Hotel turnover1 increased 18.4% year-over-year to RMB28.1 billion in the fourth quarter of 2025 and increased 16.4% year-over-year for the full year of 2025. Excluding Steigenberger Hotels GmbH and its subsidiaries ("DH", or "Legacy-DH"), hotel turnover from the Legacy-Huazhu2 segment increased 18.9% year-over-year in the fourth quarter of 2025 and increased 17.2% year-over-year for the full year of 2025. Hotel turnover from the Legacy-DH segment increased 13.7% year-over-year in the fourth quarter of 2025 and increased 8.5% year-over-year for the full year of 2025.
Revenue increased 8.3% year-over-year to RMB6.5 billion (US$933 million)3 in the fourth quarter of 2025, surpassing the revenue guidance previously announced of a 2% to 6% increase compared to the fourth quarter of 2024, increasing 5.9% year-over-year to RMB25.3 billion (US$3.6 billion) for the full year of 2025. Manachised and franchised ("M&F") revenue increased 21.0% year-over-year to RMB3.0 billion (US$432 million) in the fourth quarter of 2025, on the high end of M&F revenue guidance previously announced of a 17% to 21% increase, compared to the fourth quarter of 2024, increasing 23.1% year-over-year to RMB11.7 billion (US$1.7 billion) for the full year of 2025. Revenue from the Legacy-Huazhu segment in the fourth quarter of 2025 increased 9.1% year-over-year, exceeding the revenue guidance previously announced of a 3% to 7% increase, increasing 7.9% year-over-year for the full year of 2025. Revenue from the Legacy-DH segment in the fourth quarter of 2025 increased 5.3% as compared with fourth quarter of 2024, and decreasing 1.8% year-over-year for the full year of 2025.
Net income attributable to H World Group Limited was RMB1.2 billion (US$168 million) in the fourth quarter of 2025, compared with RMB49 million in the fourth quarter of 2024 and RMB1.5 billion in the previous quarter. Net income attributable to H World Group Limited was RMB5.1 billion (US$726 million) for the full year of 2025, compared with RMB3.0 billion for the full year of 2024.
EBITDA (non-GAAP) in the fourth quarter of 2025 was RMB2.1 billion (US$296 million), compared with RMB974 million in the fourth quarter of 2024 and RMB2.5 billion in the previous quarter. EBITDA (non-GAAP) for the full year of 2025 was RMB8.6 billion (US$1.2 billion), compared with RMB6.2 billion for the full year of 2024.
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 RMB2.2 billion (US$313 million) in the fourth quarter of 2025, compared with RMB1.2 billion in the fourth quarter of 2024 and RMB2.5 billion in the previous quarter. Adjusted EBITDA (non-GAAP) for the full year of 2025 was RMB8.5 billion (US$1.2 billion), compared with RMB6.8 billion for the full year of 2024.
Adjusted EBITDA is a segment measure. Adjusted EBITDA from the Legacy-Huazhu segment was RMB1.9 billion in the fourth quarter of 2025, compared with RMB1.5 billion in the fourth quarter of 2024 and RMB2.4 billion in the previous quarter. Adjusted EBITDA from the Legacy-Huazhu segment was RMB8.0 billion for the full year of 2025, compared with RMB7.0 billion for the full year of 2024. Adjusted EBITDA from the Legacy-DH segment was RMB329 million in the fourth quarter of 2025, compared with a loss of RMB247 million in the fourth quarter of 2024 and a positive RMB67 million in the previous quarter. Adjusted EBITDA from the Legacy-DH segment was RMB499 million for the full year of 2025, compared with a loss of RMB154 million for the full year of 2024.
For the second half of 2025, the board of directors of the Company (the "Board") declared a cash dividend in the aggregate amount of approximately US$400 million, of US$0.130 per ordinary share, or US$1.30 per American Depositary Share (the "ADS"). For the full year of 2025, total amounts declared by the Company to shareholders reached ~US$760 million, including US$650 million of cash dividends and ~US$110 million of share repurchases.
For the full year of 2026, H World expects revenue growth to be in the range of 2%-6%, compared to the full year of 2025, or in the range of 5%-9% excluding DH. H World expects its M&F revenue growth to be in the range of 12%-16%, compared to the full year of 2025.
For the full year of 2026, H World expects to open 2,200 - 2,300 hotels and close 600 - 700 hotels.
______________________1 Hotel turnover refers to total transaction value of room and non-room revenue from H World hotels (i.e., leased and owned, manachised and franchised hotels).2 Legacy-Huazhu refers to H World Group Limited and its subsidiaries, excluding DH.3 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.9931 on December 31, 2025, as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
SINGAPORE and SHANGHAI, March 18, 2026 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ:HTHT) ("H World", the "Company", "we" or "our"), a key player in the global hotel industry, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025.
As of December 31, 2025, H World's worldwide hotel network in operation totaled 12,858 hotels and 1,264,419 rooms, including 118 hotels from DH. During the fourth quarter of 2025, our Legacy-Huazhu segment opened 406 hotels, all of which are M&F hotels, and closed a total of 246 hotels, including 20 leased and owned hotels and 226 M&F hotels. As of December 31, 2025, H World had a total of 2,906 unopened hotels in the pipeline, including 2,887 hotels from Legacy-Huazhu and 19 hotels from Legacy-DH.
Legacy-Huazhu, Fourth Quarter and Full Year of 2025 Operational Highlights
As of December 31, 2025, Legacy-Huazhu had 12,740 hotels in operation, including 511 leased and owned hotels, and 12,229 M&F hotels. In addition, as of the same date, Legacy-Huazhu had 1,239,397 hotel rooms in operation, including 76,694 rooms under the lease and ownership model, and 1,162,703 rooms under the M&F models. Legacy-Huazhu also had 2,887 unopened hotels in its pipeline, including 11 leased and owned hotels, and 2,876 M&F hotels. The following discusses Legacy-Huazhu's average daily room rate ("ADR"), occupancy rate and revenue per available room ("RevPAR") for leased and owned Huazhu hotels, as well as for M&F Huazhu hotels for the periods indicated.
The ADR was RMB288 in the fourth quarter of 2025, compared with RMB277 in the fourth quarter of 2024, and RMB304 in the previous quarter.
The occupancy rate for all Legacy-Huazhu hotels in operation was 78.4% in the fourth quarter of 2025, compared with 80.0% in the fourth quarter of 2024, and 84.1% in the previous quarter.
Blended RevPAR was RMB226 in the fourth quarter of 2025, compared with RMB222 in the fourth quarter of 2024, and RMB256 in the previous quarter.
For all the Legacy-Huazhu hotels which had been in operation for at least 18 months, the same-hotel RevPAR was RMB222 in the fourth quarter of 2025, a 2.5% decline from RMB228 in the fourth quarter of 2024, due to a 3.0 percentage-point contraction in same-hotel occupancy rate and partially offset by a 1.2% increase in same-hotel ADR.
Legacy-DH, Fourth Quarter and Full Year of 2025 Operational Highlights
As of December 31, 2025, Legacy-DH had 118 hotels in operation, including 62 leased hotels, and 56 M&F hotels. In addition, as of the same date, Legacy-DH had 25,022 hotel rooms in operation, including 13,363 rooms under the lease model, and 11,659 rooms under the M&F models. Legacy-DH also had 19 unopened hotels in the pipeline, including 8 leased hotels and 11 M&F hotels. The following discusses Legacy-DH's ADR, occupancy rate and RevPAR for leased as well as for M&F DH hotels (excluding hotels temporarily closed) for the periods indicated.
The ADR was EUR120 in the fourth quarter of 2025, compared with EUR115 in the fourth quarter of 2024 and EUR117 in the previous quarter.
The occupancy rate for all Legacy-DH hotels in operation was 72.6% in the fourth quarter of 2025, compared with 70.5% in the fourth quarter of 2024 and 74.4% in the previous quarter.
Blended RevPAR was EUR87 in the fourth quarter of 2025, compared with EUR81 in the fourth quarter of 2024 and EUR87 in the previous quarter.
Jin Hui, CEO of H World, commented: "2025 marked our 20th anniversary. I am pleased to see that we opened a total of 2,444 new hotels throughout the year, representing another year of rapid network expansion. More importantly, driven by our ongoing product upgrades and a series of revenue management optimization initiatives, our RevPAR year-on-year performance started to improve from the third quarter and returned to positive growth in the fourth quarter. Looking ahead, we will continue to pursue high-quality hotel network expansion, strengthen our brand positioning and ‘service excellence', enhance member-centric sales capabilities underpinned by the H Rewards membership program, and further deepen technology and AI empowerment.
"Regarding our business outside China, our Legacy-DH segment recorded an 8.2% year-over-year RevPAR increase in 2025. Looking into 2026, we will continue to enhance hotel operations, focus on cost reduction and efficiency improvement, optimize our asset structure, and refine the positioning and value proposition of our core brands."
Fourth Quarter and Full Year of 2025 Unaudited Financial Results
(RMB in millions)
Q4 2024
Q3 2025
Q4 2025
2024FY
2025FY
Revenue:
Leased and owned hotels
3,373
3,487
3,266
13,843
12,943
Manachised and franchised hotels
2,499
3,309
3,023
9,498
11,696
Others
151
165
236
550
668
Total revenue
6,023
6,961
6,525
23,891
25,307
Revenue in the fourth quarter of 2025 was RMB6.5 billion (US$933 million), representing an 8.3% year-over-year increase which exceeds the previously-announced revenue guidance of a 2% to 6% increase, and a sequential decrease of 6.3% due to seasonality effects. Revenue from the Legacy-Huazhu segment in the fourth quarter of 2025 was RMB5.2 billion, representing a 9.1% year-over-year increase and an 8.7% sequential decline. The 9.1% year-over-year increase exceeds the previously-announced revenue guidance of a 3% to 7% increase, which was primarily supported by better-than-expected RevPAR performance and our fast network expansion. Revenue from the Legacy-DH segment in the fourth quarter of 2025 was RMB1.3 billion, representing a 5.3% year-over-year increase and a 5.0% sequential rise.
Revenue for the full year of 2025 was RMB25.3 billion (US$3.6 billion), representing an increase of 5.9% over the full year of 2024. Revenue from Legacy-Huazhu for the full year of 2025 was RMB20.5 billion, representing a 7.9% year-over-year increase. Revenue from the Legacy-DH segment for the full year of 2025 was RMB4.8 billion, representing a 1.8% year-over-year decline.
Revenue from leased and owned hotels in the fourth quarter of 2025 was RMB3.3 billion (US$467 million), representing a 3.2% year-over-year decrease and a 6.3% sequential decrease. Revenue from leased and owned hotels from the Legacy-Huazhu segment in the fourth quarter of 2025 was RMB2.0 billion, representing a 6.9% year-over-year decrease. Revenue from leased and owned hotels from the Legacy-DH segment in the fourth quarter of 2025 was RMB1.2 billion, representing a 3.7% year-over-year increase.
For the full year of 2025, revenue from our leased and owned hotels was RMB12.9 billion (US$1.9 billion), representing a 6.5% year-over-year decline. Revenue from our Legacy-Huazhu leased and owned hotels for the full year of 2025 was RMB8.4 billion, representing an 8.5% year-over-year decrease. Revenue from our Legacy-DH leased and owned hotels for the full year of 2025 was RMB4.6 billion, representing a 2.7% year-over-year decrease.
Revenue from manachised and franchised ("M&F") hotels in the fourth quarter of 2025 was RMB3.0 billion (US$432 million), representing a 21.0% year-over-year increase and an 8.6% sequential decline. Revenue from our Legacy-Huazhu segment from M&F hotels in the fourth quarter of 2025 was RMB3.0 billion, representing a 20.4% year-over-year increase. Revenue from Legacy-DH M&F hotels in the fourth quarter of 2025 was RMB56 million, representing a 64.7% year-over-year increase.
For the full year of 2025, revenue from M&F hotels was RMB11.7 billion (US$1.7 billion), representing a 23.1% year-over-year increase. The revenue from M&F hotels accounted for 46.2% of the total revenue from the Legacy-Huazhu segment for the full year of 2025, compared to 39.8% for the full year of 2024. Revenue from our Legacy-Huazhu M&F hotels for the full year of 2025 was RMB11.5 billion, representing a 23.0% year-over-year increase. The revenue from Legacy-Huazhu M&F hotels accounted for 56.2% of revenue from the Legacy-Huazhu segment for the full year of 2025, compared to 49.3% for the full year of 2024. Revenue from our Legacy-DH M&F hotels for the full year of 2025 was RMB176 million, representing a 39.7% year-over-year increase.
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 Legacy-DH segment, totaling RMB236 million (US$34 million) in the fourth quarter of 2025, compared to RMB151 million in the fourth quarter of 2024 and RMB165 million in the previous quarter.
For the full year of 2025, other revenue was RMB668 million (US$95 million), compared to RMB550 million for the full year of 2024.
(RMB in millions)
Q4 2024
Q3 2025
Q4 2025
2024FY
2025FY
Operating costs and expenses:
Hotel operating costs
(4,190
)
(4,062
)
(3,921
)
(15,285
)
(15,339
)
Other operating costs
(5
)
(16
)
(23
)
(31
)
(61
)
Selling and marketing expenses
(296
)
(339
)
(379
)
(1,176
)
(1,270
)
General and administrative expenses
(725
)
(545
)
(545
)
(2,508
)
(2,262
)
Pre-opening expenses
(4
)
(12
)
(14
)
(50
)
(41
)
Total operating costs and expenses
(5,220
)
(4,974
)
(4,882
)
(19,050
)
(18,973
)
Hotel operating costs in the fourth quarter of 2025 were RMB3.9 billion (US$560 million), compared to RMB4.2 billion in the fourth quarter of 2024 and RMB4.1 billion in the previous quarter. As the Company continues to transform into a more asset-light M&F model, hotel operating costs from the Legacy-Huazhu segment in the fourth quarter of 2025 were RMB2.9 billion, which represented 56.2% of revenue, compared to RMB2.8 billion or 58.2% of revenue in the fourth quarter of 2024 and RMB3.0 billion or 52.8% of revenue for the previous quarter. Hotel operating costs from the Legacy-DH segment in the fourth quarter of 2025 were RMB993 million, which represented 76.0% of revenue from the Legacy-DH segment, compared to RMB1.4 billion or 113.5% of revenue in the fourth quarter of 2024 and RMB1.0 billion or 84.2% of revenue for the previous quarter.
For the full year of 2025, hotel operating costs were RMB15.3 billion (US$2.2 billion), remaining largely flat compared to RMB15.3 billion for the full year of 2024. Hotel operating costs from Legacy-Huazhu for the full year of 2025 were RMB11.5 billion, which represented 55.8% of revenue, compared to 57.5% for the full year of 2024. Hotel operating costs from Legacy-DH for the full year of 2025 were RMB3.9 billion, which represented 81.6% of revenue from the Legacy-DH segment, compared to 89.1% for the full year of 2024.
Selling, General and administrative ("SG&A") expenses in the fourth quarter of 2025 were RMB924 million (US$132 million), reflecting a 9.5% year-over-year decrease. This was mainly attributable to a 10.0% year-over-year decline in Legacy-Huazhu SG&A driven by the adjustment to the provision for our bonus plan, and an 8.9% year-over-year decline in Legacy-DH SG&A.
For the full year of 2025, SG&A expenses were RMB3.5 billion (US$503 million), reflecting a 4.1% year-over-year decrease, attributable to a largely flat year-over-year SG&A expenses in Legacy-Huazhu and a 14.9% year-over-year decline in Legacy-DH.
Other operating income, net in the fourth quarter of 2025 was RMB259 million (US$36 million), compared to RMB99 million in the fourth quarter of 2024 and RMB61 million in the previous quarter. The increase in the fourth quarter of 2025 was mainly attributable to gains from the disposal of 4 leased hotels in DH.
Other operating income, net for the full year of 2025 was RMB485 million (US$69 million), compared to RMB359 million for the full year of 2024.
Income from operations in the fourth quarter of 2025 was RMB1.9 billion (US$272 million), representing a notable year-on-year improvement, driven primarily by a 35.1% year-on-year increase in Legacy-Huazhu together with a favorable earnings contribution from Legacy-DH.
Income from operations for the full year of 2025 was RMB6.8 billion (US$975 million), reflecting a 31.1% year-over-year increase, supported by a 17.5% year-over-year rise in income from operations from Legacy-Huazhu and a positive profit contribution from Legacy DH.
Operating margin, defined as income from operations as a percentage of revenue, was 29.1% in the fourth quarter of 2025, compared with 15.0% in the fourth quarter of 2024 and 29.4% for 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 for the full year of 2025 was 26.9%, compared with 21.8% for the full year of 2024.
Income tax expense in the fourth quarter of 2025 was RMB571 million (US$82 million), compared to RMB578 million in the fourth quarter of 2024 and RMB648 million in the previous quarter.
For the full year of 2025, income tax expense was RMB2.2 billion (US$309 million), compared to RMB1.7 billion for the full year of 2024.
Net income attributable to H World Group Limited in the fourth quarter of 2025 was RMB1.2 billion (US$168 million), representing a significant year-over-year improvement, which was mainly fueled by a 170.7% year-over-year rise in Legacy-Huazhu along with a positive profit contribution from Legacy-DH.
Net income attributable to H World Group Limited for the full year of 2025 was RMB5.1 billion (US$726 million), reflecting a 66.7% year-over-year increase, supported by a 39.4% year-over-year rise in Legacy-Huazhu and a positive profit contribution from Legacy DH.
EBITDA (non-GAAP) in the fourth quarter of 2025 was RMB2.1 billion (US$296 million), compared with RMB974 million in the fourth quarter of 2024 and RMB2.5 billion in the previous quarter.
EBITDA (non-GAAP) for the full year of 2025 was RMB8.6 billion (US$1.2 billion), compared to RMB6.2 billion for the full year of 2024.
Adjusted EBITDA (non-GAAP), 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 RMB2.2 billion (US$313 million) in the fourth quarter of 2025, compared with RMB1.2 billion in the fourth quarter of 2024 and RMB2.5 billion in the previous quarter. Adjusted EBITDA from the Legacy-Huazhu segment, which is a segment measure, was RMB1.9 billion in the fourth quarter of 2025, compared with RMB1.5 billion in the fourth quarter of 2024 and RMB2.4 billion in the previous quarter. Adjusted EBITDA from the Legacy-DH segment, which is a segment measure, was RMB329 million in the fourth quarter of 2025, compared with a loss of RMB247 million in the fourth quarter of 2024 and a positive RMB67 million in the previous quarter.
Adjusted EBITDA (non-GAAP) for the full year of 2025 was RMB8.5 billion (US$1.2 billion), compared with RMB6.8 billion for the full year of 2024. The adjusted EBITDA from Legacy-Huazhu for the full year of 2025 was RMB8.0 billion, compared with RMB7.0 billion for the full year of 2024. The adjusted EBITDA from Legacy-DH for the full year of 2025 was RMB499 million, compared with a loss of RMB154 million for the full year of 2024.
Cash flow. Operating cash inflow in the fourth quarter of 2025 was RMB3.4 billion (US$492 million). Investing cash inflow in the fourth quarter of 2025 was RMB1.0 billion (US$144 million). Financing cash outflow in the fourth quarter of 2025 was RMB1.2 billion (US$165 million).
Operating cash inflow for the full year of 2025 was RMB8.4 billion (US$1.2 billion), compared to RMB7.5 billion for the full year of 2024. Investing cash outflow for the full year of 2025 was RMB1.0 billion (US$149 million), compared to RMB2.2 billion for the full year of 2024. Financing cash outflow for the full year of 2025 was RMB4.3 billion (US$616 million), compared to RMB5.5 billion for the full year of 2024.
Cash, cash equivalents and restricted cash. As of December 31, 2025, the Company had a total balance of cash and cash equivalents of RMB10.4 billion (US$1.5 billion) and restricted cash of RMB146 million (US$21 million).
Debt financing. As of December 31, 2025, the Company had total debt of RMB5.8 billion (US$831 million). The net cash balances, which include cash and cash equivalents, restricted cash, net of short-term and long-term debt, amounted to RMB4.7 billion (US$675 million). The unutilized credit facility available to the Company was RMB6.3 billion.
Change of Officers
Ms. Chen Hui will step down as the chief financial officer of the Company, effective from March 18, 2026. Mr. Arthur Yu has been appointed as the chief financial officer of the Company, effective from the same date.
Mr. Yu has served as the executive vice president of the Company since December 1, 2025. Before joining the Company, Mr. Yu served as the chief financial officer of Baozun Inc. from December 2020 to April 2024. He was also the president of Baozun E-Commerce from December 2022 to March 2025. Before joining Baozun Inc., he worked for Jaguar Land Rover Plc, where he served as the Global Vice President, the chief financial officer of the Greater China Region and a British-side supervisor at Chery Jaguar Land Rover (a joint venture between Chery Automotive Co., Ltd. and Jaguar Land Rover in China) from 2018 to 2020. Prior to this, Mr. Yu worked for BT Group Plc (a company listed on the London Stock Exchange, stock code: BT.A) ("BT Group") from 2009 to 2018 and held several senior leadership positions within BT Group in the United Kingdom and Hong Kong. His last role within BT Group was the chief financial officer (Asia, Middle East and Africa) and the Chairman of BT China. In his earlier career, Mr. Yu worked in PricewaterhouseCoopers as a management consultant from 2007 to 2009 and in Rolls-Royce Plc successively as management trainee, analyst and manager from 2004 to 2007. Mr. Yu received a bachelor of science degree in management sciences from Warwick University in England in 2003, a master of science degree in management information systems from the London School of Economics in 2004 in England, and an executive MBA degree from Judge Business School, University of Cambridge in 2016 in England. He is currently a fellow member of the Charted Institute of Management Accountant.
Mr. Jin Hui, the Company's chief executive officer, commented, "I would like to congratulate and welcome Arthur on his new role as the chief financial officer of the Company. We believe his expertise and vision will be valuable in driving our financial strategy and supporting our growth trajectory. On behalf of the Company, I would also like to thank Ms. Chen Hui for her strong loyalty and commitment to the Company and significant contributions to the Company as the chief financial officer."
Cash DividendThe Board has approved the declaration and payment of an ordinary cash dividend (the "Cash Dividend"), for the second half of 2025 in the aggregate amount of approximately US$400 million, of US$0.130 per ordinary share, or US$1.30 per ADS. Holders of the Company's ordinary shares or ADSs as of the close of business on May 4, 2026 will be entitled to receive the Cash Dividend. Dividends to holders of the Company's ordinary shares are expected to be distributed on or about May 13, 2026. Citibank, N.A. ("Citi"), depositary bank for the Company's ADS program, expects to pay out dividends to ADS holders on or about May 20, 2026. All dividends to the Company's ADS holders through Citi will be subject to the terms of the deposit agreement by and among the Company and Citi, and the holders and beneficial owners of ADSs issued thereunder, including the fees and expenses payable thereunder.
Guidance For the full year of 2026, H World expects revenue growth to be in the range of 2%-6%, compared to the full year of 2025, or in the range of 5%-9% excluding DH. H World expects its M&F revenue growth to be in the range of 12%-16%, compared to the full year of 2025.
For the full year of 2026, H World expects to open 2,200 - 2,300 hotels and close 600 - 700 hotels.
The above forecast reflects the Company's current and preliminary view, which is subject to change.
Conference CallH World's management will host a conference call at 8 a.m. U.S. Eastern time on Wednesday, March 18, 2026 (8 p.m. Hong Kong time on Wednesday, March 18, 2026) following the announcement.
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/BIf18ca0d1c5504ba89697ca56825edb8f 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/5kkad4gk 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 MeasuresTo supplement the Company's unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles ("GAAP"), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission ("SEC"): adjusted net income (loss) attributable to H World Group Limited excluding 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; adjusted basic and diluted earnings (losses) per share/ADS excluding 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; EBITDA; adjusted EBITDA excluding 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. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and non-GAAP Results" set forth at the end of this release. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding Company performance by excluding 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 that may not be indicative of Company operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Company performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. A limitation of using non-GAAP financial measures excluding 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 is that 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 may continue to be significant and recurring in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
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 U.S. GAAP financial measures and in the consolidated financial statements, all of which should be considered when evaluating the performance of the Company.
The terms EBITDA and adjusted EBITDA are not defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing the operating and financial performance, investors should not consider these data in isolation or as a substitute for the Company's net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, the Company's EBITDA or adjusted EBITDA may not be comparable to EBITDA or adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA or adjusted EBITDA in the same manner as the Company does.
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 LimitedOriginated in China, H World Group Limited is a key player in the global hotel industry. As of December 31, 2025, H World operated 12,858 hotels with 1,264,419 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 leased and owned, M&F models. Under the lease and ownership 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 December 31, 2025, H World operated 7 percent of its hotel rooms under the lease and ownership model, and 93 percent under the manachise and franchise 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—
H World Group Limited
Unaudited Condensed Consolidated Balance Sheets
December 31, 2024
December 31, 2025
RMB
RMB
US$4
(in millions)
ASSETS
Current assets:
Cash and cash equivalents
7,474
10,386
1,485
Restricted cash
50
146
21
Short-term investments
3,603
4,894
700
Accounts receivable, net
817
723
104
Loan receivables - current, net
114
87
12
Amounts due from related parties, current
297
272
39
Inventories
60
57
8
Other current assets, net
800
870
124
Total current assets
13,215
17,435
2,493
Property and equipment, net
5,682
5,230
748
Intangible assets, net
4,776
5,028
719
Operating lease right-of-use assets
24,992
24,983
3,573
Finance lease right-of-use assets
2,272
2,394
342
Land use rights, net
174
155
22
Long-term investments
2,316
1,369
196
Goodwill
5,221
5,428
776
Amounts due from related parties, non-current
51
42
6
Loan receivables, net
190
132
19
Other assets, net
668
752
108
Deferred tax assets
1,054
1,157
165
Assets held for sale
1,941
669
96
Total assets
62,552
64,774
9,263
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt
880
5,337
763
Accounts payable
983
1,020
146
Amounts due to related parties
74
129
18
Salary and welfare payables
1,201
1,188
170
Deferred revenue
1,822
1,823
261
Operating lease liabilities, current
3,492
3,478
497
Finance lease liabilities, current
50
59
8
Accrued expenses and other current liabilities
4,006
4,902
702
Income tax payable
813
1,191
170
Total current liabilities
13,321
19,127
2,735
Long-term debt
4,546
479
68
Operating lease liabilities, non-current
23,634
23,653
3,382
Finance lease liabilities, non-current
2,843
3,063
438
Deferred revenue
1,351
1,602
229
Other long-term liabilities
1,472
1,925
276
Deferred tax liabilities
919
1,187
170
Retirement benefit obligations
111
109
16
Liabilities held for sale
2,084
671
96
Total liabilities
50,281
51,816
7,410
Equity:
Ordinary shares
0
0
0
Treasury shares
(274
)
(662
)
(95
)
Additional paid-in capital
9,620
9,653
1,381
Retained earnings
2,449
3,614
517
Accumulated other comprehensive income
382
199
28
Total H World Group Limited shareholders' equity
12,177
12,804
1,831
Noncontrolling interest
94
154
22
Total equity
12,271
12,958
1,853
Total liabilities and equity
62,552
64,774
9,263
__________________________4 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.9931 on December 31, 2025, as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
H World Group Limited
Unaudited Condensed Consolidated Statements of Comprehensive Income
Quarter Ended
Year Ended
December 31, 2024
September 30, 2025
December 31, 2025
December 31, 2024
December 31, 2025
RMB
RMB
RMB
US$
RMB
RMB
US$
(in millions, except shares, per share and per ADS data)
Revenue:
Leased and owned hotels
3,373
3,487
3,266
467
13,843
12,943
1,851
Manachised and franchised hotels
2,499
3,309
3,023
432
9,498
11,696
1,672
Others
151
165
236
34
550
668
95
Total revenue
6,023
6,961
6,525
933
23,891
25,307
3,618
Operating costs and expenses:
Hotel operating costs:
Rents
(1,100
)
(1,059
)
(1,046
)
(149
)
(4,365
)
(4,179
)
(597
)
Utilities
(155
)
(183
)
(154
)
(22
)
(690
)
(656
)
(94
)
Personnel costs
(1,393
)
(1,487
)
(1,468
)
(210
)
(5,326
)
(5,761
)
(824
)
Depreciation and amortization
(305
)
(304
)
(289
)
(41
)
(1,254
)
(1,190
)
(170
)
Consumables, food and beverage
(336
)
(337
)
(314
)
(45
)
(1,293
)
(1,221
)
(175
)
Others
(901
)
(692
)
(650
)
(93
)
(2,357
)
(2,332
)
(334
)
Total hotel operating costs
(4,190
)
(4,062
)
(3,921
)
(560
)
(15,285
)
(15,339
)
(2,194
)
Other operating costs
(5
)
(16
)
(23
)
(3
)
(31
)
(61
)
(9
)
Selling and marketing expenses
(296
)
(339
)
(379
)
(54
)
(1,176
)
(1,270
)
(182
)
General and administrative expenses
(725
)
(545
)
(545
)
(78
)
(2,508
)
(2,262
)
(321
)
Pre-opening expenses
(4
)
(12
)
(14
)
(2
)
(50
)
(41
)
(6
)
Total operating costs and expenses
(5,220
)
(4,974
)
(4,882
)
(697
)
(19,050
)
(18,973
)
(2,712
