H World Group Limited Reports Fourth Quarter and Full Year of 2025 Unaudited Financial Results

Core Viewpoint - H World Group Limited reported strong financial results for the fourth quarter and full year of 2025, with significant year-over-year increases in hotel turnover, revenue, and net income, indicating robust growth in the global hotel industry [3][6][27]. Financial Performance - Hotel turnover increased by 18.4% year-over-year to RMB28.1 billion in Q4 2025 and by 16.4% for the full year 2025 [6]. - Revenue for Q4 2025 was RMB6.5 billion (US$933 million), an 8.3% increase year-over-year, surpassing previous guidance [6][9]. - For the full year 2025, total revenue reached RMB25.3 billion (US$3.6 billion), reflecting a 5.9% increase compared to 2024 [10]. - Net income attributable to H World was RMB1.2 billion (US$168 million) in Q4 2025, a significant increase from RMB49 million in Q4 2024 [27]. - Full year net income was RMB5.1 billion (US$726 million), a 66.7% increase from RMB3.0 billion in 2024 [28]. Operational Highlights - As of December 31, 2025, H World operated 12,858 hotels with 1,264,419 rooms, including 406 new hotel openings in Q4 2025 [4][6]. - The Legacy-Huazhu segment had 12,740 hotels in operation, with 2,887 hotels in the pipeline [5][6]. - The average daily room rate (ADR) for Legacy-Huazhu hotels was RMB288 in Q4 2025, up from RMB277 in Q4 2024 [13]. Revenue Breakdown - Revenue from manachised and franchised (M&F) hotels in Q4 2025 was RMB3.0 billion (US$432 million), a 21.0% year-over-year increase [13][15]. - For the full year 2025, M&F revenue was RMB11.7 billion (US$1.7 billion), representing a 23.1% year-over-year increase [15]. - Revenue from Legacy-Huazhu for the full year was RMB20.5 billion, a 7.9% increase year-over-year [10]. Cost and Expenses - Total operating costs and expenses in Q4 2025 were RMB4.882 billion, a decrease from RMB5.220 billion in Q4 2024 [18]. - Hotel operating costs for the full year 2025 were RMB15.3 billion, remaining flat compared to 2024 [19]. Future Guidance - For 2026, H World expects revenue growth of 2%-6%, or 5%-9% excluding Legacy-DH, and plans to open 2,200 - 2,300 hotels while closing 600 - 700 hotels [40].