Core Insights - H World Group Limited reported a strong second-quarter performance for 2025, with a 22.8% year-on-year increase in asset-light revenues, driven by hotel GMV growth, loyalty engagement, and network expansion [1][2][3] Financial Performance - Hotel turnover increased by 15.0% year-on-year to RMB 26.9 billion in Q2 2025, while total adjusted EBITDA rose 11.3% year-on-year to RMB 2.3 billion [2] - Manachise and franchise gross operating profit reached RMB 1.9 billion in Q2 2025, a 23.2% increase from the previous year, accounting for 64% of total gross operating profit [3] Strategic Developments - The company opened 595 hotels in Q2 2025, on track to meet its target of 2,300 gross openings for the full year [4] - H World Group operates a total of 12,137 hotels or 1,184,915 hotel rooms globally as of June 30, 2025 [4] Brand Performance - Hanting Hotel ranked No. 1 in HOTELS Magazine's "World's Top 50 Hotel Brands" list, with 4,401 hotels or 378,569 rooms in operation [5] - The Group's presence in the upper-midscale market increased, with over 1,500 hotels in operation, and InterCity Hotel saw a 57.1% year-on-year performance increase [6] Customer Engagement - Customer loyalty strengthened, with membership reaching 288 million as of June 30, and direct bookings through H World CRS accounted for 65.1% of total reservations, a 5.2 percentage point increase from the prior year [7] Growth Outlook - H World has a total of 2,947 hotels in the development pipeline globally and remains optimistic about long-term growth in China's travel and hospitality industry [8] Shareholder Returns - The Board of Directors declared a cash dividend of approximately US$250 million for the first half of 2025, amounting to US$0.081 per ordinary share [9]

Q2 2025 Key Highlights - Hotel GMV reached RMB 26911 million[22] - Legacy-Huazhu RevPAR decreased by 38% year-over-year[12,24] - Legacy-DH RevPAR increased by 81% year-over-year[12,26] - Total number of rooms in operation increased by 183% year-over-year, reaching 1184915[12,14,21] - H Rewards members increased by 175% year-over-year, totaling 288 million[12,15,62] - Room nights booked by members increased by 288% year-over-year, exceeding 60 million[12,16] - Manachised and Franchised (M&F) revenue increased by 228% year-over-year, reaching RMB 29 billion[18,75] - Total revenue increased by 45% year-over-year, reaching RMB 64 billion[18,70] - Total Adjusted EBITDA increased by 113% year-over-year, reaching RMB 23 billion[19,70] - Adjusted Diluted EPS increased by 95% year-over-year, reaching RMB 042[19] Financial Performance - Total revenue for Q2 2025 was RMB 6426 million, a 45% increase year-over-year[18,70] - Adjusted EBITDA for Q2 2025 was RMB 2270 million, an 113% increase year-over-year[19,70] - M&F revenue for Q2 2025 was RMB 2865 million, a 228% increase year-over-year[18,75] - M&F Gross Operating Profit for Q2 2025 was RMB 1896 million, a 232% increase year-over-year[18,77] Network and Product Development - Hanting Hotels ranked No1 on the "World's Top 50 Hotel Brands" list with 378569 rooms in operation as of June 30, 2025[30,32,117] - The company is enhancing its presence in lower-tier cities[46] - The company is stepping up the development of the upper-midscale segment, with a 233% year-over-year increase in the number of upper-midscale hotels in operation and pipeline[50,51] Guidance - The company projects M&F revenue to grow 20%-24% in Q3 2025 compared to Q3 2024[101] - The company projects total revenue to grow 2%-6% in Q3 2025 compared to Q3 2024, or 4%-8% excluding DH[103]

Core Insights - H World Group Limited reported strong growth and continued momentum in its asset-light transformation and brand loyalty in the first quarter of 2025 [1] Group 1: Hotel Openings and Operations - H World Group achieved 538 net hotel openings in Q1 2025, bringing the total number of hotels in operation to 11,685 [2] - The total number of rooms worldwide reached 1,142,158, reflecting a 20% increase year-over-year [2] - The company operates in 1,394 cities across China, with plans to expand to 2,000 cities in the future [2] - As of March 31, H World had a pipeline of 2,888 hotels [2] Group 2: Asset-Light Strategy - Revenue from manachised and franchised hotels increased by 21% year-over-year to RMB 2.5 billion (approximately US$344 million) [3] - The manachise model combines the scalability of franchising with operational control, facilitating efficient and brand-consistent growth [3] Group 3: Loyalty and Direct Bookings - H Rewards membership reached 277 million, making it one of the largest loyalty platforms in the global hospitality industry [4] - Direct bookings from members accounted for over 65% of total reservations, a 5.4 percentage point increase year-on-year [4] Group 4: Experience Upgrade Initiatives - The company is advancing product upgrade initiatives to enhance consumer experience across core brands [5] - The upper-midscale segment saw a 36% year-on-year increase in operating hotels and a 22% expansion in the development pipeline [5] Group 5: Future Outlook - The CEO expressed confidence in achieving the full-year target of approximately 2,300 gross hotel openings [6] - The company will continue to focus on high-quality network expansion, brand positioning, service excellence, and strengthening sales capabilities centered around the H Rewards program [6]