HTHT Surges 2.19% on Asset-Light Shift and $250M Dividend as Trading Volume Hits $0.18 Billion Ranking 484th in Market Activity

On August 21, 2025, H World Group Ltd (HTHT) rose 2.19% with a trading volume of $0.18 billion, ranking 484th in market activity. The stock’s performance followed its Q2 earnings report, which highlighted a 4.5% year-over-year revenue increase to RMB6.4 billion, driven by a 22.8% surge in asset-light managed and franchised revenue to RMB2.9 billion. Adjusted EBITDA grew 11.3% to RMB2.3 billion, while cash reserves stood at RMB13.7 billion, supported by RMB2.7 billion in operating cash flow.

The company’s strategic shift toward asset-light operations accelerated, with manachised and franchised gross operating profit rising 23.2% to RMB1.9 billion. This contrasts with a 7.6% decline in leased and owned revenue, reflecting broader industry challenges from oversupply and macroeconomic pressures. H World also announced a USD250 million interim dividend, covering 74% of first-half net profits, alongside a USD62 million share repurchase, signaling confidence in shareholder returns.

Looking ahead, management projected Q3 revenue growth of 2%-6% year-over-year, with the asset-light segment expected to expand 20%-24%. However, RevPAR is anticipated to weaken slightly due to new hotel openings and soft demand. The HanTing 4.0 supply chain overhaul and a 17.5% increase in H Rewards members to nearly 290 million highlight operational efficiency and customer retention efforts. Legal constraints in Europe, particularly Germany, remain a hurdle for transitioning the DH segment to an asset-light model.

A backtest of a strategy purchasing top 500 high-volume stocks and holding them for one day from 2022 yielded a 1.98% average daily return, with a total return of 7.61% over 365 days. The approach achieved a Sharpe ratio of 0.94 but faced a maximum drawdown of -29.16%, underscoring market volatility risks during downturns.