H World Group (HTHT) investor relations material

Executive summary

• Achieved strong revenue and profit growth in Q2 2026, with hotel GMV up 13.2% and revenue up 10.8% year-over-year, driven by China business and asset-light expansion.

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

• Maintained global leadership in economy and midscale hotel segments, with flagship brands HanTing and JI Hotel ranked top worldwide.

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

• Advanced social responsibility initiatives, including employment, energy saving, and public welfare programs.

Financial highlights

• Q2 2026 group revenue rose 10.8% year-over-year to RMB7.1 billion, with China revenue up 14.9% and international revenue down 5.8%.

• Adjusted EBITDA grew 20% year-over-year to RMB2.7 billion, with margin up to 38.3%.

• Adjusted net income rose 26.9% year-over-year to RMB1.7 billion; net income attributable to shareholders was RMB1.6 billion.

• Managed and franchise (M&F) revenue up 25.2% year-over-year to RMB3.6 billion; M&F gross operating profit up 18.5%.

• Operating margin improved to 31.1% from 27.8% year-over-year.

Outlook and guidance

• Full-year 2026 revenue growth guidance raised to 4%-8%, with HWC segment expected to grow 7%-11% and M&F revenue 16%-20%.

• Maintains full-year RevPAR outlook and hotel opening guidance, focusing on high-quality growth.

• Expects continued EBITDA margin expansion as asset-light strategy progresses.

• International business aims for positive profit for the full year, despite Middle East challenges.