H World Group Limited (HTHT)
NASDAQ:HTHT
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H World Group
(NASDAQ:HTHT)
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Rating:65Neutral
Price Target:
$60.00
â–²(7.78% Upside)
Action:ReiteratedDate:03/31/26
The score is driven primarily by solid underlying financial performance (strong margins and cash generation) and a positive earnings-call outlook emphasizing profit growth, asset-light momentum, and shareholder returns. These strengths are tempered by balance-sheet leverage and a weak 2025 revenue growth signal, while technical indicators show currently weak momentum. Valuation is moderately supportive given the dividend yield and mid-range P/E.
Positive Factors
Asset-light franchise & management growth
Rapid expansion of the manachised & franchise mix increases fee-based, low-capex revenue, structurally raising margins and lowering capital intensity. Over 2–6 months this supports more predictable cash flow, scalability of profits, and resilience versus owned-asset cyclicality.
Negative Factors
Elevated balance-sheet leverage
Leverage at ~2.8–3.0x equity constrains financial flexibility in a cyclical lodging sector, raising refinancing and covenant risk. Even with good cash flow, elevated debt limits capacity for opportunistic M&A, aggressive buybacks, or rapid deleveraging if demand softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light franchise & management growth
Rapid expansion of the manachised & franchise mix increases fee-based, low-capex revenue, structurally raising margins and lowering capital intensity. Over 2–6 months this supports more predictable cash flow, scalability of profits, and resilience versus owned-asset cyclicality.
Read all positive factors
H World Group (HTHT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.42B
Dividend Yield3.6%
Average Volume (3M)1.82M
Price to Earnings (P/E)20.4
Beta (1Y)0.49
Revenue Growth6.11%
EPS Growth73.30%
CountryUS
Employees28,502
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.59
Shares Outstanding309,832,370
10 Day Avg. Volume2,244,943
30 Day Avg. Volume1,817,747
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 Cap8.63
Enterprise Value/Revenue5.28
Enterprise Value/Gross Profit13.40
Enterprise Value/Ebitda15.35
Forecast
1Y Price Target
$60.68Price Target Upside9.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)17.8
Revenue Forecast (FY)$26.75B
H World Group 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
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:May 26, 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
72
Positive
Balance Sheet
45
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.62B | 23.89B | 21.88B | 13.86B | 12.79B |
| Gross Profit | 9.70B | 9.86B | 7.54B | 1.60B | 1.50B |
| EBITDA | 7.42B | 6.46B | 7.15B | 259.00M | 1.50B |
| Net Income | 4.94B | 3.05B | 4.08B | -1.81B | -465.00M |
Balance Sheet | |||||
| Total Assets | 64.82B | 62.55B | 63.53B | 61.51B | 63.27B |
| Cash, Cash Equivalents and Short-Term Investments | 15.44B | 11.08B | 9.13B | 5.37B | 7.71B |
| Total Debt | 36.09B | 35.45B | 35.88B | 43.89B | 44.16B |
| Total Liabilities | 51.85B | 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 | 7.34B | 6.73B | 6.77B | 511.00M | -333.00M |
| Operating Cash Flow | 8.15B | 7.62B | 7.67B | 1.56B | 1.34B |
| Investing Cash Flow | -1.01B | -2.27B | -1.48B | -522.00M | -1.40B |
| Financing Cash Flow | -4.19B | -5.58B | -3.72B | -1.39B | -1.80B |
H World Group Technical Analysis
Positive
55.67
Price Trends
52.31
Positive
50.28
Positive
43.39
Positive
Market Momentum
0.83
Negative
65.68
Neutral
84.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTHT, the sentiment is Positive. The current price of 55.67 is above the 20-day moving average (MA) of 51.73, above the 50-day MA of 52.31, and above the 200-day MA of 43.39, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 65.68 is Neutral, neither overbought nor oversold. The STOCH value of 84.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $21.62B | 28.95 | -23.50% | 1.21% | 5.59% | 26.44% | |
71 Outperform | $72.53B | 45.22 | -29.63% | 0.21% | 8.72% | 3.05% | |
68 Neutral | $94.04B | 46.80 | -79.90% | 0.84% | 4.33% | 14.02% | |
65 Neutral | $15.42B | 20.45 | 42.78% | 3.60% | 6.11% | 73.30% | |
63 Neutral | $15.41B | 89.40 | -1.50% | 0.36% | 7.74% | -104.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $6.07B | 25.10 | 37.33% | 2.13% | 1.41% | -40.51% |
* Consumer Cyclical Sector Average
HTHT
H World Group
50.92
15.50
43.75%
H
Hyatt Hotels
163.73
42.02
34.52%
IHG
Intercontinental Hotels Group
142.94
30.41
27.03%
MAR
Marriott International
354.97
110.02
44.91%
HLT
Hilton Worldwide Holdings
318.61
80.17
33.62%
WH
Wyndham Hotels & Resorts
80.84
-1.55
-1.88%
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.