| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 14.4x | 17.8x | Top tier | |
Growth | 56 | 11.1% | 7.1% | Around median | |
Quality | 85 | 12.9% | 4.5% | Top tier | |
Safety | 64 | 2.1x | 2.6x | Around median | |
Capital Return | 47 | 0.44% | 2.12% | Around median | |
Momentum | 39 | 21.7% | 2.9% | Bottom tier | |
Sentiment | 81 | 9 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
H World Group operates a multi-brand hotel network concentrated in China, with an international presence through HWI, primarily targeting the economy and midscale hotel segments through the Hanting, JI, and Orange brands, alongside the upper-midscale Intercity, Grand JI, Crystal, and Mercure brands. A growing share of the revenue model relies on managed and franchised hotels, with this business generating revenue of RMB 3.6 billion in Q2 FY2026, up 25.2%, and gross operating profit of RMB 2.2 billion, up 18.5%. As of June 30, 2026, the group operated 13,417 hotels in China, and its hotel development pipeline totaled 3,054 hotels, with operating and pipeline hotels spanning 1,468 Chinese cities.
In Q2 FY2026, group revenue increased 10.8% year over year to RMB 7.1 billion; China revenue grew 14.9% to RMB 5.9 billion, while international revenue declined 5.8% to RMB 1.3 billion due to the closure of leased hotels and lower rental income. Adjusted earnings before interest, taxes, depreciation, and amortization increased 20% to RMB 2.7 billion, and its margin expanded by three percentage points to 38.3%. Adjusted net income also grew 26.9% to RMB 1.7 billion, and its margin improved by three percentage points to 24%.
The annual results reflect a clear improvement compared with the loss-making period: FY2025 revenue was approximately $25.3 billion, net income was $5.1 billion, and earnings per share were 1.6, compared with revenue of $23.9 billion, net income of $3.0 billion, and earnings per share of 0.96 in FY2024. Net income in FY2022 was a loss of $1.8 billion before turning into a profit of $4.1 billion in FY2023. The provided statements do not include an annual gross profit figure, so the latest assessment of operating profitability is based on adjusted Q2 FY2026 metrics.
The analyst consensus is “Buy,” and the average target of $62.4 matches both the high and low targets, indicating that the provided consensus data is based on a single, non-divergent estimate. The target is above the 52-week range high of $56.64, while the full range extends from $36.03 to $56.64; this gives the consensus target a positive tone, but reliance on a single target increases the fragility of the valuation anchor if openings slow or HWI weakness persists.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Group revenue increased 10.8% to RMB 7.1 billion, while adjusted earnings before interest, taxes, depreciation, and amortization rose 20% to RMB 2.7 billion. The margin for this profit measure expanded by three percentage points to 38.3% due to the increased contribution of the management and franchise business and control of general and administrative expenses. Adjusted net income also increased 26.9% to RMB 1.7 billion, and its margin improved to 24%. Hotel operating costs grew 7.4%, and selling, general, and administrative expenses increased 6.1%, both at a slower pace than revenue growth.
The management and franchise business generated revenue of RMB 3.6 billion in Q2 FY2026, up 25.2% year over year. Its gross operating profit reached RMB 2.2 billion, up 18.5%. The increased contribution of this asset-light business helped expand the group's adjusted earnings before interest, taxes, depreciation, and amortization margin to 38.3%. However, the business's operating profit grew more slowly than its revenue, a divergence that should be monitored.
The group opened 1,035 hotels in the first half of FY2026, including 498 hotels in Q2. The figure was 20% lower than the previous first half, according to a Morgan Stanley analyst's question, and management attributed this to the comparison base and the supply chain. Nevertheless, on August 17, 2026, management maintained its target of opening 2,200 to 2,300 hotels during FY2026. The hotel development pipeline totaled 3,054 hotels as of June 30, 2026, increasing both year over year and quarter over quarter.
Automated analysis for informational purposes only — not investment advice.
China revenue grew 14.9% to RMB 5.9 billion in Q2 FY2026, supported by network expansion and a recovery in revenue per available room. In contrast, international revenue declined 5.8% to RMB 1.3 billion due to the closure of leased hotels and lower rental income. Revenue per available room at HWI declined 3.8%, with occupancy decreasing by 3.5 percentage points, while the same metric grew 1.1% in Europe. Management maintained its goal of achieving a positive profit at HWI during FY2026.
Hanting, JI, and Orange represent what management calls the golden triangle of limited-service hotels and a primary driver of the target of 20,000 hotels in 2,000 cities. Management said on August 17, 2026, that Hanting 4.0 generates materially better revenue per available room than older versions and that new operating and pipeline Hanting and JI hotels exceeded 200 hotels. JI and Hanting also ranked first and second globally by room count in the Hotel 2025 ranking mentioned on the call. Orange reached twenty-sixth place in the same ranking, supporting the group's expansion led by its core brands.
On August 17, 2026, the board of directors approved a three-year shareholder return plan totaling $2.5 billion. The board approved a regular cash dividend of approximately $275 million as the first distribution under the plan. Management said it completed the 2024 return plan one year ahead of schedule and that operating cash flows and a strong balance sheet support continued returns. The provided information does not specify how the remaining amount will be allocated between dividends or other instruments over the plan's duration.
