H World Group Reports Q1 Operating Profit of RMB 15 Billion, Up 37.5% Year-on-Year

Stock News
05/15

H World Group-S (01179) announced its financial results for the first quarter of 2026. Revenue reached approximately RMB 60 billion, representing an 11.14% increase compared to the same period last year. Operating profit amounted to RMB 15 billion, marking a 37.5% year-on-year growth. Net profit attributable to H World Group Limited was RMB 8.17 billion, with earnings per share of RMB 0.27. Operating cash inflow was RMB 2.33 billion, investing cash inflow was RMB 14 billion, and financing cash inflow was RMB 4.16 billion.

The company stated that the growth in operating profit was primarily driven by a 31.8% year-on-year increase in HWC (H World China) and a 12.1% year-on-year increase in HWI (H World International). Jin Hui, CEO of H World Group, commented, "In the first quarter of 2026, we maintained a steady pace of hotel expansion, opening 537 new hotels in China. Progress is currently smooth, and we are confident in successfully achieving the full-year target of opening approximately 2,200 to 2,300 new hotels. Through continuous product iteration and the implementation of various revenue management optimization initiatives, the blended average daily rate for HWC increased by 4.5% year-on-year, and the blended revenue per available room grew by 3.0% year-on-year, showing a trend of sequential quarterly improvement. Looking ahead, we will continue to promote high-quality hotel network expansion, strengthen brand positioning, enhance membership-centric sales capabilities through the H Rewards loyalty program, and further deepen our development layout in technology and artificial intelligence."

"To more clearly and accurately reflect the Group's future development prospects, we have formally adopted a new HWC and HWI disclosure framework starting this quarter. HWC represents all of the Group's business within Mainland China, while HWI encompasses all hotel-related businesses outside Mainland China. In the first quarter of 2026, the blended revenue per available room for HWI increased by 5.0% year-on-year, with an average daily rate increase of 1.6% and an occupancy rate improvement of 2.1 percentage points."

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