H World Group

HTHT Q1 2025 Earnings

Reported May 20, 2025 at 6:30 AM ET · SEC Source

Q1 25 EPS

$2.85

MISS 5.53%

Est. $3.02

Q1 25 Revenue

$5.40B

MISS 2.53%

Est. $5.54B

vs S&P Since Q1 25

-3.5%

TRAILING MARKET

HTHT +20.2% vs S&P +23.7%

Market Reaction

Did HTHT Beat Earnings? Q1 2025 Results

H World Group delivered a softer-than-expected first quarter, with earnings per share of $2.85 falling 5.53% short of the $3.02 consensus and revenue of $5.39 billion missing estimates by 2.53%, though the top line still managed 2.2% year-over-year g… Read more H World Group delivered a softer-than-expected first quarter, with earnings per share of $2.85 falling 5.53% short of the $3.02 consensus and revenue of $5.39 billion missing estimates by 2.53%, though the top line still managed 2.2% year-over-year growth and landed within the company's own guidance range of 0% to 4%. The clearest drag on same-hotel performance came from China, where blended RevPAR slipped 3.9% to RMB 208 and same-hotel RevPAR fell 8.3% on weaker average daily rates and softer occupancy, reflecting the macroeconomic headwinds CEO Jin Hui flagged as an ongoing concern. Yet the structural story remained intact: manachised and franchised revenue surged 21.1%, reinforcing the asset-light pivot, while net income jumped 35.7% year-over-year to $894 million, partly aided by a $208 million foreign exchange gain. The company added 694 gross hotel openings in China during the quarter, keeping its full-year target of roughly 2,300 openings within reach, and guided Q2 revenue growth of 1% to 5%, with the higher-margin franchise segment again expected to grow 18% to 22%.

Key Takeaways

  • Continued hotel network expansion with 694 gross openings in Q1 2025
  • Manachised and franchised revenue grew 21.1% YoY driven by asset-light network expansion
  • Operating margin improvement to 20.1% from 19.0% due to higher manachised/franchised revenue mix
  • Legacy-DH blended RevPAR increased 12.7% YoY in EUR terms with 5.3 percentage-point occupancy gain
  • RMB 208 million foreign exchange gain vs RMB 92 million loss in prior year
  • Legacy-DH restructuring and cost optimization drove 11.1% decline in DH SG&A
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HTHT YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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HTHT Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
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HTHT Revenue by Geography

Regional revenue distribution

“During the first quarter of 2025, we continued our rapid network expansion with 694 new hotel openings in China, and on track to achieve our full-year target of approximately 2,300 gross hotel openings. However, we maintain an overall cautious stance amid ongoing tariff and macroeconomic uncertainties. To achieve sustainable long-term growth, we will continue advancing our asset-light strategy, focusing on high-quality network expansion, enhancing brand positioning and 'service excellence', and strengthening sales capabilities centred around our H Rewards membership program.”

— Jin Hui, Q1 2025 Earnings Press Release