H World Group Limited Reports Strong Revenue Growth

H World Group Limited ( (HTHT) ) has released its Q4 earnings. Here is a breakdown of the information H World Group Limited presented to its investors.

H World Group Limited is a prominent player in the global hotel industry, operating a vast network of hotels under various brands across 19 countries. The company employs a mix of leased, owned, manachised, and franchised models to manage its properties.

In its latest earnings report, H World Group Limited announced a 7.8% year-over-year increase in revenue for the fourth quarter of 2024, reaching RMB6.0 billion, surpassing its revenue guidance. For the full year, revenue rose by 9.2% to RMB23.9 billion. Despite the revenue growth, the net income for the fourth quarter saw a significant decline to RMB49 million, primarily due to foreign exchange losses and increased withholding tax.

The company’s Legacy-Huazhu segment showed robust performance with a 9.2% revenue increase in the fourth quarter, while the Legacy-DH segment experienced a more modest growth of 2.9%. However, the Legacy-DH segment faced challenges, including a substantial impairment loss, resulting in a widened operating loss. The company’s adjusted EBITDA for the full year was RMB6.8 billion, reflecting a year-over-year increase, driven by strong performance in the Legacy-Huazhu segment.

Looking ahead, H World Group Limited plans to continue its asset-light strategy, focusing on expanding its manachised and franchised business. The company expects revenue growth in the range of 2%-6% for 2025, with a significant contribution from its manachised and franchised operations. The company also aims to open around 2,300 hotels while closing approximately 600, reflecting its strategic focus on high-quality network growth.