H World Group Accelerates Hotel Expansion and Brand Upgrades in Q1 2025, Strengthens Position as Hospitality Leader

Rhea-AI Summary

H World Group (NASDAQ: HTHT) reported strong growth in Q1 2025, with 538 net hotel openings bringing its total to 11,685 hotels and 1,142,158 rooms worldwide, marking a 20% year-over-year increase. The company expanded its presence to 1,394 cities across China, with 2,888 hotels in pipeline.

Revenue from manachised and franchised hotels grew 21% year-over-year to RMB 2.5 billion (US$344 million). H Rewards membership reached 277 million, with direct bookings accounting for over 65% of total reservations. The company reported significant progress in brand upgrades across Hanting, JI, and Orange hotels, while its upper-midscale segment saw a 36% year-over-year increase in operating hotels.

The company maintains its target of approximately 2,300 gross hotel openings for the full year.

Positive

• 538 net hotel openings in Q1, expanding total network to 11,685 hotels
• 21% YoY revenue growth from manachised and franchised hotels to RMB 2.5 billion
• H Rewards membership reached 277 million with direct bookings increasing to 65%
• 36% YoY growth in upper-midscale segment operating hotels
• Strong pipeline of 2,888 hotels for future growth

Negative

• None.

News Market Reaction

-1.75%

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-1.75% News Effect

On the day this news was published, HTHT declined 1.75%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

SINGAPORE and SHANGHAI, China, May 20, 2025 /PRNewswire/ -- H World Group Limited (NASDAQ: HTHT) (HK: 01179), one of the world's leading hospitality groups, began 2025 with continued momentum in growth, asset-light transformation and brand loyalty, according to its first-quarter results released today.

A Scalable Model for Mass-Market Hospitality
H World Group achieved 538 net hotel openings in the first quarter ended March 31, taking the total number of hotels in operation to 11,685. The number of rooms worldwide totaled 1,142,158, a 20% increase over last year.

The company now covers 1,394 cities across China, with plans to reach 2,000 cities in the future – from major hubs to the most remote and underserved regions.As of March 31, H World had a total of 2,888 hotels in its pipeline.

Advancing the Asset-Light Transformation
H World continued to advance its asset-light strategy in this quarter, with revenue from manachised and franchised hotels rising 21% year-over-year to RMB 2.5 billion (US$344 million). The company's distinct manachise model — combining the scalability of franchising with the operational control of management — remains a key enabler of efficient, brand-consistent growth.

Loyalty Growth & Direct Booking Strength
As of the end of Q1, H Rewards membership reached 277 million, making it one of the largest loyalty platforms in the global hospitality industry. Direct booking from members accounted for over 65% of total reservations – a 5.4 percentage point increase year-on-year, reflecting growing digital engagement, improved margins, and greater customer lifetime value.

Ongoing Experience Upgrade
H World continued to advance its product upgrade initiatives to enhance consumer experience across core brands including Hanting, JI, and Orange. As of Q1:

• 40% of Hanting Hotels had reached version 3.5 or above
• 78% of Ji Hotels had reached Ji 4.0+
• 70% of Orange Hotels met the Orange 2.0 standard

The first quarter also marked rapid growth in the upper-midscale segment, which includes brands such as Intercity Hotel, Crystal Orange Hotel, MAXX by Steigenberger, and CitiGo Hotel, with a 36% year-on-year increase in operating hotels and a 22% expansion of the development pipeline.

Looking Ahead
"We are confident we will achieve our full-year network expansion target of approximately 2,300 gross hotel openings," said H World CEO Jin Hui. "To achieve sustainable long-term growth, we will continue advancing our asset-light strategy, focusing on high-quality network expansion, enhancing brand positioning and 'service excellence', and strengthening sales capabilities centred around our H Rewards membership program."

For the full release please visit:
https://ir.hworld.com/news-releases/news-release-details/h-world-group-limited-reports-first-quarter-2025-unaudited

1. The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB7.2567 on March 31, 2025, as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.

About H World Group Limited

Originated in China, H World Group Limited (NASDAQ:HTHT; HK:01179) is a key player in the global hotel industry. H World's brands include HanTing Hotel, JI Hotel, Crystal Orange Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the City, IntercityHotel, Zleep Hotels and Steigenberger Icons. In addition, H World also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in the pan-China region.

For more information, please visit H World's website: https://ir.hworld.com

H World undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

For media inquiry, please contact:

Lihuan Wang media@hworld.com
Zheming Xing zheming@taskforce-china.cn
Zhibin Lang  zhibin.lang@taskforce-china.cn

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SOURCE H World Group

FAQ

How many hotels did H World Group (HTHT) add in Q1 2025?

H World Group added 538 net hotels in Q1 2025, bringing its total to 11,685 hotels with 1,142,158 rooms worldwide.

What is H World Group's (HTHT) revenue from manachised and franchised hotels in Q1 2025?

Revenue from manachised and franchised hotels grew 21% year-over-year to RMB 2.5 billion (US$344 million) in Q1 2025.

How many members does H World Group's (HTHT) loyalty program have?

H World Group's H Rewards loyalty program reached 277 million members, with direct bookings accounting for over 65% of total reservations.

What is H World Group's (HTHT) hotel pipeline as of Q1 2025?

H World Group had 2,888 hotels in its pipeline as of March 31, 2025, with plans to reach 2,000 cities in China.

What is H World Group's (HTHT) hotel opening target for 2025?

H World Group targets approximately 2,300 gross hotel openings for the full year 2025.