H World Group (NASDAQ:HTHT) Announces Earnings Results, Beats Expectations By $0.04 EPS

H World Group (NASDAQ:HTHT) released its quarterly earnings results on Monday. The company reported $0.78 earnings per share for the quarter, beating analysts’ consensus estimates of $0.74 by $0.04, FiscalAI reports. The firm had revenue of $1.05 billion during the quarter, compared to analysts’ expectations of $998.88 million. H World Group had a return on equity of 39.73% and a net margin of 19.22%.

Here are the key takeaways from H World Group’s conference call:

• Strong Q2 financial growth: Revenue increased 10.8% year over year to RMB7.1 billion, while adjusted EBITDA rose 20% to RMB2.7 billion and adjusted net income grew 26.9% to RMB1.7 billion. The adjusted EBITDA margin expanded by 3 percentage points to 38.3%, aided by asset-light growth and cost controls.
• H World China expanded its network by 12.7% in rooms, driving a 13.2% increase in hotel GMV to RMB30.5 billion. Managed and franchised revenue grew 25.2% to RMB3.6 billion, and the pipeline reached 3,054 hotels, supporting management’s unchanged full-year opening target of 2,200–2,300 properties.
• China operating trends improved, with ADR up 2.6% and RevPAR up 1.1% in Q2, marking the fourth consecutive quarter of ADR growth. Management maintained its full-year 2026 target for stable RevPAR, while noting that August demand was recovering after severe weather affected parts of July.
• The company authorized a new three-year shareholder return plan totaling US$2.5 billion and approved an initial ordinary cash dividend of approximately US$275 million. Management said the plan is supported by healthy operating cash flow and a strong balance sheet.
• H World International remained under pressure, with blended RevPAR down 3.8% year over year as the Middle East conflict affected certain markets and newer Southeast Asian hotels remained in ramp-up. International revenue declined 5.8%, although Europe’s RevPAR increased 1.1% and management still expects a positive full-year international profit margin.

H World Group Stock Up 11.3%

NASDAQ:HTHT opened at $46.61 on Tuesday. The stock’s fifty day moving average price is $42.35 and its two-hundred day moving average price is $47.49. H World Group has a 52-week low of $32.99 and a 52-week high of $56.63. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.93 and a current ratio of 0.93. The company has a market cap of $14.33 billion, a price-to-earnings ratio of 20.90, a P/E/G ratio of 1.52 and a beta of 0.15.

Institutional Investors Weigh In On H World Group

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Compound Planning Inc. acquired a new position in shares of H World Group during the fourth quarter valued at $307,000. Vident Advisory LLC boosted its holdings in H World Group by 15.2% in the fourth quarter. Vident Advisory LLC now owns 18,900 shares of the company’s stock valued at $889,000 after acquiring an additional 2,496 shares during the last quarter. Mackenzie Financial Corp increased its position in H World Group by 208.5% in the fourth quarter. Mackenzie Financial Corp now owns 486,857 shares of the company’s stock worth $22,828,000 after purchasing an additional 329,026 shares during the period. Voloridge Investment Management LLC acquired a new stake in H World Group in the fourth quarter worth about $369,000. Finally, Guggenheim Capital LLC raised its holdings in H World Group by 33.3% during the 4th quarter. Guggenheim Capital LLC now owns 9,585 shares of the company’s stock worth $451,000 after purchasing an additional 2,393 shares during the last quarter. 46.41% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on HTHT. Zacks Research cut H World Group from a “strong-buy” rating to a “hold” rating in a report on Thursday, June 4th. Wall Street Zen cut H World Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Finally, Weiss Ratings downgraded shares of H World Group from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, H World Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $61.20.

H World Group News Summary

Here are the key news stories impacting H World Group this week:

• Positive Sentiment: H World reported second-quarter earnings of $0.78 per share, exceeding the $0.74 analyst consensus and rising from $0.59 a year earlier. Revenue reached $1.05 billion, also ahead of the approximately $998.9 million estimate. H World Group Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: The company announced a new shareholder return plan, which may support investor sentiment by signaling confidence in cash generation and potentially increasing capital returned through dividends or share repurchases. H World Group Reports Strong Second-Quarter 2026 Performance and Announces New Shareholder Return Plan
• Positive Sentiment: Market coverage characterized the results as an earnings beat accompanied by a guidance upgrade, reinforcing expectations for continued operating momentum. H World Group Shares Rise After Q2 Earnings Beat and Guidance Upgrade
• Neutral Sentiment: H World issued fiscal 2026 revenue guidance of $3.8 billion to $3.9 billion, broadly around—but with the midpoint below—the $3.9 billion consensus estimate. No EPS guidance figure was provided in the available update.
• Neutral Sentiment: Analysts’ average price target implies roughly 39.7% potential upside, while favorable earnings-estimate revisions provide additional support; however, price-target projections are not guarantees of future performance. Wall Street Analysts Predict Upside in H World Group

H World Group Company Profile

H World Group, formerly known as Huazhu Group, is a leading hotel management and franchising company primarily serving the China market. The company operates a broad portfolio of midscale to luxury hotel brands, including Hi Inn, Blossom, Manxin, Madison International, Joya, Grand Mercure, Novotel, Mercure and ibis. Through a network of both directly managed and franchised properties, H World Group caters to business and leisure travelers by offering consistent service standards and loyalty benefits across its brands.

In addition to its core hotel operations, H World Group provides technology-driven hospitality solutions such as centralized reservation systems, revenue management platforms and customer relationship management tools.