H World Group Reports Mixed Q1 2026 Results: Revenue Up 11.1%, Net Income Down 8.6%
HTHT sits 51% above its 52-week low of $30.41.
Summary
H World Group announced Q1 2026 financial results, showing solid revenue and Adjusted EBITDA growth driven by network expansion and an asset-light strategy, despite a year-over-year decline in net income.
Key Events · Earnings and Guidance · HTHT
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Q1 2026 Financial Performance
Revenue increased 11.1% year-over-year to RMB6.0 billion (US$870 million). Net income attributable to H World Group Limited decreased 8.6% year-over-year to RMB817 million (US$118 million), while Adjusted EBITDA (non-GAAP) rose 26.7% year-over-year to RMB1.9 billion (US$269 million).
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Strong Operational Growth
Hotel turnover increased 17.4% year-over-year to RMB26.4 billion. The company added 360 net new hotels in China during the quarter, bringing the total network to 13,215 hotels and 1,303,563 rooms globally. Blended RevPAR for H World China (HWC) increased 3.0% year-over-year, and for H World International (HWI) increased 5.0% year-over-year.
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Improved Operating Margin
Operating margin improved to 24.8% in Q1 2026 from 20.1% in Q1 2025, primarily driven by a higher revenue contribution from the asset-light manachised and franchised (M&F) businesses.
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Executive Director Resignation
Ms. Jie Zheng resigned as an executive Director, effective May 15, 2026, to pursue other interests. She will continue to support the company as a senior advisor.
Analysis · HTHT · Real Estate & Construction
H World Group reported a mixed first quarter, with strong top-line growth and improved operating efficiency, but a decline in net income. Revenue increased by 11.1% year-over-year, driven by robust hotel turnover growth of 17.4%. The company's asset-light strategy, focusing on manachised and franchised hotels, led to a significant 26.7% increase in Adjusted EBITDA and an improved operating margin. However, net income decreased by 8.6% year-over-year, partly attributed to higher income tax expenses from non-deductible items. The company continues its network expansion, adding 360 net new hotels in China during the quarter.
At the time of this filing, HTHT was trading at $46.00 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $14B. The 52-week trading range was $30.41 to $56.64. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.