- A total of 13,539 hotels or 1,335,445 hotel rooms in operation as of
June 30, 2026 . - Hotel turnover1 increased 13.2% year-over-year to
RMB30.5 billion in the second quarter of 2026. By segments, hotel turnover from the H World China (“HWC”)2 segment increased 15.3% year-over-year in the second quarter of 2026, and hotel turnover from theH World International (“HWI”)3 segment decreased 9.4% year-over-year in the second quarter of 2026. - Revenue in the second quarter of 2026 increased 10.8% year-over-year to
RMB7.1 billion (US$1.1 billion )4. Manachised and franchised (“M&F”) revenue increased 25.2% year-over-year toRMB3.6 billion (US$529 million ) over the same period. Revenue from the HWC segment in the second quarter of 2026 wasRMB5.9 billion , which increased 14.9% year-over-year; and HWI segment revenue in the second quarter of 2026 wasRMB1.3 billion , which decreased 5.8% year-over-year. - Net income attributable to
H World Group Limited wasRMB1.6 billion (US$232 million ) in the second quarter of 2026, compared withRMB1.5 billion in the second quarter of 2025 andRMB817 million in the previous quarter. - EBITDA (non-GAAP) in the second quarter of 2026 was
RMB2.6 billion (US$381 million ), compared withRMB2.5 billion in the second quarter of 2025 andRMB1.6 billion in the previous quarter. - Adjusted EBITDA (non-GAAP), which excluded share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments from EBITDA (non-GAAP), was
RMB2.7 billion (US$401 million ) in the second quarter of 2026, compared withRMB2.3 billion in the second quarter of 2025 andRMB1.9 billion in the previous quarter. - Adjusted EBITDA is our segment measure. Adjusted EBITDA from the HWC segment was
RMB2.6 billion in the second quarter of 2026, compared withRMB2.1 billion in the second quarter of 2025 andRMB1.9 billion in the previous quarter. Adjusted EBITDA from the HWI segment wasRMB131 million in the second quarter of 2026, compared withRMB164 million in the second quarter of 2025 and a loss ofRMB56 million in the previous quarter. - The board of directors of the Company (the “Board”) approved a three-year shareholder return plan in the aggregate amount of
US$2.5 billion . - The Board declared an ordinary cash dividend in the aggregate amount of approximately
US$275 million , ofUS$0.087 per ordinary share, orUS$0.87 per American Depositary Share (“ADS”). - We have raised our guidance for the full year of 2026, expecting Group revenue growth to be in the range of 4%-8% compared to the full year of 2025, and up from our previous guidance of 2%-6%, of which HWC revenue growth to be in the range of 7%-11% compared to the previous guidance of 5%-9% excluding DH.
H World expects its M&F revenue growth to be in the range of 16%-20% compared to the full year of 2025, and up from our previous guidance of 12%-16%.
________________________________
1 Hotel turnover refers to total transaction value of room and non-room revenue from
2 HWC refers to H World China, which includes all hotels operating inside
3 HWI refers to
4 The conversion of Renminbi (“RMB”) into
As of
HWC – Second Quarter of 2026 Operational Highlights
As of
• The HWC ADR was
• The occupancy rate for all HWC hotels in operation was 79.8% in the second quarter of 2026, compared with 81.0% in the second quarter of 2025 and 75.1% in the previous quarter.
• Blended HWC RevPAR was
• For all HWC hotels which had been in operation for at least 18 months, the same-hotel RevPAR was
HWI – Second Quarter of 2026 Operational Highlights
As of
• The HWI ADR5 was
• The occupancy rate for all HWI hotels in operation was 70.5% in the second quarter of 2026, compared with 74.0% in the second quarter of 2025 and 63.3% in the previous quarter.
• Blended HWI RevPAR5 was
________________________________
5 Period comparisons of ADR and RevPAR are presented on a constant
“In the second quarter of 2026, our HWI segment’s operational performance was negatively impacted by the
Second Quarter and Interim of 2026 Unaudited Financial Results
| (RMB in millions) | Q2 2025 | Q1 2026 | Q2 2026 | H1 2025 | H1 2026 |
| Revenue: | |||||
| Leased and owned hotels | 3,401 | 2,750 | 3,233 | 6,190 | 5,983 |
| Manachised and franchised hotels | 2,865 | 3,006 | 3,586 | 5,364 | 6,592 |
| Others | 160 | 240 | 302 | 267 | 542 |
| Total revenue | 6,426 | 5,996 | 7,121 | 11,821 | 13,117 |
Revenue in the second quarter of 2026 was
Revenue in the first half of 2026 was
Revenue from leased and owned (L&O) hotels in the second quarter of 2026 was
In the first half of 2026, revenue from our L&O hotels was
Revenue from manachised and franchised (M&F) hotels in the second quarter of 2026 was
In the first half of 2026, revenue from M&F hotels was
Other revenue represents revenue generated from businesses other than our hotel operations, which mainly includes revenue from the provision of technical services, procurement platform and Huazhu Mall™ and other revenue from the HWI segment, totaling
In the first half of 2026, other revenue was
| (RMB in millions) | Q2 2025 | Q1 2026 | Q2 2026 | H1 2025 | H1 2026 | |||||||||
| Operating costs and expenses: | ||||||||||||||
| Hotel operating costs | (3,752 | ) | (3,655 | ) | (4,030 | ) | (7,356 | ) | (7,685 | ) | ||||
| Other operating costs | (11 | ) | (18 | ) | (24 | ) | (22 | ) | (42 | ) | ||||
| Selling and marketing expenses | (309 | ) | (286 | ) | (337 | ) | (552 | ) | (623 | ) | ||||
| General and administrative expenses | (660 | ) | (560 | ) | (691 | ) | (1,172 | ) | (1,251 | ) | ||||
| Pre-opening expenses | (12 | ) | (11 | ) | (18 | ) | (15 | ) | (29 | ) | ||||
| Total operating costs and expenses | (4,744 | ) | (4,530 | ) | (5,100 | ) | (9,117 | ) | (9,630 | ) | ||||
Hotel operating costs in the second quarter of 2026 were
In the first half of 2026, hotel operating costs were
Selling, General and Administrative expenses (SG&A) in the second quarter of 2026 were
In the first half of 2026, SG&A expenses were
Other operating income, net in the second quarter of 2026 was
Other operating income, net in the first half of 2026 was
Income from operations in the second quarter of 2026 was
Income from operations in the first half of 2026 was
Operating margin, defined as income from operations as a percentage of revenue, was 31.1% in the second quarter of 2026, compared with 27.8% in the second quarter of 2025 and 24.8% in the previous quarter. The year-over-year margin improvement was mainly driven by a higher revenue contribution from our M&F businesses, consistent with our asset-light expansion strategy.
Operating margin in the first half of 2026 was 28.3%, compared with 24.3% in the first half of 2025.
Income tax expense in the second quarter of 2026 was
In the first half of 2026, income tax expense was
Net income attributable to
Net income attributable to
EBITDA (non-GAAP) in the second quarter of 2026 was
EBITDA (non-GAAP) in the first half of 2026 was
Adjusted EBITDA, which excluded the following from EBITDA (non-GAAP): share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments, was
Adjusted EBITDA (non-GAAP) in the first half of 2026 was
Cash flow. Operating cash inflow in the second quarter of 2026 was
Operating cash inflow in the first half of 2026 was
Cash, cash equivalents and restricted cash. As of
Debt financing. As of
Shareholder Return Plan
The Board has approved a three-year shareholder return plan with an aggregate amount of distributions that may be made to the Company's shareholders of
Cash Dividend
As part of the 2026 Shareholder Return Plan, on the same date, the Board has approved the declaration and payment of an ordinary cash dividend (the “Cash Dividend”) in the aggregate amount of approximately
Guidance
We have raised our guidance for the full year of 2026, expecting Group revenue growth to be in the range of 4%-8% compared to the full year of 2025, and up from our previous guidance of 2%-6%, of which HWC revenue growth to be in the range of 7%-11% compared to the previous guidance of 5%-9% excluding DH.
The above forecast reflects the Company’s current and preliminary view, which is subject to change.
Conference Call
H World’s management will host a conference call at
To join by phone, all participants must pre-register this conference call using the Participant Registration link of https://register-conf.media-server.com/register/BI5e31bbbd257d4448ba4120bb310afe2b. Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN.
A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/3gwfteju or the Company’s website at https://ir.hworld.com/news-and-events/events-calendar.
A replay of the conference call will be available for twelve months from the date of the conference at the Company’s website, https://ir.hworld.com/news-and-events/events-calendar.
Use of Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated financial results presented in accordance with
The Company believes that EBITDA is a useful financial metric to assess the operating and financial performance before the impact of investing and financing transactions and income taxes, given the significant investments that the Company has made in leasehold improvements, depreciation and amortization expense that comprise a significant portion of the Company’s cost structure. In addition, the Company believes that EBITDA is widely used by other companies in the lodging industry and may be used by investors as a measure of financial performance. The Company believes that EBITDA information provides investors with a useful tool for comparability between periods because it excludes depreciation and amortization expense attributable to capital expenditures. The Company also uses adjusted EBITDA to assess operating results of its hotels in operation. The Company believes that the exclusion of share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments helps facilitate year-over-year comparisons of the results of operations as the share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments may not be indicative of Company operating performance.
Therefore, the Company believes adjusted EBITDA more closely reflects the financial performance capability of Company’s hotels. The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that the Company’s future results will be unaffected by other charges and gains considered to be outside the ordinary course of business.
The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets (including land use rights), income tax, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of depreciation and amortization, interest income, interest expense, income tax expense, share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net, and gain (loss) on disposal of investments all in the reconciliations to the
The terms EBITDA and adjusted EBITDA are not defined under
Reconciliations of the Company’s non-GAAP financial measures, including EBITDA and adjusted EBITDA, to the consolidated statement of operations information are included at the end of this press release.
About H World Group Limited
Originated in China, H World Group Limited is a key player in the global hotel industry. As of June 30, 2026, H World operated 13,539 hotels with 1,335,445 rooms in operation in 21 countries. H World’s brands include HanTing Hotel, JI Hotel, Orange Hotel, Crystal Orange Hotel, IntercityHotel, Grand JI Hotel, Hi Inn, Ni Hao Hotel, Elan Hotel, Zleep Hotels, Starway Hotel, CitiGO, Manxin Hotel, Madison Hotel, MAXX Hotel, Blossom House, Joya Hotel, Steigenberger Hotels & Resorts, Jaz in the City, Steigenberger Icons and Song Hotels. In addition, H World also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in the pan-China region.
H World’s business includes L&O and M&F models. Under the L&O model, H World directly operates hotels typically located on leased or owned properties. Under the manachise model, H World manages manachised hotels through the on-site hotel managers that H World appoints, and H World collects fees from franchisees. Under the franchise model, H World provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. H World applies a consistent standard and platform across all of its hotels. As of June 30, 2026, H World operated 7 percent of its hotel rooms under the L&O model, and 93 percent under the M&F model.
For more information, please visit H World’s website: https://ir.hworld.com.
Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; economic conditions; the regulatory environment; our ability to attract and retain customers and leverage our brands; trends and competition in the lodging industry; the expected growth of demand for lodging; and other factors and risks detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results.
H World undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
—Financial Tables and Operational Data Follow—
| Unaudited Condensed Consolidated Balance Sheets | ||||||||
| RMB | RMB | US$6 | ||||||
| (in millions) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 10,386 | 14,249 | 2,100 | |||||
| Restricted cash | 146 | 142 | 21 | |||||
| Short-term investments | 4,894 | 1,315 | 194 | |||||
| Accounts receivable, net | 723 | 839 | 124 | |||||
| Loan receivables - current, net | 87 | 74 | 11 | |||||
| Amounts due from related parties, current | 272 | 104 | 15 | |||||
| Inventories | 57 | 52 | 8 | |||||
| Other current assets, net | 870 | 986 | 145 | |||||
| Total current assets | 17,435 | 17,761 | 2,618 | |||||
| Property and equipment, net | 5,230 | 4,989 | 735 | |||||
| Intangible assets, net | 5,028 | 4,821 | 711 | |||||
| Operating lease right-of-use assets | 24,983 | 24,922 | 3,673 | |||||
| Finance lease right-of-use assets | 2,394 | 2,275 | 335 | |||||
| Land use rights, net | 155 | 152 | 22 | |||||
| Long-term investments | 1,369 | 1,352 | 199 | |||||
| 5,428 | 5,291 | 780 | ||||||
| Amounts due from related parties, non-current | 42 | 35 | 5 | |||||
| Loan receivables, net | 132 | 113 | 17 | |||||
| Other assets, net | 752 | 761 | 113 | |||||
| Deferred tax assets | 1,157 | 1,143 | 168 | |||||
| Assets held for sale | 669 | - | - | |||||
| Total assets | 64,774 | 63,615 | 9,376 | |||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short-term debt | 5,337 | 911 | 134 | |||||
| Accounts payable | 1,020 | 1,040 | 153 | |||||
| Amounts due to related parties | 129 | 96 | 14 | |||||
| Salary and welfare payables | 1,188 | 991 | 146 | |||||
| Deferred revenue | 1,823 | 2,004 | 296 | |||||
| Operating lease liabilities, current | 3,478 | 3,563 | 525 | |||||
| Finance lease liabilities, current | 59 | 62 | 9 | |||||
| Accrued expenses and other current liabilities | 4,902 | 4,912 | 725 | |||||
| Income tax payable | 1,191 | 1,122 | 165 | |||||
| Total current liabilities | 19,127 | 14,701 | 2,167 | |||||
| Long-term debt | 479 | 3,315 | 489 | |||||
| Operating lease liabilities, non-current | 23,653 | 23,452 | 3,456 | |||||
| Finance lease liabilities, non-current | 3,063 | 2,931 | 432 | |||||
| Deferred revenue | 1,602 | 1,674 | 247 | |||||
| Other long-term liabilities | 1,925 | 2,082 | 306 | |||||
| Deferred tax liabilities | 1,187 | 1,125 | 166 | |||||
| Retirement benefit obligations | 109 | 100 | 15 | |||||
| Liabilities held for sale | 671 | - | - | |||||
| Total liabilities | 51,816 | 49,380 | 7,278 | |||||
| Equity: | ||||||||
| Ordinary shares | 0 | 0 | 0 | |||||
| (662 | ) | (2,303 | ) | (339 | ) | |||
| Additional paid-in capital | 9,653 | 13,132 | 1,935 | |||||
| Retained earnings | 3,614 | 3,133 | 462 | |||||
| Accumulated other comprehensive income | 199 | 118 | 17 | |||||
| Total | 12,804 | 14,080 | 2,075 | |||||
| Noncontrolling interest | 154 | 155 | 23 | |||||
| Total equity | 12,958 | 14,235 | 2,098 | |||||
| Total liabilities and equity | 64,774 | 63,615 | 9,376 | |||||
________________________________
6 The conversion of Renminbi (“RMB”) into
| Unaudited Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||
2025 | 2026 | 2025 | ||||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| (in millions, except shares, per share and per ADS data) | ||||||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Leased and owned hotels | 3,401 | 2,750 | 3,233 | 477 | 6,190 | 5,983 | 882 | |||||||||||||
| Manachised and franchised hotels | 2,865 | 3,006 | 3,586 | 529 | 5,364 | 6,592 | 972 | |||||||||||||
| Others | 160 | 240 | 302 | 44 | 267 | 542 | 80 | |||||||||||||
| Total revenue | 6,426 | 5,996 | 7,121 | 1,050 | 11,821 | 13,117 | 1,934 | |||||||||||||
| Operating costs and expenses: | ||||||||||||||||||||
| Hotel operating costs: | ||||||||||||||||||||
| Rents | (1,047 | ) | (964 | ) | (1,069 | ) | (158 | ) | (2,074 | ) | (2,033 | ) | (300 | ) | ||||||
| Utilities | (142 | ) | (167 | ) | (134 | ) | (20 | ) | (319 | ) | (301 | ) | (44 | ) | ||||||
| Personnel costs | (1,435 | ) | (1,445 | ) | (1,510 | ) | (223 | ) | (2,806 | ) | (2,955 | ) | (436 | ) | ||||||
| Depreciation and amortization | (296 | ) | (275 | ) | (295 | ) | (43 | ) | (597 | ) | (570 | ) | (84 | ) | ||||||
| Consumables, food and beverage | (301 | ) | (253 | ) | (275 | ) | (40 | ) | (570 | ) | (528 | ) | (78 | ) | ||||||
| Others | (531 | ) | (551 | ) | (747 | ) | (110 | ) | (990 | ) | (1,298 | ) | (191 | ) | ||||||
| Total hotel operating costs | (3,752 | ) | (3,655 | ) | (4,030 | ) | (594 | ) | (7,356 | ) | (7,685 | ) | (1,133 | ) | ||||||
| Other operating costs | (11 | ) | (18 | ) | (24 | ) | (4 | ) | (22 | ) | (42 | ) | (6 | ) | ||||||
| Selling and marketing expenses | (309 | ) | (286 | ) | (337 | ) | (50 | ) | (552 | ) | (623 | ) | (92 | ) | ||||||
| General and administrative expenses | (660 | ) | (560 | ) | (691 | ) | (102 | ) | (1,172 | ) | (1,251 | ) | (184 | ) | ||||||
| Pre-opening expenses | (12 | ) | (11 | ) | (18 | ) | (3 | ) | (15 | ) | (29 | ) | (4 | ) | ||||||
| Total operating costs and expenses | (4,744 | ) | (4,530 | ) | (5,100 | ) | (753 | ) | (9,117 | ) | (9,630 | ) | (1,419 | ) | ||||||
| Other operating income (expense), net | 105 | 22 | 197 | 29 | 165 | 219 | 32 | |||||||||||||
| Income (loss) from operations | 1,787 | 1,488 | 2,218 | 326 | 2,869 | 3,706 | 547 | |||||||||||||
| Interest income | 52 | 65 | 55 | 8 | 101 | 120 | 17 | |||||||||||||
| Interest expense | (91 | ) | (76 | ) | (63 | ) | (9 | ) | (165 | ) | (139 | ) | (20 | ) | ||||||
| Other income (expense), net | 15 | (18 | ) | (10 | ) | (1 | ) | 37 | (28 | ) | (4 | ) | ||||||||
| Gains (losses) from fair value changes of equity securities | (1 | ) | (5 | ) | (5 | ) | (1 | ) | (13 | ) | (10 | ) | (1 | ) | ||||||
| Foreign exchange gains (losses) | 366 | (166 | ) | 49 | 7 | 574 | (117 | ) | (18 | ) | ||||||||||
| Income (loss) before income taxes | 2,128 | 1,288 | 2,244 | 330 | 3,403 | 3,532 | 521 | |||||||||||||
| Income tax (expense) benefit | (565 | ) | (481 | ) | (687 | ) | (101 | ) | (942 | ) | (1,168 | ) | (172 | ) | ||||||
| Income (Loss) from equity method investments | (4 | ) | 12 | 24 | 4 | (3 | ) | 36 | 5 | |||||||||||
| Net income (loss) | 1,559 | 819 | 1,581 | 233 | 2,458 | 2,400 | 354 | |||||||||||||
| Net (income) loss attributable to noncontrolling interest | (15 | ) | (2 | ) | (4 | ) | (1 | ) | (20 | ) | (6 | ) | (1 | ) | ||||||
| Net income (loss) attributable to | 1,544 | 817 | 1,577 | 232 | 2,438 | 2,394 | 353 | |||||||||||||
| Gains(losses) from fair value changes of debt securities, net of tax | 4 | - | - | - | 4 | - | - | |||||||||||||
| Foreign currency translation adjustments, net of tax | (66 | ) | (5 | ) | (76 | ) | (11 | ) | (124 | ) | (81 | ) | (12 | ) | ||||||
| Comprehensive income (loss) | 1,497 | 814 | 1,505 | 222 | 2,338 | 2,319 | 342 | |||||||||||||
| Comprehensive (income) loss attributable to noncontrolling interest | (15 | ) | (2 | ) | (4 | ) | (1 | ) | (20 | ) | (6 | ) | (1 | ) | ||||||
| Comprehensive income (loss) attributable to | 1,482 | 812 | 1,501 | 221 | 2,318 | 2,313 | 341 | |||||||||||||
| Earnings (Losses) per share: | ||||||||||||||||||||
| Basic | 0.50 | 0.27 | 0.50 | 0.07 | 0.79 | 0.77 | 0.11 | |||||||||||||
| Diluted | 0.48 | 0.26 | 0.49 | 0.07 | 0.77 | 0.74 | 0.11 | |||||||||||||
| Earnings (Losses) per ADS: | ||||||||||||||||||||
| Basic | 5.03 | 2.66 | 5.00 | 0.74 | 7.94 | 7.69 | 1.13 | |||||||||||||
| Diluted | 4.85 | 2.58 | 4.87 | 0.72 | 7.69 | 7.44 | 1.10 | |||||||||||||
| Weighted average number of shares used in computation: | ||||||||||||||||||||
| Basic | 3,071,789,285 | 3,072,694,153 | 3,152,513,098 | 3,152,513,098 | 3,069,285,390 | 3,113,494,317 | 3,113,494,317 | |||||||||||||
| Diluted | 3,241,412,875 | 3,270,612,951 | 3,253,335,432 | 3,253,335,432 | 3,238,797,601 | 3,262,617,460 | 3,262,617,460 | |||||||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||
2025 | 2026 | 2025 | ||||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| (in millions) | ||||||||||||||||||||
| Operating activities: | ||||||||||||||||||||
| Net income (loss) | 1,559 | 819 | 1,581 | 233 | 2,458 | 2,400 | 354 | |||||||||||||
| Share-based compensation expenses | 170 | 86 | 179 | 26 | 247 | 265 | 39 | |||||||||||||
| Depreciation and amortization, and other | 317 | 292 | 318 | 47 | 636 | 610 | 90 | |||||||||||||
| Impairment loss | 33 | 4 | 62 | 9 | 38 | 66 | 10 | |||||||||||||
| Loss (Income) from equity method investments, net of dividends | 58 | (12 | ) | 5 | 1 | 57 | (7 | ) | (1 | ) | ||||||||||
| Investment (income) loss and foreign exchange (gain) loss | (435 | ) | 245 | 71 | 11 | (663 | ) | 316 | 47 | |||||||||||
| Changes in operating assets and liabilities | 924 | (1,119 | ) | 1,232 | 182 | 636 | 113 | 17 | ||||||||||||
| Others | 33 | (82 | ) | (40 | ) | (6 | ) | (170 | ) | (122 | ) | (20 | ) | |||||||
| Net cash provided by (used in) operating activities | 2,659 | 233 | 3,408 | 503 | 3,239 | 3,641 | 536 | |||||||||||||
| Investing activities: | ||||||||||||||||||||
| Capital expenditures | (189 | ) | (182 | ) | (167 | ) | (25 | ) | (429 | ) | (349 | ) | (51 | ) | ||||||
| Purchase of investments | (713 | ) | (2,210 | ) | (681 | ) | (100 | ) | (2,778 | ) | (2,891 | ) | (426 | ) | ||||||
| Proceeds from maturity/sale and return of investments | 1,099 | 3,787 | 2,676 | 394 | 4,130 | 6,463 | 953 | |||||||||||||
| Loan advances | (14 | ) | (8 | ) | (24 | ) | (4 | ) | (24 | ) | (32 | ) | (5 | ) | ||||||
| Loan collections | 42 | 34 | 33 | 5 | 82 | 67 | 10 | |||||||||||||
| Others | 14 | 3 | 2 | 0 | 15 | 5 | 1 | |||||||||||||
| Net cash provided by (used in) investing activities | 239 | 1,424 | 1,839 | 270 | 996 | 3,263 | 482 | |||||||||||||
| Financing activities: | ||||||||||||||||||||
| Payment of share repurchase | (13 | ) | - | (1,857 | ) | (274 | ) | (443 | ) | (1,857 | ) | (274 | ) | |||||||
| Proceeds from debt | 2,195 | 2,071 | 1,675 | 247 | 2,195 | 3,746 | 552 | |||||||||||||
| Repayment of debt | (757 | ) | (1,632 | ) | (181 | ) | (27 | ) | (923 | ) | (1,813 | ) | (267 | ) | ||||||
| Dividend paid | (2,136 | ) | - | (2,844 | ) | (419 | ) | (2,136 | ) | (2,844 | ) | (419 | ) | |||||||
| Others | 2 | (23 | ) | (16 | ) | (2 | ) | (30 | ) | (39 | ) | (6 | ) | |||||||
| Net cash provided by (used in) financing activities | (709 | ) | 416 | (3,223 | ) | (475 | ) | (1,337 | ) | (2,807 | ) | (414 | ) | |||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 20 | (105 | ) | (134 | ) | (19 | ) | 90 | (239 | ) | (35 | ) | ||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 2,209 | 1,968 | 1,890 | 279 | 2,988 | 3,858 | 569 | |||||||||||||
| Less: net increase (decrease) in cash and cash equivalents classified within assets held for sale | (1 | ) | (1 | ) | (0 | ) | (0 | ) | (3 | ) | (1 | ) | (0 | ) | ||||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 8,305 | 10,532 | 12,501 | 1,842 | 7,524 | 10,532 | 1,552 | |||||||||||||
| Cash, cash equivalents and restricted cash at the end of the period | 10,515 | 12,501 | 14,391 | 2,121 | 10,515 | 14,391 | 2,121 | |||||||||||||
| Unaudited Reconciliation of GAAP and Non-GAAP Results | ||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||
2025 | 2026 | 2025 | ||||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| (in millions, except shares, per share and per ADS data) | ||||||||||||||||||||
| Net income (loss) attributable to | 1,544 | 817 | 1,577 | 232 | 2,438 | 2,394 | 353 | |||||||||||||
| Share-based compensation expenses | 170 | 86 | 179 | 26 | 247 | 265 | 39 | |||||||||||||
| (Gain) loss from fair value changes of equity securities | 1 | 5 | 5 | 1 | 13 | 10 | 1 | |||||||||||||
| Foreign exchange (gain) loss, net | (366 | ) | 166 | (49 | ) | (7 | ) | (574 | ) | 117 | 18 | |||||||||
| (Gain) loss on disposal of investments | - | - | - | - | - | - | - | |||||||||||||
| Adjusted net income (loss) attributable to | 1,349 | 1,074 | 1,712 | 252 | 2,124 | 2,786 | 411 | |||||||||||||
| Adjusted earnings (losses) per share (non-GAAP) | ||||||||||||||||||||
| Basic | 0.44 | 0.35 | 0.54 | 0.08 | 0.69 | 0.89 | 0.13 | |||||||||||||
| Diluted | 0.42 | 0.34 | 0.53 | 0.08 | 0.67 | 0.86 | 0.13 | |||||||||||||
| Adjusted earnings (losses) per ADS (non-GAAP) | ||||||||||||||||||||
| Basic | 4.39 | 3.49 | 5.43 | 0.80 | 6.92 | 8.95 | 1.32 | |||||||||||||
| Diluted | 4.24 | 3.36 | 5.29 | 0.78 | 6.72 | 8.65 | 1.27 | |||||||||||||
| Weighted average number of shares used in computation | ||||||||||||||||||||
| Basic | 3,071,789,285 | 3,072,694,153 | 3,152,513,098 | 3,152,513,098 | 3,069,285,390 | 3,113,494,317 | 3,113,494,317 | |||||||||||||
| Diluted | 3,241,412,875 | 3,270,612,951 | 3,253,335,432 | 3,253,335,432 | 3,238,797,601 | 3,262,617,460 | 3,262,617,460 | |||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||
2025 | 2026 | 2025 | ||||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| (in millions, except per share and per ADS data) | ||||||||||||||||||||
| Net income (loss) attributable to | 1,544 | 817 | 1,577 | 232 | 2,438 | 2,394 | 353 | |||||||||||||
| Interest income | (52 | ) | (65 | ) | (55 | ) | (8 | ) | (101 | ) | (120 | ) | (17 | ) | ||||||
| Interest expense | 91 | 76 | 63 | 9 | 165 | 139 | 20 | |||||||||||||
| Income tax expense | 565 | 481 | 687 | 101 | 942 | 1,168 | 172 | |||||||||||||
| Depreciation and amortization | 317 | 292 | 318 | 47 | 636 | 610 | 90 | |||||||||||||
| EBITDA (non-GAAP) | 2,465 | 1,601 | 2,590 | 381 | 4,080 | 4,191 | 618 | |||||||||||||
| Share-based compensation expenses | 170 | 86 | 179 | 26 | 247 | 265 | 39 | |||||||||||||
| (Gain) loss from fair value changes of equity securities | 1 | 5 | 5 | 1 | 13 | 10 | 1 | |||||||||||||
| Foreign exchange (gain) loss, net | (366 | ) | 166 | (49 | ) | (7 | ) | (574 | ) | 117 | 18 | |||||||||
| (Gain) loss on disposal of investments | - | - | - | - | - | - | - | |||||||||||||
| Adjusted EBITDA (non-GAAP) | 2,270 | 1,858 | 2,725 | 401 | 3,766 | 4,583 | 676 | |||||||||||||
| Segment Financial Summary | |||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||
| HWC | HWI | Elimination | HWC | HWI | Elimination | HWC | HWI | Elimination | |||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||
| (in millions) | (in millions) | (in millions) | |||||||||||||||||||
| Leased and owned hotels | 2,124 | 1,277 | - | 1,821 | 929 | - | 2,048 | 1,185 | - | ||||||||||||
| Manachised and franchised hotels | 2,829 | 41 | (5 | ) | 2,982 | 31 | (7 | ) | 3,547 | 47 | (8 | ) | |||||||||
| Others | 162 | 12 | (14 | ) | 228 | 12 | - | 281 | 21 | - | |||||||||||
| Revenue | 5,115 | 1,330 | (19 | ) | 5,031 | 972 | (7 | ) | 5,876 | 1,253 | (8 | ) | |||||||||
| Depreciation and amortization | 254 | 63 | - | 231 | 61 | - | 243 | 75 | - | ||||||||||||
| Adjusted EBITDA | 2,106 | 164 | - | 1,914 | (56 | ) | - | 2,594 | 131 | - | |||||||||||
| Beginning in 1Q26, we relabeled our operating segments to “HWC” and “HWI”, to replace formerly “Legacy-Huazhu” and “Legacy-DH”. In addition, there is a minor realignment between these two segments in 2026; accordingly, comparative figures for the prior periods were updated to conform to the current period’s presentation. | |||||||||||||||||||||
| Segment Financial Summary | |||||||||||||
| Six Months Ended | Six Months Ended | ||||||||||||
| HWC | HWI | Elimination | HWC | HWI | Elimination | ||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | ||||||||
| (in millions) | (in millions) | ||||||||||||
| Leased and owned hotels | 4,030 | 2,160 | - | 3,869 | 2,114 | - | |||||||
| Manachised and franchised hotels | 5,301 | 72 | (9 | ) | 6,529 | 78 | (15 | ) | |||||
| Others | 257 | 24 | (14 | ) | 509 | 33 | - | ||||||
| Revenue | 9,588 | 2,256 | (23 | ) | 10,907 | 2,225 | (15 | ) | |||||
| Depreciation and amortization | 513 | 123 | - | 474 | 136 | - | |||||||
| Adjusted EBITDA | 3,681 | 85 | - | 4,508 | 75 | - | |||||||
| Beginning in 1Q26, we relabeled our operating segments to “HWC” and “HWI”, to replace formerly “Legacy-Huazhu” and “Legacy-DH”. In addition, there is a minor realignment between these two segments in 2026; accordingly, comparative figures for the prior periods were updated to conform to the current period’s presentation. | |||||||||||||
Operating Results: HWC(1)
| Number of hotels | Number of rooms | ||||||||||
| Opened in Q2 2026 | Closed in Q2 2026 | Net added in Q2 2026 | As of | As of | |||||||
| Leased and owned hotels | 1 | (19 | ) | (18 | ) | 484 | 73,888 | ||||
| Manachised and franchised hotels | 497 | (157 | ) | 340 | 12,933 | 1,236,203 | |||||
| Total | 498 | (176 | ) | 322 | 13,417 | 1,310,091 | |||||
| (1) HWC refers to H World China, covering all hotels operating inside | |||||||||||
| As of | ||||
| Number of hotels | Unopened hotels in pipeline | |||
| Economy hotels | 6,238 | 1,334 | ||
| Leased and owned hotels | 225 | 1 | ||
| Manachised and franchised hotels | 6,013 | 1,333 | ||
| Midscale, upper-midscale hotels and others | 7,179 | 1,720 | ||
| Leased and owned hotels | 259 | 7 | ||
| Manachised and franchised hotels | 6,920 | 1,713 | ||
| Total | 13,417 | 3,054 | ||
| For the quarter ended | ||||||||
| yoy | ||||||||
| 2025 | 2026 | 2026 | change | |||||
| Average daily room rate (in RMB) | ||||||||
| Leased and owned hotels | 364 | 351 | 379 | 4.1% | ||||
| Manachised and franchised hotels | 284 | 280 | 293 | 2.9% | ||||
| Blended | 290 | 285 | 298 | 2.6% | ||||
| Occupancy rate (as a percentage) | ||||||||
| Leased and owned hotels | 83.3% | 77.6% | 82.8% | -0.5p.p. | ||||
| Manachised and franchised hotels | 80.8% | 74.9% | 79.6% | -1.2p.p. | ||||
| Blended | 81.0% | 75.1% | 79.8% | -1.2p.p. | ||||
| RevPAR (in RMB) | ||||||||
| Leased and owned hotels | 303 | 272 | 314 | 3.5% | ||||
| Manachised and franchised hotels | 230 | 210 | 233 | 1.4% | ||||
| Blended | 235 | 214 | 238 | 1.1% | ||||
| Same-hotel operational data by class | |||||||||||||||
| Mature hotels in operation for more than 18 months | |||||||||||||||
| Number of hotels | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
| As of | For the quarter ended | yoy change | For the quarter ended | yoy change | For the quarter ended | yoy change | |||||||||
| 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | (p.p.) | |||||||
| Economy hotels | 4,561 | 4,561 | 184 | 177 | -3.7 | % | 220 | 220 | 0.0 | % | 83.5 | % | 80.4 | % | -3.1 |
| Leased and owned hotels | 217 | 217 | 222 | 217 | -2.0 | % | 259 | 260 | 0.3 | % | 85.7 | % | 83.7 | % | -2.0 |
| Manachised and franchised hotels | 4,344 | 4,344 | 181 | 173 | -3.9 | % | 217 | 217 | -0.1 | % | 83.3 | % | 80.1 | % | -3.2 |
| Midscale, upper-midscale hotels and others | 5,002 | 5,002 | 279 | 272 | -2.7 | % | 343 | 342 | -0.4 | % | 81.4 | % | 79.6 | % | -1.9 |
| Leased and owned hotels | 248 | 248 | 373 | 375 | 0.5 | % | 451 | 454 | 0.6 | % | 82.7 | % | 82.6 | % | -0.1 |
| Manachised and franchised hotels | 4,754 | 4,754 | 272 | 263 | -3.1 | % | 334 | 332 | -0.7 | % | 81.3 | % | 79.3 | % | -2.0 |
| Total | 9,563 | 9,563 | 240 | 233 | -3.0 | % | 292 | 292 | -0.1 | % | 82.3 | % | 79.9 | % | -2.4 |
Operating Results: HWI(2)
| Number of hotels | Number of rooms | Unopened hotels in pipeline | ||||||||||
| Opened in Q2 2026 | Closed in Q2 2026 | Net added in Q2 2026 | As of | As of | As of | |||||||
| Leased hotels | - | - | - | 63 | 13,442 | 8 | ||||||
| Manachised and franchised hotels | 3 | (1 | ) | 2 | 59 | 11,912 | 27 | |||||
| Total | 3 | (1 | ) | 2 | 122 | 25,354 | 35 | |||||
| (2) HWI refers to (3) As of | ||||||||||||
| For the quarter ended | ||||||||
| yoy | ||||||||
| (In constant $) | 2025 | 2026 | 2026 | change | ||||
| Average daily room rate (in US$)(4) | ||||||||
| Leased hotels | 136 | 120 | 137 | 1.1% | ||||
| Manachised and franchised hotels | 139 | 130 | 140 | 0.8% | ||||
| Blended | 137 | 125 | 139 | 0.9% | ||||
| Occupancy rate (as a percentage) | ||||||||
| Leased hotels | 76.4% | 64.0% | 76.5% | +0.1 p.p. | ||||
| Manachised and franchised hotels | 71.1% | 62.4% | 63.7% | -7.4p.p. | ||||
| Blended | 74.0% | 63.3% | 70.5% | -3.5p.p. | ||||
| RevPAR (in US$)(4) | ||||||||
| Leased hotels | 104 | 77 | 105 | 1.2% | ||||
| Manachised and franchised hotels | 99 | 81 | 89 | -9.7 | % | |||
| Blended | 102 | 79 | 98 | -3.8 | % | |||
| (4) Period comparisons of hotel operating statistics are presented on a constant | ||||||||
| As of | ||||||
| Hotels | Rooms | Unopened hotels | ||||
| in operation | in pipeline | |||||
| Economy hotels | 6,245 | 513,260 | 1,343 | |||
| 4,710 | 408,636 | 975 | ||||
| 537 | 41,374 | 69 | ||||
| 759 | 42,349 | 290 | ||||
| 35 | 1,693 | - | ||||
| 198 | 18,172 | 2 | ||||
| 6 | 1,036 | 7 | ||||
| Midscale hotels | 5,779 | 622,012 | 1,129 | |||
| 3,845 | 434,656 | 784 | ||||
| 1,134 | 119,118 | 229 | ||||
| 711 | 60,139 | 113 | ||||
| 89 | 8,099 | 3 | ||||
| Upper midscale hotels | 1,328 | 171,602 | 480 | |||
| 363 | 44,961 | 75 | ||||
| 191 | 30,506 | 113 | ||||
| 2 | 441 | 18 | ||||
| 30 | 4,245 | 1 | ||||
| 202 | 19,070 | 40 | ||||
| 228 | 24,607 | 125 | ||||
| 245 | 35,404 | 77 | ||||
| 57 | 10,815 | 20 | ||||
| 10 | 1,553 | 11 | ||||
| Upscale hotels | 163 | 24,283 | 128 | |||
| 88 | 6,126 | 112 | ||||
| 7 | 1,232 | 1 | ||||
| Grand | 10 | 1,661 | 1 | |||
| 55 | 14,677 | 14 | ||||
| Jaz in the City | 3 | 587 | - | |||
| Luxury hotels | 19 | 2,830 | 3 | |||
| Steigenberger Icons(8) | 12 | 2,319 | 1 | |||
| 7 | 511 | 2 | ||||
| Others | 5 | 1,458 | 6 | |||
| Other hotels(9) | 5 | 1,458 | 6 | |||
| Total | 13,539 | 1,335,445 | 3,089 | |||
(5) As of
(6) As of
(7) As of
(8) As of
(9) Other hotels include other partner hotels and other hotel brands in
Contact Information
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Email: ir@hworld.com
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