H World Group reported revenue of RMB7.1 billion (US$1.1 billion) for the second quarter of 2026, representing a 10.8% increase from the same period last year.
The hotel group continued to expand its global footprint, reaching 13,539 hotels and 1,335,445 rooms in operation as of June 30, 2026.
Hotel turnover increased 13.2% year over year to RMB30.5 billion during the quarter, while revenue from manachised and franchised hotels rose 25.2% to RMB3.6 billion.
H World also raised its full-year 2026 revenue guidance and announced a new three-year shareholder return plan worth up to US$2.5 billion.
H World Hotel Network Reaches 13,539 Properties
At the end of June, H World operated 13,539 hotels globally.
The company’s H World China division accounted for 13,417 hotels, while H World International operated 122 properties.
H World also had 3,089 unopened hotels in its development pipeline, including 3,054 in China and 35 internationally.
During the second quarter alone, H World China opened 498 hotels and closed 176 properties.
Of the new openings, 497 were manachised or franchised hotels, reflecting the group’s continued shift towards an asset-light growth model.
H World China Revenue Grows 14.9%
Revenue from H World China reached RMB5.9 billion in Q2 2026, up 14.9% year over year.
Hotel turnover from the division increased 15.3%.
Average daily rate, or ADR, rose to RMB298, compared with RMB290 a year earlier.
Occupancy, however, declined slightly to 79.8% from 81.0% in the second quarter of 2025.
Blended RevPAR increased 1.1% year over year to RMB238.
For hotels that had been operating for at least 18 months, same-hotel RevPAR fell 3.0% to RMB233, largely due to a 2.4 percentage-point decline in occupancy.
Jin Hui, CEO of H World, said:
“During the second quarter, we delivered another quarter of RevPAR expansion. Our blended HWC ADR rose 2.6% year-on-year, fueling a 1.1% year-over-year lift in blended RevPAR. This performance was underpinned by ongoing product upgrades and a suite of revenue-management optimization initiatives.”
He added:
“Meanwhile, our hotel network kept expanding at a solid pace, with 498 newly-opened hotels across China; and the number of hotels in our pipeline grew both year-over-year and quarter-over quarter. We remain firmly on track to hit our full-year gross opening guidance of 2,200-2,300 hotels.”
H World International Revenue Falls 5.8%
H World International generated RMB1.3 billion in revenue, down 5.8% compared with the second quarter of 2025.
Hotel turnover for the international division declined 9.4%.
ADR increased to US$139, compared with US$137 a year earlier, while occupancy fell from 74.0% to 70.5%.
As a result, blended RevPAR declined from US$102 to US$98.
H World said the international business was affected by geopolitical tensions in the Middle East as well as expansion into Southeast Asian markets with lower room rates and properties still in their ramp-up phase.
Jin Hui said:
“In the second quarter of 2026, our HWI segment’s operational performance was negatively impacted by the Middle East conflict as well as our expansion into the developing South Eastern Asia countries which have lower ADRs and are still in the ramp-up period.”
He added:
“While tensions in the Middle East persist, we believe our HWI segment will show resilience given its low exposure to the region and our continuous efficiency improvement and cost optimization efforts.”
Net Income Reaches RMB1.6 Billion
Net income attributable to H World Group was RMB1.6 billion (US$232 million) in the second quarter.
That compares with RMB1.5 billion in Q2 2025 and RMB817 million in the first quarter of 2026.
EBITDA reached RMB2.6 billion, compared with RMB2.5 billion a year earlier.
Adjusted EBITDA increased to RMB2.7 billion, up from RMB2.3 billion in the second quarter of 2025.
Operating Margin Improves to 31.1%
Income from operations increased 24.1% year over year to RMB2.2 billion.
Operating margin improved to 31.1%, compared with 27.8% a year earlier and 24.8% in the previous quarter.
H World attributed the improvement partly to the growing contribution from its manachised and franchised business.
Franchise and Manachised Revenue Jumps 25.2%
Revenue from manachised and franchised hotels reached RMB3.6 billion in Q2, up 25.2% year over year.
The segment accounted for an increasing share of H World’s business as the company continues its asset-light expansion strategy.
For the first half of 2026, manachised and franchised hotel revenue rose 22.9% to RMB6.6 billion and represented 50.3% of total group revenue, compared with 45.4% in the first half of 2025.
By contrast, revenue from leased and owned hotels declined 4.9% year over year during the second quarter to RMB3.2 billion.
H World Raises Full-Year 2026 Guidance
Following its second-quarter performance, H World raised its revenue growth forecast for the full year.
The company now expects group revenue growth of between 4% and 8% in 2026, up from its previous forecast of 2% to 6%.
H World China revenue is expected to grow between 7% and 11%, compared with previous guidance of 5% to 9%, excluding DH.
The company also increased its expected growth range for manachised and franchised revenue to 16% to 20%, up from 12% to 16%.
H World Announces US$2.5 Billion Shareholder Return Plan
H World’s board has approved a new three-year shareholder return plan worth up to US$2.5 billion, effective from August 17, 2026.
The programme may include ordinary or special dividends as well as share repurchases.
As part of the plan, the board declared an ordinary cash dividend of approximately US$275 million.
The dividend is equivalent to US$0.087 per ordinary share or US$0.87 per American Depositary Share.
Shareholders of record as of September 8, 2026 will be eligible for the payment.
H World Reports RMB13.1 Billion Revenue for First Half of 2026
For the first six months of the year, H World generated RMB13.1 billion (US$1.9 billion) in revenue, an increase of 11.0% compared with the first half of 2025.
H World China revenue increased 13.8% to RMB10.9 billion, while international revenue declined 1.4% to RMB2.2 billion.
Adjusted EBITDA for the first half reached RMB4.6 billion, compared with RMB3.8 billion a year earlier.
At the end of June, the group held RMB14.2 billion in cash and cash equivalents and had total debt of RMB4.2 billion.
With more than 13,500 hotels already operating and another 3,089 properties in the pipeline, H World continues to focus on expanding its hotel network while increasing the share of revenue generated through its asset-light management and franchise model.
