H World Group (HTHT) Q4 2025 earnings summary

Executive summary

• Achieved strong business results in 2025, with hotel GMV up 16.4% year-over-year to RMB108.1 billion and rooms in operation up 16.2% to 1,264,419, supported by high-quality network expansion and asset-light strategy.

• Asset-light, managed and franchised (M&F) business delivered robust revenue and profit growth, with M&F revenue up 23.1% year-over-year to RMB11.7 billion and adjusted EBITDA up 24.2% to RMB8.5 billion.

• Member base expanded to 245 million, with room nights sold to members rising 21.5% year-over-year.

• Legacy-DH business achieved a successful turnaround, with record adjusted EBITDA and improved profitability, including Q4 Adjusted EBITDA of RMB329 million.

• Opened 2,444 new hotels in 2025, with a pipeline of 2,906 unopened hotels.

Financial highlights

• Group revenue grew 5.9% year-over-year to RMB25.3 billion, at the high end of guidance.

• Adjusted EBITDA increased 24.2% year-over-year to RMB8.5 billion, with margin up 4.9 percentage points to 33.5%.

• Adjusted net income rose 32.9% year-over-year to RMB4.9 billion.

• Operating cash flow reached RMB8.4 billion; cash and equivalents at year-end were RMB15.4 billion, with net cash of RMB9.6 billion.

• Declared total 2025 dividends of US$650 million and share repurchases of US$110 million; total shareholder return for 2025 was US$760 million.

Outlook and guidance

• 2026 group revenue expected to grow 2%-6% year-over-year, or 5%-9% excluding DH; M&F revenue projected to grow 12%-16% year-over-year.

• Plan to open 2,200-2,300 hotels and close 600-700 hotels in 2026, targeting 12% hotel network growth.

• Cautiously optimistic on 2026 RevPAR, targeting flat to slightly positive year-over-year growth.

• Strategic focus for 2026 includes growing high-quality hotel network, strengthening brand positioning, and leveraging technology and AI.