H World Group Ltd
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.15%.
Did HTHT Beat Earnings? Q4 2025 Results
H World Group delivered a standout fourth quarter for fiscal 2025, posting revenue of $6.53 billion, up 8.3% year-over-year, and earnings per share of $0.05, with results clearing the company's own guidance range of 2%-6% growth across key metrics. The headline driver was a dramatic margin expansion story: Q4 operating margin surged to 29.1% from just 15.0% a year earlier, fueled by the ongoing asset-light transformation that pushed management and franchise revenue to 56.2% of Legacy-Huazhu segment sales, up from 49.3% in fiscal 2024. Net income attributable to the company rocketed to $1.17 billion in the quarter, compared to just $49.00 million in the prior-year period, with Legacy-DH swinging to an Adjusted EBITDA of $329.00 million from a loss of $247.00 million. <a href="https://247wallst.com/investing/2026/03/09/h-world-netflix-and-jd-com-are-getting-fresh-analyst-coverage-across-global-consumer-markets/">Analysts covering H World</a> will now parse guidance calling for 2%-6% total revenue growth in fiscal 2026, with M&F revenue expected to climb 12%-16% as the company targets 2,200-2,300 new hotel openings.
- Asset-light M&F model transformation driving operating margin expansion from 15.0% to 29.1% YoY in Q4
- M&F revenue grew 21.0% YoY in Q4, now 56.2% of Legacy-Huazhu revenue vs 49.3% prior year
- Rapid network expansion with 2,444 new hotels opened in FY2025
- RevPAR returned to positive YoY growth in Q4 for Legacy-Huazhu at 2.0%
- Legacy-DH turnaround with Adjusted EBITDA swinging from -RMB247M to +RMB329M in Q4
- Hotel operating costs as percentage of revenue declined in both segments
- SG&A expenses declined 9.5% YoY in Q4
“2025 marked our 20th anniversary. I am pleased to see that we opened a total of 2,444 new hotels throughout the year, representing another year of rapid network expansion. More importantly, driven by our ongoing product upgrades and a series of revenue management optimization initiatives, our RevPAR year-on-year performance started to improve from the third quarter and returned to positive growth in the fourth quarter. Looking ahead, we will continue to pursue high-quality hotel network expansion, strengthen our brand positioning and 'service excellence', enhance member-centric sales capabilities underpinned by the H Rewards membership program, and further deepen technology and AI empowerment.”
H World Group CEO, on the earnings call
Forward Guidance & Outlook
For FY2026, H World expects total revenue growth of 2%-6% compared to FY2025, or 5%-9% excluding DH. M&F revenue growth is expected in the range of 12%-16%. The company expects to open 2,200-2,300 hotels and close 600-700 hotels during FY2026.
HTHT YoY Financials
HTHT Revenue by Segment
HTHT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.