Q2 25 EPS
$4.85
BEAT +17.76%
Est. $4.12
Q2 25 Revenue
$897.0M
MISS 85.72%
Est. $6.28B
vs S&P Since Q2 25
+8.8%
BEATING MARKET
HTHT +23.8% vs S&P +15.0%
Market Reaction
Did HTHT Beat Earnings? Q2 2025 Results
H World Group delivered a standout earnings beat in Q2 2025, posting EPS of $4.85 against a consensus estimate of $4.12, a 17.76% positive surprise, even as reported revenue of $897.00 million fell 85.4% year-over-year and came in well below the $6.2… Read more H World Group delivered a standout earnings beat in Q2 2025, posting EPS of $4.85 against a consensus estimate of $4.12, a 17.76% positive surprise, even as reported revenue of $897.00 million fell 85.4% year-over-year and came in well below the $6.28 billion consensus estimate. The key driver behind the earnings strength was a decisive shift toward the company's asset-light manachised and franchised model, which now represents 92% of total rooms and pushed operating margins to 27.8% from 25.6% a year ago, with higher-margin franchise fees lifting net income attributable to H World by 44.7% to $215.00 million. The company added 595 gross hotel openings in the quarter, bringing its global network to 12,137 hotels across 19 countries, and kept its full-year 2025 target of 2,300 gross openings intact. Shares rose in premarket trading following the print, reflecting investor confidence in the franchise-led strategy. Looking ahead, management guided for Q3 2025 total revenue growth of 2%-6%, with manachised and franchised revenue expected to grow 20%-24%, even as executives acknowledged near-term headwinds from rising supply and soft corporate travel demand.
Key Takeaways
- • Continued manachised and franchised hotel network expansion driving 22.8% YoY revenue growth in that segment
- • Asset-light strategy reducing hotel operating costs as a percentage of revenue by 2.3 percentage points YoY
- • Operating margin improvement to 27.8% from 25.6% YoY due to higher revenue contribution from franchise model
- • Legacy-DH RevPAR increase of 8.1% driven by 5.6 percentage-point occupancy improvement
- • Net income growth of 44.7% YoY to RMB 1.5 billion
HTHT YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
HTHT Revenue by Segment
With YoY comparisons, source: SEC Filings
HTHT Revenue by Geography
Regional revenue distribution
“Supported by our asset-light strategy, we delivered robust operating profit growth in the second quarter driven by network expansion, despite a modest year-over-year RevPAR decline. On the development front, we opened another 595 hotels in the quarter, well on track of achieving our 2,300 gross opening target for the full year of 2025. We remain cautious on the near-term industry outlook given the macro uncertainties, rising supply, and relatively soft corporate travel demand. Nevertheless, we are positive on the long-term growth for China's travel and hospitality industry. We will continue focusing on building our own core competencies, expanding our high-quality network, upgrading our supply chain, enhancing our brand positioning and 'service excellence', and strengthening our sales capabilities.”
— Jin Hui, Q2 2025 Earnings Press Release
HTHT Earnings Trends
HTHT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
HTHT EPS Trend
Earnings per share: estimate vs actual
HTHT Revenue Trend
Quarterly revenue: estimate vs actual
HTHT Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $3.89 | $0.34 | -91.27% | $869.0M | -85.29% |
| Q4 25 MISS FY | $2.43 | $0.05 | -97.94% | $6.53B | +2.06% |
| FY Full Year | — | $0.96 | — | $25.31B | — |
| Q3 25 BEAT | $4.76 | $4.76 | +0.10% | $6.96B | +3.13% |
| Q2 25 BEAT | $4.12 | $4.85 | +17.76% | $897.0M | -85.72% |
| Q1 25 MISS | $3.02 | $2.85 | -5.53% | $5.40B | -2.53% |