Overview
China hotel operator's Q4 revenue rose 8.3% yr/yr, exceeding company guidance
Net income for Q4 surged yr/yr, driven by Legacy-Huazhu and Legacy-DH segments
Company declared US$400 mln cash dividend for H2 2025
Outlook
H World expects 2026 revenue growth of 2%-6% versus 2025
Company sees 2026 M&F revenue growth of 12%-16%
H World plans to open 2,200-2,300 hotels and close 600-700 hotels in 2026
Result Drivers
M&F REVENUE GROWTH - Strong 21% yr/yr increase in manachised and franchised hotel revenue drove overall revenue growth
NETWORK EXPANSION - Fast hotel network expansion, especially in Legacy-Huazhu, supported revenue and RevPAR performance
ASSET-LIGHT MODEL - Higher revenue contribution from M&F business improved operating margin, consistent with asset-light strategy
Company press release: ID:nGNX1HwHBS
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | RMB 6.53 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", no "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 $52.95, about 1.5% above its March 17 closing price of $52.15
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago
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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.)