Shares of H World Group Limited (NASDAQ: HTHT) tumbled 5.23% in pre-market trading on Monday following the release of the company's third quarter 2025 financial results. Despite beating earnings estimates, the hotel operator's fourth-quarter guidance appears to have disappointed investors.

H World reported a net income attributable to the company of RMB1.5 billion (US$206 million) for Q3 2025, up from RMB1.3 billion in the same period last year. Adjusted earnings per ADS came in at RMB4.76 (US$0.67), matching analysts' expectations. Revenue increased 8.1% year-over-year to RMB7.0 billion (US$978 million), surpassing the high-end of the company's previously announced guidance.

However, the market's negative reaction seems to stem from H World's cautious outlook for the fourth quarter. The company expects revenue growth to be in the range of 2%-6% compared to Q4 2024, or 3%-7% excluding its Legacy-DH segment. This guidance suggests a potential slowdown from the 8.1% growth seen in Q3, which may have alarmed some investors.

Additionally, while H World's overall performance was strong, there were some signs of weakness in its same-hotel RevPAR (revenue per available room) metrics. For mature hotels in operation for more than 18 months, same-hotel RevPAR declined by 4.7% year-over-year, with both economy and midscale segments experiencing decreases. This could indicate some challenges in the company's core Chinese market, despite its continued expansion efforts.