H World Group Signs Agreement to Debut Intercity Hotel, JI Hotel and Orange Hotel in Laos

Rhea-AI Summary

H World Group Limited (NASDAQ: HTHT) has announced its entry into Laos through four hotel management agreements, marking a significant expansion in Southeast Asia. The company will introduce its Intercity Hotel, JI Hotel, and Orange Hotel brands in Vientiane and Luang Prabang, partnering with Lao Kunpeng Industrial, Yuting Hotel Investment Management, and KP Construction Sole. The projects include Intercity Hotel Vientiane (opening early 2026), Intercity Hotel Luang Prabang (2027), JI Hotel Vientiane Mekong Riverside (early 2026), and Orange Hotel Vientiane International Airport (Q3 2026). This expansion aligns with H World's asset-light and internationalization strategy, capitalizing on Laos' growing tourism market, which saw 1.97 million international tourists via the China-Laos Railway in 2024, with Chinese visitors comprising over 60% of arrivals.

Positive

• Strategic expansion into Laos marks first entry into a new Southeast Asian market
• Partnership with three established local investment partners reduces capital requirements
• Strong potential market with 1.97 million international tourists in 2024, showing 3x year-over-year growth
• Advantageous positioning to capture Chinese tourism market, which represents 60% of Laos visitors

Negative

• Long development timeline with hotels not opening until 2026-2027
• Heavy reliance on Chinese tourism market could pose concentration risk
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Insights

Hospitality Industry Analyst

H World's strategic Laos expansion leverages Chinese tourism growth while diversifying its Southeast Asian footprint with multiple hotel brands.

H World Group's entrance into Laos with four hotel management agreements represents a calculated expansion of their Southeast Asian footprint that aligns perfectly with their stated "asset-light and internationalization" strategy. The company is wisely positioning these properties in two key locations - the capital Vientiane and the UNESCO World Heritage site Luang Prabang - that capture both business and leisure travel segments.

The timing of this expansion is particularly strategic given the threefold increase in international tourists entering Laos via the China-Laos Railway, with Chinese visitors comprising over 60% of inbound tourism. This railway connection creates a natural pipeline of potential guests from H World's home market, where they already enjoy strong brand recognition.

By deploying three different brands across various price points (Intercity Hotel in the upper-midscale segment, JI Hotel and Orange Hotel in the midscale segment), H World is executing a multi-tier approach that hedges against market fluctuations while catering to different traveler preferences. The debut of Orange Hotel outside China signals confidence in the brand's international appeal.

The partnership structure with three separate local investment companies (Lao Kunpeng Industrial, Yuting Hotel Investment Management, and KP Construction) demonstrates H World's ability to forge multiple local relationships while maintaining their capital-efficient model. Rather than directly investing in property development, they're leveraging their operational expertise and distribution platform while local partners provide the real estate capital.

This expansion, while modest in scale relative to H World's total portfolio, establishes an important foothold in a developing tourism market with significant growth potential, particularly as Laos continues to benefit from increased connectivity to China and broader Southeast Asian travel circuits.

SINGAPORE, June 5, 2025 /PRNewswire/ -- H World Group Limited (NASDAQ: HTHT) and (HK: 01179), a leading global hospitality group, announced its debut into the Laotian market with the signing of 4 hotel management agreements, further advancing its international growth strategy and expanding its footprint in Southeast Asia.

The signing ceremony, held in Laotians Capital City Vientiane on May 29, marks H Group's first entry into the country, solidifying its "asset-light and internationalization" strategy.

The new properties, located in Vientiane and the historic city of Luang Prabang, will be developed in collaboration with three investment partners: Lao Kunpeng Industrial Co., Ltd., Yuting Hotel Investment Management Co., Ltd., and KP Construction Sole Co., Ltd.

"This signing of four hotels in Laos is an important step for H World in promoting localized management and building a deeply rooted network across the region," said Zhu Xiaogang, President of H World Asia Pacific.

"We are committed to strengthening our operational capabilities in Southeast Asia and delivering high-quality, full-lifecycle services to our partners. We are confident that these projects in Laos will become the highlights in H World's development in the region", added Zhu.

The four hotels signed this time cover H World's core upper-midscale and midscale brands, with projects located in Laos' capital and major tourist destinations:

• Intercity Hotel Vientiane: Developed in partnership with Lao Kunpeng Industrial Co., Ltd., the hotel will be situated near Wattay International Airport and the Sanjiang Area in Vientiane. Scheduled to open in early 2026, the hotel will offer modern amenities and seamless connectivity.
• Intercity Hotel Luang Prabang: Invested by Lao Kunpeng Industrial Co., Ltd., the hotel will be located in the historic city center of Luang Prabang. Expected to open in 2027, it will blend local cultural elements with the brand's signature design and functionality.
• JI Hotel Vientiane Mekong Riverside: Developed by Yuting Hotel Investment Management Co., Ltd., the hotel will be located along the Mekong River in downtown Vientiane. Offering scenic river views and strong accessibility, it is set to open in early 2026. This marks the first JI Hotel in Laos and the second in Southeast Asia, following the opening of JI Hotel Orchard in Singapore.
• Orange Hotel Vientiane International Airport: Developed by KP Construction Sole Co., Ltd., this project will be located near the airport and the Sanjiang Area. It is expected to open in Q3 2026. This project represents the global debut of the Orange Hotel brand outside China.

All three investment partners expressed confidence in the collaboration, citing H World's operational excellence, brand reputation, and digital ecosystem as key drivers for the partnership. They noted that the cooperation is expected to elevate hospitality standards in Laos and deliver enhanced travel experiences for guests.

According to the Laos National Tourism Administration, more than 1.97 million international tourists entered the country via the China-Laos Railway in 2024, a more than threefold increase year-on-year. Chinese tourists accounted for over 60%, making China the top source of inbound visitors to Laos. (END)

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

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

What hotels is H World Group (HTHT) opening in Laos?

H World Group is opening four hotels in Laos: Intercity Hotel Vientiane, Intercity Hotel Luang Prabang, JI Hotel Vientiane Mekong Riverside, and Orange Hotel Vientiane International Airport.

When will H World Group's (HTHT) new hotels in Laos open?

The hotels will open between 2026 and 2027, with Intercity Hotel Vientiane and JI Hotel Vientiane opening in early 2026, Orange Hotel Vientiane in Q3 2026, and Intercity Hotel Luang Prabang in 2027.

Who are H World Group's (HTHT) investment partners in Laos?

H World Group is partnering with three companies: Lao Kunpeng Industrial Co., Ltd., Yuting Hotel Investment Management Co., Ltd., and KP Construction Sole Co., Ltd.

What is the tourism potential in Laos for H World Group (HTHT)?

Laos received 1.97 million international tourists via the China-Laos Railway in 2024, a threefold increase year-over-year, with Chinese tourists accounting for over 60% of visitors.

Is this H World Group's (HTHT) first expansion into Laos?

Yes, this marks H World Group's first entry into the Laotian market, representing a significant milestone in their international expansion strategy.