Overview

• H World Q3 revenue grows 8.1% yr/yr, surpassing high-end of company guidance

• Net income for Q3 rises 15.4% yr/yr, supported by Legacy-Huazhu growth

• M&F revenue increases 27.2% yr/yr, driven by hotel network expansion

Outlook

• H World expects Q4 2025 revenue growth of 2%-6% compared to Q4 2024

• H World anticipates 3%-7% revenue growth excluding DH for Q4 2025

• Company forecasts Q4 manachised and franchise property (M&F) revenue growth of 17%-21%

Result Drivers

• M&F GROWTH - M&F revenue increased 27.2% yr/yr, driven by hotel network expansion

• ASSET-LIGHT STRATEGY - Co's asset-light strategy contributed to higher revenue and operating profit growth

• OCCUPANCY RATE INCREASE - Legacy-DH segment's occupancy rate increased 4.6 percentage points, boosting RevPAR

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for H World Group Ltd is $46.70, about 6.2% above its November 14 closing price of $43.80

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX8YVdLC

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)