Core Insights - H World Group Limited (HTHT) reported first-quarter 2025 results with earnings and revenues missing the Zacks Consensus Estimate, although both metrics increased year-over-year [1][3] Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 34 cents, missing the consensus estimate of 42 cents by 19.1%, compared to 29 cents in the prior-year quarter [3] - Quarterly revenues reached $744 million, falling short of the consensus mark of $754 million by 1.3%, but representing a 1.8% increase from $731 million in the same quarter last year [3] - Selling, General and Administrative expenses were $104 million, significantly higher than $36 million reported in the prior-year quarter [4] - The operating margin improved by 110 basis points year-over-year to 20.1%, driven by higher revenue contributions from manachised and franchised businesses [4] - Adjusted EBITDA was $206 million, reflecting a 4.6% increase from the previous year's figure [4] Balance Sheet - As of March 31, 2025, cash and cash equivalents stood at $1.1 billion, up from $818 million in the prior-year quarter [5] - Long-term debt increased to $609 million from $228 million reported in Q1 2024 [5] Business Operations - H World operated a global network of 11,685 hotels with a total of 1,142,158 rooms as of March 31, 2025, including 11,564 properties under the Legacy-Huazhu brand and 121 under Legacy-DH [6] - In Q1 2025, the Legacy-Huazhu segment added 694 new hotels, with 692 under the manachised and franchised model, while closing 155 properties [6] - The company maintains a robust development pipeline of 2,888 unopened hotels, with 2,865 from Legacy-Huazhu and 23 from Legacy-DH [6] Strategic Outlook - The company expressed a cautious stance regarding persistent tariff challenges and broader macroeconomic uncertainties [2] - H World emphasized its asset-light strategy, focusing on high-quality network expansion, strengthened brand positioning, service excellence, and enhanced sales capabilities through its H Rewards membership program to drive growth [2]

Core Insights - H World Group Limited reported significant growth in its hotel network, achieving a milestone of 10,000 hotels and opening over 2,400 new hotels in 2024, surpassing its initial target of 1,800 hotels [2][5] - The company maintained a high occupancy rate of 81.2% despite a slight year-over-year decline in RevPAR, indicating strong operational performance amid rapid expansion [2] - The loyalty program, H Rewards, saw membership rise to 267 million, contributing to nearly two-thirds of all bookings, reflecting the effectiveness of the company's digital innovations [4] Financial Performance - Fourth quarter revenue increased by 7.8% year-over-year to RMB 6.0 billion (US$ 825 million) [5] - Full year revenue for 2024 rose by 9.2% year-over-year to RMB 23.9 billion (US$ 3.3 billion) [5] - Adjusted EBITDA for the fourth quarter totaled RMB 1.2 billion (US$ 171 million), marking a 10.3% increase year-over-year, while full year adjusted EBITDA reached RMB 6.8 billion (US$ 935 million), an 8.8% increase year-over-year [5] Strategic Focus - The company is committed to an asset-light strategy, focusing on high-quality hotel network growth and enhancing brand positioning [2][5] - H World Group plans to continue improving hotel operations, cost reduction, and efficiency in its Legacy-DH business, which recorded a 5.9% year-over-year increase in RevPAR [2] - The company has a robust development pipeline with 3,013 hotels in the pipeline as of year-end 2024, indicating strong future growth potential [5][3]