H World Group (HTHT) Q2 2025 earnings summary

Executive summary

• Revenue grew 4.5% year-over-year to RMB 6.4 billion, with manachised and franchised (M&F) revenue up 22.8% to RMB 2.9 billion and hotel GMV rising 15% to RMB 26.9 billion.

• Adjusted EBITDA increased 11.3% year-over-year to RMB 2.3 billion, and adjusted net income rose 7.6% to RMB 1.35 billion.

• Membership base grew 17.5% year-over-year to nearly 290 million, with direct bookings through CRS up 5.2% to 65.1%.

• Hanting Hotel ranked number one globally by room count; Orange Hotel surpassed 1,000 hotels.

• Operated 12,137 hotels with 1,184,915 rooms as of June 30, 2025, across 19 countries.

Financial highlights

• Adjusted EBITDA margin improved due to asset-light transformation and cost optimization.

• Net income attributable to shareholders was RMB 1.5 billion, up 44.7% year-over-year.

• M&F gross operating profit rose 23.2% year-over-year to RMB 1.9 billion, with a margin of 66.2%.

• Leased and owned revenue declined 7.6% year-over-year, with gross operating profit down 13.4%.

• Operating cash flow was RMB 2.7 billion; cash and equivalents at RMB 13.7 billion, net cash at RMB 6.2 billion.

Outlook and guidance

• Q3 2025 group revenue expected to grow 2%-6% year-over-year, or 4%-8% excluding DH.

• M&F revenue in Q3 2025 projected to increase 20%-24% year-over-year.

• Full-year RevPAR expected to be slightly below previous guidance due to macro uncertainties and increased supply.

• Committed to achieving previous revenue guidance despite RevPAR headwinds.