H World Group (HTHT) Q1 2026 earnings summary

Executive summary

• Achieved strong business results in Q1 2026, with hotel GMV up 17.4% year-over-year to RMB26.4 billion and rooms in operation increasing 14.1% to 1,303,563 globally, driven by network expansion, brand building, and asset-light strategy.

• Operated 13,215 hotels worldwide as of March 31, 2026, with 13,095 in China and 120 internationally; opened 537 new hotels in China and closed 177 in Q1 2026.

• Continued to strengthen membership ecosystem, direct sales, and digitalization to support sustainable long-term growth.

Financial highlights

• Total revenue increased 11.1% year-over-year to RMB6.0 billion in Q1 2026.

• Adjusted EBITDA rose 24.2% year-over-year to RMB1.9 billion, with margin expanding to 31.0%.

• Adjusted net income grew 38.6% year-over-year to RMB1,297 million, margin improved to 17.9%.

• Operating cash flow was RMB233 million; cash and equivalents at quarter-end ranged from RMB12.4 billion to RMB15.8 billion, with net cash position up to RMB9.6 billion.

• M&F business revenue up 20.3% year-over-year to RMB3.0 billion; gross operating profit up 20.7% to RMB1.9 billion.

Outlook and guidance

• Maintains full-year 2026 RevPAR guidance of a slight increase, with stable leisure travel demand and no significant impact from rising energy costs.

• On track to meet full-year gross opening target of 2,200–2,300 hotels, with healthy signing pace and focus on high-quality growth.

• Cautiously optimistic on occupancy rate outlook due to rationalizing industry supply.

• Continued focus on expanding the hotel network, especially in the upper-midscale segment and APAC region.