H World Group Reports Strong Q2 Growth and Emphasizes Transparency in Hospitality
- H World Group reports a 22.8% increase in asset-light revenues, emphasizing its manachised and franchised hotel strategy.
- The company enhances transparency by separating financial results for manachised/franchised hotels from leased/owned properties.
- Celebrating its 20th anniversary, H World Group operates 12,137 hotels and plans 2,300 openings in 2025.
H World Group Celebrates Growth and Transparency in the Hospitality Sector
H World Group Limited, a leading player in the hospitality industry, showcases significant advancements in its second-quarter results for 2025. The company achieves a remarkable 22.8% year-on-year increase in asset-light revenues, reflecting its strategic focus on expanding its manachised and franchised hotel operations. During this quarter, H World Group's hotel turnover rises by 15.0%, reaching RMB 26.9 billion, while adjusted EBITDA climbs 11.3% to RMB 2.3 billion. This growth trajectory highlights the effectiveness of the company’s asset-light model, which allows for greater flexibility and lower operational costs compared to traditional ownership models.
In a notable move towards enhancing operational transparency, H World Group separates its financial results for the first time between manachised and franchised hotels and its leased and owned properties. This decision not only provides stakeholders with clearer insights into the company's performance but also underscores its commitment to accountability in the competitive hospitality landscape. The gross operating profit for manachised and franchise hotels hits RMB 1.9 billion, marking a significant 23.2% year-on-year increase and contributing to 64% of the total gross operating profit. CEO Jin Hui attributes this success to the asset-light strategy and ongoing network expansion, which, despite a slight decline in Revenue Per Available Room (RevPAR), positions the company favorably.
As H World Group celebrates its 20th anniversary, it continues to strengthen its global footprint, operating a total of 12,137 hotels with 1,184,915 rooms as of June 30. This includes the renowned Hanting Hotel, which secures the top spot on HOTELS Magazine's "World's Top 50 Hotel Brands" list, featuring 4,401 hotels and 378,569 rooms in operation. The Group's expansion into the upper-midscale market is particularly noteworthy, with over 1,500 hotels either operational or in the pipeline across China. This growth is driven by robust demand for higher-end offerings, especially through the InterCity Hotel brand, which experiences an impressive year-on-year growth of 57.1%.
In addition to its strong financial performance, H World Group's strategy of rapid expansion includes the opening of 595 hotels during the quarter, keeping the company on track to achieve its ambitious target of 2,300 gross openings for 2025. This aggressive expansion strategy not only solidifies its market position but also responds to the evolving preferences of travelers seeking diverse and high-quality accommodation options. The company’s focus on growth and transparency demonstrates its commitment to meeting the demands of a dynamic hospitality industry.