H World reports Q1 EPS $2.08 vs. $2.85 last year

Reports Q1 revenue RMB5.4B, consensus RMB5.54B. As of March 31, 2025, Legacy-Huazhu had 11,564 hotels in operation, including 552 leased and owned hotels, and 11,012 manachised and franchised hotels. CEO Jin Hui commented: “During Q1 of 2025, we continued our rapid network expansion with 694 new hotel openings in China, and on track to achieve our full-year target of approximately 2,300 gross hotel openings. However, we maintain an overall cautious stance amid ongoing tariff and macroeconomic uncertainties. 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 centred around our H Rewards membership program. Regarding our business outside China, our Legacy-DH segment recorded a 12.7% year-over-year blended RevPAR increase in Q1 2025, with a 2.8% increase in ADR and a 5.3 percentage-point increase in occupancy rate. We will continue to enhance our hotel operations, focus on cost reduction and efficiency improvement, and continue developing our asset light portfolio.”