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H World Group
(NASDAQ:HTHT)
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Rating:77Outperform
Price Target:
$52.00
â–²(5.11% Upside)
Action:Reiterated
Date:08/19/26
HTHT scores well primarily due to strong profitability and high-quality cash generation, supported by upbeat earnings-call guidance and shareholder return commitments. Technicals are constructive with positive momentum and the stock trading above key short-term averages, while valuation is reasonable with an attractive dividend yield. The main offsetting risk is still-elevated leverage and pockets of international operating softness.
Positive Factors
Asset-light expansion
Rapid growth in manachise and franchise operations expands H World’s fee-based earnings with less property-level capital and cost exposure. This mix should support scalable growth and structurally higher margins as the network expands.
Negative Factors
Elevated leverage
Although leverage has improved from prior peaks, substantial debt still limits financial flexibility and increases dependence on sustained operating cash flow. A prolonged demand slowdown could constrain investment capacity or shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light expansion
Rapid growth in manachise and franchise operations expands H World’s fee-based earnings with less property-level capital and cost exposure. This mix should support scalable growth and structurally higher margins as the network expands.
Read all positive factors
H World Group (HTHT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.57B
Dividend Yield3.54%
Average Volume (3M)1.76M
Price to Earnings (P/E)20.3
Beta (1Y)0.32
Revenue Growth13.03%
EPS Growth37.67%
CountryUS
Employees26,458
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)16.20
Shares Outstanding309,832,370
10 Day Avg. Volume1,552,928
30 Day Avg. Volume1,756,516
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)7.89
Price to Sales (P/S)4.10
P/FCF Ratio13.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$65.40Price Target Upside32.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)17.92
Revenue Forecast (FY)$27.14B
H World Group Business Overview & Revenue Model
Company Description
H World Group Limited, through its various subsidiaries, is actively engaged in the development and management of hotels primarily within the People's Republic of China. Its extensive operations cover a range of models, including leased, owned, ma...
How the Company Makes Money
H World Group makes money mainly through hotel operations and hotel network services.
1) Revenues from hotel operations (leased and owned/operated hotels)
- Room revenue: The company earns revenue by selling room nights in hotels it directly oper...
H World Group Earnings Call Summary
Earnings Call Date:Aug 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call communicated solid, broad-based financial and operational progress driven by China's recovery and successful asset-light expansion: double-digit revenue growth in China, strong adjusted EBITDA and net income growth, robust franchise/manachise performance, ADR and RevPAR improvements, and continued brand momentum. Offsetting these positives were international challenges — HWI RevPAR decline, occupancy weakness, a drop in international revenue due to a leased-hotel closure, geopolitical impacts in the Middle East, weather-related demand volatility, and a year-over-year dip in first-half openings. On balance, highlights meaningfully outweigh lowlights, reflecting strong domestic execution and improving profitability while international and short-term demand headwinds persist.Positive Updates
Group Revenue Growth
Group revenue increased 10.8% year-over-year to RMB 7.1 billion in Q2 2026, driven primarily by strong performance in China.
Negative Updates
International Revenue Decline
International business revenue decreased 5.8% year-over-year to RMB 1.3 billion in Q2, partly due to closure of a leased hotel which reduced lease revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Revenue Growth
Group revenue increased 10.8% year-over-year to RMB 7.1 billion in Q2 2026, driven primarily by strong performance in China.
Read all positive updates
Company Guidance
Management reaffirmed its full‑year guidance: they left their RevPAR outlook unchanged for 2026 and maintained the full‑year hotel opening plan (targeting roughly 2,200–2,300 gross openings) as they pursue the longer‑term goal of 20,000 hotels in 2,000 cities; as of end‑June the group had 13,417 hotels in operation, 3,054 in the pipeline across 1,468 cities and more than 260,000 employees. They expect adjusted EBITDA margin to continue expanding mid‑to‑long term under an asset‑light strategy, reiterated a target of positive full‑year profit for HWI, and approved a new three‑year shareholder return program totaling USD 2.5 billion with an initial ordinary cash dividend of ~USD 275 million.H World Group Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
63
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.46B | 24.62B | 23.89B | 21.88B | 13.86B | 12.79B |
| Gross Profit | 10.84B | 9.70B | 9.86B | 7.54B | 1.60B | 1.50B |
| EBITDA | 8.66B | 8.56B | 6.46B | 7.15B | 259.00M | 1.50B |
| Net Income | 5.01B | 4.94B | 3.05B | 4.08B | -1.81B | -465.00M |
Balance Sheet | ||||||
| Total Assets | 63.64B | 64.82B | 62.55B | 63.53B | 61.51B | 63.27B |
| Cash, Cash Equivalents and Short-Term Investments | 15.71B | 15.44B | 11.08B | 9.13B | 5.37B | 7.71B |
| Total Debt | 34.25B | 36.09B | 35.45B | 35.88B | 43.89B | 44.16B |
| Total Liabilities | 49.40B | 51.85B | 50.28B | 51.28B | 52.70B | 52.23B |
| Stockholders Equity | 14.08B | 12.81B | 12.18B | 12.13B | 8.73B | 10.94B |
Cash Flow | ||||||
| Free Cash Flow | 7.90B | 7.34B | 6.73B | 6.77B | 511.00M | -333.00M |
| Operating Cash Flow | 8.66B | 8.15B | 7.62B | 7.67B | 1.56B | 1.34B |
| Investing Cash Flow | 1.18B | -1.01B | -2.27B | -1.48B | -522.00M | -1.40B |
| Financing Cash Flow | -5.71B | -4.19B | -5.58B | -3.72B | -1.39B | -1.80B |
H World Group Technical Analysis
Positive
49.47
Price Trends
43.01
Positive
45.50
Positive
46.83
Positive
Market Momentum
1.86
Negative
67.17
Neutral
91.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTHT, the sentiment is Positive. The current price of 49.47 is above the 20-day moving average (MA) of 44.63, above the 50-day MA of 43.01, and above the 200-day MA of 46.83, indicating a bullish trend. The MACD of 1.86 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 91.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTHT.
H World Group Risk Analysis
H World Group disclosed 55 risk factors in its most recent earnings report. H World Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
H World Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.57B | 20.34 | 40.36% | 5.21% | 13.03% | 37.67% | |
69 Neutral | $74.12B | 48.34 | -28.13% | 0.19% | 8.74% | 4.50% | |
65 Neutral | $24.05B | 34.60 | -25.04% | 1.18% | 3.41% | -1.33% | |
63 Neutral | $16.70B | 206.48 | 2.37% | 0.32% | 6.36% | -80.55% | |
62 Neutral | $93.29B | 37.36 | -66.73% | 0.73% | 4.72% | 8.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $5.63B | 27.84 | 42.06% | 2.28% | -2.21% | -35.98% |
* Consumer Cyclical Sector Average
HTHT
H World Group
49.03
13.63
38.50%
H
Hyatt Hotels
177.57
32.56
22.45%
IHG
Intercontinental Hotels Group
164.58
43.25
35.65%
MAR
Marriott International
358.67
90.65
33.82%
HLT
Hilton Worldwide Holdings
332.56
56.95
20.66%
WH
Wyndham Hotels & Resorts
76.84
-8.91
-10.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.