#China #Shanghai #hospitality #Hotels #H World Group

H World Group Continues Expansion and Upgrades in 2025

H World Group Limited, a prominent player in the global hospitality industry, has kicked off 2025 on a strong note, experiencing robust growth and expansion across its hotel network. According to the company's recently released first-quarter results, the group opened a remarkable 538 net hotels, increasing its total to an impressive 11,685 properties worldwide. This expansion has propelled their cumulative room count to 1,142,158, reflecting a significant 20% year-over-year growth.

Expanding Reach to New Markets

The scope of H World Group's operations now spans 1,394 cities throughout China, with ambitions to cover 2,000 cities in the near future, including underserved areas and major hubs. As part of its growth strategy, the group also has a pipeline of 2,888 hotels in various stages of development, showcasing its commitment to increasing its market presence and service reach.

Adoption of an Asset-Light Model

In tandem with its expansive growth, H World continues to adeptly navigate its asset-light transformation. The company's revenue from manachised and franchised hotels has surged by 21% compared to the previous year, reaching RMB 2.5 billion (approximately US$344 million). The innovative manachise model combines the advantages of franchising with management control, enabling efficient growth while maintaining brand consistency.

Loyalty Programs Drive Direct Booking

As part of its strategy to enhance customer experience, H World has significantly boosted its loyalty program, H Rewards. With membership soaring to 277 million, this program has become one of the largest in the global hospitality sector. Notably, direct bookings generated through H Rewards accounted for over 65% of total reservations in Q1, marking a 5.4 percentage point increase from the previous year. This uptick reflects the growing digital engagement and customer loyalty that H World has cultivated through tailored services and promotions.

Continuous Upgrades in Consumer Experience

H World is also committed to constantly improving the consumer experience, which is evident across its key brands such as Hanting, JI, and Orange. By the end of Q1, 40% of Hanting Hotels had upgraded to version 3.5 or higher, while 78% of Ji Hotels achieved the Ji 4.0+ standard, and 70% of Orange Hotels met the Orange 2.0 benchmark. Additionally, growth has been notably swift in the upper-midscale segment, with brands like Intercity Hotel and Crystal Orange Hotel experiencing a 36% increase in operational hotels and a 22% rise in development pipeline.

Outlook for 2025

Looking ahead, CEO Jin Hui expressed confidence in reaching their ambitious full-year target of about 2,300 gross hotel openings. He stated, "To achieve sustainable long-term growth, we will continue advancing our asset-light strategy, focusing on high-quality network expansion, enhancing brand positioning and service excellence, and strengthening sales capabilities centered around our H Rewards membership program."

In summary, H World Group Limited is not only expanding its footprint within the hospitality sector but is also enhancing its brand portfolio and customer loyalty initiatives. As it continues to innovate and grow, H World is positioning itself as a leader in the competitive landscape of global hospitality.