H World Group Limited · HKEX:1179
H World — Q2 2025 Earnings Presentation
29 slides from H World's earnings presentation, Aug 20, 2025
Slide 1: Second Quarter of 2025 Earnings Call
Second Quarter of 2025 Earnings Call H World Group Limited (NASDAQ: HTHT and HKEX: 1179) August 20, 2025 H W or ld
Slide 2: Disclaimer
2 Disclaimer ⯝餓㡮僈 This presentation has been prepared by H World Group Limited (the “H World”) solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation
Slide 3: Agenda
AGENDA 01 02 03 04 25Q2 Business 25Q2 Financial Q and A Appendix Update Review H W or ld
Slide 4: Q2'25 Group Key Highlights
4 Q2’25 Group Key Highlights ✳㷍䏞꧋㔙⚌絫嚋錢 Hotel GMV: RMB26.9 bn M&F Revenue: RMB2.9bn Legacy-Huazhu RevPAR: -3.8% YoY +15.0% YoY +22.8% YoY Total Revenue: RMB6.4 bn (+4.5% YoY) Legacy-DH RevPAR: +8.1% YoY Rooms in Operation: M&F Gross Operating 1,184,915 +18.3% YoY +23.2% YoY Profit*: RMB1.9bn H Reward
Slide 5: Solid Hotel Network and GMV Growth in Q2'25
5 Solid Hotel Network and GMV Growth in Q2’25 GMV Hotel Network Expansion Hotel GMV (Number of rooms in operation) (in RMB millions) +18.3% +15.0% 1,184,915 26,911 Legacy-DH 23,407 Legacy-DH 25,829 2,240 1,001,865 Legacy-DH 2,058 Legacy-DH 27,552 Legacy-Huazhu Legacy-Huazhu 1,159,086 24,671 Legacy-H
Slide 6: Legacy-Huazhu RevPAR Declined 3.8% YoY
6 Legacy-Huazhu RevPAR Declined 3.8% YoY 2025 RevPAR 3.8% ADR (RMB) OCC RevPAR (RMB) -1.9% -1.6p.p. -3.8% 296 290 82.6% 244 235 81.0% Q2'24 Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 * Numbers in this page refers to Legacy-Huazhu business H W or ld
Slide 7: Legacy-DH RevPAR Increased 8.1% YoY
7 Legacy-DH RevPAR Increased 8.1% YoY DH 2025 RevPAR 8.1% ADR (EUR) OCC RevPAR (EUR) -0.1% +5.6p.p. +8.1% 120 120 73.9% 88 82 68.3% Q2'24 Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 * Numbers in this page refers to Legacy-DH business H W or ld
Slide 8: Economy and Midscale as the Core Products Serving the Mass Market
8 Economy and Midscale as the Core Products Serving the Mass Market 务 Number of Hotels in Operation Number of Hotels in Pipeline Number of Hotel Opening (as of Jun 30) (as of Jun 30) Economy Midscale Upper midscale and above Economy Midscale Upper midscale and above Economy Midscale Upper midscale a
Slide 9: Hanting Hotels Ranked No.1 on the World's Top Hotel Brands List
9 Hanting Hotels Ranked No.1 on the "World's Top 50 Hotel Brands" List HOTELS TOP50 * Hanting ranked first with rooms in operating of 378,569, as of 30 June 2025 * Numbers in this page refers to Legacy-Huazhu business H W or ld
Slide 10: Hanting 4.0 – An Evolutionary Upgrade
10 Hanting 4.0 – An Evolutionary Upgrade 4.0 H W or ld
Slide 11: Orange Reached 1,000-Hotel Milestone
11 Orange Reached 1,000-Hotel Milestone 命㶩㹊梡⼪䏅ꅽ玐烵 Orange in Operation 1,000+ 851 652 519 432 320 2020 2021 2022 2023 2024 25'YTD * Numbers in this page refers to Legacy-Huazhu business H W or ld
Slide 12: Consistent Product Upgrade - Hanting, Ji, Orange
12 Consistent Product Upgrade - Hanting, Ji, Orange - Proportion of Hanting 3.5, JI 4.0, Orange 2.0 and Above in Operation Hanting 3.5 and above JI 4.0 and above Orange 2.0 and above 78% 80% 74% 76% 71% 72% 70% 66% 63% 52% 43% 40% 36% 33% 29% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 * Numbers in this page refe
Slide 13: Enhancing Presence in the Lower Tier Cities
13 Enhancing Presence in the Lower Tier Cities ⸈䔂⡛絁㙹䋑䋒㽷 Number of Hotels in Operation Number of Hotels in Pipeline City Coverage (as of Jun 30) (as of Jun 30) (hotels in operation and in pipeline) Tier-1 Tier-2 Tier-3, 4 and below Tier-1 Tier-2 Tier-3, 4 and below 12,016 3,266 2,925 2,000 10,150 43%
Slide 14: Stepping-Up the Development of Upper-Midscale Segment
14 Stepping-Up the Development of Upper-Midscale Segment 鵳♧姿䲀⸓⚥넞咓ㅷ晥涸〄㾝 Number of Upper-Midscale Hotels Multi-brand Strategy for Upper-midscale Segment Operation Pipeline +23.3% YoY 1,538 1,456 1,394 1,247 1,290 1,116 1,031 962 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 * Numbers in this page re
Slide 15: InterCity Gaining Stronger Momentum
15 InterCity Gaining Stronger Momentum 㙹꣢䪈䓎⸷㣢䭯絯㟞䔂 Number of InterCity Hotels Operation Pipeline +57.1% YoY 187 177 150 119 125 Q2’25 RevPAR 47 62 81 ~RMB 370 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 * Numbers in this page refers to Legacy-Huazhu business H W or ld
Slide 16: Leveraging Supply Chain to Strengthen Competitiveness
16 Leveraging Supply Chain to Strengthen Competitiveness ⣘䎾Ꝇ腊⸂䔂⻊呍䗱畊✰⸂ • Enlarging supplier pool • Strengthening modular application Lower • Upgrading the supplier Capex & Opex • Establishing a comprehensive management system quality management system Higher Shorter Product Quality Construction Perio
Slide 17: Rising Membership and CRS Contribution
17 Rising Membership and CRS Contribution ⠔プ錞垷⿺⚥㣛곫㹁⽑嫱䲿⼮ Number of Members Continues Rising Direct Booking through H World CRS Reaching 288 million as of end-June 288 267 +5.2p.p. YoY 228 65.1% 65.1% 59.9% 193 199 169 153 122 103 79 49 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2'25 Q2'24 Q1'
Slide 18: Agenda
AGENDA 01 02 03 04 25Q2 Business 25Q2 Financial Q and A Appendix Update Review H W or ld
Slide 19: Q2'25 Financial Highlights
19 Q2’25 Financial Highlights ✳㷍䏞餒⸉侨䰘 Revenue Adjusted EBITDA Adjusted Net Income (in RMB millions) (in RMB millions) (in RMB millions) +4.5% YoY +11.3% YoY +7.6% YoY 2,270 6,426 1,349 6,148 2,040 Legacy-DH 1,254 Legacy-DH Legacy-DH 180 Legacy-DH 1,324 133 1,323 5,395 1,496 Legacy-DH 918 775 Legacy-
Slide 20: Asset-Light Business Achieved 20%+ YoY Growth in Q2'25
20 Asset-Light Business Achieved 20%+ YoY Growth in Q2’25 ⸈湅⚌⸉㹊梡䔂⸢㟞 M&F Revenue M&F Gross Operating Profit (in RMB millions) (in RMB millions) +22.8% YoY +23.2% YoY 2,865 1,896 Legacy-DH 2,499 41 Legacy-DH 2,334 1,584 40 Legacy-DH 1,539 Legacy-DH 31 Legacy-DH Legacy-DH 32 31 30 Legacy-Huazhu Legacy
Slide 21: Further Decreasing Leased & Owned Hotels
21 Further Decreasing Leased & Owned Hotels 鵳♧姿Ⲹ㼱湬蠒⚌⸉ L&O Revenue L&O Gross Operating Profit (in RMB millions) (in RMB millions) -7.6% YoY 1,041 -13.4% YoY 3,681 902 3,401 Legacy-DH Legacy-DH 344 Legacy-DH 1,286 Legacy-DH 341 1,271 2,789 Legacy-DH 876 398 Legacy-DH Legacy-Huazhu Legacy-Huazhu Legacy
Slide 22: Enlarging Profit Contribution from High-Margin Asset-Light Business
22 Enlarging Profit Contribution from High-Margin Asset-Light Business ⸈湅⚌⸉ⵄ嶹餑柄珘姿䲿⼮ Gross Operating Profit Mix in Q2’24 Gross Operating Profit Mix in Q2’25 GOP: RMB2.7 bn GOP: RMB2.9 bn 5% 5% 31% 38% 57% 64% Leased and owned hotels Leased and owned hotels Manachised and franchised hotels Manachised
Slide 23: Cash Flow and Liquidity Position
23 Cash Flow and Liquidity Position 梡ꆄ崨⿺崨⸓䚍䞔ⲃ Operating Cash Balance Net Cash (incl. Time Deposits) (incl. Time Deposits) Cash Flow RMB2.7 bn RMB13.7 bn RMB6.2 bn * As of June 30, 2025 * Cash balance and net cash position includes RMB3.1bn time deposits and financial products H W or ld
Slide 24: 1H25 Shareholder Return
24 1H25 Shareholder Return 2025 Cash Dividend Share Repurchase USD250 mn ~USD62 mn H W or ld
Slide 25: Guidance
25 Guidance ⚌絫䭷䒸 Q3 Revenue vs. Q3 2024 •Grow 2%-6% •Excluding DH - Grow 4%-8% 2025 M&F revenue vs. Q3 2024 •Grow 20%-24% H W or ld
Slide 26: Agenda
AGENDA 01 02 03 04 25Q2 Business 25Q2 Financial Q and A Appendix Update Review H W or ld
Slide 27: Agenda
AGENDA 01 02 03 04 25Q2 Business 25Q2 Financial Q and A Appendix Update Review H W or ld
Slide 28: Same-Hotel Operational Data by Segment
28 Same-Hotel Operational Data by Segment ず䏅絑蠒侨䰘 Number of hotels in Same-hotel RevPAR Same-hotel ADR Same-hotel Occupancy operation As of For the quarter ended For the quarter ended For the quarter ended June 30, June 30, June 30, June 30, yoy change yoy change yoy change (p.p.) 2024 2025 2024 2025
Slide 29: Number of Hotels and Rooms
29 Number of Hotels and Rooms ꂊ䏅侨ꆀㄤ䨻ꢂ侨ꆀ As of June 30, 2025 Total Hotels Rooms Unopened hotels in operation in pipeline Economy hotels 5,847 476,378 1,118 HanTing Hotel 4,401 378,569 728 Ni Hao Hotel 477 36,316 114 Hi Inn 641 33,529 260 Elan Hotel 95 5,405 - Ibis Hotel 228 21,727 8 Zleep Hotels 5 83