H World Group (HTHT) investor relations material

Executive summary

• Achieved strong year-over-year growth in hotel GMV (+13.2%), revenue (+10.8%), and adjusted EBITDA (+20.0%) for Q2 2026, driven by China business and asset-light expansion.

• Expanded hotel network to 1,335,445 rooms across 13,539 hotels as of June 30, 2026, with significant growth in both China and international segments.

• Maintained leadership in economy and midscale hotel segments, with flagship brands JI Hotel and Hanting Hotel ranked top two globally.

• Membership program and direct sales remain core competitive advantages, with member bookings and base growing steadily to 66 million.

• Social responsibility initiatives advanced, including employment, energy saving, and public welfare programs.

Financial highlights

• Q2 2026 revenue reached RMB 7.1 billion, up 10.8% year-over-year; adjusted EBITDA grew 20% to RMB 2.7 billion; adjusted net income rose 26.9% to RMB 1.7 billion.

• China revenue increased 14.9% year-over-year to RMB 5.9 billion; international revenue declined 5.8% to RMB 1.3 billion.

• Managed and franchise revenue up 25.2% year-over-year to RMB 3.6 billion; gross operating profit up 18.5% to RMB 2.2 billion.

• Operating margin improved to 31.1% from 27.8% year-over-year; net income margin reached 22.2%.

• Cash and cash equivalents stood at RMB 14.2 billion as of June 30, 2026; net cash balance was RMB 10.2 billion.

Outlook and guidance

• Raised 2026 revenue growth guidance to 4%-8%; HWC revenue growth expected at 7%-11%; M&F revenue growth at 16%-20%.

• Maintains full-year 2026 RevPAR outlook and hotel opening guidance despite macro uncertainties.

• EBITDA margin expected to expand mid-to-long term as asset-light strategy advances.

• International business aims for positive profit for the full year, with cost controls mitigating Middle East impact.