#China #Shanghai #H World Group #HTHT #Deutsche Hospitality

H World Group Reports Impressive Financial Results for 2025

The H World Group Limited (NASDAQ: HTHT), a prominent player in the global hospitality sector, has recently unveiled its financial results for 2025. Celebrating its 20th anniversary this year, the company has solidified its stature with stellar performance driven by a strategic focus on an asset-light growth approach.

Financial Overview

As of December 31, 2025, H World Group operated a remarkable network of 3,565 hotels boasting 404,616 rooms globally. During the fourth quarter, the company's hotel Gross Merchandise Volume (GMV) soared by 18.4% year-on-year to reach ¥28.1 billion. The revenue from managed and franchised hotels surged 21% to ¥3 billion, while adjusted EBITDA climbed to ¥2.2 billion.

For the entirety of 2025, the hotel GMV increased by 16.4% compared to the previous year, totaling ¥108.1 billion. The managed and franchised hotel revenues skyrocketed 23.1% to ¥11.7 billion, and the gross operating profit for managed and franchised hotels rose by 20.8%, reaching ¥7.6 billion. Adjusted EBITDA for 2025 was recorded at ¥8.5 billion, reflecting a 24.2% annual increase.

Growth Descriptive Statements

Jin Hui, CEO of H World Group, commented, "2025 has marked another year of robust network expansion. We opened over 2,400 new hotels, which, together with product enhancements and disciplined revenue management, led to sequential gains in our RevPAR, indicating the underlying resilience and quality of our business."

The strategic emphasis on asset-light operations has significantly contributed to H World’s enhanced operational efficiency and market position. The proportion of new-generation hotels within H World’s prominent limited-service brands is continuously on the rise, signaling consistent improvements in product standardization and brand normalization.

Client Loyalty and Member Engagement

H World’s loyalty program, H Rewards, has seen its member bookings increase by 21.5% compared to last year, culminating in 245 million nights booked. This robust engagement indicates the success of H World Group’s strategy to not only expand its geographical footprint but also deepen customer loyalty.

Revamping Deutsche Hospitality

A remarkable highlight of 2025 was the significant recovery of the Legacy Deutsche Hospitality segment. The adjusted EBITDA for this segment climbed to ¥499 million from a loss of ¥154 million in 2024, showcasing the effectiveness of reorganization initiatives and operational enhancements made throughout the year.

Future Outlook

Looking ahead to 2026, H World Group plans to capitalize on its core strengths by further elevating product standards, enhancing business and revenue management capabilities, and intensifying technology integration across operations. With a robust brand portfolio and an expanded member base, the Group is poised for sustainable growth and long-term value creation in the dynamic hospitality market.

For further insights and details, the complete press release is available on the H World Group investor relations page. Each strategy emphasizes operational efficacy, signaling positive foresight as the Group navigates the evolving landscape of global hospitality.