H World Group reported third‑quarter 2025 results that exceeded both revenue and earnings expectations, with total revenue reaching 7.0 billion RMB (US$978 million) – an 8.1% year‑over‑year increase – and adjusted earnings per share of $0.67, beating the consensus estimate of $0.64 by $0.03 (4.7%). The company’s adjusted EBITDA climbed to 2.5 billion RMB, up from 2.1 billion RMB in Q3 2024, reflecting stronger operating leverage and disciplined cost management.
H World Group’s revenue mix continued to shift toward its asset‑light model. Manachised and franchised (M&F) revenue grew 27.2% YoY to 3.3 billion RMB, driven by robust demand for new hotel openings and higher average daily rates in the mid‑scale segment. In contrast, revenue from the legacy‑direct‑hotel (Legacy‑DH) segment fell 3.0% YoY, and revenue from leased and owned hotels declined 5.5% YoY, underscoring the company’s strategic pivot away from capital‑intensive operations.
The company opened 749 new hotels during the quarter, bringing the year‑to‑date total to just over 2,000 and keeping it on track to hit the 2,300‑hotel target set for 2025. H Rewards membership surpassed 300 million members, and the program generated 66 million room nights booked in the quarter, illustrating the growing value of the company’s digital ecosystem.
Cash and cash equivalents at the end of September 2025 were 7.1 billion RMB, a decline from 13.7 billion RMB reported at the end of Q2. The reduction reflects cash outlays for new hotel openings and capital investments in the loyalty platform, while operating cash flow for the quarter was strong, supporting continued investment and shareholder returns.
For the fourth quarter, management guided for revenue growth of 2%–6% year‑over‑year (3%–7% excluding DH) and M&F revenue growth of 17%–21%. The guidance signals confidence in sustained demand for the company’s asset‑light portfolio and the continued expansion of its loyalty program, while also acknowledging the ongoing transition away from legacy‑DH operations.
CEO Jin Hui highlighted the quarter as a “strong performance that demonstrates the effectiveness of our asset‑light strategy and the momentum of our network expansion.” He noted that the company remains on track to reach its 2025 hotel‑opening target and that the growth of H Rewards is a key driver of future revenue and profitability.
Analysts noted that the earnings beat and revenue growth were driven by higher average daily rates and increased occupancy in the M&F segment, while the decline in Legacy‑DH revenue was viewed as a controlled shift toward higher‑margin operations. The company’s guidance for Q4 and the full year reflects a balanced outlook, with expectations of continued margin expansion and disciplined cost control.
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