Huazhu Group Ltd (HK:1179)
:1179
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Huazhu Group Ltd
(1179)
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Rating:68Neutral
Price Target:
HK$44.00
▲(5.11% Upside)
Action:DowngradedDate:03/20/26
The score is primarily driven by improved profitability and solid cash generation, partially offset by elevated leverage and a sharp slowdown/decline in the latest revenue growth. Technicals and valuation are supportive but not strong enough to fully counterbalance the balance-sheet and growth risks.
Positive Factors
Asset-light franchise network
Huazhu’s mix of franchised/managed hotels and centralized platform fees creates scalable, low-capital revenue. The asset-light model supports higher margin resilience, faster network expansion, and recurring fee streams that compound as system-wide room revenue and loyalty adoption increase over time.
Negative Factors
Elevated leverage
The company remains debt-heavy for a cyclical lodging operator. High leverage increases interest and refinancing risk, reduces financial flexibility for opportunistic investments, and magnifies downside in demand shocks, making earnings and strategy vulnerable during weaker travel cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light franchise network
Huazhu’s mix of franchised/managed hotels and centralized platform fees creates scalable, low-capital revenue. The asset-light model supports higher margin resilience, faster network expansion, and recurring fee streams that compound as system-wide room revenue and loyalty adoption increase over time.
Read all positive factors
Huazhu Group Ltd (1179) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$125.26B
Dividend Yield3.67%
Average Volume (3M)1.53M
Price to Earnings (P/E)20.6
Beta (1Y)1.15
Revenue Growth5.49%
EPS Growth9.44%
CountryHK
Employees28,502
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.46
Shares Outstanding3,069,390,600
10 Day Avg. Volume2,030,676
30 Day Avg. Volume1,532,940
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)7.95
Price to Sales (P/S)4.13
P/FCF Ratio13.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$48.98Price Target Upside17.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)2.04
Revenue Forecast (FY)HK$30.44B
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 Group makes money through a combination of (1) revenue from hotels it operates directly and (2) recurring fees from its franchised/managed hotel network.
1) Directly operated hotels (leased/owned) revenue
- Room revenue: The largest compon...
Huazhu Group Ltd Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
55
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.65B | 23.89B | 21.88B | 13.86B | 12.79B |
| Gross Profit | 9.71B | 9.86B | 7.54B | 1.60B | 1.50B |
| EBITDA | 7.43B | 6.54B | 7.15B | 1.32B | 1.67B |
| Net Income | 4.95B | 3.05B | 4.08B | -1.81B | -420.00M |
Balance Sheet | |||||
| Total Assets | 64.80B | 62.55B | 63.53B | 61.51B | 63.27B |
| Cash, Cash Equivalents and Short-Term Investments | 15.43B | 11.08B | 9.13B | 5.37B | 7.71B |
| Total Debt | 36.08B | 35.45B | 35.88B | 43.89B | 44.16B |
| Total Liabilities | 51.84B | 50.28B | 51.28B | 52.70B | 52.23B |
| Stockholders Equity | 12.81B | 12.18B | 12.13B | 8.73B | 10.94B |
Cash Flow | |||||
| Free Cash Flow | 7.35B | 6.62B | 6.77B | 511.00M | -333.00M |
| Operating Cash Flow | 8.16B | 7.52B | 7.67B | 1.56B | 1.34B |
| Investing Cash Flow | -1.02B | -2.24B | -1.48B | -522.00M | -1.40B |
| Financing Cash Flow | -4.19B | -5.50B | -3.72B | -1.39B | -1.80B |
Huazhu Group Ltd Technical Analysis
Positive
41.86
Price Trends
40.36
Positive
38.56
Positive
33.05
Positive
Market Momentum
-0.12
Negative
57.06
Neutral
78.06
Neutral
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 41.86 is above the 20-day moving average (MA) of 40.23, above the 50-day MA of 40.36, and above the 200-day MA of 33.05, indicating a bullish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 78.06 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$125.26B | 20.57 | 42.78% | 3.67% | 5.49% | 9.44% | |
66 Neutral | HK$1.99B | 31.69 | 0.50% | 3.37% | -22.04% | -90.42% | |
66 Neutral | HK$1.94B | 8.75 | 2.64% | 1.95% | -7.90% | 58.19% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | HK$10.24B | 30.79 | 0.88% | ― | -12.90% | -95.96% | |
55 Neutral | HK$16.29B | 19.30 | 2.12% | 3.05% | -0.04% | -15.56% | |
40 Neutral | HK$476.35M | -0.21 | -29.62% | ― | -0.60% | 34.74% |
* Consumer Cyclical Sector Average
HK:1179
Huazhu Group Ltd
41.86
16.82
67.15%
HK:0045
Hongkong & Shanghai Hotels
6.14
0.89
16.95%
HK:1270
Langham Hospitality Investments
0.56
0.14
33.33%
HK:0069
Shangri-La Asia
4.56
0.45
11.06%
HK:1221
Sino Hotels (Holdings) Ltd.
1.63
0.34
26.75%
HK:0078
Regal Hotels International Holdings Limited
0.53
-0.28
-34.57%
Huazhu Group Ltd Corporate Events
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.