H World Posts Strong Q1 Turnover Growth as China Outperforms, Executive Director Resigns

An announcement from Huazhu Group Ltd ( (HK:1179) ) is now available.

H World Group Limited, a major multi-brand hotel operator with extensive coverage in mainland China and an expanding international portfolio, reported that it had 13,215 hotels comprising 1,303,563 rooms in operation as of March 31, 2026. The group generates revenue through a mix of leased-and-owned and manachised or franchised hotels, with China remaining its primary earnings driver alongside a smaller but growing overseas segment.

For the first quarter of 2026, H World’s hotel turnover rose 17.4% year-over-year to RMB26.4 billion, with China hotel turnover up 18.0% and international turnover up 9.6%. Revenue increased 11.1% to RMB6.0 billion, driven largely by a 20.3% jump in manachised and franchised revenue, while net income slipped to RMB817 million from RMB894 million a year earlier.

EBITDA (non-GAAP) remained flat year-over-year at RMB1.6 billion, but adjusted EBITDA climbed to RMB1.9 billion from RMB1.5 billion, highlighting improved underlying profitability, especially in the China segment. The H World China unit delivered RMB1.9 billion in adjusted EBITDA versus RMB1.6 billion a year ago, while the international segment posted a narrower loss of RMB56 million, signaling gradual progress but ongoing pressure overseas.

Alongside its results, the company announced that executive director Jie Zheng resigned from the board effective May 15, 2026, representing a leadership change at the group level. The board now consists of Executive Chairman Ji Qi, director Justin Martin Leverenz, and four independent directors, as the company continues to navigate growth in China and a turnaround in its international operations.

The most recent analyst rating on (HK:1179) stock is a Buy with a HK$51.00 price target. To see the full list of analyst forecasts on Huazhu Group Ltd stock, see the HK:1179 Stock Forecast page.

More about Huazhu Group Ltd

H World Group Limited, formerly known as Huazhu Group Limited, is a Cayman Islands–incorporated hotel group operating more than 13,000 hotels and over 1.3 million rooms worldwide. The company runs both leased-and-owned and manachised or franchised hotels, with its business divided between its core China operations under H World China and its international portfolio under H World International.

Average Trading Volume: 2,651,849

Technical Sentiment Signal: Buy

Current Market Cap: HK$109.4B

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