H World Group Limited Announces Third Quarter 2025 Results
H World Group Limited (NASDAQ: HTHT), a leading player in the global hotel industry, unveiled its impressive financial results for the third quarter of 2025. As of the latest update, the company operates a total of 12,702 hotels, translating to approximately 1,246,240 rooms available for guests to enjoy.
Financial Performance Highlights
During this quarter, hotel turnover surged by an impressive 17.5% year-over-year, contributing to a total of RMB30.6 billion. Notably, excluding the Steigenberger Hotels GmbH and its subsidiaries, hotel turnover experienced an even higher increase of 18.4% compared to the previous year. The traditional Legacy-DH segment also performed well, although growth was relatively modest at 7.3% during the same period.
Revenue Insights
Revenue for H World during the third quarter of 2025 climbed to RMB7.0 billion (approximately US$978 million), marking an 8.1% year-over-year increase. This exceeded previous forecasts of a 2% to 6% rise compared to the same quarter in 2024. The revenue from manachised and franchised (M&F) hotels showcased a robust increase of 27.2% year-over-year, amounting to RMB3.3 billion (approximately US$465 million) in Q3 2025, significantly surpassing earlier guidance projections.
Segment Performance
Looking deeper into the performance metrics, the Legacy-Huazhu segment achieved revenue of RMB5.7 billion, reflecting a substantial 10.8% year-over-year growth, and ensured that it outperformed the guidance set of a 4% to 8% increase. In contrast, the Legacy-DH segment reported revenue of RMB1.2 billion, which exhibited a slight decline of 3.0% compared to Q3 of the previous year.
Net Income and Earnings
Net income attributable to H World Group Limited hit RMB1.5 billion (approximately US$206 million) during the third quarter, marking a significant jump from RMB1.3 billion in Q3 2024 and remaining steady compared to the previous quarter. Furthermore, adjusted EBITDA (non-GAAP), which excludes certain one-time expenses, totaled RMB2.5 billion (US$354 million), showcasing growth from RMB2.1 billion in Q3 2024.
Operational Highlights
The company has shown tremendous growth by opening 749 new hotels, totaling over 2,000 new hotel openings so far in 2025. H World is on track to meet its ambitious target of 2,300 gross new hotel openings for the full year. CEO Jin Hui stated, "Our robust network expansion and stable RevPAR year-over-year significantly contributed to reaching revenue well above our guidance."
Future Outlook
Looking ahead, H World projects continued revenue growth between 2% to 6% for Q4 2025, with an even more promising range of 3% to 7% when excluding the DH segment. The company anticipates M&F revenue growth for the next quarter could witness a remarkable increase between 17% to 21% compared to Q4 2024.
Conference Call Details
Following the announcement, H World's management team is set to host a conference call to discuss the results in detail. Interested participants need to pre-register for the call to receive dial-in numbers and details.
About H World Group Limited
Founded in China, H World Group Limited is currently among the industry's leading hotel operators, providing premium accommodation across multiple brands including HanTing Hotel, JI Hotel, Orange Hotel, and others. The company focuses on a diversified portfolio that includes both leased and manachised hotels, gearing towards consistent growth in the global hospitality sector.
Frequently Asked Questions
What were the key highlights of H World Group's financial results?
The company reported an increase in hotel turnover, revenue, and net income, achieving several yearly over-year increases, including an 8.1% rise in revenue for Q3 2025.
How many hotels does H World Group operate?
As of September 30, 2025, H World Group operates a total of 12,702 hotels worldwide.
What is the projected revenue growth for H World Group in Q4 2025?
H World Group anticipates revenue growth between 2% to 6% in Q4 2025, with 3% to 7% growth expected when excluding the Legacy-DH segment.
How has the occupancy rate changed for H World Group?
Occupancy rates saw variations by segment, with some segments indicating an increase while others reported slight decreases.
What is the future outlook for H World Group's growth?
The company is optimistic about revenue growth and network expansion, with plans for significant increases in hotel openings as well as enhancing its operational efficiency.
