The latest financial report disclosed by H World Group (01179, HTHT.US) clearly conveys the brand momentum and growth resilience demonstrated by this benchmark Chinese hotel company. For H World Group, 2025 is undoubtedly a highly significant milestone year. Founded in 2005, this domestic hotel leader has, over the past two decades, followed a clear and steady development path under the strategic vision and efficient execution of its management—evolving from a single brand to multiple brands, from economy to upscale segments, and from scale expansion to lean growth. The newly released financial results for the fourth quarter and full year of 2025 serve as a concentrated assessment of the effectiveness of H World Group's long-term strategies of "Deep Cultivation in China" and "Brand Leadership."

In 2025, H World Group's gross turnover increased by 16.4% year-on-year to RMB 108.1 billion, revenue rose by 5.9% to RMB 25.3 billion, adjusted net profit grew by 32.9% to RMB 4.9 billion, and the number of hotels in operation surpassed 12,858. More important than the figures, however, are the underlying structural changes: Hanting Hotels became the global leader in number of guest rooms, Ji Hotel jumped to fourth place globally, and Orange Hotel crossed the 1,000-store threshold. These three core brands have established leading positions in their respective segments, forming the cornerstone of H World Group's brand portfolio.

H World Group is now demonstrating a more advanced level of momentum: its brands are self-renewing, actively attracting traffic, capital, and premium properties. The continuously evolving company is poised to lead the Chinese hotel industry in redefining growth value. Since 2023, the previously high-growth hotel industry has entered a phase of adjustment, with supply and demand moving towards rebalancing. Against this backdrop, H World Group, as an industry benchmark, has consistently led supply-side reforms through its own high-quality growth. The financial report highlights that despite a mixed environment of opportunities and challenges, the company's core brand trio showed simultaneous improvement in both scale and quality.

Hanting Hotels, as the world's largest hotel brand by room count, saw its new-format hotels increase to 49% of its total by the end of 2025. From Ali County in Tibet at 4,700 meters above sea level to the extreme cold of Mohe in northern China, Hanting is becoming a "new infrastructure" for national travel with its "quality yet affordable" experience. Ji Hotel, which integrates Eastern aesthetics into its accommodations, is not far behind, ranking fourth globally in room count, with an impressive 82% of its properties being new-format hotels. Orange Hotel, H World Group's key brand for attracting younger customers in the mid-scale segment, also achieved a milestone in 2025 by surpassing 1,000 stores, with new-format hotels accounting for 76% of the total.

Beyond the steady growth of Hanting, the mid-scale leadership of Ji, and the rapid development of Orange, H World Group has also made significant strides in the upper-mid-scale and upscale segments. In 2025, its brands such as IntercityHotel and Crystal Hotel achieved their阶段性发展目标, with IntercityHotel reaching over 100 properties in just three years and Crystal Hotel exceeding 300 hotels, driving a 17.6% year-on-year increase in the company's upper-mid-scale and upscale hotel count. This reflects H World Group's core development strategy, which has long moved beyond mere scale expansion to focus on strategic, orderly product iteration and continuously raising hotel standards, thereby pushing the entire industry from simply "having a place to stay" towards "staying well."

For a company aiming to "redo the Chinese hotel industry," driving supply-side reform requires not only creating excellent products but also ensuring that high-quality supply reaches as many people as possible. To this end, in 2025, H World Group continued to deepen its penetration into lower-tier cities. Data shows that the number of its hotels in fourth-tier cities and below increased by 30% year-on-year, while room nights sold in these markets grew by 36.3%, indicating successful efforts to meet lodging demand with quality supply.

This year marks the beginning of China's 15th Five-Year Plan period. Under policy guidance emphasizing "boosting consumption," "expanding effective investment," and "meeting the people's needs for a better life," the quality improvement of service consumption has been placed at an unprecedented height. This clear policy direction provides valuable guidance for companies like H World Group to convert brand momentum into sustainable growth动能. As CEO Jin Hui previously stated, "Against the backdrop of China's efforts to expand consumption and stimulate domestic demand, we will deepen our presence in the Chinese market and strive to build H World into a world-class hotel group, making 'Chinese service' resonate globally."

Technology is a key enabler for H World Group to efficiently translate brand momentum into service efficiency. The "AI In-Stay Service," developed in collaboration with Tencent, now covers over 3,200 hotels, integrating large model capabilities into hotel service scenarios to enhance operational efficiency and customer satisfaction through intelligent experiences. Furthermore, H World Group pioneered the unmanned "Hua Zhang Gui" self-check-in kiosk, allowing guests to complete check-in—from ID scanning to receiving a room key—in as little as 10 seconds. The new-format Ji Hotels incorporate automotive-grade smart room controls; guests can easily adjust air conditioning, curtains, TVs, and ambient lighting simply by saying, "Hello H World." Such examples are numerous, reflecting the company's effort to redefine every aspect of hotel operations through digital intelligence, productizing the brand experience, and enhancing guest stays with standardized, high-quality service.

Deep operation of its membership ecosystem is another secret to H World Group's sustained brand amplification. By the end of 2025, room nights booked by Huazhu Rewards members reached 245 million, a 21.5% year-on-year increase. After turning "traffic" into "retention," the company is exploring further possibilities. For instance, to better leverage its role in boosting consumption, H World Group has partnered with ecosystem allies like DiDi Chuxing, Alipay, Tencent, China UnionPay, Bank of China, and SF Express, extending inclusive benefits from lodging to various consumer scenarios encompassing "dining, accommodation, transportation, travel, shopping, and entertainment."

If technological innovation acts as an "amplifier" of brand momentum and the membership ecosystem serves as a "reservoir" of brand value, then ESG is crucial for H World Group's long-term, stable development. In 2025, H World Group's MSCI ESG rating was upgraded from BBB to A, making it the first Chinese hotel group to achieve an A rating. This upgrade stems from the company's solid efforts to embed sustainable development principles throughout its operations. For example, at H Hotel fully self-service properties, over 20% of construction materials are recyclable after the hotel's lifecycle, and eco-friendly guest amenities like straw-based toothbrushes have achieved 100% coverage, promoting energy savings and plastic reduction. These initiatives represent tangible actions by H World Group to fulfill its social responsibilities and advance sustainable development within the industry and society.

When a company proactively assumes social responsibilities beyond commercial objectives, its brand transcends being merely a commercial entity and becomes a "trusted industrial force." This is perhaps the most difficult-to-replicate aspect of H World Group's brand momentum—it cannot be bought with capital alone but requires time, ingrained values, and a consistent long-term philosophy.

Looking further ahead, H World Group's brand momentum is also extending overseas. In 2025, the average revenue per available room for H World International increased by 8.2% year-on-year, indicating a stabilization and recovery of its overseas business. During the year, the Steigenberger Hotel in Baden-Baden, Germany, reopened after renovation, symbolizing H World Group's steady progression from "H World of China" to "H World of the World."

Reviewing H World Group's financial report, it is evident that as brand momentum continues to strengthen, the company's growth certainty becomes increasingly clear. From an investment perspective, through the inclusive appeal of Hanting, the cultural export of Ji Hotel's Eastern aesthetics, quality democratization in lower-tier cities, and breakthroughs in the upper-mid-scale segment, H World Group is reshaping the value core of China's hotel industry with its powerful brand momentum. A company that truly builds its brand into a core asset is, over time, deepening its own "moat." For investors, the long-term certainty of H World Group is undoubtedly clear.