H World Group Reports Strong Full-Year 2025 Results, Driven by Asset-light Growth

Core Insights - H World Group reported strong financial results for the full year 2025, driven by an asset-light growth strategy and network expansion [1][3] - The company opened over 2,400 new hotels in 2025, marking its 20th anniversary and reflecting its commitment to growth [3] - The performance metrics indicate a positive trend in revenue and profitability, with significant year-on-year increases in key financial figures [4][5] Financial Performance - For Q4 2025, hotel GMV increased by 18.4% year-on-year to RMB 28.1 billion, while revenue from manachised and franchised hotels rose by 21.0% to RMB 3.0 billion [4] - Full-year 2025 hotel GMV reached RMB 108.1 billion, a 16.4% increase year-on-year, with M&F revenue rising by 23.1% to RMB 11.7 billion [5] - Adjusted EBITDA for 2025 was RMB 8.5 billion, reflecting a 24.2% year-on-year increase [5] Network Expansion - H World operated 12,858 hotels with over 1.26 million rooms as of December 31, 2025, representing a 16.2% year-on-year increase in total rooms [6] - The company focused on enhancing its brand portfolio, particularly in the mass market, to strengthen its competitive position [6] Loyalty Program - The H Rewards loyalty program saw room nights booked by members increase by 21.5% year-on-year to 245 million, indicating strong customer engagement [7] Legacy Business Performance - The Legacy-Deutsche Hospitality segment reported an adjusted EBITDA of RMB 499 million for 2025, a significant turnaround from a loss of RMB 154 million in 2024 [7] Future Outlook - H World plans to enhance product standards, strengthen commercial and revenue management capabilities, and integrate technology further into operations to drive sustainable growth [8]