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Sep 30, 2025
Huazhu Q3 2025 Earnings Report
H World Group Limited reported its Q3 2025 earnings with solid revenue growth and improved profitability.
Key Takeaways
H World exceeded expectations in Q3 2025, driven by strong growth in its manachised and franchised segment, improved operating margin, and a year-over-year increase in net income. Revenue surpassed the high-end of guidance while the asset-light strategy continued to show operational leverage.
Total revenue reached $978 million, up from $904 million last year.
Net income increased to $206 million, supported by stronger performance in the Legacy-Huazhu segment.
Adjusted EBITDA rose to $354 million from $296 million in Q3 2024.
Manachised and franchised revenue saw a 27.2% year-over-year jump.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
H World expects Q4 2025 revenue to grow between 2% and 6% YoY, with strong growth continuing in the M&F segment.
Positive Outlook
- Revenue growth guidance of 2%-6% YoY for Q4 2025.
- M&F segment expected to grow 17%-21% YoY in Q4.
- Continued asset-light expansion strategy supporting profitability.
- Strong pipeline of 2,748 unopened hotels.
- Legacy-Huazhu maintaining high occupancy and RevPAR levels.
Challenges Ahead
- Legacy-DH revenue decreased 3.0% YoY.
- Same-hotel RevPAR declined 4.7% YoY in Legacy-Huazhu.
- Leased and owned hotel revenue declined 5.5% YoY.
- Net cash outflow in investing activities due to capital expenditures and investments.
- Foreign exchange fluctuations continue to impact results.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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