HWORLD-S (01179) Reports Interim Results with Net Profit Attributable to Shareholders of RMB 2.438 Billion, Up 41.25% YoY

Stock News
Aug 20

HWORLD-S (01179) announced its unaudited financial results for the second quarter and interim period of 2025. For the second quarter of 2025, the company achieved total revenue of RMB 6.426 billion, representing a 4.52% year-on-year increase; net profit attributable to shareholders reached RMB 1.544 billion, up 44.7% year-on-year; and basic earnings per share was RMB 0.5. For the first half of 2025, total revenue amounted to RMB 11.821 billion, up 3.46% year-on-year; net profit attributable to shareholders was RMB 2.438 billion, representing a 41.25% year-on-year increase; and basic earnings per share was RMB 0.79. The company proposed to distribute an ordinary cash dividend of USD 0.081 per ordinary share for the first half of 2025.

As of June 30, 2025, Legacy-Huazhu operated 12,016 hotels, including 547 leased and owned hotels and 11,469 managed, franchised and licensed hotels. Additionally, Legacy-Huazhu had 1,159,086 hotel rooms in operation, comprising 80,587 rooms under leased and owned models and 1,078,499 rooms under managed, franchised and licensed models. Legacy-Huazhu also had 2,925 hotels in the pipeline, including 8 leased and owned hotels and 2,917 managed, franchised and licensed hotels.

As of June 30, 2025, Legacy-DH operated 121 hotels, including 65 leased hotels and 56 managed, franchised and licensed hotels. Legacy-DH had 25,829 hotel rooms in operation, comprising 13,797 rooms under the leased model and 12,032 rooms under managed, franchised and licensed models. Legacy-DH also had 22 hotels in the pipeline, including 9 leased hotels and 13 managed, franchised and licensed hotels.

Jin Hui, Chief Executive Officer of H World Group, commented: "Supported by our asset-light strategy, we achieved strong operating profit growth in the second quarter driven by network expansion, despite a slight year-on-year decline in average revenue per available room. In terms of hotel development, we opened 595 hotels during the quarter and are on track to achieve our full-year target of opening a total of 2,300 hotels in 2025. Given macroeconomic uncertainties, supply increases, and relatively weak business travel demand, we remain cautious about the short-term industry outlook. Nevertheless, we remain optimistic about the long-term growth prospects of China's tourism and hotel industry. We will continue to focus on enhancing our core competitiveness, expanding our premium network, upgrading our supply chain, improving our brand positioning and 'service excellence,' and strengthening our sales capabilities."

"Regarding our overseas business, our Legacy-DH segment achieved an 8.1% year-on-year increase in blended average revenue per available room in the second quarter of 2025, primarily driven by a 5.6 percentage point increase in occupancy rate. We will continue to strengthen hotel operations, focus on cost reduction and efficiency improvement, and continue developing our asset-light portfolio."

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