H World Group (HTHT) Q2 2025 earnings summary

Executive summary

• Achieved 18.3% year-over-year increase in rooms in operation to 1,184,915, with hotel GMV up 15% to RMB 26.9 billion.

• H Rewards membership base grew 17.5% year-over-year to nearly 290 million, with direct bookings through CRS rising to 65.1%.

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

• Focused on high-quality growth, prime locations, and deepening presence in lower-tier cities and upper-midscale segments.

• Opened 595 hotels and closed 143 in Q2 2025; pipeline includes 2,947 unopened hotels.

Financial highlights

• Group revenue grew 4.5% year-over-year to RMB 6.4 billion, near the high end of guidance.

• Adjusted EBITDA rose 11.3% year-over-year to RMB 2.3 billion; adjusted net income up 7.6% to RMB 1.35 billion.

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

• M&F revenue up 22.8% year-over-year to RMB 2.9 billion; M&F gross operating profit up 23.2% to RMB 1.9 billion.

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

• Declared $250 million interim cash dividend and $62 million share buyback.

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 expected to grow 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.