H World Group (HTHT) Q3 2025 earnings summary

Executive summary

• Achieved strong year-over-year growth in revenue, adjusted EBITDA, and hotel network expansion, with robust performance in both economy and upper-midscale segments.

• Operated 12,702 hotels with 1,246,240 rooms globally as of September 30, 2025, including 122 hotels from the Legacy-DH segment.

• Membership base surpassed 301 million, with member room nights accounting for 74% of total and bookings up 19.7% year-over-year, reflecting industry-leading loyalty and direct sales capabilities.

• Launched new upper-midscale brand Ji Icons, further enriching the brand portfolio and targeting evolving consumer preferences for quality and oriental aesthetics.

• Focused on asset-light expansion, with 93% of rooms under manachise and franchise models.

Financial highlights

• Group revenue grew 8.1% year-over-year to RMB 7 billion in Q3 2025, exceeding guidance.

• Adjusted EBITDA rose 18.9% year-over-year to RMB 2.5 billion, with margin up 3.3 percentage points to 36.1%.

• Net income attributable to shareholders was RMB 1.5 billion, up 15.4% year-over-year.

• Monetized and franchised (M&F) revenue increased 27.2% year-over-year to RMB 3.3 billion; M&F gross operating profit up 28.6% to RMB 2.2 billion, contributing 70% of total group gross operating profit.

• Operating cash flow reached RMB 1.7 billion; cash and equivalents at quarter-end were RMB 13.3 billion, with net cash of RMB 6.6 billion.

Outlook and guidance

• Q4 2025 group revenue expected to grow 2%-6% year-over-year (3%-7% excluding DH); M&F revenue projected to rise 17%-21%.

• RevPAR for Q4 anticipated to be flat to slightly positive year-over-year, with leisure demand offsetting weaker business demand.

• Management will provide further 2026 outlook after Q4, citing ongoing macro uncertainties.