#China #Shanghai #H World Group #Hotel Industry #Asset-light Growth

H World Group Showcases Robust Financial Performance for 2025

H World Group Limited, one of the foremost hotel management companies globally, reported impressive financial results for the fourth quarter and the fiscal year ending December 31, 2025. The company attributes its success to a concerted effort in expanding its asset-light model, enhancing operational efficiencies, and bolstering customer loyalty.

The past year celebrated a milestone for H World as it marked the 20th anniversary of its operations, achieving a remarkable network expansion with over 2,400 newly opened hotels. Jin Hui, the CEO of H World Group, noted, “In 2025, we witnessed substantial growth in RevPAR (Revenue Per Available Room), driven by disciplined revenue management and product enhancements. This added momentum in the fourth quarter illustrates the resilience and quality of our business.”

Asset-Light Strategy Fuels Quality Growth

The results from H World reveal a significant increase in performance, largely due to progress with its strategic focus on asset-light operations and improvements in operational efficiencies. In the fourth quarter alone, the Gross Merchandise Value (GMV) generated from hotel operations rose by 18.4% year-on-year, reaching 28.1 billion RMB. Revenue from its Management and Franchise (MF) segment surged by 21.0% to 3.0 billion RMB, while the adjusted EBITDA for the quarter reached an impressive 2.2 billion RMB.

For the full year of 2025, the GMV of hotel operations increased by 16.4%, totalling 108.1 billion RMB, with the MF revenue rising by 23.1% to hit 11.7 billion RMB. The gross operating profit from the MF segment saw a 20.8% increase to 7.6 billion RMB, thus further contributing to the overall profits and underscoring the effectiveness of the company’s transition to an asset-light model. The adjusted EBITDA for 2025 stood at 8.5 billion RMB, signifying a 24.2% jump from the previous year.

Network Expansion Enhances Market Leadership

As part of its strategy to focus on high-quality growth, H World has significantly expanded its hotel network, deepening its market presence and enhancing the competitiveness of its key brands. The proportion of hotels under its core brands, including Hanting Hotel, JI Hotel, and Orange Hotel, rose notably. By the end of December 2025, the group operated 12,858 hotels, offering over 1.26 million rooms. This marked a 16.2% increase in room capacity compared to the previous year.

The company's loyalty program, H Rewards, also showed remarkable traction, with member bookings increasing by 21.5%, totaling 245 million nights.

Remarkable Recovery of Deutsche Hospitality Segment

H World made substantial strides in optimizing the performance of its legacy business segment, Deutsche Hospitality (DH). For 2025, the adjusted EBITDA of the legacy DH segment was reported at 499 million RMB, contrasting a significant turnaround from a loss of 154 million RMB in 2024. This improvement reflects the effectiveness of the restructuring and operational enhancement initiatives launched in the previous fiscal year.

Looking ahead to 2026, H World aims to build on its core strengths, enhance product standards, and develop its commercial and revenue-generating capabilities while integrating technology across all facets of the business. With a strong brand portfolio, an expanding membership base, extensive operational expertise, and a vast partner network, the company is well-positioned for sustainable growth and long-term value creation.

For further details, visit the H World Group website.