NASDAQ$HTHT

Huazhu Group Ltd-ADR · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

H World Q2 2025: revenue up 4.5% to RMB 6.43B as asset-light franchised hotels drive margin expansion

H World Group reported Q2 2025 unaudited results for the quarter ended June 30, 2025, with revenue rising 4.5% year over year to RMB 6.43 billion despite modest RevPAR pressure in China. Manachised and franchised revenue jumped 22.8% to RMB 2.87 billion while leased-and-owned revenue declined 7.6% as the company continued shifting toward an asset-light model. Net income attributable to H World was RMB 1.54 billion, up 44.7%, and operating margin improved to 27.8% from 25.6%. Legacy-Huazhu revenue grew 5.7% to RMB 5.1 billion and the global network reached 12,137 hotels with 1.18 million rooms. The board declared a H1 2025 cash dividend of about $250 million and guided Q3 2025 revenue growth of 2%-6%.

  • Q2 revenue rose 4.5% to RMB 6.43B; manachised and franchised revenue climbed 22.8% to RMB 2.87B.
  • Net income attributable to H World was RMB 1.54B, up 44.7%, with operating margin expanding to 27.8%.
  • Legacy-Huazhu revenue grew 5.7% to RMB 5.1B; Legacy-DH revenue was roughly flat at RMB 1.3B.
  • The company operated 12,137 hotels with 1.18M rooms and opened 595 Legacy-Huazhu hotels in the quarter.
  • Q3 2025 revenue is expected to grow 2%-6% YoY, or 4%-8% excluding DH; manachised/franchised revenue growth guided at 20%-24%.

Headline financials

Total Revenue

¥6.43B

Previous: ¥849M+657.0%
EPS (adj)

¥0.42

Previous: ¥0.53-20.8%
Legacy-Huazhu blended RevPAR

¥235.00

No prior period
Hotel turnover

¥26.9B

No prior period
Hotels in operation

12.1K

No prior period
Net Income

¥1.54B

Previous: ¥147M+948.0%
Operating Income

¥1.79B

Previous: ¥207M+763.5%

Revenue & EPS history

Huazhu · Revenue · Quarterly

¥6.43B

Q2 2025+657%vs Q2 2024
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Forward guidance

For Q3 2025, H World expects consolidated revenue growth of 2%-6% year over year, or 4%-8% excluding DH, with manachised and franchised revenue growth of 20%-24%.

Tailwinds

  • Asset-light manachised and franchised revenue expected to grow 20%-24% in Q3.
  • Legacy-Huazhu network expansion remains on track toward 2,300 gross openings in 2025.

Headwinds

  • Management remains cautious on near-term industry outlook given macro uncertainty and rising supply.
  • Legacy-Huazhu same-hotel RevPAR declined 7.9% in Q2 amid softer corporate travel demand.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-0.4%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+1.4%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+15.1%

Q1 2015

Best reaction

-15.6%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%+2.6%-1.6%
Q3 2025+2.7%+0.3%+8.6%
Q2 2025+5.3%+6.9%+16.3%
Q1 2025-1.7%-2.3%-10.2%
Q4 2024-0.9%-1.9%-9.4%
Q3 2024-8.9%-8.5%-3.3%
Q2 2024-1.7%+0.2%+2.9%
Q1 2024-5.5%-12.2%-18.8%
Q4 2023-6.3%-5.5%-7.2%
Q3 2023-0.2%-4.7%-7.1%
Q2 2023-10.4%-8.4%-11.9%
Q1 2023-2.5%+6.6%+3.1%
Q4 2022+0.9%+3.1%-2.8%
Q3 2022+8.2%+19.6%+26.2%
Q2 2022-10.2%-12.4%-11.1%
Q1 2022+5.7%+4.3%+21.5%
Q4 2021-3.2%-4.1%-11.9%
Q3 2021-15.6%-16.7%-20.7%
Q2 2021+3.7%+1.9%+4.5%
Q1 2021-0.2%+1.6%-5.3%
Q4 2020-4.4%-4.2%+6.2%
Q3 2020-1.7%-9.1%-12.1%
Q2 2020-4.0%+3.0%+2.8%
Q1 2020-7.4%-3.4%-2.8%
Q4 2019-6.7%-3.5%-2.9%
Q3 2019-2.0%-0.4%-7.0%
Q2 2019-1.8%-3.7%+5.0%
Q1 2019-8.6%-11.5%+0.9%
Q4 2018+10.3%+15.2%+24.1%
Q3 2018+6.4%-1.2%+7.1%
Q2 2018+0.5%+8.2%-3.7%
Q1 2018+12.3%+15.2%+27.0%
Q4 2017-14.5%-12.6%-15.2%
Q3 2017-10.9%-6.8%+22.0%
Q2 2017+9.0%+15.2%+11.9%
Q1 2017+8.1%+4.8%+8.8%
Q4 2016+2.2%+4.2%+2.3%
Q3 2016+0.6%-0.6%+9.7%
Q2 2016+1.9%+1.6%+7.0%
Q1 2016-2.5%
Q4 2015+9.1%
Q3 2015-1.7%
Q2 2015+6.1%
Q1 2015+15.1%
Q4 2014-12.7%
Q3 2014-3.6%
Q2 2014+7.2%
Q1 2014+3.8%
Q4 2013-2.7%
Q3 2013+6.6%
Q2 2013-1.0%
Q1 2013+1.3%
Q4 2012-10.8%
Q3 2012+3.7%
Q2 2012+1.0%
Q4 2010-0.9%
Q4 2011-0.9%
Q4 2009-0.9%
Q1 2012+1.9%
Q3 2011-3.3%
Q2 2011-6.8%
Q1 2011+3.3%
Q3 2010+8.0%
Q2 2010+8.0%
Q1 2010-3.2%

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