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1179 — H World News Story

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China's H World Group Q2 revenue rises on segment growth

China's H World Group Q2 revenue rises on segment growth


Overview

  • China hotel operator's Q2 revenue rose 10.8% yr/yr to RMB7.1 bln

  • Q2 net income attributable climbed to RMB1.6 bln yr/yr

  • Company declared cash dividend totaling $275 mln


Outlook

  • H World raised 2026 group revenue growth guidance to 4%-8% from 2%-6%

  • Company expects HWC segment 2026 revenue growth of 7%-11%, up from 5%-9%

  • M&F segment 2026 revenue growth guidance raised to 16%-20% from 12%-16%


Result Drivers

  • CHINA SEGMENT GROWTH - Revenue from H World China segment rose 14.9% yr/yr, helping drive overall group revenue higher

  • MANACHISE & FRANCHISE EXPANSION - Manachised and franchised hotel revenue increased 25.2% yr/yr to RMB3.6 bln

  • INTERNATIONAL SEGMENT DECLINE - H World International segment revenue fell 5.8% yr/yr, offsetting some gains from China


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

RMB 7.10 bln

Q2 Net Income Attributable

RMB 1.60 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

  • Wall Street's median 12-month price target for H World Group Ltd is $60.00, about 43.3% above its August 14 closing price of $41.88

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Aug 14 - Hong Kong's Miramar Hotel interim revenue falls on travel business weakness

  • Aug 14 - Singapore's OUE Limited half-year revenue rises on hospitality growth

  • Aug 14 - Singapore's Hotel Properties H1 revenue falls on travel drops due to Middle East conflict


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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