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Huazhu Group Ltd
(1179)
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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)
Market Cap
HK$101.39B
Dividend Yield3.67%
Average Volume (3M)1.53M
Price to Earnings (P/E)4.8
Beta (1Y)1.11
Revenue Growth9.78%
EPS Growth59.15%
CountryHK
Employees28,502
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)5.98
Shares Outstanding3,098,323,700
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)4.02
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$48.31Price Target Upside11.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)2.05
Revenue Forecast (FY)HK$30.98B
Huazhu Group Ltd Business Overview & Revenue Model
Company Description
H World Group Limited, a prominent hospitality enterprise, focuses on the development and operation of hotels across the People's Republic of China. The company employs diverse business models, including leased and owned properties, manachised est...
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
Income Statement
86
Very Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.81B | 25.31B | 23.89B | 21.88B | 13.86B | 12.79B |
| Gross Profit | 10.44B | 9.97B | 9.86B | 7.54B | 1.60B | 1.50B |
| EBITDA | 8.77B | 8.08B | 6.54B | 7.15B | 1.32B | 1.67B |
| Net Income | 4.99B | 5.08B | 3.05B | 4.08B | -1.81B | -420.00M |
Balance Sheet | ||||||
| Total Assets | 63.95B | 64.80B | 62.55B | 63.53B | 61.51B | 63.27B |
| Cash, Cash Equivalents and Short-Term Investments | 15.76B | 15.43B | 11.08B | 9.13B | 5.37B | 7.71B |
| Total Debt | 35.64B | 36.08B | 35.45B | 35.88B | 43.89B | 44.16B |
| Total Liabilities | 52.88B | 51.84B | 50.28B | 51.28B | 52.70B | 52.23B |
| Stockholders Equity | 10.91B | 12.81B | 12.18B | 12.13B | 8.73B | 10.94B |
Cash Flow | ||||||
| Free Cash Flow | 7.22B | 7.35B | 6.62B | 6.77B | 511.00M | -333.00M |
| Operating Cash Flow | 8.00B | 8.16B | 7.52B | 7.67B | 1.56B | 1.34B |
| 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
Negative
43.14
Price Trends
35.91
Negative
37.84
Negative
35.49
Negative
Market Momentum
-0.78
Negative
45.12
Neutral
54.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1179, the sentiment is Negative. The current price of 43.14 is above the 20-day moving average (MA) of 33.85, above the 50-day MA of 35.91, and above the 200-day MA of 35.49, indicating a bearish trend. The MACD of -0.78 indicates Negative momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 54.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$1.67B | 29.30 | 0.57% | 3.37% | 0.33% | -77.16% | |
66 Neutral | HK$1.96B | 16.18 | 2.64% | 1.95% | -2.47% | 38.92% | |
64 Neutral | HK$101.39B | 4.82 | 41.76% | 3.67% | 9.78% | 59.15% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | HK$8.90B | 26.45 | 0.89% | ― | -22.47% | ― | |
52 Neutral | HK$14.28B | 16.14 | 2.12% | 3.05% | 2.15% | -30.55% | |
41 Neutral | HK$350.53M | -0.27 | -29.62% | ― | 51.08% | 55.72% |
* Consumer Cyclical Sector Average
HK:1179
Huazhu Group Ltd
33.56
8.60
34.48%
HK:0045
Hongkong & Shanghai Hotels
5.34
-0.23
-4.13%
HK:1270
Langham Hospitality Investments
0.47
-0.08
-14.08%
HK:0069
Shangri-La Asia
3.99
-0.38
-8.80%
HK:1221
Sino Hotels (Holdings) Ltd.
1.64
0.26
19.27%
HK:0078
Regal Hotels International Holdings Limited
0.39
-0.26
-40.00%
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.