H World Group Limited (HTHT)
NASDAQ:HTHT
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H World Group
(NASDAQ:HTHT)
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Rating:66Neutral
Price Target:
$48.00
â–¼(-13.78% Downside)
Action:Downgraded
Date:06/14/26
Overall score is driven by strong profitability and solid cash generation, tempered by meaningful balance-sheet leverage risk. Technicals are the main drag due to weak trend signals (below key moving averages and negative MACD), while valuation is supportive given a reasonable P/E and strong dividend yield.
Positive Factors
High operating margins
Sustained high gross and operating margins indicate durable pricing power and efficient operations across brand tiers. That margin base supports cash generation and reinvestment into brand, tech and loyalty, insulating core profitability through normal demand cycles.
Negative Factors
Elevated leverage
High absolute leverage materially raises financial risk and interest exposure, reducing flexibility to invest or weather downturns. Even with improving ratios, the large debt stock amplifies earnings volatility and constrains strategic options over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High operating margins
Sustained high gross and operating margins indicate durable pricing power and efficient operations across brand tiers. That margin base supports cash generation and reinvestment into brand, tech and loyalty, insulating core profitability through normal demand cycles.
Read all positive factors
H World Group (HTHT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.39B
Dividend Yield3.6%
Average Volume (3M)2.28M
Price to Earnings (P/E)19.0
Beta (1Y)0.45
Revenue Growth9.63%
EPS Growth59.04%
CountryUS
Employees28,502
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)16.20
Shares Outstanding309,832,370
10 Day Avg. Volume2,960,452
30 Day Avg. Volume2,282,127
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)7.89
Price to Sales (P/S)4.10
P/FCF Ratio13.77
Enterprise Value/Market Cap8.69
Enterprise Value/Revenue4.51
Enterprise Value/Gross Profit11.13
Enterprise Value/Ebitda13.19
Forecast
1Y Price Target
$60.25Price Target Upside8.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)17.77
Revenue Forecast (FY)$26.92B
H World Group Business Overview & Revenue Model
Company Description
H World Group Limited, through its various subsidiaries, is actively engaged in the development and management of hotels primarily within the People's Republic of China. Its extensive operations cover a range of models, including leased, owned, ma...
How the Company Makes Money
H World Group primarily generates revenue from (1) hotel operations from leased-and-owned hotels and (2) fees from franchised and managed hotels.
1) Leased-and-owned hotel revenue (operational model):
- Under the leased-and-owned model, H World l...
H World Group Earnings Call Summary
Earnings Call Date:Mar 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a predominantly positive operational and financial picture: solid revenue and strong profit growth, robust cash generation, successful turnaround of the acquired Legacy-DH business, rapid network expansion, and meaningful shareholder returns. Noted headwinds include flat ADR for the year, earlier RevPAR weakness (only improving in Q4), industry oversupply of low-quality rooms, planned closures and lease renegotiations, and cautious 2026 revenue guidance. Overall, the positives—particularly large margin and net income improvements, the DH turnaround, and strong asset-light growth—outweigh the challenges.Positive Updates
Group Revenue Growth
Group revenue grew 5.9% year-over-year to RMB 25.3 billion for full-year 2025, driven by Legacy-Huazhu revenue growth of 7.9% to RMB 20.5 billion.
Negative Updates
Flat ADR and Prior RevPAR Weakness
Full-year 2025 ADR remained largely flat year-over-year; positive year-over-year RevPAR was achieved only in Q4 (first positive since Q2 2024), indicating earlier weakness in the year.
Read all updates
Q4-2025 Updates
Positive
Negative
Group Revenue Growth
Group revenue grew 5.9% year-over-year to RMB 25.3 billion for full-year 2025, driven by Legacy-Huazhu revenue growth of 7.9% to RMB 20.5 billion.
Read all positive updates
Company Guidance
Management guided 2026 Group revenue to grow 2%–6% year‑over‑year (5%–9% excluding Deutsche Hospitality), with full‑year RevPAR targeted to be flat to slightly up; asset‑light manachised & franchise revenue is expected to rise 12%–16% y/y. They plan to open 2,200–2,300 hotels and close 600–700 hotels in 2026 (implying roughly 12% y/y hotel‑network growth), reiterated the longer‑term strategic goal of 2,000 cities/20,000 hotels, and indicated Legacy‑DH should remain profitable as integration synergies are realized.H World Group Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
58
Neutral
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.78B | 24.62B | 23.89B | 21.88B | 13.86B | 12.79B |
| Gross Profit | 10.45B | 9.70B | 9.86B | 7.54B | 1.60B | 1.50B |
| EBITDA | 8.82B | 8.56B | 6.46B | 7.15B | 259.00M | 1.50B |
| Net Income | 4.98B | 4.94B | 3.05B | 4.08B | -1.81B | -465.00M |
Balance Sheet | ||||||
| Total Assets | 63.92B | 64.82B | 62.55B | 63.53B | 61.51B | 63.27B |
| Cash, Cash Equivalents and Short-Term Investments | 15.75B | 15.44B | 11.08B | 9.13B | 5.37B | 7.71B |
| Total Debt | 35.63B | 36.09B | 35.45B | 35.88B | 43.89B | 44.16B |
| Total Liabilities | 52.86B | 51.85B | 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 | 7.17B | 7.34B | 6.73B | 6.77B | 511.00M | -333.00M |
| Operating Cash Flow | 7.94B | 8.15B | 7.62B | 7.67B | 1.56B | 1.34B |
| Investing Cash Flow | -417.19M | -1.01B | -2.27B | -1.48B | -522.00M | -1.40B |
| Financing Cash Flow | -3.24B | -4.19B | -5.58B | -3.72B | -1.39B | -1.80B |
H World Group Technical Analysis
Neutral
55.67
Price Trends
48.11
Negative
49.11
Negative
45.30
Negative
Market Momentum
-0.94
Negative
43.43
Neutral
61.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTHT, the sentiment is Neutral. The current price of 55.67 is above the 20-day moving average (MA) of 44.91, above the 50-day MA of 48.11, and above the 200-day MA of 45.30, indicating a bearish trend. The MACD of -0.94 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HTHT.
H World Group Risk Analysis
H World Group disclosed 55 risk factors in its most recent earnings report. H World Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
H World Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $23.82B | 39.90 | -23.50% | 1.21% | 5.59% | 26.44% | |
66 Neutral | $13.39B | 18.95 | 41.70% | 3.60% | 9.63% | 59.04% | |
66 Neutral | $104.66B | 41.83 | -74.11% | 0.84% | 4.69% | 8.46% | |
64 Neutral | $77.82B | 51.38 | -29.63% | 0.21% | 8.72% | 3.05% | |
62 Neutral | $18.63B | -554.10 | -1.00% | 0.36% | 7.74% | -104.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $5.80B | 31.02 | 37.33% | 2.13% | 1.41% | -40.51% |
* Consumer Cyclical Sector Average
HTHT
H World Group
44.66
12.20
37.58%
H
Hyatt Hotels
199.36
65.19
48.59%
IHG
Intercontinental Hotels Group
167.12
54.82
48.82%
MAR
Marriott International
402.54
146.89
57.46%
HLT
Hilton Worldwide Holdings
345.95
99.11
40.15%
WH
Wyndham Hotels & Resorts
79.39
0.76
0.96%
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.