H World Group Reports Mixed Q1 2026 Results: Revenue Up 11.1%, Net Income Down 8.6%

summarizeSummary

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.

check_boxKey Events

• 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).

• 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.

• 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.

• 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.

auto_awesomeAnalysis

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.