billion.

Despite the strong revenue growth, net income attributable to H World Group Limited declined slightly in Q1 2026 to RMB817 million (US$118 million), compared to RMB894 million in the same period in 2025. EBITDA (non-GAAP) for the first quarter was RMB1.6 billion (US$232 million), while adjusted EBITDA was RMB1.9 billion (US$269 million).

In addition to its financial performance, H World Group announced a new shareholder return plan aimed at enhancing value for investors. The plan includes a combination of share repurchases and dividend distributions, reflecting the company’s commitment to returning capital to shareholders. This initiative aligns with the company’s broader strategy of maintaining a strong balance sheet and optimizing capital allocation.

As of March 31, 2026, H World operated 13,215 hotels with 1,303,563 rooms in 21 countries. The company continues to expand its global footprint, with 2,894 unopened hotels in its pipeline. The HWC segment accounted for the majority of the company’s operations, with 13,095 hotels in operation and 2,865 unopened hotels in the pipeline.

Looking ahead, H World Group remains focused on high-quality hotel network expansion, brand development, and technology innovation. The company’s CEO, Jin Hui, emphasized the importance of these initiatives in driving long-term growth and enhancing shareholder value. With a strong balance sheet and a clear strategic direction, H World Group is well-positioned to continue delivering solid financial performance in the coming quarters.