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Huazhu Group Ltd (HK:1179)
:1179
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Huazhu Group Ltd (1179) AI Stock Analysis

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HK:1179

Huazhu Group Ltd

(1179)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
HK$38.00
▼(-11.91% Downside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by strong financial recovery (profitability and cash generation) but tempered by balance-sheet leverage risk. Technical indicators are notably weak and pull the score down, while valuation is supported by a solid dividend yield and a moderate P/E.
Positive Factors
Diversified business model
Huazhu's multi-brand, mixed-ownership model (leased/owned plus franchising/management and centralized services) creates diversified revenue streams. Recurring fee income scales with network growth, lowering capital intensity and supporting long-term margin stability and resilience.
Negative Factors
Elevated leverage
Leverage around 2.8x equity leaves the balance sheet exposed: equity is modest relative to the asset base. Remaining debt constrains capital allocation, reduces shock absorption and raises refinancing and liquidity risks if lodging demand weakens or rates rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Huazhu's multi-brand, mixed-ownership model (leased/owned plus franchising/management and centralized services) creates diversified revenue streams. Recurring fee income scales with network growth, lowering capital intensity and supporting long-term margin stability and resilience.
Read all positive factors

Huazhu Group Ltd (1179) vs. iShares MSCI Hong Kong ETF (EWH)

Huazhu Group Ltd Business Overview & Revenue Model

Company Description
H World Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel,...
How the Company Makes Money
Huazhu makes money mainly through (1) hotels it leases or owns and operates directly, and (2) a franchising/management model for hotels owned by third parties. For leased/owned and operated hotels, revenue is primarily generated from room sales an...

Huazhu Group Ltd Financial Statement Overview

Summary
Strong turnaround with sharply higher TTM revenue and healthy profitability (~39% gross margin, ~20% net margin), plus solid free cash flow (~90% of net income). Offsetting this is elevated leverage (~2.8x debt-to-equity) and some historical margin volatility, which increases downside risk if demand softens.
Income Statement
86
Very Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue25.76B24.65B23.89B21.88B13.86B12.79B
Gross Profit10.44B9.71B9.86B7.54B1.60B1.50B
EBITDA8.77B7.43B6.54B7.15B1.32B1.67B
Net Income4.98B4.95B3.05B4.08B-1.81B-420.00M
Balance Sheet
Total Assets63.95B64.80B62.55B63.53B61.51B63.27B
Cash, Cash Equivalents and Short-Term Investments15.76B15.43B11.08B9.13B5.37B7.71B
Total Debt35.64B36.08B35.45B35.88B43.89B44.16B
Total Liabilities52.88B51.84B50.28B51.28B52.70B52.23B
Stockholders Equity10.91B12.81B12.18B12.13B8.73B10.94B
Cash Flow
Free Cash Flow7.22B7.35B6.62B6.77B511.00M-333.00M
Operating Cash Flow8.00B8.16B7.52B7.67B1.56B1.34B
Investing Cash Flow-410.50M-1.02B-2.24B-1.48B-522.00M-1.40B
Financing Cash Flow-3.26B-4.19B-5.50B-3.72B-1.39B-1.80B

Huazhu Group Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price43.14
Price Trends
50DMA
40.74
Positive
100DMA
39.10
Positive
200DMA
33.61
Positive
Market Momentum
MACD
0.42
Negative
RSI
61.05
Neutral
STOCH
81.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1179, the sentiment is Positive. The current price of 43.14 is above the 20-day moving average (MA) of 40.59, above the 50-day MA of 40.74, and above the 200-day MA of 33.61, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 81.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1179.

Huazhu Group Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$2.02B2.170.57%3.37%0.33%-77.16%
66
Neutral
HK$1.94B8.752.64%1.95%-2.47%38.92%
64
Neutral
HK$107.19B22.0042.78%3.67%6.03%73.05%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
HK$10.24B4.080.88%-22.47%
52
Neutral
HK$15.86B10.042.12%3.05%2.15%-30.55%
52
Neutral
HK$494.33M-0.43-29.62%51.08%55.72%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1179
Huazhu Group Ltd
35.48
7.86
28.44%
HK:0045
Hongkong & Shanghai Hotels
6.14
0.65
11.84%
HK:1270
Langham Hospitality Investments
0.57
0.10
22.58%
HK:0069
Shangri-La Asia
4.44
0.21
4.91%
HK:1221
Sino Hotels (Holdings) Ltd.
1.62
0.22
15.38%
HK:0078
Regal Hotels International Holdings Limited
0.55
0.09
18.28%

Huazhu Group Ltd Corporate Events

H World Posts Strong Q1 Turnover Growth as China Outperforms, Executive Director Resigns
May 15, 2026
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 grou...
H World Group Sets 2026 AGM to Confirm Auditor and Board Appointments
May 11, 2026
H World Group Limited has called its 2026 annual general meeting for June 26, 2026, in Shanghai, where shareholders will vote on ratifying Deloitte Touche Tohmatsu as auditor for 2026 and authorizing the board to set the auditor’s remunerati...
H World Group Sets May 15 Date to Release Q1 2026 Results and Host Investor Call
May 5, 2026
H World Group Limited has scheduled an audit committee meeting for May 15, 2026, to review and approve its unaudited financial results for the first quarter ended March 31, 2026. The company plans to publish these results on the Hong Kong Stock Ex...
H World Sets May 18, 2026 Record Date for AGM Shareholder Voting
May 4, 2026
H World Group Limited has set May 18, 2026, as the record date for determining which holders of its ordinary shares are eligible to attend and vote at its forthcoming annual general meeting. Share transfer documents and certificates must reach the...
H World Files 2025 Form 20-F, Reinforcing Dual-Market Disclosure
Apr 24, 2026
H World Group Limited has announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission, fulfilling its overseas reporting obligations as a dual-listed compa...
H World Group Declares US$400 Million Dividend and Appoints New CFO
Mar 18, 2026
H World Group Limited has released its unaudited financial results for the fourth quarter and full year ended December 31, 2025, alongside confirming a previously proposed ordinary cash dividend. The board approved a dividend of US$0.130 per ordin...
H World Group Declares USD 0.13 Cash Dividend per Share
Mar 18, 2026
H World Group Limited has declared an ordinary cash dividend of USD 0.13 per share for its equity shareholders. The dividend will be paid in U.S. dollars, with an ex-dividend date set for 29 April 2026, a record date of 4 May 2026, and payment sch...
H World Sets March 18 Date for 2025 Results and Mulls Cash Dividend
Mar 6, 2026
H World Group Limited has scheduled an audit committee meeting for March 18, 2026, to review and approve its unaudited financial results for the fourth quarter and full year ended December 31, 2025. The company plans to publish these results on th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 16, 2026