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Mar 31, 2025
Huazhu Q1 2025 Earnings Report
H World Group reported modest growth in Q1 2025, led by its manachised and franchised hotel segment.
Key Takeaways
Revenue rose slightly to $744 million, driven by network expansion in China. Profitability improved with a $123 million net income. The company saw gains in its asset-light operations, despite weaker performance from its Legacy-DH segment.
Revenue reached $744 million, a 2.2% year-over-year increase.
Net income rose to $123 million from $659 million in Q1 2024.
Manachised and franchised hotel revenue increased to $344 million.
Adjusted EBITDA came in at $206 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
H World expects low to mid-single digit revenue growth in Q2 2025, with strong performance from its manachised and franchised hotels offsetting headwinds in the Legacy-DH segment.
Positive Outlook
- Expected revenue growth of 1%-5% year-over-year.
- Manachised and franchised revenue projected to grow 18%-22%.
- Asset-light strategy continues to support margins.
- Expansion plan remains on track with 2,300 hotel openings projected for 2025.
- Improved operational efficiency across China portfolio.
Challenges Ahead
- Legacy-DH segment revenue declined 11.3% YoY.
- RevPAR under pressure from macroeconomic uncertainty.
- Same-hotel performance decreased across both ADR and occupancy.
- Foreign exchange volatility remains a risk.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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