H World Group Posts Record Q2 Results Driven by Asset-Light Strategy

H World Group reported a 15% YoY increase in hotel turnover to RMB 26.9 billion in Q2 2025, driven by its asset-light strategy. Asset-light revenues rose 22.8%, with manachise and franchise hotels contributing 64% to gross operating profit. Total adjusted EBITDA grew 11.3% to RMB 2.3 billion. The company added 595 new hotels, reaching 12,137 globally, and its loyalty program reached 288 million members. A cash dividend of $0.81 per ADS was declared, totaling $250 million for H1 2025.

H World Group Limited (HTHT and HKEX: 1179) reported robust financial results for the second quarter and first half of 2025, demonstrating resilience and growth in the global hotel industry. The company's asset-light strategy played a significant role in driving revenue and profit growth.

Key Financial Highlights:

- Hotel Turnover: Hotel turnover increased by 15.0% year-over-year (YoY) to RMB 26.9 billion in the second quarter of 2025 [1].
- Revenue Growth: Total revenue grew by 4.5% YoY to RMB 6.4 billion (US$897 million), with manachised and franchised revenue increasing by 22.8% YoY to RMB 2.9 billion (US$400 million) [1].
- EBITDA Growth: Adjusted EBITDA (non-GAAP) increased by 11.3% YoY to RMB 2.3 billion (US$317 million) [1].
- Hotel Network Expansion: H World added 595 new hotels, bringing the total number of hotels in operation to 12,137 globally [1].
- Loyalty Program: The company's loyalty program reached 288 million members [1].
- Cash Dividend: The board of directors declared a cash dividend of approximately US$250 million for the first half of 2025, amounting to US$0.81 per American Depositary Share (ADS) [1].

Segment Performance:

- Legacy-Huazhu Segment: Revenue from this segment increased by 5.7% YoY to RMB 5.1 billion, driven by continued expansion of the manachised and franchised hotel network [1].
- Legacy-DH Segment: Revenue from this segment was largely flat, increasing by only 0.1% YoY to RMB 1.3 billion [1].

Outlook:

For the third quarter of 2025, H World expects revenue growth to be in the range of 2%-6% compared to the third quarter of 2024, with manachised and franchised revenue growth expected to be in the range of 20%-24% [1].

The company's CEO, Jin Hui, commented on the results, stating, "Supported by our asset-light strategy, we delivered robust operating profit growth in the second quarter driven by network expansion, despite a modest year-over-year RevPAR decline. On the development front, we opened another 595 hotels in the quarter, well on track of achieving our 2,300 gross opening target for the full year of 2025. We remain cautious on the near-term industry outlook given the macro uncertainties, rising supply, and relatively soft corporate travel demand. Nevertheless, we are positive on the long-term growth for China’s travel and hospitality industry" [1].

References:

[1] H World Group Limited. (2025). H World Group Limited Reports Second Quarter and Interim of 2025 Unaudited Financial Results. Retrieved from https://www.globenewswire.com/news-release/2025/08/20/3136267/19355/en/H-World-Group-Limited-Reports-Second-Quarter-and-Interim-of-2025-Unaudited-Financial-Results.html