H World Group Posts Strong Q1 2026 Growth as Revenue, Profit, and Hotel Network Expand

H World Group, the hotel company listed on Nasdaq under the ticker HTHT, reported a strong first quarter for 2026, supported by higher revenue, stronger profit margins, and continued expansion across China and international markets.

The company said first-quarter revenue rose 11.1% year over year to CNY 6.0 billion, while adjusted net income increased 38.6% to CNY 1.1 billion. The performance was mainly helped by growth in its managed and franchised hotel business, which continues to support a more asset-light operating model.

China Business Remains the Main Growth Driver

H World’s China business delivered solid results during the quarter. Revenue from H World China rose 12.4% to CNY 5.0 billion. The company said the improvement came from a larger hotel network and better revenue per available room, commonly known as RevPAR.

Blended RevPAR in China increased 3.0% year over year. Management said this reflected better pricing, improved revenue management, product upgrades, and a healthier competitive environment in the hotel market.

Hotel Network Continues to Expand

At the end of the first quarter, H World China operated 13,095 hotels and had another 2,865 hotels in its development pipeline. Together, the company’s operating and pipeline hotels covered 1,461 cities in China.

H World said it remains focused on a long-term goal of reaching 2,000 cities and 20,000 hotels. Its strategy continues to center on economy, midscale, and upper-midscale hotel brands.

Asset-Light Model Supports Profit Growth

A key reason for the stronger profit performance was the company’s growing managed and franchised hotel business. Revenue from this segment increased 20.3% year over year to CNY 3.0 billion.

Gross operating profit from the managed and franchised business rose 20.7% to CNY 1.9 billion, with a gross operating margin of 63.6%. This shows how the asset-light model is helping H World improve efficiency while expanding its hotel footprint.

International Business Shows Progress

H World International also reported improvement. First-quarter international RevPAR rose 5.0% year over year, helped by higher average daily rates and better occupancy.

The company is paying special attention to Southeast Asia, using Singapore as a regional hub. It has already opened hotels in markets such as Vietnam, Laos, and Cambodia. Management said these early moves are part of a wider plan to grow beyond China.

Management Highlights Travel Demand and Cost Control

Chief Executive Officer Jin Hui said domestic travel demand in China gained momentum in 2026. He pointed to stronger holiday travel, higher tourism activity, and visa-free policies that support inbound tourism.

Chief Financial Officer Arthur Yu said the company expects margins to keep improving as H World continues to focus on cost controls, revenue management, rent reductions, and a larger contribution from franchised and managed hotels.

Balance Sheet and Shareholder Returns

H World ended the quarter with CNY 15.8 billion in cash and cash equivalents. The company also reported a net cash position of CNY 9.6 billion, giving it flexibility for future business expansion and shareholder return plans.

Management said it remains committed to shareholder returns, although no new specific plan was announced during the earnings call.

Outlook for 2026

H World maintained its full-year 2026 guidance for a slight increase in RevPAR. The company also kept its hotel opening and closure expectations unchanged.

Overall, the first-quarter results suggest that H World Group is benefiting from stronger travel demand, a growing hotel network, better operating efficiency, and a continued shift toward an asset-light business model.

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