H World Group Limited Reports Q1 2025 Financial Results

H World Group Limited ( (HTHT) ) has released its Q1 earnings. Here is a breakdown of the information H World Group Limited presented to its investors.

H World Group Limited, a significant player in the global hotel industry, operates a diverse portfolio of hotel brands across 19 countries, offering services through leased, owned, manachised, and franchised models. The company recently released its unaudited financial results for the first quarter of 2025, showcasing its performance and strategic direction.

In the first quarter of 2025, H World Group reported a revenue increase of 2.2% year-over-year, reaching RMB5.4 billion. The company’s net income rose significantly by 35.7% year-over-year to RMB894 million. The growth was primarily driven by the expansion of its hotel network, particularly in the Legacy-Huazhu segment, which saw a 5.5% increase in revenue. However, the Legacy-DH segment experienced an 11.3% decline in revenue compared to the previous year.

The company’s EBITDA for the quarter stood at RMB1.6 billion, marking a notable improvement from the previous year. H World Group’s asset-light strategy has been a focal point, with a significant portion of its revenue now coming from manachised and franchised hotels, which saw a 21.1% year-over-year increase. The company opened 694 new hotels in China during the quarter, aligning with its goal of approximately 2,300 new hotel openings for the year.

Despite the positive financial performance, H World Group remains cautious due to ongoing macroeconomic uncertainties. The company plans to continue its focus on high-quality network expansion and enhancing brand positioning. For the second quarter of 2025, H World forecasts revenue growth between 1% and 5%, with a stronger emphasis on its manachised and franchised business.

Looking ahead, H World Group aims to sustain its growth trajectory by leveraging its extensive hotel network and asset-light strategy. The management is committed to enhancing operational efficiency and expanding its market presence, particularly in the manachised and franchised segments, to drive long-term value for shareholders.