H World Group (HTHT) Q4 2025 earnings summary

Executive summary

• Achieved strong business results in 2025, with high-quality network expansion, profitability, and brand building across China and international operations, operating 12,858 hotels with 1,264,419 rooms globally as of December 31, 2025.

• Asset-light, managed and franchised (M&F) business model delivered robust revenue and profit growth, with M&F revenue up 23.1% year-over-year to RMB 11.7 billion and adjusted EBITDA up 24.2% to RMB 8.5 billion.

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

• Legacy-DH business achieved a successful turnaround, with record adjusted EBITDA and improved profitability through restructuring and cost optimization.

• 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 RMB 25.3 billion, at the high end of guidance.

• Adjusted EBITDA increased 24.2% year-over-year to RMB 8.5 billion, with margin up 4.9 percentage points to 33.5%.

• Adjusted net income rose 32.9% year-over-year to RMB 4.9 billion.

• Operating cash flow reached RMB 8.4 billion; cash and equivalents at year-end were RMB 15.4 billion, with net cash of RMB 9.6 billion.

• Declared $400 million cash dividend for H2 2025; total shareholder return for 2025 was $760 million, including $650 million in dividends and $110 million in share repurchases.

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.

• Committed to ongoing shareholder returns through dividends and share repurchases.